Financial Performance - The company reported a revenue of RMB 1.2 billion for the first half of 2021, representing a year-on-year increase of 15%[15]. - The company's revenue for the six months ended June 30, 2021, was RMB 4,022,892 thousand, representing a 72% increase compared to RMB 2,339,595 thousand in the same period of 2020[37]. - The net profit attributable to the owners of the company for the six months ended June 30, 2021, was RMB 673,714 thousand, a turnaround from a loss of RMB 164,758 thousand in 2020[38]. - The company's attributable profit to the owners of the company was approximately RMB 673,714 thousand, reflecting a year-on-year growth of 508.91%[155]. - The operating profit for the six months ended June 30, 2021, was RMB 911,137 thousand, compared to a loss of RMB 89,970 thousand for the same period in 2020, marking a turnaround in performance[63][64]. - The group's profit for the period was RMB 731,660 thousand, a turnaround from a loss of RMB 136,161 thousand in the same period last year, representing an increase of RMB 867,821 thousand[186]. Revenue Segments - The revenue from customer contracts reached RMB 3,915,332 thousand for the six months ended June 30, 2021, compared to RMB 2,241,392 thousand in the same period of 2020, indicating a growth of about 74%[71]. - The toll revenue from the toll road segment was RMB 1,795,488 thousand, up 102.74% from RMB 885,592 thousand in the previous year, primarily due to the normalization of toll collection after pandemic-related exemptions[177]. - The urban operations segment generated net revenue of approximately RMB 1,375,798 thousand, reflecting a growth of 108.08% compared to RMB 661,181 thousand in the same period last year[178]. - The financial investment segment reported a net revenue of approximately RMB 99,916 thousand, with a year-on-year increase of about 7.02%[155]. - The energy investment segment generated a net revenue of approximately RMB 751,690 thousand, reflecting a year-on-year growth of approximately 7.47%[155]. Traffic and Operations - User traffic on the expressways increased by 10% compared to the same period last year, with an average daily traffic volume of 150,000 vehicles[15]. - The average daily traffic volume for Chengyu Expressway was 20,977 vehicles, a decrease of 21.90% from the previous year, with toll revenue of RMB 383,232 thousand, up 70.44%[156]. - The average daily traffic volume for Chengya Expressway was 48,276 vehicles, a decrease of 4.40% from the previous year, with toll revenue of RMB 514,841 thousand, an increase of 132.57%[156]. - The average daily traffic volume for Chengren Expressway was 41,231 vehicles, a decrease of 5.61% from the previous year, with toll revenue of RMB 463,472 thousand, an increase of 102.71%[156]. - The average daily traffic volume for Chengle Expressway was 25,155 vehicles, a decrease of 9.03% from the previous year, with toll revenue of RMB 184,870 thousand, an increase of 79.79%[156]. - The average daily traffic volume for Suiguang Expressway was 12,317 vehicles, an increase of 96.88% from the previous year, with toll revenue of RMB 119,777 thousand, an increase of 117.65%[156]. - The average daily traffic volume for Suixi Expressway was 10,295 vehicles, an increase of 253.42% from the previous year, with toll revenue of RMB 78,929 thousand, an increase of 184.06%[156]. Assets and Liabilities - The total assets of the company as of June 30, 2021, were approximately RMB 41,086,301 thousand, with net assets of RMB 17,003,183 thousand[34]. - The company's non-current assets totaled RMB 31,628,869 thousand as of June 30, 2021, an increase from RMB 31,104,316 thousand at the end of 2020[42]. - The total liabilities as of June 30, 2021, were RMB 24,083,118 thousand, compared to RMB 23,870,700 thousand at the end of 2020, showing a slight increase[68][69]. - Current liabilities decreased to RMB 5,302,784 thousand from RMB 8,934,593 thousand, reflecting a reduction of approximately 40.5%[44]. - Non-current liabilities rose to RMB 18,780,334 thousand from RMB 14,936,107 thousand, marking an increase of about 25.5%[45]. - The company's total liabilities decreased from RMB 3,180,340 thousand at the beginning of the period to RMB 3,401,663 thousand at the end of the period[55]. Investments and Projects - New projects, including the Chengdu Tianfu New Area to Qionglai Expressway, are expected to enhance operational capacity and contribute an additional RMB 300 million in revenue annually[15]. - The company has allocated RMB 500 million for infrastructure development projects in the next two years[15]. - The company completed a total investment of approximately RMB 11.19 billion in the Tianqiong Expressway BOT project as of June 30, 2021[170]. - The estimated total investment for the Lushan County tourism highway PPP project is approximately RMB 390 million, with a construction length of 8.3 kilometers[174]. - The company plans to divest its 91% stake in Renshou Land Company for a total consideration of up to RMB 1,858.2 million to optimize its asset structure[169]. Cost Management and Efficiency - Investment in technology upgrades for toll collection systems is projected to improve operational efficiency by 20%[15]. - A focus on sustainable practices is expected to reduce operational costs by 10% over the next three years[15]. - The company's financing costs for the six months ended June 30, 2021, were RMB 299,790 thousand, down from RMB 328,129 thousand in the same period of 2020[37]. - The company experienced a decrease in contract liabilities by RMB 261,892,000, compared to an increase of RMB 423,024,000 in the previous year, suggesting a shift in revenue recognition[51]. Shareholder Information - As of June 30, 2021, the total number of shareholders was 50,277, with 50,021 holding A-shares and 256 holding H-shares, indicating a diverse shareholder base[144]. - The company did not declare an interim dividend for 2021, consistent with the previous year[117]. - The company's major shareholder, Shudao Investment, holds approximately 35.86% of the company's shares following a merger agreement[148]. Tax and Regulatory Compliance - The income tax expense for the period was RMB 179,477 thousand, significantly higher than RMB 46,191 thousand for the same period in 2020[79]. - The company continues to benefit from a preferential corporate income tax rate of 15% for enterprises in encouraged industries in the western region, effective until December 31, 2030[81]. - The company has no profits earned in Hong Kong during the period, thus no provision for Hong Kong income tax was made[79].

