Financial Performance - The company achieved a revenue increase of 12% year-over-year, driven by higher toll collection from increased traffic[3]. - The company reported a net profit margin of 25% for the fiscal year 2024, reflecting improved operational efficiency[3]. - The company's revenue for the reporting period was approximately RMB 7,021,823 thousand, an increase of about 25.19% compared to RMB 5,608,829 thousand last year, primarily driven by accelerated construction progress of expansion projects[35]. - Revenue from highway operations was approximately RMB 1,044,796 thousand, a decrease of about 8.73% from RMB 1,144,716 thousand last year, with toll revenue from Jizhao Expressway declining by 11.63% and from Deshang and Xinnan Expressway by 5.78%[36]. - The company reported a gross profit of RMB 740,590 thousand, down from RMB 811,984 thousand last year, reflecting a decrease of approximately 8.77%[34]. - The net profit attributable to the parent company was approximately RMB 484,586 thousand, a decrease of about 7.74% from last year's RMB 525,260 thousand, primarily due to a significant decline in toll revenue from the Jinan-Heze Expressway project[48]. - The company's debt increased to RMB 10,608,789 thousand, up from RMB 7,102,515 thousand last year, indicating a rising leverage ratio[34]. - The company's net asset return rate was 7.89%, down from 8.92% last year, reflecting a decline in profitability[34]. Operational Efficiency - The company is focusing on new technology development, particularly in electronic toll collection systems, to enhance operational efficiency[11]. - The company reported a comprehensive improvement in operational efficiency, with key performance indicators showing an upward trend despite external challenges[27]. - The company is committed to enhancing its operational efficiency through ongoing projects and potential mergers and acquisitions[18]. - The management team is focused on enhancing operational efficiency and safety through refined management practices and advanced management concepts[73]. - The company aims to optimize business processes and implement management innovations to ensure profitability amid external environmental changes[142]. Market Expansion and Strategy - The company plans to expand its market presence by entering into a comprehensive procurement framework agreement with Shandong Expressway Group for the period from 2024 to 2026[7]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its service offerings[3]. - The company has established a strategic committee to oversee its long-term planning and market expansion strategies[24]. - The company aims to enhance its market presence through strategic expansions and collaborations in the transportation and construction sectors[27]. - The company is committed to becoming a leading domestic comprehensive service provider for expressways, focusing on high-quality, sustainable development in the upcoming years[30]. Corporate Governance - The board of directors consists of 14 members, including 3 executive directors and 5 independent non-executive directors, ensuring compliance with corporate governance standards[84]. - The company has adopted all applicable provisions of the Corporate Governance Code, enhancing its governance system to protect shareholder interests and improve accountability[76]. - The audit committee is composed of three directors, with independent non-executive director He Jiale serving as the chairman[99]. - The board has adopted a diversity policy, considering factors such as gender, age, cultural background, professional experience, and skills when appointing members[112]. - The company has implemented a mechanism to manage conflicts of interest and ensure independent opinions are obtained[122]. Social Responsibility and Community Engagement - The company has actively engaged in social responsibility initiatives, promoting community welfare and employee engagement through various programs[28]. - The company emphasizes the importance of investor relations management and has established regulations to optimize this area, aiming to enhance transparency and protect shareholder rights[154]. - The company is committed to timely and accurate information disclosure, ensuring compliance with applicable laws and regulations[155]. Technological Innovation - The company is dedicated to sustainability and has implemented measures to reduce its environmental impact while maintaining operational efficiency[167][170]. - The company is actively involved in the development of new technologies and products to enhance its service offerings and meet market demands[165][171]. - The company has initiated the construction of the second phase of the Smart Transportation Industrial Park, indicating a strategic focus on technological innovation[27]. Employee Engagement and Development - The company has a strong focus on human resources, with initiatives aimed at improving employee engagement and professional development[167][169]. - The company has a total of 672 employees, with 250 female employees, representing approximately 37% of the workforce[116]. - Among the employees, 552 (about 82%) are aged between 30 and 50, reflecting a focus on age diversity[116]. Financial Services and Agreements - The company entered into a financial services framework agreement with Shandong Expressway Group, effective from January 1, 2024, to December 31, 2026, for deposit and other financial services[7]. - The company is involved in various financial services, including bank acceptance bills and domestic guarantees[15]. Infrastructure Development - The company achieved a significant milestone with the completion of the Jinan-Heze Expressway expansion project, which opened to traffic in December, featuring a "dual eight-lane" design[27]. - Total investment in the Jinan-Heze Expressway expansion project reached RMB 130.96 billion, with RMB 41.51 billion invested in 2024 alone[69]. - The new toll standards for the Jinan-Heze Expressway expansion section will be implemented starting December 20, 2024[63].

