Freight Tonnages Decline amid Economic Slowdown, While Passenger Revenues Increase Steadily
HONG KONG, Aug. 26 /PRNewswire-Asia/ --
-- Operating revenues increased by 4.23% year-on-year to RMB5,858 million.
-- Revenue from passenger transportation rose 7.68% year-on-year to
RMB3,512 million.
-- Profit attributable to equity holders amounted to RMB595 million (2008
interim: RMB674 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 six months ended June 30, 2009 (the "Period").
During the Period, operating revenues of the Company amounted to RMB5,858 million, representing an increase of 4.23% over the corresponding period last year. Profit from operations amounted to RMB867 million (2008 interim: RMB924 million). Profit attributable to equity holders amounted to RMB595 million (2008 interim: RMB674 million). The board of directors of the Company does not recommend the payment of any interim dividend for 2009.
Mr. He Yuhua, Chairman of the Company said, "In the first half of 2009, due to a decrease in demand for railway passenger and freight transportation services caused by the global financial crisis and the H1N1 swine flu, coupled with factors including an increase in operating costs resulting from the expansion of the Company's operating scale and an increase in finance costs, the Company was faced with tough challenges in its operation and management. Faced with various difficulties, the Company has strengthened its sales and marketing efforts to increase traffic and revenues, consolidated and enhanced transportation resources to improve transportation capacity and efficiency, and actively controlled costs and expenses, thereby achieving a growth in transportation revenues."
During the Period, passenger delivery volume of the Company was 41,316,000, a year-on-year increase of 1.10%. Revenue from passenger transportation rose 7.68% year-on-year to RMB3,512 million. Of such amount, the passenger delivery volumes of Guangzhou-Shenzhen trains, Through Trains and long-distance trains amounted to 16,172,000, 1,599,300 and 23,544,800 respectively, representing year-on-year increases of 3.90% and 2.42% and a decrease of 0.82% respectively; and realizing revenues of RMB990 million, RMB181 million and RMB2,341 million respectively, representing an increase of 2.86%, a decrease of 5.85% and an increase of 11.11% year-on-year respectively.
Both passenger delivery volume and revenue of Guangzhou-Shenzhen trains posted growths mainly attributable to a considerable increase in passenger delivery volume in January and February as compared to the corresponding period last year, owing to this year's absence of natural disasters such as heavy rains, snowstorms and freezing weather during the Lunar New Year. In addition, Guangzhou-Shenzhen trains began to stop at each intermediary station from May 1, thereby stimulating the growth of passenger traffic at intermediary stations. Meanwhile, the introduction of the Guangshen Railway Peony Credit Card and the Guangshen Railway Fast Pass Card has facilitated traveling and attracted more passengers.
In respect of long-distance trains, passenger delivery volume did not grow along with the increase in number of operated trains or the increase in transportation capacity, mainly due to the global financial crisis and the H1N1 swine flu. However, revenue from long-distance trains recorded a considerable increase, mainly owing to the reason that the Company has begun to undertake the operation of T97/8 trains from Beijing West to Kowloon (Guangzhou East) effective from January 1, 2009, thereby leading to a considerable increase in the relevant revenue.
As regards Hong Kong Through Trains, due to the significant increase in the number of mainland passengers visiting Hong Kong, Beijing-Kowloon trains, Shanghai-Kowloon trains and Zhaoqing-Kowloon trains contributed to an increase in passenger delivery volume of Through Trains. However, the passenger traffic of Canton-Kowlon Through Trains, which had a higher average passenger revenue, recorded a substantial decrease under the impact of the global financial crisis and the H1N1 swine flu, thereby leading to a decline in Through Train revenues.
During the Period, tonnage of freight transported by the Company amounted to 26.5406 million tonnes (2008 interim: 34.5508 million tonnes). Revenues from freight transportation reached RMB506 million (2008 interim: RMB636 million). The decreases in the Company's tonnage of freight and revenues from freight transportation were mainly due to the considerable declines recorded in both the Company's outbound and inbound freight tonnages which were in turn caused by the global economic crisis and the slowdown of China's macro-economy.
Looking forward to the Company's development in the second half of 2009, Mr. He said, "Under the government's proactive fiscal policies and relaxed monetary policies, China's macro-economy will continue to show more significant recovery, and the demand for railway passenger and freight transportation services will rebound. Under the backdrop of a favorable environment, the Company will standardize the operation and management, strive to develop its core business of railway transportation, continue its efforts in sales and marketing on both the passenger and freight transportation services, and stringently control costs and operating expenses, with a view to creating good operating results."
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 Shenzhen, Guangzhou and Pingshi, long-distance passenger transportation services, and the Hong Kong Through Train passenger service in cooperation with MTR Corporation in Hong Kong. As at June 30, 2009, the Company operated 228.5 pairs of passenger trains in accordance with its daily train schedules, including 100 pairs of Guangzhou-Shenzhen trains, 115.5 pairs of long-distance trains, and 13 pairs of Guangzhou-Hong Kong through-trains.
For Condensed Consolidated Interim Comprehensive Income Statement (unaudited), please visit:
http://www.prnasia.com/sa/attachment/2009/08/20090826864249.pdf
For further information, please contact:
Mr. Guo Xiangdong / Ms. Grace Deng
Guangshen Railway Company Limited
Tel: +86-755-2558-7920 / +86-755-2558-8146
Fax: +86-755-2559-1480
Ms. Edith Lui / Ms. Leona Zeng
Rikes Hill & Knowlton Limited
Tel: +852-2520-2201
Fax: +852-2520-2241
