粤运交通(03399) - 2025 - 中期业绩

2025 Interim Results Announcement Performance and Business Highlights Guangdong Yueyun Transportation Co., Ltd. reported a 3% year-on-year increase in H1 2025 operating revenue to RMB 3,770,028 thousand, with net profit slightly down 1% but net profit attributable to parent company shareholders up 3% to RMB 142,644 thousand, and no interim dividend proposed 2025 H1 Performance Summary (RMB '000) | Indicator | As of June 30, 2025 (RMB '000) | As of June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,770,028 | 3,674,663 | 3% | | Net Profit | 134,414 | 135,604 | (1%) | | Net Profit Attributable to Parent Company Shareholders | 142,644 | 138,669 | 3% | | Basic Earnings Per Share | RMB 0.18 | RMB 0.17 | 3% | | Diluted Earnings Per Share | RMB 0.18 | RMB 0.17 | 3% | - The Board did not recommend the payment of an interim dividend for the six months ended June 30, 2025[3] Report Notes This announcement presents the unaudited consolidated interim results for Guangdong Yueyun Transportation Co., Ltd. and its subsidiaries for the six months ended June 30, 2025, reviewed by the Audit and Corporate Governance Committee and Lixin Certified Public Accountants - This interim results report has been reviewed by the Company's Audit and Corporate Governance Committee and Lixin Certified Public Accountants (Special General Partnership)[4] Consolidated Financial Statements This section presents the consolidated balance sheet and income statement as of June 30, 2025, showing a decrease in total assets and liabilities, a slight increase in owner's equity, revenue growth, and a slight decline in net profit with attributable net profit increasing Consolidated Balance Sheet As of June 30, 2025, total assets decreased by 3.25% to RMB 8,440,741 thousand, total liabilities decreased by 5.66% to RMB 5,771,581 thousand, and total owner's equity increased by 2.43% to RMB 2,669,160 thousand, with an increase in current liabilities and a significant decrease in non-current liabilities Consolidated Balance Sheet Key Data (RMB) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 8,440,741,072.68 | 8,724,059,777.83 | (3.25%) | | Total Current Assets | 2,706,704,677.29 | 2,666,605,098.63 | 1.50% | | Total Non-current Assets | 5,734,036,395.39 | 6,057,454,679.20 | (5.34%) | | Total Liabilities | 5,771,581,142.61 | 6,118,199,172.56 | (5.66%) | | Total Current Liabilities | 2,941,349,352.58 | 2,725,484,608.63 | 7.92% | | Total Non-current Liabilities | 2,830,231,790.03 | 3,392,714,563.93 | (16.58%) | | Total Owner's Equity | 2,669,159,930.07 | 2,605,860,605.27 | 2.43% | Consolidated Income Statement For H1 2025, total operating revenue grew 3% year-on-year to RMB 3,770,028 thousand, net profit slightly decreased 1% to RMB 134,414 thousand, while net profit attributable to parent company shareholders increased 3% to RMB 142,644 thousand, and after-tax net other comprehensive income significantly improved from negative to positive Consolidated Income Statement Key Data (RMB) | Item | January-June 2025 | January-June 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 3,770,028,082.54 | 3,674,662,696.59 | 3.00% | | Total Operating Costs | 3,771,025,108.71 | 3,675,818,805.95 | 2.60% | | Operating Profit | 175,802,407.95 | 189,753,485.07 | (7.35%) | | Total Profit | 175,618,960.02 | 190,935,899.71 | (8.02%) | | Net Profit | 134,413,582.58 | 135,603,731.44 | (0.88%) | | Net Profit Attributable to Parent Company Shareholders | 142,643,705.10 | 138,669,235.05 | 2.87% | | After-tax Net Other Comprehensive Income | 8,638,035.36 | (6,201,100.27) | 239.29% | | Total Comprehensive Income | 143,051,617.94 | 129,402,631.17 | 10.55% | | Basic Earnings Per Share (RMB/share) | 0.18 | 0.17 | 5.88% | | Diluted Earnings Per Share (RMB/share) | 0.18 | 0.17 | 5.88% | Notes to Financial Statements This section details the basis of financial statement preparation, changes in consolidation scope, composition and changes in major asset and liability items, specific details of profit and loss items, government grants, leases, and segment information 1. Basis of Preparation of Financial Statements These interim financial statements are prepared in accordance with PRC Accounting Standard No. 32 and applicable disclosure provisions of the HKEX Listing Rules and Hong Kong Companies Ordinance, on a going concern basis - These interim financial statements are prepared in accordance with the requirements of PRC Accounting Standard No. 32 – Interim Financial Reporting, issued by the Ministry of Finance of the People's Republic of China[12] - These interim financial statements comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the applicable disclosure requirements of the Hong Kong Companies Ordinance[12] - These interim financial statements are prepared on a going concern basis[14] 2. Changes in Consolidation Scope The Group's consolidation scope changed during the period, including the loss of control over subsidiaries due to disposal of investments (Zhuhai Gongyun, Guangzhou Zengcheng, Guangzhou Yueyun Auto Transport) and the establishment of two new subsidiaries (Guangdong Leyi Commercial and Guangdong Tongyi Commercial Development) Disposal of Investments in Subsidiaries Resulting in Loss of Control | Subsidiary Name | Equity Disposal Price (RMB) | Equity Disposal Ratio (%) | Date of Loss of Control | Fair Value of Remaining Equity at Date of Loss of Control (RMB) | | :--- | :--- | :--- | :--- | :--- | | Zhuhai Gongyun Auto Passenger Transport Station Co., Ltd. | 25,096,100.00 | 100.00 | February 17, 2025 | N/A | | Guangzhou Zengcheng Auto Passenger Transport Station Co., Ltd. | – | 15.00 | May 22, 2025 | 11,701,216.79 | | Guangzhou Yueyun Auto Transport Co., Ltd. | 250,400.00 | 18.00 | May 22, 2025 | 459,066.67 | New Subsidiaries Established This Year | Company Name | Date of Establishment | Registered Capital (million RMB) | Shareholding Ratio (%) | | :--- | :--- | :--- | :--- | | Guangdong Leyi Commercial Co., Ltd. | March 14, 2025 | 40 | 95.56 | | Guangdong Tongyi Commercial Development Co., Ltd. | March 14, 2025 | 10 | 95.56 | 3. Accounts Receivable As of June 30, 2025, total accounts receivable increased by 10.08% to RMB 284,903,739.33, with the largest portion being current within 3 months, and bad debt provisions increasing due to group-based provisions Accounts Receivable by Age (RMB) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months (inclusive) | 163,010,938.61 | 131,192,645.97 | | 3 to 6 months (inclusive) | 53,334,892.47 | 38,340,384.58 | | 6 months to 1 year (inclusive) | 49,392,132.29 | 82,330,921.47 | | 1 to 2 years (inclusive) | 34,481,038.71 | 19,113,279.43 | | 2 to 3 years (inclusive) | 11,252,464.50 | 10,651,170.50 | | Over 3 years | 28,701,831.18 | 25,491,579.91 | | Subtotal | 340,173,297.76 | 307,119,981.86 | | Less: Bad Debt Provisions | 55,269,558.43 | 48,298,900.83 | | Total | 284,903,739.33 | 258,821,081.03 | Movement in Bad Debt Provisions (RMB) | Category | December 31, 2024 | Recognized in P&L for the Period | Write-offs | Disposal of Subsidiaries | Exchange Difference on Foreign Currency Financial Statements | June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Bad debt provisions recognized individually | 3,825,180.63 | (100,697.89) | – | 202,367.32 | – | 3,522,115.42 | | Bad debt provisions recognized by portfolio | 44,473,720.20 | 9,353,023.45 | 438,120.23 | 1,639,601.98 | (1,578.43) | 51,747,443.01 | | Total | 48,298,900.83 | 9,252,325.56 | 438,120.23 | 1,841,969.30 | (1,578.43) | 55,269,558.43 | 4. Fixed Assets As of June 30, 2025, the carrying value of fixed assets decreased by 6.70% to RMB 1,827,695,854.58, primarily due to disposal of subsidiaries, write-offs or disposals, and depreciation, with a significant reduction in transportation equipment Fixed Assets Carrying Value (RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Fixed Assets | 1,827,695,854.58 | 1,959,016,114.87 | | Total | 1,827,695,854.58 | 1,959,016,114.87 | - The original cost of fixed assets decreased by RMB 317,631,941.10 during the period, mainly due to disposal of subsidiaries, write-offs or disposals[26] - Accumulated depreciation increased by RMB 168,969,115.08 and decreased by RMB 283,992,917.10 during the period, mainly due to disposal of subsidiaries, write-offs or disposals[26] 5. Right-of-Use Assets As of June 30, 2025, the carrying value of right-of-use assets decreased by 6.46% to RMB 2,160,909,849.74, mainly due to disposal of subsidiaries, disposals or expirations, and depreciation, with significant reductions in land leases and transportation equipment Right-of-Use Assets Carrying Value (RMB) | Item | June 30, 2025 Carrying Value | December 31, 2024 Carrying Value | | :--- | :--- | :--- | | Buildings | 2,138,612,036.84 | 2,177,495,677.16 | | Land Leases | 22,297,812.90 | 52,101,193.65 | | Transportation Equipment | – | 80,546,599.70 | | Total | 2,160,909,849.74 | 2,310,143,470.51 | - The original cost of right-of-use assets decreased by RMB 298,321,007.91 during the period, mainly due to disposal of subsidiaries and disposals or expirations[29] - Accumulated depreciation increased by RMB 105,994,331.81 and decreased by RMB 200,269,856.07 during the period, mainly due to disposal of subsidiaries and disposals or expirations[29] 6. Intangible Assets As of June 30, 2025, the carrying value of intangible assets decreased by 9.38% to RMB 559,541,405.26, primarily due to disposal of subsidiaries, amortization, and disposals, with land use rights and franchise rights being the largest components Intangible Assets Carrying Value (RMB) | Item | June 30, 2025 Carrying Value | December 31, 2024 Carrying Value | | :--- | :--- | :--- | | Land Use Rights | 445,320,715.29 | 450,795,055.34 | | Software Use Rights | 30,281,788.32 | 33,056,369.77 | | Passenger Transport Licenses and Service Franchise Rights | 40,138,895.60 | 40,759,057.93 | | Bridge and Road Toll Rights and Operating Rights | 17,123,512.72 | 62,812,823.89 | | Comprehensive Operating Income Rights and Trademark Rights | 25,743,230.18 | 28,797,022.06 | | Other | 933,263.15 | 1,259,368.13 | | Total | 559,541,405.26 | 617,479,697.12 | - The original cost of intangible assets decreased by RMB 65,277,102.35 during the period, mainly due to disposal of subsidiaries and disposals[31] - Accumulated amortization increased by RMB 19,117,441.50 and decreased by RMB 23,701,821.49 during the period, mainly due to disposal of subsidiaries and disposals[31] 7. Short-term Borrowings As of June 30, 2025, total short-term borrowings decreased by 13.52% to RMB 318,699,750.02, with credit borrowings being the largest component, and some subsidiaries having overdue short-term borrowings totaling RMB 108,130,000.00 Classification of Short-term Borrowings (RMB) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Pledged Borrowings | 8,000,000.00 | 12,700,000.00 | (37.01%) | | Mortgaged Borrowings | 116,860,000.00 | 119,610,648.34 | (2.30%) | | Pledged and Mortgaged Borrowings | – | 7,600,000.00 | (100.00%) | | Pledged and Guaranteed Borrowings | 13,131,750.02 | 13,800,000.00 | (4.84%) | | Credit Borrowings | 180,708,000.00 | 214,839,500.00 | (15.89%) | | Total | 318,699,750.02 | 368,550,148.34 | (13.52%) | - As of June 30, 2025, subsidiaries Heyuan Yueyun Auto Transport Co., Ltd. and Shanwei Yueyun Auto Transport Co., Ltd. had overdue short-term borrowings totaling RMB 108,130,000.00[34] 8. Accounts Payable As of June 30, 2025, total accounts payable decreased by 2.32% to RMB 660,377,112.83, with construction progress payments and service area concession fees being significant, and a notable increase in accounts aged 1 to 2 years, including significant overdue construction payments Accounts Payable by Nature (RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Payables for Material Purchases | 84,503,811.42 | 82,001,906.93 | | Freight Payables | 62,405,691.02 | 62,736,080.67 | | Vehicle Purchase Payables | 38,976,100.92 | 42,833,590.92 | | Construction Progress Payments | 217,210,895.15 | 229,785,343.99 | | Service Area Concession Fees | 188,628,662.33 | 147,723,720.64 | | Transport Fuel Payables | 11,121,202.82 | 19,256,129.09 | | Labor Service Fees | 7,526,920.08 | 11,574,063.91 | | Other | 50,003,829.09 | 80,169,038.43 | | Total | 660,377,112.83 | 676,079,874.58 | Accounts Payable Ageing Analysis (RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year (inclusive) | 411,970,243.37 | 468,885,160.18 | | 1 to 2 years (inclusive) | 139,264,105.47 | 66,825,658.78 | | 2 to 3 years (inclusive) | 32,394,326.22 | 30,616,021.41 | | Over 3 years | 76,748,437.77 | 109,753,034.21 | | Total | 660,377,112.83 | 676,079,874.58 | Significant Accounts Payable Over One Year (RMB) | Item | June 30, 2025 | Reason for Unpaid or Carried Forward | | :--- | :--- | :--- | | Guangxi Construction Engineering Group First Construction Engineering Co., Ltd. | 19,366,972.49 | Construction payment unsettled | | Guangdong Wuhua Erjian Engineering Co., Ltd. | 12,853,284.24 | Construction payment unsettled | | Total | 32,220,256.73 | | 9. Non-current Liabilities Due Within One Year As of June 30, 2025, non-current liabilities due within one year significantly increased by 47.37% to RMB 745,410,537.00, primarily driven by a nearly threefold increase in long-term borrowings due within one year Non-current Liabilities Due Within One Year (RMB) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Long-term Borrowings Due Within One Year | 452,758,451.40 | 152,847,526.21 | 196.22% | | Long-term Payables Due Within One Year | 125,749,979.83 | 153,959,092.13 | (18.32%) | | Lease Liabilities Due Within One Year | 166,902,105.77 | 199,019,728.66 | (16.04%) | | Total | 745,410,537.00 | 505,826,347.00 | 47.37% | 10. Long-term Borrowings As of June 30, 2025, total long-term borrowings decreased by 3.19% to RMB 506,326,918.25, with credit borrowings being the largest component, and a significant increase in long-term borrowings due within one year, while those due after one year decreased substantially, with some subsidiaries having overdue long-term borrowings totaling RMB 76,578,533.29 Classification of Long-term Borrowings (RMB) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Credit Borrowings | 294,750,000.00 | 300,597,625.00 | (1.94%) | | Mortgaged