Net Profit Surges 85.5% to RMB1,431 Million
-- Total revenues amounted to RMB10,509 million, an increase of 192.4%
as compared to 2006
-- Profit from operation amounted to RMB1,765 million, an increase of
82.9%
-- Profit attributable to equity holders amounted to RMB1,431 million,
an increase of 85.5%.
HONG KONG, April 23 /Xinhua-PRNewswire-FirstCall/ -- Guangshen Railway Company Limited ("Guangshen Railway" or the "Company") (HKEx: 525; SSE: 601333; ADS: GSH) today announced the audited operating results of the Company and its subsidiaries (the "Group") for the year ended December 31, 2007 (the "Year").
For the year of 2007, total revenues of the Group amounted to RMB10,509 million, representing an increase of 192.4% as compared to 2006. Profit from operation amounted to RMB1,765 million, an increase of approximately 82.9% year-on-year. Profit attributable to equity holders amounted to RMB1,431 million, an increase of 85.5% year-on-year. The board of directors of the Company recommended the payment of a final dividend of RMB0.08 per share for the year 2007 (2006: RMB0.08 per share).
Mr. He Yuhua, Chairman of the Company, said, "The Company made several crucial breakthroughs in 2007. With the sixth-round implementation of the railway speed-up project and a large-scale operation of the Company's domestically manufactured high-speed electric train sets ("CRH"), the overall efficiency and travel comfort of the Company's trains improved substantially in 2007. In addition, the completion and opening of the fourth rail line between Guangzhou and Shenzhen, as well as the Company's successful acquisition of Guangzhou -- Pingshi Railway's operating assets during the Year have substantially expanded the Company's asset size and transportation capacity. Such favorable factors contributed to the significant growth in the Company's overall operating results."
Passenger transportation business is the most important business of the Company. In 2007, the passenger delivery volume of the Company was 73.053 million, representing an increase of 103.1% as compared to 2006. Of such amount, the passenger delivery volumes of Guangzhou-Shenzhen trains, Hong Kong Through Trains and long-distance trains were 24.725 million, 3.192 million and 45.137 million respectively, representing an increase of 11.2%, a slight decrease of 0.5% and an increase of 328.8% respectively as compared to 2006. Revenues from passenger transportation amounted to RMB5.83 billion, an increase of 123.6%.
The remarkable increases in the Company's revenues and volumes of passenger transportation were not only attributable to the sixth round implementation of the railway speed-up project, as well as the large-scale operation of high-speed electric train sets, CRH, which improved the efficiency and comfort of the trains. In addition, the fact that the Xintang-Shigu section of southbound Guangzhou-Shenzhen expressway nearby has been entirely closed for renovation starting from October, 2007 has diverted part of bus passengers to train transportation, which led to a surge in passenger delivery volume on Guangzhou-Shenzhen trains. Also, the incorporation of the long-distance transportation businesses of Guangzhou-Pingshi Railway subsequent to the Company's acquisition of the railway transportation assets thereof at the beginning of the year, has resulted in significant increases of the delivery volume and revenue of long-distance trains of the Company. The passenger delivery volume of Hong Kong Through Trains decreased slightly, mainly due to the construction of the Fourth Rail Line during the beginning of the previous year, and also the diversion of Through Train passengers caused by the improvement of the operating efficiency and service quality of Guangzhou-Shenzhen trains.
During the Year, total tonnage of freight transported by the Company amounted to 71.010 million tonnes, representing a significant increase of 131.2%; revenues from freight transportation were RMB1.33 billion, an increase of 134.5%. The remarkable increases in freight volume and revenues were due to the incorporation of the freight transportation business of Guangzhou-Pingshi Railway, following the completion of the Company's acquisition of Guangzhou-Pingshi Railway.
Regarding the Company's development in 2008, Mr. He said, "While the Company's passenger volume, freight volume and revenues reported impressive growth after the acquisition of Guangzhou-Pingshi Railway, the Company will continue to press ahead and enhance its business. Apart from a continuous optimization and consolidation of the railway operating assets of Guangzhou-Shenzhen Railway and Guangzhou-Pingshi Railway, and an optimization of the "As-frequent-as-bus" operation of Guangzhou-Shenzhen intercity trains, the Company will operate more local trains according to market trends, as well as expanding long-distance passenger trains service. As for the freight business, the Company will continue to promote the marketing of this business segment, improving the deployment and organization of freight trains and operating more freight through trains, in order to elevate the Company's business to a higher level."
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, as well as the Hong Kong Through Train passenger service in cooperation with MTR Corporation Limited ("MTR") of Hong Kong. As at December 31, 2007, the Company operated 195 pairs of passenger trains, including 80 pairs of passenger trains between Guangzhou and Shenzhen, 102 pairs of long-distance passenger trains and 13 pairs of Through Trains.
Enclosed: Consolidated Income Statement (audited)
http://xprnnews.xfn.info/GSR/20080423/HKW005table.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. Denice Lee
Rikes Communications Limited
Tel: +852-2520-2201
Fax: +852-2520-2241