Financial Performance - Revenue increased by approximately 25.19% to approximately RMB 7,021,823 thousand[3] - Profit attributable to owners of the parent decreased by approximately 7.74% to approximately RMB 484,586 thousand[3] - Earnings per share was approximately RMB 0.23, down from RMB 0.25 in the previous year[4] - Total other income and gains increased to RMB 107,465 thousand in 2024 from RMB 71,454 thousand in 2023, representing a growth of 50.4%[31] - Pre-tax profit decreased to RMB 657,269 thousand in 2024 from RMB 713,591 thousand in 2023, a decline of 7.9%[36] - The net profit for Jinan Xinyue in 2024 was RMB 2,003,000, down 55.7% from RMB 4,519,000 in 2023[45] - The net profit attributable to the parent company was approximately RMB 484,586 thousand, a decrease of about 7.74% from RMB 525,260 thousand last year, mainly due to reduced toll revenue from the Jizhao Highway expansion project[78] Revenue Breakdown - Customer contract revenue reached RMB 7,020,098,000, with significant contributions from construction and other services amounting to RMB 5,975,302,000[27] - Revenue from highway operations was RMB 1,044,796,000, while construction and other businesses contributed RMB 5,975,302,000[27] - The construction and other business segment generated revenue of approximately RMB 5,975,302 thousand, up about 33.92% from RMB 4,461,812 thousand last year, driven by the expansion project and other construction activities[69] - The company's revenue for 2024 was RMB 43,807,000, a decrease of 1.7% from RMB 44,555,000 in 2023[45] Assets and Liabilities - Total non-current assets increased to RMB 19,013,898 thousand from RMB 12,601,803 thousand[5] - Total current liabilities rose significantly to RMB 4,851,534 thousand from RMB 1,722,537 thousand[6] - Net current liabilities amounted to RMB 2,789,814 thousand compared to net current assets of RMB 182,692 thousand in the previous year[6] - Total assets less current liabilities increased to RMB 16,224,084 thousand from RMB 12,784,495 thousand[6] - Total equity attributable to owners of the parent increased to RMB 6,083,759 thousand from RMB 5,924,955 thousand[6] Financial Reporting Standards - The group has adopted new and revised Hong Kong Financial Reporting Standards, including HKFRS 16 and HKAS 1, with no impact on the financial position or performance[12] - The group has reassessed its liability terms and conditions as of January 1, 2023, and found that the classification of liabilities remains unchanged after the initial application of the revisions[12] - The company expects no significant impact on its financial statements from the recent amendments to Hong Kong Financial Reporting Standards[22] - The amendments to financial reporting standards clarify the treatment of financial assets and liabilities, with no expected significant impact on the group's financial statements[21] Dividends - Proposed final dividend for the year 2024 is RMB 0.1 per share (tax included)[3] - Proposed final dividend per ordinary share is RMB 0.100 in 2024, down from RMB 0.150 in 2023, reflecting a total of RMB 200,000 thousand compared to RMB 300,000 thousand in the previous year[36] - The board of directors proposed a final cash dividend of RMB 0.1 per share, totaling RMB 200,000,000 for the fiscal year ending December 31, 2024[107] - The dividend distribution plan will be submitted for approval at the 2024 Annual General Meeting scheduled for June 26, 2025[108] Investments and Projects - The company has made significant investments in urban renewal projects, including RMB 400,000,000 in a comprehensive development project and RMB 280,000,000 in a marine information industry project[51] - The company invested RMB 100,000,000 in the Pingdu Water Supply Pipeline project with a fixed return rate of 10%, expecting a total amount of RMB 101,190,000 by December 31, 2024[52] - The Jinan to Heze expressway expansion project has a total estimated investment of RMB 18.6 billion and spans 152.7 kilometers, expanding from a four-lane to an eight-lane highway[95] - The group achieved a cumulative investment completion of RMB 13.096 billion for the Jinan to Heze expressway expansion project by the end of 2024, with RMB 4.151 billion invested in 2024 alone[96] Employee and Operational Metrics - Employee compensation expenses totaled approximately RMB 230,855 thousand, an increase from RMB 203,667 thousand in the previous year[82] - The group employed a total of 672 employees as of December 31, 2024, down from 696 employees as of December 31, 2023[82] - The average daily traffic for Jizhao Expressway was approximately 37,233 vehicles, while for Deshang Expressway it was about 54,997 vehicles, and for Xinnan Expressway it was around 11,006 vehicles[87] Compliance and Governance - The company has adopted all applicable provisions of the Corporate Governance Code and has complied with the standards set forth[104] - The company has confirmed compliance with the standards for securities transactions by directors and supervisors[105]

Qilu Expressway Company Limited 齊魯高速公路股份有限公司 於中華人民共和國註冊成立的股份有限公司 Interim Report 中期報告 2024 股份代號：1576 中 期 報 告 2024 目錄 2 釋義 公司資料 管理層討論與分析 其他資料 獨立審閱報告 中期簡明合併損益及綜合收益表 中期簡明合併財務狀況表 中期簡明合併權益變動表 中期簡明合併現金流量表 中期簡明合併財務資料附註 | --- | |-------| | | | 5 | | 7 | | 18 | | 23 | | 24 | | 25 | | 27 | | 28 | | 30 | 釋義 在本報告中，除非文義另有所指，下列詞語具有如下含義： 「2023年度股東大會」 本公司於2024年6月26日召開及舉行之2023年度股東大會 「審計委員會」 董事會審計委員會 「董事會」 本公司董事會 「本公司」 齊魯高速公路股份有限公司，於2016年12月6日在中國成立的股份有限公司 「公司法」 《中華人民共和國公司法》 「控股股東」 具有《上市規則》賦予該詞彙的涵義 「《企業管治守則》」 載於《上市規則》附錄C1的《企業管 ...

