Net Profit Amounted to RMB 160 million
(Hong Kong, 29 October 2012) Shenzhen Expressway Company Limited (“Shenzhen Expressway” or the “Company”) (HKEx: 00548; SSE: 600548) and its subsidiaries (collectively, the “Group”) is pleased to announce the third quarterly unaudited results of 2012 (the “Reporting Period”). In the third quarter of 2012, the Group recorded revenue of RMB 730million, of which toll revenue contributed to RMB 680million. The Group recorded net profit attributable to owners of the Company (“Net Profit”) of RMB 160million. From January to September 2012, the Group recorded revenue of RMB 2,290million, of which toll revenue was RMB 2,060million. The Group recorded Net Profit of RMB 580million, earnings per share was RMB 0.265.
From January to September 2012, the majority of the toll roads operated and invested by the Group recorded either a slower YOY growth or a decrease in traffic volumes and toll revenues, mainly owing to the slowdown in the growth of macro-economy, the implementation of industry policies and the changes in the traffic distribution in the road network. Among these, average daily toll revenue of Meiguan Expressway, Jihe Expressway, Shuiguan Extension, Jiangzhong Project and GZ W2 Expressway recorded negative growth rates in different degrees between 2% and 22%. Meanwhile, average daily toll revenues of Yanpai Expressway, Qinglian Expressway and Changsha Ring Road increased by 17%, 21% and 40% respectively YOY, these mainly because of the positive stimulation effect brought by the changes in road network. In addition, benefiting from the implementation of the toll-by-weight policy since the fourth quarter of 2011, Yangmao Expressway and Guangwu Project recorded an increase of more than 10% in average daily toll revenue from January to September 2012.
Since the changes in accounting estimates on Provisions for Maintenance/resurfacing reduced the cost of services of the Group in the third quarter of 2011, this figure has a large YOY change in the third quarter of 2012. Without regard to the effect of Provisions for Maintenance/resurfacing, cost of services of the Group from January to September 2012 amounted to about RMB 1,020million, which was essentially flat that of last year. From January to September 2012, as a result of the YOY increase in average borrowing scale, higher capital cost and the change in RMB exchange rate, the Group’s financial expenses increased by 21.50% YOY to RMB 470million, which mainly reflected in the increase of interest expenses and decrease of exchange gain.
Looking ahead, the pressure caused by the toll highway industry policy will continue to exist, and the macroeconomic environment is still complex. The Management will continue to closely monitor and analyze the trends of traffic volumes and toll revenues, carry out various marketing methods, strengthen cost controls and capital management, and strive to improve the Group’s operating results so as to achieve better returns for shareholders.
