东莞控股(000828) - 2025 Q2 - 季度财报

Important Notes, Table of Contents, and Definitions Important Notes The company's management guarantees the authenticity and completeness of the report and has approved a semi-annual profit distribution plan - The Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the report and assume legal responsibility[4] - Forward-looking statements in the report do not constitute profit forecasts and are subject to uncertainties, so investors should be aware of the risks[5] Profit Distribution Plan | Item | Details | | :--- | :--- | | Distribution Base | 1,039,516,992 shares | | Cash Dividend per 10 Shares | 1.5 Yuan (tax inclusive) | | Bonus Shares per 10 Shares | 0 shares (tax inclusive) | | Capitalization of Capital Reserve | No capitalization | Table of Contents This section lists the nine main chapters of the report and their corresponding page numbers, providing navigation for investors - The report comprises nine main sections, covering important notes, company profile, MD&A, governance, significant events, share changes, bonds, financial reports, and other data[7] List of Documents for Inspection This section specifies the types and storage location of the company's inspection documents during the reporting period - Documents available for inspection include signed financial statements, original public disclosures, and the original semi-annual report signed by the Chairman[9][10][11] - All inspection documents are complete and stored at the Investment Securities Department at the company's headquarters[12] Definitions This section provides definitions for commonly used terms in the report to ensure clear understanding of the content - "The Company" or "Dongguan Holding" refers to Dongguan Development (Holdings) Co, Ltd[13] - Key subsidiaries (e.g, JinXin Capital, DongNeng Company, Rongtong Leasing, Hongtong Factoring) and associate companies (e.g, Humen Bridge Company, Dongguan Securities) are defined[13] - The start and end points and lengths of major expressway sections (e.g, Guanshen Expressway, Longlin Expressway, Huichang Expressway Dongguan Section) are explained[13] Company Profile and Key Financial Indicators Company Profile This section presents the company's basic identification information, including stock ticker, listing exchange, and legal representative Company Basic Information | Item | Details | | :--- | :--- | | Stock Ticker | Dongguan Holding | | Stock Code | 000828 | | Listing Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | 东莞发展控股股份有限公司 | | Legal Representative | Wang Chong'en | Contacts and Contact Methods This section provides contact details for the company's Board Secretary and Securities Affairs Representative for investor communication Board Secretary and Securities Affairs Representative Contact Information | Position | Name | Contact Address | Telephone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Lin Yongsen | 38/F, Rail Transit Building, Nancheng Street, Dongguan, Guangdong | 0769-88999292 | 0769-88999292 | lys@dgholdings.cn | | Securities Affairs Representative | Zhou Xiaomin | 38/F, Rail Transit Building, Nancheng Street, Dongguan, Guangdong | 0769-88999292 | 0769-88999292 | zxm@dgholdings.cn | Other Information This section states that the company's contact information, disclosure channels, and document storage locations remained unchanged during the reporting period - The company's registered address, office address, website, and email address remained unchanged during the reporting period[17] - Information disclosure websites, media names, and report storage locations remained unchanged during the reporting period[18] Key Accounting Data and Financial Indicators The company's semi-annual financial data shows decreased revenue but significant growth in net profits and a substantial turnaround in operating cash flow Key Accounting Data and Financial Indicators (H1 2025 vs Prior Year Period/End) | Indicator | Current Period/End (Yuan) | Prior Year Period/End (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 765,647,980.25 | 837,423,242.33 | -8.57% | | Net Profit Attributable to Shareholders | 532,409,012.90 | 441,794,650.99 | 20.51% | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) | 528,652,008.67 | 317,964,893.04 | 66.26% | | Net Cash Flow from Operating Activities | 931,196,200.85 | -400,097,300.88 | 332.74% | | Basic Earnings Per Share (Yuan/share) | 0.5122 | 0.4149 | 23.45% | | Diluted Earnings Per Share (Yuan/share) | 0.5122 | 0.4149 | 23.45% | | Weighted Average Return on Equity | 5.33% | 4.54% | 0.79% | | Total Assets | 16,128,106,498.58 | 17,369,370,373.16 | -7.15% | | Net Assets Attributable to Shareholders | 10,028,369,755.99 | 9,836,596,276.60 | 1.95% | Differences in Accounting Data under Domestic and Foreign Accounting Standards The company reports no discrepancies in net profit or net assets between Chinese accounting standards and international or foreign accounting standards - There were no differences in net profit or net assets under domestic and foreign accounting standards during the reporting period[21][22] Non-recurring Profit and Loss Items and Amounts This section lists non-recurring profit and loss items for the period, totaling RMB 3,757,004.23 Non-recurring Profit and Loss Items and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 931,172.76 | | Government Grants Recognized in Current Profit/Loss (excluding those closely related to normal business operations) | 4,945,576.36 | | Fair Value Gains/Losses from Financial Assets/Liabilities Held by Non-financial Enterprises | -1,219,348.08 | | Other Non-operating Income and Expenses | 2,603,765.48 | | Less: Income Tax Impact | 1,277,314.53 | | Minority Interest Impact (after tax) | 2,226,847.76 | | Total | 3,757,004.23 | - The company did not reclassify any non-recurring profit and loss items as recurring[25] Management Discussion and Analysis Principal Business Activities During the Reporting Period The