Financial Performance - The company reported unaudited interim results for the six months ended June 30, 2024, with a focus on compliance with Hong Kong Stock Exchange regulations[1]. - The company's operating revenue for the reporting period was approximately RMB 2,807,598 thousand, an increase of about 69.45% compared to RMB 1,656,842 thousand in the same period last year[13]. - The company reported a total revenue of approximately RMB 2,807,598 thousand, representing a year-on-year increase of about 69.45%[29]. - The gross profit was approximately RMB 356,274 thousand, reflecting a year-on-year decline of about 20.98%, with a gross margin of 12.69%, down approximately 15 percentage points from 27.21% in the previous year[29]. - The net profit attributable to the parent company was approximately RMB 248,588 thousand, a decrease of about 17.27% from RMB 300,473 thousand in the same period last year[21]. - The total comprehensive income for the six months ended June 30, 2024, was RMB 248,588 thousand, compared to RMB 300,473 thousand for the same period in 2023, reflecting a decrease of approximately 17.24%[57]. - Basic earnings per share for the period was RMB 0.12, compared to RMB 0.15 in the same period last year, reflecting a 20% decrease[54]. - The company reported a decrease in pre-tax profit to RMB 334,469 thousand for the six months ended June 30, 2024, down from RMB 401,583 thousand in the previous year, representing a decline of approximately 16.67%[58]. - The total income tax expense for the period was RMB 81,604,000, compared to RMB 103,238,000 for the same period in 2023, indicating a decrease of 21%[72]. Revenue Sources - Toll revenue from the Jizhao Expressway was approximately RMB 230,140 thousand, a decrease of about 33.79% from RMB 347,572 thousand in the previous year[13]. - Revenue from the Deshang Expressway (Liaocheng to Fan County section) was approximately RMB 230,860 thousand, down about 7.46% from RMB 249,462 thousand year-on-year[13]. - Revenue from the Xinnan Expressway was approximately RMB 22,503 thousand, a decrease of about 13.58% from RMB 26,039 thousand in the same period last year[13]. - The company recorded construction and sales revenue of approximately RMB 2,322,692 thousand, an increase of about 125.03% from RMB 1,032,166 thousand year-on-year, mainly due to the Jizhao Expressway expansion project[13]. - Rental income for the reporting period was approximately RMB 992 thousand, a decrease of about 23.93% from RMB 1,304 thousand in the previous year, primarily due to reduced income from advertising and communication signal transmission pipeline rentals[14]. Traffic Volume - Daily traffic volume on the Jizhao Expressway decreased from approximately 48,300 vehicles to about 31,200 vehicles during the reporting period[13]. - Daily traffic volume on the Deshang Expressway decreased from approximately 58,700 vehicles to about 52,900 vehicles during the reporting period[13]. - Daily traffic volume on the Xinnan Expressway decreased from approximately 11,600 vehicles to about 10,100 vehicles during the reporting period[13]. - In the first half of 2024, traffic volume on Jihe Expressway, Deshan Expressway (Liaocheng to Fanxian section), and Xinnan Expressway was approximately 31,206 vehicles, 52,931 vehicles, and 10,109 vehicles per day, respectively[30]. Corporate Governance - The company is focused on maintaining compliance with corporate governance codes as outlined in the Hong Kong Stock Exchange regulations[5]. - The company is committed to maintaining high standards of corporate governance and has adopted all applicable provisions of the Corporate Governance Code[50]. - The board will continue to review and enhance its corporate governance system to ensure compliance with the Corporate Governance Code[50]. - The company has confirmed that all directors and supervisors complied with the standards of the Model Code regarding securities transactions during the reporting period[50]. - The company aims to enhance shareholder value and accountability through effective corporate governance systems[50]. Shareholder Information - The company has a significant shareholder, Shandong Expressway Co., Ltd., which holds approximately 38.93% of the issued shares[8]. - Major shareholders include Shandong Expressway holding 38.93% and China COSCO Shipping Group holding 30% of H-shares[43]. - The company reported a total of 121,500,000 shares held by three major shareholders, each representing approximately 6.08% of the total issued share capital[44]. - Prudential Corporation Holdings Limited and its affiliates collectively hold 103,750,000 shares, accounting for about 5.19% of the total issued share capital[44]. - The company has no treasury shares and did not engage in any stock transactions during the reporting period[47]. Investments and Projects - The company is involved in the operation and management of the Jinan to Heze Expressway, which spans approximately 153.6 kilometers[6]. - The company is actively involved in the expansion and improvement of expressway projects, including the Jinan to Heze expressway upgrade[6]. - The total investment for the Jihe Expressway expansion project is estimated at RMB 18.6 billion, with a total length of 152.7 kilometers, expanding from a four-lane to an eight-lane highway[36]. - As of the reporting period, the project has completed investments of approximately RMB 28.56 billion, with cumulative investments reaching RMB 118.01 billion[36]. - The project has achieved 94.83% completion for subgrade works, 89.36% for pavement works, and 90.02% for bridge and culvert works[36]. Employee Information - The company employed a total of 672 employees as of June 30, 2024, down from 702 employees a year earlier, with total employee compensation expenses of approximately RMB 108,201 thousand[25]. Cash Flow and Financial Position - Cash generated from operating activities for the six months ended June 30, 2024, was RMB 201,360 thousand, significantly lower than RMB 524,781 thousand in the previous year, indicating a decrease of approximately 61.73%[58]. - The company reported a net cash outflow from investing activities of RMB 1,542,214 thousand for the six months ended June 30, 2024, compared to RMB 1,686,598 thousand in the same period of 2023[59]. - Financing activities generated a net cash inflow of RMB 1,919,922 thousand for the six months ended June 30, 2024, an increase from RMB 1,028,525 thousand in the previous year[59]. - Total liabilities increased to RMB 10,644,842 thousand from RMB 8,455,016 thousand at the end of 2023, indicating a rise in financial obligations[56]. - The company reported a total dividend payable of RMB 225,000 thousand as of June 30, 2024, with no previous amount recorded as of December 31, 2023[93]. Related Party Transactions - The company engaged in significant transactions with related parties, indicating a strong reliance on these relationships for revenue generation and operational support[88]. - Total income from related party transactions was RMB 157,804,000, compared to RMB 103,013,000 in the same period last year, indicating a year-on-year increase of about 53%[88]. - The total expenses related to transactions with subsidiaries of the ultimate holding company were RMB 924,604,000, a substantial rise from RMB 291,510,000 in the previous year, reflecting an increase of approximately 216%[90].

