Results Highlights:
Results Summary:
| For the six months ended 30 June |
||
| 2019 (HK$ Thousand) |
2018 (HK$ Thousand) |
|
| Revenue |
495,953 |
137,161 |
| Gross Profit |
178,379 |
37,298 |
| Gross Profit Margin (%) |
36% |
27% |
| Profit from operations |
83,728 |
12,339 |
| Profit for the period |
62,064 |
19,413 |
| Earnings Per Share |
2.83 |
0.92 |
HONG KONG, Aug. 28, 2019 /PRNewswire/ -- BII Railway Transportation Technology Holdings Company Limited ("BIITT" or the "Company", together with its subsidiaries, the "Group"; stock code: 1522.HK), a company specializes in the field of urban rail transit, integrating investment and financing, technology research and development, intelligent rail transport construction, operation and maintenance. The Group is pleased to announce that its interim results for the six months ended 30 June 2019 (the "period under review").
The revenue for the Group increased by 262% from approximately HK$137.2 million for the six months ended 30 June 2018 to approximately HK$496.0 million for the six months ended 30 June 2019, while the Group's gross profit increased by 378% from approximately HK$37.3 million for the six months ended 30 June 2018 to approximately HK$178.4 million for the six months ended 30 June 2019. Gross profit margin and operating profit margin both record significant increases to 36% and 16.9%, respectively. Earnings per share increased by two folds to 2.83 HK cents, as compared to 0.92 HK cents in 2018.
Intelligent railway transportation business
The Group's revenue generated from intelligent railway transportation services increased by approximately 529% from approximately HK$68.1 million for the six months ended 30 June 2018 to approximately HK$428.4 million for the six months ended 30 June 2019. The increase for the current period when compared with the corresponding period last year was mainly due to: (i) the acquisition of Huaqi Intelligent was completed in March 2019, and its operating result was consolidated into the Group, leading to a significant increase of the Group's revenue; (ii) apart from Huaqi Intelligent, certain projects which will greatly affect the revenue of the Group will be recognised during current period, including line 1 and line 2 platform screen door installation project, monitoring project of the new Airport Expressway, K0856 project of MTR Corporation Limited, ANCC project for the Zhengzhou Metro and the Smart Card Renovation Project of Beijing-Tianjin-Hebei.
During the period under review, the Group has been awarded several new projects, (i) Beijing Projects, such as the AFC equipment procurement project of Beijing railway transportation Line 12 with a bid price of approximately RMB0.11 billion, and the project on connecting new lines into the information centre system of the Beijing Railway Transportation Command Centre with a bid price of approximately RMB30 million; (ii) Ex-Beijing projects, such as the AFC procurement project of the railway transportation Line 4 of Kunming City with a bid price of approximately RMB125.24 million, the slow traffic system perfection project of the First Ring of Luyang district in Hefei City with a project sum of approximately RMB52.76 million and the on-board PIS Passenger Information System ("PIS") project for Line 5, phase 2 of Line 6, Line 7 and phase 1 of Line 8 of the Hangzhou Metro with the aggregated project amount of approximately RMB0.124 billion. The Group was also awarded various projects including the passenger information system for 350km/h standardised electric multiple units and 350km/h standardised electric multiple units with high temperature resistance; (iii) Overseas projects including the on-board PIS system project for the Line 2 and Line 7 of Mumbai railway in India with a bid price of approximately RMB62.08 million.
Infrastructure Information business
The Group's revenue from infrastructure information services decreased by approximately 2% from approximately HK$69.1 million for the six months ended 30 June 2018 to approximately HK$67.6 million for the six months ended 30 June 2019. The revenue for the six months ended 30 June 2019 decreased slightly when compared with the corresponding period of 2018, which was mainly due to the fluctuation of exchange rate.
