BEIJING, Nov 16 (MARKET WIRE) --
China Infrastructure Investment Corporation (NASDAQ: CIIC), which
operates the Pinglin Expressway in Henan Province in central China, today
reported results for its first quarter ended September 30, 2009.
For the quarter, the Company reported revenues declined 12% to $13,578,529
from $15,438,407 in the same quarter last year, and net income declined
11.5% to $2,934,506 in this year's first quarter from $3,316,185 in the
year earlier quarter. Earnings per share of $0.04 based on 80,000,000
shares outstanding was unchanged from the first quarter last year.
Key factors cited by the Company for the decrease in first quarter
revenues, was the economically induced decline in traffic volume on the
Pinglin Expressway and the elimination of tolls on nearby trunk roads
which contributed to this. Additionally, the Company pointed to an
increase in government imposed penalties on coal carrying vehicles that
"overloaded" as defined by regulations. As a consequence, the Company
calculated that the average gross weight of coal vehicles on the
Expressway in the quarter was down approximately 5 tons per vehicle
compared with the first quarter last year which negatively affected toll
receipts.
Mr. Li Xipeng, Chairman and CEO of the Company, stated, "While we were
disappointed with first quarter results, we are starting to see signs of a
recovery in the Chinese economy which should have a positive effect on
traffic on the Pinglin Expressway. Reflecting this, in the first quarter
this year we saw an increase in average daily traffic volume on the
Pinglin Expressway of 3,190 units -- from 11,784 units in the final
quarter of our prior fiscal year to 14,974 in the first quarter. We
believe traffic volume will continue to increase in the period ahead."
"Looking to the future," he added, "while Henan is China's most populous
province, its urbanization rate is far below the national average. With
the rapid economic development and the acceleration in the urbanization of
Henan we are now seeing, demand continues to grow for increased and
improved infrastructure. Consequently, the Company will continue to seek
to invest in the construction and purchase of additional expressways and
other infrastructure assets in Henan as well as other provinces
experiencing continuing rapid growth."
SEE ATTACHED TABLES
About China Infrastructure Investment Corporation:
China Infrastructure Investment Corporation, incorporated in Nevada, USA
and headquartered in Henan Province, China, focuses on investing in,
constructing, operating and managing infrastructure development projects
in China. The Company currently operates the Pinglin Expressway, a
106-kilometer (66 miles) dual carriageway four-lane toll road in the
central province of Henan. The Expressway is an important passage from the
northwest region to the southeast coastal region of China. The Company is
actively pursuing additional development opportunities in infrastructure
projects, including expressways, electricity, water supply and bio fuel
facilities. For more information, please visit www.ciicusa.com.
"Safe Harbor" statement under the Private Securities Litigation Reform Act
of 1995:
This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on current expectations or beliefs,
including, but not limited to, statements concerning the Company's
operations, financial performance and condition. For this purpose,
statements that are not statements of historical fact may be deemed to be
forward-looking statements. The Company cautions that these statements by
their nature involve risks and uncertainties, and actual results may
differ materially depending on a variety of important factors, including,
but not limited to, the impact of alternative new routes and modes of
transportation, pricing and new technology; changes in consumer
preferences, and effectiveness of marketing; changes in laws and
regulations; fluctuations in costs of maintenance and construction, and
other factors such as those discussed in the Company's reports filed with
the Securities and Exchange Commission. In addition, the Company
disclaims any obligation to update any forward-looking statements to
reflect events or circumstances after the date hereof.
No securities regulatory authority has either approved or disapproved the
contents of this news release.
CHINA INFRASTRUCTURE INVESTMENT CORPORATION
CONDENSED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(UNAUDITED)
THREE MONTHS ENDED
SEPTEMBER 30,
--------------------------
2009 2008
------------ ------------
REVENUES $ 13,578,529 $ 15,438,407
OPERATING COSTS 1,277,504 1,209,211
DEPRECIATION AND AMORTIZATION 1,888,533 2,104,615
------------ ------------
GROSS PROFIT 10,412,492 12,124,581
General and administrative expenses 1,368,500 1,345,248
------------ ------------
INCOME FROM OPERATIONS 9,043,992 10,779,333
OTHER INCOME (EXPENSES)
Interest expense (7,531,649) (9,287,380)
Interest income 2,191,389 2,776,786
Other income, net 282,949 256,212
------------ ------------
Income FROM OPERATIONS Before Income Taxes 3,986,681 4,524,951
Income Tax EXPENSE (1,052,175) (1,208,766)
------------ ------------
NET INCOME 2,934,506 3,316,185
------------ ------------
OTHER COMPREHENSIVE INCOME
Foreign currency translation gain 190,993 428,851
------------ ------------
OTHER COMPREHENSIVE INCOME, NET 190,993 428,851
------------ ------------
COMPREHENSIVE INCOME $ 3,125,499 $ 3,745,036
============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING, BASIC AND
DILUTED 80,000,000 80,000,000
============ ============
NET INCOME PER COMMON SHARE, BASIC AND DILUTED $ 0.04 $ 0.04
============ ============
Contacts:
Mr. Wang Feng
Corporate Secretary
Pinglin Expressway Headquarters
New District, Pingdingshan
Henan Province, P.R. China 467000
Tel: 86-371-68261551
Fax: 86-371-68261839
http://www.ciicusa.com
wangfeng@ciicusa.com
Ken Donenfeld
DGI Investor Relations
212-425-5700
Email: donfgroup@aol.com
Email: kdonenfeld@dgiir.com
Copyright 2009, Market Wire, All rights reserved.
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