Yuexiu Transport announced 2013 annual results

 Impressive Operating Results

Profit Attributable to Shareholders & Total Dividend Surge 30%

Financial Highlights:

Results Highlights and Outlook:

(19 March 2014 – Hong Kong) Yuexiu Transport Infrastructure Limited (“Yuexiu Transport Infrastructure” or “Company”, stock code: 1052) today announces the annual results of the Company and its subsidiaries, which are collectively referred to as the “Group”, for the year ended 31 December 2013.

During the reporting period, China maintained steady economic growth, which led to the stable aggregate national traffic demand and consistent growth in passenger and freight traffic volumes on highways. Under these favourable conditions, toll revenue of the Group’s projects maintained decent growth momentum, driving up toll revenue by 18% to a record-high of RMB1,753 million. Profit attributable to shareholders rose by 29.9% to RMB554 million.

The Board has recommended the payment of a final dividend for 2013 of HK$0.16 per share, which together with the paid interim dividend of HK$0.10 per share, brings the total dividend for 2013 to HK$0.26 per share. This also represents an annual dividend payout ratio of 62.1% (2012: 63.7%), reflecting the Group’s stable and consistent dividend policy.

The aftermath of the global financial crisis still lingered, but China maintained a stable economy thanks to the government’s consistent macroeconomic control measures. In 2013, the Chinese government’s policy on the toll road sector remained stable, and the Group’s projects maintained sound growth momentum in toll revenue. In particular, projects in central region such as the Weixu Expressway acquired in recent years recorded strong double-digit revenue growth. The expressway has become an important growth driver for the Group. Driven by favourable factors such as steady regional economic growth, infrastructure investments, and enhanced domestic consumption, the goods vehicles accounted for a higher proportion of the traffic volumes in the Group’s projects in Guangdong. The performance of the projects in the province exceeded expectations with revenue growth of over 10% for mature projects such as GNSR Expressway and Humen Bridge, which helped bring the Group’s total toll revenue to a new high. The results were satisfactory.

As to government’s policy on the transportation sector, according to “National Highway Network Plan (2013 - 2030)” issued by the National Ministry of Transport on 20 June 2013, the immense demand for networks of expressways necessitated the continuation of the toll collection and the diversification of investment parties and sources of financing, especially the introduction of civilian capital. In addition, extended toll concessions or heightened toll rate standards has been approved across provinces including Jiangxi, Jiangsu, Hebei and Guangdong. Looking ahead to 2014, the management expects the central government to continue improving the relevant laws and regulations and effectively protect the legal benefits of investors and operators in view of the fiscal capacity of the local governments, the liabilities of the expressways. The government’s policy on the toll road sector is likely to remain stable.

Looking ahead, the Group is confident about its prospects. The Group believes that its projects such as GNSR Expressway, Xian Expressway, Cangyu Expressway, Guangzhou Northern Ring Road, Humen Bridge and Shantou Bay Bridge, which are relatively mature, will continue to be the main source of stable profit. In particular, operational performance of projects in central Guangzhou will become stronger, driven by the toll-by-weight policy which is anticipated to be carried out in 2014. On the back of rapid growth of the local economy, traffic volumes and toll revenues at the new projects acquired in recent years such as Han-xiao Expressway, Changzhu Expressway and Weixu Expressway are expected to maintain strong double-digit growth.

The Group remains optimistic about the prospects of the transport infrastructure sector in mainland China, and will actively seek for business opportunities in the economically developed Pearl River Delta Region and the fast growing central and western provinces, which benefit from the central government’s huge support and the migration of industries from the country’s eastern coast. The Group will proactively explore quality expressways for investment, and will fully utilise the advantage of dual financing platform across mainland China and Hong Kong, and its internal and external resources. It will also actively seek to diversify its debt financing, optimise the asset portfolio so as to enhance the overall yield on assets and create encouraging return to the shareholders.