Hong Kong Exchanges and Clearing : 2019 Interim Results Preliminary Announcement of Shenzhen Expressway Company Limited

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(incorporated in Bermuda with limited liability)

(Stock Code: 00152)

(the "Company")

OVERSEAS REGULATORY ANNOUNCEMENT

The document attached hereto is the 2019 Interim Results Preliminary Announcement released by Shenzhen Expressway Company Limited, a subsidiary of the Company.

Hong Kong, 23 August 2019

As at the date of this announcement, the board of directors of the Company consists of Messrs. Gao Lei, Li Hai Tao, Zhong Shan Qun, Liu Jun and Hu Wei as executive directors, Messrs. Xie Chu Dao and Liu Xiao Dong as non-executive directors and Messrs. Ding Xun, Nip Yun Wing, Dr. Yim Fung, JP and Professor Cheng Tai Chiu, Edwin as independent non-executive directors.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

深圳高速公路股份有限公司

SHENZHEN EXPRESSWAY COMPANY LIMITED

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 00548)

2019 Interim Results Preliminary Announcement

1. Important Notice

1.1 Important Notice

2019 Interim Results Preliminary Announcement of the Company is extracted from full Interim Report 2019 of the Company. For detailed information, investor shall read the full interim report to be published on the website of SSE at http://www.sse.com.cn and HKEx at http://www.hkexnews.com.hk.

The 2019 interim financial statements of the Company were prepared in accordance with CASBE, and also were complied with the disclosure requirements under the Hong Kong Companies Ordinance and the Listing Rules.

Unless otherwise stated, the amounts stated in this announcement are in RMB.

1.2 Basic Information of the Company

Type of share	A Share		H Share
Abbreviation	Shenzhen Expressway		Shenzhen Expressway
Stock code	600548		00548
Listing exchanges	SSE		HKEx
Contacts and details	Secretary of the Board		Securities Officer
Name	LUO Kun		GONG Xin, XIAO Wei
Telephone	(86) 755-8285 3331		(86) 755-8285 3338
Fax		(86) 755-8285 3400
E-mail	[e-mail]

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1. Interim Profit Distribution Proposal

The Board does not recommend any payment of 2019 interim dividend (2018 Interim: Nil), nor does it recommend any conversion of capital reserve into share capital.

1. Principal Financial Data and Information of the Shareholders

3.1 Principal Financial Data

During the Reporting Period, the Group recorded revenue of RMB2,699,193,000, basically flat with the corresponding period of last year. Excluding the effect of the toll revenue from the Three Projects of RMB341,918,000 for the corresponding period of last year due to the government's repurchase at the end of 2018, the comparable revenue increased by 15.57%, among which, the comparable toll revenue increased by 3.95%.

In the first half of 2019, the Group recorded net profit attributable to owners of the Company ("net profit") of RMB1,576,824,000 (2018 interim: RMB968,653,000), representing a YOY increase of 62.79%. This was mainly due to the completion of capital injection for Coastal Company, the recognition of deferred income tax asset related to a portion of previously deductible loss and the impairment of highway assets, and the increase in the Group's investment income arising from the transfer of the whole equity interests and creditor's rights in four subsidiaries (including Guizhou Shengbo) during the Reporting Period.

						Unit: RMB
		As at 30 Jun 2019		As at 31 Dec 2018			Change
		(Unaudited)		(Audited)			(%)
	Total assets	41,352,915,924.22		41,100,850,328.23		0.61
	Owners' equity attributable to owners of	17,420,586,928.12		17,387,090,943.28		0.19
	the Company
		2019 Interim		2018 Interim			Change
		(Unaudited)		(Unaudited)			(%)
	Revenue	2,699,192,701.81	2,677,522,763.36	0.81
	Net profit attributable to owners of the	1,576,824,356.13	968,653,293.65	62.79
	Company
	Net profit attributable to owners of the	1,414,280,546.60
	Company	787,960,143.95	79.49
	- excluding non-recurring items
	Net cash flows from operating activities	786,461,423.94	1,595,145,985.86	-50.70
	Return on equity - weighted average (%)	8.80	6.91			Increase
			1.89 pct.pt
	Earnings per share - basic (RMB/share)	0.723	0.444	62.79
	Earnings per share - diluted (RMB/share)	0.723	0.444	62.79

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3.2 Information of the Total Number of Shareholders and the Top Ten Shareholders

