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Yuexiu Transport Infrastructure Announced the 2015 Interim Results
Release Date:2015-09-09 16:33:25

Another New High in the Business Performance and Increase by 10.5% in the Profit Attributable to Shareholders

On August 13, 2015, Yuexiu Transport Infrastructure announced its interim results as of June 30, 2015 as follows:

During the reporting period, Yuexiu Transport achieved another new high in the overall business income, with an increase of 6.2% on year-on-year basis to RMB 932 million. The profit attributable to shareholders amounted to RMB 321 million, with an increase of 10.5% on year-on-year basis.  In particular, GNSR Expressway achieved a significant double-digit percentage growth in net profit contribution. Hunan Changzhu Expressway posted a year-on-year growth of nearly 17% in toll revenue despite the ongoing renovation work. The growth in toll revenue was a high double-digit percentage growth and helped to narrow the loss by 48.5%.

The Board resolved to declare an interim dividend of HK$ 0.12 per share for the first half year of 2015, equivalent to RMB 0.0956832 per share (1H 2014: HK$ 0.11 per share, equivalent to RMB 0.087350 per share). This also represents an interim dividend payout ratio of 49.9%, reflecting the Company's stable and consistent dividend policy.

Mr. Zhu Chunxiu, Chairman of Yuexiu Transport Infrastructure, said, “Although the international economic environment was still full of uncertainties, the domestic transport industry continued to develop steadily.  In the first half year of 2015, the highway passenger transportation turnover and freight turnover increased by 3.1% and 6.4% on year-on-year basis respectively. The investment in fixed transport assets remained significant, with RMB 646.9 billion already invested in highway construction, which represented a year-on-year increase of 10.2%, reflecting the important role that investment in transport has been successfully playing in stabilizing growth.”

Looking into the future, the Company's existing asset portfolio will maintain steady growth. Well-developed projects of the Company within the Guangdong province, including GNSR Expressway, Humen Bridge and Guangzhou Northern Ring Expressway will still be the main sources of stable profit. Projects acquired in central China in recent years will gradually mature over time and their contributions to the Company's profit will gradually increase.  In addition, the relevant approval procedures for Hubei Suiyuenan Expressway acquired in December 2014, were completed in July 2015 and the expressway has been officially taken over by the Company. It is expected that Hubei Suiyuenan Expressway will bring new growth driver for the Company after consolidation.

During the reporting period, the Company successfully issued guaranteed notes in an aggregate principal amount of 200 million for a term of three years with a coupon rate of 1.625% overseas, which expanded the sources of financing.   The Company has a relatively strong capability of raising fund because of strong cash flow generated from the expressways under jurisdiction and its high credit ratings.  In the future, the Company will still continue to leverage its advantage of cross-border financing platform to tap diverse financing channels and reduce consolidated financing costs on the basis of sound exchange risk control.

Mr. Zhu Chunxiu concluded, “Upon completion of the acquisition of Suiyuenan Expressway, the Company will focus on exploiting the potential of existing assets through measures such as controlling costs by strengthening operation management and lowering financial expenses by reducing liabilities in order to improve operational efficiency. On the other hand, the Company will fully review and evaluate its existing asset portfolio and will consider disposing of those assets which have been operating with low efficiency or have shown no improvement for a long time. Through optimizing the asset portfolio and improving the overall efficiency, the Company will continuously create reasonable return for the shareholders.”