Financial Performance - The company's net profit attributable to owners for 2020 was approximately RMB 674.81 million, a year-on-year decrease of 37.87%[157]. - Basic earnings per share for 2020 were approximately RMB 0.221, compared to RMB 0.355 in 2019[157]. - The company achieved a net revenue of approximately RMB 8.199 billion and a total pre-tax profit of about RMB 992 million for the year[161]. - The attributable profit to the owners of the company was approximately RMB 674,809 thousand, a decrease of 37.87% year-on-year[170]. - The basic earnings per share were approximately RMB 0.221, down from RMB 0.355 in 2019[170]. - The group's total toll revenue (net of turnover tax) for 2020 was approximately RMB 3,021,017 thousand, a decrease of 22.83% year-on-year, accounting for 36.69% of the main business revenue[177]. Dividend and Profit Distribution - The board proposed a final cash dividend of RMB 0.08 per share, totaling approximately RMB 244.65 million, which accounts for 47.27% of the distributable profits[157]. Operational Challenges and Responses - In 2020, the company's operational performance faced significant challenges due to the COVID-19 pandemic and other adverse conditions, yet it managed to achieve notable progress in various areas[158]. - The company continues to strengthen its risk management framework, maintaining compliance and governance standards, and was rated as an "A" level company for information disclosure by the Shanghai Stock Exchange[161]. - The company is committed to maintaining safety and environmental standards while addressing the impacts of the COVID-19 pandemic on its operations[167]. - The group faced significant impacts from the COVID-19 pandemic, leading to reduced traffic flow and toll revenue during the early part of the year[181]. Infrastructure Development - The total length of the expressway network reached 8,140 kilometers, with 38 major access routes to and from Sichuan province established[160]. - Key projects such as the Chengle Expressway expansion and Tianqiong Expressway project have made significant progress, with the former completing environmental assessments and the latter forming a project company[161]. - The company reported a total investment of approximately RMB 231.33 billion for the Chengle Expressway expansion project, with an estimated completion of 138.41 kilometers[192]. - The total estimated investment for the Tianqiong Expressway BOT project is approximately RMB 8.685 billion, with cumulative investment completed of about RMB 834 million by December 31, 2020[197]. - The Lu Shan County Dachuan River Scenic Area Tourist Road project has a total investment of approximately RMB 760 million, with the scenic road investment being RMB 720 million[198]. Revenue Segments - The toll revenue segment reported a net revenue of approximately RMB 3,007,666 thousand, a decrease of about 22.87% compared to the previous year[170]. - The urban operation segment saw a significant increase in net revenue, reaching approximately RMB 3,545,098 thousand, which is a year-on-year growth of about 78.38%[170]. - The financial investment segment's net revenue increased by approximately 26.73%, totaling around RMB 186,695 thousand[170]. - The group's advertising revenue decreased by 58.51% year-on-year, with losses increasing by 4,251.72% due to the impact of the pandemic on advertising operations[173]. Traffic and Toll Adjustments - The average daily traffic volume for Chengyu Expressway increased by 9.08% year-on-year, while toll revenue decreased by 26.39%[176]. - The implementation of new toll collection policies in Sichuan province began on January 1, 2020, affecting the operational performance of the group's expressways[183]. - The toll rates for passenger vehicles and trucks have been adjusted according to the new classification system, with rates for trucks now based on vehicle type rather than weight[185]. - The toll rate for the Chengyu Expressway is set at RMB 1.17 per kilometer for Class 3 trucks, with additional bridge and tunnel charges of RMB 8.71[186]. Real Estate Development - The company is actively involved in real estate development, having acquired land in Renshou County for RMB 920.16 million, covering an area of 235,558.10 square meters[193]. - The real estate project "Beicheng Times" Phase I achieved total sales revenue of approximately RMB 531.19 million as of December 31, 2020[195]. - Phase II A plot of "Beicheng Times" generated sales receipts of RMB 604 million during the reporting period, with confirmed sales revenue of approximately RMB 476 million[195]. Future Plans and Strategic Focus - The company plans to focus on expanding its market presence and optimizing its business layout in response to challenges in maintaining high revenue levels and increasing financing needs[166]. - The company aims to enhance its operational capabilities and ensure stable growth while addressing risks and improving efficiency in the upcoming year[166]. - The company plans to enhance core business profitability and market competitiveness by focusing on key transportation projects and diversifying related projects[167]. - The company will continue to push for high-quality development in the transportation sector, aligning with national strategies for infrastructure improvement and economic recovery[166].

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB, representing a 15% growth compared to the previous period[1]. - Total revenue for the six months ended June 30, 2020, was RMB 2,339,595 thousand, a decrease of 29.8% compared to RMB 3,327,239 thousand for the same period in 2019[23]. - The group reported a consolidated net loss of RMB 164,758,000 for the period, compared to a net profit of RMB 832,876,000 in the same period of 2019[48]. - The group’s attributable profit was approximately RMB (164,758) thousand, a decline of 119.78% year-on-year, with basic earnings per share estimated at RMB (0.054) compared to RMB 0.272 in the same period of 2019[144]. - The group experienced a segment profit loss of RMB 32,214,000, compared to a profit of RMB 1,129,211,000 in the previous year, highlighting a substantial drop in profitability[53][54]. User Engagement and Market Expansion - User data showed an increase in active users, reaching 5 million, which is a 20% increase year-over-year[2]. - The company is expanding its market presence by entering two new provinces, which is anticipated to increase market share by 5%[5]. - The company plans to focus on expanding its urban operations and enhancing service offerings in the coming quarters[60]. Future Outlook and Strategic Initiatives - The company provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 1.32 billion RMB[3]. - New product launches are expected to contribute an additional 200 million RMB in revenue over the next six months[4]. - The company is considering strategic acquisitions to bolster its competitive position in the market, with potential targets identified[7]. - Future guidance indicates a commitment to sustainable practices, with a target of reducing carbon emissions by 30% over the next five years[10]. Operational Efficiency and Cost Management - Operational efficiency improvements have led to a 10% reduction in costs, enhancing overall profitability[8]. - The company aims to improve