Financial Performance - The total revenue for the year-to-date reached RMB 9,484,797,722.84, representing an increase of 24.0% compared to RMB 7,659,400,764.81 in the same period last year[3]. - The net profit attributable to shareholders decreased by 19.11% to RMB 1,228,979,476.26 from RMB 1,542,538,210.92 year-on-year[5]. - The basic earnings per share for the quarter was RMB 0.2488, down 19.11% from RMB 0.2230 in the same period last year[6]. - The company's operating revenue for the year-to-date period increased due to new electricity sales from Yunshan Qingneng and recognition of construction income under the total amount method for eligible PPP projects[16]. - Net profit attributable to shareholders decreased due to reduced toll revenue and service area business income, as well as increased financial expenses from the commencement of interest capitalization for the Wufengshan Bridge[16]. - Basic earnings per share for the year-to-date period showed a decline, reflecting the overall decrease in net profit attributable to shareholders[16]. - In the July to September period, the group achieved total operating revenue of approximately RMB 4,608.05 million, a year-on-year increase of 70.06%[22]. - Net profit attributable to shareholders for the July to September 2022 period was approximately RMB 1,253,606 thousand, representing an increase of about 11.60% compared to the same period last year[23]. - For the first nine months of 2022, total operating revenue reached approximately RMB 9,484,798 thousand, a year-on-year increase of about 19.23%[24]. - Operating profit for the first nine months was approximately RMB 3,913,975 thousand, a decrease of about 20.56% year-on-year, with net profit attributable to shareholders at approximately RMB 3,109,037 thousand[27]. Assets and Liabilities - The total assets at the end of the reporting period were RMB 76,676,946,117.37, reflecting a year-on-year increase of 3.31% from RMB 67,662,020,722.45[7]. - Total liabilities increased to RMB 39,438.89 million as of September 30, 2022, from RMB 36,609.25 million at the end of 2021[36]. - The company's total equity as of September 30, 2022, was RMB 37,238.06 million, a slight decrease from RMB 37,611.37 million at the end of 2021[37]. - Long-term investments rose to RMB 10,717.15 million as of September 30, 2022, compared to RMB 10,155.55 million at the end of 2021[34]. - The total cash outflow from financing activities increased to ¥32,578,795,033.01 in 2022, up from ¥21,980,338,745.93 in 2021, reflecting higher dividend and interest payments[46]. Cash Flow - The net cash flow from operating activities showed a decline of 6.40% compared to the previous period[6]. - Cash flow from operating activities decreased by 6.40% year-on-year, impacted by the decline in toll and service area business income due to the pandemic[16]. - Cash flow from operating activities generated a net amount of ¥4,016,242,502.77, a decrease from ¥4,290,901,509.18 in the previous year[45]. - Cash inflow from investment activities decreased to ¥11,697,230,664.63 in the first three quarters of 2022, down 20% from ¥14,609,761,960.03 in the same period of 2021[46]. - Net cash flow from investment activities improved to -¥2,689,267,770.59 in 2022, compared to -¥6,388,577,321.89 in 2021, indicating a reduction in cash outflow[46]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 32,177, with a total of 31,771 A-share shareholders and 406 H-share shareholders[21]. - The top shareholder, Jiangsu Transportation Holding Co., Ltd., holds 54.44% of the shares, totaling 2,742,578,825 shares[18]. Acquisitions and Investments - The company completed the acquisition of 100% equity in Jiangsu Yunshan Clean Energy Investment Holdings Co., Ltd. for RMB 2,457,000,000, enhancing its market position[8]. - The company completed the acquisition of 100% equity in Yunsong Qingneng for RMB 2,457 million, resulting in consolidation of the company in the financial statements[28]. - The company increased its stake in Jiangsu Longtan Bridge Co. from 53.6% to 57.33% by investing RMB 2,095.37 million in the Longtan Bridge North Connection Project, with total investment reaching RMB 1,446.17 million as of the reporting period[29]. Other Financial Metrics - The weighted average return on net assets was 9.62%, indicating a stable performance despite the challenges faced[6]. - Non-operating income included government subsidies amounting to RMB 7,471,476.70, primarily related to highway construction compensation[10]. - The company reported a loss of RMB 4,562,248.88 from the disposal of non-current assets during the reporting period[9]. - The average daily traffic flow on the Shanghai-Nanjing Expressway decreased by about 23.99% year-on-year, with average daily revenue dropping by about 15.68%[25].

Financial Performance - The company reported a significant increase in revenue, reaching RMB 1.2 billion, representing a 15% year-over-year growth[1]. - Operating revenue for the first half of 2022 was CNY 4,553,627,185.10, a decrease of 10.04% compared to CNY 5,061,764,712.00 in the same period last year[24]. - Net profit attributable to shareholders of the listed company was CNY 1,748,339,678.13, down 34.75% from CNY 2,679,329,242.91 year-on-year[24]. - Net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 1,628,796,407.56, a decrease of 31.85% compared to CNY 2,389,901,746.70 in the previous year[24]. - Net cash flow from operating activities was CNY 2,168,829,015.43, down 16.57% from CNY 2,599,589,338.93 in the same period last year[24]. - The company's operating revenue decreased by approximately 10.04% year-on-year to about RMB 4.554 billion, while total profit fell by approximately 37.00% to about RMB 2.164 billion[38]. - Net profit attributable to shareholders was approximately RMB 1.748 billion, with earnings per share of approximately RMB 0.347[38]. - The overall gross margin decreased by 14.03 percentage points to 42.11%[50]. User Engagement and Market Expansion - User data showed an increase in active users to 5 million, up 20% compared to the previous period[1]. - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share by the end of the fiscal year[1]. - The company provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 12%[1]. Investments and Acquisitions - Research and development investments increased by 30%, focusing on innovative technologies in the transportation sector[1]. - The company completed a strategic acquisition of a local competitor for RMB 500 million, enhancing its service capabilities[1]. - The company acquired 100% equity of Yunsong Qingneng for RMB 2,457,000 thousand, focusing on clean energy projects including solar and offshore wind power[43]. Operational Efficiency and Cost Management - A new partnership with a technology firm aims to improve operational efficiency, projected to reduce costs by 15%[1]. - The company plans to enhance its digital infrastructure, with an investment of RMB 200 million over the next year[1]. - The company has established a modern enterprise management structure to enhance operational efficiency and reduce risks[36]. Sustainability Initiatives - The management emphasized the importance of sustainability initiatives, aiming for a 40% reduction in carbon emissions by 2025[1]. - The group has implemented various pollution prevention measures and complies with environmental regulations, ensuring no units are classified as key polluters[123][124]. - The group achieved a 100% recycling rate for milling materials in asphalt pavement projects, recovering 4,048 cubic meters of waste in the first half of 2022[126]. Financial Health and Debt Management - Total assets at the end of the reporting period were CNY 70,067,364,005.70, an increase of 3.55% from CNY 67,662,020,722.45 at the end of the previous year[25]. - The total liabilities of the group at the end of the reporting period were approximately RMB 34,563,605,000, with a debt-to-asset ratio of about 49.33%, an increase of approximately 1.59 percentage points from the beginning of the period[82]. - The group has actively expanded financing channels and adjusted debt structure to lower financing costs, effectively controlling financing expenses during the reporting period[84]. Challenges and Risks - Net profit attributable to shareholders decreased due to negative impacts from the pandemic in Shanghai and Suzhou, leading to a decline in cash flow from operating activities[27]. - The company is facing risks from industry policy changes that could directly impact toll revenue, which is its main income source[109]. - The competitive landscape is becoming increasingly challenging, with the expansion of the highway network potentially reducing market share and revenue growth[110]. Future Plans and Strategic Focus - New product launches are expected to contribute an additional RMB 300 million in revenue over the next six months[1]. - The company plans to start the expansion of the southern section of the Xiyi Expressway in January 2023, with an estimated total investment of approximately RMB 7.75491 billion, expected to be completed by June 2026[39]. - The group plans to optimize its debt structure and reduce financing costs to support operational and development needs, with a registered short-term financing limit of approximately RMB 4 billion and unused credit facilities of no less than RMB 10 billion[113].

[Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) This chapter provides essential definitions for company abbreviations, group entities, project names, and accounting standards used throughout the report - The chapter defines common terms, including company abbreviations, group entities, road and bridge project names, professional terminology, and accounting standards, to facilitate understanding of the report content[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) [Company Profile and Key Financial Indicators](index=7&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section provides the company's fundamental information and a detailed analysis of its key financial performance indicators, highlighting the impact of external factors on results [Company Basic Information](index=7&type=section&id=%E4%B8%80%E3%80%81%20%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section details the company's fundamental information, including its names, legal representative, contact details, addresses, website, and multi-market stock listing information Stock Listing Information | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | Ninghu Expressway | 600377 | | H-share | The Stock Exchange of Hong Kong Limited | Jiangsu Ninghu Expressway | 00177 | | ADR | United States | JEXYY | 477373104 | [Key Accounting Data and Financial Indicators](index=8&type=section&id=%E4%B8%83%E3%80%81%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) During the reporting period, the company experienced significant declines in key financial metrics, including a 10.04% decrease in operating revenue and a 34.75% drop in net profit attributable to shareholders, primarily due to regional pandemic impacts Key Financial Performance Summary | Key Accounting Data | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,553,627,185.10 yuan | 5,061,764,712.00 yuan | -10.04 | | Net Profit Attributable to Shareholders of the Listed Company | 1,748,339,678.13 yuan | 2,679,329,242.91 yuan | -34.75 | | Net Profit Attributable to Shareholders of the Listed Company (Excluding Non-recurring Gains and Losses) | 1,628,796,407.56 yuan | 2,389,901,746.70 yuan | -31.85 | | Net Cash Flow from Operating Activities | 2,168,829,015.43 yuan | 2,599,589,338.93 yuan | -16.57 | | Basic EPS (Yuan/share) | 0.3470 | 0.5319 | -34.76 | | Weighted Average ROE (%) | 5.55 | 8.93 | Decreased by 3.38 percentage points | - The company attributed the performance decline primarily to the negative impact of the pandemic in Shanghai and Southern Jiangsu on its core road and bridge operations, alongside a decrease in the performance of associated road and bridge enterprises[21](index=21&type=chunk) - Non-recurring gains and losses totaled **119.5 million yuan** during the period, mainly from disposal of non-current assets, government grants, and fair value changes and investment income from held-for-trading financial assets[21](index=21&type=chunk)[22](index=22&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides an in-depth analysis of the company's operational performance, core competencies, and financial results, highlighting the impact of the pandemic and strategic initiatives [Industry and Principal Business Overview](index=10&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company, as Jiangsu Province's sole listed road and bridge entity, primarily invests in, constructs, operates, and manages toll roads and bridges within the province, while also expanding into "transportation+" and financial services - As of the end of the reporting period, the Group directly operates and invests in **17 road and bridge projects**, owning or holding stakes in over **910 kilometers** of open toll roads and bridges[23](index=23&type=chunk) - As of the end of the reporting period, the Group's total assets were approximately **70.067 billion yuan**, with net assets attributable to shareholders of the listed company around **30.402 billion yuan**[23](index=23&type=chunk) [Core Competitiveness Analysis](index=10&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competitiveness stems from its strategic location in the Yangtze River Delta, high-quality road and bridge assets, advanced operational concepts, professional management, comprehensive risk management, and robust multi-listing financing platform - Company's core competencies include: - **Unique Geographic Advantage**: Operating in the economically vibrant Yangtze River Delta region - **High-Quality Road and Bridge Assets**: Controlling or participating in **17 toll road and bridge projects**, all central to Jiangsu Province's expressway network - **Leading Operational Philosophy**: Focused on building digital expressways and smart transportation - **Professional Management Team**: Experienced and capable in operational management and capital operations - **Comprehensive Risk Management**: Established a large risk control system integrating legal, compliance, internal control, and risk coordination - **Strong Financing Platform**: Listed in Hong Kong, Shanghai, and New York, ensuring smooth financing channels[27](index=27&type=chunk) [Discussion and Analysis of Operations](index=11&type=section&id=%E4%B8%89%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) In the first half of 2022, the company navigated pandemic challenges by focusing on its core business, advancing investments, and entering the new energy sector, despite a 10.04% revenue decline and a 34.75% drop in net profit Financial Performance Summary | Financial Indicator | Amount in Reporting Period | YoY Change | | :--- | :--- | :--- | | Operating Revenue | Approx. **4.554 billion yuan** | -10.04% | | Total Profit | Approx. **2.164 billion yuan** | -37.00% | | Net Profit Attributable to Shareholders of the Listed Company | Approx. **1.748 billion yuan** | -34.75% | | EPS | Approx. **0.347 yuan** | - | | Net Operating Cash Flow | Approx. **2.169 billion yuan** | - | | Weighted Average ROE | 5.55% | - | [Road and Bridge Main Business](index=11&type=section&id=%E8%B7%AF%E6%A1%A5%E4%B8%BB%E4%B8%9A) The road and bridge main business was severely impacted by the pandemic, resulting in a 17.71% decrease in toll revenue, with core asset Huning Expressway experiencing a 36.84% drop in daily traffic and a 26.09% decline in daily revenue Road and Bridge Project Performance | Road and Bridge Project | Average Daily Traffic (vehicles/day) | Traffic YoY | Average Daily Revenue (thousand yuan/day) | Revenue YoY | | :--- | :--- | :--- | :--- | :--- | | Huning Expressway | 66,925 | -36.84% | 10,503.52 | -26.09% | | Ningchang Expressway | 35,619 | -27.80% | 2,200.38 | -20.12% | | Xicheng Expressway | 48,394 | -42.79% | 1,102.36 | -35.83% | | Jiangyin Bridge | 54,704 | -41.77% | 2,322.77 | -32.59% | | Sujiahang Expressway | 33,287 | -37.27% | 1,771.41 | -28.87% | | Yanjiang Expressway | 37,218 | -36.13% | 3,844.29 | -19.23% | - The company steadily advanced major project investments, with approximately **426 million yuan** invested in the Longtan Bridge project during the reporting period, bringing cumulative investment to **3.889 billion yuan**[28](index=28&type=chunk)[29](index=29&type=chunk) - The company plans to increase capital in Longtan Bridge Company for the construction of the North Connection Project and is actively preparing for the expansion of the southern section of Xiyi Expressway[28](index=28&type=chunk)[29](index=29&type=chunk) [Ancillary Businesses](index=13&type=section&id=%E9%85%8D%E5%A5%97%E4%B8%9A%E5%8A%A1) The Group's ancillary service business revenue decreased by 36.26% to 448 million yuan due to pandemic impacts, with service area leasing revenue down 57.03% and oil sales revenue down 32.08% - Ancillary service business revenue was approximately **448 million yuan**, a year-on-year decrease of **36.26%**[32](index=32&type=chunk) - Service area leasing revenue was approximately **48.75 million yuan**, a year-on-year decrease of **57.03%**; oil sales revenue was approximately **390 million yuan**, a year-on-year decrease of **32.08%**, with oil sales gross profit significantly down by **73.58%**[32](index=32&type=chunk) [New Energy Business](index=13&type=section&id=%E6%96%B0%E8%83%BD%E6%BA%90%E4%B8%9A%E5%8A%A1) To diversify profit sources and support green development, the company acquired 100% equity of Yunshan Qingneng Company for 2.457 billion yuan, officially entering the new energy sector with a focus on solar and wind power generation - The company invested **2.457 billion yuan** to acquire 100% equity of Yunshan Qingneng Company, entering the new energy sector, with the acquisition's industrial and commercial registration completed in July[32](index=32&type=chunk) [Real Estate Business](index=13&type=section&id=%E5%9C%B0%E4%BA%A7%E4%B8%9A%E5%8A%A1) The Group's real estate business recognized sales revenue of approximately 274 million yuan, a 9% increase, but gross profit significantly declined