Financial Performance - The company reported a revenue of 1.5 billion RMB for the first half of 2021, representing a year-on-year increase of 10%[5]. - The company's operating revenue for the first half of 2021 reached RMB 4,211,137,979.84, a significant increase from RMB 1,736,562,664.28 in the same period of 2020, representing a growth of approximately 142.6%[198]. - Net profit attributable to shareholders was RMB 1.22 billion, a significant increase of 2,214.65% from RMB 52.68 million in the previous year[35]. - The total comprehensive income for the first half of 2021 was RMB 1,275,041,603.31, compared to a loss of RMB 36,343,651.26 in the same period of 2020, indicating a significant turnaround[199]. - Basic earnings per share rose to RMB 0.517, compared to RMB 0.024 in the first half of 2020, reflecting a growth of 2,054.17%[36]. - The company's net profit for the first half of 2021 was CNY 73,535 million, accounting for 6.03% of the net profit attributable to shareholders[158]. Revenue Sources - Toll revenue accounted for CNY 2,782 million, contributing 66.06% to the total revenue, while environmental business revenue was CNY 647 million, contributing 15.37%[48]. - Revenue from toll roads increased by 158.68% to 2,782,023 thousand RMB, accounting for 66.06% of total revenue[90]. - Clean energy revenue grew by 51.94% to 346,657 thousand RMB, driven by the inclusion of the Muli wind power project in the consolidated results[91]. Operational Developments - User traffic on the highways increased by 15% compared to the same period last year, indicating a recovery in travel demand[6]. - The company plans to expand its highway network by 200 kilometers over the next three years, aiming to enhance connectivity and accessibility[7]. - New technology initiatives include the implementation of smart toll systems, expected to reduce congestion by 20%[8]. - The company is actively involved in the development of new projects, including the Guizhou Longli City Avenue project, which is being constructed under a capital investment model[17]. Investments and Acquisitions - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its service offerings[7]. - The acquisition of 100% equity in Shenzhen Investment Control Infrastructure for approximately 2.45 billion HKD (about 2.062 billion RMB) is expected to enhance the company's market share and future profitability[65]. - The company completed the acquisition of 100% equity in three wind power projects in Xinjiang for approximately 1.015 billion yuan, with a total installed capacity of 299 MW[73]. Financial Management - The company has established a financing leasing company to enhance its financial services[21]. - The company’s debt-to-equity ratio and interest coverage ratio are key financial metrics that will be monitored to ensure financial stability[46]. - The company has secured a total bank credit line of RMB 37.148 billion, with an unused credit line of RMB 15.854 billion as of June 30, 2021[127]. Environmental Initiatives - The company is focused on the development of wind power projects, including the Mu Lei wind power project in Xinjiang[19]. - The company is actively exploring investment opportunities in the environmental sector, focusing on solid waste resource management and clean energy[67]. - The company is involved in various infrastructure projects, including the Deep-Shan Environmental Park project, which involves comprehensive management of infrastructure and supporting facilities[17]. Strategic Partnerships - A new partnership with a technology firm aims to enhance digital services for users, projected to increase user engagement by 25%[8]. - The company has established a partnership with China Communications Second Highway Engineering Bureau for various construction projects[17]. Market Expansion - The company is actively expanding its market presence in the Inner Mongolia region, focusing on key cities such as Hohhot and Baotou[18]. - The company is leveraging the EPC model for its engineering projects to ensure quality and efficiency[24]. Corporate Governance - The company has complied with corporate governance practices as per the requirements of both the Shanghai Stock Exchange and the Hong Kong Stock Exchange, with no significant deviations reported[169]. - The company’s board saw changes, including the resignation of two independent directors and the appointment of two new independent directors, reflecting ongoing governance adjustments[184]. Employee Management - As of June 30, 2021, the company had a total of 6,992 employees, including 2,277 management and professional staff, and 4,715 frontline workers[172]. - The company organized 4 training sessions during the reporting period, with a total of 148 employee participations[172].

