Revenue and Profitability - Average toll revenue for Guangzhou-Shenzhen Expressway decreased by 16% to RMB 7,322,000 in Q3 2022 from RMB 8,766,000 in Q3 2021[1] - Average daily full-length vehicle flow for Guangzhou-Shenzhen Expressway dropped by 14% to 87,000 vehicles in Q3 2022 compared to 101,000 vehicles in Q3 2021[1] - Average toll revenue for Guangzhou-Zhuhai West Line Expressway fell by 13% to RMB 3,466,000 in Q3 2022 from RMB 3,980,000 in Q3 2021[1] - Average daily full-length vehicle flow for Guangzhou-Zhuhai West Line Expressway decreased by 11% to 50,000 vehicles in Q3 2022 from 56,000 vehicles in Q3 2021[1] - Total revenue for the nine months ended September 30, 2022, was RMB 47,735,000, down from RMB 61,975,000 in the same period of 2021, representing a decline of approximately 23%[5] - The company's net profit for the nine months ended September 30, 2022, was RMB 225,228,000, a decrease of 54% from RMB 489,887,000 in the same period of 2021[5] - Basic earnings per share for the nine months ended September 30, 2022, was RMB 7.2, down from RMB 15.7 in the same period of 2021[5] - Revenue from the Guangzhou-Shenzhen Expressway for the nine months ended September 30, 2022, was RMB 785,651 thousand, a decrease from RMB 910,038 thousand in 2021[11] - The total segment revenue for the nine months ended September 30, 2022, was RMB 1,350,115 thousand, compared to RMB 1,472,673 thousand in 2021, showing a decline[11] - The net profit attributable to the owners of the company for the nine months ended September 30, 2022, was RMB 221,560 thousand, down from RMB 483,046 thousand in 2021[11] Cash Flow and Financial Position - Net cash used in operating activities for the nine months ended September 30, 2022, was RMB (49,118) thousand, compared to RMB (182,964) thousand for the same period in 2021, indicating an improvement[8] - Cash inflow from investment activities for the nine months ended September 30, 2022, was RMB 387,778 thousand, up from RMB 954,670 thousand in 2021, reflecting a significant decrease[8] - Total cash and cash equivalents as of September 30, 2022, amounted to RMB 1,534,017 thousand, down from RMB 1,304,205 thousand in 2021[8] - New bank loans added during the nine months ended September 30, 2022, were RMB 487,805 thousand, compared to RMB 1,896,393 thousand in 2021, indicating a reduction in borrowing[8] - The cash inflow from financing activities for the nine months ended September 30, 2022, was RMB (357,858) thousand, compared to RMB 11,578 thousand in 2021, reflecting a negative trend[8] Tax and Other Income - The company's income tax expense for the nine months ended September 30, 2022, was RMB 25,837 thousand, down from RMB 67,181 thousand in 2021, a decrease of 61.5%[17] - The total revenue from other income decreased from RMB 61,975 thousand in 2021 to RMB 47,735 thousand in 2022, a decline of 23%[14] - The deferred tax expense significantly decreased from RMB 53,319 thousand in 2021 to RMB 7,661 thousand in 2022, a reduction of 85.6%[17] Investments and Joint Ventures - The company’s interest income from loans to a joint venture decreased to RMB 13,468 thousand for the nine months ended September 30, 2022, from RMB 33,205 thousand in 2021[11] - Interest income from bank deposits increased from RMB 20,911 thousand in 2021 to RMB 26,084 thousand in 2022, representing a growth of 24.4%[14] - The share of profits from joint ventures decreased from RMB 589,174 thousand in 2021 to RMB 350,277 thousand in 2022, a decline of 40.6%[16] - The estimated interest income from joint ventures was RMB 44,010 thousand in 2021 and RMB 46,771 thousand in 2022, showing a slight increase of 6.2%[16] - The company declared a 5% income tax on dividends from joint ventures amounting to RMB 11,438 thousand in 2022, up from RMB 8,744 thousand in 2021, an increase of 30.5%[18] Foreign Exchange and Other Losses - The company reported a foreign exchange loss of RMB (87,809) thousand for the nine months ended September 30, 2022, compared to a gain of RMB 15,776 thousand in 2021[11] - The net exchange gain (loss) was RMB 7,654 thousand in 2021 compared to a loss of RMB 15,058 thousand in 2022, indicating a significant negative shift[15] - The company reported a net unrealized loss of RMB 12,056 thousand in 2021, while there was no unrealized loss reported in 2022, indicating a recovery[15]

Toll Revenue and Traffic Volume - The average daily toll revenue for the Guangzhou-Shenzhen Expressway and the Guangzhou-Zhuhai West Line decreased by 20% year-on-year to RMB 9.13 million, with total toll revenue amounting to RMB 1.65 billion[5]. - The average daily toll revenue for the Guangzhou-Shenzhen Expressway fell to RMB 6.21 million, while the average daily traffic volume decreased by 20% to 71,000 vehicles[6]. - The average daily toll revenue for the Guangzhou-Zhuhai West Line also dropped to RMB 2.92 million, with a 21% decline in average daily mixed traffic volume to 215,000 vehicles[6]. - The total toll revenue for the Guangzhou-Shenzhen Expressway in the first half of 2022 was RMB 1.125 billion, with a daily average toll revenue of RMB 6.21 million, reflecting a year-on-year decline of 20%[13]. - The average daily traffic volume on the Guangzhou-Shenzhen Expressway decreased by 20% and 17% for full-length and mixed traffic, respectively, compared to the previous year[13]. - In the first half of 2022, the total toll revenue for the Guangzhou-Zhuhai West Line Expressway was RMB 528 million, with average daily toll revenue down 20% year-on-year to RMB 2.92 million[19]. - The average daily traffic volume decreased by 20% to 41,000 vehicles, and the mixed traffic volume fell by 21% to 215,000 vehicles[19]. - The revenue from the Guangzhou-Zhuhai West Line Expressway showed a decline of 18% compared to the previous year, with a toll revenue of RMB 319 million[25]. Financial Performance - The company reported a net profit of RMB 287 million for the six months ended June 30, 2022, representing a year-on-year decrease of 38%[25]. - The company’s total revenue for the first half of 2022 was RMB 931 million, down 18% from the previous year[25]. - The company’s financial costs amounted to RMB 9 million, while general and administrative expenses were RMB 20 million[25]. - The company’s bank deposit interest income was RMB 17 million, while the income from structured deposit investments was RMB 1 million[25]. - The net profit attributable to the company's owners for the first half of 2022 was RMB 286,582,000, compared to RMB 177,149,000 in the same period of 2021, reflecting a significant increase of approximately 62%[75]. - The total comprehensive income for the period was RMB 292,576,000, significantly higher than RMB 90,972,000 in the previous year, marking an increase of 221.5%[63]. - The total operating expenses, including interest and tax expenses, amounted to RMB 222,411,000, compared to RMB 203,989,000 in the previous year, reflecting an increase of about 9.3%[75]. - The company reported a tax expense of RMB 52,451,000 for the period, compared to RMB 18,750,000 in the previous year, representing an increase of 179.5%[63]. Joint Ventures and Acquisitions - The company is in the process of due diligence and asset evaluation for the potential acquisition of a 51% stake in Shenzhen Guangshen Haojiang Expressway Investment Co., Ltd.