Q 1 Net Profit Rises 16.58% to RMB274 million HONG KONG, April 29 /PRNewswire-Asia-FirstCall/ -- 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 for the year ended December 31, 2008 (the "Year") and the unaudited operating results for the first quarter ended March 31, 2009 of the Company and its subsidiaries (the "Group"). In 2008, operating revenues of the Group amounted to RMB11,689 million, representing an increase of 11.23% over 2007. Profit attributable to equity holders amounted to RMB1,224 million (2007: RMB1,431 million). The board of directors of the Company recommended the payment of a final cash dividend of RMB0.08 per share for 2008 (2007: RMB0.08 per share). In the first quarter of 2009, operating revenues of the Group amounted to RMB2,872 million, representing an increase of 10.41% over the corresponding period of 2008. Net profit attributable to equity holders of the Company was RMB274 million, an increase of 16.58% year-on-year. Mr. He Yuhua, Chairman of the Company said, "Impacted by domestic natural disasters and the global financial crisis, coupled with other factors including the expansion of the operating scale of the Company, continuous price increases in railway-related raw materials and an increase in finance costs, the Company faced tough challenges in operation and management during the Year. Although faced with various difficulties, through strengthening sales and marketing efforts to increase traffic and revenues, consolidating and enhancing transportation resources to improve transportation capacity and efficiency and actively controlling costs and expenses, the Company achieved a stable increase in transportation revenues during the Year as well as recording net profit growth in the first quarter of 2009." During the Year, passenger delivery volume of the Company was 83,824,700, a year-on-year increase of 14.74%. Revenue from passenger transportation rose 15.87% year-on-year to RMB6,759 million. Of such amount, the passenger delivery volumes of Guangzhou-Shenzhen trains, long-distance trains and Hong Kong Through Trains amounted to 32,082,700, 48,626,500 and 3,115,500 respectively, representing year-on-year increases of 29.76%, 7.73% and a decrease of 2.38% respectively and realizing revenues of RMB1,973 million, RMB4,406 million and RMB380 million respectively. Both passenger delivery volume and revenue of Guangzhou-Shenzhen trains increased, mainly because the large-volume operation of Chain Railway High-speed trains has built a competitive advantage of Guangzhou-Shenzhen trains. In addition, with the further optimization and integration of the transportation resources of Shenzhen-Guangzhou-Pingshi Railway, the connection between Guangzhou-Shenzhen trains and long-distance trains has been running more smoothly and efficiently. Meanwhile, the long holiday arrangement of three holidays (the Qingming Festival Holidays, the May Day Holidays and the Dragon Boat Festival Holidays) has also led to an increase in short-distance passenger traffic on the Guangzhou-Shenzhen trains. In respect of long-distance trains, despite the heavy rains and snowstorms at the beginning of the Year, which led to a substantial decrease in the delivery volume of long-distance passengers during the Lunar New Year, passenger delivery volume and revenue increased considerably during the Year. The growth was mainly attributable to a year-on-year increase in transportation capacity resulting from the successful commencement of operation of passenger trains from Shenzhen to Shaoguan and from Guangzhou to Zhengzhou, as well as the full operation of trains from Guangzhou to Shanghai and from Guangzhou to Xi'an. Furthermore, in the fourth quarter of 2008, the large number of migrant workers in Guangdong Province returning home earlier than the previous years also led to a year-on-year increase in passenger delivery volume. In respect of Hong Kong Through Trains, the year-on-year decreases in its passenger delivery volume and revenues were mainly attributable to the large-scale operation of the Company's Guangzhou-Shenzhen trains that has diverted a portion of Through Train passengers. Meanwhile, the global financial crisis led to a decline in the number of business and tourist traveling between Guangdong and Hong Kong. During the Year, tonnage of freight transported by the Company amounted to 70.1411 million tonnes (2007: 71.0103 million tonnes). Revenues from freight transportation reached RMB1,325 million (2007: RMB1,326 million). The slight decreases in the Company's tonnage of freight and revenues from freight transportation were mainly attributable to a year-on-year decrease in the Company's outbound freight tonnage caused by heavy rains and snowstorms at the beginning of the Year, the upgrading of the Pearl River Delta's industry structure and the global financial crisis. Looking forward to the Company's development in 2009, Mr. He said, "2009 is a year with opportunities and challenges. On the one hand, with the implementation of the State's investment plan of RMB4 trillion, the issue of the "Reform and Development Planning Outline for the Pearl River Delta Region" and the implementation of the "Medium to Long Term Railway Network Planning Adjustment Proposal", the scope and transport capacity of railway networks will be constantly enlarged and the quality of railway transport will be greatly improved. On the other hand, with a slowdown trend of the global economy, the overall growth rate of the railway transport industry will inevitably slow. Faced with the opportunities and challenges, the Company will leverage its geographic and competitive advantages, strengthen production safety, enhance and integrate resources, capitalise on the benefits of its operating scale, and enhance efforts in passenger and freight marketing, thereby creating good operating results." 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. The Company holds the sole operating rights of the Guangshen Railway, one of the most modern railways in the PRC. The Company is mainly engaged in railway passenger and freight transportation businesses between Guangzhou and Shenzhen, 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, 2008, the Company operated 239.5 pairs of passenger trains in accordance with its daily train schedules, including 120 pairs of high-speed trains between Guangzhou and Shenzhen (of which 34 were stand-by pairs), 106.5 pairs of long-distance trains, and 13 pairs of Guangzhou-Hong Kong through-trains. Enclosed: (1) Condensed Consolidated Income Statement for 2008 (audited) (2) Consolidated Statement of Profit for the First Quarter of 2009 (unaudited) http://www.prnasia.com/xprn/sa/attachment/2009/04/20090429-486966.pdf For further information, please contact: Mr. Guo Xiangdong / Ms. Grace Deng Guangshen Railway Company Limited Tel: +86-755-2558-7920 / 2558-8146 Fax: +86-755-2559-1480 Ms. Edith Lui / Ms. Leona Zeng Rikes Hill & Knowlton Limited Tel: +852-2520-2201 Fax: +852-2520-2241 DATASOURCE: Guangshen Railway Company Limited CONTACT: Mr. Guo Xiangdong & Ms. Grace Deng, Guangshen Railway Company Limited at +86-755-2558-7920 or 2558-8146, or fax: +86-755-2559-1480; Edith Lui & Ms. Leona Zeng, Rikes Hill & Knowlton Limited at +852-2520-2201 or fax: +852-2520-2241

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