Toll Revenue and Traffic Volume - The net toll revenue from the Guangzhou-Shenzhen Expressway, Guangzhu West Line Expressway, and the沿江 Expressway (Shenzhen section) totaled approximately RMB 2.331 billion, representing a year-on-year growth of 1%[3]. - The average daily toll revenue for the Guangzhou-Shenzhen Expressway increased by 0.3% to approximately RMB 7.71 million, while the average daily mixed traffic volume decreased by 4% to approximately 604,000 vehicles[5]. - The average daily toll revenue for the Guangzhu West Line Expressway increased by 0.6% to approximately RMB 3.43 million, with a decrease in average daily mixed traffic volume by 3% to approximately 253,000 vehicles[5]. - The average daily toll revenue for the沿江 Expressway (Shenzhen section) increased by 2% to approximately RMB 1.67 million, while the average daily mixed traffic volume decreased by 1% to approximately 180,000 vehicles[5]. - In the first half of 2024, the total toll revenue for the Guangzhou-Shenzhen Expressway was approximately RMB 1.403 billion, with a slight year-on-year increase of 0.9%[18]. - The average daily mixed traffic volume for the Guangzhou-Shenzhen Expressway in the first half of 2024 was approximately 604,000 vehicles, a decrease of 3.7% year-on-year[23]. - The toll revenue from Class 1 vehicles accounted for 82.6% of the total toll revenue for the Guangzhou-Shenzhen Expressway in the first half of 2024[24]. - The total toll revenue for the Guangzhou-Zhuhai West Line Expressway in the first half of 2024 was approximately RMB 623 million, with a year-on-year increase of 1.1%[29]. - The average daily mixed traffic volume for the Guangzhou-Zhuhai West Line Expressway in the first half of 2024 was approximately 253,000 vehicles, a decrease of 3.4% year-on-year[28]. - In the first half of 2024, the total toll revenue for the Shenzhen section of the Yangjiang Expressway was approximately RMB 305 million, with an average daily toll revenue of about RMB 1.67 million, reflecting a year-on-year increase of 2%[31]. Economic Indicators - The total social logistics volume in China reached RMB 167.4 trillion in the first half of 2024, reflecting a year-on-year growth of 5.8%[6]. - The GDP of China for the first half of 2024 was approximately RMB 61.68 trillion, with a year-on-year growth of 5%[6]. Infrastructure Development - The Guangdong Provincial Transportation Department emphasized the need to enhance the interconnectivity of transportation infrastructure in the Greater Bay Area, aiming to create a "one-hour living circle" by accelerating project planning and construction[9]. - The new regulations on infrastructure and public utility concessions will positively impact the development of operational expressways by extending the maximum concession period to 40 years[11]. - The revision of the toll road management regulations aims to strengthen the management of toll roads and protect the rights of both operators and users, promoting the development of the road sector[12]. - The opening of the Shenzhen-Zhongshan Channel on June 30, 2024, is expected to have a minor positive impact on traffic distribution for the Guangzhou-Shenzhen Expressway[19]. Financial Performance - The company reported a 1% year-on-year increase in total revenue for the first half of 2024, amounting to RMB 1.271 billion, with a net profit of RMB 296 million, representing a 40% increase compared to the previous year[40]. - The group's EBITDA rose by 7% year-on-year to approximately RMB 1.123 billion, with the Jiangyan Expressway (Shenzhen section) EBITDA increasing by 2% to approximately RMB 257 million[43]. - The net profit attributable to the group from the Jiangyan Expressway (Shenzhen section) was approximately RMB 105 million, a 2% increase from the previous year, while the share of net profit from the Guangshen joint venture increased by 49% to approximately RMB 233 million[47]. - The total interest and tax expenses for the group rose by 8% year-on-year to approximately RMB 239 million, influenced by increased toll revenue[46]. - The group's financial costs increased by 14% year-on-year to approximately RMB 87 million, primarily due to rising interest rates on HKD loans[50]. - The group anticipates a year-on-year adverse change in performance for the current year due to the reversal of road surface responsibility provisions, but maintains a cautiously optimistic long-term outlook[52]. - The group aims to maintain a regular