Financial Performance - For the year ended December 31, 2023, the total profit was RMB 359,338,000, a significant increase from RMB 86,914,000 in 2022, representing a growth of 313%[7] - The profit from discontinued operations related to the Suiyue Expressway business was RMB 325,092,000, up from RMB 22,629,000 in 2022, marking an increase of 1,360%[3] - Basic earnings per share for the year were RMB 79.84, compared to RMB 11.88 in 2022, reflecting a growth of 572%[3] - The total comprehensive income for the year was RMB 359,331,000, compared to RMB 83,470,000 in the previous year, an increase of 331%[8] - The company reported a pre-tax consolidated profit of RMB 39,092,000 for 2023, down from RMB 68,496,000 in 2022, indicating a decline of approximately 42.9%[78] - The company’s total assets and liabilities were monitored based on the performance of the reported segments, with a focus on sales and expenses generated by each segment[72] Revenue and Operations - The revenue from continuing operations was RMB 4,340,000, compared to RMB 26,399,000 in the previous year, indicating a decline of 83.6%[3] - The total revenue for the year 2023 was RMB 407,104 thousand, a slight decrease of 0.7% compared to RMB 409,886 thousand in 2022[53] - Total reported segment revenue for the year ended December 31, 2023, was RMB 476,773,000, a decrease from RMB 586,730,000 in 2022[74] - Revenue from the liquor segment was RMB 329,186,000 for 2023, a decrease from RMB 341,080,000 in 2022, reflecting a decline of approximately 3.4%[74] - The company continues to focus on liquor trade and the construction, operation, and management of the Qingping Expressway as its main business[43] Assets and Liabilities - The net asset value increased to RMB 1,124,022,000 from RMB 803,030,000, representing a growth of 40%[13] - The total liabilities decreased from RMB 1,152,659,000 in 2022 to RMB 720,013,000 in 2023, a reduction of 37.5%[30] - Total equity rose to RMB 1,124,022 thousand, compared to RMB 803,030 thousand in the previous year[35] - Cash and cash equivalents increased to RMB 313,720 thousand from RMB 205,659 thousand[doc id='31'] Expenses and Costs - The company reported a gross profit of RMB 115,014,000 from continuing operations, down from RMB 119,685,000 in 2022, a decrease of 4.4%[27] - Operating profit decreased to RMB 40,730,000 from RMB 65,826,000, a decline of 38.2%[27] - The total sales cost for the liquor trading business was approximately RMB 222,900,000, with a gross margin of about 32.3%[124] - Administrative expenses for the fiscal year ending December 31, 2023, were approximately RMB 58,900,000, an increase of about 52.3% from RMB 38,700,000 in the previous year, primarily due to one-time bonuses paid to senior management following the sale of the Suiyue Expressway[137] Discontinued Operations - The company reported a loss from discontinued operations related to the Suizhou-Yueyang Expressway business, with toll revenue dropping to RMB 69,669 thousand from RMB 176,844 thousand[45] - The company reported a loss from discontinued operations related to the Suizhou-Yue Highway business of RMB 69,669,000 in 2023, compared to RMB 176,844,000 in 2022[76] - The gross profit from the discontinued operation of the Suiyue Expressway was RMB 63,441,000, compared to RMB 115,825,000 in the previous year[116] Investments and Acquisitions - The company completed the sale of its entire stake in Daoyue for RMB 555,700,000 on April 25, 2023[115] - The company acquired an additional 21% stake in Guizhou Renhuai for RMB 1,000,000, making it an indirect non-wholly owned subsidiary[118] - The company acquired 28% of Huayu Liquor for a total consideration of RMB 140,000,000, completing the acquisition on December 1, 2023[130] - The company acquired a 21% stake in Guizhou Renhuai for a total cost of RMB 105,001,000, increasing its ownership to 51% and allowing for consolidation of financial results[153] - The acquisition of 28% of Huajia for approximately RMB 140,000,000 will enable the company to enter the production segment of the liquor supply chain[154] Cash Flow and Dividends - Following the sale of 60% of the equity in Suizhou Expressway, the company experienced a cash inflow exceeding RMB 400,000,000, significantly improving liquidity and reducing leverage[158] - A special interim dividend of HKD 0.121 per share was declared and paid on May 18, 2023, reflecting the company's strong financial and cash flow situation[152] - No final dividend has been recommended for the year ending December 31, 2023[171] Compliance and Governance - The company has not adopted any new accounting standards that are not yet effective for the current accounting period, ensuring compliance with the latest financial reporting standards[23] - The company has not applied the initial recognition exemption to leasing transactions prior to the recent amendments, impacting the recognition of deferred tax assets and liabilities[66] - The audit committee, consisting of three independent non-executive directors, has reviewed the financial reporting procedures and internal controls, affirming that the consolidated performance for the year ending December 31, 2023, complies with relevant accounting standards[170] - The company maintains compliance with the public float requirement of at least 25% of its issued share capital as per the listing rules[166] - The company has adopted the standard code of conduct for securities trading by directors as per the listing rules, confirming compliance by all directors for the year ending December 31, 2023[169] Future Plans - The company plans to enhance its competitiveness by investing in distilleries, brewing, warehousing, logistics, and operational centers to expand its liquor business upstream[165] - Guizhou Renhuai is expected to become the company's main production and logistics base, with plans to develop proprietary liquor brands[166] Meetings and Reports - The annual general meeting is scheduled for June 5, 2024, with a suspension of shareholder registration from May 31 to June 5, 2024[172] - The annual report for the year 2023 will be published on the company's website and the Hong Kong Stock Exchange website, containing all required information as per listing rules[174] - The company expresses gratitude to management, employees, shareholders, suppliers, and banks for their continuous support[175]

