2013 First Quarterly Results Announcement

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

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

(Stock code: 0576) 2013 FIRST QUARTERLY RESULTS ANNOUNCEMENT This quarterly results announcement of Zhejiang Expressway Co., Ltd. (the "Company") for the three months endedMarch 31, 2013 (the "Period") is made pursuant to the Rules Governing the Listing of Securities on The StockExchange of Hong Kong Limited and has been prepared in compliance with section 4.3 of the Disclosure andTransparency Rules of the United Kingdom Listing Authority. The audit committee of the Company has reviewed the quarterly results of the Company and its subsidiaries(collectively the "Group") for the Period. Set out below are the Group's unaudited condensed consolidated statementof comprehensive income, unaudited condensed consolidated statement of financial position and unaudited condensedconsolidated statement of cash flow for the Period together with the comparative figures for the correspondingperiod of 2012:

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

For the three months ended March 31, Notes 2013 2012 Rmb'000 Rmb'000 ------------ ------------Revenue 1 1,682,303 1,584,489Operating costs (1,043,994) (990,040) ------------ ------------Gross profit 638,309 594,449 Securities investment gains 40,138 15,202Other income 2 50,335 59,807Administrative expenses (17,066) (16,639)Other expenses (7,746) (7,625) Share of loss of associates (3,107) (3,651)Share of loss of a jointly controlled entity (9,323) --Finance costs (2,700) (16,536) ------------ ------------Profit before tax 688,840 625,007Income tax expense (177,181) (157,973) ------------ ------------Profit for the Period 511,659 467,034 ------------ ------------ Other comprehensive income Available-for-sale financial assets: -- Fair value gain during the Period 2,767 2,997Income tax relating to components of other comprehensive income (692) (749) ------------ ------------Other comprehensive income for the Period (net of tax) 2,075 2,248 ------------ ------------Total comprehensive income for the Period 513,734 469,282 ============ ============Profit for the Period attributable to: Owners of the Company 440,092 416,943 Non-controlling interests 71,567 50,091 ------------ ------------ 511,659 467,034Total comprehensive income for the

============ ============

Period attributable to: Owners of the Company 441,174 418,115 Non-controlling interests 72,560 51,167 ------------ ------------ 513,734 469,282 ============ ============ Earnings per share -- basic and diluted 3 10.13 cents 9.60 cents ============ ============

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at As at March 31, December 31, 2013 2012 Rmb'000 Rmb'000 Unaudited Audited ------------ ------------Non-current assets 13,212,818 13,692,835Current assets 16,017,256 15,752,546Current liabilities 9,378,486 10,204,886 ------------ ------------Net current assets 6,638,770 5,547,660 ------------ ------------ Total assets less current liabilities 19,851,588 19,240,495 ------------ ------------Non-current liabilities 321,579 224,220 ------------ ------------ 19,530,009 19,016,275 ============ ============ Capital and Reserves Share capital 4,343,115 4,343,115 Reserves 11,618,311 11,177,137 ------------ ------------ Equity attributable to owners of the Company 15,961,426 15,520,252Non-controlling interests 3,568,583 3,496,023 ------------ ------------ 19,530,009 19,016,275 ============ ============

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

For the three months ended March 31, 2013 2012 Rmb'000 Rmb'000 ------------ ------------ Net cash from operating activities 17,959 494,690Net cash from (used in) investing activities 382,855 (612,820)Net cash used in financing activities

(900,000) (50,000)

------------ ------------Net decrease in cash and cash equivalents (499,186) (168,130)Cash and cash equivalents at beginning of the Period

3,362,709 3,120,430

------------ ------------Cash and cash equivalents at end of the Period 2,863,523 2,952,300 ============ ============ Notes: 1. REVENUE

An analysis of the Group's revenue, net of discounts and taxes, for the Period is as follows:

For the three months ended March 31, 2013 2012 Rmb'000 Rmb'000 Unaudited Unaudited ------------ ------------ Toll operation revenue 847,019 830,753Service area businesses revenue (mainly sales of goods) 455,757 470,603Advertising business rental revenue 26,722 22,688Commission income from securities operation 280,047 194,655Interest income from securities operation 72,758 65,790 ------------ ------------Total revenue 1,682,303 1,584,489 ============ ============ 2. OTHER INCOME For the three months ended March 31, 2013 2012 Rmb'000 Rmb'000 Unaudited Unaudited ------------ ------------Interest income from bank balances, entrusted loan receivables and financial products investment 26,175 35,305Rental income 17,480 15,990Handling fee income 631 2,008Towing income 2,430 1,827Exchange gain, net 6 38Others 3,613 4,639 ------------ ------------Total 50,335 59,807 ============ ============ 3. EARNINGS PER SHARE The calculation of the basic earnings per share is based on profit for the Period attributable to owners of theCompany of Rmb440,092,000 (corresponding period of 2012: Rmb416,943,000) and the 4,343,114,500(2012: 4,343,114,500) ordinary shares in issue during the Period.

Diluted earnings per share presented is the same as basic earnings per share since there were no potentialordinary shares outstanding for both Periods.

BUSINESS REVIEW

While China's economy stabilized and recovered in the fourth quarter of 2012, it has shown another slowdown ingrowth in the first quarter of 2013. China's GDP recorded a year-on-year growth of 7.7% for the first quarter,which is 0.2 percentage point lower than the last quarter. Despite the deceleration in domestic economic growthin the first quarter, Zhejiang Province's economy maintained its upward trend since last year, evidenced by ayear-on-year GDP growth of 8.3% in the first quarter and improvements in various economic indicators includingforeign trade and investment as compared to the corresponding period of last year. Benefitting from the gradual recovery of the province's economy and improved environment for foreign trade, theGroup's income increased by 6.3% year-on-year during the Period, realizing a total of Rmb1,732.61 milliongenerated from various income sources. Of this, Rmb875.12 million was generated from the two major expresswaysowned and operated by the Group, representing an increase of 1.9% over the corresponding period of 2012 andaccounting for 50.5% of total income; and Rmb485.45 million was generated from the Group's toll road-relatedbusinesses, representing a slight decline of 2.4% as compared to the corresponding period of 2012 and accountingfor 28.0% of total income. The Group's securities business contributed income of Rmb372.04 million, representingan increase of 35.9% over the corresponding period of 2012 and accounting for 21.5% of total income.