Financial Performance - Total revenue for 2023 was RMB 5,608.83 million, a decrease of 52.4% compared to RMB 2,931.29 million in 2022[45]. - Gross profit for 2023 was RMB 811.98 million, down 29.8% from RMB 1,159.39 million in 2022[45]. - Net profit attributable to owners of the company for 2023 was RMB 533.90 million, a decline of 31.5% from RMB 780.06 million in 2022[45]. - The company reported a cash and cash equivalents balance of RMB 398.96 million, a decrease of 41.3% from RMB 679.61 million in 2022[45]. - Total assets for 2023 amounted to RMB 14,507.03 million, an increase of 39.5% from RMB 10,412.56 million in 2022[45]. - The debt-to-equity ratio was 53.08%, up from 35.49% in 2022, indicating increased leverage[45]. - The group reported construction and industrial product sales revenue of approximately RMB 4,461,812 thousand during the reporting period[69]. - The net operating profit for the year was RMB 533,903 thousand, a decrease of approximately RMB 246,153 thousand or 31.56% from 2022's profit of RMB 780,056 thousand[159]. - The earnings per share for the year were RMB 0.25, down 35.90% from RMB 0.39 in 2022[159]. Dividends and Shareholder Returns - The company proposed a final dividend of RMB 0.15 per share (tax included) for the fiscal year 2023[5]. - The dividend distribution is scheduled for July 9, 2024, if approved, with a suspension of share transfer registration from July 4 to July 9, 2024[161]. - The company expects to distribute approximately 60.0% to 70.0% of its annual distributable profits as dividends, subject to significant investment or acquisition plans which may lower the payout ratio[165]. - As of December 31, 2023, the company's undistributed profits available for distribution to shareholders amount to approximately RMB 1,655,775 thousand[167]. Agreements and Partnerships - The company entered into a financial services framework agreement with Shandong Expressway Group for the period from January 1, 2024, to December 31, 2026, which includes deposit services and other financial services[6]. - The company established a comprehensive procurement framework agreement with Shandong Expressway Group for the same period, focusing on the procurement of various goods[7]. - The company signed a comprehensive sales framework agreement with Shandong Expressway Group for the period from January 1, 2024, to December 31, 2026, for the sale of various goods[7]. - The company has established a financial services framework agreement with Weihai Commercial Bank, effective from August 31, 2021, covering the period until 2023[3]. - The company has established a comprehensive procurement framework agreement with Shandong Highway Group, effective from July 27, 2022, until December 31, 2023, for the procurement of various goods[15]. Operational Developments - The company is involved in the management and collection of tolls for the Deshang and Xinnan Highways, excluding advertising and service facilities[12]. - The company is involved in the construction, maintenance, operation, and management of the Jinan to Heze section of the Jinan-Heze Expressway, which is approximately 153.6 kilometers long[17]. - The company is focused on expanding its operations in the expressway sector, particularly in Shandong Province[28]. - The company aims to complete the dual eight-lane operation of the Jizhao Expressway in 2024, enhancing service efficiency[44]. - The company plans to deepen reforms and optimize structure to drive quality growth in operating performance[44]. Corporate Governance - The board of directors consists of 15 members, including 3 executive directors and 5 independent non-executive directors, complying with the listing rules[80][81]. - The company has established four specialized committees within the board, including the audit committee and the strategic committee, to oversee specific aspects of its operations[78]. - The board has adhered to the corporate governance code, ensuring that independent non-executive directors make up at least one-third of the board[81]. - The company ensures that all directors can seek independent professional advice at the company's expense when necessary[86]. - The board meetings require the presence of more than half of the directors to be valid, with provisions for remote participation[85]. Strategic Initiatives - The company is committed to green innovation and digital transformation to establish a new benchmark for low-carbon development in the industry[44]. - The company aims to implement a diversified development strategy, focusing on smart transportation and technological innovation to drive high-quality growth[77]. - The company is actively seeking suitable road-related asset acquisition or investment targets[176]. - The company emphasizes its commitment to providing safe, efficient, and economical transportation services while promoting regional integration and sustainable development[177]. - The company is committed to enhancing low-carbon and environmental technology applications, aiming to improve management efficiency and reduce operational costs[177]. Risk Management - The company acknowledges the sensitivity of the highway industry to macroeconomic changes, which directly impacts traffic volume and operational performance[173]. - The company has implemented preventive maintenance measures and coordinated with relevant departments to mitigate management risks from natural disasters and extreme weather[175]. - The company’s risk management and internal control systems will be reviewed annually[93]. - Continuous monitoring of risks is conducted, with regular updates to the risk management and internal control procedures[118]. Employee and Talent Management - The company employed a total of 696 employees as of December 31, 2023, with total employee compensation expenses amounting to approximately RMB 203,667 thousand, up from RMB 172,481 thousand in the previous year[59]. - The company emphasizes the cultivation of intellectual talent to support its goal of becoming a first-class international and modern enterprise[77]. - The company has a total of 696 employees, with 261 female employees, representing approximately 37.5% of the workforce[103]. - The management team includes experienced professionals with backgrounds in engineering, finance, and law, enhancing the company's operational capabilities[156]. Community Engagement and Social Responsibility - The company is committed to fulfilling social responsibilities and enhancing value creation capabilities for society, shareholders, and employees[42]. - The company has made charitable donations amounting to approximately RMB 20,000 in the current year[178]. - The management team is actively involved in community engagement and corporate social responsibility initiatives[156].