Financial Performance - The company recorded revenue of approximately RMB 276,800,000 for the six months ended June 30, 2023, representing an increase of about 19.9% compared to RMB 230,900,000 in the same period last year[7]. - The company achieved a gross profit of approximately RMB 86,800,000, a 22.1% increase from RMB 71,100,000 year-on-year, with a gross margin of 31.4%, up from 30.8%[8]. - The net profit for the period was approximately RMB 370,000,000, a significant increase of about 527.1% from RMB 59,000,000 in the previous year, primarily due to a one-time gain from the sale of the Suiyue Expressway amounting to approximately RMB 320,300,000[16]. - The company reported a total comprehensive income of RMB 371,702,000 for the period, compared to RMB 57,390,000 in the same period last year[61]. - The company reported a net profit of RMB 342,400,000 from discontinued operations, significantly higher than RMB 24,587,000 in the previous year[103]. - The company reported a net cash generated from operating activities of RMB 49,230 thousand for the six months ended June 30, 2023, down from RMB 91,197 thousand in the same period of 2022, reflecting a decrease of approximately 46.0%[74]. Revenue Sources - Toll revenue from the Qingping Expressway for the period was approximately RMB 37,800,000, an increase of about 16.3% from RMB 32,500,000 in the previous year, with total vehicle traffic of approximately 11,900,000, up 20.2% from 9,900,000[7]. - The liquor trading business recorded revenue of approximately RMB 239,000,000, a 20.5% increase from approximately RMB 198,400,000 in the same period last year, with adjusted EBITDA of approximately RMB 69,900,000[29]. - Toll revenue from ongoing operations was RMB 37.8 million, up 16.5% from RMB 32.5 million in the previous year[86]. - Alcohol sales generated RMB 239.0 million, representing a 20.5% increase compared to RMB 198.4 million in the prior year[86]. Expenses and Liabilities - Administrative expenses increased by approximately 93.4% to RMB 35,000,000 from RMB 18,100,000 in the previous year, mainly due to one-time special bonuses paid to employees involved in the sale of the Suiyue Expressway[13]. - The company’s total liabilities decreased significantly, with non-current liabilities related to lease obligations dropping from RMB 263 thousand to zero[69]. - The company incurred a depreciation and amortization expense of RMB 18,897 thousand for the first half of 2023, compared to RMB 27,641 thousand in the same period of 2022, indicating a decrease of approximately 31.7%[95]. Cash and Liquidity - The company maintained cash and cash equivalents totaling approximately RMB 424,500,000 as of June 30, 2023, compared to RMB 205,700,000 at the end of 2022[17]. - Cash and cash equivalents increased to RMB 424,512,000 from RMB 205,659,000, reflecting a strong liquidity position[63]. - Cash and cash equivalents rose from RMB 205,659,000 to RMB 424,512,000, an increase of approximately 106.5%[121]. Shareholder Information - The group declared a special interim dividend of HKD 0.121 per share (equivalent to RMB 0.106), which was distributed on May 18, 2023[37]. - The company declared a special interim dividend of RMB 43,767 thousand during the reporting period[71]. - As of June 30, 2023, Mr. Chen Yangnan holds a 72.71% stake in the company through Velocity International Limited, which owns 300,000,000 shares[40]. Strategic Acquisitions and Investments - The group agreed to acquire 65% of Huajia Wine Industry (Shenzhen) Co., Ltd., which is expected to enhance the group's position in the wine supply chain and drive growth in the liquor trading business[30]. - The group further acquired 21% of Guizhou Renhuai Huayu Wine Industry Co., Ltd., which will result in the group holding 51% of the company, allowing it to consolidate financial results into its financial statements[32]. - The company injected an additional RMB 31,000,000 into Guizhou Renhuai Huayu Liquor Co., Ltd. during the six months ended June 30, 2023[116]. Operational Efficiency and Future Plans - The company plans to conduct more sales and marketing activities, including wine tasting events and promotional meetings, to enhance brand presence[38]. - The company plans to continue focusing on expanding its operational efficiency and exploring new market opportunities to drive future growth[92]. - The group aims to leverage its successful experience in completing multiple toll expressway projects in China to seek new infrastructure project opportunities[38]. Compliance and Governance - The company has maintained compliance with the corporate governance code as per the listing rules throughout the reporting period[49]. - The audit committee has reviewed the financial reporting procedures and internal controls, ensuring adherence to relevant accounting standards[52]. - The company has not identified any significant issues that would affect the compliance of the interim financial report with the relevant accounting standards[142].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責， 對其準確性或完備性亦無發表聲明，並明確表明不會就本公佈全部或任何部分內 容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 HUAYU EXPRESSWAY GROUP LIMITED 華 昱 高 速 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1823） 截至二零二三年六月三十日止六個月 中期業績公佈 財務摘要 • 期內持續經營業務收入約為人民幣276,800,000元，較去年同期增加約 19.9%。 • 期內持續經營業務毛利約為人民幣86,800,000元，較去年同期增加約22.1%。 • 期內本公司權益持有人應佔溢利約為人民幣339,900,000元，較去年同期增 加約823.6%。 • 期內每股基本及攤薄盈利為人民幣82.4分，較去年同期增加約822.7%。 • 董事會不建議就截至二零二三年六月三十日止六個月派付中期股息（二零 二二年：無）。 ...

