2014 Annual Results. Company Presentation

Transcription

1 2014 Annual Results Company Presentation 1

2 genda Result Highlights Review of Operations Outlook Appendices 2

3 Result Highlights 3

4 inancial Highlights Results (RMB 000) For the year ended 31 December % change Revenue 9,051,123 7,851, % Operating costs (5,576,211) (4,955,609) 12.5% Gross profit Securities investment gains Other income Administrative expenses Other expenses Share of profit of associates Share of loss of a joint venture Finance costs 3,474, , ,492 (85,533) (103,443) 65,020 (33,277) (78,231) 2,895,506 99, ,056 (84,792) (70,061) 21,537 (36,010) (95,161) 20.0% 179.2% 3.9% 0.9% 47.6% 201.9% -7.6% -17.8% Profit before tax Income tax expense 3,768,192 (917,948) 2,971,738 (756,761) 26.8% 21.3% Profit for the Year 2,850,244 2,214, % Attributable to: Owners of the Company Non-controlling interests 2,349, ,192 1,907, , % 63.0% Earnings per share Basic and diluted (RMB cents) % 4

5 inancial Highlights Revenue Revenue Revenue Breakdown 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, ,960 6,994 6, (restated) 2011 (restated) 2012 (restated) (RMB million) 9,051 7, Securities Business 26.7% Toll Road- Related Business 26.2% Toll Road Business 47.1% Overall revenue increased at a steady pace 5

6 inancial Highlights Net Profit Net Profit Net Profit Breakdown 3,500 3,000 2,500 2,000 2,260 2,014 1,827 2,215 (RMB million) 2,850 Toll Road- Related Business 5.6% Securities Business 26.4% 1,500 1, (restated) (restated) (restated) Toll Road Business 68.0% 2014 EPS: cents 6

7 inancial Highlights Dividend ROE DPS (%) (RMB cent) (restated) (restated) (restated) To provide shareholders with stable return over the long term 7

8 Review of Operations 8

9 arket Review China GDP grew at 7.4% in 2014, compared with 7.7% in 2013 Buoyant stock markets total trading volume increased by 63.8% y-o-y Zhejiang Province GDP rose 7.6% y-o-y; foreign trade improved Policies SH-HK Stock Connect Program Informationalization of toll road sector 9

10 oll Road Business Shanghai- Hangzhou- Ningbo Expressway (248km) Shangsan Expressway (142km) Ningbo-Jinhua Expressway (Jinhua Section) (70km) Toll Income: RMB 3, million (down 0.4% y-o-y) Toll Income: RMB million (up 28.3% y-o-y) Toll Income: RMB million (up 16.0% y-o-y) Jiaxing-Shaoxing Bridge s Impact: Direct impact: some traffic from SHN Expressway were diverted Our response: proactive efforts in adopting measures (e.g. better road signage) Results: an additional rise in traffic on SS Expressway and Hangzhou- Ningbo section of SHN Expressway; allowed positive impact on SS Expressway to be fully realized Overall impact on toll income: Rmb million toll income increase from SS Expressway Rmb million toll income decrease from SHN Expressway Jinhua Section of NJ Expressway continued to see high organic growth in traffic volume as a result of strong growth in trade at nearby Yiwu small commodities market and booming development of e-commerce and foreign trade in surrounding areas Construction on Hangzhou Airport Road and opening of Qianjiang Road resulted in a toll income decrease from SHN Expressway Total Toll income increased 6.0% to RMB4,407.7 million Organic growth in toll road traffic volume is closely associated with regional economy along toll roads Traffic volume of the Group s three expressways maintained solid organic growth, given steadily improving economy in Zhejiang Province 10

11 oll Road Business Daily Traffic Volume Shanghai-Hangzhou-Ningbo Expressway Traffic volume (Full-trip equivalents/day) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Up 2.7% Shangsan Expressway 30,000 25,000 20, Up 25.0% 15, ,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ,000 20,000 15,000 10,000 5,000 0 Ningbo-Jinhua Expressway (Jinhua section) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Up 17.6%

12 oll Road-Related Business Opening of Jiaxing-Shaoxing Bridge diverted a certain amount of traffic volume which adversely influenced toll road-related business Increased sales of refined oil products Additional income from external road maintenance projects Decline in advertising revenue due to removal of billboards for a clean up campaign Income from toll road-related business increased 8.9% to RMB 2,388 million 12

13 ecurities Business Trading volume of stock markets in China increased 63.8% y-o-y Significant growth in market share and trading volume Average commission rate: 0.067% (2013: 0.08%) Income from investment banking, margin financing and securities lending and asset management accelerated due to the all-round development of each business segment Zheshang Securities IPO application was officially accepted by China Securities Regulatory Commission in May 2013 and remains on the waiting list for an IPO Zheshang Securities recognized as a qualified broker in Shanghai-Hong Kong Stock Connect Income Breakdown of Securities Business (RMB million) Rmb mn Rmb mn mn Change % Brokerage commission income 1, , Interest income Securities investment gains Income from securities business increased 46.3% to RMB 2, million 13

14 ther Business Zhejiang Communications Investment Group Finance Co., Ltd. (35% associate company) Derives income mainly from fees and commissions for providing financial services Recorded profit of RMB million in 2014 Shengxin Expressway Company (50% joint venture) Daily traffic volume increased by 10.3% y-o-y to 13,994 Recorded toll income of RMB million Recorded loss of RMB66.55 million due to an increase in road maintenance expenses and relatively heavy financial burden Petroleum Company (50% associate company) Income decreased by 2.0% y-o-y to RMB6, million Profit reached RMB26.83 million Increased sales volume of refined oil products while affected by continuous oil pricing adjustments Initiation of New Investment Projects 14 Science technology insurance Financial leasing Transformation of Zheshang Securities

15 15 Outlook

16 arket Outlook in 2015 Existing Businesses in New Normal Mode Toll Road Business Traffic volume trend: steady but slower growth Anticipated diversion from Qianjiang Road and Dongyang-Yongkang Expressway Securities Business More favorable policies to come: SZ-HK Stock Connect, expansion of SH-HK Stock Connect etc. New profit drivers in innovative business A-Share IPO 16

17 xplore Appropriate Investment Projects Long-term Strategic Plan Background Toll-road business entering maturity stage Other business opportunities arise Target Project Benefitting from Zhejiang Province s industry upgrades Long-term growth potential alongside China s consumption upgrades and urbanization Reasonable return and sustainable cash flow Resources Resources from main businesses Human capital Low-cost financing channels 17

18 18 Open Forum

19 19 Appendices

20 ppendix I Statement of Financial Position (RMB million) As at the ended of the year % change Bank balances and cash 4,063 2, % Held-for-trading investments 2,125 1, % Total assets 51,355 32, % Total liabilities 30,225 12, % Total debt 27,218 10, % Debt to equity (%) % Total liabilities to total assets (%) % 20

21 ppendix II Organization Chart Zhejiang Expressway Co., Ltd Shangsan Co Jinhua Co Jiaxing Co Yuhang Co Petroleum Co Zhenjiang Communication Shengxin Co Finance % 100% % 51% 50% 35% 50% Zheshang Development Securities Co 70.83% 100% Towing Co Maintenance Advertising Concord Co Co Property 100% 100% 70% 45% SUBSIDIARIES ASSOCIATES JOINT VENTURE 21

22 22 ppendix III Expressway Map of Zhejiang Province