Third Quarter Financial Statement And Dividend Announcement
Consolidated Income Statement
Cost of sales
Other operating income Administrative expenses
Group | |||||
Third quarter ended 30 September | Nine-month period ended 30 September | ||||
2015 | 2014 | Change | 2015 | 2014 | Change |
HK$'000 | HK$'000 | % | HK$'000 | HK$'000 | % |
548,777 | 528,681 | 4 | 1,579,884 | 1,487,235 | 6 |
(214,059) | (218,877) | (2) | (653,830) | (646,076) | 1 |
334,718 | 309,804 | 8 | 926,054 | 841,159 | 10 |
7,051 | 48,218 | (85) | 62,388 | 93,880 | (34) |
(24,498) | (22,397) | 9 | (67,782) | (68,863) | (2) |
(897) | (14) | 6,307 | (3,238) | (738) | 339 |
(28,478) | (28,156) | 1 | (89,347) | (90,666) | (1) |
5,426 | 5,921 | (8) | 16,689 | 17,742 | (6) |
63,520 | 71,582 | (11) | 190,657 | 219,281 | (13) |
356,842 | 384,958 | (7) | 1,035,421 | 1,011,795 | 2 |
(89,934) | (82,455) | 9 | (253,460) | (218,909) | 16 |
266,908 | 302,503 | (12) | 781,961 | 792,886 | (1) |
- | - | N.M. | - | 64,092 | N.M. |
266,908 | 302,503 | (12) | 781,961 | 856,978 | (9) |
168,357 | 210,923 | (20) | 505,694 | 608,175 | (17) |
98,551 | 91,580 | 8 | 276,267 | 248,803 | 11 |
266,908 | 302,503 | (12) | 781,961 | 856,978 | (9) |
(i)
(i)
(ii)
Other operating expenses
Finance costs
Subsidy income
Share of results of joint ventures, net of tax
Income tax expense
Profit from continuing operations, net of tax Profit from discontinued operation, net of tax
(iii)
(iv)
Profit for the periodConsolidated Statement Of Comprehensive Income
Group | |||||
Third quarter ended 30 September | Nine-month period ended 30 September | ||||
2015 | 2014 | Change | 2015 | 2014 | Change |
HK$'000 | HK$'000 | % | HK$'000 | HK$'000 | % |
266,908 | 302,503 | (12) | 781,961 | 856,978 | (9) |
(480,565) | 6,464 | N.M. | (484,642) | (100,498) | 382 |
- | - | - | - | (80,960) | (100) |
(480,565) | 6,464 | N.M. | (484,642) | (181,458) | 167 |
(213,657) | 308,967 | N.M. | 297,319 | 675,520 | (56) |
(211,497) | 213,452 | N.M. | 118,460 | 450,354 | (74) |
(2,160) | 95,515 | N.M. | 178,859 | 225,166 | (21) |
(213,657) | 308,967 | N.M. | 297,319 | 675,520 | (56) |
Translation differences arising on consolidation
Reclassification to income statement upon disposal of discontinued operations
N.M.: Not Meaningful
On 27 September 2013, the Company entered into a conditional sale and purchase agreement with China Merchants Properties Development Limited, an indirect wholly-owned subsidiary of China Merchants Group, to dispose of its entire interests in CMPNZ. The disposal was completed on 16 April 2014.
On 21 July 2014, the Company entered into a conditional sale and purchase agreement to indirectly acquire a 100 per cent. equity interest in Honest Queen International (Jiangxi) Jiurui Expressway Development Co., Ltd through Hong Kong Honest Queen International Investment Limited, a company incorporated in Hong Kong. Honest Queen International (Jiangxi) Jiurui Expressway Development Co., Ltd owns the rights to operate the Jiurui Expressway (Jiujiang-Ruichang Section), an expressway located in Jiangxi Province, People's Republic of China.
Pursuant to the sale and purchase agreement, the acquisition of Jiurui Expressway was completed on 9 September 2014 and the financial results of Jiurui Expressway have been consolidated to the Group's accounts as a subsidiary since then.
On 23 June 2015, three directly wholly-owned subsidiaries of the Company entered into three conditional sale and purchase agreements to acquire 100 per cent. equity interests in Guangxi Guixing Expressway Investment and Construction Co., Ltd. (the 'Guixing Target'), Guangxi Guiwu Expressway Guiyang Section Investment and Construction Co., Ltd. (the 'Guiyang Target') and Guangxi Huatong Expressway Co., Ltd. (the 'Yangping Target'). Guixing Target owns the rights to operate the Guilin - Xing'an Expressway ('Guixing Expressway'). Guiyang Target owns the rights to operate the Guilin - Yangshuo Expressway ('Guiyang Expressway'). Yangping Target owns the rights to operate the Yangshuo - Pingle Expressway ('Yangping Expressway').
Pursuant to the sale and purchase agreement in relation to the acquisition of Yangping Expressway, the acquisition of Yangping Expressway was completed on 23 September 2015 and the financial results of Yangping Expressway have been consolidated to the Group's accounts as a subsidiary since then.
Notes to Income StatementThe Group currently operates six toll roads, among which Gui Liu Expressway and Gui Huang Highway are accounted for as joint ventures using the equity method. Toll revenue from these joint ventures is not included in Group revenue and contribution from them is mainly recognised below the operating level.
