WEB NEWS Comments & Business Outlook
GUANGSHEN RAILWAY COMPANY LIMITED AND SUBSIDIARIES
FOR THE YEARS ENDED DECEMBER 31, 2012, 2013 AND 2014
(Amounts in thousands, except per share and per ADS data)
Years ended December 31
Note
2012
2013
2014
2014
RMB
RMB
RMB
US$*
Revenue from Railroad Businesses
Passengers
7,841,091
8,058,291
6,988,288
1,126,308
Freight
1,344,113
1,603,288
1,763,679
284,253
Railway network usage and other transportation related services
4,890,640
5,034,676
5,031,241
810,889
14,075,844
14,696,255
13,783,208
2,221,450
Revenue from other businesses
1,016,042
1,104,422
1,017,573
164,003
Total revenue
15,091,886
15,800,677
14,800,781
2,385,453
Operating expenses
Railroad businesses
Business tax
(340,035
)
(357,824
)
(61,021
)
(9,835
)
Labour and benefits
28
(3,516,589
)
(3,932,120
)
(4,441,615
)
(715,858
)
Equipment leases and services
(4,022,514
)
(4,166,329
)
(3,629,757
)
(585,011
)
Land use right leases
36(b)
(54,800
)
(56,000
)
(53,962
)
(8,697
)
Materials and supplies
(1,532,559
)
(1,587,251
)
(1,310,106
)
(211,151
)
Repair and facilities maintenance costs, excluding materials and supplies
(696,884
)
(501,711
)
(905,540
)
(145,947
)
Depreciation of fixed assets
(1,358,527
)
(1,392,010
)
(1,405,580
)
(226,538
)
Amortisation of leasehold land payments
(15,001
)
(15,001
)
(18,245
)
(2,941
)
Social services charges
(93,090
)
(67,990
)
(12,430
)
(2,003
)
Utility and office expenses
(107,216
)
(71,525
)
(74,740
)
(12,046
)
Others
(525,806
)
(731,055
)
(816,832
)
(131,649
)
(12,263,021
)
(12,878,816
)
(12,729,828
)
(2,051,676
)
Other businesses
Business tax
(32,845
)
(37,098
)
(29,957
)
(4,828
)
Labour and benefits
28
(458,349
)
(493,072
)
(469,273
)
(75,633
)
Materials and supplies
(317,738
)
(338,547
)
(306,128
)
(49,339
)
Depreciation of fixed assets
(23,877
)
(22,002
)
(23,694
)
(3,819
)
Amortisation of leasehold land payments
(987
)
(920
)
(919
)
(148
)
Utility and office expenses
(132,581
)
(156,914
)
(192,162
)
(30,971
)
(966,377
)
(1,048,553
)
(1,022,133
)
(164,738
)
Total operating expenses
(13,229,398
)
(13,927,369
)
(13,751,961
)
(2,216,414
)
Other income and other gains—net
29
71,815
14,903
7,138
1,150
Profit from operations
1,934,303
1,888,211
1,055,958
170,189
Finance costs
30
(187,073
)
(191,686
)
(180,373
)
(29,071
)
Share of results of associates
11
10,906
5,228
5,048
814
Profit before income tax
1,758,136
1,701,753
880,633
141,932
Income tax expense
31
(441,151
)
(430,670
)
(219,507
)
(35,378
)
Profit for the year
1,316,985
1,271,083
661,126
106,554
F-5
GUANGSHEN RAILWAY COMPANY LIMITED AND SUBSIDIARIES
CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2012, 2013 AND 2014
(Amounts in thousands, except per share and per ADS data)
Years ended December 31,
Note
2012
2013
2014
2014
RMB
RMB
RMB
US$*
Profit for the year
1,316,985
1,271,083
661,126
106,554
Other comprehensive income, net of tax
—
—
—
—
Total comprehensive income for the year, net of tax
1,316,985
1,271,083
661,126
106,554
Profit attributable to:
Equity holders of the Company
1,318,938
1,273,841
662,021
106,698
Non-controlling interests
(1,953
)
(2,758
)
(895
)
(144
)
1,316,985
1,271,083
661,126
106,554
Total comprehensive income attributable to:
Equity holders of the Company
1,318,938
1,273,841
662,021
106,698
Non-controlling interests
(1,953
)
(2,758
)
(895
)
(144
)
1,316,985
1,271,083
661,126
106,554
Earnings per share for profit attributable to the equity holders of the Company during the year
- Basic and diluted
32
RMB0.19
RMB0.18
RMB0.09
US$
0.01
Earnings per equivalent ADS
- Basic and diluted
32
RMB9.31
RMB8.99
RMB4.67
US$
0.75
Management Discussion and Analysis
Revenue
In 2014, our total revenue was RMB14,800.8 million, representing a decrease of 6.3% from RMB15,800.7 million in 2013. Our revenue from railroad passenger transportation service, freight transportation service and railway network usage and other transportation-related services was RMB6,988.3 million, RMB1,763.7 million and RMB5,031.2 million, respectively, accounting for approximately 47.2%, 11.9% and 34.0% of our total revenue in 2014, respectively.
