Mainland-based Zhejiang Expressway Company announced yesterday its net profit grew 10.3 per cent to 492.147 million yuan (US$59.3 million) for the first half of 2003.

The Hong Kong-listed road operator said it will benefit from the completion of more expressways in the Zhejiang Province by the end of the year, including two major expressways connecting the neighbouring provinces of Jiangxi and Fujian.

Earnings per share stood at 0.113 yuan, and an interim dividend of 0.04 yuan per share was declared.

Zhejiang Expressway is another mainland road operator having registered growth in the first six months.

Last week, Shenzhen Expressway reported a 314 per cent surge in net profit, mainly due to a one-off gain from the sale of road assets.

The company said yesterday it was in talks to acquire interests in two to three expressways in the Pearl River Delta.

The talks are expected to reach a fruitful conclusion by the end of the year with an investment of 1.5 billion yuan (US$181.1 million) involved, said Chen Chao, the firm's chairman.

The company's toll revenue will also be boosted by connection sections of the Shuiguan Expressway and the Yanpai Expressway which will be completed by the end of 2004 and 2005 respectively, Chen said.

Earlier last week, Jiangsu Expressway, another Hong Kong-listed firm from the mainland coastal region, said its earnings rose 14 per cent.

The company said yesterday it planned to broaden the Jiangsu section of an expressway connecting Shanghai and Nanjing, capital of Jiangsu Province.

Having submitted a feasibility report to the government, the company expects work to begin by the end of the year and finish in the first half of 2006.

(HK Edition 08/19/2003 page7)