company's core businesses span expressway operations, EV charging services, and financial investments, with varied performance across segments - The company's core businesses focus on expressway operation management, new energy vehicle charging services, and financial investment[27] H1 2025 Key Financial and Business Data | Indicator | Amount (hundred million Yuan) | YoY Change | Key Reason | | :--- | :--- | :--- | :--- | | Operating Revenue | 7.66 | -8.57% | Decrease in the scale of quasi-financial business | | Net Profit Attributable to Parent | 5.32 | +20.51% | Reversal of bad debt provision for Dongguan Trust equity disposal proceeds | | Total Assets | 161.28 | -7.15% | Reduction in loan scale | | Net Assets Attributable to Parent | 100.28 | +1.95% | - | Operating Revenue Composition | Business Type | Revenue Share | | :--- | :--- | | Expressway Toll Fees | 81.86% | | Finance Leasing and Commercial Factoring | 10.60% | | New Energy Vehicle Charging | 5.45% | Expressway Operation and Management The company operates two expressways and is undertaking a major reconstruction and expansion project to extend their operational life - The company operates the Guanshen and Longlin Expressways, totaling 55.66 km, with toll rights until June 30, 2027[29] - The Guanshen Expressway reconstruction project has commenced, with a cumulative investment of RMB 3.536 billion, and is expected to be completed by December 2028[29] Guanshen Expressway H1 2025 Operational Data | Indicator | H1 2025 | YoY Change | | :--- | :--- | :--- | | Mixed Traffic Volume | 60.0858 million vehicles | -0.26% | | Toll Revenue | 627 million Yuan | -0.37% | New Energy Vehicle Charging Business The EV charging business is expanding its network with a focus on supercharging stations, though it remains in a development phase with narrowing losses - As of the end of June, the company operated 148 charging stations with over 540,000 users[31] - 40 supercharging stations have been deployed in key districts like Nancheng, Dongcheng, and Houjie[31] - The new energy vehicle charging business recorded a net loss of RMB 15.0387 million, a 9.93% reduction year-on-year[31] Financial Investment Business The financial investment segment includes leasing, factoring, and investment management, showing positive profit contributions and strategic equity increases - Finance leasing and commercial factoring services are provided by subsidiaries Rongtong Leasing and Hongtong Factoring[32] Finance Leasing and Commercial Factoring Financial Data (H1 2025) | Company Name | Operating Revenue (ten thousand Yuan) | Net Profit (ten thousand Yuan) | | :--- | :--- | :--- | | Rongtong Leasing | 1,045.30 | 823.97 | | Hongtong Factoring | 7,128.50 | 1,829.02 | - The investment management business recognized RMB 111 million in investment income from associates and joint ventures, a 26.22% increase year-on-year[33] - The company completed the acquisition of a 7.1% stake in Dongguan Securities, increasing its shareholding to 27.1%[33] Core Competitiveness Analysis The company's core strengths lie in its prime expressway assets and the strong resource support from its controlling shareholder - The company holds the concession for the Guanshen Expressway, a key transportation artery in the Guangdong-Hong Kong-Macao Greater Bay Area[34] - The ongoing reconstruction and expansion of the Guanshen Expressway aims to enhance capacity and extend the asset's operating life[34] - The controlling shareholder, Dongguan Communications Investment, is an AAA-rated state-owned enterprise, providing strong financial and resource advantages[35] Main Business Analysis The main business saw a revenue decline due to the quasi-financial segment, while cash flow improved significantly and certain expenses decreased Key Financial Data YoY Changes (H1 2025 vs H1 2024) | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | YoY Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 765,647,980.25 | 837,423,242.33 | -8.57% | Decrease in revenue from the quasi-financial business due to reduced scale | | Operating Costs | 237,839,252.45 | 273,034,584.50 | -12.89% | Decrease in financing costs corresponding to the reduced scale of the quasi-financial business | | Finance Expenses | -11,355,982.19 | 36,055,286.36 | -131.50% | Decrease in interest expense and increase in interest income | | Net Cash Flow from Operating Activities | 931,196,200.85 | -400,097,300.88 | 332.74% | Decrease in net investment in quasi-financial projects | | Net Cash Flow from Investing Activities | -450,835,527.77 | 3,720,934,652.28 | -112.12% | Prior period included proceeds from capital reduction of Dongguan Rail Transit Line 1 Co | | Net Cash Flow from Financing Activities | -1,978,748,900.38 | -1,046,301,763.78 | -89.12% | Reduction in borrowing scale | | Investment Income | 112,969,196.02 | 296,882,833.60 | -61.95% | Prior period included investment income from the exit of Dongguan Rail Transit Line 1 Co | | Credit Impairment Loss | 63,453,818.04 | -173,730,186.64 | 136.52% | Reversal of bad debt provision upon collection of Dongguan Trust disposal proceeds | Operating Revenue Composition (by Industry/Product/Region) | Category | Item | Current Period Amount (Yuan) | % of Operating Revenue | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | By Industry | Transportation Support Services | 626,726,171.39 | 81.86% | -0.37% | | | Finance Leasing | 9,844,702.25 | 1.29% | -71.52% | | | Commercial Factoring | 71,284,985.65 | 9.31% | -40.66% | | | New Energy Vehicle Charging | 41,722,958.85 | 5.45% | 10.86% | | By Region | Guangdong Province | 755,025,254.71 | 98.61% | -7.60% | Performance of Segments Accounting for Over 10% of Revenue or Profit | Category | Item | Operating Revenue (Yuan) | Gross Margin (%) | Revenue YoY Change (%) | Gross Margin YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Transportation Support Services | 626,726,171.39 | 75.58% | -0.37% | 1.53% | | By Product | Toll