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HONG KONG, Aug 19, 2012 - (ACN Newswire) - Jiangsu Expressway Company Limited ("Jiangsu Expressway" or the "Group", HKEx: 0177; SSE: 600377; ADR OTC: JEXWW ) and its subsidiaries (together the "Group") is pleased to announce the unaudited interim results of the Group for the six months ended 30 June 2012 (the "Reporting Period").
In the first half of 2012, the economic growth of China and other regions underwent a continued slowdown, which directly impacted the demand for cargo transportation on highways, the truck traffic volume of the Group's roads and bridges saw a slowdown, toll revenue turned out to be underperforming. Meanwhile, the clean-up and rectification measures on toll roads implemented by the local government also brought slight adverse impact on the toll revenue. As a result, the Group realized a total operating revenue of approximately RMB3,729,356,000, up approximately 2.40% over the corresponding period of 2011, of which toll revenue amounted to approximately RMB2,558,941,000, representing an increase of approximately 0.47% as compared to the corresponding period of 2011. Revenue from ancillary services amounted to approximately RMB1,152,207,000, up approximately 8.84% over the corresponding period of 2011. Under the PRC Accounting Standards, the Group realized an operating profit of approximately RMB1,699,602,000 during the Reporting Period. Net profit attributable to equity holders of the Company was approximately RMB1,260,780,000 and earnings per share was approximately RMB0.25.
Toll Road and Bridge Operations
Under the influence of the macroeconomic conditions, in the first half of the year, the average daily traffic volume of the Shanghai-Nanjing Expressway reached 66,265 vehicles, up by approximately 5.93% year-on-year. Of which the overall absolute truck traffic volume decreased, but passenger vehicle traffic volume maintained a positive performance, increased approximately 9.32% year-on-year. Given the impact of the increase in passenger vehicle traffic volume and the drop in truck traffic volume in the first half of the year, and the downward adjustment of the minimum toll standards, daily toll revenue amounted to approximately RMB11,756,300, up by approximately 0.13% year-on-year and turned out to be underperforming and comparable with that of the corresponding period of last year.
During the reporting period, the performance of Shanghai-Nanjing Section of G312 and Nanjing Section of Nanjing - Lianyungang Highway declined and toll revenue turned out to be RMB293,700 and RMB 89,300 respectively. Shanghai-Nanjing Section of G312 was mainly impacted by the drop in truck traffic volume and the downward adjustment of toll standards at Gunan Toll Station, while Nanjing Section of Nanjing - Lianyungang Highway was primarily influenced by the decrease in truck traffic volume.
In the first half of 2012, the traffic volume of Guangjing Expressway, Xicheng Expressway, Jiangyin Yangtze Bridge and Sujiahang Expressway performed satisfactorily, up by approximately 10.90%, 9.95%, 10.01% and 7.48% respectively over the corresponding period of the previous year and with double-digit growth in passenger vehicle traffic volume. However, due to a slowdown in the growth rate or a slight drop of truck traffic volume, there is a slight change in vehicle mix and a decline in revenue per vehicle, the growth rate of toll revenue was lower than that of traffic volume, changed 2.82%, 0.99%, 3.90% and -0.19% respectively year-on-year.
Ancillary services
The Group's revenue from ancillary services amounted to approximately RMB1,152,207,000, up by approximately 8.84% over the corresponding period of the previous year. This is mainly because of the increase in the sales volume of petroleum products and the increase in the prices of refined petroleum products.
Other businesses
During the Reporting Period, revenue from other operations amounted to approximately RMB18,208,000. A major campaign staged by the government of the Jiangsu Province for cleaning up and rectifying advertising facilities along the expressways has caused an impact on the development of the Company's advertising business. In addition, the advertising business managed to obtain approximately RMB17,256,000 in revenue in the first half of the year. The project of Ninghu Properties is under way, and as the pre-sale projects have not been delivered and payments have not been settled, no profit contribution has yet been recognized.
In order to enable the Company to expand its principle business, by being management and operation of toll roads and expressways, and utilizing the investment and development capability of Guangjing Xicheng (a 85% owned subsidiary of the Company), the Board considered and approved the cash contribution of RMB1,466,200,000 made by Guangjing Xicheng to Jiangsu Yanjiang Expressway Co., Ltd. in the subscription of approximately 32.26% of the enlarged registered capital of Jiangsu Yanjiang Expressway Co., Ltd. by way of registered capital enlargement. Upon completion, the Group was able to own the key land transport corridor of the two important industrial belts along the Yangtze River and Shanghai-Nanjing in the south part of Jiangsu, which is of strategic significance to ensure and enhance the leading position of the Group in the road network in southern Jiangsu.
Looking forward, the Group has set the following agenda for the second half of the year for future development: (1) We will give active response to the government's clean-up measures for toll roads and make preparation for the free travel of cars in holidays;(2) We will further promote and implement the "Twelfth Five-year" strategic plan and vigorously explore the reform and innovation in the operation and management modes of our branches and subsidiaries to increase profitability and growth potential;(3) We will advance the modernization of the operation and management of expressways and accelerate the establishment of the modernization indicators system;(4) We will upgrade the standard of the information technology infrastructure of the Company, step up the establishment of special working divisions and implement the informationization plan. We will give priority to sorely needed informationization projects with mature technology and formulate an overall plan to establish an information platform for comprehensive management and public service;(5) We will strengthen cost control, especially on budget management and the special expenditure control;(6) We will keep track of market dynamics, push on with the development and sales of the property projects in an orderly way and ensure the successful delivery of our first residential development so as to build a solid the brand for the Company. The Company will carry on its various work plans in a proactively manner for financing and new business development, in order to further improve operating results and management.
Contact:
Wonderful Sky Financial Group Limited
Hon Fung / Linda Wong / Abbey Zhao / Daniel Xu / Caitlin Guo
Tel: +852 2851 1038
Fax: +852 2598 1588
Email: hf@wsfg.hk / lindawong@wsfg.hk / abbeyzhao@wsfg.hk
danielxu@wsfg.hk / caitlinguo@wsfg.hk
Topic: Earnings
Source: Jiangsu Expressway Company Limited
Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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