[Important Notice](index=3&type=section&id=Important%20Notice) The board, supervisory board, and senior management guarantee the truthfulness and completeness of this quarterly report - The company's board of directors, supervisory board, and all senior management ensure the truthfulness, accuracy, and completeness of this quarterly report and bear corresponding legal responsibilities[4](index=4&type=chunk) - Hu Wei, the company's head, Zhao Guiping, the person in charge of accounting, and Li Xiaojun, the head of the accounting department, guarantee the truthfulness, accuracy, and completeness of the financial statements[5](index=5&type=chunk) - The company's financial statements for the first quarter of 2021 are unaudited[5](index=5&type=chunk) [Company Profile](index=3&type=section&id=Company%20Profile) This section outlines the company's key financial performance and shareholder structure for the reporting period [Key Financial Data](index=3&type=section&id=Key%20Financial%20Data) In Q1 2021, the company achieved a significant turnaround, with revenue growing 313.31% to CNY 1.96 billion and net profit reaching CNY 541 million Key Financial Data for Q1 2021 | Indicator | Current Period-End / Current Period | Prior Year / Prior Year-End | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | **Total Assets (CNY)** | 58,305,290,489.70 | 55,144,962,042.63 | 5.73% | | **Net Assets Attributable to Shareholders (CNY)** | 23,537,891,908.32 | 23,042,941,782.92 | 2.15% | | **Net Cash Flow from Operating Activities (CNY)** | 677,216,593.31 | -335,801,179.71 | Not Applicable | | **Operating Revenue (CNY)** | 1,962,015,531.22 | 474,711,617.77 | 313.31% | | **Net Profit Attributable to Shareholders (CNY)** | 540,534,999.13 | -132,684,403.98 | Not Applicable | | **Basic Earnings Per Share (CNY/share)** | 0.227 | -0.061 | Not Applicable | - Total non-recurring gains and losses for the reporting period amounted to **CNY 14.14 million**, primarily from asset disposal gains of **CNY 15.23 million** due to government compensation for land acquisition along expressways[9](index=9&type=chunk) [Total Shareholders, Top Ten Shareholders, and Top Ten Circulating Shareholders at Period-End](index=5&type=section&id=Total%20Shareholders%2C%20Top%20Ten%20Shareholders%2C%20and%20Top%20Ten%20Circulating%20Shareholders%20at%20Period-End) As of the reporting period end, the company had 18,767 shareholders, with the top three holding a concentrated majority of shares - As of the end of the reporting period, the company had a total of **18,767 shareholders**, including **18,528 A-share shareholders** and **239 H-share shareholders**[10](index=10&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Number of Shares Held (shares) | Shareholding Ratio (%) | | :--- | :--- | :--- | | HKSCC NOMINEES LIMITED | 729,642,042 | 33.46 | | Xintongchan Industrial Development (Shenzhen) Co., Ltd. | 654,780,000 | 30.03 | | Shenzhen Shenguanghui Highway Development Co., Ltd. | 411,459,887 | 18.87 | | China Merchants Highway Network Technology Holdings Co., Ltd. | 91,092,743 | 4.18 | | Guangdong Road and Bridge Construction Development Co., Ltd. | 61,948,790 | 2.84 | - Explanation of related party relationships: Xintongchan Industrial Development (Shenzhen) Co., Ltd. and Shenzhen Shenguanghui Highway Development Co., Ltd. are both related parties controlled by Shenzhen International Holdings Co., Ltd[12](index=12&type=chunk) [Significant Events](index=6&type=section&id=Significant%20Events) This section details the company's operational performance, financial analysis, and key developments during the reporting period [Operating Information](index=6&type=section&id=Operating%20Information) Core toll road business recovered significantly, while environmental protection expanded with new projects and clean energy acquisitions [Toll Road Business](index=6&type=section&id=Toll%20Road%20Business) Toll road operations normalized, showing significant traffic and revenue increases due to economic recovery and a low prior-year base - Due to the low base in the prior year caused by the pandemic and free toll policies, all