Fee Income | 626,726,171.39 | 75.58% | -0.37% | 1.53% | | By Region | Guangdong Province | 755,025,254.71 | 69.31% | -7.60% | 1.37% | Non-core Business Analysis The company's non-core business activities include sustainable investment income and a non-sustainable reversal of credit impairment loss Non-core Business Items and Sustainability | Item | Amount (Yuan) | % of Total Profit | Reason | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 112,969,196.02 | 16.87% | Primarily long-term equity investment income under the equity method | Yes | | Fair Value Change Gains/Losses | -1,219,348.08 | -0.18% | Fair value changes of trading financial assets | Yes | | Non-operating Income | 2,638,440.21 | 0.39% | Primarily compensation for expressway asset claims and other default penalties | Yes | | Other Income | 5,152,294.46 | 0.77% | Primarily government grants | Yes | | Credit Impairment Loss | 63,453,818.04 | 9.47% | Reversal of bad debt provision upon collection of equity disposal proceeds | No | Analysis of Assets and Liabilities Total assets decreased due to loan scale reduction, while long-term equity investments and construction in progress increased significantly Significant Changes in Asset Composition (Period-end vs Year-end) | Item | Period-end Amount (Yuan) | % of Total Assets | Year-end Amount (Yuan) | % of Total Assets | Change in Share (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 2,774,831,453.68 | 17.20% | 4,372,780,182.62 | 25.18% | -7.98% | Decrease in borrowing scale and increase in investment expenditure | | Long-term Equity Investments | 3,766,268,443.12 | 23.35% | 2,951,685,170.86 | 16.99% | 6.36% | Acquisition of Dongguan Securities equity | | Construction in Progress | 2,871,048,543.28 | 17.80% | 2,245,055,892.74 | 12.93% | 4.87% | Increased investment in the Guanshen Expressway reconstruction project | | Short-term Borrowings | 271,361,182.42 | 1.68% | 1,667,149,438.24 | 9.60% | -7.92% | Reduction in short-term borrowing scale | | Other Receivables | 71,180,238.50 | 0.44% | 968,889,904.01 | 5.58% | -5.14% | Collection of equity disposal proceeds | Major Overseas Assets | Asset Description | Asset Scale (Yuan) | Location | Income (Yuan) | % of Company's Net Assets | | :--- | :--- | :--- | :--- | :--- | | Rongtong Investment | 102,048,614.50 | Hong Kong | 549,474.09 | 1.02% | Assets and Liabilities Measured at Fair Value (Period-end) | Item | Period-end Amount (Yuan) | | :--- | :--- | | Trading Financial Assets | 49,451,338.80 | | Other Equity Instrument Investments | 28,033,888.74 | | Other Non-current Financial Assets | 45,795,000.00 | | Total | 123,280,227.54 | - Restricted assets primarily consist of factoring receivables and charging service receivables pledged for financing[51] Investment Status Analysis Investment amount surged due to the acquisition of a 7.1% stake in Dongguan Securities, while the expressway expansion project continued as planned Investment Amount During the Reporting Period | Indicator | Investment Amount (Yuan) | Prior Year Investment Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Investment | 811,522,741.00 | 36,255,000.00 | 2,138.37% | - The increase in investment was mainly for the acquisition of a 7.1% stake in Dongguan Securities for RMB 806 million[52] Major Equity Investments | Investee Company | Investment Amount (Yuan) | Shareholding Ratio (Post-transaction) | Source of Funds | | :--- | :--- | :--- | :--- | | Dongguan Securities | 806,472,741.00 | 27.10% | Own funds | Major Non-equity Investments (Guanshen Expressway Reconstruction Project) | Project Name | Investment in Current Period (Yuan) | Cumulative Investment to Date (Yuan) | Project Progress (%) | | :--- | :--- | :--- | :--- | | Guanshen Expressway (incl. Longlin) Reconstruction Project | 863,057,243.14 | 3,536,037,567.58 | 20.11% | Securities Investments (Trading Financial Assets) | Security Name | Opening Book Value (Yuan) | Fair Value Change in Current Period (Yuan) | Closing Book Value (Yuan) | | :--- | :--- | :--- | :--- | | Hongchuan Smart | 50,670,686.88 | -1,219,348.08 | 49,451,338.80 | Disposal of Significant Assets and Equity The company did not sell any significant assets or equity stakes during the reporting period - No significant assets were sold during the reporting period[64] - No significant equity stakes were sold during the reporting period[65] Analysis of Major Subsidiaries and Investees Subsidiaries in leasing and factoring saw revenue declines, with Hongtong Factoring's profit impacted by a significant impairment charge in the prior year Financials of Major Subsidiaries and Investees (Unaudited) | Company Name | Type | Registered Capital | Operating Revenue (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Rongtong Leasing | Wholly-owned Subsidiary | USD165,000,000 | 10,453,048.03 | 8,239,735.15 | | Hongtong Factoring | Holding Subsidiary | RMB1,000,000,000 | 71,284,985.65 | 18,290,204.23 | | Dongguan Securities | Associate Company | RMB1,500,000,000 | 1,441,545,786.06 | 498,577,689.38 | - The revenue decline at Rongtong Leasing and Hongtong Factoring was mainly due to a reduction in business scale[67] - Hongtong Factoring's large profit variance was due to a RMB 109 million impairment on a factoring business in H1 2024, which resulted in a net loss in that period[67] Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[68] Risks and Countermeasures The company faces risks from toll policies, concession expiration, and credit risks in its financial services, with countermeasures in place - The expressway business faces risks from toll policy changes and concession expiration, which the company is addressing by applying to extend the toll period through reconstruction projects[68] - The finance leasing and commercial factoring businesses face intense market competition and asset quality risks from macroeconomic impacts[68] - The company mitigates financial business risks through strict business compliance, credit