Revenue Performance - Revenue increased by approximately 91.34% to approximately RMB 5,608,829 thousand[2] - Total revenue for the year ended December 31, 2023, was RMB 5,608,829 thousand, a significant increase of 91.4% compared to RMB 2,931,294 thousand in 2022[16] - Customer contract revenue reached RMB 5,606,528 thousand, up from RMB 2,926,631 thousand in the previous year, reflecting a growth of 91.1%[16] - Revenue from highway services amounted to RMB 1,144,716 thousand, while construction and other services contributed RMB 4,461,812 thousand, making up the total revenue[17] - Revenue from highway operations recognized as toll income when payment is received or due, with total expected revenue of RMB 13,076,391 thousand for 2023, down from RMB 17,580,334 thousand in 2022[23] - The total revenue from toll road receivables increased to RMB 463,124,000 in 2023 from RMB 416,943,000 in 2022, representing a growth of approximately 11%[55] Profitability - Profit attributable to owners of the parent company decreased by approximately 32.80% to approximately RMB 525,260 thousand[2] - Pre-tax profit was RMB 713,591 thousand, compared to RMB 1,041,521 thousand in the previous year[4] - The net profit attributable to the parent company was approximately RMB 525,260 thousand, a decrease of about 32.80% from last year's RMB 781,691 thousand[76] - The gross profit margin for the reporting period was approximately 14.48%, a decrease of about 25.07 percentage points from last year's margin of approximately 39.55%[69] Dividends - Proposed final dividend for the year 2023 is RMB 0.15 per share (tax included)[2] - Proposed final dividend of RMB 0.150 per share for 2023, compared to RMB 0.180 per share in 2022, totaling RMB 300,000 thousand[29] - The board of directors proposed a final cash dividend of RMB 0.15 per share, totaling RMB 300,000,000 for the fiscal year ending December 31, 2023[98] - The dividend distribution plan will be submitted for approval at the 2023 Annual General Meeting scheduled for June 26, 2024[98] - A 10% withholding tax will be applied to dividends distributed to non-resident H-share shareholders[99] Assets and Liabilities - Total non-current assets increased to RMB 12,601,803 thousand from RMB 7,999,265 thousand[5] - Total current assets decreased to RMB 1,905,229 thousand from RMB 2,413,297 thousand[6] - Net assets increased to RMB 6,052,016 thousand from RMB 5,727,990 thousand[6] - Total liabilities increased significantly, with non-current liabilities rising to RMB 6,732,479 thousand from RMB 3,576,302 thousand[6] - The total amount of receivables, net of impairment, increased from RMB 419,143 thousand in 2022 to RMB 491,916 thousand in 2023, representing a growth of 17.3%[52] Financial Reporting and Standards - The company adopted new and revised Hong Kong Financial Reporting Standards, including amendments to HKAS 1, HKAS 8, and HKAS 12, with no significant impact on the financial statements[9] - The financial statements reflect the consistent accounting policies applied across subsidiaries, with performance consolidated from the date of control acquisition[8] - The company is currently assessing the impact of new Hong Kong Financial Reporting Standards, which are expected to have no significant effect on financial statements[13] - The company has disclosed important accounting policy information in accordance with the revised standards, ensuring transparency for financial statement users[9] Operational Highlights - The company actively expanded its business, including highway construction and maintenance, and recorded engineering service income during the reporting period[65] - The company is progressing with the Jihe Expressway expansion project, which is expected to contribute to future revenue growth[65] - The project aims to achieve completion and open to traffic by the end of 2024, with a goal of becoming the first zero-carbon highway expansion project in the country[90] - The company is focused on expanding its expressway business through various projects, including the Jihe Expressway expansion[103] Taxation - Total tax expense for the year was RMB 179,688 thousand, down from RMB 261,465 thousand in 2022, with a tax rate of 25% applied to taxable profits in mainland China[28] - The company reported a tax loss of RMB 3,097 thousand in Hong Kong for 2023, compared to RMB 443 thousand in 2022, indicating a substantial increase in tax losses[45] Investments and Joint Ventures - Investment income from joint ventures for the year was RMB 13,951,000, significantly increasing from RMB 1,715,000 in 2022[38] - The company has made investments totaling RMB 400,000 thousand in urban renewal projects, with a fixed return rate of 10%[51] Governance and Compliance - The company has adopted all applicable provisions of the Corporate Governance Code and has complied with relevant regulations throughout the year[95] - The board of directors includes both executive and independent non-executive members, ensuring diverse governance[104]

Core Viewpoint - Qilu Highway (01576) announced that its shareholders, Shandong Highway Co., Ltd. and State Power Engineering Corporation, intend to convert a total of 900 million domestic unlisted shares into overseas listed shares (H-shares) for trading on the Hong Kong Stock Exchange [1] Group 1 - The company received notifications from its shareholders regarding the conversion of 779 million shares and 122 million shares, respectively, into H-shares [1] - The total number of shares to be converted represents all domestic unlisted shares of the company [1] - As of the date of the announcement, the company has not yet submitted an application for H-share full circulation to the China Securities Regulatory Commission [1]

