2007Annual Results Announcement

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AgendaAgenda

Business Structure

Results Highlights

Review of Operations

Outlook: Entering the Second Venture with Steady Growth

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Business StructureBusiness Structure

Shanghai-Nanjing Section of G312

100%

Nanjing Section of Nanjing-Lianyungang

Highway

100%

Jiangsu Section of Shanghai-Nanjing

Expressway

100%

Jiangsu Ninghu Investment

Development Co., Ltd.

95%

Jiangsu Sundian Engineering Co., Ltd.

70%

Jiangsu Guangjing Xicheng Expressway

Co., Ltd.

85%

Jiangsu Kuailu Bus Transportation

Co., Ltd.

33.2%

Jiangsu Yangtze Bridge

Co., Ltd.

26.66%

Suzhou Sujiahang Expressway Co., Ltd.

33.33%

* During the reporting period, the Company conducted share transfer and capital increase with Jiangsu Sundian Engineering Co., Ltd. and the relevant share transfer and capital increase agreements took effect on 1 January 2008. During the year, Jiangsu Sundian Engineering Co., Ltd. remained as a subsidiary within the scope of  consolidation of the Company's financial statements.

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Results HighlightsResults Highlights

Annual Results Announcement2007

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Major Achievements in 2007Major Achievements in 2007

The 8-lane Shanghai-Nanjing Expressway achieved stable growth, with its traffic volume and toll revenue setting historic highs

Operating measures regarding road operation, financing, project control and management enhancement were effectively implemented, thereby enhancing the Group’s operations across the board

Enhancing service quality and improving the operation tolling system, innovating the on-site management mechanisms so as to maintain a solid operation order

Exploring different financing channels through the issuance of the short-term trust and initiating the corporate bond issue application, with a view to lowering finance costs and enhancing profitability

Rationalizing the Company’s assets and completing the disposal of properties and the transfer of equity interests in subsidiaries

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Financial HighlightsFinancial Highlights

2007(RMB’000)

2006(RMB’000)

Change

(%)For the year ended 31 st December

Revenue, net 5,068,913 3,925,569 29.48%

Profit before taxation 2,450,053 1,762,326 39.02%

Profit attributable to equity holders of the Company

1,642,331 1,174,111 39.88%

Earnings per share (basic)

RMB0.326 RMB0.233 39.88%

Under HKFRS

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Financial Highlights (Cont’d)Financial Highlights (Cont’d)

For the year ended 31st December

RMB ‘000

2,104,904

5,068,913

2,951,996

3,925,569

2,675,814

1,642,331

1,174,111

668,028979,3911,005,773

Revenue (net) and Profit

Net Revenue Net Profit

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Continued economic growth

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Nanjing+15.6%

Zhenjiang+15.5%

Changzhou+15.6%

Wuxi+15.3%

Suzhou+16.0%

China : +11.4%

Strong GDP growth in Jiangsu Province Even stronger growth rates in the 5 cities

Increase inTravels

GDP Growth Rate: 2007

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Major Reasons for GrowthMajor Reasons for Growth

Jiangsu+14.8%

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Major Reasons for Growth (Cont’d)Major Reasons for Growth (Cont’d)

Significant increase in automobile ownership in Jiangsu Province

Automobile ownership : 3.301 million

(+18.91%)

Rapid development of the transportation sector

Passenger transportation ： +16.0%

Cargo transportation ： +14.9%

Improving expressway network

Total expressway mileage: 3,558 km

(+203km)

Toll road polices remained stable

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Revenue BreakdownRevenue Breakdown

Shanghai-Nanjing Expressway

Shanghai-NanjingSection of G312

Guangjing-XichengExpressway

AuxiliaryServices

Other Operations

1.18%Nangjing-Lianyungang Highway

18.82%

64.26%1.63%

3.34% 10.77%

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Review of OperationsReview of Operations

Annual Results Announcement2007

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Operating Performance ReviewOperating Performance Review

Under HKFRS

Average daily traffic volume (vehicle / day)

Average daily toll revenue (RMB ‘000 /day)

2007 Change (%) 2007 Change (%)

Shanghai-Nanjing Expressway 48,374 22.57 9,348.4 33.05

Shanghai-Nanjing Section of 312 29,184 -7.84 486.2 -12.74

Nanjing Section of Nanjing-Lianyungang Highway

7,361 -47.24 171.5 -39.24

Guangjing Expressway 34,705 -1.52 578.1 -7.47

Xicheng Expressway 35,231 12.06 988.7 8.27

Jiangyin Yangtze Bridge 38,165 2.65 1,919.3 -6.91

Sujiahang Expressway 21,387 14.86 1,628.8 10.01

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The second year since the 8-lane expressway’s full opening, realized a total toll revenue of RMB3.4 billion Daily traffic volume: +22.57% Daily toll revenue: +33.05%

Reasons for increase ： Organic growth Lower comparison basis in 2006 Increase of proportion of trucks The assumption of traffic diverted

from Jiangyin Yangtze Bridge

Shanghai-Nanjing ExpresswayShanghai-Nanjing Expressway

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Shanghai-Nanjing Expressway (Cont’d)Shanghai-Nanjing Expressway (Cont’d)

Average daily truck traffic: 33.7% of total traffic +4.55 percentage point YoY

Average daily toll revenue from trucks: 52.93% of total revenue +5.86 percentage point YoY

