HONG KONG, Oct. 28 /Xinhua-PRNewswire-FirstCall/ -- Guangshen Railway Company Limited ("Guangshen Railway" or the "Company") (HKEx Share Code: 525; SSE Share Code: 601333; ADS Ticket Symbol: GSH) today announced the unaudited operating results of the Company and its subsidiaries (collectively, the "Group") for the nine months ended September 30, 2008 (the "Period").
During the Period, under the PRC Accounting Standards, the Group realized a consolidated revenue from operation of RMB8,692 million, representing an increase of 16.80% over the corresponding period last year. Net profit attributable to equity holders of the Company amounted to RMB1,062 million (Corresponding period of 2007: RMB1,137 million). Earnings per share was RMB0.15 (Corresponding period of 2007: RMB0.16).
Mr. He Yuhua, Chairman of the Company, said, "In the first three quarters of 2008, the Company's passenger and freight transportation overcame the negative impact caused by the snowstorms in early 2008 and fully resumed normal operation. During the Period, the Fourth Rail Line between Guangzhou and Shenzhen and the high-speed "CRH" train sets of the Company operated smoothly. The long-distance passenger trains from Guangzhou to Zhengzhou, which commenced operation in July 2008, further boosted the development of the long-distance passenger trains operation of the Company. Besides, during the peak seasons in summer holidays, Mid-autumn Festival and "1 October" Golden Week of 2008, the Company recorded satisfactory occupation rate of passenger trains. Nevertheless, net profit of the Company witnessed a slight decline year-on-year as the conversion of bank loan interests into expenses for the construction of Guangshen Fourth Rail Line resulted in an increase in finance costs of the Company, and the gradual increase of the income tax rate for the Company from 15% to 25% since 1 January 2008 also led to an increase in income tax expense compared to that of the corresponding period last year."
Looking ahead, Mr. He said, "With the embarkation of sizeable railway construction projects in the coming ten years in the PRC, coupled with the rigorous development of an one-hour-traveling-circle railway system in Guangdong Province, the Company will benefit from increasing passenger traffic and demand for freight transportation in the region over the long-run. From now on, the Company will fully leverage the capacity advantage of the Guangshen Fourth Rail Line and "CRH" trains sets, and continue to promote the "as-frequent-as-buses" model of Guangzhou-Shenzhen trains, with a view to boosting the development among cities in the Pearl River Delta region. The Company will proactively develop the long-distance passenger trains operation so as to ensure a comprehensive and solid growth of the operations 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 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, as well as the Hong Kong Through Train passenger service in cooperation with Kowloon-Canton Railway Corporation ("KCRC") of Hong Kong.
Please refer to the hyperlink below for the Consolidated Statement of Profit Prepared in Accordance with the PRC Accounting Standards (unaudited):
http://xprnnews.xfn.info/Guangshen/20081028/20083rdQresults.pdf
For further information, please contact:
Mr. Guo Xiangdong or Ms. Grace Deng
Guangshen Railway Company Limited
Tel: +86-755-2558-7920 or +86-755-2558-8146
Fax: +86-755-2559-1480
Ms. Edith Lui or Ms. Leona Zeng
Rikes Hill & Knowlton Limited
Tel: +852-2520-2201
Fax: +852-2520-2241
