Financial Performance - For the nine months ended September 30, 2023, the company reported total revenue of RMB 12,350,187 thousand, an increase of 9.34% compared to RMB 11,296,067 thousand for the same period in 2022[4] - The gross profit for the same period was RMB 5,629,461 thousand, representing a 19.88% increase from RMB 4,694,836 thousand in 2022[4] - The net profit for the period was RMB 5,159,133 thousand, up 37.53% from RMB 3,750,440 thousand in the previous year[4] - The company reported a basic earnings per share of RMB 93.91 for the current period, compared to RMB 67.71 for the same period last year, indicating a significant increase of 38.67%[5] - The financing costs for the period were RMB 1,320,053 thousand, slightly reduced from RMB 1,368,690 thousand in the previous year[4] - The company recorded other comprehensive income of RMB 82,485 thousand for the current period, compared to RMB 57,488 thousand in the previous year, showing an increase of 43.39%[5] Assets and Equity - The company's total assets as of September 30, 2023, were RMB 199,639,328 thousand, compared to RMB 186,405,524 thousand at the end of 2022, reflecting a growth of 7.09%[6] - The total equity attributable to the owners of the company increased to RMB 33,236,987 thousand from RMB 30,918,290 thousand at the end of 2022, marking an increase of 7.56%[6] Cash Flow - The cash and cash equivalents at the end of the period were RMB 20,911,420 thousand, a decrease from RMB 23,917,236 thousand at the beginning of the period[7] - The company’s net cash inflow from operating activities was RMB 8,718,485 thousand, a substantial increase from RMB 1,509,583 thousand in the same period of 2022[7]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不會就本公告全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （股份代號：0576） （於中華人民共和國註冊成立的股份有限公司） 內幕消息 二零二三年三季度最新經營狀況 本公告由浙江滬杭甬高速公路股份有限公司（「本公司」，連同其附屬公司統稱「本 集團」）根據香港聯合交易所有限公司證券上市規則（「上市規則」）第13.09(2)(a)條 及香港法例第571章《證券及期貨條例》第XIVA部項下之內幕消息條文作出。 基於對本集團截至二零二三年九月三十日止九個月（「本期間」）未經審計合併經營 業績及其他現有資料的初步評估，本公司董事（「董事」）會（「董事會」）謹此知會本 公司股東及潛在投資者，預期本集團本期間將錄得除稅前溢利約為人民幣58億元 至人民幣63億元。 上述數據僅依據董事對未經審計合併經營業績及其他現有資料的初步評估所作出， 並未經本公司審計師或審核委員會審核或審閱，故可能進一步作出調整或修訂。 具體財務數據應以本公司截至二零二三年九月三十日止九個月的二零二三年三季 ...

Financial Performance - The group's revenue for the first half of 2023 increased by 13.8% year-on-year, reaching RMB 8.0066 billion[6]. - Net profit attributable to the company's owners rose by 67.9% year-on-year to RMB 2.6631 billion[6]. - Basic earnings per share increased by 67.9% to RMB 0.6132, while diluted earnings per share grew by 60.6% to RMB 0.5867[6]. - The company's total revenue for the first half of 2023 reached RMB 8,000,657,000, representing a year-on-year increase of 13.8% compared to RMB 7,028,121,000 in 2022[11]. - Gross profit for the same period was RMB 3,465,180,000, up 23.2% from RMB 2,811,594,000 year-over-year[68]. - The net profit for the period was RMB 3,378,364,000, which is a 64.8% increase compared to RMB 2,047,230,000 in the previous year[68]. - The company reported a net profit attributable to shareholders for the six months ended June 30, 2023, was RMB 2,663,096,000, an increase of 68.2% compared to RMB 1,586,274,000 in the same period of 2022[88]. - Earnings per share for 2023 was RMB 64, down from RMB 123.9 in 2022, reflecting a decrease of approximately 48%[178]. - The company reported a return on equity of 10.2% for 2023, compared to 18.2% in 2022, indicating a decline in profitability[175]. Revenue Sources - Revenue from the eight main highways operated by the group increased by 17.5% year-on-year, contributing RMB 4.75546 billion, accounting for 59.4% of total revenue[9]. - Securities business revenue grew by 8.5% year-on-year to RMB 3.16136 billion, representing 39.5% of total revenue[9]. - The highway business generated revenue of RMB 4,755,464,000, up 17.5% from RMB 4,047,666,000 in the same period last year[11]. - The hotel and catering business experienced a revenue increase of 62.6%, with total revenue reaching RMB 60,001,000 compared to RMB 36,908,000 in 2022[11]. - The revenue from the securities business, including commission and fees, was RMB 1,976,906 thousand for the six months ended June 30, 2023, compared to RMB 1,738,076 thousand in the same period of 2022, reflecting a growth of 13.8%[82]. Operational Highlights - The average daily traffic volume across the company's highways increased significantly, with the Hangzhou-Ningbo Expressway seeing a 46.58% year-on-year increase in traffic volume[18]. - The average daily traffic volume for the Yongjin Expressway Shaoxing section was 29,596 vehicles, reflecting a 23.15% year-on-year increase[23]. - The company is actively promoting government-funded projects and exploring self-initiated discount activities to enhance the attractiveness of "highway + tourism" offerings[16]. - The company has implemented a control model for road construction "window periods" to improve network traffic efficiency and service levels[16]. Strategic Focus - The group is focusing on high-quality development and enhancing core competitiveness through technological innovation and operational reforms[2]. - The company is actively promoting various businesses, including investment banking and securities trading, to achieve stable growth[2]. - The group is advancing capital operations and optimizing existing assets to enhance long-term investment value[2]. - The company plans to enhance its market operations by improving construction efficiency and expanding its "Highway+" product offerings to increase revenue generation capabilities[51]. - The company aims to complete the smart transformation of the entire Shanghai-Hangzhou-Ningbo Expressway, establishing a model for smart highway construction[51]. - The company will explore investment and acquisition opportunities in highway projects while advancing highway expansion projects to ensure sustainable development[53]. Financial Position - As of June 30, 2023, the group's current assets totaled RMB 155.72162 billion, compared to RMB 146.12878 billion as of December 31, 2022[29]. - The group's current ratio was 1.50 as of June 30, 2023, up from 1.40 as of December 31, 2022[29]. - The total liabilities of the group were RMB 143.90528 billion as of June 30, 2023, compared to RMB 136.09586 billion as of December 31, 2022[33]. - The interest expense for the period was RMB 866.8 million, with an earnings before interest and taxes (EBIT) of RMB 4.87107 billion, resulting in an interest coverage ratio of 5.6[37]. - The debt-to-asset ratio was 73.6% as of June 30, 2023, slightly up from 73.1% as of December 31, 2022[38]. - As of June 30, 2023, the total equity of the group was RMB 51.739 billion, with fixed-rate debt at RMB 110.187 billion and floating-rate debt at RMB 14.653 billion, resulting in a leverage ratio of 179.9%[40]. - The company's total liabilities decreased from RMB 19,291,372 thousand as of January 1, 2023, to RMB 19,883,303 thousand as of June 30, 2023, indicating a slight increase of 3.1%[73]. Investments and Acquisitions - The company plans to invest in the expansion of the Zha Jia Su Expressway and the Yongjin Expressway, with funding sourced from internal funds, loans, and rights issue proceeds[63]. - The company has not engaged in any purchase, sale, or redemption of its listed securities during the reporting period[55]. - The company anticipates stable growth in highway traffic and toll revenue in the second half of 2023, supported by government policies aimed at boosting domestic demand and economic recovery[51]. Shareholder Information - As of June 30, 2023, the major shareholder, Transportation Group, holds 100% of the company's issued share capital[57]. - Major shareholders include招商公路 with 18.00% and JP Morgan Chase & Co. with 8.67% of the issued shares[59]. Employee and Operational Metrics - As of June 30, 2023, the company employed 9,289 staff, an increase from 9,143 employees at the end of 2022[62]. - The company provided management and administrative services for eight toll roads, generating service fees of RMB 7,018,000 in the first half of 2023, compared to RMB 6,655,000 in the same period of 2022[127].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不會就本公告全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （於中華人民共和國註冊成立的股份有限公司） （股份代號：0576） 2023年中期業績公告 浙江滬杭甬高速公路股份有限公司（「本公司」）董事（「董事」）公佈本公司及其附屬 公司（統稱「本集團」）根據下文簡明合併財務報表附註1所述之呈報基準編製的截 至2023年6月30日止6個月（「本期間」）未經審計合併經營業績。 本期間內，本集團收益與2022年同期相比增長13.8%，為人民幣80億零66萬元；歸 屬於本公司擁有人溢利為人民幣26億6,310萬元，同比增長67.9%；基本每股盈利 為人民幣61.32分，同比增長67.9%，攤薄每股盈利為人民幣58.67分，同比增長 60.6%。 本公司董事會（「董事會」）建議不派發2023年中期股息。 本集團截至2023年6月30日止6個月之簡明綜合財務報表未經本公司審計師審計或 審閱，但已經本公司審核委員會審閱。以下為本期間未經審計的簡明合併損益及 其他綜合收益表及於2 ...

