Mainboard-listed China Merchants Holdings (Pacific) has announced a net profit after tax of HK$62.1 million ($10.4 million) for the third quarter ended 30 September 2010, down 39% from the HK$102 million recorded in the previous corresponding quarter. For the first nine months of 2010, net profit after tax decreased by 11% to HK$235.1 million from HK$264.1 million a year ago.

The group’s pre-tax profit in 3Q10 was down 39% on the corresponding period of the previous year. Pre-tax profit for the nine months ended 30 September 2010 saw a decline of 12% from the corresponding period last year to reach HK$243.2 millon.

Pre-tax profit contribution from the group’s core business — toll roads in China — registered a decline of 37% in 3Q10 largely due to a lower profit attained by Guiliu Expressway. Profit contribution from Guiliu Expressway dipped by 67% or HK$43.3 million due to the reduction in profit/cash sharing ratio from 90% to 40% with effect from 1 January 2010 in accordance with the Guiliu Expressway joint venture agreement. The receipt of subsidy income had also ceased from the same date.

The performance of Guihuang Highway was affected by traffic diversion from competing roads. Toll revenue and profit contribution from Guihuang Highway decreased 7% and 8% respectively.

The performance of Yuyao Highway improved after the relocation of a toll station and the change of toll rate structure at this station. In the current quarter, toll revenue from Yuyao Highway registered an increase of 58% while profit contribution increased 84%.

The property development and others business segment as a whole posted a pre-tax loss of HK$1.7 million in the third quarter compared to a loss of HK$470,000 recorded in the corresponding period last year.

For the year-to-date, the toll road operations recorded a drop of 13% in pre-tax profit to HK$251 million while the property development and others business segment posted a lower pre-tax loss of HK$7.7 million compared to a pre-tax loss of HK$12.5 million a year ago.

Chief Executive Officer Mr Jiang Yan Fei said, “The business outlook for the toll road industry in China remains positive and we expect the traffic volume and toll revenue of the Group’s toll roads to be maintained at current levels.”