Li said he wanted acquisition projects to have an internal rate of return (IRR) of at least 10 per cent and must contribute profits within a year of purchase.

The company was interested in acquisitions in western provinces that benefited from trade with members of the Association of Southeast Asian Nations and in central Chinese provinces near the Wuhan-Guangzhou high-speed railway, he said.

The company is also interested in the more economically developed parts of the Pearl River Delta.

'The company will further its efforts in identifying projects which offer satisfactory returns and make timely investments. It is also our priority to boost return on assets,' said Zhang Zhaoxing, the chairman of the company.

Yuexiu made its first port acquisition in February, buying 51 per cent of Wuzhou port in Guangxi province for 87.21 million yuan (HK$105.7 million). Wuzhou port had an estimated IRR of 15.25 per cent, Li said.

Revenue rose 9.1 per cent to 623.33 million yuan in the first half, while net profit grew 6.9 per cent to 254.46 million yuan.

The Guangzhou Northern Second Ring Expressway was the biggest contributor, with its revenue rising 4.4 per cent to 351 million yuan and profit growing 3.8 per cent to 123 million yuan.

The firm's cash level fell from 2.11 billion yuan at the end of last year to 934.79 million yuan in the middle of this year, while its gearing ratio rose to 30.7 per cent in the period from 8.4 per cent at the end of last year.

4b yuan

is the amount, in yuan, that Yuexiu, formerly GZI Transport, said in March it would spend on buying two roads this year