dividend payout ratio of 100% of recurring income for the year[52]. - The net profit attributable to equity shareholders for the group was approximately RMB 241 million, a 40% increase compared to RMB 172 million in the previous year[50]. Cash and Debt Management - As of June 30, 2024, the group's cash and cash equivalents amounted to RMB 957 million, a slight increase from RMB 950 million as of December 31, 2023[56]. - The group's net debt as of June 30, 2024, was RMB 3.52 billion, compared to RMB 3.17 billion at the end of 2023, indicating an increase in leverage[56]. - The total liabilities of the group reached RMB 17.06 billion as of June 30, 2024, compared to RMB 17.04 billion at the end of 2023, reflecting a slight increase[61]. - The asset-liability ratio increased to 40% as of June 30, 2024, up from 38% at the end of 2023, indicating a rise in financial leverage[61]. - The group's cash and cash equivalents in the Liangjiang Company increased to RMB 228 million as of June 30, 2024, from RMB 102 million at the end of 2023[56]. - The group's share of cash and cash equivalents in the Guangshen joint venture rose to RMB 493 million as of June 30, 2024, compared to RMB 349 million at the end of 2023[59]. - The total amount of bank loans due within one year increased to RMB 1,912,798,000 from RMB 1,817,816,000, marking a rise of 5.2%[158]. - The company’s bank loans increased to RMB 4,032 million in 2023 from RMB 3,957 million in 2022, indicating a 1.9% growth[179]. Corporate Governance and Compliance - The company has adhered to all provisions of the corporate governance code during the review period, except for the absence of the chairman at the annual general meeting due to other work commitments[93]. - The company is committed to maintaining compliance with the Hong Kong Stock Exchange listing rules and corporate governance standards[194]. - The company’s board of directors includes experienced professionals with diverse backgrounds in finance and management, ensuring effective oversight and strategic direction[194]. Employee Management and Development - The company is committed to providing competitive compensation and benefits, including retirement contributions and medical insurance, to enhance employee productivity[88]. - The company has implemented a training program to address skill gaps identified in performance evaluations, aiming to improve employee productivity[88]. - The company has 556 employees as of June 30, 2024, including 494 employees from Jiang Company[88]. Investment and Land Development - The cumulative contract sales amount for the Park City project reached approximately RMB 3.669 billion, with an average selling price of RMB 25,000 per square meter[35]. - The Guangzhou-Shenzhen expansion project is expected to have a total investment of approximately RMB 29.4 billion, with the company planning to contribute no more than RMB 3.7 billion[36]. - The company is actively communicating with relevant government departments to explore land development opportunities along the Guangzhou-Shenzhen Expressway[38]. - The company aims to expand its market presence in the Greater Bay Area, focusing on infrastructure and urban development projects[193]. - The company holds a 15% equity stake in the Guangzhou Zhentong Industrial Development Co., which is involved in the new land development project[192]. Financial Results and Shareholder Returns - The interim dividend declared is RMB 0.078 per share, equivalent to HKD 0.08522358, representing 100% of the profit attributable to equity shareholders for the six months ended June 30, 2024[76]. - The company plans to pay an interim dividend of RMB 0.078 per share or HKD 0.08522358, with the payment date scheduled for November 8, 2024[197]. - The company declared dividends amounting to RMB 355,935 thousand for the six months ended June 30, 2024[114]. - The company plans to maintain a consistent dividend payout ratio of 100% for the upcoming periods[182].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該 等內容而引致的任何損失承擔任何責任。 Shenzhen Investment Holdings Bay Area Development Company Limited 深 圳 投 控 灣 區 發 展 有 限 公 司 （於開曼群島註冊成立之有限公司） 股份代號：737（港幣櫃檯）及 80737（人民幣櫃檯） 截至二零二四年六月三十日止六個月之中期業績 | --- | --- | |-------|------------------------------------------------------------------------------------------| | | | | | 高速公路沿線城市經濟增長，收費公路營運表現亦保持穩定，但由於二零二四年上 | | ◼ | 半年節假日 7 座或以下客車免費通行措施共實施 17 天，較去年同期多出 4 天，回顧 | | | 期內的分佔淨路費收入按年輕微增長 1% 至約人民幣 12. ...

