Profit of HK$250 million, up 25.9%
GZI Transport Limited (“GZI Transport” or the “Group”) [HKSE: 1052] today announces its unaudited consolidated results of the Company, its subsidiaries, associates and jointly controlled entities (collectively the “Group”) for the six months ended 30 June 2007.
Profit and basic earnings per share attributable to equity holders of the Company amounted to HK$250 million and HK$0.2243 respectively, both rose by 25.9 per cent over the same period last year. The Board of Directors of GZI Transport has resolved to declare an interim dividend for 2006 of 5.75cents per share.
In the first half of 2007, upon completion of the additional acquisition of 20.0 per cent equity interest in GNSR Expressway Co., Ltd. became a subsidiary of the Group and its earnings, assets and liabilities were consolidated into the Group’s accounts commencing second quarter of 2007. GNSR Expressway posted impressive growth during the period with its traffic and revenue both above projection and together with the satisfactory performance of a majority toll projects in the portfolio, contributed to the Group’s remarkable results in the first half of 2007.
The Group’s operating profit for the six months ended 30 June 2007 surged by HK$ 86.1 million or 95.7 per cent to HK$176.1 million, compared to HK$90.0 million achieved during the same period last year. This was mainly due to the Group’s acquisition of the additional 20.0 per cent equity interest in GNSR Expressway Co., Ltd and its rapid revenue growth.
Future Strategy and Prospects
China’s economy and export trades continued to maintain their rapid yet healthy development which serves as an major driver of the demand for highways and traffic infrastructures in China. The Company reckoned that the 11th Five year Plan (“Plan”) provides ample development potential and attractive business growth prospects in toll road business in Guangdong Province.
In order to timely capture these investment opportunities provided by the Plan for Guangdong Province, the Company took advantage of the favorable market sentiments, and made an open offer of 557,720,765 shares in the capital of the Company at a price of HK$ 3.93 per share. The open offer was successfully completed on 28 August 2007, and the Company raised approximately HK$2.19 billion (before expenses). The proceeds of the open offer will provide the company with the necessary funds to finance its planned expansion, timely grasp business opportunities with a view to enlarging its market share, thereby further enhancing the Group’s position in the toll road industry as well as increasing the Group’s profitability and shareholders’ return.
About GZI Transport Limited
The Group is principally engaged in investment, operation and management of expressways and national toll highways and bridges mainly located in Guangzhou area. As the 30th June 2006, the Group had already invested and operating a total of 13 toll road and bridge projects with current attributable length of 315.2 kms. These projects include Guangzhou Northern Ring Road, Guangzhou Northern Second Ring Expressway, Guangzhou Western Second Ring Expressway, Guangdong Humen Bridge and Shantou Bay Bridge; Guangshen Highway, Guangshan Highway, Guangcong Highway Section I and II, Guanghua Highway and Qinglian Highways all of which connect the traffic hub of Guangzhou City and inter-provincial traffic between Guangdong, Hunan and Jiangxi provinces; Xian Expressway in Shaanxi Province and Xiang Jiang Bridge II in Xiangtan City of Hunan Province. All toll projects are already operating and collecting toll.
For enquires, please contact:
GZI Transport LTD
Grace Li (Tel: 2865 2205 Fax: 2865 2126)