Borrowings | 125,672,720.93 | 133,336,604.76 | (5.75%) | | Mortgaged and Guaranteed Borrowings | 41,431,898.64 | 41,941,817.27 | (1.22%) | | Pledged and Mortgaged Borrowings | 35,059,084.35 | 36,698,726.19 | (4.46%) | | Pledged, Mortgaged and Guaranteed Borrowings | 9,413,214.33 | 10,420,400.00 | (9.67%) | | Total | 506,326,918.25 | 522,995,173.22 | (3.19%) | | Less: Long-term Borrowings Due Within One Year | 452,758,451.40 | 152,847,526.21 | 196.22% | | Long-term Borrowings Due After One Year | 53,568,466.85 | 370,147,647.01 | (85.54%) | - As of June 30, 2025, subsidiaries Heyuan Yueyun Auto Transport Co., Ltd., Heyuan Yueyun Ludu Public Transport Co., Ltd., and Shanwei Yueyun Auto Transport Co., Ltd. had overdue long-term borrowings totaling RMB 76,578,533.29[40] 11. Lease Liabilities As of June 30, 2025, total lease liabilities decreased by 8.23% to RMB 2,448,723,181.92, with the majority of liabilities due after one year, primarily concentrated in those due in over five years Lease Liabilities (RMB) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Lease Liabilities | 2,448,723,181.92 | 2,668,599,543.21 | (8.23%) | | Less: Non-current Liabilities Due Within One Year | 166,902,105.77 | 199,019,728.66 | (16.04%) | | Lease Liabilities Due After One Year | 2,281,821,076.15 | 2,469,579,814.55 | (7.60%) | | Of which: Due After One Year but Within Two Years | 150,349,982.17 | 195,797,370.32 | (23.21%) | | Due After Two Years but Within Five Years | 443,006,752.00 | 494,543,273.19 | (10.42%) | | Due After Five Years | 1,688,464,341.98 | 1,779,239,171.04 | (5.09%) | 12. Retained Earnings As of June 30, 2025, retained earnings increased by 6.76% to RMB 1,070,688,184.77, primarily due to net profit attributable to parent company owners, partially offset by final dividends for prior years and other comprehensive income transferred to retained earnings Movement in Retained Earnings (RMB) | Item | January-June 2025 | January-June 2024 | | :--- | :--- | :--- | | Retained Earnings at Beginning of Year | 1,002,904,081.67 | 842,647,338.85 | | Add: Net Profit Attributable to Parent Company Owners for the Period | 142,643,705.10 | 138,669,235.05 | | Less: Final Dividends for Prior Years Approved and Declared for the Period | 71,986,302.00 | 63,987,824.00 | | Other Comprehensive Income Transferred to Retained Earnings | 2,835,598.67 | – | | Other | 37,701.33 | – | | Retained Earnings at End of Period | 1,070,688,184.77 | 917,328,749.90 | - The Company's final dividend of RMB 71,986,302.00 for the year ended December 31, 2024, approved at the Annual General Meeting on June 30, 2025, remains unpaid as of June 30, 2025[45] 13. Finance Costs For H1 2025, finance costs decreased by 5.94% year-on-year to RMB 71,021,328.79, mainly due to lower interest expense on borrowings and improved exchange gains, despite an increase in interest expense on lease liabilities Details of Finance Costs (RMB) | Item | January-June 2025 | January-June 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Interest Expense on Borrowings | 18,582,266.72 | 28,185,796.58 | (34.07%) | | Interest Income | (7,286,168.54) | (9,986,035.48) | (27.04%) | | Exchange Gains | (1,291,239.55) | (1,981,856.44) | (34.85%) | | Interest Expense on Lease Liabilities | 50,460,511.52 | 47,295,704.83 | 6.70% | | Other | 10,555,958.64 | 11,993,514.60 | (11.99%) | | Total | 71,021,328.79 | 75,507,124.09 | (5.94%) | 14. Other Income For H1 2025, other income significantly decreased by 38.62% year-on-year to RMB 89,415,971.27, primarily due to a substantial decline in government grants related to income (especially bus route operating subsidies) and a reduction in asset-related government grants Details of Other Income (RMB) | Item | January-June 2025 | January-June 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Government Grants Related to Assets | 25,494,983.18 | 33,477,761.90 | (23.84%) | | Government Grants Related to Income | 63,834,487.25 | 111,427,095.05 | (42.72%) | | VAT Reduction and Exemption | 86,500.84 | 743,925.50 | (88.37%) | | Total | 89,415,971.27 | 145,648,782.45 | (38.62%) | Government Grants Included in Other Income (RMB) | Grant Item | January-June 2025 | January-June 2024 | Asset-Related / Income-Related | | :--- | :--- | :--- | :--- | | Bus Route Operating Subsidies | 57,298,765.29 | 101,593,749.10 | Income-Related | | New Energy Vehicle Purchase Subsidies | 21,137,724.79 | 28,500,719.92 | Asset-Related | | Fixed Asset Renovation Subsidies | 3,192,099.74 | 3,444,137.87 | Asset-Related | 15. Investment Income For H1 2025, investment income significantly increased by 86.90% year-on-year to RMB 94,599,011.02, mainly driven by investment income from the disposal of subsidiaries, which rose from RMB 2,216,830.64 to RMB 55,713,441.19 Details of Investment Income (RMB) | Item | January-June 2025 | January-June 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Investment Income from Long-term Equity Investments Accounted for by Equity Method | 38,466,167.38 | 48,107,071.06 | (20.04%) | | Investment Income from Disposal of Subsidiaries | 55,713,441.19 | 2,216,830.64 | 2413.20% | | Other | 419,402.45 | 272,181.30 | 54.09% | | Total | 94,599,011.02 | 50,596,083.00 | 86.90% | 16. Credit Impairment Losses For H1 2025, credit impairment losses increased by 11.54% year-on-year to RMB 12,507,377.47, primarily due to an increase in bad debt losses on accounts receivable Details of Credit Impairment Losses (RMB) | Item | January-June 2025 | January-June 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Bad Debt Losses on Accounts Receivable | (9,252,325.56) | (5,913,485.27) | 56.49% | | Bad Debt Losses on Other Receivables | (3,255,051.91) | (5,300,458.92) | (38.60%) | | Total | (12,507,377.47) | (11,213,944.19) | 11.54% | 17. Asset Impairment Losses For H1 2025, asset impairment losses increased by 86.04% year-on-year to RMB 1,042,186.83, primarily due to increased impairment losses on long-term equity investments Details of Asset Impairment Losses (RMB) | Item | January-June 2025 | January-June 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Impairment Losses on Long-term Equity Investments | (1,042,186.83) | – | N/A | | Impairment Losses on Fixed Assets | – | (560,250.00) | (100.00%) | | Total | (1,042,186.83) | (560,250.00) | 86.04% | 18. Gains on Disposal of Assets For H1 2025, gains on disposal of assets slightly decreased by 1.63% year-on-year to RMB 6,334,016.13, primarily from gains on disposal of fixed assets Details of Gains on Disposal of Assets (RMB) | Item | January-June 2025 | January-June 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Gains on Disposal of Fixed Assets | 6,334,016.13 | 6,438,923.17 | (1.63%) | | Total | 6,334,016.13 | 6,438,923.17 | (1.63%) | 19. Non-operating Income For H1 2025, non-operating income decreased by 51.57% year-on-year to RMB 4,141,895.47, mainly due to a decline in other non-operating income and compensation, despite an increase in gains from disposal of non-current assets Details of Non-operating Income (RMB) | Item | January-June 2025 | January-June 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Gains from Disposal