[5]. - The company has a potential acquisition of a 51% stake in Shenzhen Guangshen Yangjiang Expressway Investment Co., Ltd., with a memorandum of understanding signed on March 7, 2022[45]. - The company is collaborating with Guangdong Highway Construction to establish a joint venture for land development around the Luogang Interchange, pending government approval[18]. - The group’s share of joint venture performance decreased from RMB 353,368,000 in 2021 to RMB 246,326,000 in 2022, a decline of approximately 30.3%[82]. Economic Context and Future Outlook - The GDP growth for mainland China and Guangdong Province was 2.5% and 2.0% respectively in the first half of 2022, despite significant economic pressures[7]. - The company anticipates that the implementation of the government's economic stabilization policies will help restore economic stability in the Guangdong-Hong Kong-Macao Greater Bay Area[8]. - The Greater Bay Area had a total population exceeding 86 million and a GDP exceeding RMB 12.6 trillion in 2021, highlighting its economic significance[9]. - The company expects the Guangshen and Guangzhu West Line expressways to benefit from favorable policies, particularly in the Greater Bay Area[30]. - The company is focusing on market expansion and new technology development to enhance operational efficiency[108]. - The company has plans for future acquisitions to strengthen its market position[109]. - The company is committed to maintaining high corporate governance standards as per the corporate governance code[107]. Assets and Liabilities - The group maintains a dividend payout target of 100% of recurring income for the full year[30]. - The group's financial position includes assets and liabilities from the group headquarters and its share of joint ventures, with total assets of RMB 2,203 million as of June 30, 2022, compared to RMB 2,200 million as of December 31, 2021[32]. - The total assets amounted to RMB 12,965 million as of June 30, 2022, compared to RMB 12,789 million as of December 31, 2021, indicating an increase of 1.4%[36]. - The total liabilities increased to RMB 8,128 million from RMB 7,711 million as of December 31, 2021, reflecting a growth of 5.4%[36]. - The equity attributable to the owners of the company decreased to RMB 4,812 million as of June 30, 2022, down from RMB 5,056 million as of December 31, 2021, a decline of 4.8%[36]. - The debt-to-asset ratio improved to 34% as of June 30, 2022, from 29% as of December 31, 2021, showing a higher leverage position[36]. Dividends and Shareholder Information - The interim dividend declared is RMB 0.0575 per share, equivalent to HKD 0.0667299, representing 100% of the profit attributable to the owners for the six months ended June 30, 2022[46]. - The company will suspend share transfer registration on September 5, 2022, to determine shareholders eligible for the interim dividend[47]. - The company has a total of 2,213,449,666 shares held by its subsidiary, with a 43.49% ownership by Shenzhen Investment Holdings[55]. - The company declared dividends of RMB (332,495) thousand during the first half of 2022[67]. Operational Efficiency and Future Plans - The company plans to continue expanding its expressway projects and land development initiatives to enhance revenue streams in the future[75]. - The financial performance indicates a robust recovery trajectory post-pandemic, with strategic focus on operational efficiency and revenue growth[75]. - Ongoing research and development efforts are focused on enhancing product offerings and improving operational efficiency[111].

Financial Performance - Net profit for the group fell by 33% year-on-year to RMB 107 million[2] - The company's basic earnings per share decreased from RMB 5.15 to RMB 3.46 year-on-year[4] - The net profit attributable to the owners of the company for the three months ended March 31, 2022, was RMB 106,574,000, compared to RMB 158,823,000 in the same period of 2021[10] - The net profit attributable to the company's shareholders for the three months ended March 31, 2022, was RMB 106,574, down from RMB 158,823 in 2021, indicating a decline of about 32.8%[18] - The company’s share of profits from joint ventures for the three months ended March 31, 2022, was RMB 123,531, compared to RMB 158,754 in 2021, reflecting a decrease of approximately 22.2%[15] Revenue and Traffic - Average toll revenue for the Guangzhou-Shenzhen Expressway decreased by 27% year-on-year to RMB 5,805,000, while the average toll revenue for the Guangzhou-Zhuhai West Line dropped by 20% to RMB 2,915,000[3] - Average daily traffic volume for the Guangzhou-Shenzhen Expressway decreased by 32% to 63,000 vehicles, and for the Guangzhou-Zhuhai West Line, it decreased by 23% to 41,000 vehicles[3] - Revenue from the Guangzhou-Shenzhen Expressway project for the three months ended March 31, 2022, was RMB 113,665,000, compared to RMB 310,752,000 in the same period of 2021, reflecting a decline[10] - The company reported a total segment revenue of RMB 470,513,000 for the three months ended March 31, 2022, down from RMB 470,513,000 in the same period of 2021[10] Assets and Liabilities - Total assets increased from RMB 7,171,742,000 as of December 31, 2021, to RMB 7,291,019,000 as of March 31, 2022[5] - The group’s total liabilities increased from RMB 2,093,257,000 to RMB 2,101,305,000[6] - The company’s total assets as of March 31, 2022, amounted to RMB 21,629,000, compared to RMB 10,372,000 in 2021, reflecting an increase of about 108.7%[13] Cash Flow and Financing - For the three months ended March 31, 2022, the net cash used in operating activities was RMB (10,087,000) compared to RMB (159,539,000) for the same period in 2021, indicating a significant reduction in cash outflow[7] - The net cash from investment activities for the three months ended March 31, 2022, was RMB 371,863,000, a decrease from RMB 527,707,000 in the same period of 2021[7] - New bank loans added during the three months ended March 31, 2022, amounted to RMB 440,098,000, down from RMB 1,310,685,000 in the previous year[7] - The total cash and cash equivalents increased to RMB 1,915,084,000 as of March 31, 2022, compared to RMB 891,292,000 at the end of the previous year[7] - The company’s total financing cash flow for the three months ended March 31, 2022, was RMB 989,000, a decrease from RMB 1,890,000 in the same period of 2021[7] Expenses and Income - The group’s other income decreased from RMB 21,629,000 to RMB 10,372,000[4] - Financial costs increased from RMB 4,031,000 to RMB 6,729,000[4] - The company incurred corporate general and administrative expenses of RMB (10,144,000) for the three months ended March 31, 2022, compared to RMB (9,647,000) in the previous year[10] - The company’s interest income from bank deposits was RMB 2,601,000 for the three months ended March 31, 2022[10] - The estimated interest income recognized by the company from providing interest-free registered capital was RMB 14,370,000 for the three months ended March 31, 2022, compared to RMB 15,271,000 in 2021, a decrease of about 5.9%[15] Tax and Other Financial Metrics - The company reported a total tax expense of RMB 8,930 for the three months ended March 31, 2022, compared to RMB 14,367 in 2021, a reduction of about 37.8%[16] - The deferred tax expense for the three months ended March 31, 2022, was RMB 7,480,000, down from RMB 8,703,000 in 2021, a decrease of approximately 14.1%[16] - The company declared a 5% withholding tax on dividends from joint ventures amounting to RMB 4,575,000 for the three months ended March 31, 2022[17] - The company reported a foreign exchange gain of RMB 5,118,000 for the three months ended March 31, 2022, compared to a loss of RMB 43,000 in 2021, indicating a significant turnaround[14] Acquisitions - The company completed the acquisition of Shenzhen Investment Holdings International Capital Holdings Infrastructure Co., Ltd., resulting in a 71.83% indirect ownership[2]