Financial Performance - The company reported a total revenue of RMB 1.2 billion for the first half of 2023, representing a year-on-year increase of 15%[1]. - The net profit for the first half of 2023 was RMB 450 million, reflecting a growth of 20% year-on-year[1]. - The company's operating revenue for the reporting period was approximately RMB 1,656,842 thousand, an increase of about 67.66% compared to RMB 988,210 thousand in the same period last year[25]. - Total revenue for the reporting period was approximately RMB 1,656,842 thousand, representing an increase of about 67.66% year-on-year[41]. - The company recorded a net profit attributable to shareholders of approximately RMB 300,473 thousand, a decrease of about 25.83% compared to RMB 405,105 thousand in the same period last year[33]. - The company reported a profit for the period of RMB 298,345 thousand, a decrease of 26.4% from RMB 405,105 thousand in the previous year[70]. - Basic earnings per share for the period was RMB 0.15, down from RMB 0.20 in the same period last year, representing a decrease of 25%[70]. - The company declared a dividend of RMB 360,000 thousand during the period, reflecting a commitment to return value to shareholders[73]. Revenue Sources - Toll revenue from the Jihai Expressway was approximately RMB 347,572 thousand, a decrease of about 38.12% from RMB 561,726 thousand in the previous year, while toll revenue from the Deshang and Xinnan Expressways increased by approximately 17.10% to RMB 275,501 thousand[25]. - Engineering construction and sales of industrial products generated revenue of approximately RMB 1,032,166 thousand, a significant increase of about 447.16% from RMB 188,641 thousand in the previous year[25]. - The highway segment generated revenue of RMB 623,073 thousand, while the construction and other segment contributed RMB 1,033,769 thousand, with inter-segment sales of RMB 480,633 thousand[84]. - Customer contract revenue reached RMB 1,655,538 thousand for the six months ended June 30, 2023, compared to RMB 985,957 thousand in the same period of 2022, indicating a growth of about 77.0%[86]. Traffic and Operations - The average daily traffic volume on the expressways increased by 10% compared to the same period last year, reaching approximately 150,000 vehicles per day[1]. - The average daily traffic on the Jihai Expressway decreased from approximately 70,700 vehicles to about 48,300 vehicles, while traffic on the Deshang Expressway increased from approximately 46,300 vehicles to about 58,700 vehicles[25]. - The average daily traffic volume for Jihua Expressway during the reporting period was approximately 48,265 vehicles[42]. - Daily traffic volume on the company's highways was significantly impacted by the closure of the Jihe Expressway for reconstruction, leading to a substantial decrease in toll revenue[44]. Strategic Initiatives - The company plans to expand its highway network by an additional 200 kilometers by the end of 2025, focusing on key economic zones in Shandong Province[1]. - The company is investing RMB 300 million in new technology for electronic toll collection systems to enhance operational efficiency[1]. - The company has initiated a strategic partnership with local governments to facilitate infrastructure development and improve service quality[1]. - The company is exploring potential acquisition opportunities to enhance its market position and expand its service offerings[1]. - The company is actively promoting the Jihai Expressway expansion project, which is expected to contribute to future revenue growth[24]. - The company continues to explore business expansion through construction projects and sales of industrial products, enhancing its operational capabilities[24]. Financial Position - The company's total loan amount as of June 30, 2023, was approximately RMB 4,689,383 thousand, up from RMB 3,765,104 thousand as of December 31, 2022[34]. - The capital to debt ratio as of June 30, 2023, was approximately 42.08%, compared to 35.49% as of December 31, 2022[34]. - Total liabilities increased to RMB 6,965,644 thousand as of June 30, 2023, compared to RMB 4,718,572 thousand at the end of 2022, indicating a rise of 47.7%[72]. - The company's net assets attributable to equity holders of the parent increased to RMB 5,818,543 thousand from RMB 5,727,990 thousand, a growth of 1.6%[72]. Shareholder Information - As of June 30, 2023, the total issued share capital of the company was RMB 2 billion, divided into 2 billion shares, with H shares accounting for 55% and domestic shares for 45%[53][54]. - Major shareholder Shandong Express holds 778.5 million domestic shares, representing 86.5% of the domestic share category and 38.93% of the total issued share capital[56]. - China COSCO Shipping Group holds 600 million H shares, accounting for 54.55% of the H share category and 30% of the total issued share capital[56]. - The company reported a significant shareholder structure, with China Energy Group holding approximately 13.50% of the total issued shares, equating to 121,500,000 shares[57]. Corporate Governance - The company has maintained a high level of corporate governance, adhering to all applicable provisions of the Corporate Governance Code[64]. - The audit committee reviewed the unaudited interim financial report for the six months ending June 30, 2023[66]. - The company confirmed compliance with the standards set forth in the Standard Code regarding securities transactions by directors and supervisors during the reporting period[65]. - The company has adopted a set of conduct guidelines that meet or exceed the standards of the Standard Code since its listing[65]. Related Party Transactions - The company engaged in various transactions with subsidiaries, including RMB 1,626 thousand for purchases from Shandong Highway Materials Digital Technology Co., Ltd.[105]. - The company reported a total of RMB 103,013 thousand in transactions with related parties, including RMB 7 thousand in bank interest income from Weihai Commercial Bank[105]. - Engineering and supervision fees from related parties amounted to RMB 291,510,000 for the six months ended June 30, 2023, compared to RMB 53,056,000 for the same period in 2022, indicating a significant increase[106]. - The company continues to maintain a robust relationship with its related parties, which is crucial for its operational strategy and financial performance[103].

