中原高速(600020) - 2024 Q2 - 季度财报

Definitions This section provides definitions of key terms used throughout the report Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and key financial performance metrics Company Basic Information This chapter provides the company's basic business registration information, including Chinese and English names, legal representative, contact details, and registered and office addresses - The company's full name is Henan Zhongyuan Expressway Co., Ltd., stock code 600020, listed on the Shanghai Stock Exchange[8][12] Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue increased by 11.67% year-on-year, while net profit attributable to shareholders slightly decreased by 0.92%; net cash flow from operating activities decreased by 30.98% year-on-year, and total assets and net assets showed a slight increase compared to the end of the previous year Key Accounting Data (January-June 2024) | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | CNY 2,743,770,873.78 | CNY 2,457,122,290.08 | 11.67% | | Net Profit Attributable to Shareholders | CNY 615,849,267.62 | CNY 621,596,480.94 | -0.92% | | Net Profit Attributable to Shareholders (Excl. Non-recurring) | CNY 599,801,093.04 | CNY 598,681,395.82 | 0.19% | | Net Cash Flow from Operating Activities | CNY 878,330,234.80 | CNY 1,272,610,237.10 | -30.98% | | | End of Current Period | End of Prior Year | YoY Change (%) | | Net Assets Attributable to Shareholders | CNY 14,955,319,502.46 | CNY 14,763,661,507.10 | 1.30% | | Total Assets | CNY 50,486,674,495.23 | CNY 50,060,670,731.46 | 0.85% | Key Financial Indicators (January-June 2024) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.2460 | 0.2539 | -3.11% | | Weighted Average Return on Net Assets (%) | 4.93% | 5.36% | Decrease of 0.43 percentage points | | Weighted Average Return on Net Assets (Excl. Non-recurring) (%) | 4.79% | 5.15% | Decrease of 0.36 percentage points | Non-Recurring Gains and Losses Items During the reporting period, the company's total non-recurring gains and losses amounted to CNY 16.05 million, primarily from government subsidies related to assets Non-Recurring Gains and Losses Items and Amounts (CNY) | Non-Recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Government grants recognized in current profit/loss | 26,290,695.38 | | Capital occupation fees collected from non-financial enterprises recognized in current profit/loss | -2,765,768.17 | | Other non-operating income and expenses | -1,182,183.97 | | Other gains and losses items defined as non-recurring | 285,710.19 | | Less: Income tax impact | 6,579,771.27 | | Less: Impact on minority interests (after tax) | 507.58 | | Total | 16,048,174.58 | Management Discussion and Analysis This section provides a comprehensive discussion and analysis of the company's operational performance, financial condition, and future outlook Industry and Main Business Overview The company's main business involves the investment, construction, and operation management of expressways, with revenue primarily derived from transportation, real estate, and construction services; as of the end of the reporting period, the company managed approximately 808 kilometers of expressways and actively pursued new energy and other innovative businesses - The company operates in the road transport industry (G54), primarily engaged in expressway investment, construction, and operation management, supplemented by diversified businesses including real estate, financial investment, and road-side economic development[18][19] - As of the end of the reporting period, the company manages approximately 808 kilometers of expressways, including core assets like Airport Expressway and Zhengzhou-Zhumadian section of Beijing-Hong Kong-Macau Expressway[19] - The company actively promotes innovative businesses, including integrating its real estate segment to establish Henan Jiaotou Yikang Investment Development Co., Ltd., and forming strategic partnerships with Huawei and Zhongzhou Times to jointly advance smart expressways and new energy businesses[20][21] Analysis of Core Competencies The company's core competencies are primarily reflected in its unique geographical advantages, high-quality core road assets, efficient management team, professional development philosophy, and excellent financing platform, collectively forming the foundation for its stable development - The expressways operated by the company are all located in Henan Province, a