Financial Performance - The company reported a profit attributable to owners of RMB 689 million for the year, reflecting a significant increase compared to previous years[9]. - The company achieved a revenue of RMB 1,974 million in 2021, showing growth from RMB 1,573 million in 2020[10]. - The company's attributable profit for 2021 was RMB 609 million, reflecting a 25% increase from RMB 497 million in 2020, primarily due to the low base effect from a 79-day toll exemption policy in 2020[18]. - The basic earnings per share for 2021 was RMB 19.77 cents, a decrease of 12% year-on-year, but an increase of 118% when excluding a one-time gain from the sale of a joint venture in 2020[18]. - The return on equity for 2021 was 12%, down from 14% in 2020[16]. - The total revenue from toll expressway projects for the year was RMB 1.573 billion, with a contribution of RMB 1.041 billion from the Guangshen Expressway[80]. - The group recorded a net profit attributable to shareholders of RMB 609 million in 2021, a decrease of 12% compared to RMB 689 million in 2020[91]. Assets and Liabilities - Total assets amounted to RMB 6,619 million as of December 31, 2021, with total liabilities reaching RMB 1,617 million[12]. - The company’s equity attributable to owners was RMB 4,978 million as of December 31, 2021, indicating a stable financial position[12]. - The company's debt-to-equity ratio was approximately 24% as of the end of 2021, indicating a manageable level of leverage[7]. - The debt-to-asset ratio increased to 29% in 2021, compared to 24% in 2020, indicating a rise in leverage[16]. - The group's total liabilities decreased from RMB 8,095 million in 2020 to RMB 7,734 million in 2021, a decrease of approximately 4.5%[98]. Cash Flow and Investments - The company's net cash used in operating activities for 2021 was RMB (183) million, a significant decline compared to previous years[13]. - The total cash and cash equivalents at the end of 2021 increased to RMB 1,552 million, up from RMB 519 million in 2020[13]. - The net cash from financing activities in 2021 was RMB 2,466 million, a decrease from RMB 3,190 million in 2020[13]. - The company reported a net cash inflow from investment activities of RMB 1,495 million in 2021, indicating a strong recovery in cash generation from investments[13]. Dividends - The proposed final dividend for 2021 is RMB 10.45 cents per share, representing a payout ratio of approximately 71.83% of the company's issued shares[18]. - The total regular dividend for the year ending December 31, 2021, amounts to RMB 0.1975 per share, representing a 117% increase compared to RMB 0.091 per share from the previous year[27]. - The regular dividend payout ratio for the year is 100% of the profit attributable to the company's owners[27]. - The interim dividend of RMB 0.093 per share was distributed on October 22, 2021, equivalent to HKD 0.11147631 per share at the exchange rate of RMB 1 to HKD 1.19867[27]. Market and Growth Strategy - The company plans to focus on infrastructure development in the Guangdong-Hong Kong-Macao Greater Bay Area, enhancing its market expansion strategy[5]. - The company aims to enhance its competitive position through strategic acquisitions and partnerships in the infrastructure sector[5]. - The company plans to enhance its highway business and land development in the Greater Bay Area, aiming to leverage major opportunities for growth and improve asset scale, revenue, and profitability[22]. - The company is actively pursuing project investments and acquisitions to boost its competitive edge and explore new business avenues for profit growth[22]. Operational Efficiency and Technology - The company is exploring new product and technology developments to improve operational efficiency and service offerings[5]. - The company aims to improve operational efficiency by 12% through strategic initiatives and cost management measures[34]. - The company is investing in new technology development, with a budget allocation of $50 million for R&D in the upcoming year[34]. Governance and Corporate Structure - The company has appointed multiple directors with extensive experience in investment, mergers, and corporate governance, enhancing its leadership team[34][35][36][37][38]. - The board consists of five executive directors, two non-executive directors, and four independent non-executive directors, with over one-third being independent[119]. - The company has established a nomination committee to oversee the nomination process for new directors, enhancing governance practices[127]. - The audit committee consists of three independent non-executive directors, ensuring compliance with corporate governance codes and overseeing financial reporting[128]. Economic Environment - The GDP of Guangdong Province grew by 8.0% year-on-year in 2021, reaching over RMB 12 trillion, aligning with the national economic recovery and providing a favorable operating environment for the company[20]. - In 2021, China's GDP grew by 8.1%, while Guangdong Province's GDP increased by 8.0%, laying a solid foundation for the "14th Five-Year Plan"[50]. - The total import and export value of Guangdong Province reached a historic high, exceeding RMB 8 trillion, accounting for one-fifth of the national total[50]. Traffic and Toll Revenue - The average daily toll revenue for the Guangzhou-Shenzhen Expressway increased by 24% year-on-year to RMB 8.087 million, while the average daily traffic volume rose by 26% to 93,000 vehicles[44]. - The average daily toll revenue for the Guangzhou-Zhuhai West Line Expressway grew by 26% year-on-year to RMB 3.758 million, with an average daily traffic volume increase of 23% to 53,000 vehicles[44]. - Total toll revenue for the year amounted to RMB 4.323 billion, reflecting a significant increase despite the impact of COVID-19[42]. Challenges and Risks - The company faced challenges due to local COVID-19 cases, which led to reduced travel and stricter government measures affecting traffic flow[42]. - Major risks identified include macroeconomic factors and road safety, with operational risks such as toll evasion and rising costs[155]. - The inherent risks remain stable, indicating no significant changes in risk levels[156].

