Financial Performance - Revenue from continuing operations for the six months ended June 30, 2024, was approximately RMB 128.8 million, a decrease of about 53.5% compared to the same period last year[1] - Gross profit from continuing operations for the same period was approximately RMB 29.2 million, down approximately 66.4% year-on-year[1] - Profit attributable to equity holders from continuing operations was approximately RMB 11.9 million, representing a decrease of about 19.7% compared to the previous year[1] - Basic and diluted earnings per share for the period were RMB 2.89, a decrease of approximately 19.7% year-on-year[1] - Operating profit for the period was RMB 5.0 million, down from RMB 42.4 million in the same period last year[2] - Profit before tax for the period was RMB 15.3 million, compared to RMB 44.8 million in the previous year[2] - Total comprehensive income for the period was RMB 14.7 million, significantly lower than RMB 371.7 million in the same period last year[4] - Total revenue for the six months ended June 30, 2024, was RMB 128,824,000, a decrease from RMB 276,808,000 in the same period of 2023, representing a decline of approximately 53.5%[12] - Revenue from the liquor segment was RMB 94,772,000 for the six months ended June 30, 2024, compared to RMB 239,015,000 in the same period of 2023, indicating a decrease of about 60.4%[12] - Adjusted EBITDA for the reporting segments totaled RMB 39,911,000 for the six months ended June 30, 2024, compared to the previous period's figures[14] - The group recorded a gross profit of approximately RMB 29,200,000, a decrease of about 66.4% compared to RMB 86,800,000 in the same period last year, with a gross margin of 22.6%, down 8.8% from 31.4%[33] - The group reported a profit from continuing operations of approximately RMB 14,000,000, a decrease of about 49.4% from RMB 27,600,000 in the same period last year[38] Dividends and Shareholder Returns - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2024[1] - The company did not declare an interim dividend for the period[32] - A special interim dividend of HKD 0.121 per share (equivalent to RMB 0.106) was declared after receiving the second payment, distributed on August 1, 2024[50] Assets and Liabilities - Current assets as of June 30, 2024, totaled RMB 822.1 million, an increase from RMB 720.0 million as of December 31, 2023[5] - Total liabilities as of June 30, 2024, were RMB 717.3 million, compared to RMB 706.0 million as of December 31, 2023[6] - The total assets for the reporting segments as of June 30, 2024, amounted to RMB 1,346,661,000, while total liabilities were RMB 293,438,000[14] - As of June 30, 2024, the group had total bank loans and borrowings of approximately RMB 187,300,000, with cash and cash equivalents totaling approximately RMB 276,300,000[39] Operational Highlights - The company continues to focus on its core segments, with significant revenue generated from the Qingping Expressway and liquor distribution[10] - Toll revenue from the Qingping Expressway Phase I was approximately RMB 34.1 million, down about 9.9% from RMB 37.8 million in the same period last year[32] - Total vehicle traffic on the Qingping Expressway was approximately 11.4 million, a decrease of about 4.2% from approximately 11.9 million in the same period last year[32] - The liquor trading business is expected to improve following the digestion of accumulated inventory, with the company confident in the performance of this segment and planning more sales and marketing activities[51] - The company anticipates steady growth in traffic volume and toll revenue from the Qingping Expressway due to the recovery of economic activities in Shenzhen, which is expected to be a major source of stable cash flow[51] Discontinued Operations - The company has discontinued the operation of the Suizhou-Yueyang Expressway, which was sold in April 2023, and is no longer a subsidiary[10] - The company completed the sale of a 60% stake in Hunan Daoyue Expressway Co., Ltd. for RMB 555,700 thousand on April 25, 2023[20] - The net profit from the discontinued Daoyue Expressway operations for the period from January 1, 2023, to April 25, 2023, was RMB 342,400 thousand, including a gain from the sale of RMB 320,307 thousand[21] Financial Adjustments and Standards - The company has applied new and revised Hong Kong Financial Reporting Standards during the accounting period, but these changes did not have a significant impact on the financial performance or position[9] - The financial report is unaudited, but it has been reviewed by an independent auditor in accordance with the relevant standards[8] Employee and Administrative Costs - The company incurred total employee costs of RMB 16,462 thousand for continuing operations during the six months ended June 30, 2024[17] - Administrative expenses decreased by approximately 42.8% to RMB 20,000,000 from RMB 35,000,000 in the same period last year[35] - Sales and distribution costs were approximately RMB 5,500,000, a decrease of about 39.1% from RMB 9,100,000 in the same period last year[36] Investments and Acquisitions - The group increased its stake in Guizhou Renhuai to 51%, with plans to develop a winery and an integrated operation center on a site of at least 150,000 square meters, expected to be completed in the first half of 2025[47] - The group acquired a 28% stake in Huajia, which became an associate company, with Huajia primarily investing in Guizhou Zunpeng, which reported revenue of approximately RMB 298,600,000 and a net profit of RMB 69,200,000 during the period[48]

Financial Performance - For the fiscal year ending December 31, 2023, the company reported revenue of approximately RMB 407.1 million, a decrease of about 0.7% compared to RMB 409.9 million for the previous year[10]. - The profit for the year was approximately RMB 359.3 million, a significant increase of about 313.4% from RMB 86.9 million in the previous year, primarily due to substantial gains from the sale of the discontinued operation of the Suizhou Expressway business, amounting to approximately RMB 320.3 million[16]. - Administrative expenses for the fiscal year were approximately RMB 58.9 million, an increase of about 52.3% from RMB 38.7 million in the previous year, mainly due to one-time special bonuses paid to senior management following the completion of the sale[13]. - Total assets as of December 31, 2023, were approximately RMB 1,249.2 million, a decrease from RMB 1,955.9 million in the previous year[10]. - Total liabilities as of December 31, 2023, were approximately RMB 125.2 million, down from RMB 1,152.9 million in the previous year[10]. - Total cash and cash equivalents amounted to approximately RMB 313.7 million, an increase from RMB 205.7 million in 2022[33]. - Following the monetization of a 60% stake in the Suiyue Expressway, the group received cash inflow exceeding RMB 400 million, significantly improving liquidity and cash flow[41]. - The group declared a special interim dividend of HKD 0.121 per share, paid on May 18, 2023[38]. - The company has adopted a dividend policy that considers financial performance, business operations, and future business plans before declaring dividends[123]. Strategic Investments - The company completed the sale of a 60% stake in the Suizhou Expressway business on April 25, 2023, which significantly improved its cash position[4]. - On June 29, 2023, the company acquired a 28% stake in Huajia Wine Industry (Shenzhen) Co., Ltd., which operates in the wine trade and investment holding business in China[5]. - The company signed a share transfer agreement on June 16, 2023, to acquire a 21% stake in Guizhou Renhuai, with a total acquisition cost of RMB 105 million, resulting in a 51% ownership stake post-completion[21]. - The company completed the acquisition of an additional 21% stake in Guizhou Renhuai, making it a subsidiary with a 51% indirect ownership[129]. - The company also acquired a 28% stake in Huajia Wine Industry, which primarily engages in wine trading and has approximately 44.94% ownership in Guizhou Zunpeng[129]. Human Resources - As of December 31, 2023, the group had a total of 348 employees in China and Hong Kong, a decrease from 457 in 2022[23]. - Total employee compensation expenses for the year were approximately RMB 59.2 million, up from RMB 53.7 million in 2022[23]. - The company employed a total of 348 staff members, with 206 males and 142 females, reflecting a gender distribution of 15.0% and 32.4% respectively[182]. - The workforce is predominantly young, with 36.4% under 30 years old[182]. - There were no work-related fatalities reported from 2021 to 2023, with only one work injury recorded in 2023[187]. Corporate Governance - The board is committed to maintaining good corporate governance practices and has reviewed and improved various procedures and documentation as detailed in the report[43]. - The company has established various board committees to oversee specific areas of governance, primarily composed of independent non-executive directors[63]. - The company’s governance policies include reviewing and monitoring the training and continuous professional development of directors and senior management[54]. - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting to address specified matters[72]. - The company’s governance report