Financial Performance - The company's operating revenue for the first half of 2021 was CNY 3,873,846,581.61, representing an increase of 118.54% compared to the same period last year, which was CNY 1,772,581,641.47[30]. - The net profit attributable to shareholders of the listed company reached CNY 672,080,844.67, a significant recovery from a loss of CNY 166,476,249.43 in the previous year[30]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 661,617,890.41, compared to a loss of CNY 184,259,326.61 in the same period last year[30]. - The net cash flow generated from operating activities was CNY 852,926,032.71, an increase of 578.11% from CNY 125,779,303.11 in the previous year[30]. - As of the end of the reporting period, the net assets attributable to shareholders of the listed company were CNY 15,975,002,322.45, up 2.84% from CNY 15,534,511,993.27 at the end of the previous year[30]. - The total assets of the company at the end of the reporting period were CNY 41,196,628,882.79, reflecting a 1.81% increase from CNY 40,463,340,007.54 at the end of the previous year[30]. - Basic earnings per share for the reporting period (January to June) is CNY 0.2198, compared to a loss of CNY 0.0544 in the same period last year[31]. - Weighted average return on equity increased to 4.26% from -1.11% year-on-year[31]. Operational Highlights - The company operates a total of approximately 744 kilometers of expressways, with 42 kilometers under construction as of June 30, 2021[41]. - The company's expressways are all operational toll roads, generating revenue through toll fees based on government standards[44]. - The average daily traffic flow on the Chengyu Expressway was 20,977 vehicles, with toll revenue increasing by 70.44% compared to the same period last year[60]. - The company’s expressways include Chengyu, Chengya, Chengren, and Chengle, among others, with varying lengths and operational start dates[44]. Investment and Expansion Plans - The company plans to expand its business scope in urban infrastructure and service areas along expressways, leveraging its financial and brand advantages[56]. - The company plans to divest its 91% stake in the subsidiary Renshou Land Company for a total consideration not exceeding RMB 1,858.13 million[75]. - The company completed an investment of approximately RMB 1.12 billion in the Tianqiong Expressway project by June 30, 2021[76]. - The company registered a capital contribution of RMB 1.42 billion in the Tianqiong Expressway project company[76]. - The company is exploring new financing methods to enhance its financial performance and cost management[83]. Risk Management - The company has outlined potential risks including policy, market, financial, and management risks in the report[10]. - The company faces risks related to policy changes affecting toll pricing, which could impact operational stability[121]. - The company is actively enhancing its risk management mechanisms to address potential market and financial risks associated with rapid business growth[121]. - The company will continuously track and analyze macroeconomic conditions and regional economic impacts to mitigate risks associated with economic fluctuations[132]. Environmental Initiatives - The company has established an environmental protection management framework to enhance ecological protection and implement green development principles[152]. - The company has developed 1 management method and 11 related systems to improve its environmental protection system[153]. - The company has implemented a cost reduction and efficiency enhancement plan to strictly control vehicle usage and reduce emissions[163]. - The company has actively constructed electric vehicle charging stations in response to national calls, aiming to provide safe and convenient charging services[160]. - The company has established a runoff collection system to protect drinking water sources along highways[176]. Corporate Governance - The board of directors confirmed that all members attended the meeting, ensuring the accuracy and completeness of the financial report[5]. - The company has undergone changes in its board of directors, with new independent directors elected to strengthen governance[145]. - The integrity status of the company and its major stakeholders remains good, with no significant debts or obligations unfulfilled during the reporting period[193]. - The company has received no non-standard audit opinions in the previous annual report, reflecting a sound financial audit status[191]. Related Party Transactions - The total amount of related party transactions under the construction engineering framework agreement with the investment group during the reporting period was RMB 204.19 million[197]. - The actual amount of daily related party transactions under the sales agency and integrated promotion agency framework agreement during the reporting period was RMB 4.32 million[199]. - The total amount of related party transactions for construction projects, including roads, bridges, and tunnels, is capped at RMB 2.985 billion from January 1, 2021, to December 31, 2021[196].

Financial Performance - Net profit attributable to shareholders of the listed company was CNY 312.99 million, a significant recovery from a loss of CNY 269.17 million in the same period last year[11]. - Operating revenue for the period was CNY 1.42 billion, representing a growth of 126.03% year-on-year[11]. - Basic and diluted earnings per share were both CNY 0.1023, a turnaround from a loss of CNY 0.0880 per share in the previous year[11]. - The company reported a net profit of RMB 338,077,382.08, a turnaround from a loss of RMB 263,785,895.68 in the previous period[22]. - Total operating revenue for Q1 2021 reached ¥1,420,687,417.39, a significant increase from ¥628,527,343.64 in Q1 2020, representing a growth of approximately 126.5%[66]. - Net profit for Q1 2021 was ¥338,077,382.08, a turnaround from a net loss of ¥263,785,895.68 in Q1 2020[66]. - The total profit for the current period is CNY 374.87 million, while the previous period recorded a total loss of CNY 99.75 million[72]. - The total comprehensive income for the current period is CNY 320.58 million, contrasting with a comprehensive loss of CNY 107.38 million in the previous period[74]. Cash Flow - Net cash flow from operating activities increased by 147.45% to CNY 429.04 million compared to CNY 173.39 million in the previous year[11]. - The company's operating cash flow net amount is CNY 429.04 million, up from CNY 173.39 million in the previous period, reflecting improved cash generation capabilities[76]. - In Q1 2021, the company reported a net cash flow from operating activities of ¥288,338,734.89, a significant improvement compared to a net loss of ¥170,128,031.86 in Q1 2020[79]. - Cash inflow from operating activities totaled ¥816,914,618.49, while cash outflow was ¥528,575,883.60, resulting in a positive cash flow from operations[79]. - The company’s cash inflow from financing activities totaled CNY 1.52 billion, compared to CNY 2.18 billion in the previous period, showing a decrease in financing activities[76]. Assets and Liabilities - Total assets at the end of the reporting period reached CNY 40.66 billion, an increase of 0.48% compared to the end of the previous year[11]. - The total current asset of the company was approximately RMB 9.018 billion as of March 31, 2021, an increase from RMB 8.605 billion at the end of 2020[51]. - Current liabilities totaled CNY 7,087,755,959.34, a decrease of 20.1% from CNY 8,868,415,911.25[54]. - Total liabilities amounted to CNY 23,782,536,104.54, a slight decrease of 0.6% compared to CNY 23,930,179,398.33[54]. - Total equity attributable to shareholders reached CNY 15,850,512,581.50, an increase of 2.0% from CNY 15,534,511,993.27[56]. Investments and Projects - The total investment in the Chengle Expressway expansion project reached approximately RMB 50.86 billion as of March 31, 2021[33]. - The company has invested approximately RMB 8.82 billion in the Tianqiong Expressway project as of March 31, 2021, with a total estimated investment of RMB 86.85 billion[38]. - The company has successfully won the bid for the Lu Shan "Longbao Da" PPP project, with an estimated total investment of RMB 390 million and a construction length of 8.3 kilometers[40]. - The company plans to continue expanding its market presence through ongoing infrastructure projects and real estate developments[29]. Shareholder Information - The total number of shareholders at the end of the reporting period was 51,212, with the largest shareholder holding 35.86% of the shares[16]. Government and Non-Operating Income - Government subsidies recognized in the current period amounted to CNY 10.29 million, closely related to the company's normal business operations[13]. - The company reported a non-operating income of CNY 12.60 million, which includes various non-recurring gains and losses[13]. Strategic Developments - The company is undergoing a strategic merger with the Sichuan Railway Investment Group, which has been approved by the State-owned Assets Supervision and Administration Commission[41]. - The company has terminated its investment in the 特色职业技术学校项目 due to significant market changes since 2020[39].