Summary of the Conference Call Company and Industry Involved - The conference call is focused on **iQIYI International** and its investment strategy for 2024, featuring insights from **Wangxi Development** and its management team [1] Core Points and Arguments - The call is hosted by **iQIYI International Analyst Su Lian**, indicating a structured approach to discussing investment strategies and core values of Wangxi Development [1] - **Li**, the Deputy General Manager of the Investor Relations Department at Wangxi Development, is present to provide insights and facilitate understanding of the company's current status and core value [1] Other Important but Possibly Overlooked Content - The format of the call encourages audience interaction, allowing participants to submit questions during the presentation, which may enhance engagement and clarify investor concerns [1]

欢迎大家参加由安信国际举办洛阳中承办的安信国际2024年中期投资策略会我是本场会议的主持人安信国际分析师苏瑞特本场会议我们邀请到了湾区发展的董秘投资者关系部副总经理余总来与我们进行交流协助我们进一步了解湾区发展的一个企业文化和核心价值投资者如果有任何问题可以随时在洛阳中的商会页面的问答区域内输入文字帖文稍后我将再为您演出 那么下面我们把时间交给余总有请那么尊敬的各位投资人分析师大家好很荣幸有机会跟大家交流那么本次餐会的话呢除了我这边以外呢其实还有我们的董秘董事会秘书刘继总那等一下的话呢就将于先由我来进行一个初步的一个公司情况的一个介绍那各位投资人和分析师呢也可以在我们的录影中的界面呢通过这个翻阅PPT来进行进一步的一个深度了解 那么在我进行介绍之后的话呢我们的刘继总还有我也会跟大家再进行一个进一步的一个深度的一个问答环节欢迎大家有什么问题呢也愿意跟我们进行一个提问和交流那么接下来呢我先首先介绍一下公司的一个最新的一个情况 那么首先的话呢湾区发展的话它的前身是合和公路基建那么在2003年的话呢已经在香港联交所上市了那么在2018年的时候呢是被深口控收购成为了国资委旗下的这样的一个香港上市公司那么经过一个一系列的 ...

通过这个翻阅PPT来进行进一步的一个深度了解那么在我进行介绍之后的话呢我们的刘继总还有我也会跟大家再进行一个进一步的一个深度的一个问答环节欢迎大家有什么问题呢也踊跃跟我们进行一个提问和交流 那么接下来我首先介绍一下公司的最新的一个情况首先湾区发展的话它的前身是河河公路基建在2003年的话已经在香港联交所上市了那么在2018年的时候是被声头控收购成为了国资委旗下的这样的一个香港上市公司 那么经过一个一系列的股权变更之后在2022年的1月那么深高速是成为了湾区发展的控股股东那么持有湾区发展71.83%的这样的一个控股股权那么从目前的整个业务板块来看的话 湾区发展旗下拥有三条高速公路运营的情况首先我们拥有广深高速45%的利润分配比例还拥有广州西线高速50%的利润分配比例以及沿江高速深圳段51%的控股权 以及我们的一个新唐项目那这个项目是一个广深沿线的一个土地开发的这样的一个项目那么这个项目拥有15%的这样的一个参股的这样的一个股权比例那么目前的话呢湾区发展所拥有的这个合营以及控股企业的这个情况呢大概就如刚刚所说的这样子那么首先来看的话呢我想着重先介绍一下就是我们的这个三条高速公路的一个情况 那么三条高速公路的话首先 ...

