Traffic drops but earnings up for Sichuan Expressway
H share Sichuan Expressway yesterday expects daily traffic on its main asset - the Chengyu Expressway - to rise about 5 per cent this year.
Traffic last year fell about 5.3 per cent year on year after the company raised the tolls by 60 per cent in July 1997.
Despite the fall, Sichuan Expressway announced its net profits rose 13.8 per cent year on year to 180.81 million yuan (about HK$168.29 million) for the year to December 31.
Revenue rose 10.3 per cent year on year to 375.97 million yuan.
Company officials yesterday said profit growth was helped by not having to pay any corporate income tax when it became a Sino-foreign joint venture. As a state firm it had previously paid standard income tax of 33 per cent.
General manager Tan Shiqiao said traffic on the expressway was up 4 per cent year on year in the first two months of this year.
Meanwhile, deputy director of the Sichuan provincial communications department Yu Weiduo said the province planned to invest 8.5 billion yuan on more freeways.