Revenue and Profitability - Revenue increased by approximately 46.91% to approximately RMB 2,931,294 thousand compared to the previous year[2] - Profit attributable to owners of the parent decreased by approximately 8.41% to RMB 781,691 thousand compared to the previous year[2] - Earnings per share for the year was approximately RMB 0.39[2] - Proposed final dividend for the year 2022 is RMB 0.18 per share (tax included)[2] - Total customer contract revenue for 2022 was RMB 2,926,631,000, an increase of 47% from RMB 1,990,532,000 in 2021[19] - Revenue from highway operations decreased to RMB 1,559,161,000 in 2022, down 12% from RMB 1,772,904,000 in 2021[18] - Construction business revenue surged to RMB 1,091,834,000 in 2022, compared to RMB 180,516,000 in 2021, reflecting a growth of 505%[19] - Sales of industrial products reached RMB 266,993,000 in 2022, a significant increase from RMB 34,878,000 in 2021[18] - Total revenue from other businesses was RMB 8,643,000 in 2022, up from RMB 2,234,000 in 2021[18] - The company confirmed revenue of RMB 1,834,797,000 at a point in time and RMB 1,091,834,000 over a period in 2022[19] Financial Position - Total current assets increased significantly to RMB 2,413,297 thousand from RMB 828,150 thousand in 2021[5] - Total non-current assets rose to RMB 7,999,265 thousand from RMB 5,804,736 thousand in 2021[6] - Total liabilities increased to RMB 4,684,572 thousand from RMB 3,240,632 thousand in 2021[7] - Net assets increased to RMB 5,727,990 thousand from RMB 3,392,254 thousand in 2021[7] - The total accounts receivable net amount for 2022 is RMB 416,943,000, significantly up from RMB 132,533,000 in 2021[54] - The impairment loss for accounts receivable increased to RMB 14,928,000 in 2022 from RMB 6,125,000 in 2021[55] - The contract assets from construction services rose to RMB 73,932,000 in 2022, compared to RMB 60,821,000 in 2021[57] - The prepayments and other receivables total RMB 807,302,000 in 2022, a significant increase from RMB 47,801,000 in 2021[53] - The company’s deferred tax assets totaled RMB 43,830,000 as of December 31, 2022, reflecting a decrease from the previous year[48] Accounting Standards and Policies - The group adopted revised Hong Kong Financial Reporting Standards for the first time this year, which did not impact the financial position or performance due to no business combinations occurring during the year[11] - The revision of Hong Kong Accounting Standard No. 16 prohibits entities from deducting any income generated during the process of getting property, plant, and equipment to the necessary location and condition from the cost of those assets[12] - The group has not applied any new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective, indicating a stable accounting policy environment[13] - The group has consistently applied accounting policies across subsidiaries for the same reporting period, ensuring comparability in financial reporting[10] Operational Performance - The company is currently assessing the impact of new accounting standards on its financial statements, with no significant effects anticipated[15] - The company operates a single reportable segment, with all operations located in mainland China[16] - Revenue from highway operations recognized as toll income when vehicles pass through and payment is received or entitled[22] - The company is focusing on optimizing highway operation capabilities and enhancing the Qilu Expressway brand through diversified customer needs and differentiated charging measures[70] - The company aims to strengthen its capital operation and industrial operation platforms, with a focus on expanding external markets and sustainable development[70] - The company is actively promoting the Jizhao Highway expansion project, with significant progress in construction and quality management[71] - The company has implemented a series of reforms and management improvements to enhance operational efficiency and support high-quality development[71] - The company is committed to safety management, establishing a comprehensive risk prevention system to ensure no safety incidents occur[71] Investments and Financial Assets - The total value of structured bank deposits reached RMB 1,004,873,000 in 2022, indicating a new financial asset classification due to the nature of cash flows[61] - The company reported a significant increase in other payables, totaling RMB 332,498,000 in 2022, compared to RMB 200,906,000 in 2021, reflecting a rise in various liabilities[64] - The company holds approximately 38.93% of the issued shares of Shandong Expressway Group, which is a current controlling shareholder[116] - The company is focused on research and development of new