Environmental Impact - In 2022, the total general waste generated was 711 tons, a significant increase from 2.1 tons in 2021[4] - Greenhouse gas emissions (Scope 1) decreased to 346 tons of CO2 equivalent in 2022 from 369 tons in 2021[4] - Greenhouse gas emissions (Scope 2) increased to 2,672 tons of CO2 equivalent in 2022, up from 1,695 tons in 2021, attributed to increased electricity consumption due to new toll plazas and pandemic control stations[4][9] - Total energy consumption rose to 6,111,348 kWh in 2022, compared to 4,438,682 kWh in 2021[13] - Electricity consumption increased to 4,685,039 kWh in 2022 from 2,917,577 kWh in 2021[13] - Water consumption increased to 81,821 cubic meters in 2022, up from 61,720 cubic meters in 2021[13] - The company implemented various energy-saving measures, including replacing high mast lights with LED lights to reduce energy consumption[6] - The company has developed emergency plans to mitigate climate change risks, including flood and snow removal plans[19] - The company is committed to reducing carbon emissions through the use of more energy-efficient lighting and vehicles[19] Financial Performance - For the year ended December 31, 2022, the company recorded revenue of approximately RMB 409,900,000, a decrease of 40.5% compared to the previous year[35] - The annual profit was approximately RMB 86,900,000, down about 35.3% from RMB 134,300,000 for the year ended December 31, 2021 (restated)[35] - Revenue from liquor sales was approximately RMB 341,100,000, a decrease of about 43.1% from RMB 599,600,000 for the year ended December 31, 2021 (restated)[43] - The gross profit margin for the Qingping Expressway was approximately 20.5%, down from 30.8% for the year ended December 31, 2021 (restated), primarily due to a sharp decline in toll revenue caused by the pandemic[44] - The group's total revenue for the year ended December 31, 2022, decreased to approximately RMB 409.9 million, with a profit of about RMB 86.9 million, representing a decline of approximately 35.3% compared to the previous year[64][74] - The toll revenue from the Qingping Expressway for the year ended December 31, 2022, was approximately RMB 68.8 million, a decrease of 22.6% from approximately RMB 88.9 million in the previous year[67] - The group's gross profit for the year ended December 31, 2022, was approximately RMB 119.7 million, down 42.6% from approximately RMB 208.4 million in the previous year, resulting in a gross margin of 29.2%[68] - Administrative expenses for the year ended December 31, 2022, were approximately RMB 38.7 million, a decrease of 46.6% from approximately RMB 72.4 million in the previous year[71] - The group plans to focus on expanding its liquor trade business following the sale of the Suiyue Expressway business, which will become one of its most important business segments[60][85] - The group is actively seeking opportunities in other promising business areas and infrastructure projects in China as part of its strategic plan[61] Employee and Labor Relations - The total number of full-time employees as of December 31, 2022, was 451, with a turnover rate of 17.3%[47] - As of December 31, 2022, the total employee compensation expense was approximately RMB 53,700,000, a decrease of 39.4% from RMB 88,500,000 in 2021[1] - The company adheres to local labor laws and has established policies for employee recruitment, compensation, and welfare[23] Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance as of December 31, 2022[141] - The board of directors has achieved gender diversity with one female executive director, Liu Baohua, contributing to a diverse skill set and experience[145] - The audit committee is responsible for recommending the appointment and remuneration of external auditors, ensuring their independence and the integrity of financial reporting[159] - The remuneration committee, established in May 2009, consists of three members, including independent non-executive director Hu Liege as chairman[160] - The company has a policy for board member diversity, focusing on skills, experience, and diverse perspectives to ensure effective governance[155] - The executive director and CEO, Fu Jiepin, is directly responsible for the daily operations and financial performance of the group[147] - Independent non-executive directors provide constructive opinions on strategy, policy, and performance, enhancing accountability and resource management[145] - The company has received annual independence confirmations from all independent non-executive directors, affirming their independence[145] - The board members are required to retire by rotation at least once every three years during the annual general meeting[149] - The company has established a service contract for directors with an initial term of three years, allowing termination with a three-month notice[148] - The remuneration committee reviewed and approved the compensation for directors and senior management for the year ending December 31, 2022[166] Risk Management and Internal Control - The company has established a risk management and internal control system to ensure the reliability of financial reporting and compliance with applicable laws and regulations[169] - The internal audit plan has been approved by the board, which includes an annual review of the risk management and internal control system[171] - The board recognizes its overall responsibility for the group's risk management and internal control systems, continuously reviewing their effectiveness[192] - The internal audit department, composed of professionals such as practicing accountants, operates independently from the group's daily operations to assess risk management and internal control systems[195] - The group has complied with the corporate governance code regarding risk management and internal control systems for the year ended December 31, 2022[194] - The group has established a risk management framework that includes key areas such as accounting, internal audit, and financial reporting personnel resources[194] Shareholder Communication - The board emphasizes the importance of clear, timely, and effective