operational efficiency and reduce costs in response to the challenging market conditions[61]. - A comprehensive budget management and cost control strategy is being implemented to minimize the impact of the pandemic on operational costs[196]. Financial Position and Assets - Total assets as of June 30, 2020, were approximately RMB 38,486,474 thousand, with net assets of RMB 15,619,787 thousand[20]. - The company’s cash and cash equivalents amounted to RMB 2,905,316 thousand as of June 30, 2020, slightly down from RMB 2,951,704 thousand at the end of 2019[29]. - The company’s total liabilities included RMB 5,603,060,000 classified as current liabilities as of June 30, 2020, compared to RMB 3,541,803,000 at the end of 2019[105]. Debt and Financing - The company’s interest-bearing loans included RMB 12,443,520,000 secured loans as of June 30, 2020, an increase from RMB 11,955,993,000 at the end of 2019[107]. - The total interest-bearing borrowings amounted to RMB 17,894,150 thousand as of June 30, 2020, with domestic bank loans accounting for RMB 15,003,520 thousand[187]. - The company has secured a loan credit limit of RMB 50.031 billion from financial institutions for the next one to two years[189]. Impact of COVID-19 - The overall operating performance of the expressways was impacted by the COVID-19 pandemic, with a significant reduction in traffic and toll revenue during the first half of 2020[148]. - The toll revenue (before turnover tax) was approximately RMB 889,240 thousand, down about 56.21% compared to the same period last year[147]. - The average daily traffic volume for Chengyu Expressway increased by 30.71% compared to the same period last year, while toll revenue decreased by 53.31%[145]. Investments and Projects - The estimated total investment for the Chengle Expressway expansion project is approximately RMB 231.33 billion, with a completed investment of about RMB 3.383 billion as of June 30, 2020[159]. - The company has signed an investment agreement for the Tianqiong Expressway project with the Chengdu government, marking a significant step in its infrastructure development strategy[163]. - The company is actively involved in the real estate market, with ongoing sales and construction in the Beicheng Times project, indicating diversification of revenue streams[160]. Shareholder Information - The total number of shareholders as of June 30, 2020, was 57,590, with 57,330 A-share shareholders and 260 H-share shareholders[133]. - The largest shareholder, Sichuan Communications Investment Group, held approximately 33.87% of the total issued shares[135]. - The company declared no interim dividend for 2020, consistent with the previous year, while the final dividend for 2019 was RMB 0.110 per share, up from RMB 0.100 in 2018[109].

[Company Overview](index=2&type=section&id=Company%20Overview) This section provides fundamental information about the company, including definitions, basic legal details, and a concise profile of its core business and financial standing [Definitions](index=2&type=section&id=Definitions) This section defines key road projects, abbreviations of associated companies, and other professional terms used in the report, providing a foundational understanding - Major road projects mentioned in the report include Airport Expressway, Chengle Expressway, Chengya Expressway, and Chengyu Expressway[5](index=5&type=chunk) - Key subsidiaries and investment entities mentioned include Renshou Land Company, Shuhai Company, Jiaotou Construction Company, and Zhonglu Energy Company[26](index=26&type=chunk) [Company Information](index=8&type=section&id=Company%20Information) This section provides the company's basic legal and contact information, including its legal name, registered address, stock exchange codes, board secretary contact, and information disclosure channels Company Details | Item | Information | | :--- | :--- | | Company Name | Sichuan Chengyu Expressway Company Limited | | A-share Code | 601107 (Shanghai Stock Exchange) | | H-share Code | 00107 (The Stock Exchange of Hong Kong Limited) | | Legal Representative | Gan Yongyi | | Registered Address | No. 252 Wuhouci Street, Chengdu, Sichuan Province, China | [Company Profile](index=10&type=section&id=Company%20Profile) Established in 1997, the company is listed in Hong Kong and Shanghai, primarily investing in, constructing, operating, and managing expressways in Sichuan Province, with total assets of approximately **RMB 37.86 billion** and operating **744 kilometers** of expressways by end of 2019 - The company primarily holds all or a majority of equity interests in expressways within Sichuan Province, including Chengyu Expressway, Chengya Expressway, and Chengle Expressway[76](index=76&type=chunk) Key Indicators (as of December 31, 2019) | Indicator | Amount (RMB thousands) | | :--- | :--- | | Total Toll Road Mileage | Approximately **744 kilometers** | | Total Assets | **37,860,574** | | Net Assets | **16,153,968** | [Chairman's Report](index=13&type=section&id=Chairman's%20Report) This report provides an overview of the company's performance, strategic initiatives, and future outlook, highlighting key achievements and challenges faced during the reporting period [Performance and Dividends](index=14&type=section&id=Performance%20and%20Dividends) In 2019, net profit attributable to owners increased by **27.83%** to **RMB 1.086 billion**, with a proposed final cash dividend of **RMB 0.11** per share (tax inclusive) Performance and Proposed Dividend | Indicator | 2019 | 2018 | YoY Change | | :--- | :--- | :--- | :--- | | Profit attributable to owners (RMB thousands) | **1,086,131** | **849,638** | **+27.83%** | | Basic Earnings Per Share (RMB) | **0.355** | **0.278** | **+27.70%** | | Proposed Final Dividend Per Share (RMB) | **0.11** | - | - | [2019 Business Review](index=15&type=section&id=2019%20Business%20Review) The company achieved steady operational growth in 2019, with net revenue increasing by **14.45%** and significant breakthroughs in its core toll road business and diversified segments - In 2019, the company's toll revenue reached **RMB 3.899 billion**, a **9.29%** year-on-year increase; revenue from related diversified segments reached **RMB 3.908 billion**, accounting for **50.06%** of total revenue[85](index=85&type=chunk) - Major breakthroughs in the core toll road business include: - Winning the bid for the Tianqiong Expressway project as the lead party - Jointly participating with other companies in the acquisition of the Istanbul Third Bridge and Northern Ring Expressway in Turkey - Completion and opening of the experimental section of the Chengle Expressway expansion project[86](index=86&type=chunk) - Significant achievements in diversified business segments: - **Financial Investment**: Financing lease company achieved growth in both revenue and profit, with an investment of **RMB 69 million** in China Railway Signal & Communication Corporation Limited[86](index=86&type=chunk) - **Urban Operations**: Renshou Beicheng Times project generated sales proceeds of **RMB 1.01 billion**[86](index=86&type=chunk) - **Energy Sales**: Zhonglu Energy Company's net profit increased by **70.26%** year-on-year, achieving its best historical performance[86](index=86&type=chunk) - **Culture, Tourism, and Education**: