Achieve Record High Results Performance with Strong and Innovative Operations
Profit Attributable to Shareholders Increases by 36% to HK$1,745 Million
HONG KONG, March 30, 2012 /PRNewswire-Asia/ --
Financial Highlights:
Shenzhen International Holdings Limited ("Shenzhen International" or the "Company") (HKEx: 00152) announced the audited operating results of the Company and its subsidiaries, jointly controlled entities and associates (collectively the "Group") for the twelve months ended 31 December 2011 (the "Year").
In recent years, the Group has maintained its momentum in performance growth by expanding the scale of its business and actively venturing into new business. The Group has achieved satisfactory results for three consecutive years in 2011, with revenue and profit of core business achieving record high. The Group recorded a revenue (excluding construction service revenue from toll roads) of HK$4,945 million in 2011, representing a 18% year-on-year growth. Profit attributable to shareholders increased by 36% year-on-year to HK$1,745 million, of which profit from core business grew by 62% year-on-year to HK$1,482 million. Basic earnings per share amounted to HK10.66 cents (2010: HK9.03 cents), increased by 18% over 2010.
Mr. Guo Yuan, Chairman of Shenzhen International, said, "The Group's Twelfth Five Year Development Strategy was officially and fully implemented in 2011, and the focus of logistic infrastructure being the core business remains unchanged. With clear strategic planning and the direction of its development set for the next five years, a clear direction and objectives for the various business areas are ensured and set out. This will benefit the Group in its overall planning and the optimisation of overall resource allocation, improving risk resilience and adaptability, and providing guidance and support for future sustainable development."
Revenue and profit attributable to shareholders from the logistic business of the Group surged 63% and 56% to HK$807 million and HK$120 million respectively during the Year (2010: HK$495 million and HK$77.05 million respectively). The significant growth of the logistic business was mainly attributable to the successive openings and improved operation performance of new logistic centres; as well as economies of scale became apparent benefited from the expanded operating scale. In addition, through enhancing operating efficiency and controlling operating expenses, the long-term value and competitive edge of the Group's logistic business are further enhanced, and considerable growth was recorded in the overall profit of the logistic business in 2011.
Toll revenue and profit before finance costs and tax of toll road business amounted to approximately HK$4,138 million and HK$2,492 million respectively, representing increases of 12% and 20% respectively over the previous year (2010: HK$3,707 million and HK$2,072 million respectively). Profit attributable to shareholders amounted to HK$913 million, representing an increase of 16% over the previous year (2010: HK$786 million). The stable growth in Chinese economy, the increase in the ownership of small-displacement vehicles, together with the completion of conversion works on existing roads and opening of extension section, all these factors contributed to an increase in toll revenue.
Since 19 April 2010, Shenzhen Airlines became an associate in which the Group holds a 25% equity interest. During the Year, Shenzhen Airlines contributed a profit of HK$424 million (2010: HK$143 million) to the Group, a remarkable increase in approximately double of the profit contribution in 2010. Following the completion of the acquisition of an additional 24% equity interest on 4 January 2012, the Group's shareholding in Shenzhen Airlines increased to 49%.
During the Year, the Group disposed of approximately 14.62 million A shares of CSG at an average selling price of RMB20.85 (HK$25.18) per share and realised a non-recurring gain after tax of approximately HK$263 million.
Looking forward, Mr. Guo said, "The Group will continue to increase its investment and explore in logistic sector and strive to turn the logistic business to become the main driver of the Group's future growth. As the toll road business has become mature, the Group will focus on developing the newly-completed projects so as to bring in relatively stable investment returns and adequate cash flow. Looking towards 2012, the external environment remains challenging, the Group will continue to focus on developing its core business and improving the management standard so as to further enhance the overall strengths, and maintain stable and sustainable business growth, with an aim to further maximize returns and create value for our shareholders."