Passenger transportation. Revenue from passenger transportation accounted for 47.2% of our total revenue and 50.7% of our railroad business revenue in 2014. As of December 31, 2014, we operated 233.5 pairs of passenger trains each day, including 105 pairs of intercity high-speed passenger trains between Guangzhou and Shenzhen (including 19 stand-by pairs), 13 pairs of Hong Kong Through Trains (including 11 pairs of Canton-Kowloon Through Trains, 1 pair of Zhaoqing-Kowloon Through Trains and 1 pair of Beijing/Shanghai-Kowloon Through Trains) and 115.5 pairs of long-distance trains.
In 2014, the total number of our passengers was 90.1 million, representing a decrease of 1.0% from 91.0 million in 2013. Our passenger transportation revenue was RMB6,988.3 million in 2014, representing a decrease of 13.3% from RMB8,058.3 million in 2013. The decrease in passenger volume was primarily due to the establishment of the “four horizontal and four vertical” high-speed railway network. The increasing number of high speed railways between the Pearl River Delta Area and other major cities in Mainland China is drawing away passengers from the existing railway network in the Guangzhou-Shenzhen area, especially the Guangzhou-Shenzhen Intercity Railway, with growing adverse effects on our passenger volumes. The decrease in revenue from passenger volume was primarily due to: (i) the extension of the Pilot Scheme to railway transportation industry from January 1, 2014. Value-added tax is a tax on top of but distinct from price. According to the relevant accounting standard in the PRC and overseas, operating revenues should be recognized after deducting value-added tax. As our income and pricing scheme remained unchanged after the implementation of the Pilot Scheme, the deduction of value-added tax from income from the original pricing scheme resulted in lower revenue as compared with the same period last year; (ii) long-distance train services for the Guangzhou-Liuzhou route and the Shenzhen(East)-Shanghai(South) route were terminated pursuant to a nationwide railway network adjustment in 2013, which resulted in a year-on-year decrease in the relevant revenue; and (iii) during the reporting period, the decrease in passenger volume in 2014.
Freight transportation. Revenue from our freight transportation accounted for 11.9% of our total revenue and 12.8% of our railroad business revenue in 2014.
Revenue from freight transportation business in 2014 was RMB1,763.7 million, an increase of 10.0% from RMB1,603.3 million in 2013. This increase in freight revenue was mainly due to (i) on November 30, 2013, we acquired the container transportation-related cargo business and assets originally owned by Dalang Handling Station of CRC, resulting in a year-on-year increase in related revenues; (ii) freight transportation-related services and revenues, such as retrieval and delivery of goods and cargo handling, was reclassified as freight transportation services and revenues, under the “One Price Policy” implemented on June 15, 2013; and (iii) since February 15, 2014, the unified national railway freight transportation fee has been increased by 1.5 cents per ton kilometer. The freight transportation of Beijing-Guangzhou railway Guangzhou-Pingshi section, which we operate, has adopted a unified fee. The total tonnage of freight we transported in 2014 was 51.6 million tons, representing a decrease of 13.4% from 59.6 million tons in 2013. This decrease in freight volume was mainly due to (i) factors including the slowdown of economic growth in China and the economic shift of the industry structure towards technology-driven business in the Pearl River Delta region, which contributed to a decrease of goods volume transported via the railway network; and (ii) Guangzhou-Zhuhai Railway, which has been drawing away freight transportation demand from the Guangzhou-Shenzhen area since commencing operations.