of Non-current Assets | 2,961,370.84 | 824,131.03 | 259.33% | | Government Grants | 2,000.00 | – | N/A | | Compensation | 52,372.02 | 885,037.43 | (94.08%) | | Other | 1,126,152.61 | 6,842,853.14 | (83.54%) | | Total | 4,141,895.47 | 8,552,021.60 | (51.57%) | 20. Income Tax Expense For H1 2025, income tax expense decreased by 25.69% year-on-year to RMB 41,205,377.44, primarily due to a decrease in current income tax expense and a shift to deferred income tax benefit Income Tax Expense (RMB) | Item | January-June 2025 | January-June 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Current Income Tax Expense | 60,924,373.21 | 66,020,290.22 | (7.69%) | | Deferred Income Tax Expense | (19,718,995.77) | (10,688,121.95) | 84.50% | | Total | 41,205,377.44 | 55,332,168.27 | (25.69%) | 21. Earnings Per Share For H1 2025, both basic and diluted earnings per share increased to RMB 0.18 from RMB 0.17 in the prior year, calculated based on consolidated net profit attributable to parent company ordinary shareholders and the weighted average number of ordinary shares outstanding Earnings Per Share Calculation (RMB/share) | Item | January-June 2025 | January-June 2024 | | :--- | :--- | :--- | | Consolidated Net Profit Attributable to Parent Company Ordinary Shareholders | 142,643,705.10 | 138,669,235.05 | | Weighted Average Number of Ordinary Shares Outstanding | 799,847,800.00 | 799,847,800.00 | | Basic Earnings Per Share (RMB/share) | 0.18 | 0.17 | | Diluted Earnings Per Share (RMB/share) | 0.18 | 0.17 | 22. Government Grants For H1 2025, total government grants significantly decreased year-on-year to RMB 70,070,297.90, with asset-related grants down 23.84% and income-related grants down 44.89%, mainly due to reduced fuel subsidies and bus route operating subsidies Asset-Related Government Grants (RMB) | Type | Amount Recognized in P&L or Offset Against Costs/Expenses for Jan-Jun 2025 | Amount Recognized in P&L or Offset Against Costs/Expenses for Jan-Jun 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Vehicle Renewal Subsidies | 4,597.55 | 75,746.19 | (93.93%) | | New Energy Vehicle Purchase Subsidies | 21,137,724.79 | 28,500,719.92 | (25.83%) | | Fixed Asset Renovation Subsidies | 3,192,099.74 | 3,444,137.87 | (7.32%) | | Vehicle Purchase Tax Subsidies | 141,843.96 | 212,765.94 | (33.43%) | | Other Asset-Related Subsidies | 1,018,717.14 | 1,244,391.98 | (18.13%) | | Total | 25,494,983.18 | 33,477,761.90 | (23.84%) | Income-Related Government Grants (RMB) | Type | Amount Recognized in P&L or Offset Against Costs/Expenses for Jan-Jun 2025 | Amount Recognized in P&L or Offset Against Costs/Expenses for Jan-Jun 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Fuel Subsidies | 6,233,810.65 | 15,388,330.77 | (59.49%) | | Bus Route Operating Subsidies | 57,298,765.29 | 101,593,749.10 | (43.60%) | | Elderly Card Discount Bus Fare Subsidies | 3,931,173.53 | 4,576,165.74 | (14.09%) | | Other Subsidies | 2,604,548.43 | 5,257,180.21 | (50.46%) | | Other Subsidies (Non-operating Income) | 2,000.00 | – | N/A | | Total | 70,070,297.90 | 126,815,425.82 | (44.89%) | 23. Net Current Liabilities As of June 30, 2025, net current liabilities significantly worsened to RMB (234,644,675.29) from RMB (58,879,510.00) as of December 31, 2024, indicating increased liquidity pressure Net Current Liabilities (RMB) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Current Assets | 2,706,704,677.29 | 2,666,605,098.63 | 1.50% | | Less: Current Liabilities | 2,941,349,352.58 | 2,725,484,608.63 | 7.92% | | Net Current Liabilities | (234,644,675.29) | (58,879,510.00) | 298.52% | 24. Total Assets Less Current Liabilities As of June 30, 2025, total assets less current liabilities decreased by 8.32% to RMB 5,499,391,720.10, reflecting a decline in total assets and an increase in current liabilities Total Assets Less Current Liabilities (RMB) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 8,440,741,072.68 | 8,724,059,777.83 | (3.25%) | | Less: Current Liabilities | 2,941,349,352.58 | 2,725,484,608.63 | 7.92% | | Total Assets Less Current Liabilities | 5,499,391,720.10 | 5,998,575,169.20 | (8.32%) | 25. Leases For H1 2025, as a lessee, interest expense on lease liabilities, short-term lease expenses, and variable lease payments all increased, while as a lessor, operating lease income slightly decreased, but future undiscounted lease receivables remained high Lease-Related Expenses as Lessee (RMB) | Item | January-June 2025 | January-June 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Interest Expense on Lease Liabilities | 50,460,511.52 | 47,295,704.83 | 6.70% | | Short-term Lease Expenses (Simplified Treatment) | 34,501,516.01 | 3,321,580.13 | 938.70% | | Variable Lease Payments Not Included in Lease Liabilities Measurement | 12,048,005.63 | 5,132,407.74 | 134.75% | | Income from Subleasing Right-of-Use Assets | 216,671,650.56 | 245,101,426.32 | (11.52%) | | Total Cash Outflow Related to Leases | 177,358,838.77 | 127,844,152.21 | 38.73% | Operating Lease Income and Future Receivables as Lessor (RMB) | Item | January-June 2025 | January-June 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Operating Lease Income | 239,553,662.27 | 262,724,080.66 | (8.82%) | | Remaining Lease Term (Within 1 year) | 390,587,722.38 | 466,167,281.03 | (16.22%) | | Remaining Lease Term (Total) | 2,160,164,777.80 | 2,439,919,151.86 | (11.47%) | 26. Segment Information The Group operates in three segments: highway service area operations, road passenger transport and related services, and Taiping Interchange operations and other businesses; in H1 2025, highway service area operations were the primary source of revenue and profit, with revenue up 14% and operating profit at RMB 152,247 thousand, while road passenger transport and Taiping Interchange operations saw declines H1 2025 Reported Segment Performance (RMB) | Item | Highway Service Area Operations | Road Passenger Transport and Related Services | Taiping Interchange Operations and Other Businesses | Inter-segment Eliminations | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,992,593,473.23 | 727,786,156.29 | 55,349,807.67 | (5,701,354.65) | 3,770,028,082.54 | | Operating Costs | 2,713,675,090.85 | 733,779,983.17 | 20,646,690.24 | (3,924,560.50) | 3,464,177,203.76 | | Operating Profit | 152,246,721.58 | (9,984,588.24) | 34,589,168.44 | (1,048,893.83) | 175,802,407.95 | As of June 30, 2025, Reported Segment Assets and Liabilities (RMB) | Item | Highway Service Area Operations | Road Passenger Transport and Related Services | Taiping Interchange Operations and Other Businesses | Inter-segment Eliminations | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 4,564,007,434.66 | 3,324,008,757.66 | 3,061,552,497.18 | (2,508,827,616.82) | 8,440,741,072.68 | | Total Liabilities | 3,430,495,670.97 | 2,096,753,957.36 | 1,218,498,244.66 | (974,166,730.38) | 5,771,581,142.61 | Management Discussion and Analysis This section reviews the Group's H1 2025 business performance across core segments, analyzes financial results including revenue, gross profit, expenses, and investment income, discusses liquidity, capital