Net Profit for January to September Amounts to RMB707 Million
Shenzhen Expressway Company Limited (“Shenzhen Expressway” or the “Company”) (HKEx: 00548; 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 2011 (the “Reporting Period”). During the Reporting Period, the Group realised a revenue of RMB732 million, representing a slight increase of 0.41% year-on-year. Of such revenue, toll revenue amounted to RMB696 million, a decrease of 1.30% year-on-year. Net profit attributable to owners of the Company amounted to RMB355 million, an increase of 60.88% year-on-year.
During January to September 2011, the Group realised a revenue of RMB2,115 million, representing an increase of 5.21% year-on-year. Of such revenue, toll revenue amounted to RMB2,017 million, an increase of 3.90% year-on-year. Net profit attributable to owners of the Company amounted to RMB707 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 extents, mainly attributable to the changes in the traffic distribution and composition within the road networks and a slowdown in growth of the macro-economy. In addition, the road surface maintenance works implemented on the South Section of Meiguan Expressway, as well as the temporary traffic control and re-routing measures carried out by Benefitting from stimulation effects caused by an improvement of the road networks and booming economic activities in nearby areas, the overall performances of Qinglian Expressway, Guangwu Project, Yangmao Expressway, Jiangzhong Project and GZ W2 Expressway in other regions in During January to September 2011, toll revenue derived from major toll highways operated and invested by the Group recorded a slowdown in growth in general, while toll revenue derived from some projects decreased to a significant extent. On the other hand, before including the impact of changes in accounting estimates, cost of services for toll highways increased relatively much more year-on-year, which was mainly due to increases 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 the accounting estimates on provisions for road maintenance/resurfacing obligations. This has resulted in an increase in net profit of RMB291 million during the Reporting Period 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 agreement, which will involve the construction of phase I of Guilong Road and the development of peripheral lands, 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., Ltd. 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 strive 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 profit 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% Increased by 1.38 percentage points
Appendix II:
Basic Operating Statistics of Various Toll Highways
|
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 |
||||
|
Jul ~ Sep 2011 |
Compared to |
Jul ~ Sep 2011 |
Compared to |
Jan~ Sep 2011 |
Compared to |
Jan ~ 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% |