Revenue and Traffic Performance - The average daily toll revenue for the Guangzhou-Shenzhen Expressway increased by 101% year-on-year to RMB 7.735 million, while the total toll revenue reached RMB 2.06 billion[38]. - The average daily toll revenue for the Guangzhu West Line Expressway rose by 106% year-on-year to RMB 3.636 million, with an average daily traffic volume of 51,000 vehicles, an increase of 89%[39]. - The group's net consolidated toll revenue was RMB 931 million, reflecting a 102% year-on-year increase, with contributions from the Guangzhou-Shenzhen Expressway and Guangzhu West Line Expressway at 66% and 34%, respectively[38]. - The average daily traffic volume for the Guangzhou-Shenzhen Expressway reached 89,000 vehicles, marking a 98% increase year-on-year[39]. - The average daily toll revenue for the Guangzhou-Shenzhen Expressway increased by 101% year-on-year to RMB 7.74 million, with total toll revenue reaching RMB 1.4 billion in the first half of 2021[45]. - The average daily traffic volume on the expressway rose by 98% year-on-year to 89,000 vehicles, with passenger vehicles contributing 69.8% to toll revenue and 80.9% to traffic volume[45]. - The average daily toll revenue for the Guangzhu West Line Highway increased by 106% year-on-year to RMB 3.64 million, with total toll revenue reaching RMB 658 million in the first half of 2021[51]. - The average daily traffic volume for the Guangzhu West Line Highway rose by 89% year-on-year to 51,000 vehicles, with passenger vehicles contributing 67.3% to toll revenue and 78.4% to traffic volume[51]. Economic Environment and Growth - The GDP growth for mainland China in the first half of 2021 was 12.7%, while Guangdong Province's GDP grew by 13.0%, outperforming other major global economies[40]. - The Greater Bay Area's GDP exceeded RMB 11 trillion in 2020, accounting for approximately 12% of the national GDP, indicating significant economic activity and development potential[41]. - The company anticipates continued benefits from the favorable economic environment, particularly in the context of the Greater Bay Area development strategy, which is a key national initiative[41]. - The Guangdong provincial government plans to enhance the construction of the Greater Bay Area, which is expected to support the long-term stable development of the company's expressway operations[42]. - The company operates in a competitive environment, with ongoing economic recovery and infrastructure development supporting the stability of the expressway industry[40]. COVID-19 Impact - The company faced challenges due to COVID-19 variants and related restrictions, which impacted traffic volumes and toll revenues during certain periods[40]. - The company is closely monitoring the impact of the COVID-19 pandemic on toll revenue and traffic volume due to renewed restrictions in May 2021[48]. - The total toll revenue for the two expressways increased by 102% to RMB 931 million, driven by the resumption of toll collection after the COVID-19 pandemic[58]. Financial Performance - The group's revenue for the six months ended June 30, 2021, was RMB 462 million, representing a 102% increase compared to the same period last year[57]. - The EBITDA from the Guangzhou-Shenzhen Expressway increased by 139% to RMB 562 million, while the Guangzhou-Zhuhai West Line Expressway's EBITDA rose by 153% to RMB 293 million[58]. - The group's share of net profit from the Guangzhou-Shenzhen Expressway was RMB 214 million, while the Guangzhou-Zhuhai West Line Expressway contributed RMB 88 million, resulting in a total net profit of RMB 302 million[60]. - The group reported a net profit of RMB 302 million for the two expressway projects, a significant turnaround from a net loss of RMB 72 million in the same period last year[60]. - The company reported a profit attributable to owners of RMB 287 million, compared to a loss of RMB 115 million in the same period last year[62]. - The company declared dividends amounting to RMB 320,807 thousand during the period, reflecting a commitment to return value to shareholders[104]. Investments and Joint Ventures - The company provided a total of RMB 2.56 billion in shareholder loans to the New Tang joint venture during the review period[61]. - The company has invested approximately RMB 749 million in the New Tang joint venture, including registered capital of RMB 45.6 million and shareholder loans of approximately RMB 693.4 million[61]. - The company anticipates that the New Tang joint venture will start contributing profits as early as 2023[61]. - The investment cost in joint ventures increased to RMB 2,476,789,000 as of June 30, 2021, from RMB 2,022,289,000 at the end of 2020[121]. - The company's share of joint venture results improved significantly from a loss of RMB 110,269 thousand in 2020 to a profit of RMB 307,584 thousand in 2021[102]. Corporate Governance and Shareholder Information - The company adheres to corporate governance codes to enhance shareholder value[92]. - The board of directors has not established a nomination committee due to existing policies for selecting and nominating directors[93]. - The company has established competitive compensation packages for employees, including stock options and performance bonuses[91]. - The company has not repurchased, sold, or redeemed any of its listed securities in the six months ending June 30, 2021[92]. - The interim dividend declared on August 20, 2021, is RMB 0.093 per share, representing 100% of the profit attributable to shareholders for the six months ended June 30, 2021[82]. Debt and Financial Position - The group's total liabilities decreased from RMB 8,095 million on December 31, 2020, to RMB 7,663 million on June 30, 2021, reflecting a reduction of 5.4%[69]. - The net debt of the group was RMB 3,700 million as of June 30, 2021, compared to RMB 4,830 million on December 31, 2020, indicating a decrease of 23.4%[70]. - The group's total assets, including the head office and share of joint ventures, were RMB 13,097 million on December 31, 2020, compared to RMB 12,672 million on June 30, 2021, showing a decline of 3.2%[72]. - The group's cash and bank deposits amounted to RMB 1,352 million, a decrease of 13.4% from RMB 1,561 million on December 31, 2020[65]. - The overall yield on bank deposits, including structured deposits, was 2.92% for the first half of 2021, compared to 1.46% in the same period of 2020[80]. Future Outlook and Strategic Plans - The company is focused on leveraging its strategic position within the Greater Bay Area to enhance its operational performance and market presence[41]. - The company plans to leverage the Shenzhen Pilot Demonstration Zone for further growth opportunities[146]. - The company is committed to maintaining high corporate governance standards as per the listing rules[145]. - The company plans to expand its market presence through strategic acquisitions and partnerships, as indicated by the recent agreement with Shenzhen Investment International Capital Holdings[131]. - The company anticipates continued growth in revenue and profitability in the upcoming quarters, driven by increased operational efficiency and market expansion strategies[133].