risk control, and a classified project tracking mechanism[68] Market Value Management System and Value Enhancement Plan The company has not established a market value management system or disclosed a value enhancement plan - The company has not formulated a market value management system[69] - The company has not disclosed a value enhancement plan[69] Implementation of the "Dual Improvement in Quality and Returns" Action Plan The company has disclosed its "Dual Improvement in Quality and Returns" action plan on the designated information disclosure website - The company disclosed its "Action Plan for Dual Improvement in Quality and Returns" on February 11, 2025[69] Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management Two senior management members, the Chief Engineer and a Vice President, resigned due to work reassignments during the period Changes in Directors, Supervisors, and Senior Management | Name | Position | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Chen Wen | Chief Engineer | Resignation | 2025-01-15 | Work reassignment | | Ye Zilong | Vice President | Resignation | 2025-06-24 | Work reassignment | Profit Distribution and Capitalization of Capital Reserve The company proposes a cash dividend of RMB 1.5 per 10 shares for H1 2025, with no bonus shares or capitalization of reserves Profit Distribution Plan Details | Indicator | Details | | :--- | :--- | | Bonus Shares per 10 Shares | 0 shares | | Cash Dividend per 10 Shares (tax inclusive) | 1.5 Yuan | | Shares from Capital Reserve per 10 Shares | 0 shares | | Share Base for Distribution Plan | 1,039,516,992.00 shares | | Cash Dividend Amount (tax inclusive) | 155,927,548.80 Yuan | | Parent Company's Distributable Profit | 5,987,017,667.89 Yuan | - The cash dividend accounts for 100% of the total profit distribution[72] Implementation of Equity Incentive Plans or Other Employee Incentives The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[73] Environmental Information Disclosure The company and its main subsidiaries are not listed as enterprises required to disclose environmental information by law - The company and its main subsidiaries are not included in the list of enterprises required to disclose environmental information by law[74] Social Responsibility The company actively fulfills its social responsibilities through employee care, community feedback, and various public welfare projects - Internally, the company invested over RMB 670,000 in employee care and assistance programs[74] - Externally, the company supports rural revitalization through donations, targeted procurement, and public welfare collaborations[74][75] - The company launched distinctive public welfare projects such as "Escorting the College Entrance Exam" and "Helping the Homeless Return Home"[75] Significant Events Fulfillment of Commitments There were no commitments that were fulfilled or overdue by the company's related parties during the reporting period - There were no overdue unfulfilled commitments during the reporting period[77] Non-operating Fund Occupation by Controlling Shareholders and Other Affiliates There was no non-operating fund occupation by the controlling shareholder or other related parties during the reporting period - The company reports no non-operating fund occupation by its controlling shareholder or other related parties during the reporting period[78] Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[79] Appointment and Dismissal of Accounting Firm The company's semi-annual financial report has not been audited - The company's semi-annual financial report is unaudited[80] Explanation on "Non-standard Audit Report" by the Board and Supervisory Committee There was no non-standard audit report during the reporting period - The company did not receive a non-standard audit report during the reporting period[81] Board's Explanation on "Non-standard Audit Report" from the Previous Year There was no non-standard audit report in the previous year - The company did not receive a non-standard audit report in the previous year[81] Bankruptcy and Reorganization Matters The company was not involved in any bankruptcy or reorganization matters during the reporting period - No bankruptcy or reorganization matters occurred during the reporting period[81] Litigation Matters The company had no major litigation, but its subsidiary is involved in several lawsuits related to its finance leasing business - The company had no major litigation or arbitration matters during the reporting period[82] - As of the period-end, the total amount involved in various cases for the company and its subsidiaries was RMB 96.8 million, primarily related to finance leasing lawsuits initiated by Rongtong Leasing[82] Penalties and Rectifications The company was not subject to any penalties or rectifications during the reporting period - No penalties or rectifications occurred during the reporting period[83] Integrity of the Company, its Controlling Shareholder, and Actual Controller There were no integrity issues concerning the company, its controlling shareholder, or its actual controller during the reporting period - No integrity issues were reported for the company or its controlling parties during the period[84] Major Related-Party Transactions The company had no major operational related-party transactions but did transfer a large-value certificate of deposit to a related party - No major related-party transactions related to daily operations, asset acquisitions, or joint investments occurred during the reporting period[84][85][86] - There were no related-party creditor's rights, debt dealings, or transactions with related financial companies[87][88][89] - The company transferred a RMB 200 million large-value certificate of deposit to the related party Dongguan Road & Bridge Investment Construction Co, Ltd[90] Major Contracts and Their Performance The company has several ongoing major financing and factoring contracts, while