communication with shareholders and investors to build confidence and attract new investments[198] - The company maintains high transparency by providing accurate, clear, and timely information through annual reports, interim reports, and announcements[198] - Voting at the company's shareholder meetings is conducted by share count, with procedures explained at the start of each meeting[199] - The board regularly communicates with institutional investors and analysts to inform them about the group's strategies, operations, management, and plans[198] - The board considers the effectiveness of the shareholder communication policy during the review process[198] Future Outlook - The easing of COVID-19 restrictions in December 2022 by the Chinese government brings optimism for economic recovery in 2023 and beyond[35] - In the first quarter of 2023, traffic volume and toll revenue for the Qingping Expressway significantly increased due to the recovery and growth of economic activities in Shenzhen[117] - The liquor trading business also saw a substantial improvement in Q1 2023, with the company expressing confidence in the post-COVID performance of this segment[117] - The company plans to arrange more sales and marketing activities, including wine tasting events and promotional meetings, to enhance brand presence for Huamao and Xijiu[117] - The company is considering pursuing other infrastructure projects in China when suitable opportunities arise, as well as expanding its liquor business through potential acquisitions[118] - The company aims to explore opportunities in other promising commercial sectors as favorable conditions present themselves[118] - The company reported a significant decrease in revenue and profit for the year ending December 31, 2022, due to challenges from the COVID-19 pandemic, rising oil prices, and increasing interest rates[137] - However, with the easing of restrictions and economic recovery in early 2023, the company has quickly returned to normal operations in Q1 2023[137] - The company will leverage its successful experience in completing other toll highway projects in China to seek investment opportunities aligned with its overall business strategy[139]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完備性亦無發表聲明，並表明不會就本公告全部或任何部分內容而 產生或因倚賴該等內容而引致之任何損失承擔任何責任。 HUAYU EXPRESSWAY GROUP LIMITED 華 昱 高 速 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1823） 截至二零二二年十二月三十一日止年度 全年業績公告 華昱高速集團有限公司（「本公司」）董事會（「董事會」）謹此宣佈本公司及其附屬 公司（統稱「本集團」）截至二零二二年十二月三十一日止年度的綜合業績，連同截 至二零二一年十二月三十一日止年度（經重列）的比較數字如下： 綜合損益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 人民幣千元 人民幣千元 （經重列） （附註13） 持續經營業務 收入 4 409,886 688,452 銷售成本 (290,201) (480,024) 毛利 119,685 208,428 其他收入 5 3,367 3,920 其他（虧損）╱收益淨額 5 (2,687) 2,369 行政開支 (38,667) (72, ...

Financial Performance - The company recorded revenue of approximately HKD 380.8 million for the six months ended June 30, 2022, a decrease of about 39.0% compared to HKD 624.3 million in the same period last year[8]. - The company reported a gross profit of approximately HKD 157.3 million, a decrease of 33.7% from HKD 237.2 million in the previous year, with a gross margin of 41.3%, up 3.3% from 38.0%[9]. - The net profit for the period was approximately HKD 71.1 million, a significant decrease of about 48.7% from HKD 138.7 million in the same period last year[18]. - The company’s revenue for the six months ended June 30, 2022, was HKD 380,838,000, a decrease of 39% compared to HKD 624,314,000 for the same period in 2021[60]. - Gross profit for the same period was HKD 157,300,000, down 34% from HKD 237,187,000 in 2021[60]. - Operating profit decreased to HKD 118,555,000, a decline of 42% from HKD 204,617,000 in the previous year[60]. - Net profit for the period was HKD 71,059,000, representing a 49% decrease from HKD 138,649,000 in 2021[62]. - Total comprehensive income for the period was HKD 28,437,000, significantly lower than HKD 147,651,000 in 2021[62]. Revenue Breakdown - Toll revenue from the Suiyue Expressway and Qingping Expressway totaled approximately HKD 142.0 million, down 11.6% from HKD 160.7 million year-on-year[8]. - The group recorded liquor trading revenue of approximately HKD 238,900,000, a significant decrease of about 48.5% compared to the previous year[29]. - Alcohol sales generated HKD 238,861,000, a significant decline of 48% compared to HKD 463,626,000 in the previous year[90]. - Toll revenue amounted to HKD 141,977,000, down 12% from HKD 160,688,000 year-on-year[90]. Expenses and Costs - Administrative expenses were approximately HKD 28.3 million, a decrease of 4.7% from HKD 29.7 million year-on-year[15]. - The sales and distribution costs increased by 47.0% to approximately HKD 12.2 million from HKD 8.3 million year-on-year[16]. - The company incurred finance costs of HKD 28,678,000 for the six months ended June 30, 2022, compared to HKD 28,176,000 in the same period of 2021[107]. - The company recognized a depreciation expense of HKD 29,229,000 for the six months ended June 30, 2022, compared to HKD 35,555,000 in the same period of 2021[107]. Assets and Liabilities - The company had total bank loans of approximately HKD 1,131.8 million as of June 30, 2022, down from HKD 1,208.3 million at the end of 2021[19]. - Cash and cash equivalents totaled approximately HKD 278.7 million, down from HKD 332.6 million at the end of 2021[19]. - Non-current assets as of June 30, 2022, amounted to HKD 1,653,379,000, a slight decrease from HKD 1,688,205,000 at the end of 2021[64]. - Current assets totaled HKD 576,177,000, down from HKD 645,491,000 at the end of the previous year[64]. - The company's total liabilities decreased to HKD 1,082,784,000 from HKD 1,177,615,000 in the previous year[66]. - The total equity attributable to the company's equity holders was HKD 588,772,000, an increase from HKD 576,798,000 at the end of 2021[66]. Employee and Compensation - As of June 30, 2022, the group employed a total of 438 employees, a decrease from 480 employees as of December 31, 2021[22]. - Total employee compensation expenses for the period amounted to approximately HKD 31,000,000, compared to HKD 28,500,000 for the same period last