by 56.38% to 70.77 million yuan due to increased project settlement costs - Real estate business recognized sales revenue of approximately **274 million yuan**, a year-on-year increase of **9%**; however, operating gross profit decreased by **56.38%** year-on-year[32](index=32&type=chunk) [Other Businesses](index=13&type=section&id=%E5%85%B6%E4%BB%96%E4%B8%9A%E5%8A%A1) Other business segments showed mixed performance, with investment income from associated road and bridge companies decreasing by 41.47%, while investment income from associated financial companies increased by 243.24% - Investment income from associated road and bridge companies decreased by **41.47%**, while investment income from financial companies increased by **243.24%**[32](index=32&type=chunk) - Dividend income from other equity instruments and non-current financial assets was approximately **398 million yuan**, a year-on-year increase of **55.16%**[32](index=32&type=chunk) [Financial Analysis of Key Operating Conditions](index=14&type=section&id=%E5%9B%9B%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) This section provides a detailed analysis of changes in financial statement items, including a 10.04% decrease in operating revenue due to the pandemic, an 18.74% increase in operating costs, and a 63.78% surge in financial expenses Key Financial Statement Item Changes | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change (%) | Main Reasons for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 4,553,627,185.10 | 5,061,764,712.00 | -10.04 | Pandemic impact on toll and ancillary business revenue | | Operating Cost | 2,636,097,654.96 | 2,220,101,069.51 | 18.74 | Increased real estate project delivery costs and PPP project accounting treatment change | | Financial Expenses | 481,451,513.40 | 293,958,394.97 | 63.78 | Capitalization of Wufengshan Bridge loan interest and increase in interest-bearing debt | | Investment Income | 797,779,932.39 | 712,266,896.33 | 12.01 | Growth in financial investment dividends and wealth management income | | Fair Value Change Income | 35,105,006.37 | 314,007,325.26 | -88.82 | Year-on-year decrease in fair value growth of other non-current financial assets | [Corporate Governance](index=27&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86) This section outlines changes in the company's board of directors and senior management, along with its profit distribution policy [Changes in Directors, Supervisors, and Senior Management](index=27&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's board and senior management saw changes, including the resignation of the chairman and an independent non-executive director, and the appointment of new directors and a senior executive - Cheng Xiaoguang resigned as chairman due to work reasons, and Lin Hui resigned as an independent non-executive director due to term expiration[64](index=64&type=chunk) - Chen Yunjiang, Wang Feng, and Ge Yang were elected as new directors, and Li Peidong was appointed as a senior executive[64](index=64&type=chunk) [Profit Distribution Plan](index=27&type=section&id=%E4%B8%89%E3%80%81%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) The company has no proposed profit distribution or capital reserve capitalization plan for the first half of 2022 - Half-year proposed profit distribution plan and capital reserve capitalization plan: Not applicable[65](index=65&type=chunk) [Environmental and Social Responsibility](index=29&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E7%8E%AF%E5%A2%83%E4%B8%8E%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB) This section details the company's environmental management practices, pollution prevention measures, and commitment to green development, including its non-status as a key polluting entity [Environmental Information](index=29&type=section&id=%E4%B8%80%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%83%85%E5%86%B5) The company is not classified as a key polluting entity and has implemented an environmental management system with various measures to prevent pollution and promote green, low-carbon maintenance technologies - The company is not classified as a key polluting entity and strictly adheres to environmental regulations, having established a long-term environmental protection management system[69](index=69&type=chunk) - During the reporting period, the company revised five environmental management systems based on ISO 14001 to strengthen pollution prevention and control for exhaust gas, wastewater, solid waste, and noise[72](index=72&type=chunk) - The company is committed to building a green transportation business and effectively reducing carbon emissions by promoting green and low-carbon maintenance technologies and exploring new energy investments[74](index=74&type=chunk) [Significant Matters](index=31&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section covers the company's major related-party transactions, significant contracts, and other important events, including a key acquisition and an accounting estimate change [Major Related Party Transactions](index=32&type=section&id=%E5%8D%81%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E2%97%A0%E5%85%B3%E8%BF%9E%E4%BA%A4%E6%98%93) This section discloses various related-party transactions, including the acquisition of Yunshan Qingneng Company for 2.457 billion yuan and the termination of the planned acquisition of Turkey's ICA company - The company acquired 100% equity of Yunshan Qingneng Company from its controlling shareholder, Jiangsu Communications Holding Co., Ltd., for **2.457 billion yuan**, with the industrial and commercial registration completed after the reporting period[93](index=93&type=chunk) - The company terminated its plan to acquire a **51%** stake in Turkey's ICA company and related shareholder loans due to the failure of transaction parties to reach a consensus on refinancing arrangements[96](index=96&type=chunk) [Major Contracts and Their Performance](index=48&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) This section details the company's service area leasing status, impacted by the pandemic, and its guarantee for a wholly-owned subsidiary, with a remaining guarantee balance of 120 million yuan - Due to the ongoing impact of the pandemic, Huning Expressway's Huanglishu, Xianrenshan, and Meicun service areas terminated their original lease contracts on December 31, 2021, entering a transitional operating period maintained by the original tenants[105](index=105&type=chunk) - The company provided a maximum guarantee of **670 million yuan** for its wholly-owned subsidiary, Factoring Company, with a guarantee balance of **120 million yuan** at the end of the reporting period, representing **0.34%** of the company's net assets[106](index=106&type=chunk) [Other Significant Matters](index=51&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) This section highlights the company's adoption of new accounting standards and a significant change in accounting estimate for highway operating rights amortization, which positively impacted net profit - The company changed its accounting estimate for the amortization of highway operating rights from April 1, 2022, adopting adjusted future remaining traffic flow for calculation, which is treated prospectively[109](index=109&type=chunk) Impact of Accounting Estimate Change on Consolidated Financial Statements | Accounting Estimate Change Impact | Impact Amount on Consolidated Financial Statements (Yuan) | | :--- | :--- | | Increase in Intangible Assets | 78,030,141.99 | | Decrease in Operating Costs | 78,030,141.99 | | Increase in Net Profit Attributable to Parent Company | 49,802,081.81 | [Share Changes and Shareholder Information](index=52&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section details the company's stable share capital structure and shareholder composition, including the total number of shareholders and major equity holders [Shareholder Information](index=52&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) During the reporting period, the company's total share capital and equity structure remained unchanged, with 29,868 common shareholders and Jiangsu Communications Holding Co., Ltd. as the largest shareholder - As of June 30, 2022, the total number of common shareholders was **29,868**[113](index=113&type=chunk) Major Shareholders | Shareholder Name | Shares Held at Period End | Proportion (%) | | :--- | :--- | :--- | | Jiangsu Communications Holding Co., Ltd. | 2,742,578,825 | 54.44 | | China Merchants Expressway Network & Technology Holdings Co., Ltd. | 589,059,077 | 11.69 | | Mitsubishi UFJ Financial, Group Inc. | 146,754,597 | 2.91 | | BlackRock, Inc. | 134,467,514 | 2.67 | [Preferred Shares Information](index=55&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section confirms that the company has no preferred shares during the reporting