no major custody, contracting, or leasing matters occurred - The company had no major custody, contracting, leasing, guarantee, or wealth management matters during the reporting period[92][93][94][95][96] Other Major Contracts | Contracting Party | Contract Subject | Contract Amount (Approved Credit Line) | Performance Status as of Period-end | | :--- | :--- | :--- | :--- | | Rongtong Leasing | Finance leasing services (water supply facilities) | 1,600,000 thousand Yuan | Contract amount signed is RMB 1.552 billion, with RMB 1.168 billion fulfilled. The outstanding lease principal is RMB 568 million, and the project is proceeding normally. | | Hongtong Factoring | Commercial factoring financing (Jiaotou Real Estate receivables) | 1,860,000 thousand Yuan | Contract amount signed is RMB 1.86 billion, with RMB 1.065 billion fulfilled. The outstanding factoring principal is RMB 1.065 billion, and the project is proceeding normally. | | Hongtong Factoring | Commercial factoring financing (Ruiying Hotel receivables) | 1,200,000 thousand Yuan | Contract amount signed is RMB 1.2 billion, with RMB 794 million fulfilled. The outstanding factoring principal is RMB 762 million. Due to project default, Hongtong Factoring has made an impairment provision. | Other Significant Matters There were no other significant matters to report for the period - The company has no other significant matters to disclose for the reporting period[100] Significant Matters of Subsidiaries A subsidiary's commercial factoring business with a client has defaulted, leading to a pre-reorganization application to the court - A commercial factoring business between subsidiary Hongtong Factoring and Dongguan Ruiying Hotel Investment Co, Ltd has defaulted[100] - Hongtong Factoring has applied to the court for the pre-reorganization of Ruiying Company, and the court has appointed an administrator to proceed[100] Share Capital Changes and Shareholder Information Changes in Share Capital The company's total share capital remained unchanged during the reporting period, with nearly all shares being unrestricted Share Capital Structure (Period-end) | Share Type | Quantity (shares) | Percentage (%) | | :--- | :--- | :--- | | I. Restricted Shares | 1,350 | 0.00% | | Of which: Domestic individual holdings | 1,350 | 0.00% | | II. Unrestricted Shares | 1,039,515,642 | 100.00% | | Of which: RMB ordinary shares | 1,039,515,642 | 100.00% | | III. Total Shares | 1,039,516,992 | 100.00% | - Information regarding reasons for share changes, approvals, transfers, and share repurchases is not applicable for the reporting period[103] Securities Issuance and Listing The company did not issue or list any new securities during the reporting period - No securities were issued or listed by the company during the reporting period[104] Number of Shareholders and Shareholdings The company had 27,699 ordinary shareholders at the end of the period, with the top three shareholders being related parties acting in concert - The total number of ordinary shareholders was 27,699 at the end of the reporting period[105] Top 10 Shareholders (Excerpt) | Shareholder Name | Shareholder Type | Shareholding Ratio (%) | Shares Held at Period-end (shares) | | :--- | :--- | :--- | :--- | | Dongguan Communications Investment Holding Group Co, Ltd | State-owned legal person | 41.81% | 434,671,714.00 | | Fumin Development Co, Ltd | State-owned legal person | 25.00% | 259,879,247.00 | | Dongguan Fumin Group Company | State-owned legal person | 3.01% | 31,291,633.00 | | Hong Kong Securities Clearing Company Ltd | Foreign legal person | 1.13% | 11,766,165.00 | - Dongguan Communications Investment Holding Group, Dongguan Fumin Group, and Fumin Development are related parties and act in concert[105] - Some individual shareholders hold company shares through margin trading and securities lending accounts[106] Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - The shareholdings of directors, supervisors, and senior management did not change during the reporting period[108] Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder did not change during the reporting period[109] - The company's actual controller did not change during the reporting period[109] Preference Shares Information The company has no preference shares - The company had no preference shares during the reporting period[110] Bond-related Information The company has no bond-related matters to report for the period - The company had no bond-related matters during the reporting period[112] Financial Report Audit Report The company's semi-annual financial report has not been audited - The company's semi-annual financial report is unaudited[114] Financial Statements This section presents the company's consolidated and parent company financial statements for the first half of 2025 - This section provides the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity[115][118][122][126][129][133][134][145] Consolidated Balance Sheet As of June 30, 2025, consolidated total assets decreased by 7.15% to RMB 16.13 billion, with notable shifts in asset and liability composition Consolidated Balance Sheet Key Data (Period-end vs Beginning of Period) | Item | Closing Balance (Yuan) | Opening Balance (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 16,128,106,498.58 | 17,369,370,373.16 | -7.15% | | Cash and Cash Equivalents | 2,774,831,453.68 | 4,372,780,182.62 | -36.54% | | Other Receivables | 71,180,238.50 | 968,889,904.01 | -92.65% | | Long-term Equity Investments | 3,766,268,443.12 | 2,951,685,170.86 | +27.59% | | Construction in Progress | 2,871,048,543.28 | 2,245,055,892.74 | +27.89% | | Short-term Borrowings | 271,361,182.42 | 1,667,149,438.24 | -83.73% | | Total Liabilities | 5,985,790,498.29 | 7,409,105,250.22 | -19.21% | | Total Equity | 10,142,316,000.29 | 9,960,265,122.94 | +1.83% | Parent Company Balance Sheet The parent company's total assets decreased by 6.80% to RMB 13.54 billion, driven