Revenue and Traffic Volume - For the first quarter of 2024, the average daily toll revenue for the Guangzhou-Shenzhen Expressway was RMB 7,540, showing no change from the previous year[2]. - The average daily mixed traffic volume for the Guangzhou-Shenzhen Expressway decreased by 4% to 584 thousand vehicles compared to the same period last year[2]. - The average daily toll revenue for the Guangzhou-Zhuhai West Line Expressway remained stable at RMB 3,374, with no change from the previous year[2]. - The average daily mixed traffic volume for the Guangzhou-Zhuhai West Line Expressway also decreased by 4% to 247 thousand vehicles[2]. - The average daily toll revenue for the Shenzhen section of the Jiangnan Expressway increased by 4% to RMB 1,607 compared to the previous year[2]. Financial Performance - The total revenue for the group for the three months ended March 31, 2024, was RMB 279,147 thousand, a decrease from RMB 350,332 thousand in the same period last year[5]. - The net profit for the group for the same period was RMB 140,570 thousand, compared to RMB 131,313 thousand in the previous year, representing an increase of 7%[6]. - The basic earnings per share for the group increased to RMB 3.65 from RMB 3.48 in the previous year[5]. Assets and Liabilities - The total assets of the group as of March 31, 2024, were RMB 12,672,753 thousand, an increase from RMB 12,413,183 thousand at the end of the previous year[9]. - The total liabilities of the group increased to RMB 4,863,785 thousand from RMB 4,710,124 thousand at the end of the previous year[10]. Cash Flow and Investments - Operating cash flow for the three months ended March 31, 2024, was RMB 73,429 thousand, a decrease from RMB 194,696 thousand in the same period last year[11]. - Net cash used in investing activities was RMB (191,732) thousand, compared to RMB 175,479 thousand in the previous year[11]. - Net cash generated from financing activities was RMB 30,699 thousand, a significant improvement from RMB (69,308) thousand in the same period last year[11]. - Cash and cash equivalents decreased by RMB 87,604 thousand, compared to an increase of RMB 300,867 thousand in the previous year[11]. - Cash and cash equivalents as of January 1, 2024, were RMB 483,617 thousand, up from RMB 474,015 thousand at the same time last year[11]. - The impact of foreign exchange rate changes on cash and cash equivalents was RMB 389 thousand, compared to a negative impact of RMB (622) thousand in the previous year[11].

Financial Performance - The company reported a revenue of RMB 2,951 million for 2023, an increase of 44% compared to RMB 2,050 million in 2022[14]. - The net profit attributable to equity shareholders for 2023 was RMB 528 million, up from RMB 279 million in 2022, representing a growth of 89%[13]. - The operating profit before interest, tax, depreciation, and amortization (EBITDA) for 2023 was RMB 2,455 million, an increase from RMB 1,748 million in 2022[14]. - The company’s share of profits from joint ventures was RMB 691 million in 2023, compared to RMB 354 million in 2022, marking a significant increase[13]. - Basic earnings per share for 2023 were RMB 0.1715, reflecting a significant increase compared to the previous year[17]. - The company reported a loss of RMB 53 million from corporate activities in 2023, an improvement from a loss of RMB 27 million in 2022[13]. - The company's revenue from investment projects amounted to approximately RMB 2.951 billion, with a profit attributable to equity shareholders of about RMB 528 million, representing a year-on-year increase of 89%[20]. Debt and Financial Ratios - The company’s debt-to-equity ratio was reported at 40% for 2023, indicating a stable financial position[10]. - Total assets as of December 31, 2023, were RMB 12.413 billion, while total liabilities reached RMB 4.834 billion, resulting in a debt-to-asset ratio of 38%[18]. - The company’s net debt-to-equity ratio was 64% as of December 31, 2023, indicating a significant increase in leverage compared to previous years[18]. - The group’s net debt to equity ratio for the group was 64% in 2023, slightly improved from 66% in 2022, indicating a reduction in leverage[96]. Dividends - The company proposed a final dividend of RMB 0.1155 per share, subject to shareholder approval at the 2024 annual general meeting[19]. - The total regular dividend for the year ended December 31, 2023, is proposed to be RMB 0.171 per share, a 90% increase compared to RMB 0.090 per share in the previous