toll road projects experienced significant year-on-year growth in traffic volume and toll revenue during the reporting period[13](index=13&type=chunk) Daily Operating Data for Major Toll Road Projects | Toll Road | Daily Average Mixed Traffic Volume (thousand vehicles/day) | Daily Average Toll Revenue (CNY thousand/day) | | :--- | :--- | :--- | | **Shenzhen Area** | | | | Jihe East Section | 313 | 1,923 | | Outer Ring Project | 194 | 2,143 | | Shuiguan Expressway | 268 | 1,701 | | **Other Areas** | | | | Qinglian Expressway | 58 | 2,831 | | Yangmao Expressway | 45 | 1,314 | - The Outer Ring Phase I project, opened in late December 2020, performed well with **daily average toll revenue of CNY 2.14 million**, though it caused some traffic diversion from the Jihe Expressway[17](index=17&type=chunk) [Environmental Protection Business](index=8&type=section&id=Environmental%20Protection%20Business) Environmental protection business expanded with increased waste management revenue, new project signings, and Xinjiang Mulei wind power acquisitions, enhancing clean energy - Solid waste resource management: Lande Environmental's kitchen waste treatment capacity increased, with operating revenue growing significantly year-on-year; the Guangming Environmental Park project was officially signed in February; completed the controlling acquisition of a **50% equity stake in Qiantai Company**, entering the field of comprehensive utilization of discarded new energy vehicle batteries[21](index=21&type=chunk) - Clean energy: Acquired three Xinjiang Mulei wind power projects during the reporting period, which, after consolidation, collectively generated **70,579.73 MWh of grid-connected electricity**; Baotou Nanfeng project generated **182,156.18 MWh**, a **24% year-on-year increase**[23](index=23&type=chunk) [Financial Analysis](index=9&type=section&id=Financial%20Analysis) The company achieved a net profit of CNY 541 million, a significant turnaround from prior year's loss, driven by revenue growth and increased interest-bearing debt Key Income Statement Item Changes for Q1 2021 | Item | 2021 Q1 (CNY thousand) | 2020 Q1 (CNY thousand) | Year-on-Year Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 1,962,016 | 474,712 | 313.31% | Prior year affected by pandemic and free toll policies, current period toll revenue recovered | | **Operating Cost** | 1,056,874 | 518,400 | 103.87% | Increased depreciation and amortization due to traffic growth, and cost recognition for Guilong development project | | **Net Profit Attributable to Parent** | 540,535 | -132,684 | Not Applicable | Primarily due to significant decline in toll road revenue in prior year | - Capital expenditure during the reporting period was approximately **CNY 2.69 billion**; total outstanding interest-bearing debt at period-end was approximately **CNY 23.1 billion**, a **19.43% increase** from the beginning of the year, primarily due to increased borrowings for the acquisition of Mulei wind power projects and new office building purchases; the asset-liability ratio was **54.02%**, an increase of **1.67 percentage points** from the beginning of the year[25](index=25&type=chunk) - During the reporting period, the company completed the **100% equity acquisition** of Qianzhi, Qianhui, and Qianxin (Mulei Wind Power Projects), consolidating them into the financial statements; these three companies collectively contributed **CNY 28.86 million in operating revenue** and **CNY 2.51 million in net profit attributable to parent**[25](index=25&type=chunk) [Analysis of Significant Changes in Major Financial Statement Items and Indicators and Their Reasons](index=10&type=section&id=3.3%20Analysis%20of%20Significant%20Changes%20in%20Major%20Financial%20Statement%20Items%20and%20Indicators%20and%20Their%20Reasons) Significant changes in financial statement items include increased fixed assets and long-term prepayments from acquisitions, and a substantial rise in investment income Significant Changes in Major Financial Statement Items | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | **Fixed Assets** | 58.93% | Mulei wind power