China Merchants Holdings Pacific

[Nick]

HI Buddies,

I have a few questions.

It is stated that Jiurui contribute 12 mio to profits, and in its review it is state "negative goodwill amounting to HK$22.8 million arising from the acquisition of Jiurui Expressway. "

So jiurui actually still making a loss of 10 mio??? correct? I thought the Jiurui's turnaround is super fast, until I saw that statement.

Also it states that
Guihuang Highway ". Profit contribution from Gui Huang joint ventures increased 8.7% to HK$134.2 million, mainly attributable to higher toll revenue and other toll road related income achieved,

But the traffic vol for road is actuall lower. I am not sure how to comprehend the numbers with the statement, can someone enlighten me?

Jiurui did report HK$12 million core operating profit.

http://infopub.sgx.com/FileOpen/FY2014-A...eID=336541 [Toll Ops]

At the bottom, under 'Other Revenue and Expenses', the negative goodwill is included there and not under the Jiurui results.

The turnaround is due to the sharp reduction in financing expenses.

Thanks Nick,

How about the traffic cop falling but rev increasing ??

They had a toll booth relocation so it may have resulted in changes to toll fees ? Less cars but longer travel distance ? Not too certain.