year[27]. - The regular dividend payout ratio for the year is 100% of the profit attributable to equity shareholders[27]. - The total dividend for the year will amount to RMB 17.10 per share, up from RMB 9.00 per share in the previous year, indicating an increase of 89.44%[181]. Strategic Focus and Expansion - The company plans to focus on infrastructure development in the Guangdong-Hong Kong-Macao Greater Bay Area as part of its strategic expansion[11]. - The company aims to enhance its market presence through strategic acquisitions and partnerships in the coming years[11]. - The company plans to accelerate the revitalization of land resources along the expressway and expand investment opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area[24]. - The company aims to obtain approval for the expansion project of the Guangzhou to Shenzhen section of the Jinggang'ao Expressway, which is crucial for sustainable development[24]. Toll Revenue and Traffic - In 2023, the total toll revenue for the Guangzhou-Shenzhen Expressway reached approximately RMB 28.92 billion, representing a year-on-year increase of 28%[23]. - The average daily toll revenue and mixed vehicle flow for the Guangzhou-Shenzhen Expressway increased by 28% and 20% respectively compared to the previous year[23]. - The total toll revenue for the Guangzhu West Line Expressway was approximately RMB 13.04 billion, with average daily toll revenue and mixed vehicle flow rising by 25% and 22% respectively[23]. - The total toll revenue for the Shenzhen Section of the Jiangjiang Expressway was approximately RMB 6.29 billion, with average daily toll revenue and mixed vehicle flow increasing by 31% and 34% respectively[23]. Management and Governance - The company has a strong management team with extensive experience in project management and corporate governance[32]. - The board includes members with backgrounds in finance, engineering, and logistics, enhancing the company's strategic capabilities[33]. - The company has established a governance structure to enhance operational efficiency and shareholder value[114]. - The board of directors consists of four executive directors, two non-executive directors, and three independent non-executive directors, ensuring a strong independent element[118]. Risk Management - The company has adopted a comprehensive risk management framework that includes identifying, communicating, mitigating, and reporting significant risks, including ESG risks[149]. - The group faces significant risks including macroeconomic, financial, exchange rate, road safety, and toll system security risks[157]. - The company emphasizes corporate ethics and compliance with laws and regulations to maintain its reputation[163]. Employee and Board Diversity - The company is committed to creating a gender-diverse work environment during the recruitment process[124]. - As of December 31, 2023, the gender ratio among employees is 39% female and 61% male, reflecting a balanced gender representation[124]. - The company has implemented competitive remuneration policies and employee benefits, including retirement contributions and medical insurance[111]. Investor Relations - The company actively engages in investor relations activities, participating in over 20 events and communicating with more than 100 investors and analysts throughout the year[173]. - The annual general meeting serves as a key communication channel with shareholders, allowing direct interaction with the board[172]. - The company has maintained regular updates on its website to ensure timely and accurate dissemination of important corporate information, including various announcements and financial reports[174].

Revenue Growth - Net toll revenue increased by 28% year-on-year to approximately RMB 2.582 billion, driven by the recovery in domestic social transportation volume and stable economic growth in cities along expressways[2]. - Profit attributable to equity shareholders rose by 89% to approximately RMB 528 million, primarily due to increased toll revenue, reversal of provisions for road resurfacing responsibilities, and performance growth from the Park City project[4]. - The net toll revenue for the year reached approximately RMB 4.825 billion, representing a year-on-year growth of 28%[13]. - The average daily toll revenue and mixed traffic volume for all expressways showed significant growth, indicating a recovery in domestic transportation demand[13]. - Total revenue for the toll highway projects reached RMB 2,951,830 