national transportation hub, demonstrating significant geographical advantages[22] - The company possesses high-quality core assets, including key sections of national north-south arteries like the Airport Expressway and the Zhengzhou-Zhumadian section of the Beijing-Hong Kong-Macau Expressway[22] - The company maintains stable cash flow, a robust capital structure, and a strong credit record, providing a significant financing platform advantage that strongly supports future development[23] Discussion and Analysis of Operating Performance In the first half of 2024, the company's total assets reached CNY 50.49 billion, achieving operating revenue of CNY 2.74 billion, with toll revenue of CNY 2.15 billion, and net profit attributable to shareholders of CNY 616 million; the company achieved significant results by focusing on 'efficiency enhancement, quality improvement, and capital optimization' through measures such as traffic attraction, evasion control, debt structure optimization, and road-side economy expansion Key Operating Data for H1 2024 | Indicator | Amount (CNY Billion) | | :--- | :--- | | Operating Revenue | 2.74 | | Of which: Toll Revenue | 2.15 | | Total Profit | 0.81 | | Net Profit Attributable to Shareholders | 0.62 | | Net Profit Attributable to Shareholders (Excl. Non-recurring) | 0.60 | - In the first half of the year, the company proactively refinanced CNY 4.91 billion of existing long-term debt, projected to save CNY 57 million in interest expenses for the year, effectively reducing financial costs[28] - Through audit and evasion control, the company addressed 79,000 instances of toll evasion in the first half, recovering CNY 12.83 million in toll fees[28] - The company actively expanded its road-side economy, with joint ventures achieving CNY 91 million in investment income, and participated in establishing a new energy company to deploy expressway charging piles and 'super-charging' networks[28] - In terms of capital operations, the company completed the integration of its real estate segment and implemented a proactive dividend policy, distributing CNY 335 million in cash dividends, achieving a 4% dividend yield[30] Main Business Analysis During the reporting period, the company's operating revenue increased by 11.67%, but operating costs significantly rose by 37.03%; financial expenses decreased by 18.70% year-on-year, mainly due to debt structure optimization; net cash flow from operating activities decreased by 30.98%, while net cash outflow from investing activities substantially increased by 156.15% Analysis of Major Financial Statement Item Changes | Item | Current Period Amount (CNY) | Prior Year Period Amount (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,743,770,873.78 | 2,457,122,290.08 | 11.67 | | Operating Cost | 1,459,109,187.76 | 1,064,823,869.66 | 37.03 | | Financial Expenses | 459,389,559.18 | 565,066,385.92 | -18.70 | | Net Cash Flow from Operating Activities | 878,330,234.80 | 1,272,610,237.10 | -30.98 | | Net Cash Flow from Investing Activities | -1,010,697,763.60 | -394,566,137.26 | -156.15 | | Net Cash Flow from Financing Activities | 64,778,988.87 | 599,041,689.14 | -89.19 | Analysis of Assets and Liabilities As of the end of the reporting period, the company's asset and liability structure remained stable; accounts receivable increased by 45.37% due to higher toll revenue receivables, and short-term borrowings significantly increased by 95.69%; concurrently, the company effectively managed liabilities, with notable decreases in accounts payable, employee benefits payable, other payables, and non-current liabilities due within one year; most of the company's expressway toll operation rights have been pledged for loans Changes in Major Asset and Liability Items | Item Name | Period-End Amount (CNY) | Change from Prior Year-End (%) | Primary Reason | | :--- | :--- | :--- | :--- | | Accounts Receivable | 1,022,957,521.70 | 45.37% | Increase in toll revenue receivables | | Construction in Progress | 110,228,968.75 | 44.23% | Increase in construction project investments | | Short-term Borrowings | 2,741,761,944.46 | 95.69% | Increase in short-term borrowings | | Accounts Payable | 387,022,229.60 | -59.11% | Subsidiary Zheng-Luo project paid prior period payables | | Employee Benefits Payable | 139,382,377.57 | -41.18% | Payment of prior year's unpaid performance bonuses | | Non-current Liabilities Due Within One Year | 1,868,408,783.93 | -45.99% | Decrease in