Net Profit Rises 6.47% to RMB622 million
HONG KONG, Aug. 24 /PRNewswire-Asia/ -- -- Operating revenues amounted to RMB6,310 million, representing a year-on-year increase of 7.71%. -- Revenues from passenger transportation rose 6.35% year-on-year to RMB3,735 million. -- Revenues from freight transportation rose 21.35% year-on-year to RMB615 million. -- Consolidated profit attributable to equity holders amounted to RMB622 million, representing a year-on-year increase of 6.47%. 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, 2010 (the "Period"). During the Period, operating revenues of the Company amounted to RMB6,310 million, representing an increase of 7.71% over the corresponding period last year. Profit from operations rose 6.61% year-on-year to RMB909 million. Consolidated profit attributable to equity holders amounted to RMB622 million, representing a year-on-year increase of 6.47%. The board of directors of the Company does not recommend the payment of any interim dividend for 2010. Mr. Xu Xiaoming, Chairman of the Company said, "In the first half of 2010, owing to a continued improvement in the global economy, a significant recovery of China's macro-economy, a gradual release of freight transportation capacity on the Wuhan-Guangzhou section of Beijing-Guangzhou Railway and the opening of Shanghai Expo, the demand for passenger and freight transportation within the Company's service territory picked up steadily. Faced with a favorable operating environment, the Company continuously stepped up its marketing efforts, timely adjusted the organization of transportation, optimized transportation resources, and actively controlled costs and expenses, thereby achieving safety and stability in its transportation and production and steady increases in transportation revenues." During the Period, passenger delivery volume of the Company was 42,822,200, a year-on-year increase of 3.65%. Revenue from passenger transportation rose 6.35% year-on-year to RMB3,735 million. Of such amount, the passenger delivery volumes of Guangzhou-Shenzhen inter-city trains, Hong Kong Through Trains and long-distance trains amounted to 18,110,100, 1,490,200 and 23,221,900 respectively, representing year-on-year increases of 11.98% and 10.22% and a decrease of 2.40% respectively, thereby realizing revenues of RMB1,116 million, RMB195 million and RMB2,424 million respectively, representing year-on-year increases of 12.78%, 7.51% and 3.54% respectively. Both passenger delivery volume and revenue of Guangzhou-Shenzhen inter-city trains increased, mainly attributable to an increase in the volume of business and tourist passengers travelling between the inland and the Pearl River Delta region as a result of the recovery of China's macro-economy, especially the regional economies of Guangdong, Hong Kong and Macau. In addition, Guangzhou-Shenzhen inter-city trains continued to adopt the stop-at-all-stations operating model which has been in use since 1 May 2009, thereby boosting passenger volume. In respect of long-distance trains, the launching and operating of Wuhan-Guangzhou high-speed railway resulted in the cancellation of part of the long-distance trains which used to run between the Wuhan-Guangzhou section, thereby leading to a decrease in passenger delivery volume of long-distance trains. Nevertheless, the Company's launching of long-distance trains for Guangzhou-Tongren and Guangzhou-Xinyang successively, as well as the Shenzhen-Shanghai Expo special trains, has led to an increase in revenue of long-distance trains. In respect of Hong Kong Through Trains, both passenger delivery volume and revenue increased, mainly attributable to an increase in the volume of business and tourist passengers travelling between the inland and the Pearl River Delta region. The opening of Shanghai Expo has also enhanced the growth on passenger delivery volume. During the Period, volume of freight transported by the Company rose 21.85% year-on-year to 32,340,000 tonnes. Revenues from freight transportation increased 21.35% year-on-year to RMB615 million. The Company's volume of and revenues from freight transportation registered year-on-year increases mainly due to a significant rebound of the railway freight transportation business resulting from an improvement of the global economy and a recovery of China's macro-economy. In addition, the Company fully captured the favorable opportunity of the release of freight transportation capacity on the Wuhan-Guangzhou section of Beijing-Guangzhou Railway, and actively strengthened the marketing of freight transportation and the organization of its loading/unloading capacity, thereby achieving good performance as a result. From 13 December 2009, the nationwide basic freight transportation price was raised by RMB 0.7 cent per tonne kilometer, which has also contributed to the increase in freight transportation revenue. Looking forward to the Company's development in the second half of 2010, Mr. Xu said, "The reducing impact of the global financial crisis upon the real economy, the further recovery of China's macro-economy, and the opening of Shanghai Expo and the Guangzhou Asia Games will have positive impacts on the Company's passenger and freight transportation businesses. The Company will capitalize on market opportunities, strive to develop its core business of railway transportation, actively develop new growth points on passenger and freight transportation businesses, try to operate more freight through trains, increase revenues and control expenses, with a view to enhancing the harmonious development of the Company." 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 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 Canton-Kowloon Through Train passenger transportation service in cooperation with MTR Corporation Limited in Hong Kong. As at June 30, 2010, the Company operated 215 pairs of passenger trains in accordance with its daily train schedules, including 100 pairs of Guangzhou-Shenzhen inter-city trains, 102 pairs of long-distance trains, and 13 pairs of Canton-Kowloon through-trains. Enclosed: Condensed Consolidated Interim Comprehensive Income Statement (unaudited) http://www.prnasia.com/sa/attachment/2010/08/20100824229402.pdf