structure, significant investments, and outlines H2 2025 development priorities and funding, emphasizing new energy and strategic emerging industries Business Review In H1 2025, the Group, centered on highway travel services, achieved significant progress in energy, retail, investment promotion, advertising, and highway rescue through innovation and refined management, while steadily exiting road passenger transport, demonstrating stable and improving operations - The Group, focusing on highway travel services, has made significant progress in its diversified business segments including energy, retail, investment promotion, advertising, and highway rescue, driven by industry trends and reforms[59] - The exit from road passenger transport business is progressing steadily as planned, and the Group's overall operations show a positive trend of stability, progress, and improved quality and efficiency[59] I. Highway Service Area Operations Highway service area operations, the Group's core business, made positive strides in H1 in energy, retail, investment promotion, and advertising, expanding networks, enhancing efficiency, optimizing operations, and strengthening brand influence 1. Energy Business The energy business continued to strengthen, with 230 operating right gas stations (110 self-operated) and 338 service areas with charging stations (1,576 charging piles) by June 30, 2025, enhancing operational efficiency and market influence through standardized management, network expansion, fuel supply assurance, and marketing Energy Business Network Scale (As of June 30, 2025) | Item | Quantity | | :--- | :--- | | Operating Right Gas Stations | 230 | | Operating Gas Stations | 220 | | Self-operated Gas Stations | 110 | | Cooperatively Operated Gas Stations | 12 | | Contracted-out Gas Stations | 98 | | Service Areas with Charging Stations | 338 | | Number of Charging Piles | 1,576 | | Battery Swapping Stations | 10 | | CNG/LPG Stations | 4 | | Photovoltaic Deployment Points | 1 | - Standardized management is being promoted, with operational guidelines developed and specialized training conducted to comprehensively enhance gas station operational efficiency[60] - The gas station network layout has been expanded, successfully completing the operation of 3 new self-operated gas stations in Xiaolan and Chengnan, and the recovery of the Lankou gas station[60] - Fuel supply assurance management has been strengthened, deepening collaboration with suppliers and deploying in advance for holidays to ensure stable supply across the entire chain[61] - Marketing planning and promotion are being intensified, leveraging big data analysis to build customer profiles and implement differentiated strategies, thereby enhancing brand value and customer loyalty[61] 2. Retail Business The retail business actively upgraded, with 526 Leyi convenience stores by June 30, 2025, expanding product categories to 3,673, optimizing selection and procurement, and supporting rural revitalization through a dual-channel consumption assistance system - As of June 30, 2025, the total number of Leyi convenience stores reached 526[61] - "One store, one policy" refined operations are implemented, driving the opening of 8 new stores, increasing product categories to 3,673, and planning multiple themed promotional activities[62] - The selection and investment promotion model has been optimized, completing 3 specialized investment promotions that introduced over 170 products, effectively reducing procurement prices year-on-year, and securing exclusive authorization for two brands[62] - Focusing on market demand, new categories such as children's toys and pet supplies have been introduced, creating a "retail + lifestyle services" composite consumption scenario, and developing private label products[62] - Supporting the rural revitalization strategy, local specialty stores have been established in 57 key service areas, and rural revitalization counters in 211 self-operated "Leyi" convenience stores, achieving "dual-channel linkage"[63] 3. Investment Promotion Business The investment promotion business actively built a new operating system, with 387 service areas under operating rights (365 in operation) by June 30, 2025, enhancing comprehensive competitiveness and service quality through expanding self-operated projects, implementing unified cashier systems, developing commercial plans, and strengthening operational management - As of June 30, 2025, the number of service areas with operating rights reached 387, with 365 service areas in operation[64] - The layout of self-operated projects is expanding, with KFC stores in Changshawan and Waxi successfully opened, and the first self-operated food store currently in preparation[64] - A unified cashier system is being implemented, with pilot programs launched in 10 pairs of service areas, and a merchant digital management system being built to enhance management efficiency[64] - Commercial investment promotion plans are being developed, deepening commercial planning and investment promotion layout for service areas, and creating "five-excellence" characteristic service areas and farmer-supporting service areas[66] - Commercial operation management is being strengthened, with specialized supervision, inspection, and rectification work carried out for auto repair and food safety businesses to maintain good operating order[66] 4. Advertising Business The advertising business focused on digital transformation, upgrading resource management, and expanding new media promotion, holding operating rights for 79 highway advertisements with 536 resources by June 30, 2025, enhancing efficiency through direct sales and innovative resource promotion - As of June 30, 2025, the Company holds operating rights for 79 highway advertisements, with 536 resources[65] - Efforts are focused on developing direct sales business, targeting key industries such as tourism, liquor, and regional consumer brands to expand customer base and customize personalized advertising service solutions[65] - Innovative resource promotion models are being explored in event planning, visual design, and emerging business areas, effectively promoting diversified business synergy[67] II. Road Passenger Transport and Related Services The Group is steadily exiting road passenger transport to mitigate market impact, completing several equity transfers and divestments in H1, while highway rescue operations focus on improving service quality and efficiency through digital technology and training 1. Road Passenger Transport Business Facing competition, the Group strategically adjusted to gradually exit passenger transport, completing equity transfers for Zhuhai Gongyun and divesting controlling stakes in Guangzhou Yueyun and Guangzhou Zengcheng, while actively disposing of assets, relocating personnel, and controlling costs - The Company has decisively implemented strategic adjustments, following the principle of "from easy to difficult, categorized and segmented," to gradually exit the passenger transport business[68] - In the first half of the year, the equity transfer of Zhuhai Gongyun Auto