period - The company had no preferred shares during this reporting period[120](index=120&type=chunk) [Bond Information](index=56&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section provides an overview of the company's outstanding corporate bonds and non-financial enterprise debt financing instruments, along with an analysis of key solvency ratios [Overview of Various Bonds](index=56&type=section&id=%E4%B8%80%E3%80%81%E4%BC%81%E4%B8%9A%E5%80%BA%E5%80%BA%E5%88%B8%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%80%BA%E5%88%B8%E5%92%8C%E9%9D%9E%E9%87%91%E8%9E%8D%E4%BC%81%E4%B8%9A%E5%80%BA%E5%8A%A1%E8%9E%8D%E8%B5%84%E5%B7%A5%E5%85%B7) This section details the company's outstanding corporate bonds and interbank debt financing instruments, noting a slight increase in asset-liability ratio and a decrease in profit-related solvency indicators due to pandemic impacts - As of the end of the reporting period, the company had **3 outstanding corporate bonds**, totaling **2.8 billion yuan**[123](index=123&type=chunk) - As of the end of the reporting period, the company's outstanding interbank non-financial enterprise debt financing instruments included **4 billion yuan** in medium-term notes and **7.701 billion yuan** in super short-term commercial papers[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) Key Bond-Related Financial Indicators | Key Indicator | End of Current Period / Current Period | End of Prior Year / Prior Period | Change | | :--- | :--- | :--- | :--- | | Asset-Liability Ratio (%) | 49.33 | 47.74 | Increased by 1.59 percentage points | | Interest Coverage Ratio | 5.4633 | 8.2690 | -33.93% | | Cash Interest Coverage Ratio | 6.4326 | 8.7618 | -26.58% | [Financial Report](index=63&type=section&id=%E7%AC%AC%E5%8D%81%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section presents the company's unaudited consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with key accounting policies and detailed notes [Financial Statements](index=63&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the unaudited consolidated and parent company financial statements, showing total assets of 70.067 billion yuan and total liabilities of 34.564 billion yuan as of June 30, 2022 Consolidated Financial Statement Summary (as of June 30, 2022 / Jan-Jun 2022) | Statement Item (Consolidated) | 2022年6月30日 / 2022年1-6月 (RMB Yuan) | | :--- | :--- | | **Balance Sheet:** | | | Total Assets | 70,067,364,005.70 | | Total Liabilities | 34,563,605,458.69 | | Equity Attributable to Parent Company Owners | 30,402,137,677.62 | | **Income Statement:** | | | Operating Revenue | 4,553,627,185.10 | | Net Profit Attributable to Parent Company Shareholders | 1,748,339,678.13 | | **Cash Flow Statement:** | | | Net Cash Flow from Operating Activities | 2,168,829,015.43 | [Significant Accounting Policies and Estimates](index=75&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section outlines the company's financial statement preparation basis, accounting standards, and key accounting policies and estimates, including the amortization of highway operating rights and financial instrument classification - The company's financial statements are prepared on a going concern basis, adhering to Chinese Enterprise Accounting Standards, with management confident in sufficient credit lines despite current liabilities exceeding current assets[156](index=156&type=chunk)[157](index=157&type=chunk)[159](index=159&type=chunk) - Core accounting policies include: amortization of highway operating rights using the traffic flow method; determination of real estate development product costs using the specific identification method; and classification of financial assets based on business model and contractual cash flow characteristics[187](index=187&type=chunk)[203](index=203&type=chunk)[172](index=172&type=chunk) - A significant accounting estimate change was implemented from April 1, 2022, involving the use of adjusted future remaining traffic flow to calculate the amortization of highway operating rights[233](index=233&type=chunk) [Notes to Consolidated Financial Statement Items](index=99&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes on key consolidated financial statement items, including a significant increase in trading financial assets to 4.347 billion yuan and intangible assets primarily comprising highway operating rights at 36.791 billion yuan - The ending balance of trading financial assets was **4.347 billion yuan**, a significant increase from **2.647 billion yuan** at the beginning of the period, primarily due to increased investments in wealth management products[238](index=238&type=chunk) - The ending balance of long-term equity investments was **9.935 billion yuan**, mainly comprising investments in associated companies such as Yanjiang Company, Zijin Trust, Suzhou Expressway Management, and Yangtze Bridge Company[271](index=271&type=chunk)[272](index=272&type=chunk) - The ending book value of intangible assets was **36.791 billion yuan**, with highway operating rights (in operation) accounting for **34.051 billion yuan**[292](index=292&type=chunk)[293](index=293&type=chunk) [Interests in Other Entities](index=142&type=section&id=%E4%B9%9D%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) This section discloses the company's equity interests in subsidiaries, joint ventures, and associates, highlighting significant non-wholly owned subsidiaries and key associates contributing to investment income - The company holds interests in several significant non-wholly owned subsidiaries, such as Guangjingsicheng Company (**85%** stake) and Wufengshan Bridge Company (**64.5%** stake), with minority interests totaling **5.102 billion yuan**[379](index=379&type=chunk)[381](index=381&type=chunk) - Important associated companies include Yangtze Bridge Company (**26.66%** stake), Suzhou Expressway Management Company (**23.86%** stake), Zijin Trust (**20.00%** stake), and Yanjiang Company (indirect **25.15%** stake)[385](index=385&type=chunk) [Related Parties and Related Party Transactions](index=150&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%20%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) This section provides a detailed disclosure of the company's related party relationships and various related party transactions, emphasizing adherence to market pricing and proper approval procedures - The company's parent company and ultimate controlling party is Jiangsu Communications Holding Co., Ltd., holding a **54.44%** stake[405](index=405&type=chunk) - During the reporting period, the largest related party procurement item was road maintenance fees paid to Modern Road and Bridge Company, amounting to **282 million yuan**[409](index=409&type=chunk) - During the reporting period, the company engaged in deposit and loan transactions with the related party Finance Company, with an ending deposit balance of **473 million yuan** and a loan balance of **631 million yuan**[562](index=562&type=chunk)[563](index=563&type=chunk)

Financial Performance - Operating revenue for the first quarter reached CNY 2,578,308,102.06, representing a year-on-year increase of 7.77%[3] - Net profit attributable to shareholders of the listed company was CNY 795,301,448.02, a decrease of 30.49% compared to the same period last year[3] - Basic earnings per share were CNY 0.1579, reflecting a decline of 30.47% year-on-year[3] - The group achieved an operating profit of approximately RMB 1,034,888 thousand in Q1 2022, a decrease of 30.57% year-on-year, with net profit attributable to shareholders of approximately RMB 795,301 thousand, resulting in earnings per share of approximately RMB 0.1579, down 30.47% year-on-year[18] - Operating profit for Q1 2022 was ¥1,034,887,586.26, down 30.6% from ¥1,490,608,891.01 in Q1 2021[29] - Net profit attributable to shareholders for Q1 2022 was ¥785,441,990.66, a decrease of 31.9% from ¥1,154,108,744.03 in Q1 2021[30] Cash Flow - The net cash flow from operating activities amounted to CNY 1,102,847,758.55, an increase of 6.25% compared to the previous year[3] - Cash flow from operating activities for Q1 2022 was ¥1,102,847,758.55, an increase from ¥1,037,934,638.41 in Q1 2021[34] - Cash inflow from investment activities for Q1 2022 was ¥1,028,353,849.98, a decrease from ¥2,288,839,274.39 in Q1 2021[35] - Cash outflow from investment activities totaled $1,813,849,634.39 in Q1 2022, a decrease of 56.2% compared to $4,139,681,039.57 in Q1 2021[36] - Net cash flow from financing activities was negative $325,088,712.11 in Q1 2022, contrasting with a positive $983,672,977.99 in Q1 2021[37] - The net increase in cash and cash equivalents was negative $7,736,737.97 in Q1 2022, compared to a positive increase of $170,765,851.22 in Q1 2021[38] Assets and Liabilities - Total assets at the end of the reporting period were CNY 68,629,183,231.63, up 1.43% from the end of the