(Hong Kong, 18 August 2012) The Board of Directors ("the Board") of Shenzhen Expressway Company Limited (“Shenzhen Expressway ", or the “Company”; Stock Code: 00548.HK) is pleased to announce the results of the Company and its subsidiaries (collectively the “Group”) for the six months ended 30 June 2012 (the “Reporting Period”).
Shenzhen Expressway recorded a revenue of about RMB 1380million in the first half of 2012, of which toll revenue was about RMB 1560million, representing an increase of 4.6% as compared to the corresponding period of the previous year. Net profit was RMB 418 million and earnings per share was RMB 0.192, an increase of 18.8% year-on-year.
During the Reporting Period, total revenue of toll highway projects operated and invested by the Group maintained increase. However, owing to factors such as slowdown in the growth of macro-economy, changes in the traffic distribution in the road network and implementation of Standardisation Scheme in
During the Reporting Period, despite the corresponding increase in the cost of depreciation and amortization of the toll highways as a result of growth of traffic volume, the maintenance works for the road surface were carried out as scheduled on some of highways in Shenzhen region with the Provisions for Maintenance/resurfacing fund, lowering the expensed maintenance cost. In addition, the Group stopped making Provisions for Maintenance/resurfacing upon adjusting its service and maintenance strategies. As a result, operating costs went down by 7.2%. In the first half of 2012, although market interest rates reduced slightly, lagged effects of interest rate hiked and macro-economic control policies in the previous round led to certain increase in the Group’s cost of capital. Meanwhile, the company’s average scale of borrowings rise year-on-year, resulting in a 26.4% increase in overall financial expenses.
Complex domestic and international economic environment and uncertainties in toll highway industry policy will continue to exert certain pressure and challenges on the Company’s operation and development. The Management points out that for the second half of 2012, there will be no material changes in the Group’s overall working targets as compared with those in the beginning of 2012. The management of the Company will persevere with its commitment to steady and sustainable business development, while closely monitoring changes in external environment. The Company will focus on such focal points as operation, maintenance, construction, financing and exploration of new industries, and actively push ahead on various work plans in order, and strive to improve the Group’s operating results and management.
Appendix I:
201 2 Interim Results Highlights
|
(Unit: RMB million) |
The R eporting Period |
201 1 Interim ( Restated ) |
Change |
|
Revenue |
1,56 1 |
1,383 |
+12.84% |
|
Of which: Toll revenue |
1,382 |
1,321 |
+4.65% |
|
Net p rofit attributable to owners of the Company |
419 |
353 |
+18.81% |
|
Earnings per share (RMB) |
0.192 |
0.162 |
+18.81% |
|
Return on net assets （ % ） |
4.48 |
4.02 |
Increase 0.46 percentage point |
Appendix II:
Basic Operating Statistics of Various Toll Highway s during
the Reporting Period
|
Toll highway |
Percentage of interests held by the Group |
Percentage of revenue consolidated |
Average daily mixed traffic volume (number of vehicles in thousand) |
Average daily toll revenue |
||||
|
The Period |
2011 Interim |
YOY |
The Period |
2011 Interim |
YOY |
|||
|
Shenzhen region: |
||||||||
|
Meiguan Expressway |
100% |
100% |
120 |
120 |
-0.1% |
913 |
949 |
-3.7% |
|
Jihe East |
100% |
100% |
128 |
113 |
13.5% |
1,344 |
1,391 |
-3.3% |
|
Jihe West |
100% |
100% |
101 |
97 |
3.8% |
1,168 |
1,210 |
-3.5% |
|
Yanba Expressway |
100% |
100% |
27 |
26 |
3.2% |
371 |
358 |
3.5% |
|
Yanpai Expressway |
100% |
100% |
39 |
37 |
3.3% |
498 |
411 |
21.4% |
|
Nanguang Expressway |
100% |
100% |
55 |
55 |
0.1% |
575 |
579 |
-0.7% |
|
Shuiguan Expressway |
40% |
- |
129 |
120 |
7.3% |
1,119 |
1,101 |
1.6% |
|
Shuiguan Extension |
40% |
- |
27 |
35 |
-21.4% |
159 |
212 |
-24.9% |
|
Other regions in Guangdong province: |
||||||||
|
Qinglian Expressway |
76.37% |
100% |
24 |
21 |
13.3% |
1,564 |
1,257 |
24.5% |
|
Yangmao Expressway |
25% |
- |
28 |
24 |
14.1% |
1,369 |
1,212 |
13.0% |
|
Guangwu Project |
30% |
- |
27 |
24 |
12.5% |
740 |
646 |
14.6% |
|
Jiangzhong Project |
25% |
- |
92 |
86 |
7.2% |
958 |
951 |
0.8% |
|
GZ W2 Expressway |
25% |
- |
34 |
33 |
5.1% |
707 |
723 |
-2.2% |
|
Other provinces in the PRC: |
||||||||
|
Wuhuang Expressway |
55% |
100% |
40 |
38 |
5.2% |
1,155 |
1,129 |
2.3% |
|
Changsha Ring Road |
51% |
- |
13 |
9.6 |
32.1% |
109 |
81 |
34.6% |
|
Nanjing Third Bridge |
25% |
- |
26 |
24 |
8.0% |
894 |
829 |
7.8% |
