Net Profit Amounted to RMB 172 million
Shenzhen Expressway Company Limited (“Shenzhen Expressway” or the “Company”) (HKEx: 00548; SSE: 600548) and its subsidiaries (collectively, the “Group”) is pleased to announce the first quarterly results of the Group for the three months ended 31 March 2013 (the “Reporting Period”). In the first quarter of 2013, the Group recorded revenue of RMB 738million, of which toll revenue of 675million was recorded. The Group recorded net profit attributable to owners of the Company (“Net Profit”) of RMB 172million with earnings per share of RMB0.079.
During the reporting period, the overall traffic volume of the 16 highway projects operated and invested by the Group maintained a relatively strong momentum of growth. More than half of the projects recorded a double-digit growth. However, the implementation of industry policies and changes in road networks caused various degrees of effects on the performance of the toll revenues from all projects. Nevertheless, there are still 6 projects maintained a YOY double-digit growth in average daily toll revenue. Of which, benefit ing from some sections of Nanping (Phase II) opening to traffic and the marketing campaign which drove up the traffic volume , Nanguang Expressway recorded a YOY increase of 23.4% in the average daily toll revenue. The continuous improvement of the connected road networks also has positive effect on the growth of traffic volume in Qinglian Expressway, which recorded a YOY increase of 17.6% in the average daily toll revenue.
During the Reporting Period, the Group recorded a net profit of RMB 172million, representing a YOY decrease of 66million and decreased by 27.9%. This was mainly caused from the recognition of profit (before income tax) from entrusted construction management services of Nanping (Phase I) of RMB 59million by the Group in the first quarter of 201 2 based on the government’s audit results, which caused the profit from entrusted construction management services declined significantly in the R eporting P eriod. Moreover, a slightly YOY decrease of the profits from the toll highways operated by the Group as a result of the implementation of such policies as Standardisation Scheme and Holiday Scheme.
Management team asserts that , during recent years, the external operating environment of the toll highway industry is undergoing major transitions and changes, which will create pressure and challenge for the operations and management of the Company. T he Group will continue to adhere to the philosophy of sound operation, continue to monitor t he changes in external environment, adopted proactive management and marketing strategies for the continuous improvement of operational performance. Moreover, the Group will continue to explore and attempt to enter into new types of business, try various business mix in order to diversify the industry risks amid the changes of operating environment, continue to look for opportunities and directions with an open-minded attitude, in favor of the Group’s long-term development.
Appendix I: 201 3 First Quarterly Results Highlights
|
（ Unit: RMB million ） |
1Q201 3 |
1Q201 2 |
Change |
|
Revenue |
738 |
835 |
-11.57% |
|
Incl : Toll revenue |
675 |
697 |
-3.07% |
|
Net profit attributable to owners of the Company |
172 |
238 |
-27.89% |
|
Earnings per share (RMB) |
0.079 |
0.109 |
-27.89% |
|
Return on net assets |
1.79% |
2.56% |
de creases 0. 77 percentage point |
Appendix II: Operating Statistics of Each Toll Highway during the Reporting Period
|
Toll highway |
Percentage of interests held by the Group |
Percentage
|
Average daily |
Average daily |
||
|
Jan ~ Mar |
YOY |
Jan ~ Mar |
YOY |
|||
|
Shenzhen region: |
||||||
|
Meiguan Expressway |
100% |
100% |
120 |
5.5% |
747 |
-15.3% |
|
Jihe East |
100% |
100% |
129 |
7 . 7% |
1,141 |
-14.9% |
|
Jihe West |
100% |
100% |
107 |
13.0% |
927 |
-19.9% |
|
Yanba Expressway |
100% |
100% |
25 |
6.7% |
369 |
13.6% |
|
Yanpai Expressway |
100% |
100% |
40 |
14.6% |
439 |
-4.8% |
|
Nanguang Expressway |
100% |
100% |
62 |
19.9% |
657 |
23.4% |
|
Shuiguan Expressway |
40% |
－ |
137 |
13.7% |
1,159 |
11.8% |
|
Shuiguan Extension |
40% |
－ |
31 |
18.5% |
146 |
-7.3% |
|
Other regions in Guangdong Province: |
||||||
|
Qinglian Expressway |
76.37% |
100% |
30 |
11.5% |
2,109 |
17.6% |
|
Yangmao Expressway |
25% |
－ |
34 |
11.7 % |
1,576 |
8.5% |
|
Guangwu Project |
30% |
－ |
28 |
-5.4% |
731 |
-4.7% |
|
Jiangzhong Project |
25% |
－ |
84 |
-7.6% |
895 |
-7.8% |
|
GZ W2 Expressway |
25% |
－ |
37 |
12.6% |
740 |
3.9% |
|
Other provinces in the PRC: |
||||||
|
Wuhuang Expressway |
55% |
100% |
39 |
-5.0% |
1,116 |
-3.7% |
|
Changsha Ring Road |
51% |
－ |
14 |
7.5% |
124 |
20.5% |
|
Nanjing Third Bridge |
25% |
－ |
32 |
13.6% |
1,105 |
21.3% |