The Dashuan River health and wellness tourism project in Lushan County entered the substantive promotion phase[87](index=87&type=chunk) [Outlook and Strategies](index=18&type=section&id=Outlook%20and%20Strategies) For 2020, the company plans to strengthen its core toll road business and diversified segments, while implementing cost control and efficiency measures to mitigate the impact of the COVID-19 toll-free policy - The company will wage a "main business offensive" to consolidate its core foundation and a "diversified industry positional battle" to strengthen business segments aligned with its main operations[89](index=89&type=chunk) - To address the toll-free policy during the COVID-19 pandemic, the company will implement measures such as cost control, budget adjustments, efficiency improvements, orderly resumption of work, and seeking supporting policies, striving to balance social responsibility with economic benefits[89](index=89&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review and analysis of the Group's business performance, financial results, and future development plans for the reporting period [Business Review and Analysis](index=19&type=section&id=Business%20Review%20and%20Analysis) In 2019, the Group's net revenue grew by **14.45%** to **RMB 7.807 billion**, and net profit attributable to owners increased by **27.83%** to **RMB 1.086 billion**, driven by strong performance in urban operations and financial investments 2019 Net Revenue and YoY Change by Business Segment | Business Segment | Net Revenue (RMB thousands) | YoY Growth Rate | | :--- | :--- | :--- | | Toll Road | **3,899,438** | **9.29%** | | Financial Investment | **147,321** | **68.36%** | | Urban Operations | **1,987,349** | **57.96%** | | Energy Investment | **1,772,635** | **-7.06%** | | **Total** | **7,806,743** | **14.45%** | [Performance Summary](index=19&type=section&id=Performance%20Summary) The Group's net revenue increased by **14.45%** to **RMB 7.807 billion**, and net profit attributable to owners grew by **27.83%** to **RMB 1.086 billion**, with varied performance across key subsidiaries Performance of Major Subsidiaries (2019) | Company Name | Revenue (RMB thousands) | Revenue YoY | Profit (RMB thousands) | Profit YoY | | :--- | :--- | :--- | :--- | :--- | | Chengren Branch | **1,021,189** | **18.07%** | **393,342** | **38.50%** | | Chengle Company | **496,947** | **-11.57%** | **258,330** | **-16.48%** | | Suiguang Suixi Company | **370,984** | **30.10%** | **(340,573)** | **-20.29%** (loss reduction) | | Ziyang Shunan Company | **263,957** | **19.71%** | **42,424** | **469.76%** | | Zhonglu Energy Company | **1,272,981** | **-10.52%** | **41,318** | **70.26%** | | Chengyu Financial Leasing Company | **143,399** | **63.88%** | **44,564** | **22.61%** | [Toll Road Segment Operations](index=23&type=section&id=Toll%20Road%20Segment%20Operations) In 2019, total toll revenue increased by **9.28%** to **RMB 3.915 billion**, driven by policy changes and traffic growth, though some expressways experienced declines due to construction Expressway Operating Performance (2019) | Project | Daily Average Vehicle Traffic | Traffic YoY | Toll Revenue (RMB thousands) | Revenue YoY | | :--- | :--- | :--- | :--- | :--- | | Chengyu Expressway | **23,042** | **-6.56%** | **944,238** | **13.74%** | | Chengya Expressway | **41,596** | **3.12%** | **966,357** | **5.37%** | | Chengren Expressway | **40,389** | **1.31%** | **1,024,965** | **18.08%** | | Chengle Expressway | **28,943** | **-17.95%** | **498,832** | **-11.57%** | | Suixi Expressway | **2,929** | **10.91%** | **154,873** | **52.54%** | - Toll revenue growth was influenced by multiple favorable policies, including the cancellation of toll fee discounts for normally loaded trucks starting January 15, 2019, and the reclassification of 20-30 seat passenger vehicles as Class III vehicles from January 1, 2019[100](index=100&type=chunk)[101](index=101&type=chunk) - Chengle Expressway and Chengbei Exit Expressway experienced negative impacts on vehicle traffic and toll revenue due to expansion and road surface treatment construction closures[111](index=111&type=chunk) [Diversified Business Operations](index=31&type=section&id=Diversified%20Business%20Operations) The diversified business segments achieved significant results in 2019, with urban operations and financial investments showing strong revenue growth, while energy investment saw a slight decline - **Urban Operations**: Net revenue of **RMB 1.987 billion**, a **57.96%** year-on-year increase, primarily contributed by BT/PPP projects[112](index=112&type=chunk) - **Energy Investment**: Net revenue of **RMB 1.773 billion**, a **7.06%** year-on-year decrease, mainly due to reduced sales of petrochemical products[112](index=112&type=chunk) - **Financial Investment**: Net revenue of **RMB 147 million**, a **68.36%** year-on-year increase, with business covering various forms such as financing leases, trusts, and banking[112](index=112&type=chunk) - **Culture, Tourism, and Education**: As an emerging business segment, it achieved breakthroughs, with an investment intention agreement signed for the Dashuan River health and wellness tourism project in Lushan County[113](index=113&type=chunk) [Major Investment and Financing Projects](index=32&type=section&id=Major%20Investment%20and%20Financing%20Projects) The Group advanced several major investment projects, including the **RMB 22.16 billion** Chengle Expressway expansion, the **RMB 8.685 billion** Tianqiong Expressway, and an overseas acquisition in Turkey - **Chengle Expressway Expansion Project**: Estimated total investment of approximately **RMB 22.16 billion**, with the experimental section opened in November 2019, and cumulative investment reaching **RMB 2.712 billion** by year-end[114](index=114&type=chunk) - **Tianqiong Expressway Project**: The company successfully won the bid as the lead party, with an estimated total investment of **RMB 8.685 billion**, adopting a BOT model, and a project company established for investment, construction, and operation[120](index=120&type=chunk)[121](index=121&type=chunk) - **Turkey Acquisition Project**: Jointly with China Merchants Expressway and other companies, the Group plans to acquire a **51%** equity stake in the Istanbul Third Bridge and Northern Ring Expressway project in Turkey, with the company intending to invest **USD 48.195 million** for a **7%** stake[122](index=122&type=chunk) - **China Railway Signal & Communication Corporation Limited A-share IPO Strategic Placement**: Participated in the strategic placement with **RMB 69.258 million** of self-owned funds, acquiring **11.839 million** shares with a 12-month lock-up period[124](index=124&type=chunk) [Financial Review and Analysis](index=37&type=section&id=Financial%20Review%20and%20Analysis) The Group's total revenue increased by **14.45%**, driven by urban operations and financial investments, while operating expenses rose by **15.32%** due to construction costs, leading to a **25.67%** increase in profit for the year 2019 Operating Results Summary (RMB thousands) | Indicator | 2019 | 2018 | | :--- | :--- | :--- | | Revenue | **7,806,743** | **6,820,997** | | Profit Before Tax | **1,463,539** | **1,205,912** | | Profit Attributable to Owners | **1,086,131** | **849,638** | Financial Position Summary (RMB thousands) | Indicator | December 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Total Non-current Assets | **28,950,380** | **28,257,374** | | Total Current Assets | **8,910,194** | **7,777,684** | | **Total Assets** | **37,860,574** | **36,035,058** | | Total Current Liabilities | **7,395,309** | **5,277,181** | | Total Non-current Liabilities | **14,311,297** | **15,873,478** | | **Total Liabilities** | **21,706,606** | **21,150,659** | | **Net Assets** | **16,153,968** | **14,884,399** | [Operating Results Analysis](index=38&type=section&id=Operating%20Results%20Analysis) Revenue growth of **14.45%** was primarily driven by urban operations and financial investments, while operating expenses increased by **15.32%** due to construction costs, resulting in a **27.83%** increase in profit attributable to owners - Revenue growth was primarily driven by the urban operations segment (**+57.96%**) and the financial investment segment (**+68.36%**)[127](index=127&type=chunk)[128](index=128&type=chunk) - Operating expenses increased by **15.32%**, mainly due to a substantial **95.94%** year-on-year increase in construction costs related to service concession arrangements[130](index=130&type=chunk) - Full-year profit attributable to owners increased by **27.83%**, primarily contributed by a **RMB 216 million** increase in profit from the toll road segment and a **RMB 78 million** increase in profit from the urban operations segment[133](index=133&type=chunk) [Financial Position Analysis](index=42&type=section&id=Financial%20Position%20Analysis) As of year-end 2019, total assets grew to **RMB 37.86 billion**, with non-current assets increasing due to the Chengle Expressway expansion, and the debt-to-capital ratio improving to **57.33%** - Non-current assets increased by **RMB 693 million**, primarily due to a **RMB 613 million** increase in service concession arrangements (Chengle Expressway expansion project)[134](index=134&type=chunk) - Current liabilities significantly increased by **40.14%**, mainly due to the reclassification of bank and other interest-bearing loans due within one year[136](index=136&type=chunk) - The debt-to-capital ratio (total liabilities/total assets) was **57.33%**, a decrease from **58.69%** at the end of 2018[139](index=139&type=chunk) [Cash Flow Analysis](index=44&type=section&id=Cash%20Flow%20Analysis) Cash and bank balances decreased by **RMB 706 million** to **RMB 2.95 billion** at year-end 2019, with operating cash flow significantly reduced due to increased trade receivables and service concession arrangements Consolidated Cash Flow Summary (RMB thousands) | Cash Flow Item | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | **607,204** | **1,939,479** | | Net Cash Flow from/(Used in) Investing Activities | **689,180** | **(536,992)** | | Net Cash Flow from Financing Activities | **(2,002,100)** | **(464,320)** | | Net Increase/(Decrease) in Cash and Cash Equivalents | **(705,716)** | **938,167** | [Business Development Plan](index=48&type=section&id=Business%20Development%20Plan) The 2020 plan focuses on strengthening the core expressway business and diversified industries through strategic investments, capital structure optimization, cost control, and institutional innovation - Consolidate core business: Increase investment in new expressway construction and expansion of existing road networks with clear geographical advantages and good profit expectations, and actively implement a "going out" strategy to acquire high-quality expressway projects both domestically and internationally[149](index=149&type=chunk) - Strengthen diversification: Leverage the advantages of road network resources (vehicle flow, logistics, human flow, cash flow) to expand related business areas and improve the return on project capital[149](index=149&type=chunk) - Optimize capital structure: Coordinate financing plans, utilize favorable financial, fiscal, and tax policies, reasonably adjust debt levels, and effectively reduce financial expenses[150](index=150&type=chunk) [Corporate Governance Report](index=49&type=section&id=Corporate%20Governance%20Report) This report details the company's corporate governance framework, compliance with regulatory codes, and the roles and responsibilities of its board, committees, and shareholders [Corporate Governance Status](index=49&type=section&id=Corporate%20Governance%20Status) The company largely complied with governance codes, with minor deviations, and maintained a robust governance structure with a board, supervisory committee, and management, supported by four specialized board committees - During the reporting period, the company complied with most provisions of the HKEX Corporate Governance Code, with only two deviations: some directors were unable to attend general meetings due to official duties; and the roles of Chairman and General Manager were temporarily held by the same person[151](index=151&type=chunk) - The Board confirmed its responsibility for establishing, implementing, and overseeing the company's risk management and internal control systems, reviewing their effectiveness annually; in 2019, the "Internal Control Manual" was revised and improved, with overall internal control operating effectively[154](index=154&type=chunk)[155](index=155&type=chunk) [Shareholders and General Meetings](index=54&type=section&id=Shareholders%20and%20General%20Meetings) The company ensures equal treatment for all shareholders, maintains independence from major shareholders, and adheres to a stable dividend policy with a cash payout ratio of no less than **30%** of distributable profit - The company maintains complete separation from its major shareholders in five aspects: personnel, assets, finance, organization, and business, ensuring independent operation[159](index=159&type=chunk) - The company's cash dividend policy stipulates that if cash dividends are distributed, the ratio shall not be less than **30%** of the parent company's distributable profit for the current period (whichever is lower between domestic and overseas standards)[163](index=163&type=chunk) [Board of Directors and Directors](index=61&type=section&id=Board%20of%20Directors%20and%20Directors) The Board, comprising 12 members with over one-third independent non-executive directors, oversees strategic decisions and major investments, supported by four specialized committees, and provides continuous professional development for directors - The Board has four specialized committees: Audit Committee, Strategy Committee, Nomination Committee, and Remuneration and Appraisal Committee, to assist in effectively fulfilling its duties[174](index=174&type=chunk) - As of the end of 2019, the Board consisted of 12 members, including 4 independent non-executive directors, accounting for over one-third, meeting regulatory requirements[175](index=175&type=chunk) [Board Committees](index=67&type=section&id=Board%20Committees) This section details the responsibilities and annual work of the Audit, Strategy, Nomination, and Remuneration & Appraisal Committees, highlighting their oversight of financial reporting, internal control, strategic planning, and executive compensation - **Audit Committee**: Fulfills corporate governance functions, monitors