technologies to enhance its service offerings and operational capabilities[116] Dividend and Shareholder Information - The board proposed a final cash dividend of RMB 0.18 per share, totaling RMB 360 million for the fiscal year ending December 31, 2022[111] - The dividend distribution plan will be submitted for approval at the 2022 Annual General Meeting scheduled for June 27, 2023[111] - The company will suspend share transfer registration from May 26, 2023, to June 27, 2023, to determine eligible shareholders for the AGM[110] - The dividend is set to be paid on August 31, 2023, subject to any changes announced in accordance with listing rules[111] - The company will withhold a 10% corporate income tax on dividends paid to non-resident shareholders[112] - The company will not withhold any corporate income tax for resident shareholders who provide legal opinions confirming their status[112] - The company will not withhold individual income tax on dividends paid to foreign individual shareholders[112] Market Trends and Future Outlook - The company has identified opportunities for growth in the transportation industry, driven by trends towards value-added, personalized, and high-value services, as well as the "dual carbon" strategy promoting green materials and technologies[67] - The company aims to enhance profitability and core competitiveness while focusing on high-quality development in 2023[104] - The first and second phases of the Jihe Expressway expansion project will involve traffic control measures from February 16, 2023, to December 31, 2023, which may impact traffic volume and toll revenue[105] - The company is exploring new strategies for market expansion and potential mergers and acquisitions to strengthen its market position[116]

Financial Performance - Qilu Expressway Company reported a total revenue of RMB 1.2 billion for the first half of 2022, representing a year-on-year increase of 15%[6]. - The company's net profit for the same period was RMB 450 million, reflecting a growth of 10% compared to the previous year[6]. - The company's operating revenue for the reporting period was approximately RMB 988.21 million, an increase of about 8.44% compared to RMB 911.30 million in the same period last year[18]. - The group achieved total revenue of approximately RMB 988,210 thousand, representing an increase of about 8.44% year-on-year[33]. - Revenue for the six months ended June 30, 2022, was RMB 988,210 thousand, an increase from RMB 911,299 thousand in the same period of 2021, representing a growth of approximately 8.5%[67]. - Gross profit for the same period was RMB 600,255 thousand, down from RMB 638,593 thousand in 2021, indicating a decrease of about 6.0%[67]. - Profit before tax for the six months was RMB 540,778 thousand, slightly down from RMB 550,266 thousand in the previous year, reflecting a decrease of approximately 1.4%[67]. - The profit attributable to the owners of the parent company was approximately RMB 405.11 million, a slight decrease of about 0.69% from RMB 407.91 million in the same period last year[26]. - The company reported a net profit of RMB 405,105 thousand for the six months ended June 30, 2022, compared to RMB 407,905 thousand for the same period in 2021, indicating a slight decrease of 0.4%[69]. Traffic and Operations - User data indicated an increase in daily traffic volume on the expressways, averaging 120,000 vehicles per day, up 8% from the previous year[6]. - The average daily traffic volume on the Jinan-Heze Expressway decreased from approximately 74,000 vehicles to about 70,700 vehicles, and the Dezhou-Shangqiu Expressway saw a drop from about 56,700 vehicles to approximately 46,300 vehicles[18]. - The average daily traffic for Jike Expressway was approximately 70,690 vehicles, while for Deshang Expressway and Xinnan Expressway, it was approximately 46,271 and 8,913 vehicles, respectively[34][35]. - The average daily traffic on the company's highways was impacted by severe pandemic measures in certain regions during the first half of 2022, leading to a significant decrease in traffic volume[36]. - The company faced challenges in traffic volume due to rising fuel prices and highway overload management, which affected large truck traffic and related revenue[36]. Revenue Sources - Toll revenue from the Jinan-Heze Expressway was approximately RMB 561.73 million, a decrease of about 8.97% from RMB 617.08 million year-on-year, while revenue from the Dezhou-Shangqiu and Xin'an Expressways was approximately RMB 235.26 million, down about 12.98% from RMB 270.37 million[18]. - The company recorded a significant increase in construction revenue related to the Jinan-Heze Expressway expansion, amounting to approximately