Financial Performance - The company's net profit attributable to owners for 2020 was approximately RMB 674.81 million, a year-on-year decrease of 37.87%[157]. - Basic earnings per share for 2020 were approximately RMB 0.221, compared to RMB 0.355 in 2019[157]. - The company achieved a net revenue of approximately RMB 8.199 billion and a total pre-tax profit of about RMB 992 million for the year[161]. - The attributable profit to the owners of the company was approximately RMB 674,809 thousand, a decrease of 37.87% year-on-year[170]. - The basic earnings per share were approximately RMB 0.221, down from RMB 0.355 in 2019[170]. - The group's total toll revenue (net of turnover tax) for 2020 was approximately RMB 3,021,017 thousand, a decrease of 22.83% year-on-year, accounting for 36.69% of the main business revenue[177]. Dividend and Profit Distribution - The board proposed a final cash dividend of RMB 0.08 per share, totaling approximately RMB 244.65 million, which accounts for 47.27% of the distributable profits[157]. Operational Challenges and Responses - In 2020, the company's operational performance faced significant challenges due to the COVID-19 pandemic and other adverse conditions, yet it managed to achieve notable progress in various areas[158]. - The company continues to strengthen its risk management framework, maintaining compliance and governance standards, and was rated as an "A" level company for information disclosure by the Shanghai Stock Exchange[161]. - The company is committed to maintaining safety and environmental standards while addressing the impacts of the COVID-19 pandemic on its operations[167]. - The group faced significant impacts from the COVID-19 pandemic, leading to reduced traffic flow and toll revenue during the early part of the year[181]. Infrastructure Development - The total length of the expressway network reached 8,140 kilometers, with 38 major access routes to and from Sichuan province established[160]. - Key projects such as the Chengle Expressway expansion and Tianqiong Expressway project have made significant progress, with the former completing environmental assessments and the latter forming a project company[161]. - The company reported a total investment of approximately RMB 231.33 billion for the Chengle Expressway expansion project, with an estimated completion of 138.41 kilometers[192]. - The total estimated investment for the Tianqiong Expressway BOT project is approximately RMB 8.685 billion, with cumulative investment completed of about RMB 834 million by December 31, 2020[197]. - The Lu Shan County Dachuan River Scenic Area Tourist Road project has a total investment of approximately RMB 760 million, with the scenic road investment being RMB 720 million[198]. Revenue Segments - The toll revenue segment reported a net revenue of approximately RMB 3,007,666 thousand, a decrease of about 22.87% compared to the previous year[170]. - The urban operation segment saw a significant increase in net revenue, reaching approximately RMB 3,545,098 thousand, which is a year-on-year growth of about 78.38%[170]. - The financial investment segment's net revenue increased by approximately 26.73%, totaling around RMB 186,695 thousand[170]. - The group's advertising revenue decreased by 58.51% year-on-year, with losses increasing by 4,251.72% due to the impact of the pandemic on advertising operations[173]. Traffic and Toll Adjustments - The average daily traffic volume for Chengyu Expressway increased by 9.08% year-on-year, while toll revenue decreased by 26.39%[176]. - The implementation of new toll collection policies in Sichuan province began on January 1, 2020, affecting the operational performance of the group's expressways[183]. - The toll rates for passenger vehicles and trucks have been adjusted according to the new classification system, with rates for trucks now based on vehicle type rather than weight[185]. - The toll rate for the Chengyu Expressway is set at RMB 1.17 per kilometer for Class 3 trucks, with additional bridge and tunnel charges of RMB 8.71[186]. Real Estate Development - The company is actively involved in real estate development, having acquired land in Renshou County for RMB 920.16 million, covering an area of 235,558.10 square meters[193]. - The real estate project "Beicheng Times" Phase I achieved total sales revenue of approximately RMB 531.19 million as of December 31, 2020[195]. - Phase II A plot of "Beicheng Times" generated sales receipts of RMB 604 million during the reporting period, with confirmed sales revenue of approximately RMB 476 million[195]. Future Plans and Strategic Focus - The company plans to focus on expanding its market presence and optimizing its business layout in response to challenges in maintaining high revenue levels and increasing financing needs[166]. - The company aims to enhance its operational capabilities and ensure stable growth while addressing risks and improving efficiency in the upcoming year[166]. - The company plans to enhance core business profitability and market competitiveness by focusing on key transportation projects and diversifying related projects[167]. - The company will continue to push for high-quality development in the transportation sector, aligning with national strategies for infrastructure improvement and economic recovery[166].

Financial Performance - The net profit attributable to the parent company for 2020 was approximately RMB 674.47 million, with the parent company's net profit at about RMB 862.57 million[11]. - The company's operating revenue for 2020 was CNY 5,459,022,375.17, a decrease of 14.80% compared to CNY 6,407,613,516.51 in 2019[37]. - The net profit attributable to shareholders for 2020 was CNY 674,472,807.71, down 37.70% from CNY 1,082,670,158.75 in 2019[37]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 588,505,972.95, a decrease of 45.10% compared to CNY 1,072,044,069.65 in 2019[37]. - Basic earnings per share for 2020 was CNY 0.2206, a decrease of 37.68% compared to CNY 0.354 in 2019[38]. - The weighted average return on equity decreased to 4.37% in 2020, down 2.90 percentage points from 7.27% in 2019[38]. - The company achieved an operating revenue of approximately RMB 5.46 billion and a total profit of approximately RMB 989 million for the year[79]. - The company reported total revenue of approximately CNY 3,021.02 million for vehicle toll fees, a decrease of 22.83% compared to the previous year[145]. - The company reported a net cash flow from operating activities of approximately 2.29 billion yuan, an increase of 25.03% year-on-year, driven by improved budget management and cost control[161]. Dividend and Profit Distribution - The proposed cash dividend is RMB 0.08 per share, totaling approximately RMB 244.64 million, which accounts for 47.27% of the distributable profit for the year[11]. - The company has reported a 36.27% payout ratio based on the net profit attributable to shareholders for 2020[11]. - The company plans to retain the remaining profits for the next fiscal year, with no capital reserve fund conversion to share capital for this year[11]. Audit and Governance - The board of directors has confirmed that all members attended the board meeting, ensuring accountability for the report's accuracy[8]. - The company received a standard unqualified audit report from the accounting firm Xin Yong Zhong He[10]. - There are no non-operating fund occupations by controlling shareholders or related parties reported[13]. Risks and Future Outlook - The company has outlined potential risks including policy, market, financial, and management risks in the report[15]. - The management provided guidance for future performance, indicating a cautious outlook due to market conditions[26]. - The company plans to focus on enhancing core business profitability and market competitiveness while expanding related diversified projects[87]. - The company aims to strengthen risk control measures and improve governance to ensure stable development amidst economic challenges[90]. Market Position and Strategy - The company is positioned as the only A+H share listed expressway infrastructure company in Sichuan Province, playing a crucial role in the region's expressway investment and operation[64]. - The company has implemented a diversified development strategy, expanding into urban infrastructure, real estate development, and energy investment, leveraging its financial and brand advantages[58]. - The company is actively expanding its diversified business, including urban operations and energy services, to enhance revenue streams[79]. - The company plans to expand its real estate projects and enhance its financing leasing services to drive future growth[146]. Operational Performance - The company operates a total of approximately 744 kilometers of expressways, with 42 kilometers under construction as of December 31, 2020[52]. - The company’s expressway business is primarily influenced by economic conditions, with traffic demand affected by various factors including competition and government policies[59]. - The overall performance of the group's expressways was impacted by the economic environment, with China's GDP growing by 2.3% in 2020[102]. - The group’s expressways experienced a gradual recovery in traffic volume starting from the second quarter of 2020[102]. Investment and Projects - The company has initiated key projects such as the Chengle Expressway expansion and the Tianqiong Expressway, with significant progress in construction and approvals[79]. - The total investment for the Chengle Expressway expansion project is approximately RMB 231.33 billion, with RMB 50.07 billion invested by the end of 2020[117]. - The Tianqiong Expressway project has an estimated total investment of RMB 8.685 billion, with RMB 834 million completed by the end of 2020[121]. - The company successfully won the bid for the "Longbao D" PPP project with an estimated total investment of approximately RMB 390 million[124]. Subsidiary Performance - Chengle Company reported operating revenue of approximately RMB 387.48 million, a decrease of about 24.5% compared to the previous year, and net profit of approximately RMB 151.28 million, down from RMB 258.33 million[180]. - Suiguang Suixi Company experienced an operating revenue of approximately RMB 291.50 million, down about 23.5% from the previous year, and a net loss of approximately RMB 387.22 million, worsening from a loss of RMB 340.57 million[181]. - Renshou Zhi Di Company reported operating revenue of approximately RMB 501.48 million, significantly increasing from RMB 37.20 million in the previous year, and net profit of approximately RMB 9.79 million, recovering from a loss of RMB 66.93 million[188]. Financial Indicators - The total assets at the end of 2020 were CNY 40,463,340,007.54, representing a 7.27% increase from CNY 37,720,112,901.70 at the end of 2019[37]. - The total amount of equity attributable to shareholders at the end of 2020 was CNY 15,535,034,205.02, slightly up from CNY 15,277,898,307.72 at the beginning of the year[40]. - The company’s financial indicators rank above average among listed companies in the same industry, indicating strong profitability and risk resilience[64].

