(Hong Kong, 18 August 2012) The Board of Directors ("the Board") of Shenzhen Expressway Company Limited (“Shenzhen Expressway ", or the “Company”; Stock Code: 00548.HK) is pleased to announce the results of the Company and its subsidiaries (collectively the “Group”) for the six months ended 30 June 2012 (the “Reporting Period”).

Shenzhen Expressway recorded a revenue of about RMB 1380million in the first half of 2012, of which toll revenue was about RMB 1560million, representing an increase of 4.6% as compared to the corresponding period of the previous year. Net profit was RMB 418 million and earnings per share was RMB 0.192, an increase of 18.8% year-on-year.

During the Reporting Period, total revenue of toll highway projects operated and invested by the Group maintained increase. However, owing to factors such as slowdown in the growth of macro-economy, changes in the traffic distribution in the road network and implementation of Standardisation Scheme in Guangdong Province since 1 June 2012, the total revenue recorded a slower YOY growth. In a breakdown, average daily toll revenue of Meiguan Expressway, Jihe East, Jihe West, etc. recorded negative growth rates in different degrees. Meanwhile, Qinglian Expressway commenced its full operation in January 2011 and benefited from the synergy effects in road network brought by the commencement of operation of Yifeng Expressway in late September 2011; Yanpai Expressway benefited from the improvement on the conditions of surrounding municipal roads and the relevant marketing efforts, both of these two projects recorded a YOY increase of more than 20%.

During the Reporting Period, despite the corresponding increase in the cost of depreciation and amortization of the toll highways as a result of growth of traffic volume, the maintenance works for the road surface were carried out as scheduled on some of highways in Shenzhen region with the Provisions for Maintenance/resurfacing fund, lowering the expensed maintenance cost. In addition, the Group stopped making Provisions for Maintenance/resurfacing upon adjusting its service and maintenance strategies. As a result, operating costs went down by 7.2%. In the first half of 2012, although market interest rates reduced slightly, lagged effects of interest rate hiked and macro-economic control policies in the previous round led to certain increase in the Group’s cost of capital. Meanwhile, the company’s average scale of borrowings rise year-on-year, resulting in a 26.4% increase in overall financial expenses. 

Complex domestic and international economic environment and uncertainties in toll highway industry policy will continue to exert certain pressure and challenges on the Company’s operation and development. The Management points out that for the second half of 2012, there will be no material changes in the Group’s overall working targets as compared with those in the beginning of 2012. The management of the Company will persevere with its commitment to steady and sustainable business development, while closely monitoring changes in external environment. The Company will focus on such focal points as operation, maintenance, construction, financing and exploration of new industries, and actively push ahead on various work plans in order, and strive to improve the Group’s operating results and management.

Appendix I:

2012 Interim Results Highlights

Appendix II:

Basic Operating Statistics of Various Toll Highways during

the Reporting Period