ANHUI EXPRESSWAY(SH:600012)2016-03-27 16:00Financial Performance - The net profit for the year 2015, according to Chinese accounting standards, was RMB 974,217 thousand, while under Hong Kong accounting standards, it was RMB 947,248 thousand[5]. - The distributable profit for shareholders for 2015 was RMB 947,248 thousand, based on the lower amount calculated under both accounting standards[5]. - The company's operating revenue for 2015 was approximately RMB 2,427 million, representing a 3.74% increase compared to RMB 2,340 million in 2014[21]. - Net profit attributable to shareholders of the listed company reached approximately RMB 937 million, an increase of 8.94% from RMB 861 million in the previous year[21]. - Basic earnings per share for 2015 were RMB 0.5655, reflecting an 8.96% increase from RMB 0.519 in 2014[23]. - The total assets of the company at the end of 2015 were approximately RMB 12,141 million, a 5.27% increase from RMB 11,532 million at the end of 2014[22]. - The net assets attributable to shareholders of the listed company increased by 6.77% to approximately RMB 8,117 million from RMB 7,602 million in 2014[22]. - The company generated a net cash flow from operating activities of approximately RMB 1,521 million, a decrease of 4.71% from RMB 1,596 million in 2014[21]. - The weighted average return on equity for 2015 was 11.95%, slightly up from 11.83% in 2014[23]. - The company reported a net profit of RMB 937 million under Chinese accounting standards, while the adjusted net profit under international accounting standards was RMB 929 million[25]. Dividend Policy - The board of directors proposed a cash dividend of RMB 2.30 per 10 shares, totaling RMB 381,480.30 thousand to be distributed[5]. - The company has maintained a consistent cash dividend policy, having distributed cash dividends for 20 consecutive years, reflecting its commitment to shareholder returns[130]. - The company implemented a cash dividend plan for 2015, distributing 2.3 RMB per 10 shares, totaling 381,480.30 thousand RMB, which represents 40.68% of the net profit attributable to shareholders[136]. - The 2014 cash dividend plan was executed in July 2015, with a similar distribution of 2.3 RMB per 10 shares, amounting to 381,480.30 thousand RMB, accounting for 44.31% of the net profit[132][136]. Operational Highlights - The company managed a total operational road mileage of 526 kilometers as of December 31, 2015[35]. - The company operates and manages a total of 526 kilometers of toll roads, with 496 kilometers being expressways, accounting for 11.63% of the total expressway mileage in Anhui Province[39]. - Toll revenue for the year reached RMB 2.33 billion, representing 96.01% of total operating income[39]. - The average daily traffic flow on the He-Ning Expressway increased by 4.52% to 24,571 vehicles[71]. - The company’s financial performance was negatively impacted by a 0.35% decrease in truck traffic volume across various routes[69]. Risk Management and Future Strategies - The company has detailed risk factors and future development strategies in the management discussion and analysis section of the report[6]. - The report emphasizes the importance of rational investment and awareness of investment risks for investors[6]. - The company plans to continue expanding its expressway network and enhance its financial services in response to market conditions[40]. - The company will explore diversified development paths, leveraging its strong capital base to seek quality investment projects amid a challenging macroeconomic environment[119]. - The company recognizes the risks posed by changes in the macroeconomic environment and industry policies, which could impact toll revenue growth due to reduced transportation demand[122]. Financial Services and Investments - The company has diversified its operations by investing in financial services, including New An Financial, Anhui Tong Pawn, and Anhui Tong Microfinance[41]. - The company’s financial services segment is expected to grow due to favorable national policies and competitive barriers[41]. - The company has diversified its business by investing in quasi-financial services, including holding stakes in Xin'an Financial, Wantong Pawn, and Wantong Microfinance, while controlling risks by reducing the scale of these operations due to industry challenges[49]. - Xin'an Financial successfully listed on the New Third Board in December 2015, following a restructuring to separate its P2P and pawn businesses, with the company holding a 6.62% stake in both entities[62]. Corporate Governance - The company has engaged PwC Zhongtian and RSM China as its auditors for 14 years, with audit fees of 143 thousand RMB and 70 thousand RMB respectively for domestic and overseas services[140][142]. - The company has not encountered any significant litigation or arbitration matters during the reporting period[143]. - The company and its major stakeholders maintained a good integrity status during the reporting period, with no significant debts or court judgments unmet[143]. - The company has a diverse management team with extensive experience in various sectors, including transportation and finance[184]. - The company is focused on maintaining a strong governance framework with no reported conflicts of interest among its directors and supervisors[182]. Employee Management - The total number of employees in the parent company is 1,576, while the main subsidiaries have 565 employees, resulting in a total of 2,141 employees[197]. - The company paid a total of RMB 21.54 million for social insurance and RMB 18.21 million for housing provident fund in 2015[198]. - The company contributed RMB 2.46 million to the enterprise annuity plan in 2015 to incentivize employee retention[199]. - The company emphasizes employee training, implementing various training programs in operational management, engineering technology, safety management, and financial management[200].