2003 Interim Results Presentation

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Pursue Excellence, Enhance Value.
2003 Interim Results Presentation
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Agenda

• Financial Highlights
• Operating Environment
• Business Review
• - Toll Road Operations
• - Other Business Operations
• Project Investments
• Outlook
• Appendices

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Financial Highlights
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Profit Year-on-Year Growth
Results (unaudited)
2003 2002 (RMB 000) (RMB 000) change
For the six months ended June 30
(restated)
Turnover 1,099,917 1,005,306 9.4Operating
costs (316,266) (228,964) 38.1 Gross
profit 783,651 776,342 0.9Other revenue 56,033
56,069 -0.1Administrative expenses (29,908)
(28,091) 6.5Other operating expenses (12,846)
(11,987) 7.2 Profit from operating
activities 796,930 792,333 0.6Finance
costs (66,518) (83,544) -20.4Share of profit
and losses of Associated companies 5,936 2,791
112.7 Jointly-controlled entity 3,810 630 504.8
Profit before tax 740,158 712,210 3.9Tax (203,3
70) (212,896) -4.5 Profit before minority
interests 536,788 499,314 7.5Minority
interests (44,641) (53,296) -16.2 Net profit
attributable to shareholders 492,147
446,018 10.3Earnings per share (RMB
cents) 11.3 10.3 10.3Interim dividend per share
(RMB cents) 4.0 4.0 0
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Six Years of Continued Growth
Turnover
Net Profit
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Six Years of Continued Growth
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Strong Balance Sheet
Balance Sheet (unaudited)
For the six months ended Year ended June 30,
2003 December 31, 2002 change (RMB million)
(RMB million)
(restated)
Cash and bank deposits 949 949 0Short-term
investments 1,114 858 29.8 Total
assets 14,810 14,506 2.1 Total
liabilities 4,037 3,826 5.5Total
debt 3,112 3,038 2.4 Total equity 9,803 9,702 1
.0Minority interests 970 978 -0.8 Debt to
equity () 31.7 31.3 0.4Total liabilities to
total assets () 27.3 26.4 0.9
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Operating Environment
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Operating Environment
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Business Review- Toll Road Operations
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Breakdown of Group Turnover
Other Business Operations
Toll Road Operations
Service Areas
Petroleum Co
(5.4)
(94.6)
Shanghai-Hangzhou-NingboExpressway
Advertising Co
JoinHandsTechnology
Shangsan Expressway
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Two Major Expressways
6.41
24.84
4.7
21.1
6 months ended June 30, 2003
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Toll Income Mix
Monthly Average Daily Toll Income (Average of the
first 6 months)
RMB000

• Contributing 78 of the Groups total toll
  income, Shanghai-Hangzhou-Ningbo Expressway
  remains the Groups No. 1 revenue generator

4,702.38
4,489.3

• Shanghai-Hangzhou Expressway

Jiaxing Section
Yuhang Section
Hangzhou Section

• Hangzhou-Ningbo Expressway

1,355.03
1,117.53

• Shangsan Expressway

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Review of Operations
Daily Traffic Volume
Shanghai-Hangzhou-NingboExpressway
Shangsan Expressway
Full trips
Full trips
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Factors Affecting Traffic Growth
Shanghai-Hangzhou-Ningbo Expressway
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Factors Affecting Traffic Growth
Shangsan Expressway
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Business Review- Other Business Operations
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Ancillary Businesses Growing Stronger
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Ancillary Businesses Growing Stronger
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Project Investments
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Widening Project Shanghai-Hangzhou-Ningbo
Expressway
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Road Surface-overlaying Project
Shanghai-Hangzhou-Ningbo Expressway

• Progressed ahead of schedule
• Measures were being taken to minimize impact on
  normal traffic flow on expressway
• Over half of the project planned for 2003 has
  been completed
• Substantial improvement in service quality

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Additional Acquisition of Shangsan Expressway

• Acquired an additional 2 ownership interest in
  Shangsan Co on May 8, 2003

• Cash consideration of RMB 57.6 million
• Ownership interest in Shangsan Co increased from
  71.625 to 73.625

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New Co. to Develop Non-core Business
Development Co

• Zhejiang Expressway Investment Development Co.,
  Ltd. (Development Co) was established on May
  28, 2003

• Engaged in the operation of service areas and
  roadside advertising along the expressways
  operated by the Group

• A stronger focus on non-core business
• Streamline the Groups operations

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Outlook
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Seizing Opportunities
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Seizing Opportunities
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Overcoming Challenges
Challenges
Greater competition in view of greater market
demand
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Appendix I Organization Chart
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Appendix II Zhejiang Province Map
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Pursue Excellence, Enhance Value.
2003 Interim Results Presentation