previous year[3] - Total assets as of March 31, 2022, amounted to ¥68,629,183,231.63, compared to ¥67,662,020,722.45 as of December 31, 2021[27] - Total liabilities decreased from RMB 32,302,127,737.00 as of December 31, 2021, to RMB 31,845,998,872.84 as of March 31, 2022[26] - The company reported a total of RMB 12,296,623,275.50 in current liabilities as of March 31, 2022, down from RMB 12,969,343,154.73 as of December 31, 2021[25] - Long-term borrowings remained stable at approximately RMB 13,027,823,778.95 as of March 31, 2022, compared to RMB 13,028,697,541.04 as of December 31, 2021[26] Business Segments - The toll road business generated revenue of approximately RMB 1,823,287 thousand, a decrease of 7.86% compared to the same period last year[13] - The real estate business reported operating revenue of approximately RMB 222,296 thousand, a significant increase of 199.09% year-on-year[14] - The oil sales segment achieved revenue of approximately RMB 281,621 thousand, an increase of 10.68% year-on-year, despite a 58.88% drop in gross profit margin[14] - The average daily revenue for the Shanghai-Nanjing Expressway Jiangsu section was approximately RMB 12,006.38 thousand, down 15.29% year-on-year[13] - The group's average daily traffic volume for the Shanghai-Nanjing Expressway was 86,544 vehicles, a decrease of 18.08% year-on-year[16] - The Wuxi Ring Taihu Expressway saw a daily revenue increase of 45.21%, with an average daily income of RMB 215.75 thousand[15] - The average daily revenue for the Changji Expressway increased by 34.34% year-on-year, reaching RMB 255.12 thousand[17] Shareholder Information - The company reported a total of 30,805 ordinary shareholders at the end of the reporting period[8] - The Jiangsu Transportation Holding Co., Ltd. holds 2,742,578,825 shares, representing the largest shareholding in the company[11] - The company has not identified any related party relationships among the top shareholders during the reporting period[12] Investment Activities - The company decided to terminate the acquisition of a toll bridge project in Turkey due to failure to reach consensus on refinancing arrangements, with the termination agreement signed on March 9, 2022[19] - The company approved an investment of up to RMB 698,458.72 thousand for the construction of the Longtan Bridge North Connection Project, increasing its stake in Jiangsu Longtan Bridge Co., Ltd. from 53.6% to 57.33%[20] - The registered capital of Suzhou Highway Management Co., Ltd. increased to RMB 254,339.29 thousand, resulting in a decrease in the company's shareholding from 30.01% to 23.86%[21]

Financial Performance - The company achieved a net profit attributable to shareholders of approximately RMB 4,178,794 thousand, with earnings per share of approximately RMB 0.8295[2] - The net profit attributable to shareholders for 2021 was RMB 1.2 billion, reflecting a growth of 20% compared to 2020[29] - The company achieved an operating revenue of RMB 13.793 billion in 2021, a significant increase of 71.71% compared to RMB 8.032 billion in 2020[39] - The company’s operating cash flow was RMB 5.467 billion, up from RMB 3.137 billion in 2020, indicating a growth of 75.5%[39] - The company reported a significant increase in investment income, amounting to approximately CNY 1,201.53 million, a growth of 94.28% compared to the previous year[57] - The company’s total operating revenue for the reporting period reached approximately CNY 13,792,587,000, representing a year-on-year increase of about 71.71% due to the recovery of toll business and increased housing delivery scale[59] - The company reported a significant increase in maintenance costs for the Xicheng Expressway due to major repairs, impacting the gross profit margin of toll operations[61] - The company’s total assets reached ¥67,682,020,722.45, an increase of 10.75% from the previous period[82] Dividends and Shareholder Returns - The board proposed a cash dividend of RMB 0.46 per share (including tax), based on a total share capital of 5,037,747,500 shares, expected to be distributed by August 5, 2022[2] - The company has maintained a high dividend payout ratio, ensuring stable returns for shareholders[44] - The company strictly adhered to its cash dividend policy, ensuring the protection of minority shareholders' rights[190] Revenue Growth and Projections - Future guidance indicates a projected revenue growth of 10-12% for 2022, driven by increased traffic and new projects[29] - Future outlook indicates a projected revenue growth of 10% for the upcoming fiscal year, driven by strategic initiatives and market expansion[139] - Future outlook indicates a projected revenue growth of 15% for the upcoming fiscal year, driven by strategic initiatives and market expansion[143] Operational Efficiency and Investments - The company aims to improve operational efficiency by 5% through digital transformation initiatives in the coming year[29] - The company is investing RMB 300 million in new technology for toll collection systems to enhance efficiency and user experience[29] - The company is focused on digital highways and smart transportation, aiming to enhance operational efficiency and reduce costs[52] - The company plans to enhance its research and development budget by 20% to accelerate innovation[139] Risk Management and Compliance - The company has conducted a detailed analysis of potential risks in its future business operations and development, as outlined in the annual report[3] - The company is focused on enhancing its risk management framework to adapt to new market conditions and ensure sustainable development[53] - The company’s risk management and internal control systems are deemed sufficient and effectively implemented, with no significant management risks identified[176] Strategic Initiatives and Expansion - The company plans to expand its highway network by 10% over the next three years, focusing on strategic locations in Jiangsu province[29] - Jiangsu Expressway is exploring potential mergers and acquisitions to strengthen its market position in the region[29] - The company has initiated a new public-private partnership (PPP) project aimed at developing a major expressway segment by 2023[29] - The company is exploring various financing methods, including convertible bonds and overseas bonds, to support its development strategy[111] Corporate Governance - The company has established various governance systems to enhance corporate governance, including rules for shareholder meetings and board operations[126] - The company has independent financial departments and accounts, ensuring financial decisions are made autonomously without interference from the controlling shareholder[123] - The company has implemented measures to protect the rights of minority shareholders, including independent vote counting and public solicitation of shareholder voting rights[134] Employee and Management Practices - The total number of employees in the parent company and major subsidiaries is 4,822, with 3,862 in the parent company and 960 in subsidiaries[178] - The total salary expenditure for employees amounts to approximately RMB 772.015 million[180] - The company has implemented a performance evaluation system to enhance employee motivation and engagement[180] Market Conditions and Challenges - The company faces industry policy risks that could directly impact toll revenue, which is its main income source[113] - Increased competition from alternative routes and expanding railway networks in Jiangsu Province may affect market share and revenue growth[114] - Investment risks in new road and bridge projects are influenced by economic and political factors, potentially leading to lower-than-expected returns[115] Sustainability and Innovation - A commitment to sustainability initiatives is being prioritized, with goals to reduce carbon emissions by 25% by 2025[139] - The management team emphasizes the importance of digital transformation in driving future growth and customer engagement[139] Financial Strategy and Capital Management - The company plans to issue medium-term notes not exceeding RMB 9 billion and short-term financing bonds not exceeding RMB 8 billion, subject to board approval[174] - The company’s total asset-liability ratio will be maintained below 55% as part of its financing strategy[174]

公司代码：600377 公司简称：宁沪高速 2021 年年度报告 江苏宁沪高速公路股份有限公司 2021 年年度报告 1 / 223 2021 年年度报告 重要提示 一、 本公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真实性、准确性、 完整性，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、 公司全体董事出席董事会会议。 三、 毕马威华振会计师事务所（特殊普通合伙）为本公司出具了标准无保留意见的审计报告。 本公司年度财务报告按中国企业会计准则编制，并同时遵循香港公司条例及香港上市规则 的披露要求。 四、 公司负责人成晓光、主管会计工作负责人戴倩及会计机构负责人（会计主管人员）姚群芳声 明：保证年度报告中财务报告的真实、准确、完整。 五、 董事会决议通过的本报告期利润分配预案或公积金转增股本预案 本报告期，本公司实现归属于母公司股东的净利润约为人民币4,178,794千元，每股盈利约 0.8295元，本公司董事会以总股本5,037,747,500股为基数，提议向全体股东派发现金股息每股 人民币0.46元（含税）。拟派股息预期于2022年8月5日前派付。 六、 前瞻性陈述 ...

