Net Profit for January to September Amounts to RMB 707 M illion
Shenzhen Expressway Company Limited (“Shenzhen Expressway” or the “Company”) (HKEx: 0 0 548; SSE: 600548) announced the third quarterly unaudited results of the Company and its subsidiaries (collectively, the “Group”) for the three months between July and September 201 1 (the “ Reporting Period”). During the Reporting Period , the Group realised a revenue of RMB 732 million, representing a slight increase of 0.41 % year-on-year. Of such revenue, toll revenue amounted to RMB 696 million, a decrea se of 1.30% year-on-year. Net profit attributable to owners o f the Company amounted to RMB 355 million, an increase of 60.88% year-on-year.
During January to September 201 1 , the Group realised a revenue of RMB 2 , 115 million, representing an increase of 5.21% year-on-year. Of such revenue, toll revenue amounted to RMB 2 , 017 million, an increase of 3.90% year-on-year. Net profit attributable to owners o f the Company amounted to RMB 707 million, an increase of 21.94% year-on-year.
During the Reporting Period, average daily toll revenues generated from the Group’s roads in the Shenzhen region, namely
Yanba
Expressway,
Yanpai
Expressway
and
Nanguang Expressway
increased
by
1.2%
,
6.8% and 3.1% respectively. Average daily toll revenues generated from other
projects decreased to different
extent
s, mainly attributable to the
changes in the traffic distribution
and composition with
in the road network
s and a
slowdown in growth of
the
macro-economy. In addition, the road surface maintenance
works
implemented
o
n the South Section of Meiguan Expressway
, as well as the
temporary traffic control and
re-routing
measures
carried out
by
Benefitting from
stimulation effect
s
caused by
an
improvement of the road networks and booming economic activities in
nearby
areas, the overall performance
s
of Qinglian Expressway, Guangwu Project, Yangmao Expressway, Jiangzhong Project and GZ W2 Expressway
in othe
r regions in
During January to September 2011, toll revenue derived from major toll highway s operated and invested by the Group recorded a slowdown in growth in general , while toll revenue derived from some projects decrease d to a significant extent. On the other hand, before including the impact of changes in accounting estimates, cost of services for toll highways increase d relatively much more year-on-year , which was mainly due to increase s in employee expenses and road maintenance expenses, particularly due to the fact that the Group had carried out maintenance and improvement works on various highways in Shenzhen such as Meiguan Expressway (which had resulted in an increase in cost of services of approximately RMB132 million for the Reporting Period ). However, based on the previous continuous research and investigation on the road maintenance plan, the Company adjusted and improved the road maintenance plan and its implementation scheme during the Reporting Period, thereby leading to corresponding adjustments of th e accounting estimates on provisions for road maintenance/resurfacing obligations . This has resulted in an increase in net profit of RMB291 million during the Reporting P eriod and for the period of January to September 2011 .
During the Reporting Period, various businesses of the Company proceeded smoothly. As at the end of the Reporting Period, approximately 90% of the land requisition, demolition and relocation works and all the biddings for road surface works for the reconstruction and expansion of the North Section of Meiguan Expressway have been completed. The project is expected to be completed in early 2013. At the beginning of August, the Company carried out the public issue of five-year corporate bonds in an amount of RMB1.5 billion , in order to reduce financing risks and enhance a stable development of the Group . On 12 August, the Company and the Guizhou Longli County Government entered into an a greement, which will involve the construction of phase I of Guilong Road and the development of peripheral land s, with a view to further expanding the business portfolio and profit base of the Company. In addition, on 27 October, the Group entered into an agreement with China Communications Construction Company Second Highway Engineering Co.,6686体育官网网页版 to establish a project company to undertake the aforesaid project, with a view to reducing the overall capital needs and diversifying investment risks in the aforesaid project.
