Guangshen Railway Announces 2012 Annual Results

HONG KONG, March 26, 2013 /PRNewswire/ -- Guangshen Railway Company Limited ("Guangshen Railway" or the "Company") (HKEx Share Code: 525; SSE Share Code: 601333; American Depositary Shares ("ADS") Ticker Symbol: GSH) today announced the audited operating results of the Company and its subsidiaries (the "Group") for the twelve months ended December 31, 2012 (the "Period").

During the Period, operating revenue of the Company reached RMB15,092 million, an increase of 2.73% year-on-year. Profit attributable to equity holders amounted to RMB1,319 million. Basic earnings per share came to RMB0.19. The board of directors of the Company recommends a final dividend of RMB0.08 for 2012 (2011: RMB0.10 per share), accounting for 42.11% of the basic earnings per share of this year.

Guangshen Railway said, "In 2012, the PRC economy has slowed due to the combined influence of complicated and changing domestic and overseas market conditions. Facing lower demand in the railway transportation industry and the unfavorable operating environment caused by the dilution in the client base by Express Rail Links, the management strictly upheld the Company's operating objectives, accelerated migration of operation development mode, vigorously improved infrastructure safety proactively promoted the strategy of diversified operation, stepped up regulation of operation management, strived to enhance the quality of services, and stimulated the Company's healthy development."

During the Period, the Company recorded passenger delivery volume of 84.5987 million persons, marking a year-on-year decrease of 6.86%. Revenue from passenger transportation decreased by 2.31% year-on-year to RMB 7,841 million. The passenger delivery volumes of Through Trains increased 2.75% year-on-year to 3.7641 million, and the passenger volumes of long-distance trains amounted to 45.0504 million, a year-on-year decrease of 6.38%. Through Trains and long-distance trains realized revenues of RMB 4,987 million and RMB 480 million, respectively, marking year-on-year increases of 0.57% and 4.16%. The passenger delivery of Guangzhou-Shenzhen trains decreased by 8.35% to 35.7841 million, realizing revenue of RMB 2,374 million.

The lower passenger delivery volume and revenue of Guangzhou-Shenzhen intercity trains were mainly due to the decrease in number of trains in operation due to some CRHs being successively sent back to depot for inspection and repair as they reached the repair level for phase 4 repair project, leading to a more significant decrease in the transportation capacity of inter-city trains. In addition, more stringent controls on passenger train overloading and the opening and operation of the Beijing-Guangzhou High-speed Railway also reduced and diluted a portion of the Company's client base.

During the Period, freight tonnage (outbound and inbound) was 62.6711 million tonnes, a dip of 8.78% year-on-year and generating revenue of RMB1,344 million, down 3.07% year-on-year. The dip in freight tonnage was mainly due to the weak economic recovery in the U.S., Europe and other developed countries, as well as slower economic growth in China, leading to lower freight volumes delivered by railway transportation. In addition, the commencement of operations of the Yiyang-Zhanjiang section of railway had diluted a portion of demand for freight transportation through the Beijing-Guangzhou Railway.

Revenue from railway network usage and services and other transportation services rose by 14.91% year-on-year to RMB4,891 million. The higher revenue from railway network usage services was mainly due to the increase in the number of long-distance trains operated by other railway bureaus (companies) that ran to or ran through various stations within the Company's railway tracks, and the increase in the unit settlement price for railway locomotive traction fees in China. The increase in revenues of railway operation services was mainly due to the rise in the provision of services to WGPR and GZIR, as well as the commencement to provide railway operation services to GSHER from December 26, 2011.

Looking forward into 2013, the Company said, "Despite the complex internal and external economic environment in China, driven by earlier austerity measures aimed at 'stable growth' and a new government focus on promoting a new batch of economic reforms, the domestic economy is likely to continue on its upward growth trajectory from the fourth quarter of 2012, and will continue to sustain steady growth. The Group's railway passenger and freight operations will also grow steadily amid the economic rebound and with the growing demand for passenger and freight transportation after the High-speed Railway is in operation after the completion of the railway network. The Company will maintain its focus on the Greater Pearl River Delta region, continue to enhance and optimize its business matrix, will have passenger and freight delivery as its core business and railway extension as a subsidiary business, and will improve service quality to realize the Company's development target of 'Being Great, Being Strong'."

In the area of passenger transportation, in view of new market deployment after Guangzhou-Shenzhen-Hong Kong Express Rail Links commenced operation, the Company will increase the marketing efforts for the Guangzhou-Shenzhen section of passenger transportation, enhance the operating plan of Guangzhou-Shenzhen section, expedite the establishment of new inter-city passenger transportation business at Pinghu stations. On the other hand, we will leverage on the opportunities brought by the completion of reconstruction and commencement of operation of Shenzhen East station in order to enhance the operating plans for long-distance trains in the Shenzhen region, and improve the transportation capacity and transportation efficiency of long-distance trains.

In the area of the freight business, the Company will fully capitalize the opportunities of release of the freight transportation capability of Beijing-Guangzhou line, optimize and consolidate the freight transportation resources within the channel, research and innovate new model of freight transportation operation, introduce new marketing systems, and promote the logisticization and marketization of the freight yards. Meanwhile we will advance the reform of freight transportation organization, build an e-commerce platform for freight transportation, adjust the model of services and to enhance the quality of service.

For the 2012 Annual Results Main Accounting Data, please visit: http://www.prnasia.com/sa/attachment/2013/03/20130326213057305687.pdf.

About Guangshen Railway Company Limited

Guangshen Railway Company Limited was established in March 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 in May 1996. In December 2006, the Company returned to the A share market and successfully listed its shares on the Shanghai Stock Exchange. The Company is currently the only PRC railway enterprise with its shares listed on the Shanghai, Hong Kong and New York stock exchanges. The Company is engaged in the railway passenger business between Shenzhen, Guangzhou and Pingshi, providing Guangzhou-Shenzhen inter-city train service, long-distance passenger transportation service, freight transportation service, and the Hong Kong Through Train passenger service in cooperation with MTR Corporation in Hong Kong, as well as entrustment transportation service for other domestic railway companies. As at December 31, 2012, the Company operated 233.5 pairs of passenger trains in accordance with its daily train schedules, including 105 pairs of Guangzhou-Shenzhen trains (includes 19 pairs of spare trains), 13 pairs of Hong Kong Through Trains (Canton-Kowloon Through Train: 11 pairs, Zhaoqing-Kowloon Through Train: 1 pair and Beijing (Shanghai)-Kowloon Trough Train: 1 pair), and 115.5 pairs of long-distance trains.

For further enquiries, please contact

SOURCE Guangshen Railway Company Limited

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED