Net Profit Rose 97.5% to RMB745.8 Million
HONG KONG, Aug. 28 /Xinhua-PRNewswire-FirstCall/ --
-- Total revenue from operations increased 165.1% year-on-year to
RMB4,612.8 million.
-- Profit from operations increased 87.3% year-on-year to RMB856.6
million.
-- Profit attributable to equity holders increased 97.5% year-on-year to
RMB745.8 million.
Guangshen Railway Company Limited ("Guangshen Railway" or the "Company") (HKEx Share Code: 525; SSE Share Code: 601333; American Depositary Shares ("ADS") Ticket Symbol: GSH) today announced the unaudited interim results of the Company and its subsidiaries (the "Group") for the period ended June 30, 2007 (the "Period").
Following the Group's acquisition of the operating asset and business of railways between Guangzhou and Pingshi, total revenue from operations and net profit of the Group recorded significant increases. During the Period, the Group's total revenue from operations was RMB4,612.8 million, an increase of approximately 165.1% when compared to the same period last year. Profit from operations was RMB 856.6 million, an increase of approximately 87.3% year-on-year. Profit attributable to equity holders was RMB745.8 million, an increase of 97.5% year-on-year. The board of directors has decided not to declare any interim dividend for the six months ended 30 June 2007.
Mr. He Yuhua, chairman of the Company said, "Following the Company's completion of the acquisition of the railway transportation businesses between Guangzhou and Pinshi, the assets scale, revenue from operation and service territory of the Group during the Period have been significantly expanded. The Fourth Rail Line between Guangzhou and Shenzhen, which the Company invested in and constructed, was opened in April 2007, leading to a notable increase in the transportation capacity of the Guangzhou-Shenzhen Railway. Meanwhile, with the Group seizing the opportunities from the sixth large-scale speed-up, together with the introduction of the domestically manufactured high-speed electric train sets "Concord", a further improvement of the "as-frequent-as-buses" operation scheme of Guangzhou-Shenzhen intercity passenger trains and the IC Card Ticketing System, the operating results of the Company in the first half of 2007 improved significantly."
Passenger transportation business is the most important business of the Company, representing approximately 84.6% of the Company's total revenue during the first half of 2007. During the Period, the Company's total volume of passengers dispatched was 35.008 million, an increase of approximately 92.2% year-on-year. Revenues from passenger transportation business amounted to RMB3,903.5 million, an increase of 171.8% year-on-year. Total volumes of passengers dispatched of the Guangzhou-Shenzhen trains, Hong Kong through-trains and long-distance trains amounted to 10.129 million, 1.505 million and 23.374 million respectively, realising revenues of RMB596.9 million, RMB207.1 million and RMB3,099.5 million respectively.
Total volume of passengers dispatched of long-distance passenger trains increased significantly by 323.7%, thereby becoming the driving force of total passenger revenue growth and passenger volume growth. This was attributable to the incorporation of the long-distance passenger transportation business of the Guangzhou-Pingshi Railway after the acquisition of the relevant railway transportation business. Shenzhen-to-Shanghai trains have also been designated as express trains instead of temporary trains since the sixth large-scale speed-up, and first-class air-conditioning fares were reapplied to the trains, thereby leading to a substantial increase of 464.0% on revenues of passenger transportation from long-distance trains.
For the freight transportation business, the incorporation of the freight transportation business of the Guangzhou-Pingshi Railway after the acquisition of the relevant railway transportation business has led to a significant increase in revenues generated from freight transportation and in freight tonnage. During the Period, the total freight tonnage transported amounted to 31.740 million tonnes, an increase of 125.6% year-on-year; and revenues of the freight transportation amounted to RMB650.6 million, an increase of 174.8% year-on-year.
Looking forward to the Company's development in the second half of 2007, Mr. He said, "With China's economy keeping stable growth, as well as the deepening of China's railway reform and development, it is expected that the transportation business will maintain its growth momentum in the second half of 2007. The Company will take full advantage of the opportunities arising from the acquisition of the Guangzhou-Pingshi Railway transportation business, optimising and consolidating the railway transportation resources and making the most out of the resulted economies of scale. In addition, following the commencement of operation of the Fourth Rail Line, the Company's transportation capacity will be significantly enhanced and the pressure upon the railway transportation between Guangzhou and Shenzhen will be greatly alleviated. Meanwhile, the Group will study and operate more long-distance passenger trains at the right time to expand the Group's income base."
Guangshen Railway Company Limited was established in 1996. The H shares and ADS issued by the Company were listed on The Stock Exchange of Hong Kong Limited and the New York Stock Exchange respectively in May 1996. The Company is currently the only PRC railway enterprise with its shares listed overseas. In December 2006, the Company returned to the A share market and successfully listed its shares on the Shanghai Stock Exchange. The Company holds the sole operating rights of the Guangshen Railway, one of the most modern railways in the PRC. The Company is mainly engaged in railway passenger and freight transportation businesses between Guangzhou and Shenzhen, long-distance passenger transportation services, as well as the Hong Kong Through Train passenger service in cooperation with Kowloon-Canton Railway Corporation ("KCRC") of Hong Kong. As at June 30, 2007, the Company operated 196 pairs of passenger trains in accordance with its daily train schedule, included 80 pairs of high-speed trains between Guangzhou and Shenzhen, 99 pairs of long-distance trains, 4 pairs of regular-speed trains between Guangzhou and Shenzhen and 13 pairs of Guangzhou-Hong Kong through-trains.
Enclosed: Condensed Consolidated Income Statement (unaudited)
Condensed Consolidated Income Statement (Unaudited)
For the six months ended 30 June
2007 2006
RMB'000 RMB'000
Revenue from railroad
businesses
Passenger 3,903,512 1,435,946
Freight 650,641 236,768
4,554,153 1,672,714
Revenue from other 58,636 67,042
businesses
Total revenue 4,612,789 1,739,756
Operating expenses
Railroad businesses (3,756,004) (1,231,212)
Other businesses (49,268) (73,323)
Total operating expenses (3,805,272) (1,304,535)
Other income, net 49,112 22,058
Profit from operations 856,629 457,279
Finance costs (9,700) (7,266)
Share of results of
associates after tax (1,558) (1,891)
Profit before income tax 845,371 448,122
Income tax expense (100,144) (70,414)
Profit for the year 745,227 337,708
Attributable to:
Equity holders of the
Company 745,802 377,531
Minority interests (575) 177
745,227 377,708
Earnings per share for
profit attributable to the
equity holders of the
Company during the year
- Basic and diluted RMB0.105 RMB0.087
Dividend -- --
For further information, please contact:
Mr. Guo Xiangdong / Ms. Grace Deng
Guangshen Railway Company Limited
Tel: +86-755-2558-7920 / +86-775-2558-8146
Fax: +86-755-2559-1480
Ms. Edith Lui / Ms. Denice Lee
Rikes Communications Limited
Tel: +852-2520-2201
Fax: +852-2520-2241
