Zhejiang Expressway Co Ltd has posted an H1 pretax profit of RMB2.3bn, from RBM2.7bn. Revenue was RMB5.3bn, from RMB6.2bn.
"In the first half of 2016, as Zhejiang Province's economy steadily improved, traffic volume on the Group's expressways continued to register healthy organic growth, the Group's toll revenue registered an increase of 6.6% year-on-year," the company said.
"However, due to weak domestic market sentiment and lackluster trading on domestic stock markets, though income from Zheshang Securities' investment banking business experienced significant growth, other business segments of Zheshang Securities recorded varied levels of income decrease year-on-year.
"Despite that, Zheshang Securities still outperformed the market in general. In conclusion, although the Company saw a year-on-year decrease in profit due to various macro factors, all business segments within the Group remained competitive.
"In the second half of the year, in response to the dynamic change of internal and external environment, the Company's management will closely monitor the latest financial policy developments as well as evolving market trends to better formulate future strategic development plans.
"The Group will look to expand its core expressway business by investing in and acquiring quality toll road assets to further enhance its core competencies while strengthening its securities business and seeking suitable investments and development projects in order to enlarge the asset scale of its core businesses and increase future profitability."