Company Overview - Qilu Expressway Company Limited reported its unaudited interim results for the six months ended June 30, 2023[1]. - The company operates and manages the Jinan to Heze Expressway, which is approximately 153.6 kilometers long[14]. - The company is a subsidiary of Shandong Expressway Group, which holds approximately 38.93% of its issued shares[16]. - The report indicates that the company is involved in the construction and management of expressways in Shandong Province, as part of a broader provincial highway network plan[14]. - The company plans to expand its operations in line with the Shandong Province's long-term highway network plan, which aims to reach a total length of 9,000 kilometers by 2035[14]. - The company has established several wholly-owned subsidiaries to support its operations and investments in expressway management[16]. Financial Performance - The company's operating revenue for the reporting period was approximately RMB 1,656,842 thousand, an increase of about 67.66% compared to RMB 988,210 thousand in the same period last year[20]. - Toll revenue from the Jizhao Expressway was approximately RMB 347,572 thousand, a decrease of about 38.12% from RMB 561,726 thousand in the previous year, while toll revenue from the Deshang and Xinnan Expressways was approximately RMB 275,501 thousand, an increase of about 17.10% from RMB 235,261 thousand[20]. - Revenue from engineering construction and sales of industrial products was approximately RMB 1,032,166 thousand, an increase of about 447.16% from RMB 188,641 thousand in the previous year, primarily due to the Jizhao Expressway expansion project[20]. - The overall traffic volume decline was significantly impacted by the construction of the Jizhao Expressway expansion project, leading to partial road closures and reduced toll revenue[20]. - The group achieved a total revenue of approximately RMB 1,656,842 thousand, representing a year-on-year increase of about 67.66%[36]. - Toll revenue was approximately RMB 623,073 thousand, showing a year-on-year decline of about 21.82%[36]. - The group reported a gross profit of approximately RMB 450,881 thousand, down about 24.89% year-on-year[36]. - The net profit attributable to the owners of the parent company was approximately RMB 300,473 thousand, a decrease of about 25.83% from RMB 405,105 thousand in the same period last year[28]. Operational Efficiency - The report emphasizes the importance of electronic toll collection (ETC) systems in enhancing operational efficiency[13]. - The company continues to expand its business through construction and engineering services, alongside toll collection from highways[19]. - The company is focused on enhancing its operational efficiency and exploring new revenue streams through infrastructure projects and service offerings[19]. - The company aims to enhance revenue generation by improving road conditions, operational efficiency, and developing personalized high-value services[44]. Investments and Projects - The company actively promoted the Jizhao Expressway expansion project, with related construction work progressing in an orderly manner[19]. - The total investment for the Jihe Expressway expansion project is estimated at RMB 18.6 billion, covering a length of 152.7 kilometers, expanding from a four-lane to an eight-lane highway[43]. - In the first half of 2023, the company completed an investment of approximately RMB 2.752 billion, accounting for 54.49% of the annual target[43]. - The company has established various purchase agreements for consulting and engineering services, with capital commitments including approximately RMB 69,032,000 for consulting services and RMB 5,479,000 for engineering supervision[102]. Corporate Governance - The company is committed to maintaining compliance with the Hong Kong Stock Exchange's listing rules and corporate governance codes[13]. - The interim report will be sent to shareholders and made available on the company's website and the Hong Kong Stock Exchange's disclosure platform[1]. - The company aims to maintain a high level of corporate governance to protect shareholder interests and enhance corporate value[58]. - The overall governance structure has been reinforced with the appointment of new directors and independent non-executive directors[55]. Shareholder Information - The company did not declare any interim dividend for the six-month period ending June 30, 2023[60]. - As of June 30, 2023, the total issued share capital of the company is RMB 2 billion, consisting of 2 billion shares, with H shares accounting for 55%[47][48]. - Shandong Expressway holds 86.50% of the total issued shares in the same class, representing approximately 38.93% of the total issued share capital of the company[50]. - The company has a significant concentration of shareholding, with major shareholders controlling substantial percentages of the issued share capital[50][51]. Risk Management - The company emphasizes risk management and safety production, focusing on risk identification, assessment, and preventive measures[45]. - The company remains committed to transparency and compliance with securities regulations regarding shareholder interests[54]. Related Party Transactions - Sales to related parties amounted to RMB 103,013 thousand for the six months ended June 30, 2023, compared to RMB 3,587 thousand for the same period in 2022[98]. - The company reported sales of goods to Shandong Expressway Engineering Construction Group Co., Ltd. amounting to RMB 48,607 thousand for the first half of 2023[98]. - The company provided services to Shandong Dongfang Road and Bridge Construction Co., Ltd. for RMB 666 thousand during the reporting period[99]. - The company recorded a purchase of services from Shandong Honglin Engineering Technology Co., Ltd. for RMB 408 thousand[99]. Financial Position - Total non-current assets increased to RMB 9,991,039 thousand as of June 30, 2023, up from RMB 7,999,265 thousand at the end of 2022[65]. - Total current assets decreased to RMB 1,793,148 thousand from RMB 2,413,297 thousand at the end of 2022, reflecting a decline of 25.7%[66]. - Total liabilities increased to RMB 5,965,644 thousand as of June 30, 2023, compared to RMB 4,684,572 thousand at the end of 2022[66]. - The company reported a fair value change for interest-bearing bank and other borrowings as not significant due to its own performance risk as of June 30, 2023[112].

