Guangshen Railway Announces 2008 Annual Results and 2009 First Quarterly Results

Q 1 Net Profit Rises 16.58% to RMB274 million

HONG KONG, April 29 /PRNewswire-Asia-FirstCall/ -- Guangshen Railway
Company Limited ("Guangshen Railway" or the "Company") (HKEx Share Code: 525;
SSE Share Code: 601333; American Depositary Shares ("ADS") Ticker Symbol: GSH)
today announced the audited operating results for the year ended December 31,
2008 (the "Year") and the unaudited operating results for the first quarter
ended March 31, 2009 of the Company and its subsidiaries (the "Group").
In 2008, operating revenues of the Group amounted to RMB11,689 million,
representing an increase of 11.23% over 2007. Profit attributable to equity
holders amounted to RMB1,224 million (2007: RMB1,431 million). The board of
directors of the Company recommended the payment of a final cash dividend of
RMB0.08 per share for 2008 (2007: RMB0.08 per share).
In the first quarter of 2009, operating revenues of the Group amounted to
RMB2,872 million, representing an increase of 10.41% over the corresponding
period of 2008. Net profit attributable to equity holders of the Company was
RMB274 million, an increase of 16.58% year-on-year.
Mr. He Yuhua, Chairman of the Company said, "Impacted by domestic natural
disasters and the global financial crisis, coupled with other factors
including the expansion of the operating scale of the Company, continuous
price increases in railway-related raw materials and an increase in finance
costs, the Company faced tough challenges in operation and management during
the Year. Although faced with various difficulties, through strengthening
sales and marketing efforts to increase traffic and revenues, consolidating
and enhancing transportation resources to improve transportation capacity and
efficiency and actively controlling costs and expenses, the Company achieved a
stable increase in transportation revenues during the Year as well as
recording net profit growth in the first quarter of 2009."
During the Year, passenger delivery volume of the Company was 83,824,700,
a year-on-year increase of 14.74%. Revenue from passenger transportation rose
15.87% year-on-year to RMB6,759 million. Of such amount, the passenger
delivery volumes of Guangzhou-Shenzhen trains, long-distance trains and Hong
Kong Through Trains amounted to 32,082,700, 48,626,500 and 3,115,500
respectively, representing year-on-year increases of 29.76%, 7.73% and a
decrease of 2.38% respectively and realizing revenues of RMB1,973 million,
RMB4,406 million and RMB380 million respectively.
Both passenger delivery volume and revenue of Guangzhou-Shenzhen trains
increased, mainly because the large-volume operation of Chain Railway
High-speed trains has built a competitive advantage of Guangzhou-Shenzhen
trains. In addition, with the further optimization and integration of the
transportation resources of Shenzhen-Guangzhou-Pingshi Railway, the connection
between Guangzhou-Shenzhen trains and long-distance trains has been running
more smoothly and efficiently. Meanwhile, the long holiday arrangement of
three holidays (the Qingming Festival Holidays, the May Day Holidays and the
Dragon Boat Festival Holidays) has also led to an increase in short-distance
passenger traffic on the Guangzhou-Shenzhen trains.
In respect of long-distance trains, despite the heavy rains and snowstorms
at the beginning of the Year, which led to a substantial decrease in the
delivery volume of long-distance passengers during the Lunar New Year,
passenger delivery volume and revenue increased considerably during the Year.
The growth was mainly attributable to a year-on-year increase in
transportation capacity resulting from the successful commencement of
operation of passenger trains from Shenzhen to Shaoguan and from Guangzhou to
Zhengzhou, as well as the full operation of trains from Guangzhou to Shanghai
and from Guangzhou to Xi'an. Furthermore, in the fourth quarter of 2008, the
large number of migrant workers in Guangdong Province returning home earlier
than the previous years also led to a year-on-year increase in passenger
delivery volume.
In respect of Hong Kong Through Trains, the year-on-year decreases in its
passenger delivery volume and revenues were mainly attributable to the
large-scale operation of the Company's Guangzhou-Shenzhen trains that has
diverted a portion of Through Train passengers. Meanwhile, the global
financial crisis led to a decline in the number of business and tourist
traveling between Guangdong and Hong Kong.
During the Year, tonnage of freight transported by the Company amounted to
70.1411 million tonnes (2007: 71.0103 million tonnes). Revenues from freight
transportation reached RMB1,325 million (2007: RMB1,326 million). The slight
decreases in the Company's tonnage of freight and revenues from freight
transportation were mainly attributable to a year-on-year decrease in the
Company's outbound freight tonnage caused by heavy rains and snowstorms at the
beginning of the Year, the upgrading of the Pearl River Delta's industry
structure and the global financial crisis.
Looking forward to the Company's development in 2009, Mr. He said, "2009
is a year with opportunities and challenges. On the one hand, with the
implementation of the State's investment plan of RMB4 trillion, the issue of
the "Reform and Development Planning Outline for the Pearl River Delta Region"
and the implementation of the "Medium to Long Term Railway Network Planning
Adjustment Proposal", the scope and transport capacity of railway networks
will be constantly enlarged and the quality of railway transport will be
greatly improved. On the other hand, with a slowdown trend of the global
economy, the overall growth rate of the railway transport industry will
inevitably slow. Faced with the opportunities and challenges, the Company will
leverage its geographic and competitive advantages, strengthen production
safety, enhance and integrate resources, capitalise on the benefits of its
operating scale, and enhance efforts in passenger and freight marketing,
thereby creating good operating results."
Guangshen Railway Company Limited was established in 1996. The H shares
and ADS issued by the Company were listed on The Stock Exchange of Hong Kong
Limited and the New York Stock Exchange respectively in May 1996. The Company
is currently the only PRC railway enterprise with its shares listed overseas.
In December 2006, the Company returned to the A share market and successfully
listed its shares on the Shanghai Stock Exchange. The Company holds the sole
operating rights of the Guangshen Railway, one of the most modern railways in
the PRC. The Company is mainly engaged in railway passenger and freight
transportation businesses between Guangzhou and Shenzhen, long-distance
passenger transportation services, and the Hong Kong Through Train passenger
service in cooperation with MTR Corporation in Hong Kong. As at December 31,
2008, the Company operated 239.5 pairs of passenger trains in accordance with
its daily train schedules, including 120 pairs of high-speed trains between
Guangzhou and Shenzhen (of which 34 were stand-by pairs), 106.5 pairs of
long-distance trains, and 13 pairs of Guangzhou-Hong Kong through-trains.
Enclosed: (1) Condensed Consolidated Income Statement for 2008 (audited)
(2) Consolidated Statement of Profit for the First Quarter of
2009 (unaudited)
http://www.prnasia.com/xprn/sa/attachment/2009/04/20090429-486966.pdf

For further information, please contact:

Mr. Guo Xiangdong / Ms. Grace Deng
Guangshen Railway Company Limited
Tel: +86-755-2558-7920 / 2558-8146
Fax: +86-755-2559-1480

Ms. Edith Lui / Ms. Leona Zeng
Rikes Hill & Knowlton Limited
Tel: +852-2520-2201
Fax: +852-2520-2241

SOURCE Guangshen Railway Company Limited

Mr. Guo Xiangdong & Ms. Grace Deng, Guangshen Railway Company Limited at
+86-755-2558-7920 or 2558-8146, or fax: +86-755-2559-1480; Edith Lui & Ms.
Leona Zeng, Rikes Hill & Knowlton Limited at +852-2520-2201 or fax:
+852-2520-2241