includes disclosures on compliance with corporate governance codes[62]. - The audit committee reviewed the consolidated financial statements for the year ending December 31, 2023, ensuring the adoption of appropriate accounting principles and practices[64]. - The nomination committee was established to ensure the board possesses the necessary skills and experience relevant to the company's business needs[75]. - The nomination committee held two meetings during the year to review the board structure and composition, ensuring diversity in selection criteria[96]. - The company emphasizes the importance of diversity in the board selection process, considering factors such as gender, age, and professional experience[83]. - The company’s remuneration policy for employees is determined based on their value, qualifications, and capabilities[67]. - The remuneration committee held two meetings to review and approve the remuneration of directors and senior management for the year ending December 31, 2023, with total bonuses not exceeding 10% of the audited consolidated profit for the fiscal year[67]. Risk Management and Compliance - The company has established a risk management and internal control system aimed at ensuring the reliability of financial reporting and compliance with applicable laws and regulations[98]. - The board recognizes its overall responsibility for the risk management and internal control systems and continuously reviews their effectiveness[88]. - The internal audit department, composed of professionals such as practicing accountants, operates independently from daily operations to assess the effectiveness of risk management and internal control systems[100]. - The company has implemented procedures for disclosing internal information to ensure timely assessment of facts that may significantly impact the company's stock price[99]. - The company has no hedging arrangements in place to mitigate interest rate or foreign exchange risks, which may impact financial performance[34]. - The board has established an internal control and risk management system to safeguard shareholder interests and the company's assets[145]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance report covers the company's highway operations and wine trading business in China[130]. - The company recognizes the risks posed by climate change, particularly to its toll road operations, and is taking steps to mitigate these risks[177]. - In 2023, greenhouse gas emissions (Scope 1) decreased to 2,364 tons of CO2 equivalent from 3,073 tons in 2022, representing a reduction of approximately 23%[169]. - Greenhouse gas emissions (Scope 2) increased significantly to 8,074 tons of CO2 equivalent in 2023 from 2,672 tons in 2022, indicating a rise of about 201%[169]. - Total general waste generated increased slightly from 71 tons in 2022 to 72 tons in 2023[169]. - The company replaced all high mast lights with LED lights to enhance energy efficiency, contributing to overall energy savings[170]. - The company is phasing out older vehicles in favor of more fuel-efficient models to reduce fuel consumption[170]. - The company has implemented various energy-saving measures in offices and dormitories, including turning off idle lights and electronic devices[159]. - The company adheres to the "3R" principle (Reduce, Reuse, Recycle) for managing general waste, ensuring proper disposal and recycling of materials[167]. - The company has installed sound barriers along highways to mitigate noise pollution affecting nearby schools and residential buildings[166]. - The company is committed to reducing its carbon footprint despite the limited control over emissions from vehicles using its highways[141]. - Total energy consumption in 2023 was 5,948,704.6 kWh, a significant decrease compared to 2022[197]. - Electricity consumption accounted for 4,685,039 kWh, while gasoline and diesel consumption were 53,056.6 liters and 37,714.6 liters respectively[197]. - Water consumption reached 81,821 cubic meters, also showing a substantial reduction from the previous year[197]. - The company prioritizes green products in its procurement process, considering environmental and social impacts[192]. - The company has established an emergency management mechanism to handle various situations, including peak periods and extreme weather[196]. - The company has established a stakeholder engagement method to identify significant environmental, social, and governance issues[117]. - The company has implemented energy-saving measures, including replacing existing lighting and vehicles to reduce carbon emissions[178].

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].