Zhejiang Expressway : 2021 First Quarterly Results Announcement

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

(Stock code: 0576)

2021 FIRST QUARTERLY RESULTS ANNOUNCEMENT

The directors (the "Directors") of Zhejiang Expressway Co., Ltd. (the "Company") are pleased to announce the first quarterly results of the Company and its subsidiaries (the "Group") for the three months ended March 31, 2021 (the "Period").

The audit committee of the Company has reviewed the quarterly results of the Group for the Period. Set out below are the Group's unaudited condensed consolidated statement of profit or loss and other comprehensive income, unaudited condensed consolidated statement of financial position and unaudited condensed consolidated statement of cash flows for the Period together with the comparative figures for the corresponding period of 2020:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	For the three months
	ended March 31,
	2021		2020
	Rmb'000	Rmb'000
	(Unaudited)	(Unaudited
	and restated)
Revenue	3,701,533		1,622,940
Including: interest income under effective	486,211
interest method		394,574
Operating costs	(2,040,818)	(1,837,064)
Gross profit	1,660,715		(214,124)
Securities investment gains	318,418		612,918
Other income and gains and losses	222,451		142,369
Administrative expenses	(27,042)	(22,900)
Other expenses	(16,231)	(77,579)
Impairment losses under expected credit loss model,	(4,957)
net of reversal	(2,292)
Share of profit of associates	255,819		250,653
Share of profit (loss) of a joint venture	17,178		(18,386)
Finance costs	(466,330)	(497,464)

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		For the three months
		ended March 31,
		2021		2020
		Rmb'000	Rmb'000
		(Unaudited)	(Unaudited
		and restated)
Profit before tax	1,960,021		173,195
Income tax expense	(440,045)	(89,510)
Profit for the Period	1,519,976		83,685
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of financial statements	2,389
of foreign operations		900
Share of other comprehensive loss of an associate,	(4,714)
net of related income tax	-
Other comprehensive (loss) income for the Period,	(2,325)
net of income tax	900
Total comprehensive income for the Period	1,517,651		84,585
Profit(loss) for the Period attributable to:
1,229,347
Owners of the Company		(11,396)
Non-controlling interests	290,629		95,081
		1,519,976		83,685
Total comprehensive income(loss) attributable to:
1,225,667
Owners of the Company		(10,974)
Non-controlling interests	291,984		95,559
		1,517,651		84,585
Earnings(loss) per share
28.31
Basic (Rmb cents)		(0.26)
Diluted (Rmb cents)	27.08		(0.26)

Note: The Company entered into an equity purchase agreement with Zhejiang Communications Investment Group Co., Ltd, to acquire 100% equity interest in Zhejiang Longlililong Co., Ltd with Rmb238,140,000, the acquisition was completed in January 2021. Therefore, in accordance with the guidance set out in Accounting Guideline 5 "Merger Accounting for Common Control Combinations" issued by the Hong Kong Institute of Certified Public Accountants, the comparative condensed consolidated statement of profit or loss and other comprehensive income and condensed consolidated statement of cash flows for the three months ended March 31, 2020 and the condensed consolidated statement of financial position as at December 31, 2020 have been restated.

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	As at		As at
	March 31, December 31,
	2021	2020
	Rmb'000		Rmb'000
			(Unaudited
	(Unaudited)	and restated)
Non-current assets	43,296,857	44,032,701
Current assets	109,277,875	91,652,167
Current liabilities	86,678,285	72,989,123
Net current assets	22,599,590	18,663,044
Total assets less current liabilities	65,896,447	62,695,745
Non-current liabilities	27,432,772	25,511,581
	38,463,675	37,184,164
Capital and reserves
Share capital	4,343,115	4,343,115
Reserves	20,492,823	19,505,296
Equity attributable to owners of the Company	24,835,938	23,848,411
Non-controlling interests	13,627,737	13,335,753
	38,463,675	37,184,164

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

	For the three months
	ended March 31,
	2021		2020
	Rmb'000	Rmb'000
			(Unaudited
	(Unaudited)	and restated)
Net cash generated from operating activities	619,064		2,246,016
Net cash used in investing activities	(61,950)	(3,316)
Net cash generated from (used in) financing activities	3,713,002		(618,825)
Net increase in cash and cash equivalents	4,270,116		1,623,875
Cash and cash equivalents at beginning of the Period	8,645,085		8,090,694
Effect of foreign exchange rate changes	2,389		900
Cash and cash equivalents at end of the Period	12,917,590		9,715,469

On behalf of the Board

Zhejiang Expressway Co., Ltd.

YU Zhihong

Chairman

Hangzhou, the PRC, April 30, 2021

As at the date of this announcement, the Chairman of the Company is Mr. YU Zhihong; the executive directors of the Company are: Mr. CHEN Ninghui and Ms. LUO Jianhu; the non-executive directors of the Company are: Mr. DAI Benmeng, Mr. YUAN Yingjie, and Mr. FAN Ye; and the independent non-executive directors of the Company are: Mr. PEI Ker-Wei, Ms. LEE Wai Tsang, Rosa and Mr. CHEN Bin.

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