RMB 177.61 million, up about 779.75% from RMB 21.01 million year-on-year[18]. - The company reported a total revenue of approximately RMB 184.845 million from construction and expansion projects, including RMB 177.608 million from highway expansion and RMB 7.237 million from engineering services[39]. - The company engaged in outdoor advertising and highway engineering contracting services, diversifying its revenue sources beyond toll collection[73]. Investments and Future Plans - The company plans to expand its highway network by an additional 200 kilometers by 2025, in line with the Shandong Province's long-term highway network plan[6]. - Qilu Expressway is investing RMB 300 million in new technology for electronic toll collection systems to enhance operational efficiency[6]. - Future guidance estimates a revenue growth of 12% for the second half of 2022, driven by increased traffic and toll adjustments[6]. - The company is focusing on the development of new road materials through its joint venture, Jinan Xinyue, aiming to improve construction quality and reduce costs[6]. - The company plans to enhance operational management and accelerate the implementation of the Jihe Expressway expansion project in the second half of 2022[43]. - The company aims to cultivate new profit growth points and actively seek high-quality investment projects to become a leading comprehensive service provider in expressway operations[43]. Financial Position - Cash and cash equivalents totaled approximately RMB 987,615 thousand as of June 30, 2022, compared to RMB 587,477 thousand as of December 31, 2021[27]. - The total loan amount as of June 30, 2022, was approximately RMB 2,704,123 thousand, an increase from RMB 2,575,958 thousand as of December 31, 2021[27]. - The capital to debt ratio was approximately 24.70% as of June 30, 2022, down from 36.96% as of December 31, 2021[27]. - The company’s total equity increased to RMB 5,232,987 thousand from RMB 3,392,254 thousand, representing a growth of approximately 54.3%[68]. - The company’s total current liabilities rose to RMB 1,205,146 thousand from RMB 900,279 thousand, an increase of approximately 33.8%[68]. - The company’s total liabilities increased to RMB 3,701,427 thousand from RMB 3,240,632 thousand, which is an increase of approximately 14.2%[68]. Shareholder Structure - The company has issued a total share capital of RMB 2,000 million as of June 30, 2022, consisting of 2 billion shares[50]. - The shareholding structure includes 900 million domestic shares (45%) and 1.1 billion H shares (55%) as of June 30, 2022[51]. - Shandong Expressway holds 86.50% of the shares in the same class, representing approximately 38.93% of the total issued share capital of the company[53]. - China Merchants Highway Network Technology Holdings Limited owns 15.81% of the shares in the same class, representing approximately 8.70% of the total issued share capital of the company[54]. - CITIC Prudential Life Insurance Company Limited holds 9.43% of the shares in the same class, representing approximately 5.19% of the total issued share capital of the company[54]. - The company has a strong shareholder base with multiple entities holding substantial percentages of shares, indicating confidence in the company's performance[56]. Cost Management - The company has implemented cost control measures that are projected to reduce operational expenses by 5% in the upcoming fiscal year[6]. - Administrative expenses for the reporting period were approximately RMB 27.90 million, a decrease of about 6.14% from RMB 29.73 million in the previous year[22]. - The financial costs for the reporting period were approximately RMB 52.30 million, a decrease of about 23.59% from RMB 68.44 million year-on-year, mainly due to the repayment of bank loans[24]. Compliance and Governance - The company has adopted revised Hong Kong Financial Reporting Standards, which did not have a significant impact on its financial position or performance during the reporting period[78]. - The company’s financial reporting is based on the Hong Kong Accounting Standards, ensuring compliance with local regulations and standards[74]. - The report indicates a healthy distribution of shareholding among various institutional investors, enhancing corporate governance[54]. Miscellaneous - The company did not recommend any interim dividend for the six-month period ending June 30, 2022[64]. - There were no significant litigation or arbitration matters involving the company during the reporting period[62]. - The company has not reported any significant changes in accounting policies that would affect its financial results for the period[75]. - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[58].

