GZI Transport Limited (“GZI Transport” or “Company”) (Stock Code: 1052) announces today the annual results of the Company and its subsidiaries (“Group”) for the 12 months ended 31 December 2008 (“Year”).
Operating profit of the Group for the Year rose significantly by 36.9% over 2007 to approximately HK$581 million. Profit attributable to equity holders of the Company amounted to HK$607.5 million, representing an increase of 23.5% over 2007. Basic earnings per share for the year amounted to HK$0.363 (2007 (Restated): HK$0.376). The board of directors of GZI Transport recommended to pay a final dividend of HK$0.08 per share (2007: HK$0.0775).
During the Year, both traffic volumes and toll revenues of expressways operated by GZI Transport posted considerable growth. In particular, the average daily traffic volume and toll revenue of the Guangzhou Northern Second Ring Expressway (“GNSR Expressway”) increased by 15.8% and 7.4% respectively over 2007; the average daily traffic volume and toll revenue of the Guangzhou Western Second Ring Expressway (“GWSR Expressway”) increased by 59.5% and 70.3% respectively over 2007; and the average daily traffic volume and toll revenue of the Xian Expressway rose by 4.4% and 5.7% respectively as compared to 2007.
Continuing its strategy to increase investments in expressways and bridges, the Group acquired a further 20% equity interest in the GNSR Expressway and a further 2.78% equity interest in the Humen Bridge in early 2008. The Group also acquired a 90% equity interest in the Cangyu Expressway at the end of 2008 (completed on 19 January 2009).
GZI Transport will continue to actively look for investment opportunities in various economically well-developed areas, such as the Pan-Bohai Economic Circle, the Yangtze River Delta region and those cities and areas which will benefit from the “Develop the West” policy, to enhance the Group’s assets quality and shareholder returns in the long run.
Looking ahead, Mr. Zhang said, “In order to achieve the target of 8% GDP growth for 2009, the Chinese government has rolled out a series of stimulus packages. Among these, the central government is to significantly increase investments on infrastructure and has confirmed the automobile industry as one of the ten industries which will receive government supports. Together with a series of policies, including the implementation of the fuel tax reform, the reduction of petroleum product prices and the lowering of vehicle purchase tax for small cars, the Group believes that its expressways and bridges will maintain steady development on their toll operations under the prevailing operating environment.”
Mr. Zhang added, “With a low gearing ratio and abundant cash in hand, we are confident that the Group is well prepared to realize the Company’s objective of optimizing our toll road mix under an environment where opportunities abound. Among the Company’s objectives is to reduce its portfolio of Class 1 and Class 2 highways within its road mix. The Group strives to expand its solid foundation by acquiring more quality assets in order to maintain stable growth for the future. Year 2009 will be a year for the Group to expand its business.”
Profile of GZI Transport Limited
The Group is mainly engaged in investment, operation and management of toll expressways, national highways and bridges mainly located in Guangdong Province. As at 31 December 2008, the Group had 13 toll road and bridge projects which it invests in and operates, with an attributable length of approximately 324.3 km. These projects include Guangzhou City Northern Ring Road, Guangzhou City 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 I and II, Guanghua Highway and Qinglian Highways all of which connects the transportation hub in Guangzhou City with Guangdong, Hunan and Jiangxi provinces; Xian-Lintong Expressway in Shaanxi Province; and Xiang Jiang Bridge II in Xiangtan City of Hunan Province. All of these projects have been in operation and collecting toll fees.
For enquires, please contact:
GZI Transport LTD
Grace Li (Tel: 2865 2205 Fax: 2865 2126)