SHENZHEN INTERNATIONAL HOLDINGS LIMITED Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
(incorporated in Bermuda with limited liability)
(Stock Code: 00152) (the "Company")The document attached hereto is the Announcement on Estimation of Annual Results for the Year of 2015 of Shenzhen Expressway Company Limited (a subsidiary of the Company, the A shares of which are listed on the Shanghai Stock Exchange and the H shares of which are listed on The Stock Exchange of Hong Kong Limited) which has been released to the Shanghai Stock Exchange.
Hong Kong, 29 January 2016
As at the date of this announcement, the board of directors of the Company consists of Messrs. Gao Lei, Li Jing Qi, Zhong Shan Qun, Liu Jun and Li Lu Ning as executive directors, Dr. Yim Fung, JP as non-executive director and Messrs. Leung Ming Yuen, Simon, Ding Xun and Nip Yun Wing as independent non-executive directors.
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
深 圳 高 速 公 路 股 份 有 限 公 司
SHENZHEN EXPRESSWAY COMPANY LIMITED(a joint stock limited company incorporated in the People's Republic of China with limited liability)
(Stock Code: 00548)This announcement is made pursuant to Rules 13.09 and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of Laws of Hong Kong).
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Results Estimation for the Period
Results estimation period
1 January 2015 to 31 December 2015
Results Estimation
Based on the preliminary estimation by the finance department, it is estimated that the net profit attributable to owners of Shenzhen Expressway Company Limited (the "Company", together with its subsidiaries, the "Group") for the year of 2015 will decrease by approximately 20%-40% as compared to the same period of the previous year.
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Results for the Same Period of the Previous Year
Net profit attributable to owners of the Company: RMB2,186.8834 million.
Basic earnings per share: RMB1.003.
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Main Reasons for the Estimated Decrease in Results During the Period
In early 2014, the Group and the Shenzhen Government reached an agreement on the toll adjustment and compensation regarding Meiguan Expressway, the Group disposed of the book value of the related assets in 2014 pursuant to the relevant requirements of the Accounting Standards for Business Enterprises of the PRC and recognised the net gains on disposal of assets after tax of approximately RMB1.1 billion. Such gains on disposal had a one-off significant positive effect on the 2014 annual results. For details, please refer to the relevant disclosures in the 2014 annual report.
The Group obtained the controlling interest in Shenzhen Qinglong Expressway Company Limited ("Qinglong Company") in 2015 and the accounts thereof have been consolidated into the financial statements of the Company. Pursuant to the relevant requirements of the Accounting Standards for Business Enterprises of the PRC, the 40% equity interests of Qinglong Company originally held by the Company prior to the date of consolidation will be remeasured at fair value on the date of purchase. The difference between the fair value and the book value will be recognised as investment income for the current period. Such remeasurement will have a positive effect on the Group's net profit attributable to owners of the Company with an amount of approximately RMB900 million.
The operating performance of Qinglian Expressway was worse than expected due to various factors such as diversions of road network. As approved by the board of directors of the Company, in accordance with the relevant requirements of the Accounting Standards for Business Enterprises of the PRC, the Group made a provision for impairment of RMB620 million in respect of the concession intangible assets of Qinglian Expressway and reduced the carrying amount of deferred tax assets for loss reduction of Guangdong Qinglian Highway Development Company Limited by RMB46 million in 2015. In aggregate, the aforesaid matters resulted in a negative effect on the Group's net profit attributable to owners of the Company with an amount of approximately RMB390 million.
In addition, the Company adjusted and recognised the revenue from the entrusted management services in respect of both Coastal Phase I and Guilong Projects in 2014 based on the actual settlement of the work, the audit results of the relevant government departments and the progress of completion, resulting in a substantial decrease in the revenue from the entrusted construction management services for this period on a year-on-year basis.
- Other Matters
The estimation above only represents preliminary estimates. Specific and accurate financial figures will be disclosed in the audited 2015 annual report to be officially announced by the Company. Investors are advised to be aware of the investment risks.
By order of the Board Hu Wei Chairman
Shenzhen, the PRC, 29 January 2016
As at the date of this announcement, the directors of the Company are Mr. HU Wei (Executive Director and Chairman of the Board), Mr. WU Ya De (Executive Director and President), Mr. WANG Zeng Jin (Executive Director), Mr. LI Jing Qi (Non-executive Director), Mr. ZHAO Jun Rong (Non-executive Director), Mr. TSE Yat Hong (Non-executive Director), Ms. ZHANG Yang (Non-executive Director), Mr. CHIU Chi Cheong, Clifton (Non-executive Director), Mr. AU Sing Kun (Independent non-executive Director), Mr. LIN Chu Chang (Independent non-executive Director), Mr. HU Chun Yuan (Independent non-executive Director) and Mr. SHI Xian Liang (Independent non-executive Director).
In this announcement, certain English names are translation of their Chinese names, and are included herein for identification purpose only. In the event of any inconsistency, the Chinese names shall prevail.
Shenzhen International Holdings Ltd. issued this content on 29 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 29 January 2016 14:16:24 UTC
Original Document: http://www.szihl.com/uploadfiles/2016/01/20160129212304234.pdf
