2018-3-22
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Yuexiu Traffic Infrastructure Published Its 2014 Interim Results Announcement
Release Date:2014-09-18 11:35:56
 

(August 21, 2014, from Hong Kong) Today, Yuexiu Traffic Infrastructure Limited (hereinafter referred as "Yuexiu Traffic Infrastructure" or "the Corporation" for short; Stock number: 1052) declared the achievements of the Corporation and its affiliated companies ("the Group") in the 6 months up to June 30, 2014.

During the report period, Guangdong Province' economical operation was stable, and the economic structure kept on adjustment and optimization. In addition, Guangdong Province has already implemented the highway networking and weight-based tolling policy for the whole province according to schedule. And it is predicted that it will bring about a promoting role to the project operation of the corporations under the group in the Pearl River Delta in Guangdong Province. Despite the fact that the group's all highway and bridge projects have practiced the new "Green Channel Free-of-charge Policy" according to the state's regulations, and the "Free-of-charge Policy for Seven-seat or Smaller Passenger Cars in Major Holidays", which has reduced the income from road fees, the income from road fees in our group has still kept stable growth, with the year-on-year growth rate reaching about RMB 877 million Yuan. The profit for the shareholders has amounted to about RMB 291 million Yuan, with a year-on-year increase rate of 13.8%.

The board of directors decided to apportion the mid-term dividend of 2014 as 0.11 Hong Kong dollar per share, which is equivalent to RMB 0.08735 Yuan per share (the mid-term dividend of 2013 was: 0.10 Hong Kong dollar per share, being equivalent to RMB 0.079542 Yuan), and the medium-term dividend payout ratio is equivalent to 50.3%.

Board Chairman of Yuexiu Traffic Infrastructure, Mr. Zhu Chunxiu, said: "In retrospect to the first half year of 2014, facing the complicated situation home and abroad, the Chinese government persisted in the general keynote of working characterized by "seeking stability in slowness, and seeking progress in stability", thus, the scale of fixed assets investment in traffic kept a high position, and the total traffic demand of the country remained stable. Our group company tried our best to improve our project operation, and enhance our core ability in operation. During the period, the total traffic stream for charge collection and road fee income in our projects kept stable growth in comparison with the previous year on the whole. The road fee income of the six projects of ours kept a two-digit growth, including the express highway of North Second Ring of Guangzhou, the Han-Xiao express highway of Hubei Province, Chang-Zhu express highway of Hunan Province, express highway of West Second Ring of Guangzhou, Humen Bridge, and Qing-Lian Highway. Our achievements were satisfactory."

Looking forward to the second half year, we can see the policy environment of the toll road industry will continue to become better stably, it is not likely that some government sectors concerned will continue to issue any negative measures. Judging from the lately issued highway construction programs, the future development of state economy will still have a great potential demand for the construction of highway network. While introducing private capital supporting projects actively, the government will give more consideration to how to ensure the legitimate interests and reasonable return of the private capital.

Our group company believes: the projects under our banner, such as North Second Ring Highway of Guangzhou, Xi-Lin Highway of Shaanxi, North Ring Highway of Guangzhou, Humen Bridge, Shantou Bay Bridge and so on, will continue to become the major sources of stable profit of our group company. Along with the escalation of the asset maturity of our projects bought in recent years, such as Han-Xiao Highway of Hubei, Chang-Zhu Highway of Hunan, and Wei-Xu Highway of Henan in middle China, we estimate they will gradually become new profit growth points of our group company. On the other hand, after the whole province of Guangdong realized highway networking and began to practice the weight-based tolling policy, we estimate, the operation performance of North Second Ring Highway of Guangzhou, West Second Ring Highway of Guangzhou and other projects will be further improved.

In summing up, Mr. Zhu Chunxiu said: "Looking ahead, our group company will continue to optimize the existent investment strategy. In the Pearl River Delta and the middle and western provinces whose economy is relatively more mature, we shall grasp the investment opportunities emerging from the industry, try our best to purchase some large-scaled high-quality highway construction projects, to expand our asset scale, income scale and profit scale. At the same time, we shall dispose the assets with a low efficiency, optimize our group's overall asset structure, so as to upgrade the return rate of our net assets and bring about reasonable return for our shareholders."