Railway network usage and other transportation-related services. Revenue from our railway network usage and other transportation-related services accounted for 34.0% of our total revenue and 36.5% of our railroad business revenue in 2014. Railway network usage and other transportation-related services mainly include locomotive traction, track usage, electric catenaries, vehicle coupling and other services. Revenue from our railway network usages and other transportation-related services business was RMB5,031.2 million in 2014, representing a decrease of 0.1% from RMB5,034.7 million in 2013. The decrease in revenue from railway network usage and other transportation-related services was principally due to (i) the reduction in the revenues after November 30, 2013, when we acquired the container transportation-related cargo business and assets originally operated by Dalang Handling Station of CRC, and the baggage and parcel transportation business operated by CRC Express Co. Ltd Guangzhou Branch; (ii) the Pilot Scheme, which was implemented for the railway transportation industry from January 1, 2014. Value-added tax is a tax on top of but distinct from price. According to the relevant accounting standard in the PRC and overseas, operating revenues should be recognized after deducting value-added tax. As our income and pricing scheme remained unchanged after the implementation of the Pilot Scheme, the deduction of value-added tax from income from the original pricing scheme resulted in lower revenue as compared with the same period last year; and (iii) during the reporting period, there was a drop in the prices for the national railway network usage services.
Other Businesses. Our other businesses mainly consist of the sale of materials and supplies, maintenance of trains, on-board catering services, labor services and other businesses related to railway transportation. Revenue from our other businesses was RMB1,017.6 million in 2014, representing a decrease of 7.9% from RMB1,104.4 million in 2013, primarily because freight transportation-related services and revenues, such as retrieval and delivery of goods and cargo handling, was reclassified as freight transportation services and revenues, under the “One Price Policy” implemented on June 15, 2013.
Profit attributable to equity holders of our Company
As a result of the above, our profit attributable to equity holders of our Company decreased by 48.0% to RMB662.0 million in 2013 from RMB1,273.8 million in 2013.
Comments & Business Outlook
Records Consolidated Profit Attributable to Equity Holders of RMB329 million
HONG KONG , August 21, 2014 /PRNewswire / -- Guangshen Railway Company Limited ("Guangshen Railway" or the "Company") (HKEx Stock Code: 525; SSE Stock Code: 601333; American Depositary Shares ("ADS") Ticker Symbol: GSH) today 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.
Comments & Business Outlook
HONG KONG, March 27, 2014 /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 year ended December 31, 2013 (the "Year").
In 2013, under International Financial Reporting Standards, the Company's operating revenue reached RMB 15,801 million, up 4.70% year-on-year. Consolidated profit attributable to equity holders reached RMB 1,274 million, with basic earnings per share of RMB 0.18. The Board of Directors recommends a final dividend of RMB 0.08 per share for 2013, which is equivalent to 44% of the basic earnings per share this year.
Guangshen Railway said, "In 2013, the Company kept a focus on its operational objectives and strived to overcome the impact of unfavorable factors such as slowing macroeconomic growth, sluggish demand in the railway freight transportation market, intense competition and frequent natural disasters. Through these efforts, the Company reinforced infrastructure safety and enhanced the operational plan for its trains. It also undertook reforms for the freight transportation organization, implemented measures to grow transportation volume and revenue, expanded the scope of diversified operations, and ensured the safety and stability of transportation and production. Operating revenue and passenger delivery volume increased while freight tonnage staged a rebound since July, reflecting the initial outcomes of the freight reform."
During the year, the Company recorded passenger delivery volume of 90.9568 million, up 7.52% year-on-year. Revenue from passenger transportation rose 2.77% year-on-year to RMB 8,058 million, of which passenger delivery volumes of through trains rose 3.86% year-on-year to 3.9094 million, and passenger volumes of long-distance trains reached 50.0683 million, up 11.14% year-on-year. Long-distance trains and through trains achieved revenues of RMB 5,144 million and RMB 498 million respectively, marking year-on-year increases of 3.15% and 3.76%. Passenger delivery volume of Guangzhou-Shenzhen trains rose 3.34% to 36.9791 million, delivering revenue of RMB 2,416 million.
The increase in delivery volume and revenues from passenger transportion of Guangzhou-Shenzhen inter-city trains, long-distance trains and through trains was mainly due to the significant increase in passenger delivery volume of long-distance trains. This was the result of the opening of a number of long distance train routes in 2012 and 2013, including that of Guangzhou-Yantai. In addition, Guangzhou-Shenzhen inter-city trains implemented a new train schedule from December 21, 2012 that increased the number of trains and hence contributed to an increase in the passenger delivery volume. Further, more travelers chose to travel to Hong Kong and Macau by the Canton-Kowloon Through Trains due to continuous appreciation of the Renminbi and the installation of more comfortable trains from December 21, 2012 for the Canton-Kowloon Through Trains.