year, reflecting an increase of about 5.3%[22]. Share Options and Corporate Governance - The total number of shares that can be issued under the share option plan is 41,260,800 shares, representing approximately 10.0% of the company's issued share capital as of the report date[44]. - On December 28, 2021, the company granted share options to eligible participants for 40,000,000 shares at an exercise price of HKD 2.89 per share, which accounted for about 9.69% of the issued share capital on the grant date[44]. - The company has adopted the corporate governance code as per the listing rules and has complied with it throughout the reporting period[50]. - The share options granted are valid for one year from December 28, 2021, to December 27, 2022[44]. Future Outlook and Strategic Plans - The management anticipates a recovery in highway toll revenue, which declined by approximately 11.6% due to external economic factors, as economic activities along the highways resume[31]. - The group plans to explore opportunities for acquiring other infrastructure projects in China and expanding into other promising business areas[32]. - The company is focusing on expanding its market presence and enhancing its product offerings, although specific new products and technologies were not detailed in the report[70].

Financial Performance - Total revenue for the year ended December 31, 2021, was approximately HKD 1,047,888,000, an increase of about 80.6% compared to the previous year[22] - Profit before tax reached HKD 233,040,000, significantly up from HKD 111,493,000 in the prior year[22] - Net profit for the year was HKD 161,958,000, which is 1.9 times higher than the previous year's net profit of HKD 86,883,000[28] - The company's total revenue for the year ended December 31, 2021, was approximately HKD 1,047,900,000, an increase of 80.6% compared to HKD 580,100,000 for the year ended December 31, 2020[34] - The revenue from tolls on the Suiyue and Qingping expressways was approximately HKD 324,900,000, representing a 51.3% increase from HKD 214,700,000 in the previous year[34] - The sales revenue from the liquor trading business was approximately HKD 723,000,000, a significant increase of 97.8% from HKD 365,500,000 in the previous year[35] - The gross profit for the year was approximately HKD 400,000,000, up 96.0% from approximately HKD 204,100,000 in the previous year, with a gross margin of 38.2%[39] - The company recorded a pre-tax profit of approximately HKD 233,000,000, an increase of about 109.0% from approximately HKD 111,500,000 in the previous year[46] - The profit attributable to shareholders for the year ended December 31, 2021, was HKD 104,237,000, compared to HKD 73,911,000 in 2020, representing an increase of approximately 41.1%[174] Traffic and Toll Revenue - Average monthly traffic volume on the Suiyue Expressway was approximately 1,060,000 vehicles, with toll revenue of about HKD 217,700,000, a 55.0% increase year-on-year[29] - The average monthly traffic flow for the Suiyue Expressway was 1,060,000 vehicles, a significant increase from approximately 771,000 vehicles in the previous year, representing a growth of about 37.4%[57] - The average toll fee per vehicle on the Suiyue Expressway increased by 13.2% to HKD 17.2 from HKD 15.2 in the previous year[57] - The total toll revenue for the Qingping Expressway was approximately HKD 107,200,000, a 44.5% increase from approximately HKD 74,200,000 in the previous year[58] - The average monthly traffic flow for the Qingping Expressway was approximately 2,200,000 vehicles, up about 29.3% from approximately 1,700,000 vehicles in the previous year[58] Assets and Liabilities - Total assets as of December 31, 2021, amounted to HKD 2,333,696,000, compared to HKD 2,120,334,000 in the previous year[23] - Total liabilities were HKD 1,455,416,000, an increase from HKD 1,302,544,000 in the prior year[23] - As of December 31, 2021, the total bank loans drawn by the group amounted to approximately HKD 1,208,300,000, an increase from approximately HKD 1,089,000,000 in 2020[47] - The group had a debt-to-equity ratio of 1.38 as of December 31, 2021, slightly up from 1.34 in 2020[47] - As of December 31, 2021, the total outstanding secured bank loans amounted to HKD 1,208,300,000[153] Business Strategy and Growth - The company expects stable growth for the Suiyue Expressway due to the economic performance of Hunan Province[29] - The company plans to pursue other infrastructure projects in China when suitable opportunities arise, including potential acquisitions of abandoned or developing projects[35] - The group plans to continue pursuing infrastructure projects in China, leveraging its successful experience and established relationships[67] - The group may consider acquiring abandoned or developing infrastructure projects from other developers or the government if commercially viable opportunities arise[67] - The company is considering expanding into other promising business areas when favorable opportunities present themselves[35] Governance and Compliance - The company has adopted a board diversity policy to ensure a range of skills and experiences among board members, considering factors such as gender, age, cultural background, and industry experience[88] - The audit committee reviewed the consolidated financial statements for the year ended December 31, 2021, and held two meetings during the year to ensure compliance with accounting principles[99] - The board has established various committees, including the audit and remuneration committees, to oversee specific areas of the group's affairs, ensuring effective governance[97] - The company emphasizes continuous professional development for all directors to enhance their knowledge and skills, ensuring informed contributions to the board[91] - The company has implemented measurable targets for board diversity as part of its nomination process[94] Market and Operational Insights - The group’s revenue is highly dependent on traffic volume, which is influenced by various factors including connectivity to local and national highway networks[143] - The group faces significant risks related to changes in government transportation policies that could adversely affect revenue and operational performance[142] - The group’s operations are susceptible to competition from other highways and transportation modes, which could impact traffic volume and revenue[143] - The company’s business operations may be adversely affected by natural disasters or outbreaks of infectious diseases, impacting procurement and sales[150] Future Outlook - The company reported a significant increase in revenue, achieving $1.5 billion in Q3 2023, representing a 20% year-over-year growth[200] - The company provided guidance for Q4 2023, expecting revenue to be between $1.6 billion and $1.8 billion, reflecting a growth rate of 15% to 20%[200] - Overall, the company remains optimistic about future growth, with a focus on innovation and market expansion as key drivers[200]

