| 2001 |
|
| As restated
2000 |
|
|
|
|
| HK$’000 |
|
| HK$’000 |
|
|
|
|
|
|
|
|
| Turnover |
| 418,616 |
|
| 468,266 |
|
| Other revenues |
| 27,060 |
|
| 44,826 |
|
Depreciation of toll highways and
bridges |
|
(79,663) |
|
|
(56,255) |
|
Toll highways and bridges
maintenance expenses |
|
(77,101) |
|
|
(78,517) |
|
| Administrative expenses |
| (39,999) |
|
| (45,960) |
|
| Other operating expenses |
| (4,436) |
|
| (7,354) |
|
| Provision for impairment of goodwill |
|
 |
|
| (157,243)
|
|
|
|
|
|
|
|
|
| Operating profit |
| 244,477 |
|
| 167,763 |
|
| Finance costs |
| (49,148) |
|
| (52,995) |
|
| Share of profits of associated companies |
| 119,744
|
|
| 146,629
|
|
|
|
|
|
|
|
|
| Profit before taxation |
| 315,073 |
|
| 261,397 |
|
| Taxation |
| (29,827)
|
|
| (29,348)
|
|
|
|
|
|
|
|
|
| Profit after taxation |
| 285,246 |
|
| 232,049 |
|
| Minority interests |
| (64,942)
|
|
| (106,779)
|
|
|
|
|
|
|
|
|
| Profit attributable to shareholders |
| 220,304
 |
|
| 125,270
|
|
|
|
|
|
|
|
|
| Dividends |
| 57,523
|
|
| 41,500
|
|
|
|
|
|
|
|
|
| Basic earnings per share |
| 21.14 cents
|
|
| 12.07 cents
|
|
|
|
|
|
|
|
|
| Fully diluted earnings per share |
| 20.55 cents
|
|
| 11.88 cents
|
|
Results Highlights
For the year ended 31st December 2001, the Group’s turnover amounted to approximately HK$418.6 million which decreased by 10.6 per cent due to lower traffic volume as affected by the construction and maintenance of road networks around Guangzhou City for preparing the Ninth National Games and changes of traffic mix in certain remote regions of Guangdong Province. The management expects that these unfavourable factors are temporary in nature. Other revenues decreased from HK$44.8 million in 2000 to HK$27.1 million in 2001 due to planned reduction in the stake of an other investment (Dongyang Highways) which was wholly disposed of in December 2001. Depreciation of toll highways and bridges of the Group’s subsidiaries increased by 41.6 per cent to HK$79.7 million after a regular review of the applicable depreciation rates conducted during the year. Share of profits from associated companies also decreased by 18.3 per cent to HK$119.7 million as affected by higher depreciation and temporary factors deterring traffic.
In accordance with the transitional provisions of SSAP 30 which becomes effective on 1st January in 2001, the Group has retrospectively restated the profit attributable to shareholders for 2000 to HK$125.3 million to conform to the new accounting policy after performing an assessment of the fair value of its goodwill arising from previous acquisitions of toll projects that had already been eliminated against reserves.
Profit attributable to shareholders in 2001 was HK$220.3 million (2000 as restated: HK$125.3 million) and basic earnings per share was 21.14 cents (2000 as restated: 12.07 cents).
Final Dividend
The Directors recommended the payment of final dividend of 2.5 cents (2000: 1.0 cent) per share. Together with the interim dividend of 3.0 cents (2000: 3.0 cents) per share, total dividends for the year ended 31st December 2001 will amount to 5.5 cents (2000: 4.0 cents) per share.
Prospects
In the Group’s view, road construction works for preparing the Ninth National Games held in 2001 will no longer affect traffic conditions of the Group’s projects although some recently completed road networks may continue to divert traffic of certain projects in 2002. As the Group has a diversified portfolio, some other toll road projects such as Humen Bridge, Xian Expressway, Guangcong Highway and Guanghua Highway are expected to achieve steady traffic volume growth in 2002.
The Group also re-organized its toll road portfolio in the year through disposing less promising projects, and increasing stakes in existing projects with better potentials. Projects including Dongyang Highways and Xinfeng Highways were divested for total sale proceeds of Rmb325 million. Apart from income received over the past years, the disposal of these two projects achieved exceptional profit of HK$12 million.
In January 2002, the Group had increased its attributable interest in Qinglian Highways from 15.60 per cent to 23.63 per cent. On 12th April 2002, the Group entered into a conditional agreement to reduce its stake in GNSR Expressway from 51 per cent to 46 per cent for a consideration of Rmb51.1 million. Part of the consideration of Rmb16.22 million will be received in cash and the balance will be satisfied by the procurement of the transfer of an aggregate of 0.995 per cent effective interest in Humen Bridge to the Group, thereby increasing the Group’s interest in this project from 24 per cent to 25 per cent.
In this challenging transitional period, the Group will adopt various cost control measures and continue to strengthen management. Longer term, the Group remains optimistic in the toll road business due to fast growing private car ownership, which is expected to speed up with China’s accession to the World Trade Organisation. Guangzhou Municipality’s role as the traffic hub of Guangdong Province is increasingly important in the future. The Group’s strategy is to continue sourcing new investments with strong cash flow and growth potential in order to deliver satisfactory return to shareholders.
Full copy of the above announcement is available at the Hong Kong Stock Exchange’s website www.hkex.com.hk. The listed company code for GZI Transport is 1052.