As at the end of the Reporting Period, based on the shareholders' registers provided by the share registrars and the transfer offices of the Company in the PRC and Hong Kong, the information of the total number of shareholders and the top ten shareholders of the Company were as follows:

Unit: share

Total number of shareholders		The Company had18,163 shareholders in total,
as at the end of the Reporting Period		including 17,932 holders of A Shares and 231 holders of H Shares.
The top ten shareholders as at the end of the Reporting Period
						Number of	Number of
			Nature of		Number of	restricted
Name of shareholder		Percentage	shares pledged
			shareholders		shares held	circulating	or frozen
						shares held
HKSCC NOMINEES LIMITED note		Overseas	33.48%	730,083,099	－	Unknown
			legal person
Xin Tong Chan Development (Shenzhen)		State-owned	30.03%	654,780,000	－	None
Company Limited		legal person
Shenzhen Shen Guang Hui Highway Development	State-owned	18.87%	411,459,887	－	None
Company Limited		legal person
China Merchants Expressway Network ＆		State-owned	4.00%	87,211,323	－	None
Technology Holdings Co.,Ltd.		legal person
Guangdong Roads and Bridges Construction	State-owned	2.84%	61,948,790	－	None
Development Company Limited		legal person
			Domestic
Hong Kong Central Clearing Company Limited	non-state-owned	1.57%	34,254,919	－	Unknown
			legal person
PICC Property and Casualty Company Limited -	Domestic
non-state-owned	0.56%	12,161,143	－	Unknown
Tradition - Return Portfolio
	legal person
AU SIU KWOK		Overseas natural	0.50%	11,000,000	－	Unknown
	person
China Life Insurance Company Limited - Dividend	Domestic
non-state-owned	0.38%	8,356,700	－	Unknown
- Individual Dividend - 005L - FH002 Shanghai
legal person
China Life Insurance Company Limited - Tradition	Domestic
- General Insurance Products - 005L - CT001	non-state-owned	0.31%	6,854,767	－	Unknown
Shanghai		legal person
			XTC Company and SGH Company are connected persons under the
			same control of Shenzhen International.
Connected relationship or		There is no connected relationship among the state-owned shareholders
concerted action relationship		in the above table. The Company did not notice any connected
among the abovementioned shareholders		relationship among the other abovementioned shareholders or any
			connected relationship among the abovementioned state-owned
			shareholders and other shareholders.

Note: The H shares held by HKSCC NOMINEES LIMITED were held on behalf of various clients.

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IV. Management Discussion and Analysis

In order to achieve the Company's strategic goal of transformation and upgrading, in addition to upgrading and consolidating the core business of toll highway, the Group adheres to a market-oriented, specialised and industrialised approach to adjust and integrate its internal organisational structure and functions. It has gradually established various business platforms for urban infrastructure, environmental protection, operation, construction and advertising, which include the Investment Company, a company principally engages in the business of expanding infrastructure construction market as well as joint comprehensive development of land; the Operation Development Company, a company principally engages in the provision of highway operation, maintenance management services and intelligent transportation business; the Environmental Company, a company principally engages in the expansion of businesses relating to the general-environmental protection industry; the Construction Development Company, a company principally engages in the provision of project construction management services; and the Advertising Company, a company principally engages in the advertising resources rental and development business. Through the aforesaid platform companies, the Group will give full play to its own competitive advantages in operation of infrastructure as well as infrastructure management and integrated management, so as to expand its business sectors to construction and operation services of urban and transport infrastructure and joint comprehensive development of land. The Group will also actively extend its business scope to the upstream and downstream of the industrial chain and develop transportation planning, design consulting, operation maintenance, intelligent transportation system, advertising service, finance and other service-oriented businesses. In addition, the Group prudently seeks opportunities for cooperation with leading and branded enterprises in the environmental protection industry to enter the relevant environmental protection business sector from a high starting point, thereby gradually developing the Group's professional competitive strengths in certain environmental protection segments and striving for greater rooms for the development of the Group's operation.

4.1 Business Review

At the current this stage, the Group's revenues and profits are mainly derived from toll highway operations and investments, and the profit contribution of environmental protection business is gradually emerging. In addition, the Group provides outstanding construction management and highway operation management services for the government and other enterprises. Building on the relevant management experiences and resources and relying on its core business, the Group has launched businesses such as project development and management, advertising, engineering consulting, inter-network toll collection and financial businesses, etc. The principal business of the Group is set out as follows:

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