The Guangshen Railway, one of the most modern railways in the PRC announced their 2010 results on Thursday.
The railway is mainly engaged in railway passenger and freight transportation businesses between Shenzhen, Guangzhou and Pingshi, long-distance passenger transportation services, and the Hong Kong Through Train passenger service in cooperation with MTR Corporation in Hong Kong. As at December 31, 2010, the Company operated 224 pairs of passenger trains in accordance with its daily train schedules, including 110 pairs of Guangzhou-Shenzhen trains, 101 pairs of long-distance trains, and 13 pairs of Hong Kong through-trains.
In 2010, under International Financial Reporting Standards (IFRS), operating revenues of the Company amounted to RMB13,484 million, representing an increase of 8.87% over the previous year. Profit attributable to equity holders amounted to RMB1,486 million, an increase of 10.70% year-on-year. Basic earnings per share amounted to RMB0.21 (2009: RMB0.19). The board of directors of the Company recommended the payment of a final cash dividend of RMB0.09 per share for 2010 (2009: RMB0.08 per share), accounting for 42.86% of the basic earnings per share of the Year.
Mr. Xu Xiaoming, Chairman of the Company said, "In 2010, with the global economy continuing to improve, the PRC's macro-economy recovered significantly. Benefiting from the gradual release of freight transportation capacity on the Wuhan-to-Guangzhou section of the Beijing-Guangzhou Railway, and the success of the Shanghai World Expo and the Asian Games in Guangzhou, the demand of passenger and freight delivery in the Company's main operating area increased steadily. Faced with an advantageous operating environment, the Company continuously strengthened its marketing strategies, timely adjusted its transportation structure, rationally improved transportation resources and stringently controlled costs and expenses. The Company achieved safety and stability in its transportation operation with steady increases in transportation revenue and profitability."
Both passenger delivery volume and revenue of Guangzhou-Shenzhen trains increased, mainly because the volume of business and leisure travels between the mainland region and the Pearl River Delta region has increased thanks to a recovery of the Guangdong/Hong Kong/Macau's regional economy. Added on top is the fact that the Guangzhou-Shenzhen inter-city express trains continued to implement the stop-at-all-stations operating model, thereby boosting passenger volume. In addition, since June 18, 2010, the cost of a one-way ticket of the Guangzhou-Shenzhen inter-city trains was raised to RMB5, leading to an increase in transportation income; and since July 1, 2010, the number of the Guangzhou-Shenzhen inter-city trains increased to 110 pairs, leading to an increase in the overall capacity.
In respect of long-distance trains, after the launching of the Wuhan-to-Guangzhou high-speed railway, in order to optimize railway transportation resources, the Company cancelled part of the long-distance trains which used to run between Wuhan and Guangzhou, resulting in a slight year-on-year decrease in passenger delivery volume of long-distance trains in 2010. The revenue from long-distance trains recorded an increase mainly because the Company increased pairs of long-distance trains and the occupancy rate of long-distance trains operated by the Company increased, thereby leading to an increase in passenger volume of the trains operated by the Company.
Guangshen Railway Company Limited was established in 1996. The H shares and ADS issued by the Company were listed on The Stock Exchange of Hong Kong Limited and the New York Stock Exchange respectively in May 1996. The Company is currently the only PRC railway enterprise with its shares listed overseas. In December 2006, the Company returned to the A share market and successfully listed its shares on the Shanghai Stock Exchange.
SOURCE Guangshen Railway Company Limited
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