Group 1: Investor Research Overview - The company conducted a telephone survey with investors, including Industrial Securities and Changjiang Securities, involving the board secretary, securities representative, and financial manager [2] Group 2: 2021 Financial Performance - The company reported a revenue of approximately RMB 12.728 billion in 2021, a year-on-year increase of about 58.46% [3] - The total profit for the year was approximately RMB 5.410 billion, reflecting a year-on-year growth of about 67.30% [3] - The net profit attributable to shareholders was around RMB 4.218 billion, marking a year-on-year increase of approximately 71.19% [3] Group 3: Revenue Growth Drivers - Revenue growth was primarily driven by a strong recovery in toll revenue from road and bridge operations and increased sales from real estate projects [4] - The company implemented accounting standards that recognized zero-profit construction income for certain government and social capital cooperation (PPP) projects, impacting revenue recognition [4] Group 4: Traffic Volume and Economic Context - In 2021, Jiangsu Province's GDP reached RMB 11.6 trillion, growing approximately 8.6% year-on-year, contributing to stable traffic volume across the company's road and bridge projects [5] - The company’s projects are strategically located in a busy economic area, supporting consistent traffic flow [5] Group 5: Project Development Status - Key projects like Yichang Expressway and Wufengshan Bridge were successfully opened in 2021, while the Longtan Bridge is expected to be completed by 2024 [6] - The traffic volume for Wufengshan Bridge has been affected by the pandemic and the diversion of freight traffic due to the expansion of the Jinghu Expressway, but is expected to grow post-expansion [6] Group 6: Industry Outlook - The national GDP for 2021 was approximately RMB 114.37 trillion, with an 8.1% year-on-year growth, indicating a positive economic recovery [7] - The road transport industry is deemed essential for the national economy, with a strong correlation to macroeconomic conditions, suggesting favorable long-term growth prospects [7] Group 7: Future Development Strategy - As the only listed road and bridge company in Jiangsu Province, the company aims to maintain stability while pursuing growth, focusing on core business development and enhancing management practices [8]

[Key Financial Data](index=1&type=section&id=Item%20I.%20Key%20Financial%20Data) [Key Accounting Data and Financial Indicators](index=1&type=section&id=Item%20I.%28I%29Key%20Accounting%20Data%20and%20Financial%20Indicators) Q3 2021 saw revenue decline 3.23% and net profit 21.33% due to pandemic, yet year-to-date (Jan-Sep) revenue surged 43.09% and net profit 99.87%, reflecting strong recovery Key Financial Indicators for Q3 and Jan-Sep 2021 | Indicator | Current Period (Q3 2021) | YoY Change (%) | Year-to-Date (Jan-Sep 2021) | YoY Change (Jan-Sep) (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2.60 billion CNY | -3.23% | 7.66 billion CNY | 43.09% | | Net Profit Attributable to Parent Company Shareholders | 1.11 billion CNY | -21.33% | 3.79 billion CNY | 99.87% | | Net Cash Flow from Operating Activities | 1.55 billion CNY | 3.91% | 4.15 billion CNY | 73.93% | | Basic EPS (CNY/share) | 0.2201 | -21.33% | 0.7520 | 99.87% | | Total Assets (Period-end) | 67.51 billion CNY | 10.50% (vs. prior year-end) | - | - | | Total Equity Attributable to Parent Company Shareholders (Period-end) | 29.99 billion CNY | 6.29% (vs. prior year-end) | - | - | [Non-recurring Gains and Losses Items and Amounts](index=2&type=section&id=Item%20I.%28II%29Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Year-to-date, the company's total non-recurring gains and losses amounted to CNY 356 million, primarily driven by fair value changes and investment income from financial assets and liabilities totaling CNY 456 million, with government grants also contributing approximately CNY 19 million Non-recurring Gains and Losses Items (Year-to-Date) | Item | Amount (Year-to-Date, CNY) | Description | | :--- | :--- | :--- | | Gains/losses from fair value changes and investment income on financial assets/liabilities held for trading | 456,028,067.04 | Mainly fair value changes and dividends from other non-current financial assets held by subsidiary Ninghu Investment Company | | Government grants recognized in current profit/loss | 18,949,829.22 | Mainly construction compensation for Ningchang Expressway, VAT additional deduction, and provincial border toll station renovation grants | | **Total** | **355,865,598.46** | - | [Analysis of Major Financial Indicator Changes](index=3&type=section&id=Item%20I.%28III%29Analysis%20of%20Major%20Accounting%20Data%20and%20Financial%20Indicator%20Changes) The company's Q3 net profit attributable to parent company shareholders decreased by 21.33% year-on-year, primarily due to the late July pandemic outbreak impacting core road and bridge operations and ancillary services, alongside increased amortization and financial expenses from new road and bridge projects being capitalized - Q3 net profit attributable to parent company shareholders decreased by **21.33%** year-on-year, primarily due to the late July pandemic impact and increased amortization and financial expenses from new road and bridge projects commencing operations[8](index=8&type=chunk) [Shareholder Information](index=3&type=section&id=Item%20II.%20Shareholder%20Information) [Shareholding Status](index=3&type=section&id=Item%20II.%28I%29Total%20Number%20of%20Common%20Shareholders%2C%20Preferred%20Shareholders%20with%20Restored%20Voting%20Rights%2C%20and%20Top%20Ten%20Shareholders%27%20Holdings) As of the reporting period end, the company had 31,666 shareholders, with a stable and concentrated equity structure where the top two state-owned legal entity shareholders, Jiangsu Communications Holding Co., Ltd. and China Merchants Expressway Network Technology Holdings Co., Ltd., collectively held over 66%, indicating strong control - As of the reporting period end, the company had **31,258 A-share shareholders** and **408 H-share shareholders**, totaling **31,666 shareholders**[10](index=10&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Shareholder Type | Shareholding Percentage (%) | | :--- | :--- | :--- | | Jiangsu Communications Holding Co., Ltd. | State-owned Legal Entity | 54.44 | | China Merchants Expressway Network Technology Holdings Co., Ltd. | State-owned Legal Entity | 11.69 | | Mitsubishi UFJ Financial Group, Inc. | Overseas Legal Entity | 2.91 | | BlackRock, Inc. | Overseas Legal Entity | 2.63 | | JPMorgan Chase & Co. | Overseas Legal Entity | 2.14 | [Other Noteworthy Matters](index=4&type=section&id=Item%20III.%20Other%20Noteworthy%20Matters) [Business Progress](index=4&type=section&id=Item%201.Business%20Progress) The company's business experienced a brief pandemic impact in Q3, but overall year-to-date performance benefited from a strong recovery in toll collection, driving significant revenue and profit growth, with new projects also contributing revenue [Business Progress for July-September](index=4&type=section&id=Item%20%281%29Business%20Progress%20for%20July-September) In Q3 2021, total revenue decreased by 3.23% to CNY 2.60 billion due to late July pandemic impacts, with core toll and ancillary services revenue declining, while increased amortization and maintenance costs from new road and bridge projects led to a 21.33% year-on-year drop in net profit attributable to parent company shareholders Q3 2021 Revenue by Business Segment | Business Segment | Revenue (K CNY) | YoY Change (%) | | :--- | :--- | :--- | | Toll Collection Business | 2,080,575 | -4.79% | | Ancillary Services | 323,183 | -7.67% | | Real Estate Business | 166,346 | +29.74% | | Other Businesses | 27,533 | +30.88% | | **Total** | **2,597,636** | **-3.23%** | - Q3 operating costs increased by **19.16%** year-on-year, primarily due