thousand, with a net profit attributable to equity shareholders of RMB 528,483 thousand[84]. - The group's revenue for 2023 was RMB 944,777, up 19.6% from RMB 789,701 in 2022[86]. Project Contributions - The Park City project contributed approximately RMB 42 million in profit for the year, with the first phase of residential units delivered to buyers starting in Q3 2023[7]. - The average selling price for the Park City project was approximately RMB 23,000 per square meter, with total contract sales amounting to approximately RMB 970 million in the year[37]. - The Park City project has cumulative contract sales of approximately RMB 3.247 billion to date, with an average selling price of approximately RMB 25,000 per square meter[37]. Economic Environment - The GDP of Guangdong Province grew by 4.8% year-on-year, reaching approximately RMB 13.57 trillion, contributing to a favorable operating environment for the company[5]. - The company anticipates a positive macroeconomic environment in 2024, while remaining cautious of external challenges[8]. - The GDP growth rates for Guangzhou, Dongguan, and Shenzhen in 2023 were 4.6%, 2.6%, and 6.0% respectively, indicating stable economic growth that supports expressway operations[21]. - The domestic automobile sales in 2023 reached approximately 30.09 million units, representing a year-on-year growth of 12%, which positively impacts the toll road business[20]. Dividend Proposals - The company proposed a final dividend of RMB 0.1155 per share, with a total payout ratio of 100% of profit attributable to equity shareholders[4]. - The total regular dividend for the year is proposed at RMB 0.171 per share, a 90% increase from RMB 0.090 per share in the previous year[10]. - The group aims to maintain a regular dividend payout ratio of 100% of recurring income for the year[47]. Infrastructure Developments - The company plans to focus on the expansion of the Guangzhou-Shenzhen section of the Jinggang'ao Expressway, with significant progress made in 2023, including the approval of key construction segments[7]. - The completion of the Dongguan-Fan Expressway's third phase is expected to provide an alternative route for vehicles, potentially affecting traffic flow on the Guangzhou-Shenzhen Expressway[21]. - The Shenzhen-Zhongshan Corridor is anticipated to open in June 2024, which may also impact traffic patterns on the Guangzhou-Shenzhen Expressway[21]. - The second phase of the Yanjiang Expressway is under construction and is expected to positively impact operational performance upon completion in June 2024[31]. Financial Performance - EBITDA for the three toll road projects rose by 38% from approximately RMB 1.741 billion in 2022 to approximately RMB 2.394 billion in 2023[42]. - The group's profit attributable to equity shareholders for the year is approximately RMB 528 million, an increase of 89% compared to RMB 279 million last year[46]. - The company's total administrative expenses and depreciation increased by 28% to approximately RMB 1.032 billion in 2023[43]. - The company's interest expenses from the Guangzhou-Shenzhen joint venture rose by 74% to approximately RMB 66 million due to increased loan rates[44]. Cash and Assets - As of December 31, 2023, total assets amounted to RMB 17,036 million, a decrease from RMB 17,662 million in 2022[53]. - Total liabilities decreased to RMB 9,333 million in 2023 from RMB 10,276 million in 2022, resulting in a debt-to-asset ratio of 38% compared to 40% in the previous year[53]. - The cash and cash equivalents of the group headquarters increased to RMB 3.82 billion from RMB 3.17 billion year-on-year[49]. - The group’s net debt-to-equity ratio was 64% in 2023, a slight improvement from 66% in 2022[53]. Regulatory and Compliance - The board confirmed compliance with all corporate governance codes during the review year, emphasizing a commitment to enhancing shareholder value[69]. - The company is currently evaluating the impact of new and revised International Financial Reporting Standards that will take effect in 2024, with no significant impact expected on the consolidated financial statements[79]. Joint Ventures and Collaborations - The company is actively communicating with relevant government departments to explore land development opportunities along the Guangshen Expressway[40]. - The shareholding structure of the Xintang joint venture consists of 15% by Shenwan Infrastructure, 20% by Lilu Investment, 5% by Lixin Investment, and 60% by Shenzhen Runtou[106].

