Mainboard-listed China Merchants Holdings (Pacific) today says it posted a net profit after tax of HK$44.9 million ($7.1 million) for the first quarter ended 31 March 2011, down 55% over the corresponding period last year.
China Merchants posted a revenue of HK$14.1 million in the first quarter, a decrease of 48%. The property development and others business segment, which accounted for 94% of total group revenue, registered a drop in settlement numbers of development properties due to the challenging operating environment.
The group’s pre-tax profit for the first quarter was down 54% on the corresponding period of the previous year. Excluding the non-recurring item (a gain of HK$41.3 million from the disposal of the group’s entire interest in Luomei Highway in 1Q2010), pre-tax profit would have declined by 22% or HK$13.7 million compared to the same period a year ago.
China Merchants says its toll roads in China continued to enjoy a steady growth in traffic volume and toll revenue in the first quarter. Total traffic volume and toll revenue were up 17.2% and 4.1% respectively over the same period in 2010.
However, profit contribution (excluding non-recurring item) from the toll road operations eased 24% largely due to lower profit attained by two major toll road assets, the Guiliu Expressway and Guihuang Highway.
Profit contribution from Guiliu Expressway and Guihuang Highway were down 29.5% and 10.8% respectively principally due to higher repair and maintenance expenses, direct overheads and higher income tax expenses.
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