關於我們 深圳投控灣區發展有限公司（「本公司」，前稱合和公路基建有限公司） 於開曼群島註冊成立之有限公司，自二零零三年八月六日起在香港聯合 交易所有限公司上市，股份代號737（港幣櫃檯）及80737（人民幣櫃檯）。 深圳市投資控股有限公司為本公司的最終母公司。 本公司主要經營高速公路業務，發展策略聚焦於粵港澳大灣區內的基礎 設施建設和相關聯業務以及廣深高速公路沿線土地開發利用。 目 錄 2 財務摘要（按比例綜合法呈列） 3 五年財務摘要 6 主席報告書 10 股息及暫停辦理股份過戶登記手續 12 董事簡介 18 管理層討論及分析 18 業務回顧 33 財務回顧 48 其他 49 企業管治報告書 68 董事會報告書 81 獨立核數師報告書 87 綜合損益及其他全面收益表 88 綜合財務狀況表 89 綜合權益變動表 90 綜合現金流量表 91 綜合財務報表附註 141 附錄 — 綜合財務資料（按比例綜合法編製） 144 詞彙 150 公司資料 151 財務日誌 財務摘要 （按比例綜合法呈列） 0 200 400 600 800 0 400 800 1,200 1,600 2,000 2,400 612 689 3 ...

Revenue and Financial Performance - Average daily toll revenue for the Guangzhou-Shenzhen Expressway decreased by 56% year-on-year to RMB 3.85 million, with total toll revenue amounting to RMB 1.02 billion[15]. - Average daily toll revenue for the Guangzhu West Line Expressway fell by 55% year-on-year to RMB 1.76 million, contributing to a total toll revenue decline[15]. - The group's proportionate share of net toll revenue was RMB 462 million, a decrease of 55% year-on-year, with contributions from the Guangzhou-Shenzhen Expressway and Guangzhu West Line Expressway at 66% and 34% respectively[15]. - For the six months ended June 30, 2020, the company reported a total revenue of RMB 1,038 million, a decrease of 55% year-on-year[46]. - The contribution from the Guangzhou-Shenzhen Expressway project was RMB 691 million, while the contribution from the Guangzhu West Line Expressway was RMB 347 million[46]. - The company reported a net loss of RMB 115 million for the six months ended June 30, 2020, compared to a profit of RMB 621 million for the same period in 2019, indicating a significant decline[131]. - Revenue for the six months ended June 30, 2020, was RMB 462 million, down from RMB 2,144 million for the same period in 2019, reflecting a decrease of approximately 78.5%[132]. - The company's total comprehensive income for the period was RMB 304,902 thousand, compared to a loss of RMB 129,122 thousand in the prior year, indicating a strong recovery[91]. Economic Context and Recovery - The domestic GDP contracted by 6.8% in Q1 2020 but narrowed to a 1.6% contraction in the first half of 2020, indicating a gradual economic recovery[17]. - The Guangdong province's GDP also showed improvement, contracting by 6.7% in Q1 2020 and narrowing to a 2.5% contraction in the first half of 2020[17]. - The company anticipates that economic activities will regain momentum in the second half of 2020, benefiting traffic flow on its expressways[17]. - The Greater Bay Area, with a population exceeding 71 million and a GDP over RMB 11 trillion, is a significant economic region, contributing approximately 12% to the national GDP[18]. - The implementation of the "Greater Bay Area Development Plan Outline" has entered a concrete implementation phase, creating historical opportunities for infrastructure development[20]. Traffic and Toll Policies - The average daily traffic volume for the Guangzhou-Shenzhen Expressway decreased by 54% year-on-year to 45,000 vehicles, while the Guangzhu West Line Expressway saw a 52% decrease to 27,000 vehicles[16]. - The toll-free policy for small passenger vehicles during the Spring Festival was extended from 7 days to 16 days, leading to a decrease in toll revenue for the Guangzhou-Shenzhen Expressway and the Guangzhou-Zhuhai West Line[22]. - During the COVID-19 pandemic, tolls were waived for 79 days, negatively impacting the group's business performance[23]. - The average daily toll revenue and traffic volume for the Guangzhou-Shenzhen Expressway in June 2020 showed a slight year-on-year decline of 2% and 1%, reaching RMB 9.06 million and 103,000 vehicles, respectively[30]. - The average daily toll revenue of the Guangzhu West Line Expressway fell by 55% year-on-year to RMB 1.76 million, with traffic volume decreasing by 52% to 27,000 vehicles in the first half of 2020[37]. Joint Ventures and Land Development - The company signed a memorandum of cooperation in October 2019 to explore the comprehensive development and value release of land along the Guangzhou-Shenzhen Expressway[35]. - The company participated in the bidding for the land use rights of the Xintang Interchange residential project, successfully acquiring it for RMB 4.124 billion[41]. - The company plans to sell a total of 60% equity in the Xintang joint venture, which includes 22.5% held by the company, to enhance cash flow and operational capital[45]. - The company expects to record sale proceeds from the equity sale, allowing for early profit locking and improved cash flow[45]. - The company has established a new joint venture, Guangzhou Zhen Tong Industrial Development Co., Ltd., focusing on residential project development, indicating market expansion efforts[102]. Financial Position and Debt Management - The group's net debt as of June 30, 2020, was RMB 5.90 billion, up from RMB 5.15 billion on December 31, 2019[64]. - The debt-to-asset ratio increased from 48% on December 31, 2019, to 49% on June 30, 2020[64]. - The group's total liabilities as of June 30, 2020, amounted to RMB 4,379 million, with 4% due within one year, 70% due within one to five years, and 26% due after five years[72]. - The company’s total liabilities increased significantly to RMB 1,307 million as of June 30, 2020, from RMB 375 million in 2019, reflecting a rise of 248%[133]. - The company’s non-current liabilities rose significantly, with bank loans recorded at RMB 787,796 thousand as of June 30, 2020, compared to zero at the end of 2019[92]. Shareholder and Corporate Governance - Major shareholders hold 71.83% of the company's shares, with Shenzhen Investment Holding Co., Ltd. being the largest shareholder[80]. - The company has adopted a standard code for securities trading and confirmed compliance by all directors and relevant employees during the review period[86]. - The company is committed to enhancing shareholder value through prudent management and corporate governance practices[84]. - The company did not declare an interim dividend for the year ending December 31, 2020[111]. - The company declared dividends amounting to RMB 307,573 thousand during the period, reflecting its commitment to returning value to shareholders despite the challenging environment[93]. Future Outlook and Strategic Initiatives - The company plans to focus on market expansion and new product development in the upcoming quarters to recover from the current financial downturn[130]. - The company is exploring potential mergers and acquisitions to enhance its market position and drive future growth[130]. - Future outlook includes expansion plans in the Greater Bay Area, leveraging government initiatives to enhance infrastructure development[139]. - The company is actively pursuing new technology developments to improve operational efficiency and customer experience[139]. - The board has approved a strategy to divest 60% of its stake in the new joint venture through a public listing[139].