long-term borrowings due within one year | | Other Current Liabilities | 0.00 | -100.00% | Prior period-end ultra-short-term financing bonds matured and repaid in current period | - The company pledged the toll operation rights of multiple expressways to secure syndicated loans and other types of loans totaling over CNY 10 billion, providing financial support for its project construction and operations[32][33][34] Analysis of Investment Status As of the end of the reporting period, the company's long-term equity investments amounted to CNY 5.12 billion, a slight increase of 0.31% from the beginning of the period; the company continued to advance the Zheng-Luo project investment and construction, with cumulative investment reaching CNY 4.57 billion; financial assets measured at fair value had a period-end balance of CNY 96.29 million, a slight increase from the beginning of the period - The company's long-term equity investments had a period-end balance of CNY 5.12 billion, an increase of CNY 15.81 million from the beginning of the period, representing a 0.31% increase[40] - The significant non-equity investment project, Zheng-Luo project, has accumulated construction investment of CNY 4.57 billion, accounting for 22.83% of the total project investment[43] Analysis of Major Holding and Associate Companies During the reporting period, among the company's major holding subsidiaries, real estate businesses like Yingdi Real Estate and Gaosu Real Estate Company recorded losses; however, associate financial enterprises such as Zhongyuan Trust, Zhongyuan Agricultural Insurance, and Asset Management Company performed steadily, all achieving profitability Operating Performance of Major Holding and Associate Companies (Unit: CNY 10,000) | Company Name | Main Business | Total Assets | Net Assets | Net Profit | | :--- | :--- | :--- | :--- | :--- | | Holding Subsidiaries | | | | | | Bingyuan Investment | Project investment, investment management | 112,070.63 | 95,566.69 | -561.27 | | Yingdi Real Estate | Real estate development, sales | 213,630.30 | 151,253.64 | -2,056.34 | | Gaosu Real Estate Company | Real estate development and operation | 209,719.36 | 137,792.91 | -1,066.75 | | Zheng-Luo Company | Road management and maintenance | 586,627.25 | 116,045.29 | -0.51 | | Associate Companies | | | | | | Zhongyuan Trust (27.27% stake) | Trust business | 1,086,988.56 | 1,028,535.91 | 8,268.31 | | Zhongyuan Agricultural Insurance (13.63% stake) | Agricultural insurance | 1,157,448.17 | 533,929.21 | 26,955.50 | | Asset Management Company (10.00% stake) | Non-performing asset management | 3,531,270.09 | 1,449,173.74 | 37,103.47 | Potential Risks The company faces key risks including macroeconomic environment changes, industry policy adjustments, financing pressure, and operational management challenges; the company has formulated corresponding countermeasures, such as strengthening capital operations, exploring new 'toll-plus' service models, diversifying financing channels, and enhancing audit and evasion control, to improve overall risk resilience - Macroeconomic fluctuations may impact traffic volume and thus the company's operating performance; the company's strategy involves continuously monitoring the macroeconomic environment, optimizing capital planning, and managing capital operations[48] - Uncertainties in toll road policy adjustments could impact main business revenue; the company will actively adapt to new models, exploring 'toll-plus' services to enhance transit service quality[48] - The company anticipates strong external financing needs in the coming years, facing risks of rising market funding costs; it will coordinate capital arrangements, diversify financing products, and optimize debt structure[48] - Under the new 'single network' operation model, audit and evasion control face higher demands; the company will strengthen special case governance and technological evasion control to ensure all toll fees are collected[49] Corporate Governance This section details the company's corporate governance structure, including changes in its board of directors, supervisory board, and senior management Changes in Directors, Supervisors, and Senior Management During the reporting period, there were significant changes in the company's directors, supervisors, and senior management; Ms. Liu Jing was elected as the new Chairperson, and Mr. Feng Ke was elected as the new Chairman of the Supervisory Board; concurrently, several