Group revenue for the third quarter and nine months ended 30 September 2015 grew 4% and 6% respectively year-on-year. The increase in Group revenue was largely attributable to the revenue growth of Yongtaiwen Expressway, the consolidation of revenue contribution from Jiurui Expressway acquired in September 2014 and Yangping Expressway acquired in September 2015. Group gross profit for the third quarter and first nine months of 2015 increased 8% and 10% respectively mainly due to higher gross profit margin registered by Yongtaiwen Expressway and Beilun Port Expressway, higher gross profit contribution from Jiurui Expressway.
Other operating income decreased mainly due to lower deferred income and effective interest on other receivables recognised, lower exchange gain and absence of negative goodwill of HK$22.8 million arising from the acquisition of subsidiaries.
Share of results of joint ventures relates to the contributions from the Group's two toll roads, namely Gui Liu Expressway and Gui Huang Expressway. The details are set out in item 8.
Income tax expense increased as a result of higher income tax expense registered by Yongtaiwen Expressway and Beilun Port Expressway and the consolidation of results of Jiurui Expressway.
(v) Additional disclosures
Group | |||||
Third quarter ended 30 September | Nine-month period ended 30 September | ||||
2015 | 2014 | Change | 2015 | 2014 | Change |
HK$'000 | HK$'000 | % | HK$'000 | HK$'000 | % |
6,232 | 7,594 | (18) | 17,493 | 18,751 | (7) |
(129,097) | (119,581) | 8 | (392,179) | (354,478) | 11 |
(5,410) | (6,258) | (14) | (17,002) | (18,897) | (10) |
(700) | 2 | N.M. | (703) | (61) | 1,052 |
- | (6) | (100) | - | (182) | (100) |
- | 22,783 | (100) | - | 22,783 | (100) |
- | - | - | - | 66,319 | (100) |
(2,091) | 3,655 | N.M. | 16,509 | 25,987 | (36) |
*Interest income
**Amortisation of intangible assets
Depreciation of property, plant and equipment
(Loss)/Gain on disposal of property, plant and equipment
Intangible assets written off
Bargain purchase gain arose from acquisition of subsidiaries
Gain on disposal of discontinued operation
***Foreign exchange gain/(loss)
*Interest income decreased due to lower bank fixed deposits.
**Amortisation expenses increased mainly due to consolidation of Jiurui Expressway and the increase in amortisation expenses by other toll road subsidiaries based on a units-of-usage basis.
***Foreign exchange loss arose from the depreciation of RMB and SGD against Hong Kong dollar.
1.(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial yearGroup | Company | ||||
As at 30/09/2015 | As at 31/12/2014 | As at 30/09/2015 | As at 31/12/2014 | ||
HK$'000 | HK$'000 | HK$'000 | HK$'000 | ||
ASSETS | 3,636,676 | 1,049,178 | 1,461,590 | 124,070 | |
Current assets | |||||
Cash and cash equivalents | |||||
Trade and other receivables | (i) | 264,162 | 199,761 | 629,224 | 1,012,947 |
Inventories | 1,306 | 970 | - | - | |
Total current assets | 3,902,144 | 1,249,909 | 2,090,814 | 1,137,017 | |
Non-current assets | 306,936 | 209,307 | 2,699 | 2,959 | |
Property, plant and equipment | (ii) | ||||
Intangible assets | (iii) | 13,839,522 | 12,429,096 | - | - |
Interests in subsidiaries | (iv) | - | - | 9,651,599 | 7,813,732 |
Interests in joint ventures | 1,578,329 | 1,702,466 | - | - | |
Club membership | 376 | 376 | 376 | 376 | |
Total non-current assets | 15,725,163 | 14,341,245 | 9,654,674 | 7,817,067 | |
Total assets | 19,627,307 | 15,591,154 | 11,745,488 | 8,954,084 | |
LIABILITIES AND EQUITY | 967,653 | 633,291 | 145,724 | 37,679 | |
Current liabilities | |||||
Trade and other payables | (v) | ||||
Interest-bearing liabilities | (vi) | 897,118 | 402,048 | 897,118 | 248,784 |
Dividend payable | (vii) | 146,531 | 498,009 | 146,531 | 498,009 |
Income tax payable | (viii) | 318,322 | 162,065 | - | - |
Total current liabilities | 2,329,624 | 1,695,413 | 1,189,373 | 784,472 | |
Non-Current liabilities | 3,820,676 | 3,844,990 | 2,656,198 | 3,607,603 | |
Interest-bearing liabilities | (vi) | ||||
Deferred income | 141,377 | 160,002 | - | - | |
Deferred tax liabilities | 998,524 | 960,955 | - | - | |
Total non-current liabilities | 4,960,577 | 4,965,947 | 2,656,198 | 3,607,603 | |
Capital, reserves and non-controlling interests | 7,861,501 | 3,804,616 | 7,861,501 | 3,804,616 | |
Share capital | |||||
Share option reserve | 200 | 1,513 | 200 | 1,513 | |
Statutory reserve | 214,362 | 201,154 | - | - | |
Currency translation reserve | 95,834 | 483,068 | - | - | |
Reserve on consolidation | (78,930) | (78,930) | - | - | |
Capital reserve | 22,892 | 55,036 | 22,892 | 55,036 | |
Accumulated profits | 1,639,644 | 1,907,606 | 15,324 | 700,844 | |
Equity attributable to owners of the company | 9,755,503 | 6,374,063 | 7,899,917 | 4,562,009 | |
Non-controlling interests | 2,581,603 | 2,555,731 | - | - | |
Total equity | 12,337,106 | 8,929,794 | 7,899,917 | 4,562,009 | |
Total liabilities and equity | 19,627,307 | 15,591,154 | 11,745,488 | 8,954,084 |
distributed by |