to increased amortization of highway operating rights from new road and bridge projects, alongside higher road maintenance and real estate business costs[14](index=14&type=chunk) [Business Progress for January-September](index=5&type=section&id=Item%20%282%29Business%20Progress%20for%20January-September) In the first three quarters of 2021, the company's business strongly recovered from pandemic impacts, with cumulative revenue reaching CNY 7.66 billion, up 43.09% year-on-year, primarily driven by a 54.73% increase in road toll revenue, leading to a 99.87% surge in net profit attributable to parent company shareholders despite higher costs from new project operations - In the first three quarters, road toll revenue was approximately **CNY 6.13 billion**, a **54.73%** year-on-year increase, serving as the primary driver for total revenue growth[15](index=15&type=chunk) Daily Average Revenue of Major Road and Bridge Projects (Jan-Sep 2021, K CNY/day) | Project | Jan-Sep 2021 | Prior Period | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Huning Expressway | 14,016.37 | 9,505.52 | 47.46% | | Ningchang Expressway | 2,667.29 | 1,648.67 | 61.78% | | Xiyi Expressway | 1,157.53 | 635.76 | 82.07% | | Jiangyin Bridge | 3,452.37 | 2,437.84 | 41.62% | | Yanjiang Expressway | 4,792.15 | 3,048.24 | 57.21% | - In the first three quarters, net profit attributable to parent company shareholders was approximately **CNY 3.79 billion**, a **99.87%** year-on-year increase[18](index=18&type=chunk) [Financial Indicator Changes](index=6&type=section&id=Item%202.Financial%20Indicator%20Changes) The company's financial position significantly changed due to major project commissioning and capital operations, with construction in progress decreasing and transferring to intangible and fixed assets, while liabilities increased from bond and loan financing to support projects; strong revenue and investment income drove profit doubling, and operating cash flow improved significantly despite reduced financing cash inflows [Reasons for Significant Balance Sheet Item Changes](index=6&type=section&id=Reasons%20for%20Significant%20Balance%20Sheet%20Item%20Changes) As of the reporting period end, several balance sheet items significantly changed from the beginning of the year, primarily due to the completion and commissioning of Yichang Expressway and Wufengshan Bridge, leading to an 86.54% decrease in Construction in Progress, transferred to Intangible Assets (+66.91%) and Fixed Assets (+31.50%); Long-term Equity Investments also grew 35.43% from new investment in Zijin Trust, and Bonds Payable increased 103.03% due to new bond issuance Major Balance Sheet Changes (vs. Prior Year-end) | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Construction in Progress | -86.54% | Yichang Expressway and Wufengshan Bridge completed and commissioned, transferring construction in progress | | Intangible Assets | +66.91% | Yichang Expressway and Wufengshan Bridge completed and commissioned, transferred from construction in progress | | Fixed Assets | +31.50% | Yichang Expressway and Wufengshan Bridge completed and commissioned, transferred from construction in progress | | Long-term Equity Investments | +35.43% | New investment in Zijin Trust and increased investment income from associates | | Bonds Payable | +103.03% | Issued CNY 1 billion corporate bonds and CNY 1 billion medium-term notes during the reporting period | | Financial Assets Held for Trading | +44.09% | Increased wealth management products held at period-end compared to period-start | [Reasons for Significant Income Statement Item Changes (Jan-Sep)](index=7&type=section&id=Reasons%20for%20Significant%20Income%20Statement%20Item%20Changes%20%28Jan-Sep%29) The income statement for the first three quarters showed strong year-on-year growth, with operating revenue up 43.09% due to recovery in toll road business, and investment income and fair value change gains surging 125.40% and 427.72% respectively, driven by associate performance and financial asset revaluation, while financial expenses increased 51.08% due to interest capitalization for new projects Major Income Statement Changes (YoY) | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Operating Revenue | +43.09% | Strong recovery of toll road business from prior year's pandemic and free toll policies | | Financial Expenses | +51.08% | New expressways commenced operation, leading to capitalization of borrowing costs | | Gains from Fair Value Changes | +427.72% | Increased fair value changes in other non-current financial assets held by subsidiaries | | Investment Income | +125.40% | Significant increase in operating performance of associates, contributing to higher investment income | [Analysis of Cash Flow Statement Item Changes (Jan-Sep)](index=7&type=section&id=Analysis%20of%20Cash%20Flow%20Statement%20Item%20Changes%20%28Jan-Sep%29) The cash flow structure changed in the first three quarters, with net cash flow from operating activities surging 73.93% year-on-year due to strong toll revenue recovery, while net cash flow from financing activities decreased 64.47% primarily due to reduced borrowing compared to the prior year's pandemic-driven increase and higher dividend payments Major Cash Flow Statement Changes (YoY) | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | +73.93% | Strong recovery in toll revenue and commissioning of new road and bridge projects | | Net Cash Flow from Financing Activities | -64.47% | Increased borrowing in prior period due to pandemic, reduced borrowing and increased dividend payments in current period | [Progress of Significant Matters](index=8&type=section&id=Item%203.Progress%20of%20Significant%20Matters%2C%20Their%20Impact%20and%20Analysis%20of%20Solutions) During the reporting period, the company actively pursued several major capital operations, including initiating termination agreement negotiations for the Turkey road and bridge project, increasing its stake in Jiangsu Bank, completing a CNY 1.99 billion capital injection into Zijin Trust for a 20% stake, and divesting part of its Kuaile Company equity to optimize its investment portfolio - The company decided to negotiate a **Termination Agreement** with Turkey's IC Company regarding the ICA project[24](index=24&type=chunk) - The company received approval to increase its stake in Jiangsu Bank and has cumulatively increased its holdings by **141 million shares**, resulting in a total **3.90%** stake in Jiangsu Bank[24](index=24&type=chunk) - The company completed a **CNY 1.99 billion** capital increase in Zijin Trust, acquiring a **20%** equity stake, with industrial and commercial registration changes finalized[24](index=24&type=chunk) - The company transferred **11.98%** of its shares in Kuaile Company to Jiangsu Communications Holding, reducing its post-transfer stake to **21.22%**[24](index=24&type=chunk)[25](index=25&type=chunk) [Quarterly Financial Statements](index=9&type=section&id=Item%20IV.%20Quarterly%20Financial%20Statements) [Type of Audit Opinion](index=9&type=section&id=Item%20IV.%28I%29Type%20of%20Audit%20Opinion) The financial statements for this quarter are unaudited - The third-quarter financial statements are **unaudited**[3](index=3&type=chunk)[26](index=26&type=chunk) [Financial Statements](index=9&type=section&id=Item%20IV.