With the year of 2019 marking China's commencement of commercial use of 5G, the civil communication business will also enter the "generation of 5G". It is expected that the transmission system of the new Airport Line invested and constructed by the Group, which equipped with 5G transmission capability, will commence service simultaneously with the railway line at the end of September 2019. Besides, the intelligent tunnel products, which was self-developed by the Group with intellectual property rights, had commenced service at the Beijing World Expo in April 2019. It is an intelligent management platform for the operation and maintenance of utility tunnel with leading technology that put into practical use in China, representing a successful step in expansion of business in the operation and maintenance of utility tunnel and the integrated surveillance segment.
Investment Income
The Group recorded an increase in investment income of approximately 5% from approximately HK$3.7 million for the six months ended 30 June 2018 to approximately HK$3.9 million for the six months ended 30 June 2019. The increase in investment income was mainly due to the increase in invoice revenue as a result from the increase in passenger flow of the joint venture Beijing Metro Co., Ltd. ("Beijing Metro").
Business Prospects
According to the survey conducted by China Rail Transit Net regarding the latest bidding and construction progress of each line, it was estimated that from 2020 to 2021, the mileage of new operation lines of city railway transportation in China would reach 2,635.93 kilometres, involving 1,604 railway stations, representing an investment amount of RMB1,782.926 billion. In the second half of 2019, the Group would firmly grasp the development opportunities of constructing city railway transportation to proactively expand the spectrum of its business coverages, and at the same time closely adhere to the new development direction of "three transformation models" of BII and actively participate in the construction of intelligent management systems including utility tunnel in Beijing, expressways and transit-oriented development in a bid to cope with the excellently selected "PPP to go public" model of BII for continuously improving its overall industrial chain in railway transportation, upgrading its business from a "market-driven" model to a "market, capital and technology-driven" model and enhancing its core competitiveness, thereby better serve the society and create value for shareholders.
Based on focusing its principal business, specialising in intelligent system services for railway transportation and consolidating its well established industry accumulation and advantages, the Group will explore the tremendous development opportunities arising from the intelligent upgrade of railway transportation, leveraging on its commitment to "Intelligent Subway" as the lead to proactively promote a series of brand new businesses, including a big data centre for railway transportation, the AFC cloud platform and internet ticketing (face + biological recognition), together with the measures for improving product lines and expanding regional businesses to achieve continuous business enhancement. By directing the city railway transportation to transform from informatisation to intelligent upgrade, the Group strives to become a leading service provider of intelligent railway transportation system in China. At the same time, the Group will firmly grasp the opportunities arising from the 5G upgrade and the implementation of intelligent city and intelligent subway to expedite the construction scale of its 5G business in full swing. With the progressive development of the Beijing Subway Airport Express Line and continuous development of 5G in new lines, these businesses will generate more economic benefits for the Group.
The Group will continue to adopt various capital operation models including mergers and acquisitions, investment and business collaborations to achieve rapid expansion of principal business. In the course of implementing industry upgrade, it can drive the enhancement and integration of the industry and create a new development model for the overall industrial chain, thereby laying a good foundation for the Group to consolidate its technological positioning and erect a flagship brand famed for intelligent railway transportation. Looking ahead, the Group will continue to deploy the five systems of intelligent railway transportation proactively and cultivate further development opportunities in intelligent operation and maintenance in a bid to gather momentum for sustainable development and create maximum benefits for shareholders.
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About BII Railway Transportation Technology Holdings Company Limited
BII Railway Transportation Technology Holdings Company Limited ("BIITT" or the "Group") is the HK-listed subsidiary of Beijing Infrastructure Investment Co., Ltd. ("BII Company") that is directly under the State-owned Assets Supervision and Administration Commission of the Peoples Government of Beijing ('SASAC'). The Group specializes in urban rail transit related businesses and divided into three segments: 1) intelligent railway transportation business； 2) infrastructure information business; 3) business development investment. The Group involves in different stages of urban rail transit development from investment, financing, construction, operation to maintenance. Riding on its vast experiences and proven capability in Beijing and Hong Kong, the Group continues to expand it businesses into other cities and provinces.