Looking ahead, Chairman Mr . Yang said, “The Group will continue to pay attention to the trends of the macro-economy. It will enhance its project management expertise, strengthen cost controls and capital management, and striv e to improve its operating results so as to achieve better returns for shareholders . ”
Appendix I:
2011 Third Quarterly Highlights
|
(Unit: RMB million) |
The third quarter
of 2011 |
The third quarter
of 2010 |
Change |
|
Revenue |
732 |
729 |
+0.41% |
|
Of which: Toll revenue |
696 |
705 |
-1.30% |
|
Net p
rofit attributable to owners of the Company
|
355 |
220 |
+60.88% |
|
Earnings per share (RMB) |
0.163 |
0.101 |
+60.88% |
|
Return on equity (
%
) |
4.01
% |
2.63%
|
In
creased by
1.38
percentage
point
s |
Appendix II:
Basic Operating Statistics of Various Toll Highway s
|
Toll highway
|
Percentage of interests held by the Group |
Percentage of revenue consolidated |
Average daily
in thousands)
|
Average daily
|
Average daily
in thousands)
|
Average daily
|
||||
|
J
ul
~
Sep
2011
|
Compared
to
|
J
ul
~
Sep
2011
|
Compared
to
|
J
an~
Sep
2011
|
Compared
to
|
J
an ~
Sep
2011
|
Compared
to
|
|||
|
Shenzhen region: |
||||||||||
|
Meiguan Expressway
|
100%
|
100%
|
115 |
-7.4% |
917 |
-9.3% |
118 |
3.3% |
938 |
0.7% |
|
Jihe East
|
100%
|
100%
|
123 |
2.7% |
1,460 |
-2.4% |
116 |
5.0% |
1,414 |
0.1% |
|
Jihe West
|
100%
|
100%
|
103 |
3.6% |
1,267 |
-0.2% |
99 |
11.3% |
1,229 |
6.8% |
|
Yanba Expressway
|
100%
|
100%
|
32 |
6.6% |
412 |
1.2% |
28 |
19.1% |
377 |
15.6% |
|
Yanpai Expressway
|
100%
|
100%
|
42 |
-6.9% |
533 |
6.8% |
39 |
-2.7% |
452 |
3.2% |
|
Nanguang Expressway
|
100%
|
100%
|
58 |
2.3% |
606 |
3.1% |
56 |
15.6% |
588 |
19.7% |
|
Shuiguan Expressway
|
40%
|
－
|
129 |
-11.5% |
1,142 |
-14.3% |
123 |
-8.6% |
1,115 |
-9.0% |
|
Shuiguan Extension
|
40%
|
－
|
29 |
-34.0% |
182 |
-34.2% |
33 |
-17.4% |
202 |
-18.0% |
|
Other regions in
|
||||||||||
|
Qinglian
Expressway
|
76.37%
|
100%
|
20 |
11.0% |
1,209 |
17.4% |
21 |
16.4% |
1,241 |
18.9% |
|
Yangmao Expressway
|
25%
|
－
|
23 |
21.0% |
1,147 |
11.0% |
24 |
16.3% |
1,190 |
6.6% |
|
Guangwu
Project
|
30%
|
－
|
22 |
7.4% |
621 |
11.7% |
23 |
44.9% |
637 |
45.4% |
|
Jiangzhong
Project
|
25%
|
－
|
94 |
22.0% |
990 |
7.9% |
89 |
39.3% |
964 |
14.2% |
|
GZ W2 Expressway |
25%
|
－
|
35 |
10.3% |
755 |
5.8% |
34 |
27.5% |
734 |
17.3% |
|
Other provinces in the PRC: |
||||||||||
|
Wuhuang Expressway
|
55%
|
100%
|
37 |
-2.0% |
1,151 |
-12.5% |
38 |
0.6% |
1,137 |
-11.0% |
|
|
51%
|
－
|
9.0 |
15.6% |
86 |
25.6% |
9.4 |
11.4% |
82 |
16.9% |
|
|
25% |
－
|
23 |
13.4% |
813 |
9.2% |
23 |
4.9% |
824 |
4.8% |