Financial Performance - Operating revenue for the first nine months was ¥3,298,781,739.52, a decrease of 29.50% year-on-year[18]. - Net profit attributable to shareholders was ¥264,211,462.50, down 76.35% from the previous year[18]. - Basic earnings per share decreased to ¥0.0864, a drop of 76.35% year-on-year[18]. - The net profit for the period was RMB 316,075,879.91, a decrease of 72.95% compared to the previous year, primarily impacted by a 29.50% decline in revenue due to the COVID-19 pandemic[30]. - The company reported a net profit excluding non-recurring gains and losses of ¥231,890,349.15, down 78.96% year-on-year[18]. - Total operating revenue for Q3 2020 was ¥1,526,200,098.05, a decrease of 4.45% compared to ¥1,597,806,525.61 in Q3 2019[68]. - Net profit for Q3 2020 reached ¥456,461,731.15, an increase of 53.01% compared to ¥298,639,384.25 in Q3 2019[72]. - The total comprehensive income for Q3 2020 was ¥457,952,827.66, an increase from ¥301,408,563.41 in Q3 2019[75]. - The company anticipates a significant decline in cumulative net profit compared to the previous year due to the impact of free toll policies during the COVID-19 pandemic[47]. Cash Flow - The net cash flow from operating activities for the first nine months was ¥1,274,578,937.31, a decline of 12.35% compared to the same period last year[18]. - The company's cash flow from operating activities for the first three quarters of 2020 was approximately ¥4.61 billion, a decrease of 19.4% from ¥5.71 billion in the same period of 2019[82]. - Total cash inflow from operating activities was ¥2,858,252,020.12, down from ¥7,049,789,431.17 in 2019, indicating a significant reduction of about 59%[90]. - Cash outflow from operating activities totaled ¥1,685,490,157.57, compared to ¥4,401,579,673.93 in 2019, reflecting a decrease of approximately 62%[90]. - Net cash flow from operating activities for the first three quarters of 2020 was ¥1,172,761,862.55, a decrease from ¥2,648,209,757.24 in the same period of 2019, representing a decline of approximately 55%[90]. - Cash inflow from financing activities was ¥2,360,000,000.00, a substantial increase from ¥500,000,000.00 in 2019, marking a growth of 372%[92]. - The net increase in cash and cash equivalents for the period was ¥452,671,238.10, down from ¥841,960,998.23 in the previous year, indicating a decline of about 46%[92]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥39,472,408,476.12, an increase of 4.65% compared to the end of the previous year[18]. - The company's total liabilities increased to RMB 9.176 billion as of September 30, 2020, compared to RMB 7.846 billion at the end of 2019, reflecting a growth of approximately 16.9%[54]. - Total liabilities increased to ¥23,373,579,804.35, up from ¥21,569,281,723.71, representing a growth of approximately 8.37%[57]. - Current liabilities rose to ¥9,898,822,419.82, compared to ¥7,151,674,807.09, marking an increase of about 38.54%[57]. - Non-current liabilities decreased to ¥13,474,757,384.53 from ¥14,417,606,916.62, reflecting a decline of approximately 6.53%[57]. - The company's non-current assets totaled RMB 30.297 billion as of September 30, 2020, compared to RMB 29.874 billion at the end of 2019, indicating an increase of about 1.4%[54]. Shareholder Information - The total number of shareholders reached 52,240, with the top ten shareholders holding significant stakes[25]. - The largest shareholder, Sichuan Provincial Transportation Investment Group, holds 35.86% of the shares[22]. Investment Activities - The company completed investments of approximately RMB 35.36 billion in the Chengle Expressway expansion project as of September 30, 2020[36]. - The company has invested approximately RMB 8.685 billion in the Chengdu Tianfu New District to Qionglai Expressway project, which is about 42 kilometers long[42]. - The company has completed an investment of approximately RMB 2.1 billion in the Tianqiong Expressway project by September 30, 2020[42]. - The company reported a significant decrease in investment cash flow, with a net outflow of RMB 1,128,278,189.17, primarily due to reduced cash inflows from investment activities[30]. Other Financial Metrics - The weighted average return on equity fell to 1.73%, a decrease of 5.74 percentage points compared to the previous year[18]. - The company reported a decrease in other comprehensive income to ¥24,912,399.02 from ¥90,625,846.91, a decline of about 72.5%[59]. - The company’s retained earnings decreased to ¥4,370,462,569.83 from ¥4,442,929,751.74, a reduction of approximately 1.63%[59]. - The company’s long-term borrowings decreased to ¥2,429,696,664.63 from ¥2,701,701,271.79, reflecting a decline of about 10.06%[67].

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB, representing a 15% growth compared to the previous period[1]. - Total revenue for the six months ended June 30, 2020, was RMB 2,339,595 thousand, a decrease of 29.8% compared to RMB 3,327,239 thousand for the same period in 2019[23]. - The group reported a consolidated net loss of RMB 164,758,000 for the period, compared to a net profit of RMB 832,876,000 in the same period of 2019[48]. - The group’s attributable profit was approximately RMB (164,758) thousand, a decline of 119.78% year-on-year, with basic earnings per share estimated at RMB (0.054) compared to RMB 0.272 in the same period of 2019[144]. - The group experienced a segment profit loss of RMB 32,214,000, compared to a profit of RMB 1,129,211,000 in the previous year, highlighting a substantial drop in profitability[53][54]. User Engagement and Market Expansion - User data showed an increase in active users, reaching 5 million, which is a 20% increase year-over-year[2]. - The company is expanding its market presence by entering two new provinces, which is anticipated to increase market share by 5%[5]. - The company plans to focus on expanding its urban operations and enhancing service offerings in the coming quarters[60]. Future Outlook and Strategic Initiatives - The company provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 1.32 billion RMB[3]. - New product launches are expected to contribute an additional 200 million RMB in revenue over the next six months[4]. - The company is considering strategic acquisitions to bolster its competitive position in the market, with potential targets identified[7]. - Future guidance indicates a commitment to sustainable practices, with a target of reducing carbon emissions by 30% over the next five years[10]. Operational Efficiency and Cost Management - Operational efficiency improvements have led to a 10% reduction in costs, enhancing overall profitability[8]. - The company aims to improve operational efficiency and reduce costs in response to the challenging market conditions[61]. - A comprehensive budget management and cost control strategy is being implemented to minimize the impact of the pandemic on operational costs[196]. Financial Position and Assets - Total assets as of June 30, 2020, were approximately RMB 38,486,474 thousand, with net assets of RMB 15,619,787 thousand[20]. - The company’s cash and cash equivalents amounted to RMB 2,905,316 thousand as of June 30, 2020, slightly down from RMB 2,951,704 thousand at the end of 2019[29]. - The company’s total liabilities included RMB 5,603,060,000 classified as current liabilities as of June 30, 2020, compared to RMB 3,541,803,000 at the end of 2019[105]. Debt and Financing - The company’s interest-bearing loans included RMB 12,443,520,000 secured loans as of June 30, 2020, an increase from RMB 11,955,993,000 at the end of 2019[107]. - The total interest-bearing borrowings amounted to RMB 17,894,150 thousand as of June 30, 2020, with domestic bank loans accounting for RMB 15,003,520 thousand[187]. - The company has secured a loan credit limit of RMB 50.031 billion from financial institutions for the next one to two years[189]. Impact of COVID-19 - The overall operating performance of the expressways was impacted by the COVID-19 pandemic, with a significant reduction in traffic and toll revenue during the first half of 2020[148]. - The toll revenue (before turnover tax) was approximately RMB 889,240 thousand, down about 56.21% compared to the same period last year[147]. - The average daily traffic volume for Chengyu Expressway increased by 30.71% compared to the same period last year, while toll revenue decreased by 53.31%[145]. Investments and Projects - The estimated total investment for the Chengle Expressway expansion project is approximately RMB 231.33 billion, with a completed investment of about RMB 3.383 billion as of June 30, 2020[159]. - The company has signed an investment agreement for the Tianqiong Expressway project with the Chengdu government, marking a significant step in its infrastructure development strategy[163]. - The company is actively involved in the real estate market, with ongoing sales and construction in the Beicheng Times project, indicating diversification of revenue streams[160]. Shareholder Information - The total number of shareholders as of June 30, 2020, was 57,590, with 57,330 A-share shareholders and 260 H-share shareholders[133]. - The largest shareholder, Sichuan Communications Investment Group, held approximately 33.87% of the total issued shares[135]. - The company declared no interim dividend for 2020, consistent with the previous year, while the final dividend for 2019 was RMB 0.110 per share, up from RMB 0.100 in 2018[109].