Financial Performance - The company's net profit attributable to equity shareholders increased by 22% to approximately RMB 337 million for the nine months ended September 30, 2023, up from RMB 275 million in the same period last year[6]. - Total revenue for the nine months ended September 30, 2023, was RMB 392,045,000, compared to RMB 617,277,000 in the same period of 2022[7]. - The company reported a total comprehensive income of RMB 334,843,000 for the nine months ended September 30, 2023, compared to RMB 125,495,000 in the same period of 2022[9]. - Financial costs increased significantly to RMB 124,653,000 in the first nine months of 2023, compared to RMB 27,788,000 in the same period of 2022[7]. Cash Flow and Investments - Cash generated from operating activities for the nine months ended September 30, 2023, was RMB 399,645,000, significantly up from RMB 57,855,000 in the same period of 2022[13]. - Net cash generated from investing activities was RMB 417,773,000 for the nine months ended September 30, 2023, compared to RMB 201,201,000 in the previous year[13]. - The company raised new bank loans totaling RMB 838,574,000 during the nine months ended September 30, 2023, compared to RMB 580,554,000 in the same period of 2022[13]. - The company reported a net cash increase of RMB 187,781,000 for the nine months ended September 30, 2023, compared to a decrease of RMB 65,481,000 in the same period of 2022[13]. - The company’s operating cash flow after tax payments was RMB 397,046,000 for the nine months ended September 30, 2023, compared to RMB 42,370,000 in the same period of 2022[13]. Assets and Liabilities - The total assets of the company as of September 30, 2023, were RMB 12,208,988,000, slightly down from RMB 12,220,047,000 at the end of 2022[11]. - As of September 30, 2023, the total liabilities amounted to RMB 4,765,646,000, a slight decrease from RMB 4,834,260,000 as of December 31, 2022[12]. - The total equity increased to RMB 7,443,342,000 as of September 30, 2023, compared to RMB 7,385,787,000 as of December 31, 2022[12]. - The company’s total assets and liabilities as of September 30, 2023, were RMB 12,208,988,000, slightly down from RMB 12,220,047,000 as of December 31, 2022[12]. Toll Revenue and Traffic Flow - Average daily toll revenue for the Guangzhou-Shenzhen Expressway increased by 24% to RMB 7,901,000 in the first nine months of 2023 compared to RMB 6,395,000 in the same period of 2022[3]. - Average daily mixed vehicle flow for the Guangzhou-Zhuhai West Line Expressway rose by 19% to 3,590,000 vehicles in the first nine months of 2023 from 3,012,000 vehicles in 2022[3]. - The average daily toll revenue for the Shenzhen section of the Jiangdong Expressway increased by 23% to RMB 1,811,000 in Q3 2023 compared to RMB 1,474,000 in Q3 2022[2]. - The average daily mixed vehicle flow for the Shenzhen section of the Jiangdong Expressway increased by 22% to 198,000 vehicles in Q3 2023 compared to 162,000 vehicles in Q3 2022[2]. Real Estate Performance - The average selling price for the Park City project was approximately RMB 23,000 per square meter, with total contract sales amounting to approximately RMB 825 million in the first three quarters of 2023[5]. Acquisition - The company completed the acquisition of a 51% stake in the Jiangjiang Company for RMB 2,998,000,000 on November 30, 2022, enhancing its operational capabilities in the Jiangjiang Expressway project[14]. Cash and Cash Equivalents - The cash and cash equivalents as of September 30, 2023, were RMB 665,426,000, down from RMB 1,795,411,000 at the end of the previous year[13].