Revenue and Profitability - The company recorded revenue of approximately HKD 624.3 million for the six months ended June 30, 2021, representing an increase of about 202.8% compared to HKD 206.2 million in the same period last year[9]. - Toll revenue from the Suiyue Expressway and Qingping Expressway amounted to approximately HKD 160.7 million, up 171.0% from HKD 59.3 million year-on-year[9]. - The company achieved a gross profit of approximately HKD 237.2 million, a significant increase of 317.5% from HKD 56.8 million in the previous year, with a gross margin of 38.0% compared to 27.6% last year[10]. - The net profit for the period was approximately HKD 138.6 million, a turnaround from a loss of HKD 1.9 million in the same period last year[16]. - Total revenue from the liquor trade segment reached HKD 463,600,000, approximately 3.2 times that of the same period last year[28]. - The adjusted EBITDA for the liquor segment was approximately HKD 121,700,000, about 3.4 times higher than the previous year[28]. - Operating profit reached HKD 204,617,000, up from HKD 29,435,000 in the previous year, reflecting a substantial increase in operational efficiency[65]. - Total comprehensive income for the period amounted to HKD 147,651,000, compared to a loss of HKD 9,906,000 in 2020[69]. Expenses and Financial Position - Administrative expenses increased by 50.2% to approximately HKD 29.8 million, primarily due to rising employee costs post-COVID-19[13]. - The company reported a significant increase in other income to HKD 3,339,000 from HKD 1,947,000 in the previous year[65]. - Administrative expenses rose to HKD 29,750,000 from HKD 19,807,000, reflecting increased operational costs associated with growth initiatives[65]. - The company’s total bank loans as of June 30, 2021, amounted to approximately HKD 1,241.4 million, an increase from HKD 974.3 million at the end of 2020[17]. - The company maintained a debt-to-equity ratio of 1.62 as of June 30, 2021, compared to 1.33 at the end of 2020[17]. - Non-current liabilities rose to HKD 1,206,705, compared to HKD 1,038,238, indicating an increase of about 16.2%[75]. - The total liabilities increased to HKD 1,365.823 million from HKD 1,261.127 million, reflecting a growth of about 8.3%[144]. Cash Flow and Liquidity - Cash and cash equivalents totaled approximately HKD 279.6 million, up from HKD 246.5 million at the end of 2020[17]. - Operating cash generated for the six months ended June 30, 2021, was HKD 103,953,000, a significant increase from HKD 3,336,000 in 2020[89]. - Net cash generated from operating activities was HKD 83,248,000, compared to a net cash outflow of HKD 2,161,000 in the previous year[89]. - Cash used in investing activities totaled HKD 173,012,000, up from HKD 11,959,000 in 2020, primarily due to the acquisition of a jointly controlled subsidiary for HKD 152,869,000[89][96]. - Cash generated from financing activities was HKD 119,982,000, a recovery from a cash outflow of HKD 24,840,000 in the prior year[89]. - The net increase in cash and cash equivalents was HKD 30,218,000, contrasting with a decrease of HKD 38,960,000 in 2020[89]. Shareholder Returns and Dividends - A special interim dividend of HKD 0.06 per share was declared on May 31, 2021, and paid on July 9, 2021[29]. - The company declared an interim dividend of HKD 42,478, compared to HKD 11,814 in the previous period, showing a significant increase[83]. - The company’s legal reserve must reach 50% of registered capital before dividends can be distributed, with 10% of post-tax profits allocated to this reserve until the threshold is met[182]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the group's financial reporting procedures and internal controls[50]. - The interim financial report was unaudited but reviewed by the audit committee and external auditors, confirming compliance with relevant accounting standards[51]. - The company has adopted the corporate governance code and has complied with its provisions during the reporting period[47]. - The company has not engaged in any arrangements that would allow directors or senior executives to benefit from acquiring shares or bonds of the company or any other corporation[44]. Acquisitions and Investments - The company completed the acquisition of a 60% stake in a jointly controlled subsidiary for approximately HKD 152,900,000 on June 29, 2021[96][97]. - The acquisition was accounted for using the merger accounting method as per HKAS 5, reflecting the ongoing control of the entities involved[100]. - The company has engaged in acquisitions under common control, impacting its financial position, with a recorded loss of HKD 152,869 related to this activity[83]. Market and Operational Strategy - The company plans to continue monitoring interest rate risks and may consider appropriate actions if necessary[20]. - The company plans to continue expanding its distribution network and will organize more sales and marketing activities in the near future[33]. - The company aims to pursue other infrastructure projects in China when suitable opportunities arise, leveraging its experience and reputation in the industry[33]. - The company is focusing on market expansion and new product development, although specific figures were not provided in the summary[79].

