China's Guangshen Railway overcame weather problems earlier in the year to boost revenue 17 percent to $1.3 billion in the nine months ending Sept. 30. But higher taxes and finance costs connected with building a fourth rail line held net income to $155 million, down 7 percent from $166 million in the first nine months of 2007.
"Net profit of the company witnessed a slight decline year-on-year as the conversion of bank loan interests into expenses for the construction of Guangshen Fourth Rail Line resulted in an increase in finance costs of the company, and the gradual increase of the income tax rate for the company from 15 percent to 25 percent since 1 January 2008 also led to an increase in income tax expense compared to that of the corresponding period last year," said He Yuhua, chairman of the company.
Looking ahead to major railway construction projects in the next ten years, Mr. He said the company will benefit from increased demand.
Guangshen Railway Company Limited was established in 1996 and is currently the only PRC railway traded outside the country.