Revenue and Profit - Revenue for Q1 2023 reached RMB 3,799,196 thousand, an increase of 4.5% compared to RMB 3,635,830 thousand in Q1 2022[2] - Gross profit for the period was RMB 1,706,068 thousand, down 4.0% from RMB 1,778,057 thousand in the same period last year[2] - Net profit attributable to the company’s owners was RMB 1,546,103 thousand, representing a 42.5% increase from RMB 1,084,860 thousand in Q1 2022[3] - Basic earnings per share increased to RMB 35.60, up from RMB 24.98 in the previous year[3] - Non-controlling interests in profit increased to RMB 370,813 thousand from RMB 211,783 thousand in Q1 2022[3] Assets and Liabilities - Total assets less current liabilities amounted to RMB 92,812,813 thousand, an increase from RMB 85,106,770 thousand as of December 31, 2022[4] - The company’s total liabilities increased to RMB 40,482,962 thousand from RMB 34,897,108 thousand as of December 31, 2022[4] Cash Flow and Investments - Cash and cash equivalents at the end of the period were RMB 27,086,142 thousand, compared to RMB 16,473,939 thousand at the end of Q1 2022[5] - Operating cash flow for the period was negative at RMB (1,051,376) thousand, compared to positive RMB 1,365,313 thousand in Q1 2022[5] - The company reported a significant increase in investment income of RMB 602,456 thousand, compared to a loss of RMB (18,899) thousand in the same period last year[2]

Financial Performance - The company reported a significant increase in revenue, achieving a total of 471.73 million in 2022, reflecting a year-on-year growth of 130%[1] - Total revenue for 2022 was RMB 14,898.73 million, a decrease of 8.4% compared to the previous year[25] - The net profit attributable to the company’s owners increased by 12.9% to RMB 5,378.86 million[25] - Basic earnings per share for 2022 was RMB 123.85, compared to RMB 109.65 in 2021[24] - Return on equity for 2022 was 17.4%, slightly down from 17.5% in 2021[21] - The group achieved a net profit attributable to shareholders of RMB 5.38 billion, an increase of 12.9% year-on-year, with basic earnings per share rising to RMB 1.2385[48] - The company's total revenue for the year ended December 31, 2022, was RMB 14,898,730,000, a decrease of 8.4% compared to RMB 16,262,601,000 in 2021[135] - Gross profit for the same period was RMB 6,040,804,000, reflecting a gross margin of approximately 40.5%[135] - The company's net assets increased to RMB 50,209,662,000, compared to RMB 44,423,025,000 in 2021[136] Strategic Initiatives - Future outlook indicates a focus on expanding market presence, with plans to invest in new technologies and infrastructure development[3] - The company aims to enhance user data analytics capabilities to better understand traffic patterns and optimize road usage[4] - New product development initiatives are underway, targeting innovative solutions for traffic management and road safety[5] - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its service offerings[6] - The company aims to enhance its core competitiveness and expand its securities and financial services business to increase profitability contributions[8] - The company is actively seeking opportunities for investment and acquisition of quality projects to transform into an international investment holding enterprise focused on transportation infrastructure[8] - The company plans to focus on market-oriented operations and innovation-driven development to strengthen its core business[28] - The company plans to enhance its digital marketing strategy, allocating an additional 10% of the budget to online advertising[122] Operational Efficiency - The management highlighted the successful completion of major road projects, contributing to improved operational efficiency and user satisfaction[2] - Ongoing investments in maintenance and upgrades of existing road infrastructure are expected to yield long-term benefits for operational performance[10] - The company has restructured its operations to integrate various transportation infrastructure investments and management responsibilities[8] - The average daily traffic volume across the group's highways decreased, with the Hangzhou-Ningbo Highway experiencing an 8.94% decline in traffic and a 7.4% drop in toll revenue[39] - The group is focusing on digital transformation, having completed the smart upgrade of the Hangzhou-Ningbo Highway[34] Corporate Governance - The company plans to enhance its corporate governance practices to ensure compliance and transparency in operations[9] - The board of directors is committed to maintaining strong corporate governance practices to ensure transparency and accountability[123] - The company has adopted strict corporate governance principles in compliance with the Listing Rules, ensuring transparency and accountability in its operations[76] - The board of directors confirmed the independence of all three independent non-executive directors, ensuring compliance with Listing Rule 3.13[82] - The company has established a securities trading code applicable to its directors and senior management, ensuring compliance with the standards set forth in the Listing Rules[77] Market Challenges - The impact of COVID-19 and strict control measures significantly affected highway traffic, particularly in Shanghai and surrounding areas, leading to a substantial decline in toll revenue[35] - The company acknowledges the ongoing geopolitical uncertainties, including the Russia-Ukraine conflict and the economic recovery challenges in China, which may impact highway traffic and toll revenue[69] - The group’s highways are expected to face negative impacts from traffic diversion due to surrounding road networks and traffic control measures, particularly from the Hangzhou-Shaoxing Expressway and Hangzhou-Taipei High-Speed Rail, which began operations in early 2022[70] - The securities business is highly susceptible to market volatility, which may lead to significant fluctuations and reduced trading volumes, affecting the group’s profitability[72] Investment and Financing - The company successfully issued RMB 1.4 billion medium-term notes at a coupon rate of 2.97% on May 5, 2022, followed by another issuance of RMB 1.6 billion at a rate of 2.80% on July 11, 2022[11] - The company successfully issued RMB 3 billion in medium-term notes to enhance its financing channels[26] - The company issued a RMB 6.317 billion asset-backed securities plan on November 25, 2022, marking the largest infrastructure private REITs project to date[13] - The company approved an increase in registered capital of approximately RMB 13.17 billion on October 11, 2022, with a commitment of RMB 9.7 billion from the Transportation Group[13] Shareholder Information - The company declared a dividend of RMB 0.375 per share during the 2021 annual general meeting held on June 30, 2022[12] - The board proposed a dividend of RMB 0.375 per share, aiming to provide long-term stable value returns to shareholders[31] - The company’s dividend payout ratio was approximately 30.3% of the distributable profits for the year[102] - As of December 31, 2022, the total issued shares of the company were 4,343,114,500, with 2,909,260,000 shares (67%) held by the major shareholder, Transportation Group[101] Employee and Management Structure - As of December 31, 2022, the company had a total of 9,143 employees, with 4,175 in highway-related positions and 4,968 in securities-related positions[67] - The management team is responsible for implementing the board's resolutions and organizing the annual operational plans and investment proposals[106] - The company’s management structure and responsibilities are clearly defined in its articles of association[106] Related Party Transactions - The company has entered into agreements with related parties, including Zheshang Group and Zhejiang Gaoxin, which are classified as connected transactions under the listing rules[169][174] - The company’s major shareholder, Transportation Group, is involved in the capital increase agreement, which requires compliance with disclosure and independent shareholder approval regulations due to the percentage rates exceeding 25% but less than 75%[175] - The total service fee payable under the project construction contract is RMB 53,518,608, with RMB 32,077,869 to be paid to Zhejiang Gaoxin[169]

