Shenzhen Expressway Company Limited (“Shenzhen Expressway”) (HKEx: 00548; SSE: 600548) and its subsidiaries (collectively, the “Group”) is pleased to announce the third quarterly unaudited results of 2014. The Group recorded net profit of RMB308 million in the third quarter of 2014, and recorded net profit of RMB2,005 million and earnings per share of RMB0.919 in the first three quarters, representing a YOY increase of 215.65%.
From January to September 2014, the revenue and investment income of the Group increased steadily, the cost of services was well controlled, the profit of entrusted construction management services had a greatly YOY increase, and Gains on Disposal of Meiguan Assets brought a one-off gains, resulting the substantial increase in net profit of the Group in the first three quarters of 2014. After deducting the effect of Gains on Disposal of Meiguan Assets, the net profit recorded a YOY increase of 39.75%.
From January to September 2014, the overall traffic volume and toll revenues of toll highways operated and invested by the Group performed well with over half of the projects recorded a double-digit growth. In particular, the average daily toll revenue of Jihe East, Jihe West, Shuiguan Extension and Qinglian Expressway made a noticeable achievement with a YOY growth of 22.3%, 18.3%, 36.6% and 15.3% respectively. Due to the negative impacts of some factors such as change of the neighboring road networks, the average daily toll revenue of both Wuhuang Expressway and Nanjing Third Bridge made a YOY decrease.
The management commented that, in the period of the first three quarters of 2014, the day-to-day business of the Group made a good achievement and the profit of entrusted construction management services presented an obvious increase. Besides, the Group recognised Gains on Disposal of Meiguan Assets of approximately RMB1,117 million in the second quarter of 2014, the Group’s annual net profit of 2014 is expected to increase by approximately 180% to 230% YOY.
Appendix I: January ~ September 2014 Results Highlights
(Unit: RMB million) Jan ~ Sep 2014 Jan ~ Sep 2013 Change Revenue 2,796 2,351 18.95% Of which: Toll revenue 2,289 2,152 6.39% Net profit attributable to owners of the Company 635 215.65% Earnings per share (RMB) 0.919 0.291 215.65% Return on net assets（%） 18.54% 6.52% +12.02p.pt
Appendix II: Basic Operating Statistics of Toll Highways during the Reporting Period
|
Toll highway |
Percentage of interests held by the Group |
Percentage of revenue consolidated |
Average daily |
Average daily |
Average daily |
Average daily |
||||
|
Jul ~ Sep 2014 |
YOY |
Jul ~ Sep 2014 |
YOY |
Jan ~ Sep 2014 |
YOY |
Jan ~ Sep 2014 |
YOY |
|||
|
Guangdong Province - Shenzhen region: |
||||||||||
|
Meiguan Expressway |
100% |
100% |
74 |
N/A |
286 |
N/A |
89 |
N/A |
459 |
N/A |
|
Jihe East |
100% |
100% |
215 |
29.0% |
1,852 |
26.7% |
185 |
26.1% |
1,592 |
22.3% |
|
Jihe West |
100% |
100% |
170 |
25.2% |
1,420 |
23.8% |
146 |
19.7% |
1,231 |
18.3% |
|
Yanba Expressway |
100% |
100% |
49 |
24.2% |
634 |
16.7% |
37 |
16.8% |
516 |
14.7% |
|
Yanpai Expressway |
100% |
100% |
70 |
16.2% |
729 |
13.7% |
59 |
17.6% |
602 |
11.9% |
|
Nanguang Expressway |
100% |
100% |
94 |
14.4% |
904 |
5.3% |
85 |
16.7% |
827 |
8.4% |
|
Shuiguan Expressway |
40% |
－ |
182 |
7.0% |
1,521 |
8.1% |
166 |
7.9% |
1,373 |
6.9% |
|
Shuiguan Extension |
40% |
－ |
67 |
67.3% |
255 |
37.2% |
59 |
68.7% |
226 |
36.6% |
|
Guangdong Province - other regions: |
||||||||||
|
Qinglian Expressway |
76.37% |
100% |
35 |
18.3% |
2,244 |
9.5% |
34 |
20.0% |
2,244 |
15.3% |
|
Yangmao Expressway |
25% |
－ |
40 |
14.9% |
1,624 |
8.5% |
36 |
11.9% |
1,581 |
6.5% |
|
Guangwu Project |
30% |
－ |
32 |
14.5% |
850 |
16.5% |
33 |
23.1% |
804 |
12.8% |
|
Jiangzhong Project |
25% |
－ |
110 |
15.7% |
1,109 |
15.2% |
101 |
14.4% |
1,021 |
11.2% |
|
GZ W2 Expressway |
25% |
－ |
48 |
7.9% |
974 |
11.8% |
46 |
11.7% |
890 |
11.2% |
|
Other provinces in the PRC: |
||||||||||
|
Wuhuang Expressway |
55% |
100% |
40 |
-1.6% |
880 |
-14.7% |
40 |
1.3% |
915 |
-12.9% |
|
Changsha Ring Road |
51% |
－ |
18 |
27.0% |
188 |
26.6% |
17 |
20.9% |
166 |
24.2% |
|
Nanjing Third Bridge |
25% |
－ |
27 |
-8.9% |
1,072 |
-14.4% |
29 |
-3.9% |
1,114 |
-4.8% |
Net Profit Amounted to RMB2,005 million in the First Three Quarters