Toll Revenue and Traffic Volume - The net toll revenue from Guangshen Expressway, Guangzhu West Line Expressway, and Yanjiang Expressway (Shenzhen section) totaled approximately RMB 2.303 billion, representing a year-on-year growth of 26%[5]. - Average daily toll revenue and mixed vehicle traffic volume for Guangshen Expressway increased by 27% and 24% year-on-year, reaching approximately RMB 7.69 million and 627 vehicles respectively[6]. - Average daily toll revenue and mixed vehicle traffic volume for Guangzhu West Line Expressway increased by 20% and 22% year-on-year, reaching approximately RMB 3.41 million and 262 vehicles respectively[6]. - Average daily toll revenue and mixed vehicle traffic volume for Yanjiang Expressway (Shenzhen section) increased by 29% and 39% year-on-year, reaching approximately RMB 1.64 million and 182 vehicles respectively[6]. - In the first half of 2023, total toll revenue for the Guangzhou-Shenzhen Expressway was approximately RMB 1.391 billion, with daily toll revenue and mixed traffic volume increasing by 27% and 24% year-on-year, reaching about RMB 7.69 million and 627,000 vehicles respectively[11]. - The contribution of Class 1 vehicles to toll revenue and mixed traffic volume accounted for 83.4% and 92.2% of the total for the Guangzhou-Shenzhen Expressway[11]. - The average daily mixed vehicle traffic volume across all expressways showed significant recovery, indicating a positive trend in transportation demand[5]. Economic and Market Context - The GDP of Guangdong Province grew by 5.0% year-on-year, reaching approximately RMB 6.3 trillion in the first half of 2023[7]. - The total population of the Greater Bay Area exceeded 86 million, with a GDP exceeding RMB 13.0 trillion, accounting for about 11% of the national GDP[8]. - The company anticipates positive impacts on its highway business performance due to the recovery of the domestic economy and supportive government policies[7]. - In the first half of 2023, national automobile sales reached approximately 13.24 million units, reflecting a year-on-year growth of 9.8%, which is beneficial for the company's toll road business[10]. Company Performance and Financials - The total revenue for the group for the six months ended June 30, 2023, was RMB 1.26 billion, representing a year-on-year increase of 27%[30]. - The contribution from toll expressway projects amounted to RMB 1.23 billion, with a year-on-year increase of 27%[30]. - The group reported a net profit attributable to equity shareholders of RMB 172 million, reflecting a year-on-year decrease of 16%[30]. - The total comprehensive income for the period was RMB 147,245 thousand, compared to RMB 143,708 thousand in 2022, reflecting a slight increase of about 2.5%[70]. - The company reported a loss of approximately RMB 78 million, compared to a loss of RMB 10 million in the previous year[34]. - The company’s total tax expenses increased by 4% year-on-year to approximately RMB 221 million, influenced by rising toll revenues[32]. Investments and Projects - The company aims to leverage its strengths in infrastructure investment to capitalize on opportunities in highway and urban renewal projects[8]. - The expansion project of the Guangzhou-Shenzhen Expressway aims to increase its length by 118.2 kilometers, with an estimated cost exceeding RMB 40 billion[15]. - The company is actively pursuing land development opportunities along the Guangzhou-Shenzhen Expressway, with a compensation agreement for land recovery valued at approximately RMB 317 million[16]. - The feasibility study for the expansion of the Guangzhou to Dongguan section has been approved, and the project is moving forward to obtain necessary government approvals[15]. - The company is in discussions with Guangdong Highway Construction regarding the establishment of a joint venture for land development projects[16]. Cash Flow and Debt Management - As of June 30, 2023, the group's cash and cash equivalents amounted to RMB 813 million, an increase from RMB 317 million in the previous year[37]. - The group's net debt at headquarters increased to RMB 3,113 million from RMB 2,901 million in the previous year[37]. - The total maximum investment for the new joint venture is capped at RMB 6.8 billion, with respective contributions from partners based on their ownership percentages[36]. - The company’s interest expenses for the Shenzhen section decreased by 12% to approximately RMB 37 million due to successful negotiations to lower loan rates[32]. - The company reported a foreign exchange loss of approximately RMB 28 million, an improvement from a loss of RMB 42 million in the previous year[34]. Employee and Corporate Governance - The company had 64 employees as of June 30, 2023, excluding joint ventures, and offers competitive compensation and training programs[59]. - Major shareholders include Shenzhen Investment Holdings International Capital Holdings Limited, holding 2,213,449,666 shares, representing approximately 71.83% of the issued share capital[57]. - The board of directors confirmed compliance with all corporate governance codes during the review period[60]. - The company emphasizes family-friendly employment policies and invests in human resource development through training programs[59]. Future Outlook and Strategic Initiatives - The group maintains a cautious optimism for future performance, supported by stable dividends from joint ventures and positive impacts from the recovery of domestic transportation volumes[35]. - The company plans to continue focusing on market expansion and new technology development to enhance future performance[148]. - The management has indicated a cautious outlook for the remainder of 2023, with a focus on stabilizing financial performance[156]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its portfolio[156].