Shenzhen plans to spend 10 billion yuan (US$1.2 billion) to expand the city's airport as travel demand grows, the Wen Wei Po reported, citing a government official.

The city government will add a second runway to the Shenzhen Bao'an International Airport, the Hong Kong-based Chinese-language newspaper said, citing Shen Yi, an official with the National Development and Reform Commission's Shenzhen bureau.

The plan requires approval from the National Development and Reform Commission, the country's top economic planner, the report said. Shenzhen's airport handled 14.3 million passengers last year, making it the country's fifth-busiest air terminal, according to the General Administration of Civil Aviation of China, the industry regulator.

Airports in Shenzhen and other Chinese cities handled a combined 242 million passengers in 2004, 39 percent more than a year earlier.

Shenzhen Airport Co., operator of Shenzhen's airport, posted Monday a 1.39 percent year-on-year increase in its net profit of 182.45 million yuan (US$22.49 million) for the first half of this year.

Total revenue rose 4.3 percent year on year to 480.4 million yuan and earnings per share stood at 0.228 yuan, against 0.225 yuan a year earlier.

The Shenzhen-listed firm said lower investment income for the first half, which fell by 7.38 million yuan to 230,000 yuan from a year earlier, dented the company's net profit growth.

(Shenzhen Daily August 24, 2005)