By a News Reporter-Staff News Editor at China Weekly News -- Guangshen Railway Company Limited ("Guangshen Railway" or the "Company") (HKEx Stock Code: 525; SSE Stock Code: 601333; American Depositary Shares ("ADS") Ticker Symbol: GSH) announced the unaudited results of the Company and its subsidiaries (the "Group") for the six months ended June 30, 2014 (the "Period").
During the Period, in accordance with International Financial Reporting Standards ("IFRS"), operating revenue of the Company reached RMB7,168 million, with revenue from passenger transportation, freight transportation, railway network usage and other transportation related services, and other businesses accounting for 48.84%, 11.86%, 33.39% and 5.91% of the total revenue, respectively. Profit from operations was RMB527 million, and consolidated profit attributable to equity holders was RMB329 million. Basic earnings per share was RMB0.05.
Guangshen Railway said, "The first half year of 2014 was an important period for intensified adjustments in the domestic and international macroeconomies, with recovery taking place in Europe and the US at a moderate pace. The Chinese government persisted in its core strategy of making progress while maintaining stability in social and economic development. Despite the impact of decelerated domestic economic growth, increased efforts in industrial restructuring in the Pearl River Delta region and intensified competition, which brought about a slowdown in overall demand in the transportation market, the Company continued to adhere to the operating objectives established by the Board of Directors at the start of the year, promoted safety and risk management, accelerated the transformation of the Company's operations and development model, further regulated operations management and improved service quality, which helped us to ensure the security and stability of our transportation operation and our overall business."
During the Period, the Company recorded passenger delivery volume of 42.76 million persons. Revenue from passenger transportation was RMB3,501 million. Of this, passenger delivery volume of Through Trains was 1.95 million, and passenger volume of long-distance trains amounting to 23.02 million. Through Trains realized revenue of RMB261 million, marking a year-on-year increase of 10.21%, while revenue from long-distance trains amounted to RMB1,968 million. The passenger delivery volume of Guangzhou-Shenzhen trains amounted to 17.80 million, realizing revenue of RMB1,044 million. The passenger transportation revenue was affected by the implementation of the pilot policy within the railway transportation industry in which business tax has been replaced with value-added tax ("BT to VAT") since January 1, 2014.
During the Period, freight transportation revenue increased by 32.54% year-on-year to RMB850 million and freight tonnage (outbound and inbound) reached 24.64 million tonnes. The increase in freight transportation revenue was mainly due to the acquisition of the freight transportation business and assets related to luggage transportation previously operated by the Dalang Handling Station of China Railway Container and the Guangzhou Branch Company of China Railway Express. In addition, the freight transportation business of the Guangzhou-Pingshi section of the Beijing-Guangzhou Railway raised the price of freight transportation.
In respect of railway network usage and other transportation related services, the business recorded revenue of RMB2,394 million. Although revenue from railway network usage services declined, revenue from other transportation related services increased by 38.94%, mainly due to an increase in related revenue subsequent to an increase in the provision of railway operation services to highspeed trains by the Company during the reporting period.
Looking forward to the second half of 2014, the Company stated that "Despite the challenging operating environment, the Company will continue to drive the restructuring of its transportation business; to develop its core businesses of passenger transportation and freight transportation; to enhance the management of railway operation and services; to reinforce operations, development and management;, and to further promote diversified development."
In respect of passenger transportation, the Company will continue to tap into the potential of the passenger transportation market, further enhance the operating plans of the Guangzhou-Shenzhen inter-city express trains and extraordinary holiday passenger trains, and fully leverage the transportation potential of Dongguan station and Shenzhen East station to increase the running of long-distance passenger trains. In addition, the Company will optimize the organization and management of passenger transportation, capitalize on the advantages of shared resources and numerous selling points under joint network ticketing, and increase the selling of return tickets and cross-region tickets.
In respect of freight transportation, the Company will fortify reforms in the freight transportation, improve the services and facilities for freight transportation, and enhance the progress of the renovation of the goods yards at Dalong station, Yingde station, Shaoguan East station and other stations.
The Company will also continue to promote diversified operations, and will establish and commence CRH express transportation services at stations within the Company's channels, including Guangzhou station and Shenzhen station, by taking advantage of the high frequency, high passenger volume, safety and high speed of the Guangzhou-Shenzhen inter-city express trains. The Company will also carry out preliminary research and preparatory work for consolidated land development pursuant to the relevant national policy to improve its overall competitiveness.
For the 2014 Interim Results Main Accounting Data, please visit: http://photos.prnasia.com/prnk/20140821/8521404710
Keywords for this news article include: Asia, China, Guangshen Railway Company Limited.
Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC