2013 Interim Results Presentation

Transcription

1 2013 Interim Results Presentation

2 Agenda Results Highlights Review of Operations Outlook 1

3 Results Highlights 2

4 Financial Highlights (RMB 000) 2013 Revenue Operating costs Gross profit Results (Unaudited) Securities investment gains Other income Administrative expenses Other expenses Share of profit (loss) of associates Share of loss of a joint venture Finance costs 3,647,268 (2,283,848) 1,363,420 For the six months ended June 30 79, ,890 (36,126) (21,401) 4,791 (13,938) (43,079) 2012 (Restated) 3,439,196 (2,176,784) 1,262,412 61, ,420 (35,994) (16,755) (8,201) - (75,664) % Change +6.1% +4.9% +8.0% +30.3% -15.8% +0.4% +27.7% -43.1% Profit before tax 1,437,343 1,310, % Income tax expense (374,175) (322,128) +16.2% Profit for the Period 1,063, , % Attributable to: Owners of the Company Non-controlling interests 930, , , , % +12.2% Earnings per share Basic and diluted (RMB cents) % 3

5 Financial Highlights Revenue Revenue Revenue Breakdown (RMB million) 8,000 7,000 6,000 6,175 6,959 6,994 6,927 Toll Road-Related Businesses 27.7% Toll Road Business 52.7% 5,000 4,000 3,000 2,000 2,835 3,220 3,442 3,439 3, Interim 1, Annual Interim Interim Securities Business 19.6% Overall revenue increased from effective measures and stabilized macro environment 4

6 Financial Highlights Net Profit Net Profit Net Profit Breakdown (RMB million) 2,500 2,125 2,000 1,500 2,260 2,014 1,827 Securities Business 15.7% Toll Road-Related Business 2.6% 1, Annual 1,019 1, Interim , Interim 2013 Interim Toll Road Business 81.7% 5

7 Financial Highlights Maintained High Dividend Level ROE Dividend Payout % (RMB cents) Annual Interim Interim Annual Interim 2013 Interim 6

8 Review of Operations 7

9 Market Review China GDP grew 7.6% in 1H2013, 0.1% lower than in 1Q2013 Stock market rebound trading volumes in Shanghai and Shenzhen stock markets soared by 22.8% Zhejiang Province GDP up 8.3% y-o-y; growth rate same as 1Q Certain policies, such as toll exemption on major holidays, continued to have adverse effects on the industry and had minor impact on toll income of the Group 8

10 Toll Road Business: Income Increased Benefiting from Economic Upturn & Effective Measures Daily Traffic Volume Shanghai-Hangzhou-Ningbo Expressway Expressways Traffic volume (Full-trip equivalents/day) Toll income (RMB million) (Full-trip equivalents) 48,000 46,000 44,000 42,000 40,000 38,000 36,000 34,000 32,000 30,000 (Full-trip equivalents) 24,000 22,000 20,000 18,000 16,000 14,000 12,000 10, Shangsan Expressway Shanghai-Hangzhou- Ningbo Expressway Shangsan Expressway Ningbo-Jinhua Expressway (Jinhua section) 43, % 1, % 17, % % 12, % % Total 73, % 1, % Traffic on Ningbo-Jinhua Expressway increased as the S211 Provincial Highway, which is parallel to Ningbo-Jinhua Expressway, is undergoing maintenance work, and certain road sections near Yiwu are heavily congested Large truck and container truck traffic in Jinhua area increased due to improved import and export trade The Company implemented promotional programs to boost traffic on SHN Expressway and Shangshan Expressway since the implementation of tolling policy based on the actual travel routes in Zhejiang Province on May 15, 2012, which resulted in increase of RMB69 million in toll income 9

11 Toll Road-related Business Yuyao service area was closed until March and its gas station re-opened in May, affecting income Income decreased 2.0% to RMB1, million 10

12 Securities Business: Market Rebound Boosted Income Trading volume of the stock markets in China showed recovery Commission income increased despite market share showing y-o-y decline Incomes from brokerage, investment banking and asset management increased thanks to growth in trading volume of stock markets and commission rates Application for IPO of Zheshang Securities officially accepted by CSRC Income Breakdown of Securities Business (RMB million) Income Brokerage commission income Interest income Securities investment gains 73.5 Operating income of Zheshang Securities jumped 27.4% to RMB million 11

13 Other Businesses Petroleum Company (50% associate company) Income increased by 6.1% to RMB3, million Net profit reached RMB11.34 million Mainly attributable to the rise in sales of petroleum products Shengxin Expressway Company (50% joint venture) Operates 73.4km Shaoxing section of Ningbo-Jinhua Expressway Daily traffic volume increased by 2.26% y-o-y to 12,318 Recorded income of RMB million Recorded loss of RMB27.88 million due to heavy financial burden Zhejiang Communications Investment Group Finance Co., Ltd. (35% associate company) Increased investment by RMB280 million to bring shareholding to 35% Recorded profit of RMB26.05 million from May 1, 2013 to the end of the Period 12

14 Outlook 13

15 Market Outlook in the Second Half of 2013 Zhejiang economy showed signs of stabilization, but still faces downward pressure in second half of 2013 The opening of Jiashao Expressway is expected to lead to small drop in the Group s toll income Uncertainty in China s stock markets and possible adjustment in monetary policy poses both challenges and opportunities to Zheshang Securities 14

16 Continue to Explore Space for Development and to Enhance Profitability Step up marketing initiatives for newly opened expressways such as Jiaxing- Shaoxing Expressway to attract more vehicles to use sections of expressways operated by the Group Take measures to eradicate toll dodging Acquired franchise to operate 2 pairs of service areas in Ningbo area early August this year Continue to strengthen cost control and risk control Accelerate the development of innovative businesses Continue to push forward the IPO process Seek to generate strategic synergies with parent company by seeking suitable investment projects Nurture management capabilities in diversified businesses and utilize financial resources advantage to expand the space for future development and improving profitability 15

17 Open Forum 16

18 Appendix I Statement of Financial Position (RMB million) As at 30 June 2013 (Unaudited) As at 31 December 2012 (Unaudited and restated) % Change Bank balances and cash 3,642,270 4,875, Held-for-trading investments 929,104 1,486, Total assets 31,724,740 31,485, Total liabilities 12,948,910 11,863, Total debt 9,708 9, Debt to equity (%) Total liabilities to total assets (%)

19 Appendix II Organization Chart Zhejiang Expressway Co., Ltd. Shangsan Co % Jinhua Co 100% Jiaxing Co % Yuhang Co 51% Petroleum Co 50% Zhejiang Communications Finance 35% Shengxin Co 50% Zheshang Securities 70.83% Development Co 100% JoinHands Technology % Services Co Advertising Co Lutong Advertising Concord Property 100% 70% 51% 45% SUBSIDIARIES ASSOCIATES JOINTLY CONTROLLED ENTITY 18

20 Appendix III Expressway Map of Zhejiang Province 19