internal control, financial reporting, and risk management procedures, and provides recommendations on the appointment of external auditors[191](index=191&type=chunk) - **Strategy Committee**: Researches and provides recommendations on the company's long-term development strategy and major investment and financing proposals[200](index=200&type=chunk) - **Nomination Committee**: Responsible for formulating the board's diversity policy, researching selection criteria and procedures for directors and senior management, and making recommendations[201](index=201&type=chunk) - **Remuneration and Appraisal Committee**: Responsible for formulating and recommending remuneration policies and conducting performance appraisals for directors and senior management[203](index=203&type=chunk) [Directors' Report](index=79&type=section&id=Directors'%20Report) This report provides an overview of the Group's principal activities, key risks, and connected transactions during the reporting period [Principal Activities](index=80&type=section&id=Principal%20Activities) The Group's principal activities involve investing in, constructing, operating, and managing expressway infrastructure projects, complemented by diversified operations across five segments - The expressways managed and operated by the Group include Chengyu Expressway, Chengya Expressway, Chengren Expressway, Chengle Expressway, Chengbei Exit Expressway, Suixi Expressway, and Suiguang Expressway[215](index=215&type=chunk) [Principal Risks and Uncertainties](index=81&type=section&id=Principal%20Risks%20and%20Uncertainties) The company faces policy, market, financial, and management risks, which it addresses through government engagement, project development, diversification, and enhanced internal controls - **Policy Risks**: Toll standard adjustments, operating period limitations, and changes in toll collection methods (cancellation of provincial border toll stations); countermeasures include strengthening communication with the government, rolling out new projects, and implementing a diversified strategy[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk) - **Market Risks**: Macroeconomic fluctuations leading to changes in traffic volume, and increased competition from a denser regional road network; countermeasures include continuous monitoring of macroeconomic conditions and strengthening road network research and analysis[222](index=222&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk) - **Management Risks**: Risks from daily operations (e.g., maintenance, traffic accidents) and natural disasters, as well as the long payback period and uncertainty of expressway investment projects; countermeasures include strengthening preventive maintenance, optimizing investment decision-making processes, and promoting refined management[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk) [Connected Transactions](index=95&type=section&id=Connected%20Transactions) The Group engaged in various connected transactions, including construction, procurement, and overseas acquisitions with related parties, all conducted under fair terms and approved by independent non-executive directors - Engaged in ongoing connected transactions with Sichuan Provincial Investment Group Co., Ltd. (Sichuan Jiaotou) and its subsidiaries, including construction engineering, material procurement, office leasing, and sales agency[259](index=259&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk) - Jointly established a joint venture with major shareholder China Merchants Expressway and other consortium members to acquire an expressway project in Turkey[258](index=258&type=chunk) - Subsidiary Zhonglu Energy purchased refined oil products from related party PetroChina Sichuan Sales Branch, with annual procurement amounting to approximately **RMB 1.071 billion**[262](index=262&type=chunk) [Directors, Supervisors, Senior Management, and Employees](index=100&type=section&id=Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Employees) This section details changes in the company's leadership team and provides an overview of its employee structure, compensation, and training initiatives [Changes in Directors, Supervisors, and Senior Management](index=102&type=section&id=Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) The company experienced significant changes in its leadership team in 2019, including the resignation of the Chairman and Vice Chairman, and the election of new board and supervisory committee members - Mr. Zhou Liming resigned as Chairman on December 31, 2019, and Mr. Gan Yongyi was elected as the new Chairman on January 17, 2020[280](index=280&type=chunk) - On November 13, 2019, the company completed the re-election of its Board of Directors and Supervisory Committee, with several directors and supervisors retiring upon term expiration and a new cohort of members elected[280](index=280&type=chunk) [Employee Information](index=114&type=section&id=Employee%20Information) As of year-end 2019, the Group had **4,428** employees, predominantly production staff, with over **80%** holding college degrees or higher, supported by performance-linked compensation, comprehensive benefits, and extensive training Employee Statistics | Item | Number of People | | :--- | :--- | | Total Employees | **4,428** | | **Professional Composition** | | | Production Personnel | **3,213** | | Technical Personnel | **522** | | Administrative Personnel | **523** | | **Education Level** | | | Postgraduate and Above | **190** | | Bachelor's Degree | **1,215** | | College Degree | **2,118** | [Supervisors' Report](index=115&type=section&id=Supervisors'%20Report) This report presents the independent opinion of the Supervisory Committee on the company's operations, governance, financial reporting, and connected transactions for the year [Independent Opinion of the Supervisory Committee](index=119&type=section&id=Independent%20Opinion%20of%20the%20Supervisory%20Committee) The Supervisory Committee confirmed the company's lawful operations, compliant decision-making, effective internal controls, diligent performance of directors and senior management, and fair connected transactions - The company operated lawfully, with compliant decision-making procedures, and directors and senior management performed diligently, with no actions found to harm the company or shareholders' interests[305](index=305&type=chunk) - The company's financial reports are true and accurate, and the auditor issued a standard unqualified audit opinion[306](index=306&type=chunk) - The company's internal control evaluation report is comprehensive and objective, indicating a relatively complete internal control system[307](index=307&type=chunk) - The company's connected transactions were reasonably priced and compliant with procedures, with no insider trading[308](index=308&type=chunk) [Independent Auditor's Report](index=120&type=section&id=Independent%20Auditor's%20Report) This report presents the independent auditor's opinion on the company's financial statements and highlights key audit matters identified during the audit process [Audit Opinion](index=121&type=section&id=Audit%20Opinion) Ernst & Young issued an unqualified audit opinion on the 2019 consolidated financial statements, affirming their fair presentation in accordance