Financial Performance - The company reported a net profit of RMB 621 million for the year ended December 31, 2019, compared to RMB 666 million in 2018, representing a decrease of approximately 6.8%[10]. - Revenue from the Guangshen Expressway was RMB 2,144 million in 2019, a slight decrease from RMB 2,162 million in 2018, while the revenue from the Guangzhu West Line Expressway increased to RMB 735 million from RMB 663 million[11]. - The company's total assets amounted to RMB 5,245 million as of December 31, 2019, down from RMB 5,626 million in 2018, indicating a decline of approximately 6.8%[12]. - The company reported a net cash inflow from operating activities of RMB 613 million in 2019, compared to RMB 449 million in 2018[13]. - The company reported a net revenue of RMB 2.144 billion for the year ended December 31, 2019, a decrease of 1% compared to the previous year[71]. - The profit before interest, tax, depreciation, and amortization (EBITDA) for the same period was RMB 1.875 billion, reflecting a 2% decrease year-on-year[71]. - The net profit attributable to the company's owners for the year was RMB 612 million, representing a 2% increase compared to the previous year[71]. - The total comprehensive income for the year was RMB 629,198,000, compared to RMB 308,725,000 in the previous year, representing an increase of 103.5%[187]. - The company declared a special final dividend of RMB 0.10 per share, totaling approximately RMB 313,861,000, which was distributed from the share premium[193]. Debt and Liquidity - The debt-to-equity ratio was reported at 110% as of December 31, 2019, compared to 104% in the previous year, reflecting an increase in leverage[9]. - The company’s cash and bank balances decreased significantly to RMB 50 million in 2019 from RMB 691 million in 2018, indicating a liquidity challenge[12]. - The group’s cash and bank balances decreased from RMB 140 million in 2018 to RMB 50 million in 2019, while bank loans increased from zero to RMB 281 million[82]. - The group’s net debt as of December 31, 2019, was RMB 2.81 billion, with total debt including joint ventures amounting to approximately RMB 44.21 billion[93]. - The group’s total debt, including joint ventures, decreased from RMB 49.99 billion in 2018 to RMB 47.02 billion in 2019[93]. Operational Highlights - The company plans to focus on infrastructure development within the Guangdong-Hong Kong-Macao Greater Bay Area, aiming to enhance its market position and expand operations[3]. - The company has not reported any new residential projects for the year 2019, maintaining a focus on existing expressway operations[11]. - The company is exploring new strategies for market expansion and potential acquisitions to strengthen its operational capabilities in the region[3]. - The company is actively cooperating with local governments to implement pandemic prevention measures while ensuring smooth highway transportation[22]. - The company anticipates a decrease in toll revenue for 2020 due to the extended exemption of tolls for small passenger vehicles during the pandemic[22]. Traffic and Toll Revenue - The company reported a 3% decrease in average daily toll revenue and a 2% decrease in average daily traffic volume for the Guangzhou-Shenzhen Expressway, primarily due to traffic diversion from surrounding roads and expanded ETC toll discounts[21]. - The Guangzhou-Zhuhai West Line Expressway experienced a 5% increase in average daily toll revenue and a 9% increase in average daily traffic volume, benefiting from the continuous development of regional expressway networks[21]. - The average daily toll revenue for the Guangzhou-Shenzhen Expressway decreased by 3% to RMB 8,835,000 in 2019, while the total toll revenue for the year was RMB 4.74 billion[35]. - The average daily traffic volume for the Guangzhou-Shenzhen Expressway was 100,000 vehicles, reflecting a 2% decrease year-on-year[36]. - The total toll revenue for the year amounted to RMB 4.74 billion, indicating the impact of policy changes on revenue streams[35]. Joint Ventures and Investments - The company’s share of profits from joint ventures was RMB 701 million in 2019, a decrease from RMB 724 million in 2018, reflecting challenges in joint venture performance[10]. - The company invested a total of RMB 2.55 billion in the Xintang joint venture for land use rights, which was successfully acquired for RMB 4.124 billion[68]. - The joint venture "Xintang" will be established to participate in bidding for land use rights, with a total investment cap of RMB 6.8 billion[168]. - The ownership structure of the joint venture will be 62.5% held by Guangdong Highway Construction and its subsidiaries, and 37.5% by Shenwan Infrastructure[168]. Governance and Management - The board of directors consists of three executive directors, three non-executive directors, and three independent non-executive directors, ensuring a third of the board is independent[105]. - The company has established a clear corporate governance structure and reporting processes to ensure accountability and effective oversight by the board[124]. - The audit committee is composed of three independent non-executive directors and is responsible for reviewing financial reports and ensuring compliance with corporate governance standards[111]. - The company has implemented a risk management and internal control system aligned with COSO standards to provide reasonable assurance against significant misstatements or losses[122]. - The company encourages all directors to engage in relevant training courses to improve their knowledge in fulfilling their duties[116]. Economic Environment - The overall economic environment showed signs of stabilization with a GDP growth of 6.1% in China for 2019, despite global uncertainties[20]. - The Guangdong province's GDP grew by 6.2% year-on-year in 2019, contributing to the overall economic resilience in the region[37]. - The Greater Bay Area's GDP exceeded RMB 11 trillion in 2019, accounting for approximately 12% of China's total GDP, highlighting its significant economic activity[38]. - The implementation of the Greater Bay Area Development Plan began in 2019, aiming to create a world-class city cluster by 2022[40]. Shareholder Relations - The company announced a final dividend of RMB 0.101 per share, resulting in a total dividend of RMB 0.199 per share for the fiscal year, maintaining a payout ratio of 100% of the profit attributable to shareholders[24]. - The company maintains a shareholder communication policy to ensure timely access to comprehensive and understandable information for shareholders and potential investors[136]. - The annual general meeting serves as a key communication channel between the company and its shareholders, allowing for direct feedback on performance and operations[138].

