粤运交通(03399) - 2021 - 中期财报

Company Overview Company Profile Guangdong Yueyun Transportation Co., Ltd. (03399.HK) is a comprehensive transportation service provider controlled by Guangdong Provincial Communications Group, focusing on travel services and aiming for an international-level integrated platform - The company's controlling shareholder is Guangdong Provincial Communications Group Co., Ltd., holding approximately 74.12% of the shares[8] - The company's core business is travel services, divided into highway service area operations, road passenger transport and related services, and Taiping Interchange operations[9] - The company's '14th Five-Year Plan' strategic goal is to become an international-level comprehensive transportation service group[9] Financial Highlights Financial Highlights In H1 2021, revenue grew 19% to RMB 3.09 billion, and gross profit surged 888% to RMB 212 million, though the company still reported a net loss of RMB 124 million, with attributable net loss narrowing to RMB 60.76 million H1 2021 Performance Highlights (Six Months Ended June 30) | Indicator | H1 2021 (RMB Thousand) | H1 2020 (RMB Thousand) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 3,092,467 | 2,601,847 | 19% | | Highway Service Area Operations | 1,820,236 | 1,410,175 | 29% | | Road Passenger Transport and Related Services | 1,184,237 | 1,026,373 | 15% | | Taiping Interchange Operations | 57,310 | 19,572 | 193% | | Total Gross Profit | 212,368 | 21,489 | 888% | | Operating Loss | (69,761) | (193,855) | N/A | | Net Loss | (123,988) | (182,471) | N/A | | Net Loss Attributable to Parent Company Shareholders | (60,764) | (111,440) | N/A | | Basic Loss Per Share (RMB) | (0.08) | (0.14) | N/A | Key Financial Ratios and Balance Sheet Highlights | Indicator | June 30, 2021 | December 31, 2020 | Change | | :--- | :--- | :--- | :--- | | Total Assets (RMB Thousand) | 10,658,846 | 11,052,730 | (4%) | | Equity Attributable to Parent Company Shareholders (RMB Thousand) | 2,015,543 | 2,071,291 | (3%) | | Gross Profit Margin | 6.87% | 0.83% (as of June 30, 2020) | 727% | | Asset-Liability Ratio | 71.96% | 71.50% | 1% | | Current Ratio (times) | 0.82 | 0.83 | (1%) | Chairman's Report Macro Environment and Strategy The Chairman noted the stable recovery of the national economy and the '14th Five-Year Plan' opening year's opportunities for integrated transportation, emphasizing the company's focus on adjusting industrial layout and accelerating market-oriented transformation for high-quality development - China's economy continues to recover steadily, with accelerated recovery in the transportation sector providing a favorable external environment for the company's development[22] - The '14th Five-Year Plan' will promote integrated transportation development, benefiting the company from policies supporting comprehensive transportation system construction[23] - The company will align with the '14th Five-Year' strategic development plan to adjust its industrial layout, optimize resource allocation, and accelerate market-oriented business transformation[24] H2 2021 Business Outlook In H2 2021, the company plans to focus on highway service area operations and road passenger transport, emphasizing self-operated gas station construction, retail brand enhancement, and digital transformation for passenger transport, alongside expanding logistics and cross-border services Highway Service Area Operations In H2, the company will pursue self-operated gas station development targeting 60 stations, expand retail with 30 new stores and local specialties, deepen integrated investment promotion for differentiated service areas, and enhance digital media development for advertising - Energy Business: Aims to complete construction of 10 gas stations, achieving 60 self-operated stations, and actively promoting upgrades to integrated oil, gas, electricity, and photovoltaic stations[28][31] - Retail Business: Strives to add 30 new stores, build the 'Yipin Hui' brand, and gradually achieve parallel online and offline development[32] - Investment Promotion: Adopts a 'one category, one policy' differentiated development strategy, focusing on creating logistics, tourism, and commercial service areas[34] - Advertising Business: Strengthens internal resource integration, enhances digital media resource development capabilities, and collaborates with external media agencies[35] Road Passenger Transport and Related Services The company will adjust traditional passenger routes to develop diversified services like public transport and ride-hailing, leveraging the 'Yuexing' platform for digital transformation and platform-based operations, while enhancing safety, promoting integrated station development, and exploring logistics and cross-border transport - Business Structure Adjustment: Accelerates the adjustment of traditional routes to develop