N@N

China Infrastructure Investment Corporation Reports First Quarter Results

^{Published on 2009-11-16 05:27:55 - Market Wire}
 

BEIJING--(Marketwire - November 16, 2009) - 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 ============ ============