越秀交通基建(01052) - 2025 - 中期业绩

Financial Statements Interim Condensed Consolidated Income Statement The Group's total revenue increased by 14.9% to RMB 2.10 billion, with operating profit up 7.6% to RMB 850 million, and profit attributable to equity holders of the Company rising 14.9% to RMB 361 million Six-Month Performance Summary as of June 30, 2025 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 2,099,133 | 1,826,884 | +14.9% | | Operating Profit | 850,644 | 790,520 | +7.6% | | Profit Before Income Tax | 715,826 | 634,718 | +12.8% | | Profit for the Period | 543,342 | 467,595 | +16.2% | | Profit Attributable to Equity Holders of the Company | 360,764 | 313,938 | +14.9% | | Basic Earnings Per Share (RMB) | 0.2156 | 0.1876 | +14.9% | Interim Condensed Consolidated Statement of Comprehensive Income During the reporting period, the Group's total comprehensive income was RMB 543 million, a 16.1% increase from RMB 468 million in the prior year, with RMB 360 million attributable to equity holders of the Company, up 14.8% Total Comprehensive Income | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Profit for the Period | 543,342 | 467,595 | +16.2% | | Other Comprehensive (Loss)/Income for the Period | (319) | 178 | - | | Total Comprehensive Income for the Period | 543,023 | 467,773 | +16.1% | | Attributable to Equity Holders of the Company | 360,445 | 314,116 | +14.8% | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were RMB 37.38 billion, largely unchanged from the beginning of the year, while total liabilities decreased by 2.1% to RMB 21.63 billion, and total equity increased to RMB 15.75 billion, with RMB 12.01 billion attributable to equity holders of the Company Financial Position Summary | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 37,379,135 | 37,506,791 | -0.3% | | Non-Current Assets | 34,802,264 | 35,255,778 | -1.3% | | Current Assets | 2,576,871 | 2,251,013 | +14.5% | | Total Liabilities | 21,633,700 | 22,100,654 | -2.1% | | Non-Current Liabilities | 17,225,199 | 16,837,687 | +2.3% | | Current Liabilities | 4,408,501 | 5,262,967 | -16.2% | | Total Equity | 15,745,435 | 15,406,137 | +2.2% | | Equity Attributable to Equity Holders of the Company | 12,007,565 | 11,848,306 | +1.3% | - At the end of the reporting period, the Group's current liabilities exceeded current assets by RMB 1.832 billion; however, the Board believes the Group can meet its obligations within the next twelve months, based on projected cash flows, available bank financing, and internal funds, thus preparing financial statements on a going concern basis[9] Notes to the Financial Information Revenue and Segment Information The Group's primary business involves investing, constructing, operating, and managing expressways and bridges in Guangdong and other high-growth provinces in China, with total revenue of RMB 2.10 billion entirely from the toll road operation segment, where toll revenue accounts for 98.1% Revenue Composition for H1 2025 | Revenue Source | Amount (RMB thousands) | % of Total Revenue | | :--- | :--- | :--- | | Toll Revenue | 2,059,330 | 98.1% | | Revenue from Service Areas and Gas Stations | 19,109 | 0.9% | | Revenue from Entrusted Highway Management Services | 16,554 | 0.8% | | Other Toll Operation Revenue | 4,140 | 0.2% | | Total | 2,099,133 | 100.0% | - Geographical segment information is not presented separately as all major operating entities, revenue sources, and most assets of the Group are located in China[17] Expenses by Nature During the reporting period, amortization of intangible operating rights was the largest component of total expenses, reaching RMB 885 million, a 26.3% increase, while total staff costs amounted to RMB 217 million, up 16.4% Key Expense Items | Expense Item | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Amortization of Intangible Operating Rights | 884,751 | 700,470 | +26.3% | | Total Staff Costs | 217,421 | 186,337 | +16.7% | | Maintenance Expenses for Toll Roads and Bridges | 56,982 | 65,908 | -13.5% | | Operating Expenses for Toll Roads and Bridges | 54,797 | 45,209 | +21.2% | Dividends The Board resolved to declare an interim dividend of HKD 0.12 per share for 2025, consistent with the prior year, totaling approximately RMB 183 million - The Board resolved on August 15, 2025, to declare an interim dividend of HKD 0.12 per share, totaling approximately RMB 183 million[31] Management Discussion and Analysis Business Review This section outlines the Group's portfolio of toll roads, bridges, and port assets, detailing their operational metrics, equity interests, and toll expiry dates, alongside analyses of H1 average daily toll revenue, traffic volume changes, quarterly distribution, and vehicle type composition H1 2025 YoY Change in Average Daily Toll Revenue and Traffic Volume for Selected Road Assets | Project Name | Average Daily Toll Revenue (RMB/day) | YoY Change | Average Daily Toll Traffic Volume (Vehicles/day) | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Subsidiaries | | | | | | Guangzhou Northern Second Ring Expressway | 2,722,765 | 0.0% | 294,098 | 1.8% | | Hubei Suiyue South Expressway | 1,981,048 | 6.9% | 32,059 | 2.1% | | Hubei Hancai Expressway | 789,586 | 18.0% | 54,099 | 8.5% | | Hubei Han'e Expressway | 850,045 | 57.5% | 57,667 | 31.8% | | Associates and Joint Ventures | | | | | | Humen Bridge | 2,128,420 | -26.5% | 80,791 | -24.7% | Overview of Operating Performance In H1 2025, China's economy showed stable growth with national GDP up 5.3%, while key operating regions like Guangdong, Guangxi, Hunan, Hubei, and Henan also reported strong GDP growth, providing a favorable macro environment for traffic infrastructure, further supported by continuous growth in national vehicle ownership H1 2025 GDP Growth in Key Operating Regions | Region | H1 2025 GDP (RMB hundred millions) | YoY Growth Rate | | :--- | :--- | :--- | | National | 660,536 | 5.3% | | Guangdong Province | 68,725 | 4.2% | | Guangxi Zhuang Autonomous Region | 13,851 | 5.5% | | Hunan Province | 26,167 | 5.6% | | Hubei Province | 29,643 | 6.2% | | Henan Province | 31,684 | 5.7% | - Revisions to the Highway Law and Toll Road Management Regulations are included in the Ministry of Transport's 2025 legislative plan, indicating potential future changes in industry policy[52] Business Enhancement and Innovation The Group achieved significant results through lean management, enhancing profitability, efficiency, and service quality by expanding revenue streams via traffic diversion, combating toll evasion, and developing 'expressway+' businesses, while also promoting new technologies, digital transformation, and building an integrated smart transportation platform - Actively expanding diversified revenue sources, deepening the 'expressway+' concept, revitalizing resources such as service areas and roadside land, and advancing roadside photovoltaic power generation projects[55] - Continuously advancing innovative technology applications, including promoting smart tolling technology, building an integrated smart transportation system platform, and having multiple projects selected as Ministry of Transport pilot programs for infrastructure digital transformation and upgrading[57] Investment Progress and Risks The Group's core investment, the Guangzhou Northern Second Ring Expressway expansion project, commenced full construction in June 2024, with work progressing orderly, while management has identified and addressed key risks including parallel road competition, construction, operation, investment, and integrity risks to ensure smooth project execution - The core strategic project, the Guangzhou Northern Second Ring Expressway expansion project, achieved critical progress, obtaining construction permits and commencing full construction on June 20, 2024[60] - The company faces key risks including: 1) diversion impact on some road assets from surrounding parallel expressways (e.g., Anluo, Wuyang, Shenzhen-Zhongshan Link); 2) construction, operation, investment overrun, and integrity risks for the Guangzhou Northern Second Ring expansion project[61][63][66][67] Operating Performance of Road Assets Most projects saw increased traffic and toll revenue due to travel growth and a low base; however, key assets like Henan Weixu/Lanwei Expressways, Hubei Daguangnan Expressway, and Humen Bridge experienced YoY declines in average daily toll revenue due to diversion from newly opened or discounted parallel routes, with Humen Bridge notably seeing over 20% drops in both revenue and traffic - Hubei Han'e Expressway's average daily toll revenue increased by 57.5% YoY, primarily due to traffic (mainly trucks) rerouting from the closed Wuhan-Huangshi Expressway, a competing route[78] - Humen Bridge's average daily toll revenue decreased by 26.5% YoY, with traffic volume down 24.7%, primarily due to significant diversion caused by the opening of the Shenzhen-Zhongshan Link, a competing route, on June 30, 2024[83] - Henan Weixu Expressway and Henan Lanwei Expressway's average daily toll revenues decreased by 7.6% and 4.4% respectively, mainly due to diversion from Anluo Expressway's differentiated toll policy and traffic restrictions on Beijing-Hong Kong-Macau Expressway construction, leading to reduced high-toll truck traffic[73][74] Financial Review This section reviews the Group's financial performance and position, highlighting a 14.9% YoY increase in revenue and profit attributable to equity holders, driven by new acquisitions and strong road asset growth, while operating costs rose, financial expenses decreased due to lower interest rates and optimized debt structure, and the capital gearing ratio improved from 50.0% to 48.5% Overview of Operating Results During the reporting period, the Group's revenue grew by 14.9% to RMB 2.10 billion, and profit attributable to equity holders increased by 14.9% to RMB 361 million, driven by the consolidation of Henan Pinglin Expressway, increased revenue from Hubei Han'e Expressway due to competitor road closure, and reduced finance costs from lower interest rates and optimized debt structure, with the Board declaring an interim dividend of HKD 0.12 per share, representing a payout ratio of 50.6% Key Operating Performance Data | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 2,099,133 | 1,826,884 | 14.9% | | Operating Profit | 850,644 | 790,520 | 7.6% | | Profit Attributable to Equity Holders of the Company | 360,764 | 313,938 | 14.9% | | Basic Earnings Per Share (RMB) | 0.2156 | 0.1876 | 