directors, supervisors, and senior executives resigned due to work adjustments or retirement, and new senior management personnel were appointed - Ms. Liu Jing was elected as the company's Chairperson in March 2024, succeeding Mr. Ma Chenzhong who resigned due to work adjustments[52][53] - Mr. Feng Ke was elected as the Chairman of the Supervisory Board in June 2024, succeeding Mr. Wang Yuanzheng who resigned due to work adjustments[52][53][55] - The company appointed Mr. Peng Wuhua and Ms. Yang Yazi as Deputy General Managers, and Ms. Wang Lixue as Chief Financial Officer (Financial Controller)[52][54] Environmental and Social Responsibility This section outlines the company's commitment and actions regarding environmental protection and social responsibility initiatives Environmental Information The company is not classified as a key pollutant-discharging entity and had no environmental administrative penalties during the reporting period; the company is committed to building green expressways, implementing various environmental protection measures in maintenance, service area operations, and office work, such as recycling asphalt waste, promoting waste sorting, and advocating paperless office practices; additionally, the company actively participates in new energy construction to promote green and low-carbon transformation - The company achieves 100% recycling of asphalt concrete waste in maintenance construction, reducing environmental pollution[58] - The company participated in establishing Jiaotou New Energy Company, adopting an integrated 'wind-solar-storage-charging-swapping' photovoltaic solution to build a green transportation energy system[60] - On July 11, 2024, the company signed a strategic cooperation agreement with Zhongzhou Times New Energy Technology Co., Ltd., to jointly promote the construction of green, low-carbon, and smart expressways[60] Social Responsibility and Rural Revitalization The company actively fulfills its social responsibilities by continuously consolidating its assistance efforts in Wangzhuang Village, Dayu Town; it established a support working group to implement targeted assistance, currently supporting 8 individuals and sponsoring 6 students, thereby strengthening poverty alleviation achievements through talent revitalization - The company established a support working group to implement 'one household, one policy' targeted assistance for beneficiaries, currently supporting 8 individuals and sponsoring 6 students[60][61] Significant Matters This section covers important events and transactions affecting the company, including fulfillment of commitments, related-party transactions, and significant contracts Fulfillment of Commitments During the reporting period, the company's controlling shareholder, Henan Communications Investment Group, and its second-largest shareholder, China Merchants Expressway, along with other related parties, strictly fulfilled their long-term commitments made during share reform, acquisitions, and initial public offerings, regarding avoiding horizontal competition and maintaining the company's independence - The controlling shareholder, Henan Communications Investment Group, committed to designating the company as its ultimate integration platform for high-grade highway and large bridge project investment and operation businesses, and continues to fulfill its commitment to avoid horizontal competition[62][63] Significant Related-Party Transactions During the reporting period, the company's daily related-party transactions primarily involved maintenance services, electromechanical construction, and leasing businesses with its parent company and its subsidiaries; the total estimated related-party transactions for 2024 are CNY 446.77 million, with CNY 90.75 million actually incurred during the reporting period - The company anticipates CNY 446.77 million in daily related-party transactions with affiliates for 2024, with CNY 90.75 million actually incurred in the first half[67] Significant Contracts and Their Performance The company's significant contracts primarily involve asset leasing and guarantees; the company leases land use rights from the Henan Provincial Department of Transportation and leases service area assets to its affiliate, Henan Jiaotou Service Area Management Co., Ltd.; additionally, the company's wholly-owned subsidiaries provide phased mortgage loan guarantees for commercial property purchasers, with a period-end