%28II%29Financial%20Statements) This section presents the unaudited consolidated balance sheet as of September 30, 2021, and the consolidated income statement and cash flow statement for January-September 2021 [Consolidated Balance Sheet](index=9&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2021, the company's total assets were CNY 67.51 billion, up 10.50% from the beginning of the year; total liabilities were CNY 32.57 billion, up 16.14%; and total equity attributable to parent company shareholders was CNY 29.99 billion, up 6.29% Consolidated Balance Sheet Summary (September 30, 2021) | Item | Amount (CNY) | | :--- | :--- | | Total Assets | 67,510,588,317.17 | | Total Liabilities | 32,573,814,721.22 | | Total Equity Attributable to Parent Company Shareholders | 29,985,198,962.07 | [Consolidated Income Statement](index=11&type=section&id=Consolidated%20Income%20Statement) In the first three quarters of 2021, the company achieved total operating revenue of CNY 7.66 billion, up 43.09% year-on-year; net profit attributable to parent company shareholders was CNY 3.79 billion, up 99.87%; and basic earnings per share were CNY 0.7520 Consolidated Income Statement Summary (Jan-Sep 2021) | Item | Amount (CNY) | | :--- | :--- | | Total Operating Revenue | 7,659,400,764.81 | | Operating Profit | 4,843,853,851.60 | | Net Profit Attributable to Parent Company Shareholders | 3,788,305,556.08 | | Basic EPS (CNY/share) | 0.7520 | [Consolidated Cash Flow Statement](index=12&type=section&id=Consolidated%20Cash%20Flow%20Statement) In the first three quarters of 2021, net cash flow from operating activities was CNY 4.15 billion, up 73.93% year-on-year; net cash flow from investing activities was -CNY 4.75 billion; net cash flow from financing activities was CNY 831 million; and cash and cash equivalents at period-end totaled CNY 582 million Consolidated Cash Flow Statement Summary (Jan-Sep 2021) | Item | Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | 4,146,459,005.34 | | Net Cash Flow from Investing Activities | -4,746,895,037.52 | | Net Cash Flow from Financing Activities | 831,259,804.72 | | Cash and Cash Equivalents at Period-end | 581,812,865.89 | [Adjustments for New Lease Standards](index=13&type=section&id=Item%20IV.%28III%29Adjustments%20for%20First-time%20Adoption%20of%20New%20Lease%20Standards%20from%202021%20and%20Related%20Financial%20Statements%20at%20Beginning%20of%20First-time%20Adoption%20Year) The company states in this report that adjustments for the first-time adoption of new lease standards from 2021 are not applicable - The company clarified that adjustments for the first-time adoption of new lease standards from 2021 are **not applicable**[33](index=33&type=chunk)

Financial Performance - Jiangsu Ninghu Expressway Co., Ltd. reported a significant increase in revenue, reaching RMB 1.2 billion, representing a 15% year-over-year growth[2]. - The company’s net profit for the first half of 2021 was RMB 300 million, up 20% compared to the same period last year[2]. - The company's operating revenue for the first half of the year reached CNY 5,061,764,712, representing an increase of 89.70% compared to CNY 2,668,351,072.50 in the same period last year[12]. - Net profit attributable to shareholders was CNY 2,679,329,242.91, a significant increase of 451.71% from CNY 485,637,446.44 year-on-year[12]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 2,389,901,746.70, up 469.81% from CNY 419,417,173.47 in the previous year[12]. - Basic earnings per share for the reporting period (January to June) increased to RMB 0.5319, a 451.71% increase compared to the same period last year[15]. - The weighted average return on net assets rose to 8.93%, an increase of 7.22 percentage points year-on-year[15]. - The company’s operating revenue increased by 89.70% year-on-year to RMB 5.062 billion, while total profit surged by 422.12% to RMB 3.436 billion[25]. Traffic and Operations - User traffic on the expressway increased by 10% year-over-year, with daily average traffic reaching 150,000 vehicles[2]. - Daily average toll revenue for the Shanghai-Nanjing Expressway reached RMB 14,210.59 thousand, up 119.87% year-on-year, with daily traffic averaging 105,962 vehicles, a 6.82% increase[29]. - The group achieved toll revenue of approximately RMB 4,050,912 thousand, a year-on-year increase of about 127.89%, accounting for approximately 80.03% of total operating revenue[29]. - Revenue from toll road and related services significantly recovered, showing a substantial year-on-year increase due to the easing of COVID-19 restrictions[16]. Strategic Investments and Expansion - The company plans to expand its market presence by investing RMB 500 million in new infrastructure projects over the next two years[2]. - A potential acquisition of a regional toll road operator is under consideration, which could add an estimated RMB 200 million in annual revenue[2]. - The company is focused on expanding its market presence and enhancing operational efficiency through strategic investments and partnerships[11]. - Future outlook includes continued investment in infrastructure projects to support growth and improve service quality[11]. - The group plans to invest approximately RMB 5,076,249,760.86 in major capital expenditure projects in the second half of 2021, including RMB 378,000,000 for the Wufengshan Bridge and RMB 999,267,689.13 for the Turkey ICA project[100]. Technological Advancements - Research and development efforts are focused on implementing smart traffic management systems, with an expected completion date in Q4 2022[2]. - The company aims to enhance operational efficiency by adopting new technologies, which are projected to reduce operational costs by 5%[2]. - The company has developed a "smart expansion technology" for highways, which was recognized in the 2020 major technological innovation achievements in transportation[27]. - The group is advancing the "Yiyun Tong" cloud platform to improve management efficiency through intelligent daily operations and data collection[31]. Environmental Commitment - The company emphasizes its commitment to environmental sustainability, planning to invest in green technologies amounting to RMB 100 million[2]. - The company has implemented various pollution prevention facilities, including wastewater treatment systems that meet environmental management standards[108]. - The company has established emergency response plans for environmental incidents, including hazardous materials transport accidents and fire incidents[110]. - Regular monitoring of wastewater discharge quality is conducted to ensure compliance with urban wastewater discharge standards[111]. - The company has implemented measures to minimize emissions of pollutants such as waste gas, wastewater, and solid waste[111]. Financial Management and Liabilities - Total assets at the end of the reporting period amounted to CNY 67,498,023,853.64, a 10.48% increase from CNY 61,095,560,365.16 at the end of the previous year[12]. - Total liabilities reached approximately RMB 33,158,207,000, with a debt-to-asset ratio of 49.12%, an increase of 3.22 percentage points compared to the beginning of the period[69]. - The company maintained a stable cash flow and good financing management, indicating a safe level of financial leverage[69]. - The company’s cash and cash equivalents at the end of the period were RMB 521,590,786.57, up 34.88% from RMB 386,712,702.84 last year[50]. Corporate Governance and Shareholder Information - The company held its 2020 Annual General Meeting on June 17, 2021, with resolutions published on June 18, 2021[102]. - Jiangsu Expressway Co., Ltd. holds 54.44% of the shares, amounting to 2,742,578,825 shares, making it the largest shareholder[182]. - The report indicates no other individuals required to disclose interests under the Hong Kong Securities and Futures Ordinance as of June 30, 2021[190]. - The company has complied with the corporate governance code, except for certain provisions related to independent non-executive directors' meetings[178]. Employee and Community Engagement - The total employee compensation during the reporting period amounted to RMB 485,324 thousand[193]. - The company implemented a performance-based compensation structure to enhance employee motivation and ensure reasonable basic salary[194]. - During the reporting period, the company donated RMB 400,000 to support rural economic development in Jiangsu Province[114]. - The company constructed a main road for Shuangxi Village, improving access for residents[115].