Sorry for the long "cut" of the article, but I wanted to be fair and include the partially positive passenger service results, with the negative freight service results.
http://www.marketwatch.com/story/guangshen-railway-announces-2009-interim-results-2009-08-26?newsid=969283042&dist=bigchartssymb%3DGSH&sid=16860 Guangshen Railway Company Limited ("Guangshen Railway" or the "Company") (HKEx Share Code: 525; SSE Share Code: 601333; American Depositary Shares ("ADS") Ticket Symbol: GSH) today announced the unaudited interim results of the Company and its subsidiaries (the "Group") for the six months ended June 30, 2009 (the "Period"). During the Period, operating revenues of the Company amounted to RMB5,858 million, representing an increase of 4.23% over the corresponding period last year. Profit from operations amounted to RMB867 million (2008 interim: RMB924 million). Profit attributable to equity holders amounted to RMB595 million (2008 interim: RMB674 million). The board of directors of the Company does not recommend the payment of any interim dividend for 2009. Mr. He Yuhua, Chairman of the Company said, "In the first half of 2009, due to a decrease in demand for railway passenger and freight transportation services caused by the global financial crisis and the H1N1 swine flu, coupled with factors including an increase in operating costs resulting from the expansion of the Company's operating scale and an increase in finance costs, the Company was faced with tough challenges in its operation and management. Faced with various difficulties, the Company has strengthened its sales and marketing efforts to increase traffic and revenues, consolidated and enhanced transportation resources to improve transportation capacity and efficiency, and actively controlled costs and expenses, thereby achieving a growth in transportation revenues." During the Period, passenger delivery volume of the Company was 41,316,000, a year-on-year increase of 1.10%. Revenue from passenger transportation rose 7.68% year-on-year to RMB3,512 million. Of such amount, the passenger delivery volumes of Guangzhou-Shenzhen trains, Through Trains and long-distance trains amounted to 16,172,000, 1,599,300 and 23,544,800 respectively, representing year-on-year increases of 3.90% and 2.42% and a decrease of 0.82% respectively; and realizing revenues of RMB990 million, RMB181 million and RMB2,341 million respectively, representing an increase of 2.86%, a decrease of 5.85% and an increase of 11.11% year-on-year respectively. Both passenger delivery volume and revenue of Guangzhou-Shenzhen trains posted growths mainly attributable to a considerable increase in passenger delivery volume in January and February as compared to the corresponding period last year, owing to this year's absence of natural disasters such as heavy rains, snowstorms and freezing weather during the Lunar New Year. In addition, Guangzhou-Shenzhen trains began to stop at each intermediary station from May 1, thereby stimulating the growth of passenger traffic at intermediary stations. Meanwhile, the introduction of the Guangshen Railway Peony Credit Card and the Guangshen Railway Fast Pass Card has facilitated traveling and attracted more passengers. In respect of long-distance trains, passenger delivery volume did not grow along with the increase in number of operated trains or the increase in transportation capacity, mainly due to the global financial crisis and the H1N1 swine flu. However, revenue from long-distance trains recorded a considerable increase, mainly owing to the reason that the Company has begun to undertake the operation of T97/8 trains from Beijing West to Kowloon (Guangzhou East) effective from January 1, 2009, thereby leading to a considerable increase in the relevant revenue. As regards Hong Kong Through Trains, due to the significant increase in the number of mainland passengers visiting Hong Kong, Beijing-Kowloon trains, Shanghai-Kowloon trains and Zhaoqing-Kowloon trains contributed to an increase in passenger delivery volume of Through Trains. However, the passenger traffic of Canton-Kowlon Through Trains, which had a higher average passenger revenue, recorded a substantial decrease under the impact of the global financial crisis and the H1N1 swine flu, thereby leading to a decline in Through Train revenues. During the Period, tonnage of freight transported by the Company amounted to 26.5406 million tonnes (2008 interim: 34.5508 million tonnes). Revenues from freight transportation reached RMB506 million (2008 interim: RMB636 million). The decreases in the Company's tonnage of freight and revenues from freight transportation were mainly due to the considerable declines recorded in both the Company's outbound and inbound freight tonnages which were in turn caused by the global economic crisis and the slowdown of China's macro- economy. ________________________________________________ YOU MUST clip all extraneous text when replying to a message. Send list submissions to: Marxism@lists.econ.utah.edu Set your options at: http://lists.econ.utah.edu/mailman/options/marxism/archive%40mail-archive.com