TOLL ROAD OPERATIONS

During the Period, the organic growth in traffic volume on the Group's two expressways maintained an upward trendsince the fourth quarter of last year as the province's economy gradually recovered. Meanwhile, with theimprovement seen in the province's indicators such as the scale of foreign trade and investment in fixed assets,the traffic volume along the Shanghai-Hangzhou-Ningbo Expressway and the Shangsan Expressway recorded significantlyhigher organic growth for the Period as compared to that of the fourth quarter of last year. In particular,the traffic volume along the Shangsan Expressway and the Ningbo Section of the Hangzhou-Ningbo Expresswayconnecting to the Beilun Port, along which many small- and medium-sized enterprises are located, recordedrelatively rapid organic growth. The new policy for exemption from toll charges for passenger vehicles with seven seats or less travelling onexpressways during major festivals and holidays, introduced for the first time on September 30, 2012 was extendedto the seven-day Chinese New Year holiday in February 2013. This resulted in a decrease of approximately Rmb30.00million in the Group's toll income, representing a decrease of approximately 3.4 percentage points for the Period. Moreover, the gradual abolition of the "Unified Toll Card" policy in early 2012 resulted in a slight decrease intraffic volume on the Hangzhou Section during the first quarter. The adjustment to the rounding of the last figuresof tolls for passenger vehicles in mid-May 2012 and the policy of adjusting passenger vehicle classificationlaunched in early August 2012 also resulted in a slight decrease in toll income for passenger vehicles andmotorcycles. Nevertheless, since the implementation of the tolling policy based on actual travel routes for expressways onMay 15, 2012, the Company has adopted various promotional methods to guide and attract more vehicles to travelon the Group's expressways, while further strengthening the initiatives for increasing income as well as pluggingloopholes, thereby increasing the traffic volume and toll income on some sections of the Shanghai-Hangzhou-NingboExpressway and the Shangsan Expressway. During the Period, the average daily traffic volume in full-trip equivalents on the Group'sShanghai-Hangzhou-Ningbo Expressway was 41,549, representing a year-on-year increase of 3.1%. In particular, theaverage daily traffic volume in full-trip equivalents on the Shanghai-Hangzhou Section of Shanghai-Hangzhou-NingboExpressway was 42,015, representing a year-on-year increase of 2.6%, and that along the Hangzhou-Ningbo Sectionwas 41,217, representing a year-on-year increase of 3.5%. The average daily traffic volume in full-trip equivalentson the Shangsan Expressway was 17,634 during the Period, representing a year-on-year increase of 2.9%. During the Period, toll income from the Shanghai-Hangzhou-Ningbo Expressway amounted to Rmb702.26 million,representing a year-on-year increase of 1.1%; while toll income from the Shangsan Expressway amounted toRmb172.86 million during the Period, representing a year-on-year increase of 5.4%.

TOLL ROAD-RELATED BUSINESS OPERATIONS

The Company also operates certain toll road-related businesses along its expressways through its subsidiaries andassociated companies, including gas stations, restaurants, shops in service areas, roadside advertising and vehicleservices. During the Period, the continued closure of the Yuyao Service Area for expansion work which commenced in June lastyear had certain impacts on sales of refined oil products in the service areas, resulting in a decrease in overallincome of the service areas for the Period as compared to the corresponding period of last year. Accordingly,income from the toll road-related businesses amounted to Rmb485.45 million for the Period, representing ayear-on-year decrease of 2.4%.

SECURITIES BUSINESS

China's stock markets showed a hint of stabilizing and rebounded in December 2012. In the first quarter of 2013,the aggregate trading volume of the Shanghai and Shenzhen stock markets rose by 27.1% year-on-year and trading indomestic stock markets has also improved. Although the market share of Zheshang Securities declined slightly, itscommission income recorded significant growth during the Period. Benefitting from the substantial growth in trading volume of the stock markets as well as the slight rebound incommission rates, revenue from Zheshang Securities' securities brokerage business, investment banking business andasset management business showed varying degrees of year-on-year growth during the Period. Meanwhile, to cope with the uncertainties amidst the prevailing recovery of the stock market, Zheshang Securitiescommitted full effort to developing various businesses while actively improving its income and profit structure.By continuously developing businesses such as futures brokerage, investment banking and margin trading, ZheshangSecurities gradually adjusted its business structure, which was previously dominated by its brokerage operations,with a view to further facilitating the sustainable and solid development of various businesses. During the Period, Zheshang Securities recorded an operating income of Rmb372.04 million, representing ayear-on-year increase of 35.9%. Of this, brokerage commission income amounted to Rmb299.28 million, representing ayear-on-year increase of 44.0%; and interest income from the securities business amounted to Rmb72.76 million,representing a year-on-year increase of 10.6%. Moreover, securities investment gains from Zheshang Securitiesaccounted for in the unaudited condensed consolidated statement of comprehensive income amounted toRmb37.07 million during the Period.