projects consolidated | | **Long-term Prepayments** | 330.45% | Prepayment for new office building purchase | | **Short-term Borrowings** | 66.24% | Increased short-term borrowings based on market funding conditions | | **Other Current Liabilities** | 47.86% | Issuance of ultra-short-term financing bonds | | **Taxes and Surcharges** | 1,045.64% | Increased revenue led to corresponding increase in taxes and surcharges | | **Investment Income** | 317.27% | Lower investment income from associates in prior year, and increased performance of Derun Environment in current period | | **Net Cash Flow from Operating Activities** | Not Applicable | Lower cash inflow from tolls in prior year due to pandemic and free toll policies | | **Net Cash Flow from Investing Activities** | Not Applicable | Payment for new office building prepayment and equity consideration for Mulei wind power projects acquisition | [Progress of Significant Events](index=11&type=section&id=3.4%20Analysis%20of%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Events) The company completed Xinjiang Mulei wind power acquisition, issued short-term financing bonds, and extended H-share private placement resolution validity - The company invested approximately **CNY 1.015 billion** to complete the **100% equity acquisition** of three Xinjiang Mulei wind power projects, with a total installed capacity of **299 MW**[28](index=28&type=chunk) - In February and March 2021, the company issued two tranches of ultra-short-term financing bonds, each for **CNY 1 billion**, with maturities of **60 days and 180 days** and interest rates of **2.65% and 2.75%**, respectively[28](index=28&type=chunk)[29](index=29&type=chunk) - To ensure the smooth progress of the private placement of H-shares, the board of directors approved extending the validity period of relevant resolutions and authorizations by **12 months to March 30, 2022**, pending shareholder approval[29](index=29&type=chunk) [Performance Forecast](index=14&type=section&id=3.6%20Warning%20and%20Explanation%20of%20Potential%20Loss%20or%20Significant%20Change%20in%20Cumulative%20Net%20Profit%20from%20Year-Beginning%20to%20End%20of%20Next%20Reporting%20Period) The company forecasts a significant year-on-year net profit increase for H1 2021, primarily due to a low comparative base from prior year's pandemic impact - The Group expects a **significant year-on-year increase** in net profit for the first half of 2021[33](index=33&type=chunk) - The primary reason for the significant performance growth is the **low comparative base** in the first half of 2020, when toll road revenue significantly declined due to the pandemic and free toll policies[33](index=33&type=chunk) [Appendix](index=15&type=section&id=Appendix) This appendix provides the company's unaudited consolidated and parent company financial statements for the first quarter of 2021 [Financial Statements](index=15&type=section&id=Financial%20Statements) This section presents the company's unaudited consolidated and parent company balance sheets, income statements, and cash flow statements for Q1 2021 [Consolidated Balance Sheet](index=15&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2021, total assets were CNY 58.31 billion, total liabilities CNY 31.50 billion, and net assets attributable to shareholders CNY 23.54 billion Key Items of Consolidated Balance Sheet | Item | March 31, 2021 (CNY) | December 31, 2020 (CNY) | | :--- | :--- | :--- | | **Total Assets** | 58,305,290,489.70 | 55,144,962,042.63 | | **Total Liabilities** | 31,496,202,963.17 | 28,865,852,158.86 | | **Total Owners' Equity Attributable to Parent Company** | 23,537,891,908.32 | 23,042,941,782.92 | [Parent Company Balance Sheet](index=17&type=section&id=Parent%20Company%20Balance%20Sheet) As of March 31, 2021, the parent company's total assets were CNY 40.18 billion, total liabilities CNY 21.82 billion, and total owner's equity CNY 18.35 billion Key Items of Parent Company Balance Sheet | Item | March 31, 2021 (CNY) | December 31, 2020 (CNY) | | :--- | :--- | :--- | | **Total Assets** | 40,175,179,202.76 | 36,786,576,377.85 | | **Total