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 1,772,581,641.47, a decrease of 42.47% compared to the same period last year[28]. - The net profit attributable to shareholders for the same period was a loss of CNY 166,476,249.43, representing a decline of 120.04% year-on-year[28]. - The net cash flow from operating activities was CNY 125,779,303.11, down 88.44% from the previous year[28]. - The total assets at the end of the reporting period were CNY 38,544,467,162.50, an increase of 2.19% compared to the end of the previous year[28]. - The net assets attributable to shareholders decreased by 3.71% to CNY 14,707,329,496.35[28]. - Basic earnings per share for the first half of 2020 were -CNY 0.0544, a decrease of 120.03% year-on-year[28]. - The weighted average return on net assets was -1.11%, a decrease of 6.68 percentage points compared to the previous year[28]. - The company's net profit for the current period is -166,476,249.43 RMB, compared to 830,680,896.56 RMB in the previous period, indicating a significant decline[32]. - The company's operating revenue for the first half of 2020 was approximately RMB 1,772.58 million, a year-on-year decrease of 42.47%[57]. - The net profit attributable to shareholders was approximately RMB -166.48 million, a decline of 120.04% compared to the previous year[57]. Risk Management - The company has detailed potential risks including policy, market, financial, and management risks in the report[9]. - The company emphasizes comprehensive risk management to ensure healthy development[88]. - The company faces significant risks related to policy changes, particularly in toll pricing, which requires government approval and may not be timely[130]. - The operational lifespan of toll roads is limited, with current toll collection periods for major highways expiring between 2024 and 2029, potentially impacting sustainability if no new projects are acquired[131]. - The company is exposed to macroeconomic fluctuations, as highway traffic and revenue are closely tied to GDP, with current economic pressures posing uncertainties[137]. - Daily operational risks and natural disasters could significantly impact toll revenue and maintenance costs, necessitating robust risk management strategies[146]. Strategic Initiatives - The company is focusing on expanding its market presence and enhancing operational efficiency through strategic investments[28]. - New projects and infrastructure developments are being prioritized to drive future growth and recovery[28]. - The company is actively exploring opportunities for mergers and acquisitions to strengthen its market position[28]. - The company plans to enhance project acquisition efforts and focus on high-quality expressway investments[82]. - The company aims to strengthen its diversified industries related to expressways to create new revenue and profit growth points[83]. Operational Insights - The company operates several expressways, including Chengyu Expressway (226 km) and Chengya Expressway (144 km), with operational dates dating back to 1997 and 2000 respectively[41]. - The total length of toll roads managed by the company is approximately 744 kilometers, with 42 kilometers under construction[37]. - The average daily traffic flow on toll roads showed a recovery trend, with significant increases in the second quarter compared to the first quarter[64]. - The recovery of passenger transport volume in June reached 68.8% of the same period last year, showing a strong recovery momentum[56]. - The company completed a total cargo throughput of 6.75 billion tons in the first half of the year, a year-on-year increase of 0.6%[56]. Government and Community Engagement - The company received government subsidies amounting to 7,877,502.59 RMB, which are closely related to its normal business operations[34]. - The company has helped 119 registered impoverished individuals to escape poverty during the reporting period[187]. - A total of 10.37 million yuan has been allocated for poverty alleviation efforts[187]. - The company completed the village road reconstruction project and has transferred and perfected the relevant procedures[189]. - The company plans to continue infrastructure improvements and promote community building activities in the next support cycle[190]. Environmental and Resource Management - The company emphasizes resource management to reduce waste and improve efficiency in daily operations[198]. - Implementation of centralized printing and promotion of paperless office practices to control paper usage[198]. - Introduction of a video inspection system and 4G OBU for highway maintenance to enhance service efficiency and reduce resource consumption[199]. - The company has tested local thermal regeneration technology, achieving 100% recycling of road materials[199]. - A total of 24 kilometers of road has been tested for this technology, recycling approximately 4,000 cubic meters of materials[199]. Related Party Transactions - A framework agreement for related party transactions was signed with the provincial investment group, effective from January 1, 2020, to December 31, 2020[165]. - The total amount of daily related transactions under the construction engineering framework agreement with the Traffic Investment Group during the reporting period was RMB 254.52 million[166]. - The pricing policy for related transactions is determined through a bidding process, ensuring fairness and compliance with market standards[175]. - The company has established a framework for related transactions to ensure compliance with regulatory requirements and to maintain operational efficiency[179]. - The company does not have significant reliance on related parties, ensuring that the financial condition and operating results are not adversely affected[179].

Financial Performance - Operating revenue for the first quarter was ¥628,527,343.64, a decrease of 57.97% year-on-year[12]. - Net profit attributable to shareholders was -¥269,165,231.37, representing a decline of 162.74% compared to the same period last year[12]. - Basic earnings per share were -¥0.0880, a decrease of 162.72% compared to ¥0.1403 in the same period last year[12]. - The weighted average return on equity decreased by 4.70 percentage points to -1.78%[12]. - The company reported a substantial increase in short-term borrowings to ¥1,750,000,000.00, up 250.00% from the previous period[20]. - The company experienced a significant reduction in tax expenses, down 87.43% to ¥12,391,520.00, due to lower pre-tax profits[21]. - The company anticipates a significant decline in cumulative net profit compared to the previous year due to the impact of the COVID-19 pandemic and the suspension of tolls on highways[44]. - The total comprehensive income for the quarter was -¥280,826,998.72, compared to ¥447,312,646.38 in the same quarter of the previous year, indicating a significant decrease[64]. - The total comprehensive income attributable to the parent company was -286,206,334.41 RMB, compared to 434,473,809.34 RMB in the same period last year[66]. Cash Flow - Net cash flow from operating activities was ¥173,387,167.49, down 68.99% from the previous year[12]. - The net cash flow from operating activities was -170,128,031.86 RMB in Q1 2020, compared to 370,095,924.53 RMB in Q1 2019, indicating a significant decline[74]. - Cash inflow from operating activities totaled 1,043,483,344.34 RMB in Q1 2020, up from 684,048,246.17 RMB in Q1 2019[74]. - Cash outflow from operating activities increased to 1,213,611,376.20 RMB in Q1 2020, compared to 313,952,321.64 RMB in Q1 2019[74]. - The net cash flow from investing activities was -269,152,336.72 RMB in Q1 2020, worsening from -177,057,719.04 RMB in Q1 2019[76]. - The net cash flow from financing activities was 899,429,448.71 RMB in Q1 2020, a recovery from -362,316,285.94 RMB in Q1 2019[76]. - Cash inflow from financing activities reached 1,450,000,000.00 RMB in Q1 2020, significantly higher than 200,000,000.00 RMB in Q1 2019[76]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥38,575,566,381.49, an increase of 2.27% compared to the end of the previous year[12]. - Current assets increased to ¥8,977,146,099.70 from ¥7,846,134,471.90, representing a growth of approximately 14.4% year-over-year[47]. - Total liabilities rose to ¥22,702,857,926.20 from ¥21,569,281,723.71, an increase of about 5.3%[52]. - Short-term borrowings increased significantly to ¥1,750,000,000.00 from ¥500,000,000.00, a rise of 250%[52]. - The company's equity attributable to shareholders decreased to ¥14,989,934,614.70 from ¥15,274,761,768.33, a decline of approximately 1.9%[52]. - The total owner's equity decreased to ¥15,872,708,455.29 from ¥16,150,831,177.99, indicating a decrease of about 1.7%[52]. Investments and Projects - The company is actively developing the Dazhonghe health tourism project with an estimated total investment of approximately ¥6 billion[30]. - The Chengle Expressway expansion project has a total estimated investment of about ¥231.33 billion, with cumulative investments reaching approximately ¥28.24 billion as of March 31, 2020[29]. - The company acquired land use rights for the Renshou North City real estate project, covering an area of 235,558.10 square meters at a transaction price of RMB 920,160 thousand[34]. - The company established Sichuan Chengyu Education Investment Co., Ltd. with a registered capital of RMB 480 million to invest in vocational technical schools, with a total estimated investment of approximately RMB 1.5 billion[37]. - The company won the bid for the Chengdu Tianfu New Area to Qionglai Expressway project, with a total estimated investment of approximately RMB 8.685 billion, and plans to start construction in 2020[38]. - The company plans to invest approximately RMB 3.38 billion for a 7% stake in a joint venture to acquire 51% of the shares in the ICA company, which operates the third Bosphorus Bridge in Turkey[40].