LONG-TERM INVESTMENTS

Zhejiang Expressway Petroleum Development Co., Ltd. (a 50% owned associate company of the Company) benefited fromthe increase in the prices and sales of refined oil products during the Period, with the associate companyrealizing income of Rmb1,478.60 million during the Period, representing a year-on-year increase of 6.6%. Duringthe Period, the associate company achieved net profit of Rmb4.46 million (for the corresponding period of 2012:net profit of Rmb3.08 million). Zhejiang Jinhua Yongjin Expressway Co., Ltd. (a 23.45% owned associate company of the Company) operates the 69.7kmJinhua Section of the Ningbo-Jinhua Expressway. During the Period, passenger traffic and logistics volume of theJinhua Section grew as the economy gradually rebounded. This section recorded an average daily traffic volume of14,244 in full-trip equivalents, representing a year-on-year increase of 19.6%; while toll income amounted toRmb60.16 million, representing a year-on-year increase of 9.0%. Due to its heavy financial burden, the associatecompany incurred a loss of Rmb12.64 million during the Period (for the corresponding period of 2012: a loss ofRmb15.28 million). JoinHands Technology Co., Ltd. (a 27.582% owned associate company of the Company) generated its income primarilyfrom property leasing activities during the Period, and the associate company did not show any significantimprovements in its operations. The Company filed a lawsuit regarding the transfer of equity interest in theassociate company and subsequently made an appeal against the ruling. The case is pending a final judgment to bemade by the Intermediate People's Court in Hangzhou City. Please refer to page 23 of the 2012 annual report of theCompany for details. Shengxin Expressway Co., Ltd. ("Shengxin Company", a jointly controlled entity in which the Company owns a 50%equity interest), operates the Shaoxing Section of the 73.4km Ningbo-Jinhua Expressway. During the Period, theprogressive growth of the province's economy drove up traffic volume of this section, which recorded an averagedaily traffic volume of 11,850 in full-trip equivalents, representing a year-on-year increase of 0.8%, while tollincome amounted to Rmb65.04 million. Due to its heavy financial burden, the associate company incurred a loss ofRmb18.65 million during the Period.

FINANCIAL ANALYSIS

LIQUIDITY AND FINANCIAL RESOURCES

As at March 31, 2013, the current assets of the Group aggregated to Rmb16,017.26 million (December 31, 2012:Rmb15,752.55 million), of which bank balances and cash accounted for 24.0% (December 31, 2012: 30.8%), bankbalances held on behalf of customers accounted for 48.1% (December 31, 2012: 47.6%), and held-for-tradinginvestments accounted for 8.8% (December 31, 2012: 9.4%). Current ratio of the Group (current assets over currentliabilities) as at March 31, 2013 was 1.7 (December 31, 2012: 1.5). Excluding the effect of customer depositsarising from the securities business, the resultant current ratio of the Group (current assets less balance ofcash held on behalf of customers over current liabilities less balance of accounts payable to customer arisingfrom securities business) was 4.8 (December 31, 2012: 3.0).

During the Period, net cash inflow generated from the Group's operating activities amounted to Rmb17.96 million.

The Directors do not expect the Group to experience any problem with liquidity and financial resources in theforeseeable future.

BORROWINGS AND SOLVENCY

As at March 31, 2013, total liabilities of the Group amounted to Rmb9,700.07 million (December 31, 2012:Rmb10,429.11 million), of which 1.0% was domestic bank loan, and 78.8% was accounts payable to customers arisingfrom securities business. During the Period, total interest expenses amounted to Rmb2.70 million (for the corresponding period of 2012:Rmb16.54 million), while profit before interest and tax amounted to Rmb691.54 million (for the correspondingperiod of 2012: Rmb641.54 million). The interest cover ratio (profit before interest and tax over interestexpenses) stood at 256.1 times (corresponding period of 2012: 38.8 times). The asset-liability ratio (total liabilities over total assets) was 33.2% as at March 31, 2013(December 31, 2012: 35.4%). Excluding the effect of customer deposits arising from the securities business, theresultant asset-liability ratio (total liabilities less balance of accounts payable to customers arising fromsecurities business over total assets less bank balances held on behalf of customers) of the Group was 9.5%(December 31, 2012: 13.4%).