by reductions in cash and short-term borrowings Parent Company Balance Sheet Key Data (Period-end vs Beginning of Period) | Item | Closing Balance (Yuan) | Opening Balance (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 13,534,972,904.36 | 14,522,054,746.23 | -6.80% | | Cash and Cash Equivalents | 2,591,790,325.30 | 4,201,872,238.54 | -38.32% | | Other Receivables | 343,370,227.84 | 1,336,282,835.89 | -74.39% | | Long-term Equity Investments | 5,704,409,433.87 | 4,827,755,808.36 | +18.16% | | Construction in Progress | 2,871,010,313.19 | 2,244,780,165.85 | +27.89% | | Short-term Borrowings | 50,031,527.78 | 1,314,036,669.45 | -96.19% | | Total Liabilities | 4,056,081,776.34 | 5,212,715,299.15 | -22.19% | | Total Equity | 9,478,891,128.02 | 9,309,339,447.08 | +1.82% | Consolidated Income Statement For H1 2025, net profit attributable to parent company shareholders grew 20.51% to RMB 532 million despite an 8.57% decline in revenue Consolidated Income Statement Key Data (H1 2025 vs H1 2024) | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 765,647,980.25 | 837,423,242.33 | -8.57% | | Total Operating Costs | 279,798,377.04 | 368,174,964.79 | -24.00% | | Finance Expenses | -11,355,982.19 | 36,055,286.36 | -131.50% | | Operating Profit | 667,150,449.63 | 566,603,909.79 | +17.75% | | Net Profit Attributable to Parent Shareholders | 532,409,012.90 | 441,794,650.99 | +20.51% | | Minority Interest Income/Loss | -9,232,602.04 | -12,161,624.68 | +24.08% | | Basic Earnings Per Share (Yuan/share) | 0.5122 | 0.4149 | +23.45% | Parent Company Income Statement The parent company's net profit increased by 7.78% to RMB 510 million in H1 2025, with revenue remaining stable Parent Company Income Statement Key Data (H1 2025 vs H1 2024) | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 640,381,007.55 | 641,066,706.92 | -0.11% | | Finance Expenses | -22,122,854.14 | 45,431,072.88 | -148.69% | | Credit Impairment Loss | 62,437,960.90 | -61,856,444.84 | +201.09% | | Net Profit | 510,187,214.45 | 473,375,455.40 | +7.78% | | Basic Earnings Per Share (Yuan/share) | 0.4908 | 0.4452 | +10.24% | Consolidated Cash Flow Statement Operating cash flow saw a significant positive turnaround to RMB 931 million, while investing and financing activities resulted in net outflows Consolidated Cash Flow Statement Key Data (H1 2025 vs H1 2024) | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 931,196,200.85 | -400,097,300.88 | +332.74% | | Net Cash Flow from Investing Activities | -450,835,527.77 | 3,720,934,652.28 | -112.12% | | Net Cash Flow from Financing Activities | -1,978,748,900.38 | -1,046,301,763.78 | -89.12% | | Net Increase in Cash and Cash Equivalents | -1,498,388,801.96 | 2,274,536,760.18 | -165.88% | Parent Company Cash Flow Statement The parent company's operating cash flow increased by 65.67%, while net cash outflows from investing and financing activities were substantial Parent Company Cash Flow Statement Key Data (H1 2025 vs H1 2024) | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 564,929,994.50 | 340,999,730.39 | +65.67% | | Net Cash Flow from Investing Activities | -380,544,434.19 | 4,089,598,083.36 | -109.30% | | Net Cash Flow from Financing Activities | -1,694,467,546.57 | -1,605,671,598.15 | -5.53% | | Net Increase in Cash and Cash Equivalents | -1,510,081,986.26 | 2,824,926,215.60 | -153.46% | Consolidated Statement of Changes in Equity Total equity attributable to parent company shareholders increased by RMB 192 million, driven by net profit growth offset by dividend payments Consolidated Statement of Changes in Equity (H1 2025) | Item | Equity Attributable to Parent Shareholders (Yuan) | Minority Interest (Yuan) | Total Equity (Yuan) | | :--- | :--- | :--- | :--- | | Opening Balance | 9,836,596,276.60 | 123,668,846.34 | 9,960,265,122.94 | | Net Change for the Period | 191,773,479.39 | -9,722,602.04 | 182,050,877.35 | | Closing Balance | 10,028,369,755.99 | 113,946,244.30 | 10,142,316,000.29 | - Total comprehensive income for the period was RMB 520 million, with RMB 529 million attributable to parent company shareholders[136] - The company distributed cash dividends totaling RMB 338 million to all shareholders during the period[136] Parent Company Statement of Changes in Equity The parent company's total equity increased by RMB 170 million, reflecting the impact of net profit and dividend distributions Parent Company Statement of Changes in Equity (H1 2025) | Item | Total Equity (Yuan) | | :--- | :--- | | Opening Balance | 9,309,339,447.08 | | Net Change for the Period | 169,551,680.94 | | Closing Balance | 9,478,891,128.02 | - Total comprehensive income for the period was RMB 507 million[146] - The company distributed cash dividends totaling RMB 338 million to all shareholders during the period[146] Company Basic Information This section outlines the company's history, capital structure, and controlling entities, tracing its transformation into an expressway operator - The company, formerly Guangdong Fodi Technology Co, Ltd, transitioned from CRT manufacturing to expressway operations via a major asset swap in 2003[152] - The registered capital is 1,039,516,992 shares following the non-tradable share reform[153] - The company's registered and head office address is in Dongguan, Guangdong Province[153] - The parent company is Dongguan Communications Investment Holding Group Co, Ltd, and the ultimate controller is the Dongguan State-owned Assets Supervision and Administration Commission[153] Business Nature and Main Operating Activities The company operates in transportation support, finance leasing, commercial factoring, and new energy vehicle charging industries - The company's business sectors include transportation support, finance leasing, commercial factoring, and new energy vehicle charging[154] - Main activities include investment, construction, and operation of expressways; finance leasing; commercial factoring; and new energy vehicle charging