diversified services such as public transport, rural passenger transport, customized routes, ride-hailing, and commuter charters[37] - Digital Transformation: Leverages the 'Yuexing' platform to achieve the goal of 'one ticket, one network, one center, one platform,' promoting online-offline integration[37] - Asset Revitalization: Strengthens comprehensive development of passenger transport stations, transforming them into shopping centers, tourist distribution centers, and other diverse formats to achieve 'sustaining stations through commerce'[38] - New Business Expansion: Actively explores niche logistics markets, including station-front warehouses and cold chain logistics, and continues to develop cross-border transport services[40] Management Discussion and Analysis Business Review In H1 2021, the company balanced epidemic control with business development, seeing energy business revenue grow 40% in service areas, a 13-percentage-point increase in non-station passenger aggregation for road transport, and over 200% growth in Taiping Interchange operations due to prior-year toll exemptions Highway Service Area Operations In H1, energy business revenue reached RMB 1.38 billion, up 40%, with 54 self-operated gas stations; retail revenue was RMB 226 million, stable, with 622 'Leyu' convenience stores; investment promotion revenue was RMB 162 million, covering 358 service areas; and advertising revenue was RMB 49.8 million, slightly down - Energy business revenue increased by 40% to RMB 1.382 billion, with 6 new self-operated gas stations added in H1, totaling 54 stations[44] - Retail business revenue was RMB 226 million, largely flat year-on-year, with the total number of 'Leyu' convenience stores reaching 622[47] - Investment promotion business revenue was RMB 162 million, with the number of service areas (including parking areas) under operation increasing to 358[51] - Advertising business revenue was RMB 49.8 million, with 587 advertising resources[54] Road Passenger Transport and Related Services To adapt to industry changes and pandemic impacts, the company actively pursued market-oriented transformation, achieving RMB 120 million in non-station passenger aggregation revenue, a 13-percentage-point increase, while 'Yuexing' platform revenue grew 178% to RMB 4.7272 million, though cross-border passenger transport remained suspended - Non-station passenger aggregation businesses (e.g., ride-hailing, customized transport, commuter services) generated RMB 120 million in revenue, with its proportion increasing by 13 percentage points year-on-year[58] - 'Yuexing' platform's intercity and customized carpooling business revenue was RMB 4.7272 million, a 178% increase year-on-year, serving 91,900 passengers, up 132%[59] - Cross-border passenger transport business has been suspended since February 2020 due to border closures caused by the pandemic[61] Taiping Interchange Operations In H1 2021, Taiping Interchange recorded approximately 15.37 million toll vehicle trips and RMB 57.31 million in toll revenue, representing year-on-year increases of 212.5% and 259.7% respectively, primarily due to toll exemptions in the prior year Taiping Interchange Operating Data (H1 2021) | Indicator | Value | Year-on-Year Growth | | :--- | :--- | :--- | | Cumulative Toll Vehicle Trips | Approx. 15.37 million vehicle trips | Approx. 212.49% | | Cumulative Toll Revenue | Approx. RMB 57.31 million | Approx. 259.7% | Financial Review This section details the company's H1 2021 financial performance, highlighting revenue and gross profit growth driven by energy business expansion, road passenger transport transformation, and Taiping Interchange recovery, despite a net loss due to reduced new energy vehicle subsidies, with stable capital structure and improved operating cash flow Performance Overview For the six months ended June 30, 2021, the Group's revenue grew 19% to RMB 3.09 billion, gross profit surged 888% to RMB 212 million, and attributable net loss narrowed significantly to RMB 60.76 million, driven by energy business growth, road passenger transport transformation, and increased Taiping Interchange toll days, offset by reduced new energy vehicle subsidies H1 2021 Key Performance Data | Indicator | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Operating Revenue | 3,092,467 Thousand RMB | 2,601,847 Thousand RMB | | Gross Profit | 212,368 Thousand RMB | 21,489 Thousand RMB | | Net Loss Attributable to Parent | 60,764 Thousand RMB | 111,440 Thousand RMB | | Basic Loss Per Share | 0.08 RMB | 0.14 RMB | Revenue Analysis Total revenue increased 19% to RMB 3.09 billion, with highway service area operations revenue up 29% to RMB 1.82 billion, driven by a 40% increase in energy business revenue, road passenger transport and related services up 15% to RMB 1.18 billion, Taiping Interchange operations up 193% to RMB 57.31 million due