四川成渝高速公路(00107) - 2024 - 中期财报

Company Information and Profile Company Information This section details Sichuan Chengyu Expressway Co., Ltd.'s fundamental corporate information, including its legal name, registered address, and stock exchange listings - The company's A-shares are listed on the Shanghai Stock Exchange (601107) and H-shares on the Hong Kong Stock Exchange (00107)[38] - The legal representative is Luo Zuyi, with the registered and office address in Chengdu, Sichuan Province, China[35] Company Profile The Group primarily invests in, constructs, operates, and manages expressways, expanding into road-related economy and green energy sectors, with total assets of approximately RMB 60.116 billion as of June 30, 2024 - The Group's core business is expressway investment, construction, operation, and management, alongside developing green energy industries including charging, battery banking, battery swapping, and hydrogen energy[44] Company Asset Scale and Road Assets (As of June 30, 2024) | Indicator | Value | | :--- | :--- | | Total Assets | Approx. RMB 60.116 billion | | Net Assets | Approx. RMB 16.624 billion | | Total Operating Mileage | Approx. 858 km | | Expressway Mileage Under Construction | Tianqiong Expressway approx. 42 km, Chengle Expansion approx. 136.1 km | Interim Condensed Financial Information Financial Statements In H1 2024, the Group experienced declines in total revenue and net profit attributable to owners, while total assets and liabilities increased, with operating cash flow showing a net outflow Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2024, the company's revenue decreased by 5.98% to RMB 5.319 billion, and profit attributable to owners declined by 10.54% to RMB 698 million Key Financial Performance H1 2024 (Unaudited) | Indicator | H1 2024 (RMB thousands) | H1 2023 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 5,319,241 | 5,657,375 | -5.98% | | Gross Profit | 1,555,829 | 1,566,668 | -0.69% | | Operating Profit | 1,324,953 | 1,433,723 | -7.59% | | Profit Before Tax | 902,973 | 998,851 | -9.60% | | Profit for the Period | 732,672 | 827,511 | -11.46% | | Profit Attributable to Owners of the Company | 698,095 | 780,353 | -10.54% | | Basic Earnings Per Share (RMB yuan) | 0.228 | 0.255 | -10.59% | Consolidated Statement of Financial Position As of June 30, 2024, total assets increased by 4.29% to RMB 60.116 billion, total liabilities grew by 6.16% to RMB 43.492 billion, while equity attributable to owners slightly decreased Summary of Financial Position (Unaudited) | Indicator | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 60,116,132 | 57,640,787 | +4.29% | | Non-current Assets | 56,202,787 | 54,521,932 | +3.08% | | Current Assets | 3,913,345 | 3,118,855 | +25.47% | | Total Liabilities | 43,491,885 | 40,967,506 | +6.16% | | Non-current Liabilities | 36,093,474 | 34,649,754 | +4.17% | | Current Liabilities | 7,398,411 | 6,317,752 | +17.11% | | Total Equity | 16,624,247 | 16,673,281 | -0.29% | | Equity Attributable to Owners of the Company | 15,643,298 | 15,673,318 | -0.19% | Consolidated Statement of Cash Flows In H1 2024, operating and investing activities resulted in net cash outflows, while financing activities generated significant net inflows, leading to an overall increase in cash and cash equivalents Summary of Cash Flows (Unaudited) | Indicator | H1 2024 (RMB thousands) | H1 2023 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Outflow from Operating Activities | (63,810) | (85,351) | | Net Cash (Outflow)/Inflow from Investing Activities | (111,637) | 2,572,644 | | Net Cash Inflow/(Outflow) from Financing Activities | 991,721 | (1,753,713) | | Net Increase in Cash and Cash Equivalents | 816,274 | 733,580 | Notes to Financial Information These notes detail the financial statements' basis, accounting policies, and item composition, highlighting segment revenue trends, major ongoing construction projects, and the expansion of secured borrowings - The Group operates across six segments: expressways, engineering construction, traffic services, transportation logistics, new energy technology, and others, with expressways and engineering construction as primary revenue sources[85][87] - Significant ongoing construction projects include the Chengle Expressway expansion and Tianqiong Expressway BOT projects, which account for the majority of capitalized expenditures this period[127] - The Group's bank loans are secured by the toll operation rights of multiple expressways, including Chengle, Chengren, Tianqiong, Suiguangsuixi, and Errao West Expressways, totaling a significant amount[125][126] Management Discussion and Analysis Business Review and Analysis In H1 2024, the Group's revenue and profit declined due to expressway competition and reduced engineering construction, while new energy business saw over 300% growth, with key expressway projects continuing progress Revenue Performance by Business Segment (H1 2024) | Business Segment | Revenue (RMB thousands) | YoY Growth Rate | | :--- | :--- | :--- | | Expressways | 2,325,982 | -1.50% | | Engineering Construction | 1,783,253 | -12.26% | | Traffic Services | 1,041,825 | +11.24% | | Transportation Logistics | 107,614 | -65.53% | | New Energy Technology | 60,567 | +311.96% | - Expressway business was impacted by diversion from high-speed rail (e.g., Chengren Expressway by Chengyi HSR) and new expressways (e.g., Chengya Expressway by Ehan Expressway), leading