Liabilities** | 21,821,024,928.95 | 18,758,101,048.69 | | **Total Owners' Equity** | 18,354,154,273.81 | 18,028,475,329.16 | [Consolidated Income Statement](index=19&type=section&id=Consolidated%20Income%20Statement) In Q1 2021, consolidated operating revenue was CNY 1.96 billion, with net profit attributable to parent company shareholders of CNY 541 million, a significant turnaround Key Items of Consolidated Income Statement | Item | 2021 Q1 (CNY) | 2020 Q1 (CNY) | | :--- | :--- | :--- | | **I. Total Operating Revenue** | 1,962,015,531.22 | 474,711,617.77 | | **III. Operating Profit** | 750,595,014.03 | -219,930,715.23 | | **V. Net Profit** | 585,562,516.85 | -174,228,740.36 | | **Net Profit Attributable to Parent Company Shareholders** | 540,534,999.13 | -132,684,403.98 | [Parent Company Income Statement](index=21&type=section&id=Parent%20Company%20Income%20Statement) In Q1 2021, parent company operating revenue was CNY 149 million, with net profit of CNY 372 million, largely due to investment income Key Items of Parent Company Income Statement | Item | 2021 Q1 (CNY) | 2020 Q1 (CNY) | | :--- | :--- | :--- | | **I. Operating Revenue** | 149,040,642.42 | 54,369,841.66 | | **Investment Income** | 397,364,682.84 | -11,707,862.20 | | **IV. Net Profit** | 371,678,944.65 | -70,353,117.54 | [Consolidated Cash Flow Statement](index=22&type=section&id=Consolidated%20Cash%20Flow%20Statement) Q1 2021 saw positive net cash flow from operating activities of CNY 677 million, while investment activities resulted in a net outflow of CNY 2.27 billion Key Items of Consolidated Cash Flow Statement | Item | 2021 Q1 (CNY) | 2020 Q1 (CNY) | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 677,216,593.31 | -335,801,179.71 | | **Net Cash Flow from Investing Activities** | -2,266,944,593.98 | -286,429,394.96 | | **Net Cash Flow from Financing Activities** | 1,748,058,149.90 | 1,458,258,351.05 | | **Net Increase in Cash and Cash Equivalents** | 158,328,252.82 | 835,977,124.87 | [Parent Company Cash Flow Statement](index=24&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In Q1 2021, parent company operating cash flow was CNY 28 million, with a significant net outflow from investment activities of CNY 3.05 billion Key Items of Parent Company Cash Flow Statement | Item | 2021 Q1 (CNY) | 2020 Q1 (CNY) | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 28,392,252.51 | 88,453,083.53 | | **Net Cash Flow from Investing Activities** | -3,054,646,041.73 | -1,643,707,367.19 | | **Net Cash Flow from Financing Activities** | 2,879,883,135.11 | 2,309,435,756.96 | | **Net Increase in Cash and Cash Equivalents** | -146,370,188.35 | 754,183,600.82 |

Financial Performance - The company reported a total revenue of approximately 1.5 billion RMB for the year 2020, reflecting a year-on-year growth of 10%[14]. - In 2020, the company's operating revenue reached CNY 8,026,737,099.99, representing a 25.61% increase compared to CNY 6,390,295,110.82 in 2019[30]. - The net profit attributable to shareholders was CNY 2,054,523,306.30, a decrease of 19.88% from CNY 2,564,317,594.25 in the previous year[30]. - The basic earnings per share for 2020 was CNY 0.936, down 20.44% from CNY 1.176 in 2019[31]. - The total assets of the company increased by 20.78% to CNY 55,144,962,042.63 at the end of 2020, compared to CNY 45,658,413,658.91 at the end of 2019[30]. - The net cash flow from operating activities was CNY 1,100,633,933.07, a decrease of 35.08% from CNY 1,695,357,337.06 in 2019[30]. - The company reported a weighted average return on equity of 10.83% for 2020, down from 13.73% in 2019, a decrease of 2.89 percentage points[31]. - The company achieved a net profit of 2,054,523 thousand RMB in 2020, a decrease from 2,564,318 thousand RMB in 2019, with a year-on-year growth of approximately 0.32% after excluding deferred tax asset impacts from 2019[151]. - Total operating revenue for 2020 was 8,026,737 thousand RMB, representing a year-on-year increase of 25.61% due to the inclusion of new environmental businesses[153]. Dividends and Shareholder Returns - The board has proposed a final cash dividend of RMB 