Deferred maintenance costs see Anhui Expressway's profits lag behind counterparts

PUBLISHED : Thursday, 30 August, 2001, 12:00am
UPDATED : Thursday, 30 August, 2001, 12:00am

H share Anhui Expressway has posted the lowest net profit growth among all toll-road counterparts that have released interim results.

Profit edged up 2.25 per cent year on year to 134.2 million yuan (about HK$125.75 million) for the six months to June 30.

This compares with the 16.8 per cent interim growth achieved by Zhejiang Expressway, 40.96 per cent by Jiangsu Expressway and 17.61 per cent by Shenzhen Expressway.

Sichuan Expressway earlier said it had achieved 8.68 per cent growth in its six-month profit.

Anhui's growth was dwarfed by the 36.29 per cent increase recorded in the same period last year.

Anhui deputy general manager Xie Xinyu attributed the flat growth to deferred road maintenance costs.

Turnover was 268.59 million yuan, 39.72 per cent higher than the 192.23 million yuan a year earlier.

Mr Xie said the rise was due to the first-time booking of revenue from Gaojie Expressway, in which Anhui Expressway increased its stake from about 30 per cent last year to 51 per cent in the first half this year.

He said operating profit grew by about 20 per cent year on year.

Traffic on the toll road assets went up about 14 per cent.

Earnings per share were 9.53 fen, compared with 9.32 fen previously. A dividend of three fen will be paid.

Mr Xie said Anhui had formed an investment firm in May with a registered capital of 50 million yuan and was engaged in information technology development.