with Hong Kong Financial Reporting Standards and Companies Ordinance - The auditor believes that the consolidated financial statements fairly and accurately reflect the financial position, operating results, and cash flows of the company and the Group in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants and the disclosure requirements of the Hong Kong Companies Ordinance[311](index=311&type=chunk) [Key Audit Matters](index=121&type=section&id=Key%20Audit%20Matters) Key audit matters included the impairment assessment of trade receivables, customer loans, and contract assets, and the amortization of service concession arrangements, both involving significant management judgment and estimation - **Impairment of Trade Receivables, Customer Loans, and Contract Assets**: Management is required to estimate expected credit losses (ECL) based on customer credit status, aging, forward-looking information, etc., involving significant judgment[314](index=314&type=chunk) - **Amortization of Service Concession Arrangements**: Amortization is determined using the units-of-production method, based on the proportion of estimated total vehicle traffic over the entire operating period, which involves significant judgment and estimation of factors like GDP growth and road network impact[315](index=315&type=chunk) [Financial Statements and Notes](index=126&type=section&id=Financial%20Statements%20and%20Notes) This section comprises the consolidated financial statements and their accompanying notes, providing a detailed account of the company's financial performance, position, and cash flows [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=126&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the company's financial performance for 2019, showing **RMB 7.807 billion** in revenue, **RMB 1.464 billion** in profit before tax, and **RMB 1.086 billion** in profit attributable to owners 2019 Consolidated Statement of Profit or Loss Key Data (RMB thousands) | Indicator | 2019 | 2018 | | :--- | :--- | :--- | | Revenue | **7,806,743** | **6,820,997** | | Gross Profit | **2,305,206** | **2,072,476** | | Profit Before Tax | **1,463,539** | **1,205,912** | | Profit for the Year | **1,133,289** | **901,826** | | Profit Attributable to Owners | **1,086,131** | **849,638** | [Consolidated Statement of Financial Position](index=128&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) This statement reflects the company's financial position as of December 31, 2019, with total assets of **RMB 37.861 billion**, total liabilities of **RMB 21.707 billion**, and net assets (total equity) of **RMB 16.154 billion** 2019 Consolidated Statement of Financial Position Key Data (RMB thousands) | Indicator | December 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Total Non-current Assets | **28,950,380** | **28,257,374** | | Total Current Assets | **8,910,194** | **7,777,684** | | **Total Assets** | **37,860,574** | **36,035,058** | | Total Current Liabilities | **7,395,309** | **5,277,181** | | Total Non-current Liabilities | **14,311,297** | **15,873,478** | | **Total Liabilities** | **21,706,606** | **21,150,659** | | **Net Assets** | **16,153,968** | **14,884,399** | [Consolidated Statement of Cash Flows](index=132&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) This statement details the company's cash flows for 2019, with **RMB 607 million** net cash from operating activities, **RMB 689 million** net cash from investing activities, and **RMB 2.002 billion** net cash used in financing activities 2019 Consolidated Statement of Cash Flows Summary (RMB thousands) | Item | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | **607,204** | **1,939,479** | | Net Cash Flow from/(Used in) Investing Activities | **689,180** | **(536,992)** | | Net Cash Flow from Financing Activities | **(2,002,100)** | **(464,320)** | | Net Increase/(Decrease) in Cash and Cash Equivalents | **(705,716)** | **938,167** | [Notes to the Financial Statements](index=134&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed explanations and supplementary information to the financial statements, covering accounting policies, estimates, segment information, revenue, connected transactions, and post-balance sheet events - The notes disclose the toll-free policy implemented at the beginning of 2020 due to the COVID-19 pandemic, indicating that this event may have a significant adverse impact on the Group's financial position in 2020[577](index=577&type=chunk)

Financial Performance - The company reported a revenue of RMB 1.2 billion for the first half of 2019, representing a year-on-year increase of 15%[19]. - Revenue for the six months ended June 30, 2019, was RMB 3,327,239 thousand, an increase of 4.66% compared to RMB 3,179,304 thousand in the same period of 2018[29]. - The total comprehensive income for the six months ended June 30, 2019, was RMB 877,973 thousand, an increase from RMB 669,062 thousand in 2018[31]. - The net profit attributable to the owners of the company for the six months ended June 30, 2019, was RMB 832,876 thousand, representing an increase of 27.19% from RMB 654,818 thousand in 2018[30]. - The company reported a pre-tax profit of RMB 1,072,413 thousand for the first half of 2019[66]. - The attributable profit to the owners of the company was approximately RMB 832,876 thousand, up 27.19% year-on-year[154]. - The net profit for the period was RMB 874,250 thousand, a 27.18% increase from RMB 687,395 thousand in the previous year, driven by increased toll revenue and construction contract profits[192]. Traffic and Operations - User traffic on the expressways increased by 10% compared to the same period last year, with a total of 15 million vehicles recorded[19]. - Future guidance indicates a projected revenue growth of 12% for the second half of 2019, driven by increased traffic and operational efficiency[19]. - The average daily traffic flow for Chengyu Expressway decreased by 18.61% compared to the same period last year, with toll revenue increasing by 16.10%[155]. - The company is experiencing increased truck traffic due to the construction of new industrial parks and the operation of large e-commerce enterprises in the vicinity[166]. Investments and Expansion - The company plans to expand its network by adding 200 kilometers of new expressways by the end of 2020[19]. - The company has allocated RMB 300 million for the research and development of smart traffic management technologies[19]. - The company is exploring potential mergers and acquisitions to enhance its market position and expand service offerings[19]. - The company has established a joint venture, Sichuan Multi-Modal Transport Investment Development Co., with a registered capital of RMB 1 billion, in which the company holds a 51% stake[173]. Financial Position - The company's total assets as of June 30, 2019, were approximately RMB 37,430,449 thousand, with net assets of about RMB 15,943,428 thousand[26]. - Current assets totaled RMB 9,098,263 thousand as of June 30, 2019, an increase of 16.8% from RMB 7,777,684 thousand on December 31, 2018[34]. - The company's net assets increased to RMB 15,943,428 thousand, representing a growth of 7.1% from RMB 14,884,399 thousand[36]. - The total liabilities as of June 30, 2019, were RMB 21,487,021 thousand, up from RMB 