Financial Performance - The total revenue for 2022 was reported at RMB 1.2 billion, representing a year-on-year increase of 15%[1]. - The company's operating revenue for the reporting period was approximately RMB 2,931,294 thousand, an increase of about 46.91% compared to RMB 1,995,309 thousand in the previous year[43]. - The group's net profit attributable to the parent company was approximately RMB 781,691 thousand, a decrease of about 8.41% from last year's RMB 853,434 thousand, primarily due to a decline in toll revenue[55]. - The group achieved a pre-tax profit of approximately RMB 1,041,521 thousand, a decrease of about 8.78% compared to the previous year, with a net profit of RMB 780,056 thousand[66]. - The group's gross profit was approximately RMB 1,159,387 thousand, a decrease of about 12.41% from last year's RMB 1,323,681 thousand, resulting in a gross margin of approximately 39.55%, down about 26.79 percentage points year-on-year[47]. Revenue Sources - Revenue from highway operations was approximately RMB 1,559,161 thousand, a decrease of about 12.06% from RMB 1,772,904 thousand in the previous year[43]. - Toll revenue from Jizhao Expressway was approximately RMB 1,089,928 thousand, down about 12.60% from RMB 1,247,118 thousand in the previous year[43]. - The group's revenue from renovation and construction projects was approximately RMB 1,091,834 thousand, an increase of about 504.84% compared to last year's RMB 180,516 thousand[46]. - Revenue from industrial product sales reached approximately RMB 266,993 thousand, up about 665.51% from last year's RMB 34,878 thousand, primarily due to active trade operations by Shandong Shunguang Industrial[46]. Strategic Initiatives - The company plans to expand its highway operations by acquiring additional toll rights for the DeShang and XinNan highways, expected to enhance revenue by 20% in the next fiscal year[1]. - New service agreements with Shandong Expressway Group are projected to generate an additional RMB 300 million in revenue by the end of 2023[6]. - The company is exploring potential mergers and acquisitions to further expand its market presence, targeting a 25% increase in market share by 2025[1]. - The company is focused on expanding its market presence through strategic partnerships and infrastructure development[18]. Operational Efficiency - The company is investing RMB 50 million in new technology for electronic toll collection systems to improve efficiency and user experience[12]. - The company plans to enhance its highway operation capabilities and optimize service measures to meet diverse customer needs, focusing on the "Highway+" model[34]. - The company aims to enhance its core competitiveness and become a leading comprehensive service provider for highways[37]. - The company is committed to implementing differentiated charging measures to enhance brand loyalty and increase traffic flow[34]. Sustainability and Innovation - The management highlighted a focus on environmental sustainability, with plans to implement green technologies in highway maintenance, expected to reduce operational costs by 15%[1]. - The company is actively exploring the construction of smart toll stations to improve digital operation platforms[34]. - The management team emphasized the importance of sustainability initiatives, aiming for a 30% reduction in carbon emissions by 2025[188]. - The company is focused on enhancing innovation capabilities by increasing research and application of new products, technologies, and processes[36]. Corporate Governance - The board of directors is committed to maintaining high standards of corporate governance, including the review and monitoring of training and professional development for directors and senior management[85]. - The board has established four specialized committees: Audit Committee, Remuneration and Assessment Committee, Nomination Committee, and Strategy Committee to oversee specific aspects of the company's affairs[92]. - The company has adopted all applicable provisions of the corporate governance code, ensuring compliance with regulations regarding the appointment of independent non-executive directors[86][96]. - The board consists of 15 members, including 3 executive directors, 7 non-executive directors, and 5 independent non-executive directors, with independent directors making up one-third of the board[94][96]. Investor Relations - The company emphasizes the importance of maintaining transparency and timely communication with shareholders and investors regarding significant developments[158]. - The company has established an Investor Relations Management System to enhance communication and understanding between the company and its investors[162]. - The company actively engages with investors through various channels, including investor hotlines, site visits, and roadshows[164]. - The company encourages shareholders to propose temporary resolutions at shareholder meetings if they hold more than 3% of the shares[159]. Human Resources - The company has a total of 693 employees, with 263 female employees, accounting for approximately 37% of the workforce[125]. - The group employed a total of 693 employees as of December 31, 2022, with total employee compensation expenses of approximately RMB 172,481 thousand, up from RMB 159,482 thousand last year[59]. - The company has recruited 28 new employees during the reporting period, with an equal gender distribution and 26 of them being under 36 years old[125]. - The company emphasizes the cultivation of knowledge-intensive professional talent to support its strategic goals[90].