services[154] Approval and Issuance of Financial Statements The financial statements and their notes were approved for issuance by the Board of Directors on August 25, 2025 - The financial statements and notes were approved for issuance by the Board of Directors on August 25, 2025[155] Basis of Preparation for Financial Statements The financial statements are prepared in accordance with PRC Accounting Standards for Business Enterprises and relevant CSRC disclosure rules - The financial statements are prepared in accordance with PRC Accounting Standards and CSRC information disclosure rules[156] - The statements are based on the going concern assumption, using the accrual basis of accounting and historical cost measurement[156] Significant Accounting Policies and Estimates This section details the key accounting policies and estimates applied in preparing the financial statements across various financial reporting areas - The financial statements are declared to comply with PRC Accounting Standards, providing a true and fair view of the company's financial position[158] - The accounting period is the calendar year, the operating cycle is 12 months, and the functional currency is RMB[159][160][161] - Accounting treatments for business combinations under common and non-common control are detailed[163][165][170][171] - The methodology for preparing consolidated financial statements, including the criteria for determining control, is explained[172][173][174][175][176] - Policies for financial instrument recognition, classification, measurement, and impairment, including the expected credit loss model, are defined[184][188][194][202][203] - Methods for recognition, measurement, depreciation/amortization, and impairment testing of fixed assets, intangible assets, and construction in progress are specified[237][239][244][252][256] - Revenue recognition principles are detailed for vehicle tolls, finance leasing, factoring, operating leases, and EV charging fees[274][282][283][285][286][288] - The recognition, measurement, and accounting treatment of government grants are described[289][290][291] - Accounting treatments for leases, including identification and methods for lessees and lessors, are detailed[297][298][309][313][314] - There were no significant changes in accounting policies or estimates during the reporting period[315][316] Taxes This section discloses the company's main taxes and rates, including various tax incentives for which it and its subsidiaries are eligible Main Taxes and Tax Rates | Tax Type | Tax Rate | | :--- | :--- | | Value-Added Tax (VAT) | 3%, 5%, 6%, 9%, 13% | | Urban Maintenance and Construction Tax | 7%, 5% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | | Corporate Income Tax | 25%, 20%, 16.5%, 15% | Corporate Income Tax Rates for Different Entities | Taxpayer Name | Income Tax Rate | | :--- | :--- | | The Company | 25% | | Rongtong Investment Co, Ltd | 16.5% | | Dongguan Kangyi Innovation Energy Technology Co, Ltd | 15% | | Small and micro enterprises like Dongguan Huitong Car Rental Co, Ltd | 20% | - Guangdong Rongtong Finance Leasing Co, Ltd enjoys a VAT refund for the portion of its tax burden exceeding 3%[319] - Dongguan Kangyi Innovation Energy Technology Co, Ltd is eligible for a reduced 15% corporate income tax rate as a high-tech enterprise[320] - Certain subsidiaries qualify as small and micro enterprises, benefiting from a reduced corporate income tax rate of 20% on 25% of their taxable income[322] - Rongtong Investment Co, Ltd is subject to the Hong Kong corporate profits tax rate of 16.5%[323] Notes to Consolidated Financial Statements This section provides detailed notes on the main items of the consolidated financial statements, offering further breakdowns and explanations - Cash and cash equivalents at period-end were RMB 2.775 billion, with restricted cash of RMB 3.1168 million[325] - Accounts receivable at period-end were RMB 36.47 million, with a bad debt provision of RMB 2.3284 million[330] - Other receivables at period-end were RMB 71.18 million, a significant decrease due to the collection of equity disposal proceeds[337][349] - Long-term equity investments at period-end were RMB 3.766 billion, an increase due to the acquisition of Dongguan Securities equity[377] - The carrying amounts of fixed assets and construction in progress at period-end were RMB 816 million and RMB 2.871 billion, respectively[385][392] - Short-term borrowings at period-end were RMB 271 million, a significant decrease from the beginning of the year[423] - Long-term borrowings at period-end were RMB 4.056 billion[453] - Operating revenue was RMB 766 million, and operating cost was RMB 238 million[477] - Finance expenses were -RMB 11.356 million, a significant decrease from the prior period[485] - Credit impairment loss was RMB 63.4538 million, a significant positive reversal from the prior period[492] - Net cash flow from operating activities was RMB 931 million[516] Research and Development Expenses All R&D expenses during the period were expensed, totaling RMB 2.21 million, primarily from the subsidiary Kangyi Innovation R&D Expenditure | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | R&D expenses of Kangyi Innovation | 2,210,915.53 | 2,216,930.55 | | Of which: Expensed R&D | 2,210,915.53 | 2,216,930.55 | - The company has no R&D projects eligible for capitalization and no significant externally acquired ongoing R&D projects[532] Changes in Consolidation Scope The consolidation scope changed due to the establishment of a new subsidiary, with no other types of business combinations or disposals - The establishment of Huizhou Kangyi Innovation Energy Technology Co, Ltd led to a change in the consolidation scope[532] - There were no business combinations under non-common or common control, reverse acquisitions, or disposals of subsidiaries[532] Interests in Other Entities This section details the company's interests in its subsidiaries, joint