CAPITAL STRUCTURE

As at March 31, 2013, the Group had Rmb19,530.01 million total equity, Rmb7,645.65 million fixed-rate liabilities,Rmb100.00 million floating-rate liabilities and Rmb1,954.42 million interest-free liabilities, representing 66.8%,26.2%, 0.3% and 6.7% of the Group's total capital, respectively. The gearing ratio, which was computed by dividingthe total liabilities less accounts payable to customer arising from securities business by total equity, was10.5% as at March 31, 2013 (December 31, 2012: 15.5%).

CONTINGENT LIABILITIES AND PLEDGE OF ASSETS

As at March 31, 2013, Zhejiang Yuhang Expressway Co., Ltd. (a 51% owned subsidiary of the Company) provided aproperty under construction as a mortgaged asset for its domestic commercial bank loan of Rmb100.00 million. Thecarrying amount of the mortgaged asset was Rmb268.59 million.

Apart from the above-mentioned, the Group did not have any contingent liabilities nor pledge of assets orguarantees.

OUTLOOK

Entering 2013, although the United States' economy has shown a relatively significant recovery, the European debtcrisis has yet to come to an end and the global economy still lacks growth momentum. The domestic economy is nowon a track of moderate recovery under structural adjustment, and the economic growth of Zhejiang Province in thesecond quarter is therefore expected to be slower than that in the first quarter. As such, the organic growth intraffic volume on the Group's two expressways is anticipated to decline from the first quarter. In addition, the policy of expressway toll exemptions for small passenger vehicles, introduced by the Governmentin September last year, has brought adverse impact to toll expressway companies. Therefore, such impact ofexpressway toll exemptions for small passenger vehicles in the second quarter, in which there are two keyfestivals and holidays namely Ching Ming Festival and Labour Day, is expected to be greater than that during theChinese New Year holidays. We expect the toll income generated from the expressways of the Group in the secondquarter to fall as compared to the first quarter. At the same time, the lack of organic economic growth momentum and signs of strong macro-economic recovery willalso bring along more uncertainties for China's stock markets. On one hand, Zheshang Securities will continue topush forward progress on a listing on the Shanghai Stock Exchange as planned, and has already filed the listingapplication for A shares in the second quarter; on the other hand, the Company will strengthen its control ofcosts and risks by taking further steps to explore innovative businesses and by broadening income sources in abid to facilitate the excellent development of all businesses. Although a number of new policies on adjusting expressway toll rates have been gradually introduced in ZhejiangProvince as per requirements jointly issued by the five ministries and commissions of the State Council inrelation to toll rectification, we cannot rule out the possibility of new policies that would further hamper theexpressway sector. The complexities in relation to the global economy, in tandem with a variety of unfavourable factors affectingdomestic economic growth in the second quarter as well as persistent uncertainty in relation to highway industrypolicies, have brought new challenges to the Group's business development. The Company's management will payclose attention to updates in industry policy to adjust its operational strategies in a timely manner, continueto improve our core expressways business and optimize our securities and finance business, while striving to seekfor suitable investment projects and to nurture management capabilities in our diversified operations. By order of the Board Zhan Xiaozhang Chairman Hangzhou, PRC, May 7, 2013 As at the date of this announcement, the executive directors of the Company are: Mr. ZHAN Xiaozhang, Ms. LUOJianhu and Mr. DING Huikang; the non-executive directors of the Company are: Messrs. LI Zongsheng, WANG Weili andWANG Dongjie; and the independent non-executive directors of the Company are: Messrs. ZHANG Junsheng, ZHOU Junand PEI Ker-Wei. There have been no material events, transactions or change in the financial position of the Company other than asoutlined in this statement. Further, the Board is not aware of any material events, transactions or change in thefinancial position of the Company which have occurred since 31 March 2013 up to and including 6 May 2013,being the latest practicable date before the date of the publication of this Announcement.