to prior-year toll exemptions, and other business revenue down 79% Revenue by Business Segment (RMB Thousand) | Business Segment | H1 2021 | H1 2020 | Change | | :--- | :--- | :--- | :--- | | Highway Service Area Operations | 1,820,236 | 1,410,175 | +29% | | - Energy Business | 1,382,083 | 983,959 | +40% | | Road Passenger Transport and Related Services | 1,184,237 | 1,026,373 | +15% | | Taiping Interchange Operations | 57,310 | 19,572 | +193% | | Other Businesses | 30,684 | 145,727 | -79% | | Total | 3,092,467 | 2,601,847 | +19% | Gross Profit Analysis The Group's gross profit totaled RMB 212 million in H1, surging 888% with gross margin improving from 0.83% to 6.87%; highway service area operations gross profit grew 5% to RMB 297 million, road passenger transport gross loss narrowed to RMB 135 million, and Taiping Interchange operations gross profit soared 1090% to RMB 48.44 million Gross Profit by Business Segment (RMB Thousand) | Business Segment | H1 2021 | H1 2020 | Change | | :--- | :--- | :--- | :--- | | Highway Service Area Operations | 296,832 | 282,401 | +5% | | Road Passenger Transport and Related Services | (134,855) | (266,298) | Loss Narrowed | | Taiping Interchange Operations | 48,437 | 4,074 | +1090% | | Other Businesses | 1,954 | 1,312 | +49% | | Total | 212,368 | 21,489 | +888% | - Road passenger transport business gross loss narrowed but was still impacted by the pandemic and reduced new energy vehicle operating subsidies, which are recognized under 'other income' rather than operating costs[81] Expenses and Other Income/Loss Analysis In H1, selling and administrative R&D expenses decreased by 9% and 2% respectively, while finance costs rose 6% due to increased borrowings; other income decreased 33% to RMB 165 million, mainly due to reduced new energy vehicle operating subsidies, but investment income significantly increased to RMB 6.52 million from associates and joint ventures - Other income decreased by 33% year-on-year to RMB 165 million, primarily due to a reduction in new energy vehicle operating subsidies recognized this period as new subsidy standards are yet to be clarified[89] - Investment income significantly increased year-on-year to RMB 6.52 million, mainly due to increased net profits from associates and joint ventures this period[90] Working Capital and Capital Structure The company maintains prudent financial management, with net debt of RMB 1.693 billion, a capital gearing ratio of 36.16%, and a stable asset-liability ratio of 71.96% as of June 30, 2021; operating cash inflow increased to RMB 510 million, investment cash outflow decreased, and financing cash flow turned to net outflow due to increased debt repayment, while maintaining sufficient bank credit lines Capital Structure (RMB Thousand) | Item | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Net Debt | 1,692,768 | 1,804,640 | | Total Shareholders' Equity | 2,989,205 | 3,150,113 | | Capital Gearing Ratio | 36.16% | 36.42% | | Asset-Liability Ratio | 71.96% | 71.50% | Cash Flow Summary (RMB Thousand) | Cash From/(Used In) | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Operating Activities | 510,097 | 352,216 | | Investing Activities | (212,576) | (413,786) | | Financing Activities | (272,169) | 59,368 | - As of June 30, 2021, the Group's total outstanding borrowings amounted to RMB 2.957 billion, with approximately 59% bearing interest at fixed rates[105] Other Information Equity Information As of June 30, 2021, the company's total share capital was 799,847,800 shares, with controlling shareholder Guangdong Provincial Communications Group Co., Ltd. directly holding approximately 74.12% of the shares, and information on other substantial shareholders and directors' holdings also disclosed - Controlling shareholder Guangdong Provincial Communications Group Co., Ltd. holds 74.12% of the company's shares[117] - For the six months ended June 30, 2021, there were no changes in the company's shares, nor were any listed shares purchased, sold, or redeemed[124][125] Corporate Governance The company is committed to high corporate governance standards, confirming full compliance with the Listing Rules' Corporate Governance Code during the reporting period, with the Board, Audit and Corporate Governance Committee, and Supervisory Committee compositions disclosed, and the Audit and Corporate Governance Committee having reviewed the unaudited interim financial report - The company complied with all code provisions of the Corporate Governance Code for the six months ended June 30, 2021[133] - The Audit and Corporate Governance Committee reviewed the unaudited interim financial report for the six months ended June 30, 2021, and recommended its adoption by the Board[138] Employees and Dividends As of June 30, 2021, the Group had 22,014 employees, with total employee costs of approximately RMB 941 million in H1, and