to reduced traffic and toll revenue on certain sections[232] - The two major ongoing construction projects, Chengle Expressway expansion and Tianqiong Expressway BOT, have accumulated investments of approximately RMB 12.75 billion and RMB 6.505 billion respectively[237][238] Analysis of Operating Results and Financial Position During the period, the Group's operating performance faced pressure with revenue down 5.98% and net profit attributable to owners down 10.54%, while the debt-to-capital ratio slightly increased to 72.35% due to increased leverage for project funding - Revenue decline was primarily driven by engineering construction (-12.26%) and transportation logistics (-65.53%), while new energy technology revenue (+311.96%) showed strong performance[244][245] - The decrease in net profit attributable to owners was mainly due to a 7.58% profit reduction in the expressway segment (due to traffic diversion and increased depreciation) and a 99.18% profit decline in the transportation logistics segment (due to a large impairment reversal in the prior year)[253][254] - The Group's debt-to-capital ratio increased from 71.07% at year-end 2023 to 72.35%, indicating higher leverage to support project construction[263] Borrowings and Solvency (As of June 30, 2024) | Item | Amount (RMB thousands) | | :--- | :--- | | Total Bank and Other Interest-bearing Borrowings | 40,116,933 | | Of which: Bank Loans | 35,166,109 | | Of which: Corporate Bonds | 2,000,000 | | Asset Collateral | Secured by toll operation rights of multiple expressways, with a total book net value of RMB 49,519,806 thousands | Business Development Plan The company plans a 'dual-wheel drive' strategy combining industrial and capital operations, focusing on consolidating its expressway business, accelerating new energy development, and enhancing risk management for sustainable growth - The core business strategy involves multi-dimensional strengthening of the expressway main business through upgrades, expansions (e.g., Chengle expansion), asset integration, and acquisitions of quality road assets[279] - The emerging business strategy focuses on accelerating new energy industry development, extending from services to R&D, and building a comprehensive energy service ecosystem (oil, gas, charging, swapping, hydrogen, storage) leveraging the road network[281] - The development model is a 'dual-wheel drive' approach emphasizing both industrial and capital operations, aiming to enhance intrinsic value through deep industrial cultivation and build a capital market brand image centered on market value management[282] Shareholders and Corporate Governance Changes in Share Capital and Major Shareholders' Holdings The company's share capital structure remained unchanged, with Shu Dao Investment Group Co., Ltd. (39.86%) and China Merchants Expressway Network Technology Holdings Co., Ltd. (24.88%) as major shareholders as of June 30, 2024 Major Shareholders' Holdings (As of June 30, 2024) | Major Shareholder Name | Total Shares Held | Percentage of Total Share Capital | | :--- | :--- | :--- | | Shu Dao Investment Group Co., Ltd. | 1,218,919,662 | 39.86% | | China Merchants Expressway Network Technology Holdings Co., Ltd. | 760,945,376 | 24.88% | - The company's controlling shareholder, Shu Dao Investment Group Co., Ltd., remained unchanged during the reporting period[212] Information on Directors, Supervisors, and Senior Management During the period, the company experienced significant changes in its Board and senior management, including resignations, re-elections, and appointments to key positions, with Mr. Luo Zuyi elected as Executive Director and appointed Chairman in April 2024 - The company experienced multiple high-level personnel changes during the period, including resignations and new elections of independent directors, and changes in chairman and general manager positions[216][217][218] - On April 9, 2024, Mr. Luo Zuyi was elected as an Executive Director and appointed as Chairman of the company's Eighth Board of Directors[218] Other Significant Matters and Post-Reporting Period Events Other Significant Matters The Board resolved not to distribute a 2024 interim dividend, while the 2023 final dividend of RMB 0.24 per share was paid; the Group had 4,605 employees and fully complied with the Corporate Governance Code - The Board resolved not to distribute a 2024 interim dividend; the 2023 annual cash dividend of RMB 0.24 per share (tax inclusive) has been fully implemented[286] - As of June 30, 2024, the Group had a total of 4,605 employees, with 3,221 production personnel forming the largest proportion[287][288] - During the reporting period, the company adopted and fully complied with the HKEX Corporate Governance Code[296] Post-Reporting Period Events Post-reporting period, the company's equity in an associate was diluted due to capital increase, and it is planning to acquire an 85% stake in Hubei Jingyi Expressway Co., Ltd. via A-share issuance and cash payment - The company is planning to acquire an 85% equity stake in Hubei Jingyi Expressway Co., Ltd. from Shu Dao (Sichuan) Innovation Investment Development Co., Ltd. through A-share issuance and cash payment, which is currently in the planning stage[205][302] - The Group's equity stake in associate Shu Dao Financial Leasing (Shenzhen) Co., Ltd. will be diluted from 25.0455% to approximately 8.6545% due to the latter's capital increase[203]