14.9% | Analysis of Operating Results During the reporting period, toll revenue increased by 15.2% to RMB 2.06 billion, primarily from the newly consolidated Henan Pinglin Expressway, while operating costs rose by 22.7% to RMB 1.12 billion due to consolidation and increased amortization of intangible operating rights, leading to a 3.3 percentage point decrease in gross profit margin to 46.8%, and finance costs decreased by 11.1% to RMB 222 million due to lower interest rates and optimized debt structure, with share of results of associates and joint ventures declining by 4.4% mainly due to Humen Bridge's performance - Toll revenue increased by 15.2% YoY, primarily due to the consolidation of Henan Pinglin Expressway's financial performance and increased revenue from Hubei Han'e Expressway due to the closure of a competing road section[93] - Operating costs increased by 22.7% YoY, mainly due to the consolidation of Henan Pinglin Expressway and increased amortization of intangible operating rights, leading to an overall cost ratio increase of 3.3 percentage points to 53.2%[97] - Finance costs decreased by 11.1% YoY, primarily due to management's continuous optimization of debt structure, reduction in debt interest rates, and a decline in market interest rates, with the overall weighted average interest rate falling from 3.05% to 2.57%[106] Analysis of Financial Position At the end of the reporting period, the Group's total assets were RMB 37.38 billion, total liabilities were RMB 21.63 billion, and the capital gearing ratio improved from 50.0% at the beginning of the year to 48.5%, with total debt of RMB 17.02 billion, of which bank borrowings accounted for 63.4%, and the debt structure was primarily domestic RMB long-term borrowings with a fixed-to-floating interest rate ratio of approximately 38:62, while net cash generated from operating activities was RMB 1.45 billion, a 22.3% YoY increase, demonstrating strong cash generation capability Capital Structure and Financial Ratios | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Debt (RMB thousands) | 14,852,769 | 15,409,268 | | Total Equity (RMB thousands) | 15,745,435 | 15,406,137 | | Capital Gearing Ratio (Net Debt/Total Capital) | 48.5% | 50.0% | | Debt-to-Equity Ratio (Net Debt/Total Equity) | 94.3% | 100.0% | - Net cash generated from operating activities was RMB 1.45 billion, a 22.3% increase from RMB 1.18 billion in the prior year[128] - Of total external borrowings, domestic financing accounted for 99.7% and was denominated in RMB, with fixed-rate borrowings at 37.8% and floating-rate borrowings at 62.2%[142] Future Outlook Macroeconomic and Industry Policy Outlook Despite international uncertainties, the IMF raised China's 2025 economic growth forecast to 4.8%, demonstrating economic resilience, while domestic travel continues to recover, benefiting the expressway industry, and revisions to regulations like the 'Toll Road Management Regulations,' particularly the new rule extending the maximum concession period to generally no more than 40 years, could provide longer operating terms for large-scale, long-payback projects - The IMF has raised China's 2025 economic growth forecast to 4.8%, indicating continued resilience in China's economic growth[147] - The new 'Administrative Measures for Concession of Infrastructure and Public Utilities' adjusts the maximum concession period to generally no more than 40 years, benefiting projects with large investment scales and long payback periods[149] Company Development Strategy The company will continue the Guangzhou Northern Second Ring Expressway expansion to extend core asset operating periods and solidify its Greater Bay Area strategic position, while adhering to the '3331' development strategy, perfecting three platforms, enhancing three core capabilities, and focusing on three directions, aiming to become a leading domestic transportation infrastructure asset management company - The core strategy is to advance the Guangzhou Northern Second Ring Expressway expansion, expected to extend the toll operating period and continuously benefit from the Greater Bay Area's development dividends[150] - The company will be guided by the '3331' development strategy, strengthening its main business through three platforms, three core capabilities, and three focus areas, aiming to become a leading domestic transportation infrastructure asset management company[151] Other Information Corporate Governance and Interim Results Review The company complied with the Corporate Governance Code, with Mr. He Baiqing, Executive Director and General Manager, resigning due to retirement, and the Group's H1 2025 results have been reviewed by the Board's Audit Committee and company auditors - The company's interim results have been reviewed by the Board's Audit Committee and the company's auditors[154] Dividends and Share Transfer Registration To qualify for the interim dividend, shareholders must complete share transfer registration by 4:30 p.m. on October 31, 2025, as the company will suspend share transfer registration from November 3 to November 5, 2025 - The record date for the interim dividend is November 5, 2025, requiring shareholders to submit transfer documents by 4:30 p.m. on October 31, 2025[156]