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GZI Transport Announces 2007 Annual Result Profit of HK$581million, up 26%

Date: 2008-04-08
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 GZI Transport Limited (“Company”) and its subsidiaries (collectively, “Group”) [HKSE: 1052] today announces its annual results for the year ended 31 December 2007. Both the full-year toll revenue and profit attributable to equity holders of the company for the Reporting Year reached historic highs since 1997.

 

In 2007, the group recorded a full-year toll revenue of HK$871 million, representing a substantial increase of 94.1 per cent over 2006. The increase was mainly attributable to the toll revenue of Guangzhou Northern Second Ring Expressway Co., Ltd. (“GNSR Expressway Co.”) being 100.0 per cent consolidated into the Group’s accounts since April 2007 after the Group’s equity interest in GNSR Expressway Co. increased to 60.0 per cent. Profit attributable to equity holders of the Company amounted to HK$581 million, representing a 26.0 per cent increase over 2006. Basic earnings per share were HK$0.444 (2006: HK$0.413). The Board recommended the distribution of a final dividend of HK$0.0775 per share, which when aggregated with the paid interim dividend of HK$0.0575 per share (2006: HK$0.065) represented a dividend payout ration of 38.9 per cent in the year.

 

During 2007, the Group’s operation witnessed a series of favorable factors, with several major indices closely related to toll road traffic volume in the respective locations of each toll road projects such as GDP indices, cargo and passenger turnovers by means of toll road transportation and car ownership of residents reported rapid growth. Overall, the traffic volumes and toll revenues of the Group’s expressways and bridges continued to report satisfactory growth in 2007.

 

In light, the Group has been striving to increase the weight of its investments in expressways. The Group completed its acquisition of an additional 20.0 per cent interest in GNSR Expressway Co. in April 2007, thereby increasing the attributable mileage of toll roads and bridges of the Group from 315.4 km as at the end of 2006 to 323.9 km. As well, taking advantage of SDIC communications Co., one of the existing shareholders of Guangdong Humen Bridge Co., Ltd. (“Humen Bridge Co.”) divesting its 10.0 per cent equity interest in Humen Bridge Co., the Group exercised its Pre-emption right to acquire an additional 2.78 per cent interest on a pro-rata basis for the consideration of RMB 194.6 million. The acquisition was completed in late January 2008, and the Group’s equity interest in Humen Bridge Co. has increased to 27.78%.

 

In order to timely capitalize on the business opportunities afforded by the prospering PRC economy in 2007, the Company took advantage of the capital market boom and completed an open offer, issuing 557,720,765 new shares of the Company at an offer price of HK$3.93 each, and raised approximately HK$2.19 billion (before expenses) at the end of August 2007. The Company has since been striving to identify expressways and projects with satisfactory investment returns and will make timely disclosures in accordance with the provisions of the Listing Rules once the negotiations came to fruition.

 

With the strong basic fundamentals of the RPC economy, the Group will take full advantage of the proceeds from the open offer and will strive to seeking and investing in quality toll expressway projects which will generate substantial returns as to maintain a stable and solid growth of the Company.

 

About GZI Transport Limited

 

The Group's toll road portfolio is consisted of expressways, bridges and national highways mainly located in Guangdong Province. Northern Ring Road, Guangzhou Northern Second Ring Expressway, Humen Bridge and Shantou Bay Bridge are expressways and bridges located inside Guangdong Province, while Guangshen, Guangshan, Guangcong Section I and II, Guanghua and Qinglian are national highways connecting traffic hub of major cities inside Guangdong Province and inter-provincial traffic between Guangdong, Hunan and Jiangxi Provinces. Xian Expressway and Xiang Jiang Bridge II are located outside Guangdong Province. Currently, except Guangzhou Western Second Ring Expressway, all of the Group's toll roads and bridges are operating and generating toll revenue.


For enquires, please contact:

GZI Transport LTD

Grace Li (Tel: 2865 2205 Fax: 2865 2126)

 

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