Financial Performance - Total revenue for the year ended December 31, 2020, was approximately HKD 506.0 million, an increase of about 10.7% compared to HKD 456.9 million for the year ended December 31, 2019[28]. - The net profit for the year was approximately HKD 80.9 million, compared to HKD 68.6 million in the previous year, reflecting a growth of about 17.0%[28]. - Toll revenue for the year was approximately HKD 140.5 million, a decrease of 27.0% from the previous year's toll revenue due to COVID-19 impact[28]. - The liquor trading business achieved sales of approximately HKD 365.5 million, representing a growth of 38.1% compared to the previous year[29]. - The group recorded a revenue of approximately HKD 506 million for the year ended December 31, 2020, an increase of 10.7% compared to approximately HKD 457 million for the year ended December 31, 2019[33]. - The group's liquor sales revenue was approximately HKD 365.5 million, an increase of about 38.1% from approximately HKD 264.6 million in the previous year, with a total sales volume of about 500 tons, up approximately 37.1%[35]. - The group recorded a pre-tax profit of approximately HKD 103.8 million, an increase of 7.7% from approximately HKD 96.4 million in the previous year, with a net profit of approximately HKD 80.9 million compared to approximately HKD 68.6 million in the previous year[46]. - The profit attributable to shareholders for the year ended December 31, 2020, was HKD 70,299,000, compared to HKD 50,420,000 in 2019, representing a year-on-year increase of 39.5%[174]. Assets and Liabilities - Total assets as of December 31, 2020, were approximately HKD 1,864.3 million, compared to HKD 1,763.3 million in 2019[24]. - Total liabilities as of December 31, 2020, were approximately HKD 1,241.3 million, slightly decreased from HKD 1,245.6 million in 2019[24]. - The total amount of bank loans drawn by the group was approximately HKD 926.8 million as of December 31, 2020, compared to approximately HKD 915.4 million in the previous year[47]. - As of December 31, 2020, the total outstanding secured bank loans and other borrowings amounted to HKD 1,042,300,000[153]. - As of December 31, 2020, the total bank borrowings of the group amounted to approximately HKD 926.8 million, with a debt-to-equity ratio of 1.67[147]. Operational Highlights - Average monthly traffic volume in the second half of 2020 was approximately 108,000 vehicles, an increase of about 15.8% compared to the same period in 2019[28]. - The average toll fee per vehicle was approximately HKD 15.2, a decrease of about 12.1% from the previous year, with the proportion of heavy trucks in total traffic further declining to about 38.7%[34]. - The strategic location of the expressway in Hunan province is expected to provide stable growth and cash flow for the company in the future[29]. - The group anticipates that revenue from toll road projects will continue to increase in the coming year, driven by the upward momentum of economic growth in China, particularly in Hunan province[143]. - The group relies heavily on traffic volume for toll revenue, which is influenced by various factors including connectivity to local and national highway networks[143]. Governance and Compliance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules, ensuring compliance as of December 31, 2020[71]. - The board consists of three executive directors and three independent non-executive directors, with all independent directors confirmed as independent[73]. - The company has established a board diversity policy to ensure a range of skills and experiences among board members, including gender, age, and industry experience[88]. - The company has a standard code for securities trading by directors, which all directors confirmed compliance with for the year ending December 31, 2020[72]. - The board has reviewed and updated its corporate governance policies and practices, ensuring alignment with legal and regulatory requirements[77]. - The company has a structured approach to evaluating the independence of non-executive directors[105]. - The company aims to maintain effective internal control systems as part of its governance practices[99]. - The Audit Committee is responsible for monitoring the integrity of the company's financial statements and ensuring compliance with applicable accounting standards[99]. Risks and Challenges - The group faces significant risks related to changes in government transportation policies, which could adversely affect revenue and operational performance[142]. - The group’s financial performance may be significantly impacted by fluctuations in interest rates, as all existing borrowings are subject to variable interest rates[147]. - The group’s operations could be adversely affected by natural disasters or outbreaks of infectious diseases, which may disrupt procurement and sales activities[150]. - The group has a substantial reliance on exclusive distribution rights granted by Guizhou Moutai Group for its liquor trading business, with annual reviews of the agreements[148]. - The group’s reliance on third-party distributors for its liquor trading business poses risks if these distributors fail to fulfill their obligations[149]. Employee and Community Relations - The company had a total of 241 employees as of December 31, 2020, with total employee compensation expenses of approximately HKD 32,500,000[63]. - The company has maintained good relationships with employees, with an acceptable employee turnover rate[161]. - The company has not made any charitable donations during the fiscal year ending December 31, 2020[175]. Future Plans and Strategies - The company plans to pursue other infrastructure projects in China when suitable opportunities arise[30]. - The company plans to continue seeking opportunities aligned with its overall business strategy, including potential acquisitions of abandoned or developing infrastructure projects[66]. - The management expressed confidence in the company's performance post-COVID-19, with traffic volume and toll revenue returning to pre-pandemic levels[65]. Shareholder Communication - The board emphasizes the importance of clear and timely communication with shareholders to build investor confidence and attract new investments[117]. - The company has established a communication channel for shareholders to address their inquiries and concerns through the company secretary[126]. - The company has a structured process for shareholders to submit proposals for consideration at the annual general meeting, requiring submission at least seven days prior to the meeting[122].