[Company Overview](index=2&type=section&id=Company%20Overview) This section provides fundamental information about the company, including definitions, basic legal details, and a concise profile of its core business and financial standing [Definitions](index=2&type=section&id=Definitions) This section defines key road projects, abbreviations of associated companies, and other professional terms used in the report, providing a foundational understanding - Major road projects mentioned in the report include Airport Expressway, Chengle Expressway, Chengya Expressway, and Chengyu Expressway[5](index=5&type=chunk) - Key subsidiaries and investment entities mentioned include Renshou Land Company, Shuhai Company, Jiaotou Construction Company, and Zhonglu Energy Company[26](index=26&type=chunk) [Company Information](index=8&type=section&id=Company%20Information) This section provides the company's basic legal and contact information, including its legal name, registered address, stock exchange codes, board secretary contact, and information disclosure channels Company Details | Item | Information | | :--- | :--- | | Company Name | Sichuan Chengyu Expressway Company Limited | | A-share Code | 601107 (Shanghai Stock Exchange) | | H-share Code | 00107 (The Stock Exchange of Hong Kong Limited) | | Legal Representative | Gan Yongyi | | Registered Address | No. 252 Wuhouci Street, Chengdu, Sichuan Province, China | [Company Profile](index=10&type=section&id=Company%20Profile) Established in 1997, the company is listed in Hong Kong and Shanghai, primarily investing in, constructing, operating, and managing expressways in Sichuan Province, with total assets of approximately **RMB 37.86 billion** and operating **744 kilometers** of expressways by end of 2019 - The company primarily holds all or a majority of equity interests in expressways within Sichuan Province, including Chengyu Expressway, Chengya Expressway, and Chengle Expressway[76](index=76&type=chunk) Key Indicators (as of December 31, 2019) | Indicator | Amount (RMB thousands) | | :--- | :--- | | Total Toll Road Mileage | Approximately **744 kilometers** | | Total Assets | **37,860,574** | | Net Assets | **16,153,968** | [Chairman's Report](index=13&type=section&id=Chairman's%20Report) This report provides an overview of the company's performance, strategic initiatives, and future outlook, highlighting key achievements and challenges faced during the reporting period [Performance and Dividends](index=14&type=section&id=Performance%20and%20Dividends) In 2019, net profit attributable to owners increased by **27.83%** to **RMB 1.086 billion**, with a proposed final cash dividend of **RMB 0.11** per share (tax inclusive) Performance and Proposed Dividend | Indicator | 2019 | 2018 | YoY Change | | :--- | :--- | :--- | :--- | | Profit attributable to owners (RMB thousands) | **1,086,131** | **849,638** | **+27.83%** | | Basic Earnings Per Share (RMB) | **0.355** | **0.278** | **+27.70%** | | Proposed Final Dividend Per Share (RMB) | **0.11** | - | - | [2019 Business Review](index=15&type=section&id=2019%20Business%20Review) The company achieved steady operational growth in 2019, with net revenue increasing by **14.45%** and significant breakthroughs in its core toll road business and diversified segments - In 2019, the company's toll revenue reached **RMB 3.899 billion**, a **9.29%** year-on-year increase; revenue from related diversified segments reached **RMB 3.908 billion**, accounting for **50.06%** of total revenue[85](index=85&type=chunk) - Major breakthroughs in the core toll road business include: - Winning the bid for the Tianqiong Expressway project as the lead party - Jointly participating with other companies in the acquisition of the Istanbul Third Bridge and Northern Ring Expressway in Turkey - Completion and opening of the experimental section of the Chengle Expressway expansion project[86](index=86&type=chunk) - Significant achievements in diversified business segments: - **Financial Investment**: Financing lease company achieved growth in both revenue and profit, with an investment of **RMB 69 million** in China Railway Signal & Communication Corporation Limited[86](index=86&type=chunk) - **Urban Operations**: Renshou Beicheng Times project generated sales proceeds of **RMB 1.01 billion**[86](index=86&type=chunk) - **Energy Sales**: Zhonglu Energy Company's net profit increased by **70.26%** year-on-year, achieving its best historical performance[86](index=86&type=chunk) - **Culture, Tourism, and Education**: The Dashuan River health and wellness tourism project in Lushan County entered the substantive promotion phase[87](index=87&type=chunk) [Outlook and Strategies](index=18&type=section&id=Outlook%20and%20Strategies) For 2020, the company plans to strengthen its core toll road business and diversified segments, while implementing cost control and efficiency measures to mitigate the impact of the COVID-19 toll-free policy - The company will wage a "main business offensive" to consolidate its core foundation and a "diversified industry positional battle" to strengthen business segments aligned with its main operations[89](index=89&type=chunk) - To address the toll-free policy during the COVID-19 pandemic, the company will implement measures such as cost control, budget adjustments, efficiency improvements, orderly resumption of work, and seeking supporting policies, striving to balance social responsibility with economic benefits[89](index=89&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review and analysis of the Group's business performance, financial results, and future development plans for the reporting period [Business Review and Analysis](index=19&type=section&id=Business%20Review%20and%20Analysis) In 2019, the Group's net revenue grew by **14.45%** to **RMB 7.807 billion**, and net profit attributable to owners increased by **27.83%** to **RMB 1.086 billion**, driven by strong performance in urban operations and financial investments 2019 Net Revenue and YoY Change by Business Segment | Business Segment | Net Revenue (RMB thousands) | YoY Growth Rate | | :--- | :--- | :--- | | Toll Road | **3,899,438** | **9.29%** | | Financial Investment | **147,321** | **68.36%** | | Urban Operations | **1,987,349** | **57.96%** | | Energy Investment | **1,772,635** | **-7.06%** | | **Total** | **7,806,743** | **14.45%** | [Performance Summary](index=19&type=section&id=Performance%20Summary) The Group's net revenue increased by **14.45%** to **RMB 7.807 billion**, and net profit attributable to owners grew by **27.83%** to **RMB 1.086 billion**, with varied performance across key subsidiaries Performance of Major Subsidiaries (2019) | Company Name | Revenue (RMB thousands) | Revenue YoY | Profit (RMB thousands) | Profit YoY | | :--- | :--- | :--- | :--- | :--- | | Chengren Branch | **1,021,189** | **18.07%** | **393,342** | **38.50%** | | Chengle Company | **496,947** | **-11.57%** | **258,330** | **-16.48%** | | Suiguang Suixi Company | **370,984** | **30.10%** | **(340,573)** | **-20.29%** (loss reduction) | | Ziyang Shunan Company | **263,957** | **19.71%** | **42,424** | **469.76%** | | Zhonglu Energy Company | **1,272,981** | **-10.52%** | **41,318** | **70.26%** | | Chengyu Financial Leasing Company | **143,399** | **63.88%** | **44,564** | **22.61%** | [Toll Road Segment Operations](index=23&type=section&id=Toll%20Road%20Segment%20Operations) In 2019, total toll revenue increased by **9.28%** to **RMB 3.915 billion**, driven by policy changes and traffic growth, though some expressways experienced declines due to construction Expressway Operating Performance (2019) | Project | Daily Average Vehicle Traffic | Traffic YoY | Toll Revenue (RMB thousands) | Revenue YoY | | :--- | :--- | :--- | :--- | :--- | | Chengyu Expressway | **23,042** | **-6.56%** | **944,238** | **13.74%** | | Chengya Expressway | **41,596** | **3.12%** | **966,357** | **5.37%** | | Chengren Expressway | **40,389** | **1.31%** | **1,024,965** | **18.08%** | | Chengle Expressway | **28,943** | **-17.95%** | **498,832** | **-11.57%** | | Suixi Expressway | **2,929** | **10.91%** | **154,873** | **52.54%** | - Toll revenue growth was influenced by multiple favorable policies, including the cancellation of toll fee discounts for normally loaded trucks starting January 15, 2019, and the reclassification of 20-30 seat passenger vehicles as Class III vehicles from January 1, 2019[100](index=100&type=chunk)[101](index=101&type=chunk) - Chengle Expressway and Chengbei Exit Expressway experienced negative impacts on vehicle traffic and toll revenue due to expansion and road surface treatment construction closures[111](index=111&type=chunk) [Diversified Business Operations](index=31&type=section&id=Diversified%20Business%20Operations) The diversified business segments achieved significant results in 2019, with urban operations and financial investments showing strong revenue growth, while energy investment saw a slight decline - **Urban Operations**: Net revenue of **RMB 1.987 billion**, a **57.96%** year-on-year increase, primarily contributed by BT/PPP projects[112](index=112&type=chunk) - **Energy Investment**: Net revenue of **RMB 1.773 billion**, a **7.06%** year-on-year decrease, mainly due to reduced sales of petrochemical products[112](index=112&type=chunk) - **Financial Investment**: Net revenue of **RMB 147 million**, a **68.36%** year-on-year increase, with business covering various forms such as financing leases, trusts, and banking[112](index=112&type=chunk) - **Culture, Tourism, and Education**: As an emerging business segment, it achieved breakthroughs, with an investment intention agreement signed for the Dashuan River health and wellness tourism project in Lushan County[113](index=113&type=chunk) [Major Investment and Financing Projects](index=32&type=section&id=Major%20Investment%20and%20Financing%20Projects) The Group advanced several major investment projects, including the **RMB 22.16 billion** Chengle Expressway expansion, the **RMB 8.685 billion** Tianqiong Expressway, and an overseas acquisition in Turkey - **Chengle Expressway Expansion Project**: Estimated total investment of approximately **RMB 22.16 billion**, with the experimental section opened in November 2019, and cumulative investment reaching **RMB 2.712 billion** by year-end[114](index=114&type=chunk) - **Tianqiong Expressway Project**: The company successfully won the bid as the lead party, with an estimated total investment of **RMB 8.685 billion**, adopting a BOT model, and a project company established for investment, construction, and operation[120](index=120&type=chunk)[121](index=121&type=chunk) - **Turkey Acquisition Project**: Jointly with China Merchants Expressway and other companies, the Group plans to acquire a **51%** equity stake in the Istanbul Third Bridge and Northern Ring Expressway project in Turkey, with the company intending to invest **USD 48.195 million** for a **7%** stake[122](index=122&type=chunk) - **China Railway Signal & Communication Corporation Limited A-share IPO Strategic Placement**: Participated in the strategic placement with **RMB 69.258 million** of self-owned funds, acquiring **11.839 million** shares with a 12-month lock-up period[124](index=124&type=chunk) [Financial Review and Analysis](index=37&type=section&id=Financial%20Review%20and%20Analysis) The Group's total revenue increased by **14.45%**, driven by urban operations and financial investments, while operating expenses rose by **15.32%** due to construction costs, leading to a **25.67%** increase in profit for the year 2019 Operating Results Summary (RMB thousands) | Indicator | 2019 | 2018 | | :--- | :--- | :--- | | Revenue | **7,806,743** | **6,820,997** | | Profit Before Tax | **1,463,539** | **1,205,912** | | Profit Attributable to Owners | **1,086,131** | **849,638** | Financial Position Summary (RMB thousands) | Indicator | December 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Total Non-current Assets | **28,950,380** | **28,257,374** | | Total Current Assets | **8,910,194** | **7,777,684** | | **Total Assets** | **37,860,574** | **36,035,058** | | Total Current Liabilities | **7,395,309** | **5,277,181** | | Total Non-current Liabilities | **14,311,297** | **15,873,478** | | **Total Liabilities** | **21,706,606** | **21,150,659** | | **Net Assets** | **16,153,968** | **14,884,399** | [Operating Results Analysis](index=38&type=section&id=Operating%20Results%20Analysis) Revenue growth of **14.45%** was primarily driven by urban operations and financial investments, while operating expenses increased by **15.32%** due to construction costs, resulting in a **27.83%** increase in profit attributable to owners - Revenue growth was primarily driven by the urban operations segment (**+57.96%**) and the financial investment segment (**+68.36%**)[127](index=127&type=chunk)[128](index=128&type=chunk) - Operating expenses increased by **15.32%**, mainly due to a substantial **95.94%** year-on-year increase in construction costs related to service concession arrangements[130](index=130&type=chunk) - Full-year profit attributable to owners increased by **27.83%**, primarily contributed by a **RMB 216 million** increase in profit from the toll road segment and a **RMB 78 million** increase in profit from the urban operations segment[133](index=133&type=chunk) [Financial Position Analysis](index=42&type=section&id=Financial%20Position%20Analysis) As of year-end 2019, total assets grew to **RMB 37.86 billion**, with non-current assets increasing due to the Chengle Expressway expansion, and the debt-to-capital ratio improving to **57.33%** - Non-current assets increased by **RMB 693 million**, primarily due to a **RMB 613 million** increase in service concession arrangements (Chengle Expressway expansion project)[134](index=134&type=chunk) - Current liabilities significantly increased by **40.14%**, mainly due to the reclassification of bank and other interest-bearing loans due within one year[136](index=136&type=chunk) - The debt-to-capital ratio (total liabilities/total assets) was **57.33%**, a decrease from **58.69%** at the end of 2018[139](index=139&type=chunk) [Cash Flow Analysis](index=44&type=section&id=Cash%20Flow%20Analysis) Cash and bank balances decreased by **RMB 706 million** to **RMB 2.95 billion** at year-end 2019, with operating cash flow significantly reduced due to increased trade receivables and service concession arrangements Consolidated Cash Flow Summary (RMB thousands) | Cash Flow Item | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | **607,204** | **1,939,479** | | Net Cash Flow from/(Used in) Investing Activities | **689,180** | **(536,992)** | | Net Cash Flow from Financing Activities | **(2,002,100)** | **(464,320)** | | Net Increase/(Decrease) in Cash and Cash Equivalents | **(705,716)** | **938,167** | [Business Development Plan](index=48&type=section&id=Business%20Development%20Plan) The 2020 plan focuses on strengthening the core expressway business and diversified industries through strategic investments, capital structure optimization, cost control, and institutional innovation - Consolidate core business: Increase investment in new expressway construction and expansion of existing road networks with clear geographical advantages and good profit expectations, and actively implement a "going out" strategy to acquire high-quality expressway projects both domestically and internationally[149](index=149&type=chunk) - Strengthen diversification: Leverage the advantages of road network resources (vehicle flow, logistics, human flow, cash flow) to expand related business areas and improve the return on project capital[149](index=149&type=chunk) - Optimize capital structure: Coordinate financing plans, utilize favorable financial, fiscal, and tax policies, reasonably adjust debt levels, and effectively reduce financial expenses[150](index=150&type=chunk) [Corporate Governance Report](index=49&type=section&id=Corporate%20Governance%20Report) This report details the company's corporate governance framework, compliance with regulatory codes, and the roles and responsibilities of its board, committees, and shareholders [Corporate Governance Status](index=49&type=section&id=Corporate%20Governance%20Status) The company largely complied with governance codes, with minor deviations, and maintained a robust governance structure with a board, supervisory committee, and management, supported by four specialized board committees - During the reporting period, the company complied with most provisions of the HKEX Corporate Governance Code, with only two deviations: some directors were unable to attend general meetings due to official duties; and the roles of Chairman and General Manager were temporarily held by the same person[151](index=151&type=chunk) - The Board confirmed its responsibility for establishing, implementing, and overseeing the company's risk management and internal control systems, reviewing their effectiveness annually; in 2019, the "Internal Control Manual" was revised and improved, with overall internal control operating effectively[154](index=154&type=chunk)[155](index=155&type=chunk) [Shareholders and General Meetings](index=54&type=section&id=Shareholders%20and%20General%20Meetings) The company ensures equal treatment for all shareholders, maintains independence from major shareholders, and adheres to a stable dividend policy with a cash payout ratio of no less than **30%** of distributable profit - The company maintains complete separation from its major shareholders in five aspects: personnel, assets, finance, organization, and business, ensuring independent operation[159](index=159&type=chunk) - The company's cash dividend policy stipulates that if cash dividends are distributed, the ratio shall not be less than **30%** of the parent company's distributable profit for the current period (whichever is lower between domestic and overseas standards)[163](index=163&type=chunk) [Board of Directors and Directors](index=61&type=section&id=Board%20of%20Directors%20and%20Directors) The