ventures, and associate companies, including key financial information - The company has several holding subsidiaries in commercial factoring, finance leasing, expressway management, and EV charging[533] - Control over certain subsidiaries is achieved through concert party agreements or articles of association[535] Significant Non-wholly Owned Subsidiary (Tianjin Hongtong Commercial Factoring Co, Ltd) | Subsidiary Name | Minority Interest Ratio | Net Profit/Loss Attributable to Minority Interest (Yuan) | Minority Interest Balance at Period-end (Yuan) | | :--- | :--- | :--- | :--- | | Tianjin Hongtong Commercial Factoring Co, Ltd | 2.50% | 457,255.11 | 32,577,354.97 | - The company's significant joint venture is Guangdong Humen Bridge Co, Ltd, and significant associates include Dongguan Securities Co, Ltd[543] - The company holds an 11.11% stake in Guangdong Humen Bridge Co, Ltd but exercises significant influence through board representation and accounts for it using the equity method[544] Government Grants The company recognized RMB 4.95 million in government grants in the current period, with a remaining deferred income balance of RMB 37.32 million Liabilities Related to Government Grants (Deferred Income) | Account | Opening Balance (Yuan) | New Grants (Yuan) | Recognized in Other Income (Yuan) | Closing Balance (Yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 41,544,965.53 | 48,000.00 | 4,272,346.11 | 37,320,619.42 | Asset-related | Government Grants Recognized in Current Profit/Loss | Item | Current Period Amount (Yuan) | | :--- | :--- | | Charging pile construction subsidies | 3,161,376.36 | | Guanshen Expressway Shangtun Interchange project grant | 784,200.00 | | Tianjin municipal government subsidy | 1,000,000.00 | | Total | 4,945,576.36 | Risks Related to Financial Instruments The company manages credit, liquidity, and market risks through systematic policies, including credit assessment and maintaining sufficient cash reserves - The company's main financial instruments include cash, receivables, and borrowings[556] - The company faces credit risk, liquidity risk, and market risk, which are managed through established risk management policies[556] - Credit risk is controlled by assessing customer creditworthiness, monitoring credit records, and purchasing credit guarantee insurance[558] - Liquidity risk is managed by maintaining sufficient cash and cash equivalents and securing backup credit facilities[559] - Market risk, primarily interest rate risk, is closely monitored, though no interest rate hedging policies are currently in place[561][562] Interest-bearing Financial Instruments (Period-end vs Year-end) | Item | Period-end (ten thousand Yuan) | Year-end (ten thousand Yuan) | | :--- | :--- | :--- | | Short-term Borrowings | 27,123.46 | 166,578.00 | | Long-term Borrowings | 492,044.59 | 500,788.66 | | Total | 519,168.05 | 667,366.66 | Fair Value Disclosure The company's assets measured at fair value total RMB 123 million, categorized into Level 1 and Level 3 of the fair value hierarchy Fair Value of Assets and Liabilities at Period-end | Item | Level 1 Fair Value (Yuan) | Level 3 Fair Value (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | | Equity Instrument Investments | 49,451,338.80 | - | 49,451,338.80 | | Other Equity Instrument Investments | - | 28,033,888.74 | 28,033,888.74 | | Other Non-current Financial Assets | - | 45,795,000.00 | 45,795,000.00 | | Total Assets Continuously Measured at Fair Value | 49,451,338.80 | 73,828,888.74 | 123,280,227.54 | - Level 1 fair value items are determined based on quoted prices in active markets[566] - Level 3 fair value items are estimated based on their investment cost[567] Related Parties and Related-Party Transactions This section details the company's related parties and transactions, with the controlling shareholder committed to maintaining corporate independence - The parent company is Dongguan Communications Investment Holding Group, and the ultimate controller is the Dongguan SASAC[568][569] - The company engages in related-party transactions for services such as expressway maintenance, IT system operation, and site leasing[574][575][576] - The controlling shareholder has committed to ensuring the company's independence, standardizing related-party transactions, and avoiding competition[589][590][592][593] Related-Party Receivables (Excerpt) | Item | Related Party | Closing Balance (Yuan) | Opening Balance (Yuan) | | :--- | :--- | :--- | :--- | | Accounts Receivable | Dongguan Bus Co, Ltd East Branch | 5,374,894.31 | 5,129,774.81 | | Other Receivables | Dongguan Road & Bridge Investment Construction Co, Ltd | 8,121.00 | 999,366,721.00 | | Long-term Receivables | Dongguan Binhaiwan Public Transport Co, Ltd | 133,178,063.94 | 157,911,690.51 | Related-Party Payables (Excerpt) | Item | Related Party | Closing Balance (Yuan) | Opening Balance (Yuan) | | :--- | :--- | :--- | :--- | | Accounts Payable | Dongguan Guangye New Energy Technology Co, Ltd | 2,714,571.39 | - | | Other Payables | Dongguan Jingwei Highway Engineering Co, Ltd | 8,599,188.52 | 11,371,726.69 | | Dividends Payable | Fumin Development Co, Ltd | - | 38,981,887.05 | Share-based Payment The company had no share-based payment arrangements during the reporting period - The company had no share-based payment matters during the reporting period[596] Commitments and Contingencies The company has committed to a minimum annual cash dividend for the next three years and has no significant contingencies - The company has committed to an annual cumulative cash dividend of no less than RMB 0.475 per share for the three years from 2025 to 2027[596] - The company had no significant contingencies at the end of the reporting period[597] Post-Balance Sheet Events Subsequent to the reporting period, the company has proposed a profit distribution plan of RMB 1.5 per 10 shares Profit Distribution (Proposed) | Indicator | Details | | :--- |