0.43 per share for the year 2020, subject to approval at the annual general meeting[5]. - The company proposed a cash dividend of CNY 0.43 per share for the 2020 fiscal year, totaling approximately CNY 938 million, which accounts for 45.96% of the net profit attributable to ordinary shareholders[69]. Audit and Compliance - The company reported a standard unqualified audit opinion from Ernst & Young Hua Ming[4]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[7]. - The company has not violated decision-making procedures for providing guarantees[7]. - The financial report is guaranteed to be true, accurate, and complete by the company's management[6]. Operational Developments - The user base increased by 15% year-on-year, reaching 2 million active users by the end of 2020[15]. - The company plans to expand its market presence by launching two new highway projects in 2021, expected to add 50 kilometers of new routes[15]. - Research and development expenses increased by 20% in 2020, focusing on new traffic management technologies[14]. - The operational efficiency improved, with a reduction in average toll collection time by 25%[14]. - The company is exploring opportunities for international expansion, particularly in Southeast Asia, with potential investments of up to 200 million RMB[15]. - The company is actively involved in the development of urban infrastructure projects through public-private partnerships (PPP) to improve service delivery[17]. Acquisitions and Investments - The company completed the acquisition of a regional competitor, which is expected to contribute an additional 300 million RMB in annual revenue[15]. - The company completed the acquisition of 89.93% of Longda Company, which was included in the consolidated financial statements starting from November 26, 2020[40]. - The company acquired 67.14% of the equity in Lande Environmental and 50% of the equity in Shenshan Qiantai during 2020, enhancing its market position[64][65]. - The company completed the acquisition of 89.93% equity in Longda Expressway on December 1, 2020[53]. Environmental Initiatives - New environmental initiatives were introduced, aiming for a 15% reduction in carbon emissions by 2025[14]. - The company is focusing on organic waste treatment as a key area for development under its large environmental industry strategy, supported by national environmental policies[116]. - The company established a wholly-owned subsidiary, Shenzhen Expressway New Energy Holdings Co., Ltd., with a registered capital of 1.4 billion yuan to focus on wind power and other clean energy investments[124]. Financial Management and Capital Structure - The company issued RMB 4 billion perpetual bonds during the reporting period, which were included in other equity instruments[35]. - The company issued CNY 10 billion in short-term financing bonds in 2020, effectively managing its funding costs[64]. - The company plans to optimize its capital structure and maintain adequate cash reserves to mitigate liquidity risks[188]. - The company actively expanded its financing channels, obtaining approval for RMB 4 billion in short-term financing and RMB 2 billion in green corporate bonds[191]. Impact of COVID-19 - The company experienced a decline in revenue during the pandemic due to a policy that exempted all vehicles from toll fees from February 17 to May 6, 2020[89]. - The company reduced toll fees for over 63 million vehicles during the pandemic, with an average of over 3,000 personnel deployed daily for epidemic prevention[92]. - The implementation of new toll policies is expected to have a long-term positive impact on operational efficiency and cost reduction in the highway sector[88]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[30]. - The group plans to focus on solid waste resource management and clean energy sectors, aiming to become a leader in organic waste treatment and dismantling of old vehicles[77]. - The group is set to leverage its dual main business structure to expand into the environmental protection and clean energy sectors, while maintaining its strengths in toll road operations[83].

