Business & Finance
Business and Finance
Business and Finance
Thu, February 19, 2009 China Infrastructure Investment Corporation: China Infrastructure Investment Reports Second Quarter and Six Months Results
BEIJING--(Marketwire - February 19, 2009) - China Infrastructure Investment Corporation (
Revenues in the quarter -- which were derived principally from the operation of the Pingling Expressway -- were $12,101,788, compared with $13,954,729 in the same period last year.
Second quarter net income declined to $282,583 from $2,183,653 or $0.04 per share in the second quarter last year.
In the six months ended on December 31, 2008, revenue decreased approximately $1.1 million to $27,502,808 from the $28,558,742 reported in the comparable six month period last year.
Net income in the six months ended on December 31, 2008 declined to $3,593,101, or $0.04 per share, compared with net income of $6,436,374, or $0.12 per share in the comparable six month period last year.
Weighted average shares outstanding as of December 31, 2008 increased to 80 million, compared with 55 million shares as of December 31, 2007.
The Company attributed the decline in revenues in the quarter and six month period to a decrease in traffic volume of commercial vehicles on the Pingling Expressway, as well as a toll free policy introduced by the Chinese government.
According to the Company, commercial vehicles -- especially coal trucks -- were one of the main categories of passing vehicles with high toll rates. In the three months ended December 31, 2008, however, China's coal market decreased due to the world financial crisis. Additionally, due to a series of accidents, coal mine operations were suspended in Henan Province. As a consequence, commercial traffic volume on the toll road expressway in the three month period declined close to 5%; and roughly 3.7% as a percentage of total traffic volume over the six month period.
Additionally, in 2008 the Chinese government introduced a toll free policy for vehicles carrying certain food products. This resulted in a percentage of traffic on the Expressway becoming toll free.
Mr. Li Xipeng, Chairman and CEO of the Company, commented, "We will continue to manage the highway professionally, which should translate to growth in consumer satisfaction and traffic volume. At the same time, we continue to review additional possibilities for the development and management of infrastructure projects in line with our growth strategy."
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 Pingling 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 acquisition and 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 Results of Operations Results of Operations for the Three (3) Months Ended December 31, 2008 Compared to the Three (3) Months Ended December 31, 2007 The following table sets forth a summary of certain key components of our results of operations for years indicated, in dollars and as a percentage of revenues. Three Months Ended Three Months Ended December 31 December 31 (Unaudited) (Unaudited) ------------------------- ---------------- 2008 2007 2008 2007 ------------ ------------ ------- ------- Revenues $ 12,101,788 $ 13,954,729 100.0% 100.0% Operating costs 2,466,673 2,446,018 20.4% 17.5% Depreciation and amortization 1,792,717 1,597,684 14.8% 11.5% Gross profit 7,842,398 9,911,027 64.8% 71.0% General and administrative expenses 1,501,042 1,495,916 12.4% 10.7% Income from operations 6,341,356 8,415,111 52.4% 60.3% Interest expense, net 6,149,805 5,604,709 50.8% 40.2% Other income, net 185,226 94,580 1.5% 0.7% Income from operations before income taxes 376,777 2,904,982 3.1% 20.8% Income tax expense $ 94,194 $ 721,329 0.8% 5.2% Net income $ 282,583 $ 2,183,653 2.3% 15.6% Results of Operations for the Six (6) Months Ended December 31, 2008 Compared to the Six (6) Months Ended December 31, 2007 The following table sets forth a summary of certain key components of our results of operations for years indicated, in dollars and as a percentage of revenues. Six Months Ended Six Months Ended December 31 December 31 (Unaudited) (Unaudited) ------------------------- ---------------- 2008 2007 2008 2007 ------------ ------------ ------- -------- Revenues $ 27,502,808 $ 28,558,742 100.0% 100.0% Operating costs 3,671,134 2,969,505 13.3% 10.4% Depreciation and amortization 3,892,036 3,362,476 14.2% 11.8% Gross profit 19,939,638 22,226,761 72.5% 77.8% General and administrative expenses 2,842,944 2,426,903 10.3% 8.5% Income from operations 17,096,694 19,799,858 62.2% 69.3% Interest expense, net 12,643,359 11,515,933 46.0% 40.3% Other income, net 440,838 291,399 1.6% 1.0% Income from operations before income taxes 4,894,173 8,575,324 17.8% 30.0% Income tax expense $ 1,301,072 $ 2,138,950 4.7% 7.5% Net income $ 3,593,101 $ 6,436,374 13.1% 22.5%