Toll Revenue and Traffic Volume - In the first half of 2019, the average daily toll revenue for the Guangzhou-Shenzhen Expressway was RMB 8.73 million, a decrease of 4% year-on-year, while the total toll revenue reached RMB 2.296 billion[7]. - The average daily toll revenue for the Guangzhu West Line Expressway increased by 7% year-on-year to RMB 3.95 million, with a corresponding 10% increase in average daily traffic volume to 56,000 vehicles[8]. - The group's proportionate net toll revenue for the review period was RMB 1.038 billion, remaining stable year-on-year, with contributions from the Guangzhou-Shenzhen Expressway and Guangzhu West Line Expressway at 67% and 33% respectively[7]. - The average daily traffic volume for the Guangzhou-Shenzhen Expressway was 98,000 vehicles, down 3% year-on-year, influenced by traffic diversion and construction works[8]. - The average daily traffic volume on the expressway fell by 3% year-on-year to 98,000 vehicles, with the contribution of passenger vehicles to toll revenue at 72.2% and to traffic volume at 84.0%[18]. - The average daily toll revenue for the Guangzhou-Shenzhen Expressway decreased by 4% year-on-year to RMB 8.73 million, with total toll revenue for the period amounting to RMB 1.581 billion[18]. - The average daily toll revenue of the Guangzhu West Line Expressway increased by 7% to RMB 3.95 million, while the total toll revenue for the period reached RMB 715 million[25]. - The average daily traffic volume for the Guangzhu West Line Expressway grew by 10% to 56,000 vehicles, with passenger vehicles contributing 71.5% to toll revenue and 82.3% to traffic volume[25]. Economic Environment and Growth - The GDP growth for Guangdong Province in the first half of 2019 was 6.5%, reflecting a stable economic development environment[9]. - The Greater Bay Area, covering 11 cities including Guangzhou and Shenzhen, generated a GDP close to RMB 11 trillion in 2018, accounting for over 12% of the national economy, indicating significant growth potential[11]. - The overall economic environment remains stable despite global economic slowdowns, with the Chinese government implementing tax reductions and infrastructure investments to mitigate external uncertainties[9]. - The GDP growth rates for Guangzhou, Dongguan, and Shenzhen in the first half of 2019 were 7.1%, 6.9%, and 7.4% respectively, supporting traffic volume on the expressway[18]. Government Initiatives and Infrastructure Development - The government has introduced measures to stimulate consumption, including an additional quota of 180,000 private car purchases in Guangzhou and Shenzhen from June 2019 to the end of 2020[9]. - The company is focusing on infrastructure development and related businesses within the Guangdong-Hong Kong-Macao Greater Bay Area, which is expected to enhance regional competitiveness[10]. - The company is positioned to benefit from the strategic development outlined in the Greater Bay Area Development Plan, aiming to create an innovative economic system[10]. - The Guangdong provincial government is focusing on enhancing intercity transportation networks to create a one-hour living circle among major cities in the Greater Bay Area[14]. - The Hong Kong-Zhuhai-Macao Bridge significantly reduced travel time from Zhuhai to Hong Kong from approximately 4 hours to about 45 minutes, enhancing connectivity in the Greater Bay Area[14]. Toll Collection and Vehicle Classification - The Guangdong province has implemented a new toll collection model, transitioning from a one-time toll at exit to a segmented toll based on distance traveled, aiming for 90% of vehicles to use electronic toll collection (ETC) by the end of 2019[15]. - The toll discount for vehicles using ETC has been increased from 2% to 5% to promote its usage, with ETC payments accounting for approximately 45% of total toll revenue on the Guangzhou-Shenzhen and Guangzhou-Zhuhai expressways in the first half of 2019[16]. - The new vehicle classification standard for tolls will be implemented in January 2020, with minor expected impacts on toll revenue from passenger vehicle classification changes[17]. - The average toll revenue from freight vehicles is expected to change as the toll collection method shifts back to vehicle type classification, similar to the model used before 2014[17]. - The total toll revenue from Class 2 passenger vehicles accounted for approximately 1% of overall toll revenue in the first half of 2019, indicating a minor impact from the new vehicle classification[17]. Financial Performance and Profitability - The company reported a net profit of RMB 302 million for the period, reflecting a decrease of 1.6% compared to the previous year[30]. - The net toll revenue for the six months ended June 30, 2019, was RMB 1,040 million, a slight decrease of 0.2% year-on-year[30]. - The contribution from the Guangzhu West Line Expressway was RMB 323 million, with a year-on-year increase of 7%[30]. - The group reported a net loss of RMB 24,878,000 after tax adjustments for the first half of 2019, compared to a net loss of RMB 7,270,000 in the same period of 2018[83]. - The net profit attributable to the company for the six months ended June 30, 2019, was RMB 303,186,000, compared to RMB 297,345,000 for the same period in 2018[83]. Cash Flow and Financial Position - The company's cash and bank balances decreased from RMB 1.4 billion to RMB 620 million, while other liabilities increased from RMB 810 million to RMB 930 million[34]. - As of June 30, 2019, the company's cash and bank balances (excluding joint ventures) amounted to RMB 62 million, a decrease from RMB 140 million as of December 31, 2018[38]. - The total assets, including the assets of joint ventures, were RMB 10,989 million as of June 30, 2019, down from RMB 11,293 million as of December 31, 2018[40]. - The company's total liabilities from joint ventures decreased from RMB 5,429 million as of December 31, 2018, to RMB 5,160 million as of June 30, 2019[40]. - The debt-to-asset ratio improved slightly from 48% as of December 31, 2018, to 47% as of June 30, 2019[40]. Corporate Governance and Shareholder Information - The company has established competitive compensation packages for employees, including share option and share award plans[59]. - Major shareholders include Shenzhen Investment Holdings International Capital Holdings Limited, holding 2,213,449,666 shares (71.83% of total issued shares)[57]. - The company has a share option scheme approved by shareholders, which became effective on October 22, 2013, and will expire on October 21, 2023[54]. - The company has complied with all provisions of the corporate governance code, except for a deviation from provision A.5.1 regarding the establishment of a nomination committee[61]. - The company has a comprehensive audit committee, ensuring financial oversight and compliance with regulations[115]. Strategic Focus and Development Plans - The company is involved in the development of the Guangdong-Hong Kong-Macao Greater Bay Area, indicating a strategic focus on regional expansion[115]. - The company plans to monitor the impact of the new toll road on traffic flow in the region[28]. - The company has signed a strategic cooperation framework agreement with Vanke Co., Ltd. to explore land development along the Guangshen Expressway[23]. - The company is collaborating with local governments to optimize land use planning in line with new urban development strategies[23]. - The company anticipates that the development of the Hengqin New Area will drive traffic demand for the Guangzhu West Line Expressway[28].