[Overall Report Summary & Key Highlights](index=1&type=section&id=Overall%20Report%20Summary%20%26%20Key%20Highlights) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) The Group's 2022 revenue decreased by 8.4% to RMB 14.899 billion, but profit attributable to owners increased by 12.9% to RMB 5.379 billion, with basic EPS at RMB 123.85 cents and diluted EPS at RMB 117.62 cents Key Financial Indicators for 2022 | Indicator | 2022 (RMB 10 thousand) | 2021 (RMB 10 thousand) | YoY Change (%) | | :--------------- | :--------------------- | :--------------------- | :------------- | | Revenue | 1,489,873 | 1,626,260 | -8.4 | | Profit attributable to owners of the Company | 537,887 | 476,243 | 12.9 | | Basic Earnings Per Share (cents) | 123.85 | 109.65 | 12.9 | | Diluted Earnings Per Share (cents) | 117.62 | 102.50 | 14.8 | - The Board recommended a dividend of **RMB 37.50 cents per share**, consistent with 2021, pending approval at the Annual General Meeting[2](index=2&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Income Statement](index=2&type=section&id=Consolidated%20Income%20Statement) The Group's 2022 consolidated income statement shows profit for the year increased to RMB 6.503 billion from RMB 6.290 billion in 2021, with total comprehensive income also rising to RMB 6.518 billion Summary of Consolidated Income and Other Comprehensive Income Statement | Indicator | 2022 (RMB thousand) | 2021 (RMB thousand) | | :------------------- | :------------------ | :------------------ | | Revenue | 14,898,730 | 16,262,601 | | Operating costs | (8,857,926) | (9,521,482) | | Gross profit | 6,040,804 | 6,741,119 | | Profit before tax | 7,542,261 | 8,164,125 | | Income tax expense | (1,039,051) | (1,873,961) | | Profit for the year | 6,503,210 | 6,290,164 | | Total comprehensive income for the year | 6,518,301 | 6,328,808 | | Profit attributable to owners of the Company | 5,378,866 | 4,762,431 | | Basic Earnings Per Share (RMB cents) | 123.85 | 109.65 | | Diluted Earnings Per Share (RMB cents) | 117.62 | 102.50 | [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) As of December 31, 2022, total assets increased to RMB 186.406 billion from RMB 176.297 billion, with a decrease in highway operating rights but a significant increase in bank balances and settlement funds held for customers, while total liabilities rose to RMB 136.196 billion Summary of Consolidated Balance Sheet | Indicator | Dec 31, 2022 (RMB thousand) | Dec 31, 2021 (RMB thousand) | | :------------------- | :-------------------------- | :-------------------------- | | Total non-current assets | 40,276,748 | 45,453,364 | | Total current assets | 146,128,776 | 130,843,318 | | Total assets | 186,405,524 | 176,296,682 | | Total current liabilities | 101,298,754 | 97,700,214 | | Total non-current liabilities | 34,897,108 | 34,173,443 | | Total liabilities | 136,195,862 | 131,873,657 | | Equity attributable to owners of the Company | 30,918,290 | 27,150,342 | | Non-controlling interests | 19,291,372 | 17,272,683 | | Total equity | 50,209,662 | 44,423,025 | - Highway operating rights decreased from **RMB 26.053 billion** in 2021 to **RMB 19.797 billion** in 2022, while bank balances and settlement funds held for customers increased from **RMB 38.393 billion** to **RMB 48.745 billion**[6](index=6&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) [Basis of Presentation and Accounting Policies](index=6&type=section&id=Basis%20of%20Presentation%20and%20Accounting%20Policies) The consolidated financial statements are prepared under Hong Kong Financial Reporting Standards, primarily using the historical cost convention, with no significant impact from newly adopted revised standards - The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and include disclosures required by the Listing Rules of The Stock Exchange of Hong Kong Limited and the Hong Kong Companies Ordinance[8](index=8&type=chunk) - The financial statements are prepared on the historical cost basis, except for certain financial instruments measured at fair value[9](index=9&type=chunk) - The revised Hong Kong Financial Reporting Standards adopted this year, including HKFRS 3, HKFRS 16, HKAS 16, HKAS 37, and annual improvements, have no significant impact on the Group's financial position, performance, or disclosures[10](index=10&type=chunk)[11](index=11&type=chunk) [Operating Segments](index=7&type=section&id=Operating%20Segments) The Group's operating segments, including highway, securities, and other businesses, are used by key decision-makers for resource allocation and performance assessment - The Group's operating segments include: - Highway Business: Operation and management of high-grade highways, collecting tolls - Securities Business: Securities and futures brokerage, margin financing and securities lending, underwriting and sponsorship, asset management, advisory services, and proprietary securities trading - Other Businesses: Hotel operations, construction of high-grade highways, investments in other financial institutions, and other services[12](index=12&type=chunk) [Segment Revenue and Results](index=7&type=section&id=Segment%20Revenue%20and%20Results) In 2022, highway business remained the largest revenue source, but both securities and other businesses experienced declines in revenue and profit Segment Revenue and Profit (2022 vs 2021) | Segment | 2022 Revenue (RMB thousand) | 2022 Profit (RMB thousand) | 2021 Revenue (RMB thousand) | 2021 Profit (RMB thousand) | | :--------------- | :---------------------- | :---------------------- | :---------------------- | :---------------------- | | Highway Business | 8,660,333 | 4,041,889 | 9,607,199 | 3,194,046 | | Securities Business | 6,080,383 | 1,709,964 | 6,403,024 | 2,372,970 | | Other Businesses | 158,014 | 751,357 | 252,378 | 723,148 | | Total | 14,898,730 | 6,503,210 | 16,262,601 | 6,290,164 | [Segment Assets and Liabilities](index=8&type=section&id=Segment%20Assets%20and%20Liabilities) As of December 31, 2022, the securities business segment held the highest total assets and liabilities, while highway business assets and liabilities both decreased Segment Assets and Liabilities (Dec 31, 2022 vs Dec 31, 2021) | Segment | 2022 Assets (RMB thousand) | 2021 Assets (RMB thousand) | 2022 Liabilities (RMB thousand) | 2021 Liabilities (RMB thousand) | | :--------------- | :---------------------- | :---------------------- | :---------------------- | :---------------------- | | Highway Business | 39,363,170 | 41,373,465 | (25,795,642) | (29,592,173) | | Securities Business | 137,584,981 | 125,941,428 | (109,660,591) | (101,422,949) | | Other Businesses | 9,370,506 | 8,894,922 | (739,629) | (858,535) | | Consolidated Assets (Liabilities) | 186,405,524 | 176,296,682 | (136,195,862) | (131,873,657) | [Other Segment Information](index=8&type=section&id=Other%20Segment%20Information) Segments