Freight tonnage (outbound and inbound) was 59.5564 million tonnes during the Year, down 4.97% year-on-year mainly due to sluggish market demand for bulk goods such as metal ores, non-metal ores and coal arising from slower domestic economic growth and the State's increasing effort to restructure the industry. Moreover, part of the freight volume of Guangzhou Port was diverted to Gaolan Port, Zhuhai upon the opening and operation of GZR. The freight transportation business was RMB 1,603 million, up 19.28% year-on-year. The increase in revenue was mainly due to the implementation of reform of freight transportation organization for railways across the PRC in June 2013 (under which the Company has undertaken some of the freight transportation business and assets previously operated by the Guangzhou Branch Company of China Railway Express and the Dalang Handling Station of China Railway Container) as well as an increase of RMB 1.5 cents in average transportation cost of railway freight transportation across the PRC from February 20, 2013.
Revenue from railway network usage and services and other transportation related services rose 2.95% year-on-year to RMB 5,035 million. This was mainly due to an increase in railway operation services provided by the Company, related to increased train frequency of GZIR, WGPR and GSHER, as well as new railway operation services provided to GZR and XSR.
Looking ahead to 2014, the Company said, "In the long term, the railway transportation industry is expected to undergo a new period of development, where the capacity for railway passenger and freight transportation will grow. As the PRC maintains stable growth, the State's high-speed railway network, with four East-West Lines and four South-North Lines and numerous inter-city railways, will complete its construction and commence operation. The marketization reform of the railway industry will also be intensified. Further, the competitive structure of the railway transportation industry is expected to undergo substantial changes in the future, with more intense competition not only from other industries such as highway, aviation and water transportation industries, but also within the industry itself.
"Under the sound leadership of the Board, the Company will leverage the historic opportunity of extensive railway construction and proactively adapt to the railway system reforms, to establish a steadfast foothold in the Pan Pearl River Delta. Further, the Company will enhance its business portfolio centered around railway passengers and freight transportation, complemented by the railway-related businesses. With an eye to become a top-notch railway transportation services enterprise in the PRC of increased scale and enhanced strengths, the Company will also focus on improving service quality as well as management innovation and technology innovation."
With respect to its passenger transportation business, the Company will strive to enhance the operational plan of Guangzhou-Shenzhen inter-city passenger trains, to expedite the construction of the Pinghu inter-city passenger transportation station. It will spare no effort to further explore new growth opportunities for the Guangzhou-Shenzhen intercity passenger trains. The Company will also fully leverage on the transportation potential of Dongguan station and Shenzhen East station to enhance the operational plan of long-distance trains in the Dongguan and Shenzhen regions, step up marketing for the passenger transportation services of the Canton-Kowloon Through Trains in response to rising numbers of Mainland visitors to Hong Kong, improve the hardware for passenger transportation services as well as raise the quality of passenger transportation services to cater to travelers' needs.
With respect to freight transportation, the Company will step up the reforms of freight transportation organization to promote the expansion of a fully open and demand-oriented freight business, which is driven by logistics and a market-centric orientation. The Company will also identify emerging freight transportation markets and improve the competitiveness of the railway on the high value-added freight transportation market.
Comments & Business Outlook
HONG KONG, August 22, 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 its unaudited operating results for the six months ended June 30, 2013(the "Period") of the Company and its subsidiaries (the "Group").
During the Period, operating revenue of the Company reached RMB7,626 million, an increase of 8.77% year-on-year. Profit from operations was RMB959 million, down 3.23% year-on-year. Profit attributable to equity holders amounted to RMB649 million, a decline of 4.33% year-on-year. Basic earnings per share came to RMB0.09. The board of directors of the Company does not recommend the payment of any interim dividend for 2013.
In the first half of 2013, the PRC economic growth 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 and strived to enhance the quality of services. These measures have helped the Company successfully realized the safety and stability of transportation production and a moderate increase in the transportation revenue. However, due to higher expenses for railway network usage settlement, higher labor costs and significant decrease in net cash flows from investment activities, profitability has been impacted.
