Inc. (“NYSE”), respectively. In December 2006, the A shares (“A Shares”, share code: 601333) issued by the Company were listed on the Shanghai Stock Exchange. The Company is currently the only PRC railway enterprise with its shares listed in Shanghai, Hong Kong and New York. The Company is mainly engaged in railway passenger and freight transportation businesses between Shenzhen and Pingshi and certain long-distance passenger transportation services. The Company also cooperates with MTR Corporation Limited (“MTR”) in Hong Kong in operating the Hong Kong Through Train passenger service. The Company provides integrated services relating to railway facilities and technology.The Company is also engaged in commercial trading and other businesses that are consistent with its overall business strategy. The Guangshen Railway, which is operated solely and independently by the Company, is 152 kilometres long.It traverses the Pearl River Delta in Guangdong Province, a region with rapid economic growth.

The Guangshen Railway is strategically located and links with major railway networks in China, including the Beijing-Guangzhou, Beijing-Kowloon, Sanshui-Maoming, Pinghu- Nantou, and Pinghu-Yantian lines, as well as to the Kowloon-Canton Railway in Hong Kong. It is an important component of the transportation network of the southern China, as well as the only railway channel linking Hong Kong with inland China.
The Guangshen Railway operated by the Company is currently one of the most modern railways in the PRC, and also the first railway in China that operates high-speed passenger trains with a speed of up to 200 kilometres per hour. Upon completion of the fourth Guangzhou-Shenzhen Rail Line (the “Fourth Rail Line”) in 2007, Guangzhou-Shenzhen Railway became the first wholly-fenced high-speed railway with four parallel lines in the PRC that allows the high-speed passenger trains and regular speed passenger and freight trains to run on separate lines, thus substantially improving the transportation capacity of the Company.

Passenger transportation is the principal business of the Company and Guangshen Railway is one of the busiest railways engaged in passenger transportation in China. As of September 30,2007, the Company operated 196 pairs of passenger trains in accordance with its daily train schedule, including 80 pairs of high-speed passenger trains between Guangzhou and Shenzhen, 13 pairs of Hong Kong Through Trains, 4 pairs of regular-speed passenger trains between Guangzhou and Shenzhen, and 99 pairs of long-distance passenger trains. With the Company’s effort to promote the development of high-speed passenger trains, one pair of high-speed trains between Guangzhou and Shenzhen are dispatched every 10 minutes on average during peak hours, and the “As-frequent-as-buses” inter-city operation has basically taken shape. In 2007, a new type of domestic manufactured EMU named HEXIE (“CRH”) introduced by the Company was put into operation in succession on the Guangzhou-Shenzhen line, further increasing the transportation capacity of the Company, promoting the brand of its passenger transportation service and improving its competitiveness in the market.

Freight transportation is one important business of the Company. The Guangshen Railway is closely linked with neighbouring ports including Guangzhou Port in Guangzhou, Yantian Port, Shekou Port, Chiwan Port, and Mawan Port in Shenzhen. The Company is well-equipped with various freight facilities and can efficiently transport full load cargo, single load cargo, containers, bulky and overweight cargo, dangerous cargo, fresh and live cargo, and oversized cargo. The Company enjoys competitive advantages in transporting freight for medium to long distances in the PRC.

In January 2007, the Company finalized the acquisition of the operating assets of Guangzhou-Pingshi Railway, the southernmost section of Beijing-Guangzhou line. The operation of the Company has expanded from a regional railway to national trunk line networks. The operating distance of the Company extended from 152 kilometers to 481.2 kilometers, running vertically through the whole Guangdong Province. The service territory of the passenger and freight transportation businesses covers the Pearl River Delta, the Northern, Western and Eastern Guangdong Province, and even further to Hunan, Fujian provinces and Southwestern China. The operating scale and room for the development of passenger and freight transportation businesses are both significantly enlarged, and the competitiveness and overall operating efficiency of the Company will also be greatly improved. With the integration of the railway transportation resources of Guangzhou-Shenzhen line and Guangzhou-Pingshi line and further development of economic cooperation within the Pan Pearl River Delta, the Company will have more promising development prospects.