show differences in income tax expense, interest income/expense, impairment losses, and non-current asset additions, with highway business having the largest depreciation and amortization Other Segment Information (2022 vs 2021) | Indicator | Highway Business 2022 (RMB thousand) | Securities Business 2022 (RMB thousand) | Other Businesses 2022 (RMB thousand) | Total 2022 (RMB thousand) | | :------------------- | :----------------------------- | :------------------------- | :------------------------- | :--------------------- | | Income tax expense | 638,475 | 395,486 | 5,090 | 1,039,051 | | Interest expense | 912,896 | 828,543 | 28,569 | 1,770,008 | | Additions to non-current assets | 1,444,064 | 285,226 | 30,771 | 1,760,061 | | Depreciation and amortization | 3,053,188 | 295,510 | 36,292 | 3,384,990 | | Gain on disposal of subsidiaries | 1,881,262 | – | – | 1,881,262 | | | Highway Business 2021 (RMB thousand) | Securities Business 2021 (RMB thousand) | Other Businesses 2021 (RMB thousand) | Total 2021 (RMB thousand) | | Income tax expense | 1,152,881 | 718,789 | 2,291 | 1,873,961 | | Interest expense | 981,865 | 928,099 | 32,569 | 1,942,533 | | Additions to non-current assets | 6,409,180 | 503,291 | 44,056 | 6,956,527 | | Depreciation and amortization | 2,918,751 | 263,107 | 36,607 | 3,218,465 | [Major Business Revenue Analysis](index=9&type=section&id=Major%20Business%20Revenue%20Analysis) The Group's 2022 total revenue was RMB 14.899 billion, with highway business as the largest contributor; securities commission and fee income decreased, but interest income increased Major Business Revenue (2022 vs 2021) | Business Category | 2022 (RMB thousand) | 2021 (RMB thousand) | | :----------------- | :------------------ | :------------------ | | Highway Business Revenue | 8,660,333 | 9,607,199 | | Securities Business Commission and Fee Income | 3,689,947 | 4,155,663 | | Securities Business Interest Income | 2,390,436 | 2,247,361 | | Hotel and Catering Revenue | 88,143 | 113,526 | | PPP Business Revenue | 69,871 | 138,852 | | Total | 14,898,730 | 16,262,601 | [Other Income and Gains/Losses](index=10&type=section&id=Other%20Income%20and%20Gains%2FLosses) Total other income and gains/losses for 2022 significantly increased to RMB 2.094 billion from RMB 733 million in 2021, primarily due to gains from disposal of subsidiaries Other Income and Gains/Losses (2022 vs 2021) | Item | 2022 (RMB thousand) | 2021 (RMB thousand) | | :------------------------- | :------------------ | :------------------ | | Interest income from financial institutions | 142,358 | 119,027 | | Rental income | 70,875 | 89,441 | | Gain from fair value changes of derivative component of convertible bonds | 31,951 | 27,453 | | Net exchange (loss) gain | (229,412) | 231,659 | | Net (loss) gain from spot transactions | (37,237) | 43,716 | | Government grants | 72,031 | 51,155 | | Gain on disposal of subsidiaries | 1,881,262 | – | | Total | 2,093,933 | 733,071 | - Gain from disposal of subsidiaries in 2022 was **RMB 1.881 billion**, primarily from Zhejiang Shenjiahuhang Expressway Co Ltd ceasing to be a subsidiary after the issuance of the CICC-Zhejiang Expressway-Shenjiahuhang Expressway Asset-Backed Special Plan (Private REITs)[21](index=21&type=chunk) [Income Tax Expense](index=11&type=section&id=Income%20Tax%20Expense) The Group's 2022 income tax expense significantly decreased to RMB 1.039 billion from RMB 1.874 billion in 2021, mainly due to lower profit before tax and tax effects of non-taxable income Income Tax Expense (2022 vs 2021) | Item | 2022 (RMB thousand) | 2021 (RMB thousand) | | :--------- | :------------------ | :------------------ | | Current tax | 1,081,139 | 1,810,332 | | Deferred tax | (42,088) | 63,629 | | Total | 1,039,051 | 1,873,961 | Tax Expense and Profit Before Tax Reconciliation | Adjustment Item | 2022 (RMB thousand) | 2021 (RMB thousand) | | :----------------------- | :------------------ | :------------------ | | Profit before tax | 7,542,261 | 8,164,125 | | Tax at China Enterprise Income Tax rate of 25% | 1,885,565 | 2,041,031 | | Tax effect of share of profits of associates | (188,022) | (241,519) | | Tax effect of non-taxable income | (620,275) | (63,415) | | Income tax expense for the year | 1,039,051 | 1,873,961 | [Dividends and Earnings Per Share](index=12&type=section&id=Dividends%20and%20Earnings%20Per%20Share) The Group distributed RMB 1.629 billion in dividends for 2022 and proposed a dividend of RMB 37.50 cents per share, with both basic and diluted earnings per share increasing Dividend Distribution (2022 vs 2021) | Item | 2022 (RMB thousand) | 2021 (RMB thousand) | | :------------- | :------------------ | :------------------ | | Dividends paid during the year | 1,628,668 | 1,541,806 | - The Board recommended a dividend of **RMB 37.5 cents per share** for the year ended December 31, 2022, totaling **RMB 1.629 billion**, consistent with 2021[24](index=24&type=chunk) Earnings Per Share Calculation (2022 vs 2021) | Indicator | 2022 (RMB thousand/thousand shares) | 2021 (RMB thousand/thousand shares) | | :----------------------- | :-------------------------- | :-------------------------- | | Profit for the year attributable to owners of the Company | 5,378,866 | 4,762,431 | | Profit for basic EPS calculation | 5,378,866 | 4,762,431 | | Profit for diluted EPS calculation | 5,427,261 | 4,702,924 | | Number of ordinary shares for basic EPS calculation | 4,343,115 | 4,343,115 | | Weighted average number of ordinary shares for diluted EPS calculation | 4,614,399 | 4,588,176 | [Accounts Receivable](index=13&type=section&id=Accounts%20Receivable) The Group's total accounts receivable increased to RMB 554 million at the end of 2022, primarily from highway tolls, with the largest portion due within three months Accounts Receivable Composition (Dec 31, 2022 vs Dec 31, 2021) | Item | 2022 (RMB thousand) | 2021 (RMB thousand) | | :--------------- | :------------------ | :------------------ | | Contracts with customers | 560,701 | 473,691 | | Less: Provision for credit losses | (6,333) | (5,799) | | Total | 554,368 | 467,892 | - Accounts receivable for the highway business primarily consist of tolls due from Zhejiang and Anhui Provincial Highway Toll Settlement Centers, with no credit period[26](index=26&type=chunk) Accounts Receivable Ageing Analysis (Dec 31, 2022 vs Dec 31, 2021) | Ageing | 2022 (RMB thousand) | 2021 (RMB thousand) | | :----------- | :------------------ | :------------------ | | Within 3 months | 349,646 | 335,308 | | 3 months to 1 year | 181,217 | 121,753 | | 1 to 2 years | 21,025 | 7,554 | | Over 2 years | 2,480 | 3,277 | | Total | 554,368 | 467,892 | [Accounts Payable](index=14&type=section&id=Accounts%20Payable) The Group's total accounts payable decreased to RMB 1.160 billion at the end of 2022 from RMB 1.388 billion in 2021, mainly for highway maintenance and construction, with the largest portion due within three months - Accounts payable primarily relate to expenses for highway maintenance and high-grade highway construction[29](index=29&type=chunk) Accounts Payable Ageing Analysis (Dec 31, 2022 vs Dec 31, 2021) | Ageing | 2022 (RMB thousand) | 2021 (RMB thousand) | | :----------- | :------------------ | :------------------ | | Within 3 months | 655,734 | 875,632 | | 3 months to 1 year | 139,613 | 114,352 | | 1 to 2 years | 102,852 | 87,079 | | 2 to 3 years | 39,269 | 62,461 | | Over 3 years | 222,365 | 248,009 | | Total | 1,159,833 | 1,387,533 | [Convertible Bonds](index=15&type=section&id=Convertible%20Bonds) The Group issued two types of convertible