Net Profit Amounts to RMB947 million for the First Three Quarters
(
27
Oct 201
6
, Hong Kong)
Shenzhen Expressway Company Limited
(“Shenzhen Expressway” or the “Company”) (Stock Code: 00548.HK) and its subsidiaries (collectively, the “Group”) today
is pleased to announce that the third quarterly results (unaudited) of the Group for the three months ended 30 September 2016 (the “Reporting Period”). The Third Quarterly Report (“Report”) indicates that net profit attributed to owners of the Group recorded RMB332 million. The Group recorded net profit of RMB947 million and earnings per share of RMB0.434 from January to September of 2016.
Toll revenue is the main source of the Group’s revenue.
From January to September 2016,
the
Group
recorded a toll revenue of
RMB2.744 billion, in which since the toll adjustment proposals of the Three Projects was implemented in February 2016, the traffic volumes in toll-free section had increased, driving the growth of traffic volumes of the connected Jihe Expressway and Shuiguan Expressway.
Guangle Expressway and Erguang Expressway continued to result in certain diversions on Qinglian Expressway. However, Qinglian
Company
actively carried out promotion of routes and implementation of a multi-level marketing strategy, which produced positive effect
,
t
he impact of diversion became stable. The expansion of Guangqing Expressway was completed for operation at the end of September 2016. The improvement of road networks will help enhance the traffic efficiency and quality of the service of the whole passage, further improving the operational performance of Qinglian Expressway.
The consolidation of Consulting Company and Qinglong Company into the
Group
’s financial statements since 1 July 2015 and 30 October 2015 respectively, which brought certain impact on the
Group
’s revenue
and cost
from January to September 2016. In the first three quarters of 2016,
the
Group’s revenue
and cost of services recorded YOY increases of 30.41% and
46.78%
, respectively.
Save for the effect of changes in scope of consolidation, the revenue and the cost of services
respectively
recorded YOY increases of 5.54% and
8.40%, of which the increase of the cost of services was mainly due to the recognition of the cost of construction management service of Section A of Outer Ring and the increase in depreciation and amortisation costs. The financial expenses represented a YOY increase of 60.84%, and mainly due to
the amount of interest-bearing debts of the
Group
recorded a YOY increase
.
To establish domestic and overseas financing platform, expand financing channel, during the Reporting Period, the Company completed the issue of
5-year USD300 million bonds at a coupon rate of 2.875% with a value date in the early of July 2016.
Meanwhile, the
Company
continues to promote
the Restricted A Share Incentive Scheme. The Restricted A Share Incentive Scheme (the “Scheme”) were passed by the
Company
Board at the end of September, and was
submitted to
a general meeting to reconsider the resolutions to the Scheme on 23 November. The
Company
considers that the implementation of the Scheme will further establish and improve long-term corporate incentive systems of the
Company
, attract and retain talent, fully mobilise the motivation of senior management and key technicians of the Company, effectively tying the interests of the Shareholders, the
Company
and the management of the
Company
and enabling the respective parties to become aware of the
Company
’s long-term development, and to promote the realisation of the development strategies of the
Company
.
In the future, the
Group
will insist on “
city and transportation infrastructure construction service provider” as the core business direction
, actively expand the outstanding roads in peripheral regions, consolidate and improve core businesses. Meanwhile, the Group will promote the
environmental protection
a
s the core direction of new industry, so as to
enable the
Company
to achieve the sustainable development.