21,150,659 thousand at the end of 2018, representing an increase of about 1.59%[68]. Revenue Streams - Toll revenue from the Chengyu Expressway was RMB 479,745 thousand, up from RMB 413,010 thousand in 2018, reflecting a growth of about 16.1%[69]. - Revenue from gas station operations and other product sales was RMB 850,955 thousand, a 9.09% increase from RMB 780,056 thousand in the same period last year, driven by increased fuel sales and the consolidation of a multimodal transport company[188]. - The company’s total revenue from construction services was RMB 443,757,000 for the six months ended June 30, 2019[74]. Cost Management - A new toll collection system is being developed, expected to reduce operational costs by 5% annually once implemented[19]. - The company incurred financing costs of RMB 369,802,000 for the six months ended June 30, 2019, slightly down from RMB 389,344,000 in the same period of 2018[39]. - Financing costs decreased by 5.02% to RMB 369,802 thousand from RMB 389,344 thousand in the previous year, attributed to reduced interest-bearing debt and capitalized interest expenses[191]. Sustainability and Social Responsibility - The company has initiated a sustainability program aimed at reducing carbon emissions by 10% over the next three years[19]. - The company plans to invest approximately RMB 1.5 billion in vocational education projects in Qionglai City, Sichuan Province, with the project divided into four phases[180]. Shareholder Information - The board has approved a dividend payout of RMB 0.15 per share for the first half of 2019, reflecting a commitment to returning value to shareholders[19]. - The company declared no interim dividend for 2019, consistent with the previous year, while the final dividend for 2018 was RMB 0.100 per share, fully paid on July 8, 2019[118]. Regulatory and Accounting Standards - The financial information is prepared in accordance with Hong Kong Accounting Standard 34, which does not include all information required for annual financial statements[45]. - The adoption of Hong Kong Financial Reporting Standard 16 has no significant financial impact on the group, as it continues to classify leases similarly to previous standards[48].

Financial Performance - The company reported a revenue of RMB 1.2 billion for the fiscal year 2018, representing a year-on-year increase of 15%[12] - In 2018, the company's net profit attributable to shareholders was approximately RMB 849,638,000, a decrease of 5% year-on-year[26] - Basic earnings per share for 2018 were approximately RMB 0.278, compared to RMB 0.292 in 2017[26] - The company achieved a total revenue of RMB 40,678.13 billion in 2018, representing an 8% increase compared to the previous year[29] - The toll revenue for the company reached RMB 3.582 billion (including tax), marking an 11.04% growth year-over-year[32] - The group's net income for the year was approximately RMB 6,820,997 thousand, a year-on-year decrease of about 23.05%[46] - Profit attributable to the owners of the company was approximately RMB 849,638 thousand, down 5% year-on-year, with basic earnings per share at approximately RMB 0.278[48] - The net revenue for the year was RMB 6,820,997 thousand, a decrease of 23.05% compared to RMB 8,864,370 thousand in 2017[95] Revenue Sources - The overall operating revenue of the group decreased by approximately 23.05% year-on-year due to the divestment of low-margin construction assets and a reduction in chemical product sales and real estate handovers[45] - Vehicle toll revenue and profits continued to grow, benefiting from the natural increase in traffic flow due to regional economic development along the highways[45] - The urban operation segment generated approximately RMB 514,753 thousand in revenue, a decrease of about 52.66% compared to RMB 1,087,247 thousand in 2017[70] - The energy investment segment's revenue from gas stations and petrochemical products was approximately RMB 1,907,383 thousand, a decline of 27.11% from RMB 2,616,916 thousand in 2017[70] - The financial investment segment achieved revenue of approximately RMB 87,505 thousand, an increase of 31.62% from RMB 66,485 thousand in 2017[73] Future Outlook and Expansion Plans - The company has set a future outlook to expand its highway network by 20% over the next five years, focusing on key regions in Sichuan province[12] - The management has provided guidance for the next fiscal year, projecting a revenue growth of 12% based on current traffic trends and expansion plans[12] - The company is exploring potential mergers and acquisitions to strengthen its market position, targeting assets valued at approximately RMB 500 million[12] - The company plans to focus on five major sectors: toll roads, financial investment, urban operations, energy investment, and transportation + culture and education[32] - The company aims to enhance its core competitiveness and sustainable development through diversified business strategies[30] Investments and Projects - Investment in technology upgrades is planned, with an allocation of RMB 200 million aimed at improving infrastructure resilience[12] - The company successfully completed an investment of RMB 1.734 billion in the Chengle expansion project, achieving 100% of the annual target[32] - The total estimated investment for the Chengle Expressway expansion project is approximately RMB 23.133 billion, including an estimated RMB 1.9856 billion for the trial section[80] - The total investment for the Lushan County Dachuan River health tourism project is approximately RMB 6 billion, with a construction period tentatively set for 6 years[83] Corporate Governance - The company has established a governance structure consisting of the shareholders' meeting, board of directors, supervisory board, and management, continuously improving its governance practices[138] - The board of directors is responsible for the establishment and effective implementation of risk management and internal control systems, ensuring that all significant monitoring procedures are effective[142] - The company has implemented a comprehensive internal control system since 2010, aligning with regulatory guidelines and continuously optimizing its risk management framework[143] - The company has established specialized committees under the board, including the audit committee, strategic committee, nomination committee, and remuneration and assessment committee[138] - The company emphasizes the importance of corporate governance and has established policies to monitor compliance with the corporate governance code[197] Shareholder Engagement and Dividends - The board proposed a final cash dividend of RMB 0.10 per share, totaling approximately RMB 305,806,000, which accounts for 49.87% of the distributable profit[26] - The company has a profit distribution policy that emphasizes stable returns to shareholders, with cash dividends prioritized over stock dividends[152] - The company must complete profit distribution within six months after the end of each accounting year[160] - Shareholders holding 10% or more of shares can request an extraordinary general meeting, and the board must respond within 10 days[161] - The company held three shareholder meetings in 2018, with all proposals passed during the annual meeting on June 5, 2018[164]