bonds, a 2021 Euro zero-coupon bond and a 2022 RMB bond by its subsidiary Zheshang Securities, both with conversion and redemption rights impacting financial statements [Convertible Bonds 2021](index=15&type=section&id=Convertible%20Bonds%202021) In 2021, the Company issued a EUR 230 million zero-coupon convertible bond due in 2026, comprising debt and derivative components, with conversion and redemption rights for both the Company and holders - A zero-coupon convertible bond with a principal amount of **EUR 230 million** was issued on January 20, 2021, due in 2026, and listed on the Stock Exchange[30](index=30&type=chunk) - Conversion right: Holders can convert into ordinary shares between March 2, 2021, and January 10, 2026, at an initial conversion price of **HKD 8.83 per H share** (most recently **HKD 7.80**)[31](index=31&type=chunk) - Redemption right: The Company may redeem under specific conditions (e.g., H-share closing price reaching **130% of conversion price** or unredeemed principal falling below **10%**), and holders can exercise a put option on January 20, 2024[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) Convertible Bonds 2021 Debt and Derivative Component Changes (Dec 31, 2022) | Item | Debt Component (RMB thousand) | Derivative Component in P&L (RMB thousand) | Total (RMB thousand) | | :----------------------- | :-------------------- | :-------------------------- | :---------------- | | As at December 31, 2021 | 1,374,445 | 340,217 | 1,714,662 | | Exchange realignment | 37,073 | – | 37,073 | | Interest expense | 68,617 | – | 68,617 | | Gain from fair value changes | – | (31,951) | (31,951) | | As at December 31, 2022 | 1,480,135 | 308,266 | 1,788,401 | [Convertible Bonds 2022](index=17&type=section&id=Convertible%20Bonds%202022) In 2022, subsidiary Zheshang Securities issued an RMB 7 billion convertible bond due in 2028, comprising debt and equity components, with conversion and conditional redemption rights - On June 14, 2022, subsidiary Zheshang Securities issued a convertible bond with a principal amount of **RMB 7 billion**, due in 2028, and listed on the Shanghai Stock Exchange[37](index=37&type=chunk) - Conversion right: Holders can convert into ordinary shares between December 20, 2022, and June 13, 2028, at an initial conversion price of **RMB 10.49 per share** (RMB 10.32 as of December 31, 2022)[38](index=38&type=chunk) - Redemption right: Redeemable at **106% of face value** at maturity; conditional redemption includes stock closing price not less than **130% of conversion price** or outstanding unconverted amount less than **RMB 30 million**[39](index=39&type=chunk)[40](index=40&type=chunk) Convertible Bonds 2022 Debt and Equity Component Changes (Dec 31, 2022) | Item | Debt Component (RMB thousand) | Equity Component (RMB thousand) | Total (RMB thousand) | | :----------------------- | :-------------------- | :-------------------- | :---------------- | | Issued on June 14, 2022 | 2,856,082 | 310,732 | 3,166,814 | | Transaction costs | (12,782) | (1,387) | (14,169) | | Interest expense | 71,825 | – | 71,825 | | Increase | 1,008,644 | 166,912 | 1,175,556 | | Conversion | (97) | (10) | (107) | | As at December 31, 2022 | 3,923,672 | 476,247 | 4,399,919 | [Business Review](index=19&type=section&id=Business%20Review) [Overall Business Performance](index=19&type=section&id=Overall%20Business%20Performance) In 2022, global economic slowdown and recurring domestic epidemics impacted the Group's business, leading to an 8.4% year-on-year decrease in total revenue, with both highway toll and securities business revenues declining - In 2022, global economic slowdown and recurring domestic epidemics led to a significant decrease in the Group's highway toll revenue and securities business revenue[43](index=43&type=chunk) Total Revenue by Business Segment (2022) | Business Category | 2022 Revenue (RMB thousand) | % of Total Revenue (%) | | :--------------- | :---------------------- | :--------------- | | Highway Business | 8,660,333 | 58.1 | | Securities Business | 6,080,383 | 40.8 | | Other Businesses | 158,014 | 1.1 | | Total Revenue | 14,898,730 | 100 | [Highway Business](index=20&type=section&id=Highway%20Business) In 2022, highway business saw significant declines in traffic and toll revenue due to recurring epidemics, network changes, and policy adjustments; the Group responded with smart upgrades, differentiated pricing, and private REITs issuance - Highway business was negatively impacted by recurring epidemics, strict control measures, network changes (e.g., opening of Hangzhou-Taizhou High-speed Railway), and toll policy adjustments (e.g., **10% toll reduction for trucks**), leading to significant declines in traffic volume and toll revenue[45](index=45&type=chunk)[46](index=46&type=chunk) - The Group actively responded by completing smart upgrades for HSR-Hangzhou-Ningbo Expressway, promoting differentiated pricing and "highway + tourism" marketing, and successfully issuing **RMB 6.317 billion** in Shenjiahuhang Private REITs to revitalize existing assets[46](index=46&type=chunk) Toll Revenue and Traffic Volume Changes by Highway Section (2022) | Section | Average Daily Full-Journey Traffic Volume (vehicles) | YoY Change (%) | Toll Revenue (RMB million) | YoY Change (%) | | :--------------- | :----------------------------------- | :------------- | :------------------------- | :------------- | | HSR-Hangzhou-Ningbo Expressway | 67,314 | -8.94 | 3,971.71 | -7.4 | | Shangsan Expressway | 27,383 | -19.14 | 984.74 | -19.6 | | Yongjin Expressway Jinhua Section | 26,698 | -13.58 | 466.33 | -14.0 | | Shenjiahuhang Expressway | 29,958 | -13.23 | 619.17 | -20.4 | | Zhoushan Cross-sea Bridge | 20,349 | -8.26 | 827.69 | -11.4 | | Zha-Jia-Su Expressway | 31,470 | -16.99 | 389.62 | 18.6 | [Securities Business](index=23&type=section&id=Securities%20Business) In 2022, securities business performed poorly due to global capital market shocks and domestic economic downturn, with declining investment and investment banking revenues; Zheshang Securities supported growth through mixed-ownership reform and convertible bond issuance - Global capital market shocks and domestic economic downturn led to a sluggish overall performance in the securities business, with declining revenues from securities investment and investment banking[49](index=49&type=chunk) - Zheshang Securities completed mixed-ownership reform of Zheshang Futures, raising approximately **RMB 1.73 billion**, and successfully issued **RMB 7 billion** in convertible bonds to support capital-driven business development[49](index=49&type=chunk) Securities Business Revenue Composition (2022 vs 2021) | Item | 2022 (RMB thousand) | 2021 (RMB thousand) | YoY Change (%) | | :----------------- | :------------------ | :------------------ | :----------- | | Total Securities Business Revenue | 6,080,383 | 6,403,024 | -5.0 | | Commission and Fee Income | 3,689,947 | 4,155,663 | -11.2 | | Interest Income | 2,390,436 | 2,247,361 | 6.4 | | Securities Investment Income | 679,734 | 1,835,563 | -62.9 | [Hotel and Catering Business](index=23&type=section&id=Hotel%20and%20Catering%20Business) In 2022, the hotel and catering business faced sustained pressure and significant revenue decline due to recurring domestic epidemics suppressing business travel and offline consumption demand - Recurring domestic epidemics severely suppressed business travel and offline consumption demand, leading to sustained operational pressure for the Group's two hotels[50](index=50&type=chunk) Hotel and Catering Business Revenue (2022 vs 