Passenger Transport Station Co., Ltd. was successfully completed, along with the divestment of controlling stakes in Guangzhou Yueyun Auto Transport Co., Ltd. and Guangzhou Zengcheng Auto Passenger Transport Station Co., Ltd[68] - Multiple measures are actively being taken, including efficient asset disposal to recover funds, reasonable personnel relocation, strengthening cost control, and seeking government support[68] 2. Highway Rescue Business Highway rescue operations, centered on customer service, focused on improving quality and efficiency, covering over 7,500 km across 84 road sections by June 30, 2025, continuously enhancing clearance and rescue capabilities through a "monitoring-warning-disposal-improvement" system, intelligent dispatch, and digital platform development - As of June 30, 2025, the Company's highway vehicle rescue service covers over 7,500 kilometers across 84 road sections, with 213 rescue stations and 745 various rescue equipment units[68] - Adhering to a customer-centric approach, rescue service quality and efficiency are enhanced through regular verification of operation videos and an intelligent dispatch system[70] - The "Digital Rescue" platform construction is continuously improved, adding functions such as rescue data statistics and analysis, rescue plan recommendations, and organizing various training and rating assessments to enhance clearance and rescue capabilities[70] III. Taiping Interchange Operations Taiping Interchange operations maintained operational management and maintenance, with cumulative toll traffic of approximately 14.62 million vehicles by June 30, 2025, a 25% year-on-year decrease due to diversion by Shenzhen-Zhongshan Link, while ensuring safety through ongoing maintenance plans - As of June 30, 2025, cumulative toll traffic was approximately 14.62 million vehicles, with a daily average of approximately 81,200 vehicles, a year-on-year decrease of approximately 25%[71] - The decrease in traffic volume is mainly due to the diversion effect of the Shenzhen-Zhongshan Link[71] - Maintenance and repair plans are continuously implemented, with regular inspections and maintenance of bridges, road surfaces, electromechanical systems, toll systems, communication systems, and monitoring systems[71] Period Performance Analysis In H1 2025, the Group's operating revenue increased by 3% year-on-year, driven by highway service area operations, but gross profit decreased by 19% with a lower gross margin due to refined oil price adjustments, new energy vehicle impact, and increased service area costs, while net profit attributable to parent company shareholders increased by 3% due to investment gains from transport business divestment and reduced management expenses - The Group's operating revenue increased by 3% year-on-year, primarily due to the Company's active focus on deepening reforms in highway travel services and the year-on-year increase in revenue from highway service area operations[72] - Gross profit decreased by 19% year-on-year, mainly due to adjustments in refined oil prices, changes in international oil prices, the continuous rise in new energy vehicle numbers impacting fuel sales, and increased costs resulting from the expansion of service area scale[72] - Net profit attributable to parent company shareholders increased by 3% year-on-year, primarily due to increased investment income from the disposal of subsidiaries as part of the transport business exit and a corresponding reduction in administrative expenses[72] Operating Revenue 2025年上半年集團營業收入為人民幣3,770,028千元，同比增長3%。高速公路服務區經營業務收入增長14%，佔總收入的79%，是主要增長動力。道路客運及配套業務收入減少26%，太平立交運營及其他業務收入減少24%，主要受業務退出和深中通道分流影響 Operating Revenue by Business Segment (RMB '000) | Business Category | For the Six Months Ended June 30, 2025 | Percentage (%) | For the Six Months Ended June 30, 2024 | Percentage (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Highway Service Area Operations | 2,991,062 | 79% | 2,621,531 | 71% | 14% | | Road Passenger Transport and Related Services | 723,616 | 19% | 980,218 | 27% | (26%) | | Taiping Interchange Operations and Other Businesses | 55,350 | 2% | 72,914 | 2% | (24%) | | Total | 3,770,028 | 100% | 3,674,663 | 100% | 3% | - Revenue from highway service area operations increased by 14% year-on-year, mainly due to the expansion of self-operated gas stations and increased sales volume[75][78] - Revenue from road passenger transport and related services decreased by 26% year-on-year, primarily due to the gradual exit from the passenger transport business[75] - Revenue from Taiping Interchange operations and other businesses decreased by 24% year-on-year, mainly due to the impact of the Shenzhen-Zhongshan Link diversion, which led to a year-on-year decrease in traffic volume[76] Gross Profit In H1 2025, the Group's gross profit decreased by 19% year-on-year to RMB 305,851 thousand, with the gross profit margin falling to 8.11%, primarily due to reduced gross profit in highway service area operations (17% decrease) and increased gross loss in road passenger transport (13% increase), while advertising gross profit significantly increased by 49% Gross Profit by Business Segment (RMB '000) | Business Category | For the Six Months Ended June 30, 2025 | Percentage (%) | For the Six Months Ended June 30, 2024 | Percentage (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Highway Service Area Operations | 280,840 | 92% | 336,662 | 89% | (17%) | | Road Passenger Transport and Related Services | (20,707) | (7%) | (18,295) | (5%) | 13% | | Taiping Interchange Operations and Other Businesses | 45,718 | 15% | 60,768 | 16% | (25%) | | Total | 305,851 | 100% | 379,135 | 100% | (19%) | - Gross profit from energy business decreased by 15%, with a gross profit margin of 9%, mainly due to adjustments in refined oil prices, lower comprehensive oil product selling prices, and increased costs associated with scale expansion[80] - Gross profit from retail business decreased by 12%, with a gross profit margin of 15%, primarily due to the impact of the "Hundred, Thousand, Ten Thousand Project" micro-renovation and the Shenzhen-Zhongshan Link diversion[80] - Gross loss from investment promotion business increased by 726%, with a gross loss margin of 8%, mainly due to reduced shop occupancy rates affected by the "Hundred, Thousand, Ten Thousand Project" micro-renovation, and increased upfront investment costs from expanding service area scale[80] - Gross profit from advertising business increased by 49%, with a gross profit margin of 47%, primarily due to reduced costs[80] - Gross loss from road passenger transport and related services increased by 13%, with a gross loss margin of 3%, mainly due to increased highway rescue service costs from undertaking new routes and expanding standby personnel[81] - Gross profit from Taiping Interchange operations and other businesses decreased by 25%, with a gross profit margin of 83%, primarily due to reduced revenue affected by traffic volume[82] Administrative and R&D Expenses In H1 2025, administrative and R&D expenses totaled RMB 198,394 thousand, a 21% year-on-year decrease, primarily due