Revenue Records a Double-digit Increase, Profits Rise Over 50%
(Hong Kong, 10 August 2010)…GZI Transport Limited (“GZI Transport” or the “Company”) (Stock Code: 1052) announced today the unaudited interim results of the Company and its subsidiaries (collectively the “Group”) for the 6 months ended 30 June 2010 (the “Reporting Period”). And analyst meeting and press conference were hold at the Island Shangri-La Hotel in Pacific Place with more than 60 fund managers, analysts and reporters attending.
During the Reporting Period, revenue of GZI Transport amounted to RMB571.4 million, representing an increase of 27.8% over the corresponding period last year. Profit attributable to equity holders of the Company amounted to RMB238.1 million, an increase of 53.2% year-on-year. Basic earnings per share amounted to RMB0.1423, an increase of 53.2% year-on-year.
The Board has resolved to declare an interim dividend for 2010 of HK$0.10 per share, which was equivalent to approximately RMB0.087238 per share (2009 interim: HK$0.04 which was equivalent to approximately RMB0.035).
Mr Zhang Zhaoxing, Chairman of GZI Transport expressed that the operating results for the Reporting Period basically met the Group’s expectation, “As a result of the favourable macro-economic development, most of the toll road and bridge projects operated by the Group showed good growth momentum year-on-year. Our main controlled project, GNSR Expressway, has sustained the upwarding trend of 2009 during the Reporting Period and recorded rapid revenue growth of over 20%. The newly acquired Jinbao Expressway has gone through a smooth management transition and restructuring and recorded revenue growth while having effectively carried out cost control over its repair and maintenance enhancement works. It has become a new profit driver for the Group.”
As the Group implemented policies in recent years to adjust the ratio between expressways and highways, the revenue proportion of Class 1 highways to the total revenue of the Group has been trending downward. Class 1 highways’ overall revenue represented approximately 13.0% (same period in 2009: 15.4%) of the total revenue from subsidiaries, or 8.8%(same period in 2009: 10.0%) of the aggregated revenue from both subsidiaries and associates and jointly controlled entity.
Looking ahead, Mr Zhang Zhaoxing said, “As Mainland China is expected to continue its macro-economic growth, the revenue and operation of the Group’s toll roads and bridges will develop steadily in the second half of 2010 and the Group’s operating results are expected to achieve continuous growth. Jinbao Expressway, which was acquired at the end of 2009, has become a profit driver; and Cangyu Expressway and GWSR Expressway are expected to maintain rapid growth and become profit drivers in the near term. The Group also expects Qinglian Expressway to achieve continuous revenue growth and to become a profit driver in the long term.”
Mr. Zhang added, “The Group will continue to take advantage of the favourable macro-economy and its strong capital resources to search for opportunities to invest in high-quality toll roads and other infrastructure assets without limitations on the operating term. The Group will continue to focus on: (1) the Central region with a considerably mature economy and new growth opportunities rendered by Wuguang High-Speed Railway; (2) the Western provinces which are benefitting from the development of ASEAN Free Trade Area; and (3) the Pearl River Delta region with highly developed economy. The Group will further conduct investigation and cultivate projects in target areas with a mature environment for investment, and explore and invest in new projects with satisfactory returns and good prospects, so as to enhance the overall asset size, profitability, and risk profile.”
Profile of GZI Transport Limited
GZI Transport Limited is mainly engaged in investment, operation and management of toll expressways, national highways and bridges mainly located in Guangdong Province. As at 30 June 2010, the Group had 13 toll road and bridge projects which it invests in and operates, with an attributable length of approximately 332.5km. These projects include Guangzhou City Northern Ring Road, Guangzhou Northern Second Ring Expressway, Guangzhou Western Second Ring Expressway, Guangdong Humen Bridge and Shantou Bay Bridge; inter-province transportation projects such as Guangshen Highway, Guangshan Highway, Guangcong Highway II, Guanghua Highway and Qinglian Expressway, all of which connect the transportation hub in Guangzhou City with Guangdong, Hunan and Jiangxi provinces; Xian-Lintong Expressway in Shaanxi Province; Canyu Expressway in Guangxi Autonomous Region; and Jinbao Expressway (Tianjin Section) connecting Tianjin and Hebei Province. All of these projects have been in operation and collecting toll fees.