Zhejiang Expressway : Announces 2012 First Quarter Results
05/11/2012| 09:32am US/Eastern
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[FOR IMMEDIATE RELEASE]
Zhejiang Expressway Announces 2012 First Quarter Results
Net Profit Down 1.9% to RMB417 Million
*************************************** Growth in traffic
volume decelerated
(Hong Kong, May 11, 2012) - Zhejiang Expressway Co., Ltd.
("Zhejiang Expressway" or the "Company") (HKEx code: 576; LSE
code: ZHEH; ADR code: ZHEXY) today announced the unaudited
consolidated operating results of the Company and its
subsidiaries (collectively the "Group") for the three months
ended March 31, 2012 (the "Period").
During the Period, revenue for the Group amounted to
Rmb1,584.49 million, representing a decrease of
2.6% year-on-year. Profit attributable to owners of the
Company amounted to Rmb416.94 million. Basic earnings per
share were Rmb9.60 cents (same period in 2011: Rmb9.79
cents).
Mr. Chen Jisong, Chairman of the Company said, "Economic
growth in Zhejiang Province continued to demonstrate a
slowing trend, and the increase in traffic volume on the
Shanghai-Hangzhou-Ningbo Expressway decelerated accordingly
during the Period. The organic growth in the traffic volume
of the Shangsan Expressway showed a month-by-month downward
trend. Therefore, overall toll revenue was lower than
expected."
During the Period, the average daily traffic volume in
full-trip equivalents along the Shanghai-Hangzhou-Ningbo
Expressway was 40,303, representing growth of 4.5% as
compared to the same period of the previous year, while total
toll income amounted to Rmb694.80 million, representing
growth of 1.7% year-on-year. Average daily traffic volume in
full-trip equivalents along the Shangsan Expressway was
17,143, representing a decrease of 3.5% year-on-year, while
total toll income was Rmb163.98 million, representing a
decrease of 7.1% year-on-year.
In the toll road-related business operation, as a result of
slowing growth in traffic volume along the Group's two
expressways, the client volume at the service areas declined.
However, owing to increases in the sale prices of petroleum
products, which in turn led to a substantial increase in
sales revenue of petroleum products, overall income from the
service areas was satisfactory. Thus, income from toll
road-related businesses amounted to Rmb497.35 million during
the period, representing a year-on-year increase of 7.1%
As for the securities business, during the Period, the market
share of the securities brokerage increased over the same
period last year, while the customer base continued to rise
and the operational network increased to 60 branches.
However, the aggregate trading volume in the domestic stock
market declined significantly as compared to the
corresponding period last year as the market continued to
experience a downward trend, causing the commission income to
decline accordingly, thereby undermining the performance of
the securities business during the Period. Zheshang
Securities realized operating income of Rmb273.67 million
during the period, representing a decrease of 22.4%
year-on-year.
Mr. Chen said, "Looking forward, the decelerating pace of
economic growth in Zhejiang Province is anticipated to
continue. This is expected to have an impact on the organic
growth in the traffic volume of the Group's two expressways.
At the same time, as the clean-up and rectification programme
for toll roads is close to completion, two new policies - the
toll-by-driving route policy and the improved vehicle tolls
charging method - will be implemented on the expressways
throughout Zhejiang Province from 15 May 2012 onwards. In
particular, the toll-by-driving route policy for expressways
is expected to have a positive impact on the Group. On the
other hand, due to the steadily drop in inflation, the
possible relaxation of the monetary policy is likely to
impact China's stock market positively."
Mr. Chen concluded, "Entering into the second quarter of
2012, the Company's management will, as in the past, continue
to excel in its principal expressway operations, closely
monitor any changes in policies relevant to the industry so
as to adjust its business strategy and continue to identify
appropriate investment projects in the precondition of
controllable risk with a view to maximizing shareholder
value."
About Zhejiang Expressway Co., Ltd
Established in 1997, Zhejiang Expressway Co., Ltd. is
regarded by the Zhejiang Provincial Government as its main
enterprise for investment, development, operation,
maintenance and management of high-grade roads in Zhejiang
Province. The Company has concession rights to operate the
Shanghai-Hangzhou-Ningbo Expressway and the Shangsan
Expressway for a period of 30 years. The Company and its
subsidiaries also carry out certain ancillary businesses such
as automobile servicing, operation of gas stations and
billboard advertising along expressways, as well as the
securities business.
~ End ~ For further information, please contact:
Zhejiang Expressway Co., Ltd. Mr. Tony Zheng / Ms.
Helen Wu Tel : (86571) 8798 7700
Fax : (86571) 8795 0329
Hill+Knowlton Strategies Asia
Shirley Lo
Tel : (852) 2894 6214
Email : shirley.lo@hkstrategies.com
Brian Chan
Tel : (852) 2894 6240
Email : brian.chan@hkstrategies.com
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