to the steady exit from transport businesses and effective cost control - Administrative and R&D expenses totaled RMB 198,394 thousand, a 21% decrease compared to the same period in 2024[83] - The decrease is mainly due to the steady exit from the transport business and effective cost control[83] Finance Costs In H1 2025, finance costs were RMB 71,021 thousand, a 6% year-on-year decrease, mainly attributed to effectively reducing the scale of interest-bearing debt - Finance costs were RMB 71,021 thousand, a 6% decrease compared to the same period in 2024[84] - The decrease is mainly due to effectively reducing the scale of interest-bearing debt[84] Other Income In H1 2025, other income was RMB 89,416 thousand, a 39% year-on-year decrease, primarily due to a reduction in government grants following the exit from transport businesses - Other income was RMB 89,416 thousand, a 39% decrease compared to the same period in 2024[85] - The decrease is mainly due to a year-on-year reduction in government grants following the exit from the transport business[85] Investment Income In H1 2025, investment income significantly increased by 87% year-on-year to RMB 94,599 thousand, mainly due to increased gains from the disposal of passenger transport subsidiaries - Investment income was RMB 94,599 thousand, an 87% increase compared to the same period in 2024[86] - The increase is mainly due to increased gains from the disposal of passenger transport subsidiaries during the period[86] Credit Impairment Losses In H1 2025, credit impairment losses increased by 12% year-on-year to RMB 12,507 thousand, primarily due to increased bad debt provisions for accounts receivable based on ageing ratios - Credit impairment losses were RMB 12,507 thousand, a 12% increase compared to the same period in 2024[87] - The increase is mainly due to increased bad debt provisions for accounts receivable based on higher ageing ratios[87] Asset Impairment Losses In H1 2025, asset impairment losses increased by 86% year-on-year to RMB 1,042 thousand, primarily due to increased impairment provisions for joint ventures - Asset impairment losses were RMB 1,042 thousand, an 86% increase compared to the same period in 2024[88] - The increase is mainly due to increased impairment provisions for joint ventures during the period[88] Gains on Disposal of Assets In H1 2025, gains on disposal of assets slightly decreased by 2% year-on-year to RMB 6,334 thousand - Gains on disposal of assets were RMB 6,334 thousand, a 2% decrease compared to the same period in 2024[89] Non-operating Income and Expenses In H1 2025, net non-operating expenses were RMB 183 thousand, a 116% year-on-year decrease in net income compared to a net income of RMB 1,182 thousand in the prior year, mainly due to service area closure compensation income in the previous year - Net non-operating expenses were RMB 183 thousand, representing a 116% year-on-year decrease in net income compared to a net income of RMB 1,182 thousand in the same period of 2024[90] - The decrease is mainly due to service area closure compensation income in the prior year[90] Working Capital and Capital Structure The Group maintains prudent financial management with strict budget control, possessing sufficient available credit of RMB 4,813,890 thousand as of June 30, 2025, showing an improved net cash position, decreased operating cash flow, increased investment cash outflow, and increased financing cash outflow - The Group implements prudent financial management policies and exercises strict budget control over fund utilization[91] - As of June 30, 2025, the available credit lines from banks and other financial institutions totaled RMB 4,813,890 thousand, providing ample assurance for the Group's operating loans[91] Financial Position As of June 30, 2025, the Group's net debt improved to a net cash position of RMB (573,933) thousand, total liabilities decreased by 5.7%, and the asset-liability ratio improved to 68.38% Key Financial Position Indicators (RMB '000) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Borrowings (Banks and Other Financial Institutions) | 973,597 | 1,183,416 | (17.7%) | | Less: Cash and Cash Equivalents | 1,547,530 | 1,425,057 | 8.6% | | Net Debt | (573,933) | (241,641) | (137.5%) | | Total Liabilities | 5,771,581 | 6,118,199 | (5.7%) | | Total Shareholders' Equity | 2,669,160 | 2,605,861 | 2.4% | | Total Capital | 2,095,227 | 2,364,220 | (11.4%) | | Total Assets | 8,440,741 | 8,724,060 | (3.2%) | | Capital Gearing Ratio | (27.39%) | (10.22%) | (168.0%) | | Asset-Liability Ratio | 68.38% | 70.13% | (2.5%) | Cash Flow from Operating Activities In H1 2025, net cash inflow from operating activities decreased by 30.2% year-on-year to RMB 434,928 thousand, primarily due to increased oil procurement costs and payments for goods and services in the service area segment Cash Flow from Operating Activities (RMB '000) | Item | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | Change (RMB '000) | | :--- | :--- | :--- | :--- | | Operating Activities | 434,928 | 623,201 | (188,273) | - Net cash inflow from operating activities decreased by RMB 188,273 thousand year-on-year, mainly due to increased oil procurement costs in the service area segment and a year-on-year increase in cash paid for goods and services[94] Cash Flow from Investing Activities In H1 2025, net cash outflow from investing activities was RMB 64,302 thousand, a net outflow increase of RMB 68,929 thousand compared to a net inflow in the prior year, mainly due to increased capital expenditure for service area business enhancements Cash Flow from Investing Activities (RMB '000) | Item | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | Change (RMB '000) | | :--- | :--- | :--- | :--- | | Investing Activities | (64,302) | 4,627 | (68,929) | - The net outflow increased by RMB 68,929 thousand, mainly due to increased capital expenditure for the construction of long-term assets to enhance service area operations[95] Cash Flow from Financing Activities In H1 2025, net cash outflow from financing activities increased by RMB 23,265 thousand year-on-year to RMB 247,241 thousand Cash Flow from Financing Activities (RMB '000) | Item | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | Change (RMB '000) | | :--- | :--- | :--- | :--- | | Financing Activities | (247,241) | (223,976) | (23,265) | - The net outflow increased by RMB 23,265 thousand[96] Borrowings As of June 30, 2025, the Group's total outstanding borrowings decreased by 17.7% to RMB 973,597 thousand, with diverse types of borrowings and approximately 25% at fixed interest rates, and the Board believes overdue loans from some subsidiaries have limited impact on overall operations - As of June 30, 2025, the Group's outstanding borrowings totaled RMB 973,597 thousand, a 17.7% decrease compared to December 31, 2024[97] - Borrowings include unsecured short-term loans, secured short-term loans, pledged short-term loans, unsecured long-term loans, pledged long-term loans, and finance lease payables[97] - Approximately 25% of the borrowings are at fixed interest rates[97] - Despite some subsidiaries