ANHUI EXPRESSWAY(SH:600012)2017-03-26 16:00Financial Performance - The net profit for the year 2016, according to Chinese accounting standards, was RMB 1,023,956 thousand, while the profit under Hong Kong accounting standards was RMB 1,001,953 thousand[7]. - The total distributable profit for shareholders for 2016 was RMB 1,001,953 thousand, based on the lower amount calculated under domestic and overseas accounting standards[7]. - The company proposed a cash dividend of RMB 2.3 per 10 shares, totaling RMB 381,480.30 thousand to be distributed[7]. - The company confirmed that there were no non-operating fund occupations by controlling shareholders and their related parties[10]. - The company’s total share capital is 1,658,610,000 shares[7]. - The company's operating revenue for 2016 was RMB 2,499,135,630.47, representing a year-on-year increase of 2.97% compared to RMB 2,427,004,934.21 in 2015[22]. - The net profit attributable to shareholders of the listed company for 2016 was RMB 933,257,550.08, a slight decrease of 0.49% from RMB 937,866,859.94 in 2015[22]. - The net cash flow from operating activities increased by 15.24% to RMB 1,752,401,524.95 in 2016, up from RMB 1,520,718,342.55 in 2015[22]. - The total assets at the end of 2016 reached RMB 13,120,801,927.91, an increase of 8.07% from RMB 12,140,702,151.14 at the end of 2015[23]. - The basic earnings per share for 2016 was RMB 0.5627, down 0.50% from RMB 0.5655 in 2015[24]. - The weighted average return on equity for 2016 was 11.16%, a decrease of 0.79 percentage points compared to 11.95% in 2015[24]. - The company reported a total of RMB 1,726,817.27 in non-recurring gains and losses for 2016, compared to a loss of RMB 1,270,741.39 in 2015[30]. - The total profit for the year was RMB 1,245,920 thousand, a decrease of 1.19% from RMB 1,260,870 thousand in 2015[72]. - Net profit attributable to shareholders was RMB 933,258 thousand, down 0.49% from RMB 937,867 thousand in 2015[72]. - The company reported a toll revenue of RMB 2,423,267 thousand, which increased by 3.99% compared to the previous year[73]. Operational Highlights - The company operates and manages a total of 526 kilometers of toll roads, with 496 kilometers being expressways, accounting for 10.92% of the total expressway mileage in Anhui Province, which is 4,543 kilometers[39]. - In 2016, the company achieved toll revenue of RMB 2.423 billion, representing 96.96% of total operating revenue[39]. - The company continues to manage 6 expressways and 1 national highway, while also advancing the investment and construction of the third phase of the Ningxuanhang Expressway[39]. - The company is also involved in the management of 452.8 kilometers of expressways on behalf of Anhui Communications Control Group[40]. - The company has diversified its operations by investing in financial services, including New An Financial and New An Capital, to mitigate risks associated with the toll road business[41]. - The company’s main business revenue accounted for 98.20% of total operating revenue, indicating a strong focus on core operations[58]. Risk Management and Challenges - The company has detailed risk factors and countermeasures in the section discussing future development risks[10]. - The company is adapting its operational strategies in response to the slowing economic growth and its impact on freight volume, which is expected to continue to decline[44]. - The company faces challenges in its main business growth due to saturated traffic volumes and limited toll revenue growth potential, necessitating new road construction, expansion of existing assets, or acquisition of mature assets[68]. - The company is facing challenges in the toll road industry, including limited growth in toll revenue due to economic slowdown and rising operational costs[104]. - The company is aware of the risks posed by macroeconomic changes and industry policy shifts, which could impact toll revenue and operational performance[128]. - The company recognizes the potential negative impact of increased competition from high-speed rail and alternative routes on toll revenue growth[131]. Investment and Financing - The company has a low debt-to-asset ratio and strong solvency, facilitating domestic and international financing opportunities[53]. - The company plans to issue a 10 billion RMB short-term financing bond to meet funding needs, pending approval from the China Interbank Market Dealers Association[166]. - The company has committed to invest up to RMB 250 million in entrusted loans for the construction of the Xuanli section of the Ningxuan Hang project[165]. - The company has a total of RMB 1.61 billion in entrusted loans and investments, with no overdue principal or interest[161]. - The company is exploring the establishment of a fund management company and the initiation of an industrial investment fund[168]. Corporate Governance and Management - The company is committed to ensuring the accuracy and completeness of the financial report, as stated by the management team[6]. - The audit report issued by PwC was a standard unqualified opinion, affirming the reliability of the financial statements[6]. - The company has made significant efforts in financial supervision, information disclosure, and governance, leading to improved management efficiency[67]. - The company is focused on optimizing its internal control system to enhance professional management and resource efficiency[63]. - The company has engaged in various related party transactions, including providing highway toll system management services and construction management services[149]. - The company has maintained a good integrity status without any significant debts or court judgments pending[148]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 21,770, a decrease from 28,533 in the previous month[182]. - The largest shareholder, Anhui Transportation Holding Group Co., Ltd., holds 524,644,220 shares, accounting for 31.63% of total shares[184]. - HKSCC NOMINEES LIMITED is the second largest shareholder with 489,035,899 shares, representing 29.48%[184]. - The third largest shareholder, China Merchants Highway Network Technology Holdings Co., Ltd., holds 404,191,501 shares, which is 24.37% of total shares[184]. - The report indicates that there were no changes in the holdings of the top three shareholders during the reporting period[185]. Social Responsibility and Community Engagement - The company donated RMB 50,000 for agricultural infrastructure improvements in Changfeng County, contributing to its poverty alleviation efforts[171]. - A total of RMB 105,745 was invested in various poverty alleviation projects during the year, including direct assistance to 18 left-behind children[174]. - The company has committed to ongoing poverty alleviation initiatives, including paired assistance and targeted support, with plans for further investment in local industries[175].