'We just name those businesses as expressway-related operations. It means Zhejiang Expressway will keep focusing on toll-road operation as the core business,' chairman Geng Xiaoping said.

Zhejiang Expressway said on Tuesday that first-half profit rose 8.9 per cent from a year ago, when growth was 18 per cent, as traffic was affected by road work, including expansion of the Shanghai-Hangzhou-Ningbo expressway.

About 20 per cent of its 2.2 billion yuan operating revenue in the first half was generated from non-toll income, up from 8 per cent a year ago. That was mainly because sales at service areas jumped to 429 million yuan from 114 million yuan.

Daily traffic volume at the Shanghai-Hangzhou-Ningbo Expressway rose 7.8 per cent in the first half to 37,759 in full-trip equivalent, Zhejiang Expressway said. The expressway collected 1.34 billion yuan in tolls, an increase of 11 per cent.

Mr Geng said the expansion of the Hangzhou-Ningbo section of the expressway was expected to be completed by the end of next year.

Another highway operated by the company - Shangsan Expressway - recorded daily traffic volume of 19,922 full-trip equivalent, a 1.5 per cent drop with toll income falling 1.7 per cent to 409.5 million yuan.

Zhejiang Expressway is also looking for new acquisition opportunities, and the revenue of each target should be about 10 per cent of its overall income.

'We don't have any concrete timetable for new acquisitions although there are some targets currently,' Mr Geng said.

Shares of the company rose 1.8 per cent, closing at a four-month high of HK$5.09 yesterday.