having overdue short-term and long-term loans, the Board believes the impact on the Group's overall business operations is limited[97] Significant Investments, Acquisitions, Disposals, and Establishment of New Companies During the reporting period, the Company did not undertake any significant acquisitions, disposals, establishment of subsidiaries, associates, or joint ventures, or major investments - During the reporting period, the Company did not undertake any significant acquisitions, disposals, establishment of subsidiaries, associates, or joint ventures, or major investments[99] Principal Properties Held for Investment The Group holds several properties for investment purposes, primarily for operating leases, including commercial centers, offices, and ground-floor shops in Hong Kong, and driver apartments and passenger transport center buildings in mainland China, with most lease agreements being short-term (under 10 years) except for one long-term lease Principal Properties Held for Investment | Property Name | Address | Purpose | Lease Contract Type | | :--- | :--- | :--- | :--- | | Hong Kong Commercial Centre | Units 13-14, 24/F, Hong Kong Commercial Centre, 188 Connaught Road West, Sai Wan, Hong Kong | Operating Lease | Short-term Lease (within 10 years) | | Office Unit 2, 1/F, Wai King Court, 65-75 Wui Ching Street, Jordan, Kowloon | Office Unit 2, 1/F, Wai King Court, 65, 67, 69, 71, 73, 75 Wui Ching Street, Jordan, Kowloon, Hong Kong | Operating Lease | Short-term Lease (within 10 years) | | Ground Floor Shop, Hang On Building, 159A Sai Yeung Choi Street North, Mong Kok, Kowloon | Ground Floor Shop, Hang On Building, 159A Sai Yeung Choi Street North, Mong Kok, Kowloon | Operating Lease | Short-term Lease (within 10 years) | | Driver Apartments | Intersection of Fuqian West Road and Huancheng Road, Qujiang District, Shaoguan City | Operating Lease | Short-term Lease (within 10 years) | | Lianzhou Passenger Transport Center Building | No. 136 Beihu Road, Lianzhou City | Operating Lease | Short-term Lease (within 10 years) | | Danxiashan Auto Passenger Transport Station Comprehensive Building | Danxiashan Auto Passenger Transport Station Comprehensive Building | Operating Lease | Long-term Lease (over 10 years) | Pledged Assets As of June 30, 2025, fixed assets with a net value of approximately RMB 146,740 thousand, land use rights of RMB 56,695 thousand, and investment properties of RMB 164,681 thousand were pledged as collateral for borrowings and long-term payables - As of June 30, 2025, fixed assets with a net value of approximately RMB 146,740 thousand and land use rights with a net value of approximately RMB 56,695 thousand were pledged as collateral for borrowings and long-term payables[101] - As of June 30, 2025, investment properties with a net value of approximately RMB 164,681 thousand were pledged as collateral for borrowings[101] Foreign Exchange Risk Except for cross-border transport service income and expenses, the Group's majority of income and expenses are settled or denominated in RMB, resulting in minimal impact from foreign exchange fluctuations on operations and liquidity in H1 2025, and the Directors believe the Group has sufficient foreign currency to meet its needs - The majority of the Group's income and expenses are settled or denominated in RMB, so the impact of foreign exchange fluctuations on operations and liquidity in H1 2025 was minimal[102] - The Directors believe that the Group will have sufficient foreign currency to meet its needs and will continue to closely monitor RMB exchange rate fluctuations[102] Contingent Liabilities As of June 30, 2025, there were no significant contingent liabilities - As of June 30, 2025, there were no significant contingent liabilities[103] H2 2025 Business Development Priorities In H2 2025, the Group will focus on expanding and upgrading highway service area operations (energy, retail, investment promotion, advertising), steadily exiting road passenger transport, innovating highway vehicle rescue, and strategically developing emerging industries like "Yueyun Changxing Industrial Park" and "low-altitude economy" to support high-quality growth I. Highway Service Area Operations In H2, highway service area operations will remain a development priority, with the energy business expanding traditional energy and accelerating new energy deployment, retail business advancing store upgrades and online-offline integration, investment promotion innovating models and enhancing commercial space value, and advertising focusing on direct sales and digital transformation for overall quality and efficiency improvement 1. Energy Business The energy business plans to open 12 new self-operated gas stations and reclaim 10 in H2, strengthening cooperation with central SOEs, implementing lean management, accelerating reclaimed station renovations, optimizing fuel supply chains, and expediting new energy initiatives including a new energy subsidiary, integrated solar-storage-charging projects, and a digital energy management platform - Plans include building 12 new self-operated gas stations and reclaiming 10 self-operated gas stations to expand the terminal sales scale of gas stations[104] - Deepened cooperation with central state-owned enterprises in fuel supply and sales will be strengthened to establish long-term stable strategic partnerships[104] - Lean management will be promoted, strictly implementing standardized management operating guidelines to enhance management efficiency[104] - The renovation of reclaimed gas stations will be accelerated, ensuring legal and compliant recovery processes and implementing standardized renovations to strive for "early completion, early operation, and early revenue"[105] - The fuel supply chain management system will be optimized, strengthening coordination with suppliers and formulating refined emergency plans to ensure adequate fuel supply[105] - The implementation of new energy businesses will be accelerated, establishing a new energy subsidiary, advancing the integrated solar-storage-charging project in Daihu Service Area, planning to build photovoltaic power generation systems in 45 pairs of service areas, and developing a digital energy comprehensive management platform[105] 2. Retail Business The retail business plans to open 13 new stores and upgrade 16 in H2, enhancing store image and service standards, expanding online and offline sales channels, innovating investment promotion strategies, optimizing supply chain management, conducting precise marketing, and deepening rural revitalization support - Store scale will be steadily expanded, with 13 new stores planned for opening and 16 stores undergoing comprehensive upgrade and renovation to optimize store visual image and service standards[106] - Investment in proprietary brand product R&D will be increased, focusing on developing characteristic products for high-frequency consumer demand scenarios, and advancing the opening and operation of self-operated local specialty stores as planned[106] - Online Leyi Mall sales channels will be accelerated, a professional e-commerce oper