2021) | Hotel Name | 2022 Revenue (RMB 10 thousand) | 2021 Revenue (RMB 10 thousand) | | :----------------- | :----------------------- | :----------------------- | | Zhejiang Grand Hotel Co Ltd | 2,349 | 4,545 | | Zheshang Kaiyuan Mingdu Hotel | 6,466 | 6,808 | [Long-term Investments](index=24&type=section&id=Long-term%20Investments) The Group's long-term investments, including joint ventures and associates, showed mixed performance in 2022, with some associates achieving net profit growth while others faced losses - Joint venture Shengxin Company (Yongjin Expressway Shaoxing Section) reported a net profit of **RMB 99.54 million** in 2022, a year-on-year decrease[51](index=51&type=chunk) - Associate Zhejiang Hangning Expressway Co Ltd reported a net profit of **RMB 208 million** in 2022, an increase[51](index=51&type=chunk) - Associate Zhejiang Zheshang Transformation and Upgrading Mother Fund Partnership (Limited Partnership) reported a net loss attributable to the Company of **RMB 40.99 million** in 2022, compared to a net profit of **RMB 178 million** in 2021[51](index=51&type=chunk) [Financial Analysis](index=25&type=section&id=Financial%20Analysis) [Profitability Analysis](index=25&type=section&id=Profitability%20Analysis) The Group's 2022 profit attributable to owners increased by 12.9% year-on-year, with growth in both basic and diluted EPS, though return on equity slightly decreased Profitability Indicators (2022 vs 2021) | Indicator | 2022 (RMB 10 thousand) | 2021 (RMB 10 thousand) | YoY Change (%) | | :------------------- | :--------------------- | :--------------------- | :----------- | | Profit attributable to owners of the Company | 537,887 | 476,243 | 12.9 | | Basic Earnings Per Share (cents) | 123.85 | 109.65 | 12.9 | | Diluted Earnings Per Share (cents) | 117.62 | 102.50 | 14.8 | | Return on Equity (%) | 17.4 | 18.0 | -0.6 | [Liquidity and Financial Resources](index=25&type=section&id=Liquidity%20and%20Financial%20Resources) As of end-2022, total current assets grew to RMB 146.129 billion, liquidity ratios (including after excluding client funds from securities business) improved, and net cash inflow from operating activities was RMB 7.641 billion Current Assets Composition (Dec 31, 2022 vs Dec 31, 2021) | Item | 2022 (RMB 10 thousand) | % of Total (%) | 2021 (RMB 10 thousand) | % of Total (%) | | :--------------------------------- | :------------------- | :------- | :------------------- | :------- | | Total current assets | 14,612,878 | 100 | 13,084,332 | 100 | | Bank balances, settlement funds, deposits and cash | 2,429,100 | 16.6 | 1,769,910 | 13.5 | | Bank balances and settlement funds held for customers | 4,874,480 | 33.4 | 3,839,280 | 29.3 | | Financial assets at fair value through profit or loss | 4,378,994 | 30.0 | 4,544,571 | 34.7 | | Client loans from margin financing and securities lending business | 1,755,727 | 12.0 | 1,939,413 | 14.8 | Current Ratios (Dec 31, 2022 vs Dec 31, 2021) | Indicator | 2022 | 2021 | | :--------------- | :----- | :----- | | Current Ratio | 1.40 | 1.30 | | Current Ratio excluding client funds from securities business | 1.80 | 1.60 | - Net cash inflow from operating activities for the period was **RMB 7.641 billion**[53](index=53&type=chunk) [Borrowings and Solvency](index=26&type=section&id=Borrowings%20and%20Solvency) As of end-2022, total liabilities were RMB 136.196 billion, interest-bearing borrowings decreased by 8.1% to RMB 49.697 billion, profit to interest coverage was 5.3, and debt-to-asset ratios (including after excluding client funds from securities business) both decreased Total Liabilities Composition (Dec 31, 2022) | Item | % of Total (%) | | :--------------------- | :------- | | Bank and other borrowings | 12.6 | | Short-term financing payable | 2.6 | | Bonds payable | 17.1 | | Financial assets sold under repurchase agreements | 17.5 | | Client funds from securities business | 35.6 | - Total interest-bearing borrowings were **RMB 49.697 billion**, an **8.1% decrease** from end-2021, with **68.6%** not repayable within one year[54](index=54&type=chunk) - Profit to interest coverage ratio for 2022 was **5.3** (2021: 5.2)[54](index=54&type=chunk) Debt-to-Asset Ratios (Dec 31, 2022 vs Dec 31, 2021) | Indicator | 2022 (%) | 2021 (%) | | :--------------- | :--------- | :--------- | | Debt-to-Asset Ratio | 73.1 | 74.8 | | Debt-to-Asset Ratio excluding client funds from securities business | 63.7 | 68.0 | [Capital Structure](index=27&type=section&id=Capital%20Structure) As of end-2022, the Group's total equity was RMB 50.210 billion, with fixed-rate debt being the largest component of total capital, and the leverage ratio decreased - The Group's total equity was **RMB 50.210 billion**[56](index=56&type=chunk) Total Capital Composition (Dec 31, 2022) | Debt Type | Amount (RMB 10 thousand) | % of Total Capital (%) | | :------------- | :----------------- | :--------------------- | | Fixed-rate debt | 10,695,498 | 57.4 | | Floating-rate debt | 1,616,074 | 8.7 | | Interest-free debt | 1,308,014 | 7.0 | - The leverage ratio (total debt less client funds from securities business divided by total equity) was **174.8%**, a decrease from **211.2%** in 2021[56](index=56&type=chunk) [Capital Expenditure Commitments and Usage](index=27&type=section&id=Capital%20Expenditure%20Commitments%20and%20Usage) Capital expenditure for the period was RMB 1.712 billion, primarily for equipment and facility construction; as of end-2022, total capital expenditure commitments were RMB 5.731 billion, mainly for highway renovation and expansion projects Capital Expenditure Usage (2022) | Item | Amount (RMB 10 thousand) | | :----------------- | :----------------- | | Equity investments | 8,000 | | Construction of buildings | 14,044 | | Construction of equipment, facilities and ancillary facilities | 149,150 | | Total | 171,194 | Capital Expenditure Commitments (Dec 31, 2022) | Item | Amount (RMB 10 thousand) | | :----------------- | :----------------- | | Equity investments | 86,025 | | Construction of buildings | 115,629 | | Construction of equipment, facilities and ancillary facilities | 121,443 | | Highway renovation and expansion projects | 250,000 | | Total | 573,097 | [Contingent Liabilities and Asset Pledges](index=27&type=section&id=Contingent%20Liabilities%20and%20Asset%20Pledges) As of end-2022, the Group had bank loan guarantees for joint ventures and subsidiary bank loans secured by highway toll rights or trade receivables - The Company provided guarantees for joint venture Shengxin Company's bank loans of **RMB 2.2 billion**, with an outstanding balance of **RMB 643 million** as of December 31, 2022[58](index=58&type=chunk) - Subsidiary Zhejiang Zhoushan Cross-sea Bridge Co Ltd pledged highway toll rights, with an outstanding bank loan balance of **RMB 5.722 billion**[58](index=58&type=chunk) - Subsidiary Zhejiang Longli Lilong Expressway Co Ltd pledged highway toll rights, with an outstanding bank and other borrowings balance of **RMB 4.640 billion**[59](index=59&type=chunk) [Foreign Exchange Risk](index=28&type=section&id=Foreign%20Exchange%20Risk) The Group's primary business is settled in RMB, but it faces foreign exchange exposure to HKD, EUR, and USD from H-share dividends, Hong Kong operations, and issued Euro and USD bonds - The Group's main business is settled in RMB, but it has foreign exchange risk exposure to HKD (H-share dividends), EUR (2021 Euro convertible bonds), and USD (2021 senior fixed-rate bonds)[60](index=60&type=chunk) - The Group did not use other hedging financial instruments during the