Financial Performance - The total revenue for the year 2018 was RMB 1.2 billion, representing a year-on-year increase of 15%[2]. - The company reported a net profit of RMB 300 million for 2018, which is a 10% increase compared to the previous year[2]. - The company's revenue for the year was approximately RMB 921,735 thousand, a decrease of about 11.80% compared to RMB 1,045,060 thousand in the previous year[19]. - Toll revenue from highway users was approximately RMB 917,795 thousand, down 11.57% from RMB 1,037,932 thousand in the previous year, primarily due to a decrease in truck traffic[19]. - The total comprehensive income for the year was RMB 408,505 thousand, down from RMB 528,152 thousand in the previous year, reflecting a decrease of approximately 22.67%[17]. - The profit from continuing operations for the year was approximately RMB 408,505 thousand, down about 18.11% from RMB 498,872 thousand in 2017[31]. - The company's net profit attributable to owners decreased by approximately RMB 119,647 thousand to about RMB 408,505 thousand, a decline of about 22.65%[32]. - Average daily toll revenue decreased from approximately RMB 2.84 million in 2017 to RMB 2.51 million in 2018, a decline of about 11.62%[24]. - Average toll revenue per vehicle fell from RMB 53 in 2017 to RMB 48 in 2018, a decrease of approximately 9.43%[24]. Traffic and Operations - User traffic on the Jinan to Heze Expressway increased by 12% in 2018, reaching 15 million vehicles[2]. - During the reporting period, the company experienced a 1.58% decrease in vehicle traffic to approximately 19.29 million vehicles, primarily due to a 14.44% reduction in truck traffic, offset by a 6.23% increase in bus traffic[13]. - The total vehicle traffic for the year was 19,289,016, a slight decrease from 19,600,215 in the previous year, with average daily traffic dropping from 53,699 to 52,847[21]. - The total vehicle traffic on the Jinan-Heze Expressway decreased from approximately 19.60 million in 2017 to about 19.29 million in 2018, a year-on-year decline of about 1.58%[22]. - The average daily traffic volume dropped from approximately 53,699 vehicles in 2017 to about 52,847 vehicles in 2018, a decrease of about 1.59%[22]. Strategic Initiatives - The company plans to upgrade the interchange project connecting to Changqing University Science Park, enhancing operational efficiency[4]. - The company is focusing on expanding its advertising business along the expressway, which is expected to contribute an additional RMB 50 million in revenue[4]. - The company aims to maintain a compound annual growth rate (CAGR) of 10% in revenue over the next five years[2]. - The company is exploring potential mergers and acquisitions to enhance its market position and operational capabilities[2]. - The company aims to actively expand its business through mergers and acquisitions, leveraging both domestic and international markets[15]. - The company plans to strengthen its position as an advanced highway operator in Shandong Province, focusing on improving operational efficiency and user experience[15]. Financial Position and Governance - The company’s cash and cash equivalents at the end of the year were RMB 1,006,860 thousand, an increase from RMB 415,835 thousand in the previous year[17]. - The company’s debt-to-equity ratio improved to 14.18% from 29.24% in the previous year, indicating a stronger financial position[17]. - The debt-to-asset ratio decreased to 18.87% from 31.91% in the previous year, a reduction of 13.04 percentage points, mainly due to increased equity from the listing and repayment of certain bank loans[37]. - The company has adopted all applicable provisions of the corporate governance code since its listing, ensuring high standards of corporate governance[56]. - The board is responsible for executing shareholder resolutions and determining the company's operational plans and investment proposals[57]. Risk Management - The company faces significant policy risks related to toll pricing, as it does not have autonomous pricing authority and must seek approval from government departments for any adjustments[47]. - The company is sensitive to macroeconomic changes, which directly impact road transport demand and consequently affect traffic flow and operational performance[48]. - The company plans to enhance communication with government departments to mitigate risks associated with policy changes and maintain investor interests[49]. - The company has implemented a comprehensive risk management system to enhance risk prevention capabilities[54]. Corporate Governance - As of December 31, 2018, the board consists of 15 members, including 2 executive directors and 5 independent non-executive directors, complying with listing rules[59]. - The company ensures that all directors have access to relevant information and can seek independent professional advice when necessary[66]. - The board of directors is composed of both executive and independent non-executive directors, ensuring a diverse governance structure[69]. - The company maintains a high level of corporate governance with established committees for audit, remuneration, nomination, and strategy[69]. - The independent non-executive directors have confirmed their independence in writing, complying with the relevant regulations[80]. Shareholder Information - The company will hold its 2018 annual general meeting on June 10, 2019, with a suspension of share transfer registration from May 11 to June 10, 2019[136]. - 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[141]. - As of December 31, 2018, the total undistributed profits available for distribution to shareholders amounted to approximately RMB 514,163 thousand[146]. - The company will distribute dividends in cash or stock, subject to board discretion and shareholder approval[140]. Environmental, Social, and Governance (ESG) - The company has published its first Environmental, Social, and Governance (ESG) report, highlighting efforts and contributions in these areas[197]. - The ESG report covers qualitative and quantitative information for the company and its wholly-owned subsidiary for the period from January 1, 2018, to December 31, 2018[199]. - The report is prepared in accordance with the ESG reporting guidelines set by the Hong Kong Stock Exchange[200].