Financial Performance - The company reported a net toll revenue of RMB 2,162 million for 2018, with a slight increase from RMB 2,159 million in 2017[15]. - The attributable profit for the year was RMB 666 million, up from RMB 632 million in the previous year, representing a growth of approximately 5.4%[14]. - Total assets amounted to RMB 5,626 million as of December 31, 2018, a decrease from RMB 5,649 million in 2017[16]. - The company's equity attributable to owners was RMB 5,148 million, down from RMB 5,526 million in 2017, indicating a decline of about 6.8%[16]. - The total debt of the company was RMB 451 million as of December 31, 2018, compared to RMB 386 million in 2015, reflecting an increase of approximately 17%[12]. - The company reported a net profit from joint ventures of RMB 724 million for the six months ended December 31, 2018, compared to RMB 680 million for the same period in 2017[14]. - The net profit from the toll road projects for the six months ending December 31, 2018, was RMB 355 million, with attributable profit to the company's owners amounting to RMB 304 million, resulting in basic earnings per share of RMB 9.87[22]. - Basic earnings per share increased from RMB 20.2 in 2017 to RMB 21.3 in 2018, reflecting a growth of approximately 5.43%[18]. - The return on equity for the company increased from 11% in 2017 to 13% in 2018, indicating improved profitability[19]. - The debt-to-asset ratio was reported at 47% in 2018, a slight decrease from 50% in 2017, suggesting a reduction in financial leverage[19]. - The overall toll revenue for the two expressways was RMB 2.16 billion, a slight decrease of 1% compared to the previous year[76]. - The group's attributable profit for the year was RMB 714 million, reflecting a 16% decrease compared to RMB 601 million in the previous year[75]. - The group's net profit before foreign exchange gains/losses was RMB 645 million, showing a 4% increase from RMB 672 million in the previous year[75]. - The net foreign exchange loss for the year was RMB 79 million, compared to a gain of RMB 62 million in the previous year[75]. - The group's share of profits from the Guangzhou-Shenzhen joint venture decreased by 3% to RMB 5.27 billion, down from RMB 5.44 billion in the previous year[77]. - The net profit attributable to the company's owners decreased by 16% to RMB 6.01 billion, compared to RMB 7.14 billion in the previous year[78]. Dividend Policy - The company has maintained a consistent dividend policy, with dividends declared for the year reflecting its commitment to shareholder returns[8]. - The board proposed a final dividend of RMB 0.099 per share for the six months ending December 31, 2018, representing a payout ratio of 100% of the attributable profit[22]. - The group plans to maintain a 100% dividend payout ratio target for the year[78]. Strategic Development - The company plans to expand its highway infrastructure projects in Guangdong Province, aligning with its strategic development direction[7]. - The company is actively participating in infrastructure development in the Greater Bay Area, aligning with the newly released development plan[28]. - The company aims to enhance market vitality and promote high-quality economic development through continued reforms and encouragement of scientific research and technological innovation[23]. - The company plans to enhance the value of land at the Xintang Interchange, which is undergoing a re-planning to convert land use for residential development[28]. - The company is exploring cooperative land planning solutions with local governments to optimize infrastructure and urban land use[28]. Economic Environment - The operating environment faced challenges due to global economic factors, including trade tensions and rising interest rates, impacting market confidence[23]. - The company plans to respond to potential economic slowdown risks by implementing supportive policies to stimulate domestic demand and investment[23]. - The expected GDP growth for Guangdong Province in 2019 is projected to be between 6.0% and 6.5%[47]. - The GDP growth for Guangdong Province in 2018 was 6.8%, closely aligning with the government's target[47]. Traffic and Revenue Trends - The average daily toll revenue for the Guangzhou-Shenzhen Expressway decreased by 3% year-on-year to RMB 9.15 million in 2018, with total annual toll revenue amounting to RMB 3.341 billion[56]. - The average daily toll revenue for the Pearl River Delta West Route saw double-digit growth, positively impacted by truck traffic restrictions on the Foshan Ring Road[25]. - The average daily toll revenue for the Pearl River Delta West Coast Expressway increased by 10% year-on-year to RMB 3.95 million, with total annual toll revenue reaching RMB 1.443 billion[63]. - The total toll revenue for the entire year of 2018 reached RMB 4.784 billion, with an average daily toll revenue growth of 1% year-on-year to RMB 13.11 million[43]. - The average daily traffic volume for the Guangzhou-Shenzhen Expressway fell by 1% year-on-year to 102,000 vehicles, with passenger vehicles contributing 71.2% to toll revenue and 83.4% to traffic volume[56]. - The total traffic volume for the Pearl River Delta West Route reached 54,000 vehicles per day, also showing a 10% increase year-on-year[45]. Management and Governance - Liu Zhengyu was appointed as a non-executive director and chairman of the board on April 11, 2018, with extensive experience in investment management and corporate governance[33]. - Zhang Tianliang became the executive director and general manager on April 11, 2018, holding various leadership roles in government and investment companies since 1991[34]. - Wu Cheng has been the executive director and deputy general manager since April 11, 2018, with a background in transportation management and logistics[35]. - The board consists of three executive directors, three non-executive directors (including the chairman), and three independent non-executive directors, ensuring that one-third of the board members are independent[111]. - The company adopted a board diversity policy on January 1, 2019, to enhance decision-making capabilities and achieve sustainable development[114]. - The audit committee is composed of three independent non-executive directors, ensuring that at least one member has appropriate professional qualifications or relevant financial management expertise[119]. - The board has established an executive committee responsible for reviewing and approving the company's daily operations and routine business processes[118]. - The company has arranged appropriate insurance to protect directors and senior officers against legal claims[112]. Risk Management - The group has adopted a comprehensive risk management framework to identify, communicate, mitigate, and report significant risks, integrating risk management principles into strategic and operational planning[137]. - The board, with the assistance of external and internal auditors, oversees the effectiveness of the risk management and internal control systems, with no significant issues identified during the review period[143]. - The company has implemented a whistleblowing policy to provide employees with a platform to report significant misconduct without fear of retaliation[136]. - The company emphasizes the importance of a robust risk management and internal control system to achieve business objectives and ensure compliance with applicable laws and regulations[133]. Shareholder Communication - The company emphasizes the importance of communication with shareholders and has adopted a Shareholder Communication Policy to ensure timely access to comprehensive and understandable information[153]. - The annual general meeting serves as a key communication channel, allowing shareholders to express their opinions directly to the board[155]. - The company maintains high corporate governance standards and prioritizes open communication with the investment community, participating in investor meetings and forums[157]. Corporate Changes - The company has proposed to change its English name from "Hopewell Highway Infrastructure Limited" to "Shenzhen Investment Holdings Bay Area Development Company Limited" to better reflect its future strategy and business development direction[198]. - The resolution to change the company name requires approval from shareholders at the 2019 annual general meeting and the Cayman Islands Registrar of Companies[198]. - Deloitte was proposed to be reappointed as the company's auditor at the 2019 annual general meeting[199].