period[60](index=60&type=chunk) [Outlook and Other Information](index=28&type=section&id=Outlook%20and%20Other%20Information) [Business Outlook](index=28&type=section&id=Business%20Outlook) For 2023, with optimized epidemic control and pro-growth policies, China's economy is expected to recover steadily; the Group anticipates high growth in highway business and new opportunities and challenges in securities - China's economy is expected to recover steadily in 2023, with the Group's highway traffic volume and toll revenue anticipated to achieve higher growth due to a low base effect[61](index=61&type=chunk) - The highway business will focus on market-oriented operations, deepen reform and innovation, enhance digitalization, and explore differentiated toll models and roadside resource development[62](index=62&type=chunk) - The securities business will face opportunities and challenges from the stock issuance registration system reform; Zheshang Securities will accelerate investment banking talent development, client acquisition, investment innovation, and build a synergistic business development system[62](index=62&type=chunk) [Significant Events After Reporting Period](index=29&type=section&id=Significant%20Events%20After%20Reporting%20Period) No significant events with a material impact on the Group have occurred since the end of the reporting period - No significant events with a material impact on the Group have occurred since the end of the reporting period[63](index=63&type=chunk) [Dividend Distribution Details](index=30&type=section&id=Dividend%20Distribution%20Details) The Company expects to pay the proposed dividend of RMB 37.50 cents per share on or about June 30, 2023, subject to approval at the Annual General Meeting - Subject to shareholder approval at the Annual General Meeting on May 4, 2023, the Company expects to pay a dividend of **RMB 37.50 cents per share** on or about June 30, 2023[64](index=64&type=chunk) [Share Transfer Suspension and Record Dates](index=30&type=section&id=Share%20Transfer%20Suspension%20and%20Record%20Dates) To determine eligibility for the Annual General Meeting and proposed dividend, the Company will suspend H-share transfer registration on specific dates and set corresponding record dates - H-share transfer registration will be suspended from **April 28 to May 4, 2023**, and from **May 10 to May 15, 2023**[65](index=65&type=chunk) - The record date for the Annual General Meeting is **May 4, 2023**, and for the proposed dividend is **May 15, 2023**[65](index=65&type=chunk) [Compliance and Publication](index=30&type=section&id=Compliance%20and%20Publication) The Company complied with the Corporate Governance Code in Appendix 14 of the Listing Rules during the reporting period and published its annual results announcement and annual report on the Stock Exchange and company websites - The Company complied with the code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules during the period[66](index=66&type=chunk) - The annual results announcement was published on the Stock Exchange website (www.hkexnews.hk) and the Company's website (www.zjec.com.cn)[67](index=67&type=chunk)

Revenue and Profitability - Revenue for the nine months ended September 30, 2022, was RMB 11,296,067 thousand, a decrease of 6.6% compared to RMB 12,096,211 thousand in the same period of 2021[2] - Gross profit for the period was RMB 4,694,836 thousand, down from RMB 5,152,761 thousand in the previous year, reflecting a decline of 8.9%[2] - Profit before tax decreased to RMB 4,597,299 thousand, compared to RMB 6,553,429 thousand in the same period last year, representing a decline of 29.8%[2] - Net profit for the period was RMB 3,750,440 thousand, down 26.7% from RMB 5,117,268 thousand in the previous year[2] - Total comprehensive income for the period was RMB 3,807,928 thousand, a decrease of 26.0% compared to RMB 5,147,588 thousand in the same period of 2021[3] - Basic earnings per share for the period was RMB 67.71, down from RMB 91.49 in the same period last year, reflecting a decrease of 26.0%[3] Assets and Liabilities - Non-current assets as of September 30, 2022, were RMB 43,174,337 thousand, down from RMB 45,453,364 thousand at the end of 2021[4] - Current assets increased to RMB 137,437,797 thousand from RMB 130,843,318 thousand at the end of 2021, showing a growth of 5.0%[4] - As of September 30, 2022, total assets amounted to RMB 180,612,134 thousand, an increase from RMB 176,296,682 thousand as of December 31, 2021, reflecting a growth of approximately 1.3%[9] - The company's total liabilities decreased from RMB 131,873,657 thousand as of December 31, 2021, to RMB 133,279,854 thousand as of September 30, 2022, showing a reduction of approximately 1.1%[9] - The net current assets increased significantly to RMB 44,935,270 thousand, compared to RMB 33,143,104 thousand in the previous year, marking an increase of approximately 35.6%[9] - The company's equity attributable to owners increased to RMB 28,619,829 thousand from RMB 27,150,342 thousand, reflecting a growth of about 5.4%[9] - The company reported a significant increase in reserves to RMB 24,276,714 thousand from RMB 22,807,227 thousand, representing a growth of approximately 6.5%[9] Cash Flow - Cash and cash equivalents at the end of the period were RMB 17,485,167 thousand, compared to RMB 16,008,093 thousand at the end of the previous year, an increase of 9.2%[5] - The net cash inflow from operating activities was RMB 1,509,583 thousand, down from RMB 2,279,044 thousand in the same period last year, a decline of 33.8%[5] - Cash inflow from investment activities was RMB 268,778 thousand, while cash outflow from financing activities was RMB 1,472,187 thousand, indicating a net cash outflow in financing[10] - The company's cash and cash equivalents at the end of the period reached RMB 17,485,167 thousand, up from RMB 16,008,093 thousand at the end of the previous year, indicating an increase of approximately 9.2%[10] - The impact of exchange rate changes resulted in a gain of RMB 25,016 thousand during the period[10]

Financial Performance - The group's revenue for the first half of 2022 decreased by 8.7% compared to the same period in 2021, amounting to RMB 7.02812 billion[8]. - The profit attributable to the company's owners for the same period was RMB 1.58627 billion, a year-on-year decrease of 36.9%[8]. - Basic earnings per share for the first half of 2022 were RMB 0.3652, reflecting a decrease of 36.9% year-on-year[8]. - The diluted earnings per share for the same period were also RMB 0.3652, down 33.4% year-on-year[8]. - The gross profit for the first half of 2022 was RMB 2,811,594,000, down from RMB 3,388,369,000 in the first half of 2021, indicating a decline of about 16.9%[44]. - The net profit for the period was RMB 2,047,230,000, a decrease of 35.4% from RMB 3,161,879,000 in the previous year[44]. - The profit attributable to shareholders was approximately RMB 1.58627 billion, a decrease of 36.9% year-on-year, with basic earnings per share of RMB 0.3652, down 36.9%[21]. - The company reported a net current asset of RMB 42,743,583 thousand, which is an increase of 28.9% compared to RMB 33,143,104 thousand as of December 31, 2021[170]. - The company reported a total revenue of RMB 16,263 million for the year 2022, showing a significant increase compared to RMB 12,617 million in 2021[123]. - The net profit for 2022 was RMB 3,162 million, up from RMB 2,047 million in 2021, indicating a growth of approximately 54.3%[123]. - The earnings per share (EPS) for 2022 was RMB 109.7, compared to RMB 57.9 in 