the Board did not recommend an interim dividend for the six months ended June 30, 2021 - As of June 30, 2021, the Group had 22,014 employees, with total employee costs of approximately RMB 941 million in H1[141] - The Board did not recommend the payment of an interim dividend for the six months ended June 30, 2021[143] Significant Litigation The report disclosed two significant litigations: one to recover RMB 472 million in steel prepayments from companies in bankruptcy, for which full impairment has been recognized, and another for RMB 35.68 million in advances by a subsidiary, which was settled and closed in June 2021 - The company is still pursuing a significant lawsuit to recover RMB 472 million in prepayments, but full impairment provision has been made as the debtor has entered bankruptcy proceedings[146] - Another lawsuit involving RMB 35.68 million was settled and closed in June 2021[147] Unaudited Interim Financial Statements Review Report Independent auditor Lixin Certified Public Accountants (Special General Partnership) reviewed the company's H1 2021 financial statements under Chinese CPA Review Standard No. 2101, concluding that nothing came to their attention suggesting the statements were not prepared in accordance with accounting standards or did not fairly reflect the company's financial position and operating results, noting that a review provides less assurance than an audit, thus no audit opinion was expressed - The auditor performed review procedures, which provide a lower level of assurance than an audit, and therefore did not express an audit opinion[149] - Based on the review, the auditor found no matters that caused them to believe the interim financial statements contained material misstatements[150] Consolidated Financial Statements This section presents the company's unaudited consolidated balance sheet, income statement, cash flow statement, and statement of changes in equity as of June 30, 2021, along with the parent company's corresponding financial statements, detailing the financial position, operating results, cash flows, and equity changes for the reporting period Notes to the Interim Financial Statements The notes detail the company's background, basis of preparation, significant accounting policies and estimates, major taxes, and provide breakdowns of key consolidated financial statement items, along with disclosures on changes in consolidation scope, interests in other entities, related party relationships and transactions, commitments, and segment information Company Background and Basis of Preparation The notes describe the company's history and main operations, confirming the financial statements are prepared on a going concern basis, as management believes sufficient funds are available for the next 12 months, despite current liabilities exceeding current assets by RMB 540 million as of June 30, 2021, due to an unused credit line of RMB 4.188 billion - As of June 30, 2021, the Group's current liabilities exceeded current assets by RMB 540 million, but with an unused comprehensive credit line of RMB 4.188 billion, the financial statements are still prepared on a going concern basis[220] Changes in Significant Accounting Policies and Estimates During the reporting period, the company changed its accounting estimate for new energy bus depreciation from 6-8 years to a uniform 8 years, effective January 1, 2021, applying the prospective method, which reduced fixed asset depreciation by RMB 48.38 million and deferred income amortization by RMB 14.59 million this period - Effective January 1, 2021, the company changed the depreciation period for new energy buses from 6-8 years to 8 years, applying the prospective method of accounting[445] - This change in accounting estimate resulted in a RMB 48.375 million reduction in fixed asset depreciation and a RMB 14.594 million reduction in deferred income amortization for new energy buses this period[446] Related Parties and Related Party Transactions The notes extensively disclose transactions with the parent company, Guangdong Provincial Communications Group Co., Ltd., and its controlled entities, covering a wide range of activities including procurement, services, service area management, advertising, asset leasing, intercompany borrowings, and financial company deposits/loans, which are integral to the company's daily operations - The company entered into service area management contracts and highway outdoor advertising resource operation contracts with multiple related parties, forming a significant source of investment promotion and advertising business revenue[612][625] - The company holds substantial deposits with Guangdong Provincial Communications Group Finance Co., Ltd. and obtains short-term and long-term borrowings from it, constituting important financing and cash management channels for the company[649][656]