Financial Performance - The company reported revenue of approximately HKD 186.4 million for the six months ended June 30, 2020, a decrease of about 7.8% compared to HKD 202.1 million in the same period last year[8]. - The company's gross profit for the period was approximately HKD 60.6 million, a decrease of 36.7% from HKD 95.8 million in the previous year, resulting in a gross margin of about 32.5% compared to 47.4% last year[10]. - The net profit for the period was approximately HKD 6.1 million, a significant decrease of 80.1% from HKD 30.9 million in the same period last year[17]. - Revenue for the six months ended June 30, 2020, was HKD 186,397,000, a decrease of 7.4% compared to HKD 202,080,000 in the same period of 2019[59]. - Gross profit for the same period was HKD 60,613,000, down 36.7% from HKD 95,754,000 year-on-year[59]. - Operating profit decreased to HKD 35,640,000, a decline of 49.5% from HKD 70,459,000 in the previous year[59]. - Total comprehensive income for the period was HKD 1,526,000, significantly lower than HKD 28,100,000 in the same period last year[61]. - The company reported a decrease in cash and cash equivalents to HKD 177,732,000 as of June 30, 2020, down from HKD 234,863,000 at the beginning of the year[75]. Revenue Sources - Toll revenue from the Yueyang Expressway (Hunan section) was approximately HKD 39.5 million, down 58.4% from HKD 95 million in the same period last year due to the COVID-19 pandemic toll exemption policy[8]. - The group recorded a total revenue of HKD 146,900,000 from its liquor trading business, which remained similar to the sales figures from the second half of 2019[30]. - Alcohol sales increased to HKD 146,894, up 37.2% from HKD 107,095 in the same period of 2019[81]. Expenses and Cost Management - Administrative expenses decreased by 17.0% to approximately HKD 16.6 million from HKD 20 million in the previous year, primarily due to cost-saving measures during the pandemic[14]. - The company recognized share-based payment expenses of HKD 802,000 for the period ended June 30, 2020, compared to HKD 2,355,000 in the previous year[117]. - Interest expenses decreased to HKD 25,007 from HKD 27,978 in the previous year[89]. Cash Flow and Liquidity - Cash generated from operating activities for the six months ended June 30, 2020, was a net outflow of HKD 20,960,000, compared to a net inflow of HKD 56,659,000 in 2019, reflecting a significant decrease[75]. - The company experienced a net cash outflow of HKD 55,985,000 in total cash and cash equivalents for the six months ended June 30, 2020, compared to an increase of HKD 192,048,000 in the same period of 2019[75]. - Cash and cash equivalents totaled approximately HKD 177.7 million as of June 30, 2020, down from HKD 234.9 million at the end of 2019[18]. Employment and Compensation - As of June 30, 2020, the group employed a total of 250 employees in mainland China and Hong Kong, a decrease from 276 employees as of December 31, 2019[22]. - Total employee compensation expenses for the period amounted to approximately HKD 12,000,000, compared to HKD 21,100,000 for the six months ended June 30, 2019[22]. Debt and Financing - The total amount of bank loans drawn was approximately HKD 897.7 million, a slight decrease from HKD 915.4 million at the end of 2019[18]. - As of June 30, 2020, bank loans from China Merchants Bank amounted to approximately HKD 897,700,000, secured against the toll collection rights of the highway[26]. - The group has not violated any covenants related to its bank loans as of June 30, 2020[109]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the financial reporting procedures and internal controls of the group[47]. - The interim financial report was reviewed by the audit committee and external auditor KPMG, confirming compliance with relevant accounting standards[48]. - The company has adopted the corporate governance code and has complied with its provisions during the reporting period[45]. Future Outlook and Strategy - Management expressed confidence in the group's performance post-COVID-19, anticipating a return to pre-pandemic levels of traffic and revenue[31]. - The group plans to seek opportunities for investment in other infrastructure projects in China, leveraging its successful experience and established relationships[31]. - The company plans to continue monitoring interest rate risks and may consider appropriate actions, including hedging, if necessary[20]. Shareholder Information - As of June 30, 2020, Mr. Chen Yangnan held 300,000,000 shares, representing 72.71% of the company's equity, through a controlled corporation[34]. - The total number of shares that can be issued under the share option plan is capped at 41,260,800 shares, representing approximately 10.0% of the issued share capital as of June 11, 2020[39]. - No share options have been granted under the share option plan since its effective date on June 11, 2020[39].