Traffic VolumeToll Revenue(RMB ‘000/Day)

Average Daily Traffic Volume

(Vehicle/Day)

Passenger Vehicles

(%)

Trucks(%)

Average Daily Toll Volume(RMB’ 000/

Day)

Passenger Vehicles

(%)

Trucks(%)

2007 48,374 66.30 33.70 9,348.4 46.07 52.93

2006 39,46870.8

529.15 7,026.4 52.93 47.07

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Shanghai-Nanjing Section of G312Shanghai-Nanjing Section of G312

Certain truck traffic continued to divert to Shanghai-Nanjing Expressway toll revenue further decreased

Average daily tolled traffic volume:29,184 vehicles (-7.84%)

Average daily toll revenue:RMB486,200 (-12.74%)

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Nanjing Section of Nanjing-Lianyungang HighwayNanjing Section of Nanjing-Lianyungang Highway

Impact of traffic diversions caused by Nanjing-Lianyungang Expressway was at its full extent during the year Average daily traffic volume: -47.24

％ Average daily toll revenue: -39.24 ％

Nanjing-Lianyungang Expressway caused diversions of primarily passenger vehicles

Decrease in revenue < Decrease in traffic

Toll revenue accounted for only 1.18% of the Group’s total revenue, so the future growth of the Group’s results will not be hindered

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Guangjing Xicheng ExpresswaysGuangjing Xicheng ExpresswaysMaintenance works at Jiangyin Yangtze Bridge and at Jiangyin South Viaduct of Xicheng Expressway truck traffic was prohibited Aug - Sept 2007

affected traffic on Guangjing Expressway and Jiangyin Yangtze Bridge

Certain sections of Xicheng Expressway were affected as well

During the traffic control period, diversions caused a growth in truck traffic proportion and toll revenue on Shanghai-Nanjing Expressway, thereby offsetting the toll revenue losses

Guangjing Expressway

Jiangyin Yangtze Bridge

Xicheng Expressway

For the year end of 31st December

Average daily traffic volume

34,705(-1.52%)

38,165 (-2.65%)

35,231(+12.06%)

Average daily toll revenue

578.1(-7.47%)

1,919.3 (-6.91%)

988.7(+8.27%)

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Sujiahang ExpresswaySujiahang Expressway

Increasing the proportion of trucks, broadening the source of revenue

average daily full-trip traffic: 21,387 vehicles (+14.86%)

average daily toll revenue: RMB 1.63 million (+10.01%)

In April 2008, Sutong Bridge will be open to traffic

facilitate traffic volume

growth for Sujiahang Expressway

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Auxiliary ServicesAuxiliary Services

Revenue growth mainly attributable to customer growth at service areas

Revenue: RMB999,279,000 (+62.80%)

Petroleum product sales: RMB857,142,000 (+70.36%)

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Outlook ： Entering the Second Venture with Steady Growth

Outlook ： Entering the Second Venture with Steady Growth

Annual Results Announcement2007

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OutlookOutlook

Overall trend of the economy is positive. As a sector highlighted for prioritized development under the Eleventh Five-year Plan, the transportation sector maintains a development edge.

Social automobile ownership will maintain rapid growth, driven by economic development

Income tax rate adjustment in 2008 provides room for profit growth

2008 Operating Environment

The Group’s major toll road and bridge projects are still in the growing stageThe Group’s major toll road and bridge projects are still in the growing stage

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Outlook (Cont’d)Outlook (Cont’d)

2008 Operating Environment (Cont’d)

Bank loan interest rates are expected to be increasing during the rate increase cycle, and the Company’s relatively high gearing will be exposed to rising finance costs.

Ever-improving road networks will lead to re-allocation of overall traffic volume, making potential diversion and competition inevitable.

After the defect liability stage, the newly-constructed road assets will enter the normal maintenance stage, which will gradually increase maintenance costs.

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Outlook (Cont’d)Outlook (Cont’d)

Business operation

Maintaining stable revenue growth to ensure stable returns to shareholders

Improving the internal management system and procedures to raise the standards of regulated and refined management

Road operation

Maintaining good road quality and service standards to ensure safe and smooth traffic on the roads

Financial management

Reducing finance costs and expenses and preventing market interest rate risks

Management enhancement

Business development

Actively seeking market opportunities to timely enhance the Company’s development potential

2008 Strategic Development Objectives

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Outlook (Cont’d)Outlook (Cont’d)

Business operation

Strengthening the effort on toll collection management; brand-building service areas to increase operating revenue of service areas; exercising cost controls and enhance profitability

Improving and enhancing various management systems and procedures by fully implementing the internal control management , so as to enhance the standards of regulated and refined management

Proactively initiating studies on investment in order to seek feasible projects, enhancing the Company’s development potential and searching for new sources of profit growth

Completing the late-stage tasks of the expansion project; reinforcing the management of road operation order; carrying out good road maintenance ; providing good traffic conditions to facilitate rapid growth in traffic volume

Road operation

Actively moving forward the corporate bonds and short-term commercial papers work, arranging a considerable proportion of fixed rate liabilities, so as to reduce finance costs and expenses

Financial management

Managementenhancement

Businessdevelopment

2008 Major Measures

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Thank YouThank You

Annual Results Announcement2007