Board, comprising 12 members with over one-third independent non-executive directors, oversees strategic decisions and major investments, supported by four specialized committees, and provides continuous professional development for directors - The Board has four specialized committees: Audit Committee, Strategy Committee, Nomination Committee, and Remuneration and Appraisal Committee, to assist in effectively fulfilling its duties[174](index=174&type=chunk) - As of the end of 2019, the Board consisted of 12 members, including 4 independent non-executive directors, accounting for over one-third, meeting regulatory requirements[175](index=175&type=chunk) [Board Committees](index=67&type=section&id=Board%20Committees) This section details the responsibilities and annual work of the Audit, Strategy, Nomination, and Remuneration & Appraisal Committees, highlighting their oversight of financial reporting, internal control, strategic planning, and executive compensation - **Audit Committee**: Fulfills corporate governance functions, monitors internal control, financial reporting, and risk management procedures, and provides recommendations on the appointment of external auditors[191](index=191&type=chunk) - **Strategy Committee**: Researches and provides recommendations on the company's long-term development strategy and major investment and financing proposals[200](index=200&type=chunk) - **Nomination Committee**: Responsible for formulating the board's diversity policy, researching selection criteria and procedures for directors and senior management, and making recommendations[201](index=201&type=chunk) - **Remuneration and Appraisal Committee**: Responsible for formulating and recommending remuneration policies and conducting performance appraisals for directors and senior management[203](index=203&type=chunk) [Directors' Report](index=79&type=section&id=Directors'%20Report) This report provides an overview of the Group's principal activities, key risks, and connected transactions during the reporting period [Principal Activities](index=80&type=section&id=Principal%20Activities) The Group's principal activities involve investing in, constructing, operating, and managing expressway infrastructure projects, complemented by diversified operations across five segments - The expressways managed and operated by the Group include Chengyu Expressway, Chengya Expressway, Chengren Expressway, Chengle Expressway, Chengbei Exit Expressway, Suixi Expressway, and Suiguang Expressway[215](index=215&type=chunk) [Principal Risks and Uncertainties](index=81&type=section&id=Principal%20Risks%20and%20Uncertainties) The company faces policy, market, financial, and management risks, which it addresses through government engagement, project development, diversification, and enhanced internal controls - **Policy Risks**: Toll standard adjustments, operating period limitations, and changes in toll collection methods (cancellation of provincial border toll stations); countermeasures include strengthening communication with the government, rolling out new projects, and implementing a diversified strategy[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk) - **Market Risks**: Macroeconomic fluctuations leading to changes in traffic volume, and increased competition from a denser regional road network; countermeasures include continuous monitoring of macroeconomic conditions and strengthening road network research and analysis[222](index=222&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk) - **Management Risks**: Risks from daily operations (e.g., maintenance, traffic accidents) and natural disasters, as well as the long payback period and uncertainty of expressway investment projects; countermeasures include strengthening preventive maintenance, optimizing investment decision-making processes, and promoting refined management[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk) [Connected Transactions](index=95&type=section&id=Connected%20Transactions) The Group engaged in various connected transactions, including construction, procurement, and overseas acquisitions with related parties, all conducted under fair terms and approved by independent non-executive directors - Engaged in ongoing connected transactions with Sichuan Provincial Investment Group Co., Ltd. (Sichuan Jiaotou) and its subsidiaries, including construction engineering, material procurement, office leasing, and sales agency[259](index=259&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk) - Jointly established a joint venture with major shareholder China Merchants Expressway and other consortium members to acquire an expressway project in Turkey[258](index=258&type=chunk) - Subsidiary Zhonglu Energy purchased refined oil products from related party PetroChina Sichuan Sales Branch, with annual procurement amounting to approximately **RMB 1.071 billion**[262](index=262&type=chunk) [Directors, Supervisors, Senior Management, and Employees](index=100&type=section&id=Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Employees) This section details changes in the company's leadership team and provides an overview of its employee structure, compensation, and training initiatives [Changes in Directors, Supervisors, and Senior Management](index=102&type=section&id=Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) The company experienced significant changes in its leadership team in 2019, including the resignation of the Chairman and Vice Chairman, and the election of new board and supervisory committee members - Mr. Zhou Liming resigned as Chairman on December 31, 2019, and Mr. Gan Yongyi was elected as the new Chairman on January 17, 2020[280](index=280&type=chunk) - On November 13, 2019, the company completed the re-election of its Board of Directors and Supervisory Committee, with several directors and supervisors retiring upon term expiration and a new cohort of members elected[280](index=280&type=chunk) [Employee Information](index=114&type=section&id=Employee%20Information) As of year-end 2019, the Group had **4,428** employees, predominantly production staff, with over **80%** holding college degrees or higher, supported by performance-linked compensation, comprehensive benefits, and extensive training Employee Statistics | Item | Number of People | | :--- | :--- | | Total Employees | **4,428** | | **Professional Composition** | | | Production Personnel | **3,213** | | Technical Personnel | **522** | | Administrative Personnel | **523** | | **Education Level** | | | Postgraduate and Above | **190** | | Bachelor's Degree | **1,215** | | College Degree | **2,118** | [Supervisors' Report](index=115&type=section&id=Supervisors'%20Report) This report presents the independent opinion of the Supervisory Committee on the company's operations, governance, financial reporting, and connected transactions for the year [Independent Opinion of the Supervisory Committee](index=119&type=section&id=Independent%20Opinion%20of%20the%20Supervisory%20Committee) The Supervisory Committee confirmed the company's lawful operations, compliant decision-making, effective internal controls, diligent performance of directors and senior management, and fair connected transactions - The company operated lawfully, with compliant decision-making procedures, and directors and senior management performed diligently, with no actions found to harm the company or shareholders' interests[305](index=305&type=chunk) - The company's financial reports are true and accurate, and the auditor issued a standard unqualified audit opinion[306](index=306&type=chunk) - The company's internal control evaluation report is comprehensive and objective, indicating a relatively complete internal control system[307](index=307&type=chunk) - The company's connected transactions were reasonably priced and compliant with procedures, with no insider trading[308](index=308&type=chunk) [Independent Auditor's Report](index=120&type=section&id=Independent%20Auditor's%20Report) This report presents the independent auditor's opinion on the company's financial statements and highlights key audit matters identified during the audit process [Audit Opinion](index=121&type=section&id=Audit%20Opinion) Ernst & Young issued an unqualified audit opinion on the 2019 consolidated financial statements, affirming their fair presentation in accordance with Hong Kong Financial Reporting Standards and Companies Ordinance - The auditor believes that the consolidated financial statements fairly and accurately reflect the financial position, operating results, and cash flows of the company and the Group in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants and the disclosure requirements of the Hong Kong Companies Ordinance[311](index=311&type=chunk) [Key Audit Matters](index=121&type=section&id=Key%20Audit%20Matters) Key audit matters included the impairment assessment of trade receivables, customer loans, and contract assets, and the amortization of service concession arrangements, both involving significant management judgment