Net Profit Amounts to RMB 1.697 Billion
Shenzhen Expressway Company Limited
(“Shenzhen Expressway” or the “Company”) and its subsidiaries (collectively, the “Group”) (HKEx:00548) is pleased to announce the interim results for the six months ended 30 June 2014 (the “Reporting Period”).
For the first half of 2014, Shenzhen Expressway recorded revenue of RMB1.928 billion, of which toll revenue of RMB1.466 billion; the Group recorded net profit of RMB1.697 billion and earnings per share of RMB0.778, representing an YOY increase of 340.24%.
The Company’s management commented that, the one-time income made by the Disposal of Meiguan Assets recorded a substantial increase of the profit during the reporting period. Meanwhile, the day-to-day business of the Group has also made a good achievement. The toll revenue generated from the toll highways recorded a stable growth, with cost under well control and obvious profit growth from the entrusted construction business.
In the first half of 2014, the traffic volume and toll revenue of toll highways operated and invested by the Group recorded an overall growth, among which, more than half recorded a double-digit increase. In particular, the average daily toll revenue of Jihe East, Jihe West, Shuiguan Extension and Qinglian Expressway made a good achievement, increased 19.7%, 15.0%, 36.3% and 18.4% on a YOY basis respectively. Due to the influence of the diversion of the neighbouring road network, the toll revenue of Wuhuang Expressway made a YOY decrease.
In the first half of 2014, projects under construction of the Group ran smoothly. The maintenance works for the road surface of Jihe West was completed. The construction, settlement and expansion of the entrusted projects was conducted in an orderly manner. Such work not only boosted the Group’s performance, but also gained a good reputation in the market, bringing more opportunity for the Group’s future development.
According to the agreement entered into between the Company and Shenzhen Government, toll-free for Meilin to Guanlan section of Meiguan Expressway with a mileage of approximately 13.8 km was implemented from 1 April 2014, and the toll for section from Shenzhen-Dongguan border to Guanlan of Meiguan Expressway with a mileage of 5.4 km remained. Shenzhen Government made cash compensation to the Group by three installments. The Group has disposed the book value of the related assets of Toll Free Section in the second quarter of 2014 pursuant to relevant requirement of CASBE, and recognised gains on Disposal of Meiguan Assets of approximately RMB1.117 billion, which resulted in a YOY increase of RMB 1.117 billion in the Group
’
s net profit accordingly.
Appendix I:
2014 Interim Results Highlights
|
( Unit: RMB ) |
201
4
Interim
|
201
3
Interim |
Change |
|
Revenue |
1.928
billion |
1.489
billion
|
+29.48% |
|
Of which: Toll revenue |
1
.
466
billion
|
1.362
billion |
+7.61% |
|
Cost of Services |
916
million |
693
million
|
+32.20% |
|
Of which: Cost of traffic services |
739
million |
664
million
|
+11.34% |
|
Investment Income |
108
million
|
89
million
|
+21.25% |
|
Financial
Expenses |
240
million
|
294
million
|
-18.31% |
|
Net p
rofit attributable to owners of the Company
|
1
.
697
billion
|
386
million
|
+340.24% |
|
Earnings per share |
0.778 |
0.177
|
+340.24% |
|
Earnings per share –
excluding non-recurring items
|
0.246 |
0.171
|
+43.87% |
Appendix II:
Basic Operating Statistics of Toll Highway
s
during the Reporting Period
|
Toll highway |
Average daily mixed traffic volume
(number of vehicles in thousand)
|
Average daily toll revenue (RMB’000) |
||||
|
2014 Interim |
2013 Interim |
Change |
2014 Interim |
2013 Interim |
Change |
|
|
Shenzhen region:
|
||||||
|
Meiguan Expressway |
96 |
123 |
N/A |
546 |
765 |
N/A |
|
Jihe East |
170 |
136 |
24.3% |
1,460 |
1,220 |
19.7% |
|
Jihe West |
134 |
115 |
16.4% |
1,135 |
986 |
15.0% |
|
Yanba Expressway |
31 |
28 |
11.4% |
456 |
402 |
13.4% |
|
Yanpai Expressway |
53 |
45 |
18.6% |
538 |
486 |
10.8% |
|
Nanguang Expressway
|
80 |
68 |
18.2% |
787 |
713 |
10.3% |
|
Shuiguan Expressway |
158 |
146 |
8.3% |
1,298 |
1,223 |
6.2% |
|
Shuiguan Extension |
55 |
33 |
69.5% |
212 |
155 |
36.3% |
|
Guangdong Province – other regions:
|
||||||
|
Qinglian Expressway |
33 |
27 |
20.9% |
2,243 |
1,894 |
18.4% |
|
Yangmao Expressway |
34 |
31 |
10.1% |
1,559 |
1,477 |
5.5% |
|
Guangwu Project |
33 |
26 |
27.9% |
780 |
703 |
10.9% |
|
Jiangzhong Project |
96 |
85 |
13.6% |
976 |
895 |
9.1% |
|
GZ W2 Expressway |
44 |
39 |
14.0% |
847 |
765 |
10.8% |
|
Other Provinces in the PRC:
|
||||||
|
Wuhuang Expressway |
40 |
39 |
2.8% |
933 |
1,061 |
-12.0% |
|
Changsha Ring Road |
16 |
13 |
17.5% |
155 |
126 |
22.7% |
|
Nanjing Third Bridge |
29 |
30 |
-1.4% |
1,135 |
1,128 |
0.6% |