During the Period, the Company recorded passenger delivery volume of 44.84 million persons, marking a year-on-year increase of 5.71%. Revenue from passenger transportation increased by 6.50% year-on-year toRMB3,985 million. Of which, the passenger delivery volumes of Through Trains increased 3.06% year-on-year to 1.87 million, and the passenger volumes of long-distance trains amounted to 26.02 million, a year-on-year increase of 10.90%. Through Trains and long-distance trains realized revenues of RMB237 million andRMB2,574 million, respectively, marking year-on-year increases of 5.14% and 10.92%. The passenger delivery ofGuangzhou-Shenzhen trains decreased by 0.53% to 17.95 million, realizing revenue of RMB1,174 million.
The increase in passenger transportation was mainly due to a relatively significant period-on-period increase in the passenger delivery volume upon the successive opening of long-distance trains to Nanning and Chengduafter the commencement of operation of Shenzhen East station on December 21, 2012. Meanwhile, there was replacement in new trains for the Canton-Kowloon Through Trains. The opening of Shenzhen-Shanghai South and Guangzhou-Yantai long distance trains by the Company from July 1, 2012 also contributed to the increase.
During the Period, freight tonnage (outbound and inbound) was 28,262,406 tonnes, a dip of 7.51% year-on-year and generating revenue of RMB642 million, down 4.60% year-on-year. The decrease in freight volumn was mainly due to the sluggish market demand for bulk goods such as metal ores, non-metal ores and coal under the impact from factors including the decelerated domestic economic growth and the State's continuously increasing effort on industry and organization adjustments. Therefore the inbound freight volume decreased which led to the drop in the revenue from inbound freight transportation.
In respect of railway network usage and other transportation related services, the business recorded revenue ofRMB2.499 million, up 16.40% year-on-year. The prominent increase in revenue from railway network usage services was mainly due to the increase in service volume and unit price of locomotive traction services that led to an increase in revenue from locomotive traction services. The Revenue from railway operation services increased 6.84%, mainly due to the increase in the provision of railway operation services provided by the Company to GZIR under the increased frequency of trains run by GZIR. The revenue from other transportation services decreased by 30.82%, mainly due to the fact that a majority of locomotives and passenger cars of the Company leased to other railway bureaus (companies) were returned upon expiry during the reporting period that led to a decrease in revenue from the usage of locomotives and passenger cars.
Looking forward to its development in the second half of 2013, the Company said: "despite the unlikeliness of significant change in both domestic and overseas economic downturn situations, with the completion and commence of operation of a series of high-speed railways and inter-city railways and the gradual advancement of national rail freight organizational reform, railway passenger delivery volume in the PRC will maintain faster growth, and freight volume is hoped to record turnaround. The Company will continue to follow the sound leadership and scientific decisions of the Board under the guidance of scientific development and resilience to market changes, and on the other hand persevere in the principle of 'reinforcing the foundation, enhancing the quality, expanding the market, invigorating the operation, enhancing the systems and regulating the management', fulfill the responsibilities as a market corporate, adjust its mode of development, fortify the safety foundation, regulate the management of operation, enhance the quality of service, and strive to maintain the stability of transport production and continuous growth in transportation revenue."
In respect of passenger transportation, the Company will further increase the marketing efforts for theGuangzhou-Shenzhen section of passenger transportation, to enhance the operating plan of Guangzhou-Shenzhen section, to aggressively explore new growth points for the Guangzhou-Shenzhen inter-city passenger transportation, to tangibly expedite the establishment of inter-city passenger transportation business at Pinghu stations. Meanwhile, fully develop the potential of Shenzhen East station in order to enhance the operating plans for long-distance trains in the Shenzhen region, and to improve the transportation capacity and transportation efficiency of long-distance trains. In addition, we will persistently cater to the needs of travelers, improve the hardware of passenger transportation services and enhance the quality of passenger transportation services.
In respect of freight transportation, the Company will further carry out the in-depth progression of the freight transportation organization reform, implement the service delivery transform, and enhance service quality.
Comments & Business Outlook
2012 Annual Results
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 RMB 2,374 million .
Looking forward into 2013, the Company said, "Despite the complex internal and external economic environment in China
In the area of passenger transportation, in view of new market deployment after Guangzhou Guangzhou Shenzhen Guangzhou Shenzhen Shenzhen
In the area of the freight business, the Company will fully capitalize the opportunities of release of the freight transportation capability of Beijing Guangzhou
Liquidity Requirements
Our principal source of capital has been cash flow from operations and cash flow from financing activities, and our principal uses of capital are to fund capital expenditures, investment and payment of taxes and dividends. We believe we have sufficient financial resources to meet our operational and development requirements in 2011.