and estimation - **Impairment of Trade Receivables, Customer Loans, and Contract Assets**: Management is required to estimate expected credit losses (ECL) based on customer credit status, aging, forward-looking information, etc., involving significant judgment[314](index=314&type=chunk) - **Amortization of Service Concession Arrangements**: Amortization is determined using the units-of-production method, based on the proportion of estimated total vehicle traffic over the entire operating period, which involves significant judgment and estimation of factors like GDP growth and road network impact[315](index=315&type=chunk) [Financial Statements and Notes](index=126&type=section&id=Financial%20Statements%20and%20Notes) This section comprises the consolidated financial statements and their accompanying notes, providing a detailed account of the company's financial performance, position, and cash flows [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=126&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the company's financial performance for 2019, showing **RMB 7.807 billion** in revenue, **RMB 1.464 billion** in profit before tax, and **RMB 1.086 billion** in profit attributable to owners 2019 Consolidated Statement of Profit or Loss Key Data (RMB thousands) | Indicator | 2019 | 2018 | | :--- | :--- | :--- | | Revenue | **7,806,743** | **6,820,997** | | Gross Profit | **2,305,206** | **2,072,476** | | Profit Before Tax | **1,463,539** | **1,205,912** | | Profit for the Year | **1,133,289** | **901,826** | | Profit Attributable to Owners | **1,086,131** | **849,638** | [Consolidated Statement of Financial Position](index=128&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) This statement reflects the company's financial position as of December 31, 2019, with total assets of **RMB 37.861 billion**, total liabilities of **RMB 21.707 billion**, and net assets (total equity) of **RMB 16.154 billion** 2019 Consolidated Statement of Financial Position Key Data (RMB thousands) | Indicator | December 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Total Non-current Assets | **28,950,380** | **28,257,374** | | Total Current Assets | **8,910,194** | **7,777,684** | | **Total Assets** | **37,860,574** | **36,035,058** | | Total Current Liabilities | **7,395,309** | **5,277,181** | | Total Non-current Liabilities | **14,311,297** | **15,873,478** | | **Total Liabilities** | **21,706,606** | **21,150,659** | | **Net Assets** | **16,153,968** | **14,884,399** | [Consolidated Statement of Cash Flows](index=132&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) This statement details the company's cash flows for 2019, with **RMB 607 million** net cash from operating activities, **RMB 689 million** net cash from investing activities, and **RMB 2.002 billion** net cash used in financing activities 2019 Consolidated Statement of Cash Flows Summary (RMB thousands) | Item | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | **607,204** | **1,939,479** | | Net Cash Flow from/(Used in) Investing Activities | **689,180** | **(536,992)** | | Net Cash Flow from Financing Activities | **(2,002,100)** | **(464,320)** | | Net Increase/(Decrease) in Cash and Cash Equivalents | **(705,716)** | **938,167** | [Notes to the Financial Statements](index=134&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed explanations and supplementary information to the financial statements, covering accounting policies, estimates, segment information, revenue, connected transactions, and post-balance sheet events - The notes disclose the toll-free policy implemented at the beginning of 2020 due to the COVID-19 pandemic, indicating that this event may have a significant adverse impact on the Group's financial position in 2020[577](index=577&type=chunk)

Financial Performance - The net profit attributable to the parent company for 2019 was approximately RMB 1,082.67 million, with a net profit of RMB 1,148.61 million after extracting 40% for reserves[7]. - The company achieved a net profit of RMB 300 million, up 20% compared to the previous year[35]. - The company's operating revenue for 2019 was approximately ¥6.41 billion, representing a 7.35% increase compared to ¥5.97 billion in 2018[36]. - Net profit attributable to shareholders was approximately ¥1.08 billion, a 27.49% increase from ¥849.20 million in the previous year[36]. - The company reported total operating revenue of RMB 6.408 billion, a year-on-year growth of 7.35%[75]. - Total profit reached RMB 1.46 billion, reflecting a year-on-year increase of 21.18%[75]. - The net profit attributable to shareholders reached approximately RMB 1,083 million, reflecting a year-on-year growth of 27.49%[138]. - Basic earnings per share were approximately RMB 0.3540, an increase of about 27.48% compared to the previous year[138]. Dividends and Shareholder Returns - The proposed cash dividend is RMB 0.11 per share, totaling approximately RMB 336.39 million, which accounts for 48.81% of the distributable profit for the year[7]. - The company has committed to maintaining a minimum cash dividend ratio of 30% of the distributable profit[7]. - Basic earnings per share for 2019 was ¥0.3540, up 27.48% from ¥0.2777 in 2018[37]. Revenue Sources and Growth - Toll revenue from the toll road segment was RMB 3.915 billion, up 9.28% year-on-year[75]. - The diversified business segment generated revenue of RMB 2.431 billion, accounting for 37.94% of the company's total revenue[75]. - The "Toll Bridge" segment generated revenue of approximately RMB 3,976.72 million, with a year-on-year increase of about 9.90%[91]. - The "Financial Investment" segment saw a significant revenue increase of approximately 67.76%, totaling around RMB 147.83 million[91]. - The "Urban Operations" segment reported revenue of approximately RMB 509.01 million, reflecting a year-on-year growth of about 44.66%[91]. Strategic Initiatives and Future Outlook - The company has outlined its future plans and development strategies, emphasizing the importance of risk awareness for investors[8]. - The company is pursuing strategic acquisitions, targeting a 30% increase in market share through these initiatives[35]. - The company is actively pursuing diversification strategies, including urban infrastructure, real estate development, and energy investment, to enhance overall efficiency and risk resilience[55]. - The company is focusing on enhancing its governance capabilities and has been recognized as an "A" level company for information disclosure by the Shanghai Stock Exchange[80]. - The company plans to strengthen its strategic layout and improve its comprehensive competitiveness in response to external economic pressures and internal management challenges[81]. Risk Management - The company has detailed potential risks including policy, market, financial, and management risks in the report[11]. - The company has not engaged in non-operational fund occupation by controlling shareholders or related parties[11]. Operational Metrics - User data indicates a 10% increase in active users, totaling 1.5 million users by the end of the reporting period[35]. - The company reported traffic flow increases across most toll road projects compared to the previous year, contributing to the overall growth in toll revenue[97]. - The overall operating performance of the company's expressways was positively influenced by a stable economic environment, with Sichuan Province's GDP growing by 7.5%, which is 1.4 percentage points higher than the national average[97]. Investments and Acquisitions - The company successfully completed the acquisition of the Istanbul "Bosphorus Third Bridge and Northern Ring Highway" project, marking a significant international expansion[76]. - The company signed an investment intention agreement for the Dazhonghe Health Tourism Project in Lushan County, with a total investment estimated at approximately RMB 6 billion and a construction period of 6 years[118]. - The company plans to invest approximately RMB 338 million for a 7% stake in a joint venture to acquire 51% of the shares and shareholder debt of ICA Company in Turkey, with a total registered capital of USD 688.5 million (approximately RMB 4.828 billion)[127]. Financial Position and Assets - Total assets at the end of 2019 were approximately ¥37.72 billion, a 4.19% increase from ¥36.20 billion at the end of 2018[36]. - The net assets attributable to shareholders increased by 5.40% to approximately ¥15.27 billion from ¥14.49 billion at the end of 2018[36]. - As of December 31, 2019, the total toll road mileage managed by the company is approximately 744 kilometers, with total assets and net assets amounting to approximately RMB 37.72 billion and RMB 16.15 billion, respectively[50]. Challenges and Economic Environment - The company anticipates that the ongoing global COVID-19 pandemic may impact future operations and revenue streams[104]. - The overall economic environment and policy changes are expected to continue influencing the company's performance in the upcoming periods[97].