Guangshen Railway Announces 2011 Annual Results

HONG KONG, March 28, 2012 /PRNewswire-Asia/ -- Guangshen Railway Company Limited ("Guangshen Railway" or the "Company") (HKEx Share Code: 525; SSE Share Code: 601333; American Depositary Shares ("ADS") Ticker Symbol: GSH) today announced its audited operating results for the year ended December 31, 2011 (the "Year") of the Company and its subsidiaries (the "Group").

In 2011, under International Financial Reporting Standards (IFRS), operating revenues of the Company amounted to RMB14,691 million, representing an increase of 8.95% over the previous year. Profit attributable to equity holders amounted to RMB1,804 million, an increase of 21.40% year-on-year. Basic earnings per share amounted to RMB0.25, an increase of 19.05% year-on-year. The board of directors of the Company recommended the payment of a final cash dividend of RMB0.10 per share for 2011 (2010: RMB0.09 per share), accounting for 40.00% of the basic earnings per share of the Year.

Guangshen Railway said, "In 2011, facing the complex and changing operating environment, the Company seized opportunities in the steadily and fast growing PRC economy, as well as the overall robust demand for passenger and freight railway transportation. In adhering to its operating objectives, the Company made full use of the advantageous opportunity of the 26th Universiade held in Shenzhen to reinforce its marketing efforts, adjust transportation arrangements in a timely manner, enhance its transportation resources, and control costs and expenses, to achieve sound progress in all business segments and remarkable improvement in profitability, setting new records in its operating results."

During the Year, the Company recorded passenger delivery volume of 90.8279 million persons, representing a year-on-year increase of 6.95%. Revenue from passenger transportation rose 8.80% year-on-year to RMB8,027 million. Of this amount, the passenger delivery volumes of Guangzhou-Shenzhen trains, long-distance trains and Hong Kong Through Trains amounted to 39.0462, 48.1184 and 3.6633 million persons, respectively, representing year-on-year increases of 5.68%, 7.21% and 18.42%, respectively. The three operations realised revenues of RMB2,607 million, RMB4,959 million and RMB461 million, respectively, representing year-on-year increases of 10.39%, 7.75% and 11.44%, respectively.

The increases in passenger delivery volume and revenue of Guangzhou-Shenzhen inter-city trains were mainly due to the sustained steady growth of the PRC economy and the success of the 26th Universiade in Shenzhen, as well as the fact that passengers tend to take the inter-city trains given the increasing costs of road transportation. In addition, the Company has increased the number of runs of temporary trains during the peak seasons, leading to a year-on-year increase in the transportation capacity of the trains. Meanwhile, since 18 June 2010, fares for the inter-city trains have been raised by RMB5 per ticket, bringing a further increase in revenue.

In respect of long-distance trains, since the Railway Department continued to enhance and adjust the organization of the country's transportation network, the number of trains departing from stations with the Company's railway tracks has increased year-on-year. In addition, the special World Expo Trains between Shenzhen and Shanghai, organized and operated by the Company in May 2010 for the opening of the Shanghai World Expo, were transformed into diagramed long-distance trains after the closing of the Expo starting from January 11, 2011. The success of the 26th Universiade in Shenzhen also benefited the growth of long-distance trains.

In respect of Hong Kong Through Trains, against the background of the steady and rapid growth of the PRC economy with sustained inflation in commodity prices and moderate appreciation of the RMB, the Year witnessed an increase in passenger flow from the mainland to Hong Kong and Macau for travel and shopping. Furthermore, benefiting from the continued relaxation in the individual visitor policies for Hong Kong and Macau, the number of group passengers on the Beijing (Shanghai)-Kowloon Through Trains increased significantly, leading to the increases in passenger volume and revenue of Hong Kong Through Trains.

During the Year, the tonnage of freight transported by the Company (including outbound freight and inbound freight) amounted to 68,702,800 tonnes, representing an increase of 1.14% year-on-year and generating revenue of RMB 1,387 million, an increase of 5.43% year-on-year. The increases in revenue from freight transportation and freight volume were mainly due to the continued increase in domestic demand for electricity and petroleum, which led to an increase in the amount of goods such as coal, coke and petroleum finished goods delivered by the Company. In addition, by conducting market research, the Company strengthened its marketing efforts for freight transportation, further enhanced the quality of its service and the efficiency of its transportation while at the same time offering preferencial prices to key customers and important transportation categories. From April 2011, the national basic freight transportation rate increased by approximately RMB0.20 per tonne, which also stimulated the increase in revenue.

Looking forward to its development in 2012, the Company said, "In 2012, the PRC remains in a phase of crucial strategic opportunity for its development. The PRC economy will retain its steady and relatively fast growth momentum, and as the overall social atmosphere remains stable, the scale of the rail network and transportation capacity will achieve continuous growth and the volume of passenger and freight transportation, as well as industrial competitiveness, will achieve constant enhancement. The Company will capitalize on these opportunities by reinforcing its safety infrastruction and management system; further enhancing its corporate governance, proactively exploring the passenger and freight transportation market; boost support for a diversified economy; strive to new business growth points; execute stringent cost controls in order to accelerate the progress of the Company's safety, operation, construction and stability tasks."

2011 Annual Results Main Accounting Data

http://www.prnasia.com/sa/attachment/2012/03/20120328000707807549.pdf

About Guangshen Railway Company Limited

Guangshen Railway Company Limited was established in March 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 in May 1996. In December 2006, the Company returned to the A share market and successfully listed its shares on the Shanghai Stock Exchange. The Company is currently the only PRC railway enterprise with its shares listed on the Shanghai, Hong Kong and New York stock exchanges. The Company is engaged in the railway passenger business between Shenzhen, Guangzhou and Pingshi, providing Guangzhou-Shenzhen inter-city train service, long-distance passenger transportation service, freight transportation service, and the Hong Kong Through Train passenger service in cooperation with MTR Corporation in Hong Kong, as well as entrustment transportation service for other domestic railway companies. As at December 31, 2011, the Company operated 231 pairs of passenger trains in accordance with its daily train schedules, including 110 pairs of Guangzhou-Shenzhen trains (includes 19 pairs of spare trains), 13 pairs of Hong Kong Through Trains (Canton-Kowloon Through Train: 11 pairs, Zhaoqing-Kowloon Through Train: 1 pair and Beijing (Shanghai)-Kowloon Trough Train: 1 pair), and 108 pairs of long-distance trains.

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