2021, reflecting an increase of 89.5%[123]. Revenue Breakdown - Revenue from highway operations was RMB 4.048 billion, down 13.1% year-on-year, accounting for 57.6% of total revenue[11]. - The securities business generated revenue of RMB 2.929 billion, a slight decrease of 0.8% year-on-year, contributing 41.4% to total revenue[11]. - The company's highway business revenue for the six months ended June 30, 2022, was RMB 4,047,666 thousand, down from RMB 4,660,042 thousand in the same period of 2021[180]. - Securities business revenue was RMB 2,912,920,000, down 0.8% year-on-year, with commission and fee income decreasing by 10.2% to RMB 1,738,076,000[140]. - The revenue of Zhejiang Kaoyuan Mingdu Hotel was RMB 28.35 million, a decrease of 20.7% year-on-year, while Zhejiang Grand Hotel reported revenue of RMB 8.56 million, down 64.2% year-on-year[17]. Business Strategy and Development - The group is actively adjusting its business layout and integrating advantageous resources to improve performance in the securities business[2]. - The group is focusing on increasing research and development investment to enhance technology empowerment and service improvement[2]. - The group aims to establish itself as the "first brand in national highway operation services"[2]. - The group is making efforts to expand low-cost financing channels to support business development needs[2]. - The company plans to focus on high-quality development, enhancing operational efficiency, and exploring new demands in "highway + tourism" and "highway + service area" collaborations[35]. - The company aims to optimize its business and revenue structure to enhance its resilience against market fluctuations[36]. - The management plans to focus on high-quality investment projects in the domestic highway sector while continuously tracking international projects[36]. - The company intends to utilize private and public REITs to activate existing assets and promote sustainable development in its core highway business[36]. Market Conditions and Challenges - The overall economic environment in China showed signs of stabilization from May 2022, with GDP growth of 2.5% year-on-year in the first half of 2022[10]. - The company continues to navigate challenges posed by international inflation and local pandemic outbreaks affecting economic performance[134]. - The company anticipates a gradual recovery in overall traffic volume and toll revenue for its highways in the second half of 2022, supported by economic stabilization policies[35]. - The company faced significant revenue declines in highway toll income due to the recurring impact of the pandemic[134]. - The average daily traffic volume on the group's highways decreased significantly, with the Hangzhou-Ningbo Expressway traffic down 20.3% year-on-year[15]. Financial Position and Liabilities - As of June 30, 2022, the group's current assets totaled RMB 132.79 billion, with a current ratio of 1.50, up from 1.30 at the end of 2021[23]. - The total liabilities of the group were RMB 130.79 billion, a slight decrease from RMB 131.87 billion at the end of 2021[24]. - The total interest-bearing borrowings amounted to RMB 53.89 billion, with 74.3% not due within one year[25]. - The debt-to-asset ratio was 74.0% as of June 30, 2022, down from 74.8% on December 31, 2021; excluding client payables from securities business, the adjusted ratio was 66.5% compared to 68.0% at the end of 2021[26]. - Total equity as of June 30, 2022, was RMB 45.88024 billion, with fixed-rate debt at RMB 100.85238 billion and floating-rate debt at RMB 15.2905 billion, representing 26.0%, 57.1%, and 8.6% of total capital respectively[27]. Investments and Financing - The group successfully raised approximately RMB 1.73 billion through the mixed-ownership reform of Zhejiang Securities[16]. - The company issued zero-coupon convertible bonds totaling EUR 230 million on January 20, 2021, with net proceeds of approximately EUR 229 million used entirely to repay existing borrowings[33]. - The company issued convertible bonds totaling RMB 7 billion on June 14, 2022, with a maturity date of June 13, 2028, and a tiered interest rate starting at 0.2% in the first year and reaching 2.0% by the sixth year[82]. - The company has ongoing agreements for road maintenance services across multiple highways, ensuring operational efficiency and compliance with regulatory standards[98]. Operational Efficiency and Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[50]. - The company aims to accelerate the construction of smart highways and enhance digital technology innovation to support business operations and management[35]. - The company is committed to addressing the impacts of recurring pandemic challenges through innovative operational strategies[126]. - The company has maintained compliance with the corporate governance code and has adopted a set of securities trading rules for its directors[165].

Revenue and Profit - Revenue for Q1 2022 was RMB 3,635,830 thousand, a decrease of 1.8% compared to RMB 3,701,533 thousand in Q1 2021[2] - Gross profit increased to RMB 1,778,057 thousand, up 7.0% from RMB 1,660,715 thousand in the previous year[2] - Net profit for the period was RMB 1,296,643 thousand, down 14.7% from RMB 1,519,976 thousand in Q1 2021[3] - Basic earnings per share decreased to RMB 24.98 from RMB 28.31, representing a decline of 11.6%[8] Assets and Liabilities - Total assets as of March 31, 2022, were RMB 81,741,154 thousand, an increase from RMB 78,596,468 thousand as of December 31, 2021[4] - Non-current assets were RMB 44,741,883 thousand as of March 31, 2022, slightly down from RMB 45,453,364 thousand as of December 31, 2021[9] - The company's total liabilities increased to RMB 36,024,406 thousand as of March 31, 2022, from RMB 34,173,443 thousand as of December 31, 2021[9] - The total equity attributable to owners of the company rose to RMB 28,234,165 thousand as of March 31, 2022, compared to RMB 27,150,342 thousand as of December 31, 2021[9] Cash Flow - Cash and cash equivalents at the end of the period were RMB 16,473,939 thousand, down from RMB 12,917,590 thousand in the previous year[5] - The company reported a net cash outflow from operating activities of RMB 677,118 thousand, compared to an inflow of RMB 4,270,116 thousand in Q1 2021[5] - The net cash inflow from operating activities for the three months ended March 31, 2022, was RMB 1,365,313 thousand, compared to RMB 619,064 thousand for the same period in 2021[10] - The company reported a net decrease in cash and cash equivalents of RMB 677,118 thousand for the three months ended March 31, 2022, contrasting with an increase of RMB 4,270,116 thousand in the same period of 2021[10] - The company experienced a cash outflow from financing activities of RMB 2,043,574 thousand for the three months ended March 31, 2022, compared to an inflow of RMB 3,713,002 thousand in the same period of 2021[10] Current Assets - Net current assets rose to RMB 36,999,271 thousand, compared to RMB 33,143,104 thousand at the end of 2021[4] - The company's net current assets increased to RMB 36,999,271 thousand as of March 31, 2022, from RMB 33,143,104 thousand as of December 31, 2021[9] Other Income and Costs - Financing costs decreased slightly to RMB 457,308 thousand from RMB 466,330 thousand in Q1 2021[2] - Other income and gains were RMB 154,330 thousand, down from RMB 222,451 thousand in the previous year[2] - The impact of exchange rate changes on cash and cash equivalents was a decrease of RMB 2,920 thousand for the three months ended March 31, 2022[10]