guarantee balance of CNY 218 million Significant Guarantees (Unit: CNY 10,000) | Guarantor | Guaranteed Party | Guarantee Type | Period-End Guarantee Balance (CNY 10,000) | | :--- | :--- | :--- | :--- | | Yingdi Real Estate (Wholly-owned subsidiary) | Commercial property purchasers | Joint and several liability guarantee | 17,264.86 | | Gaosu Real Estate (Wholly-owned subsidiary) | Commercial property purchasers | Joint and several liability guarantee | 4,485.22 | | Total | | | 21,750.08 | - The company's total guarantees represent 1.45% of its net assets[73] Share Changes and Shareholder Information This section provides details on changes in the company's share capital and information about its shareholders Shareholder Information As of the end of the reporting period, the company had a total of 58,867 common shareholders; the top two shareholders, Henan Communications Investment Group and China Merchants Expressway Network Technology Holdings Co., Ltd., held 45.09% and 15.43% respectively, indicating a stable equity structure; Great Wall Life Insurance is the third largest shareholder, holding over 9% combined Top Ten Shareholders' Shareholding | Shareholder Name | Period-End Shareholding (Shares) | Percentage (%) | | :--- | :--- | :--- | | Henan Communications Investment Group Co., Ltd. | 1,013,313,285 | 45.09 | | China Merchants Expressway Network Technology Holdings Co., Ltd. | 346,704,888 | 15.43 | | Great Wall Life Insurance Co., Ltd. - Own Funds | 133,284,407 | 5.93 | | Great Wall Life Insurance Co., Ltd. - Dividend - Individual Dividend | 71,939,790 | 3.20 | | Hong Kong Securities Clearing Company Limited | 22,470,555 | 1.00 | Bond-Related Information This section provides an overview of the company's outstanding bonds and their key terms Non-Financial Enterprise Debt Financing Instruments During the reporting period, one tranche of the company's medium-term notes (21 Zhongyuan Expressway MTN001) matured and was repaid; as of the end of the period, the company had 4 outstanding medium-term notes totaling CNY 3.7 billion, all perpetual notes with deferral options; all bonds are unsecured, and the company has developed corresponding repayment plans Outstanding Medium-Term Notes (Unit: CNY Billion) | Bond Abbreviation | Code | First Call Date | Bond Balance | Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | | 22 Zhongyuan Expressway MTN001 | 102280766 | 2025-4-14 | 10 | 3.38 | | 22 Zhongyuan Expressway MTN002 | 102281639 | 2025-7-26 | 12 | 3.09 | | 23 Zhongyuan Expressway MTN001 | 102380416 | 2026-3-8 | 10 | 3.79 | | 23 Zhongyuan Expressway MTN002 | 102380888 | 2026-4-14 | 5 | 3.60 | - The company's first tranche of 2021 medium-term notes (Rural Revitalization) matured and was redeemed on April 21, 2024[80][286] Financial Report This section presents the company's financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity Financial Statements This section includes the company's unaudited consolidated and parent company financial statements, comprising the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, comprehensively reflecting the company's financial position at the end of the reporting period and its operating results and cash flows during the reporting period Notes to Consolidated Financial Statements This section provides detailed notes and explanations for major items in the consolidated financial statements, including the composition, changes, and application of relevant accounting policies for items such as cash and bank balances, accounts receivable, inventories, fixed assets, intangible assets, short-term and long-term borrowings, and bonds payable - Accounts receivable had a period-end book balance of CNY 1.11 billion, a significant increase from CNY 750 million at the beginning of the period, primarily due to toll fees receivable from Henan Expressway Network Monitoring Toll Communication Service Co., Ltd[209][212] - Inventories had a period-end book value of CNY 4.88 billion, mainly comprising development costs (CNY 3.27 billion) and developed products (CNY 1.61 billion)[222] - Long-term borrowings had a period-end balance of CNY 27.72 billion, an increase from CNY 25.46 billion at the beginning of the period, primarily to meet project construction and operational funding needs[275] - Toll fee business is the company's primary source of revenue and cost, contributing CNY 2.15 billion in revenue during the reporting period, accounting for 79.7% of main business revenue[299]