Financial Performance - The company's operating revenue for the first half of the year was approximately ¥1.69 billion, a decrease of 37.71% compared to the same period last year[27]. - Net profit attributable to shareholders was approximately ¥43.92 million, reflecting a significant decline of 97.22% year-over-year[27]. - The basic earnings per share decreased to ¥0.020, down 97.22% from ¥0.724 in the previous year[28]. - The weighted average return on equity dropped to 0.24%, a decrease of 8.56 percentage points compared to the previous year[28]. - The total assets increased by 9.19% to approximately ¥49.42 billion compared to the end of the previous year[27]. - The net cash flow from operating activities was negative at approximately -¥157.42 million, a decline of 119.22% year-over-year[27]. - Non-recurring gains and losses totaled approximately ¥55.68 million, with significant contributions from foreign exchange swaps and other financial activities[30]. - The company achieved a total revenue of approximately CNY 1.687 billion in the first half of 2020, representing a year-on-year decline of 37.71%[51]. - The revenue from the main business of toll roads was 1,045,927 thousand RMB, accounting for 62.00% of total revenue, down from 81.40% in the previous year[113]. - The company reported a net profit of 43,923 thousand RMB for the first half of 2020, a decrease of 97.22% compared to 1,578,646 thousand RMB in the same period of 2019, primarily due to reduced toll revenue from the highway free policy during the pandemic[109]. Toll Revenue and Traffic Impact - The company's toll revenue was negatively impacted by government policies that exempted all vehicles from tolls from February 17 to May 6, 2020, leading to a decrease in income during the pandemic[54]. - In the first half of 2020, the overall toll revenue of the group's operated and invested toll roads significantly decreased year-on-year due to the impact of COVID-19, with a notable decline during the free toll period from January 24 to May 6[62]. - Following the resumption of toll collection on May 6, 2020, the average daily mixed traffic volume on the Meiguan Expressway increased by 9.5% to 123,000 vehicles compared to the same period in 2019[60]. - The average daily toll revenue for the Meiguan Expressway during the recovery period rose by 14.5% to RMB 439,000, indicating a positive trend post-lockdown[60]. - The average daily traffic volume and toll revenue on the Meiguan Expressway increased due to the resumption of operations by major production bases like Huawei and accelerated construction of nearby infrastructure projects[63]. Strategic Focus and Business Development - The company has identified the environmental protection industry as its second major business and has completed initial layout in this field[8]. - The company plans to continue market-oriented and innovation-driven strategies to enhance its competitive strength in specific segments[8]. - The company has established a dual main business strategy focusing on toll roads and environmental protection, actively seeking cooperation opportunities in the environmental and clean energy sectors[48]. - The company is actively engaged in the development of new projects, such as the Qinglian project and the Guangwu project, to expand its operational footprint[16]. - The company is focused on enhancing operational efficiency through the use of BIM technology, which aids in project design and management[18]. Infrastructure Projects and Investments - The company is involved in the construction and management of various infrastructure projects, including the Deep-Shan Environmental Park project and the Guizhou Longli project[16]. - The company has undertaken the construction of municipal supporting facilities for the Longda Expressway, enhancing local infrastructure[16]. - The company has signed an agreement to acquire up to 68.1045% of Blue Environmental Technology Group for no more than RMB 809.6 million, integrating it into the group for enhanced organic waste processing capabilities[79]. - The company has invested RMB 225 million to acquire 50% of Qiantai Technology Co., Ltd., which specializes in the dismantling of retired electric vehicles and battery recycling[80]. - The company is exploring land development and urban renewal opportunities as supplementary income sources beyond its main business[93]. Financial Management and Capital Structure - The company has a strong presence in the logistics sector through its subsidiary, Shenzhen International Logistics Development Co., Ltd.[18]. - The company maintains a reasonable capital structure, with a debt ratio increase attributed to higher capital expenditures and reduced revenue during the pandemic[146]. - The company has pledged assets including the Qinglian project with a total bank loan limit of 5.9 billion yuan[143]. - The company has committed RMB 450 million to the establishment of the Ring Science and Technology Industry M&A Investment Fund, with a total subscription amount of RMB 1 billion[105]. - The company has issued 2 billion RMB in short-term financing bonds and green corporate bonds to lower financing costs and optimize debt structure[155]. Corporate Governance and Compliance - The company has committed to improving corporate governance and transparency to promote stable development[179]. - The company has not engaged in any major related party transactions during the reporting period[194]. - The company has confirmed that there are no violations of decision-making procedures regarding external guarantees[199]. - The company has no major litigation or arbitration matters during the reporting period[188]. - The company has renewed the appointment of Ernst & Young Hua Ming as its auditor for the 2020 financial year[188].