四川成渝高速公路(00107) - 2025 - 中期业绩

Financial Statements Unaudited Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Revenue decreased by 23.30% to 4.08 billion yuan, but profit attributable to owners increased by 20.09% to 838 million yuan, with basic earnings per share rising to RMB 0.260 Key Financial Performance for H1 2025 (Thousand Yuan (RMB)) | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 4,079,978 | 5,319,241 | | Operating Profit | 1,330,153 | 1,324,953 | | Profit Before Tax | 1,070,209 | 902,973 | | Interim Profit | 882,575 | 732,672 | | Profit Attributable to Owners of the Company | 838,351 | 698,095 | | Basic and Diluted Earnings Per Share | RMB 0.260 | RMB 0.228 | - Revenue decreased by 23.30% year-on-year, while profit attributable to owners of the company increased by 20.09%[5][7] Unaudited Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets reached 61.32 billion yuan, a slight increase from year-end 2024, while total liabilities decreased to 40.65 billion yuan, optimizing the debt-to-capital ratio, and total owners' equity rose to 20.67 billion yuan H1 2025 Financial Position Summary (Thousand Yuan (RMB)) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 61,322,641 | 61,032,031 | | Total Liabilities | 40,649,820 | 41,536,405 | | Total Equity | 20,672,821 | 19,495,626 | - As of June 30, 2025, the Group's current liabilities exceeded current assets by approximately 293 million yuan, but the Board considers the preparation of financial information on a going concern basis to be appropriate[14][15] Notes to Financial Statements General Information of the Company Sichuan Expressway Company Limited is a joint stock company registered in China, primarily engaged in investment holding, construction, management, and operation of expressways and toll bridges, gas station operations, and electric vehicle charging services, with Shu Dao Investment Group as the controlling shareholder - The company's principal businesses include investment holding, construction, management, and operation of expressways and toll bridges, operation of gas stations along expressways, and electric vehicle charging services[10][13] - Shu Dao Investment Group Co., Ltd. is the controlling shareholder of the company[10] Basis of Preparation and Updates to Accounting Policies This interim condensed consolidated financial information is prepared in accordance with HKAS 34, consistent with prior year accounting policies, with the first-time adoption of new and revised HKAS, such as amendments to HKAS 21, expected to have no material impact, and disclosure of unadopted new standards - This interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[12] - The Group has first adopted amendments to HKAS 21 'Lack of Exchangeability', which are not expected to have a material impact on prior, current, or future periods[16] New and Revised Standards Not Yet Adopted | Standard, Amendment or Interpretation Issue | Effective Date | | :--- | :--- | | Amendments to HKFRS 9 and HKFRS 7: Classification and Measurement of Financial Instruments | January 1, 2026 | | HKFRS 18: Presentation and Disclosure in Financial Statements | January 1, 2027 | Basis of Preparation - The interim condensed consolidated financial information for this period is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[12] - As of June 30, 2025, the Group's current liabilities exceeded current assets by approximately 293 million yuan, but the Board considers the preparation of financial information on a going concern basis to be appropriate[14][15] Changes in Accounting Policies - The Group has first adopted amendments to HKAS 21 'Lack of Exchangeability' for the reporting period beginning January 1, 2025, with no material impact expected[16] New and Revised Standards Not Yet Adopted | Standard, Amendment or Interpretation Issue | Effective Date | | :--- | :--- | | Amendments to HKFRS 9 and HKFRS 7: Classification and Measurement of Financial Instruments | January 1, 2026 | | HKFRS 18: Presentation and Disclosure in Financial Statements | January 1, 2027 | Segment Information The Group is divided into six reportable operating segments: expressways, construction services, transportation services, transportation logistics, new energy technology, and other segments, with performance assessed based on adjusted profit before tax, excluding centrally managed assets and liabilities - The Group has six reportable operating segments: expressways, construction services, transportation services, transportation logistics, new energy technology, and other segments (primarily financial investments)[18][19] - Segment performance is assessed based on adjusted profit before tax, excluding bank deposit interest income, dividend income, other unallocated income and gains, and unallocated expenses from headquarters and the company[18] - All of the Group's external revenue and non-current assets are located in mainland China, thus no geographical segment information is presented[25] - During the reporting period, no single customer accounted for 10% or more of the Group's total revenue[26] Segment Introduction - The expressway segment comprises the operation of expressways and a high-grade toll bridge in mainland China[19] - The construction services segment consists of construction and upgrade services under service concession arrangements and construction contracts[19] - The new energy technology segment comprises electric vehicle charging services and the sale of charging modules[19] Details of Segment Information Segment Revenue and Profit for the Six Months Ended June 30, 2025 (Thousand Yuan (RMB)) | Segment | Revenue | Profit | | :--- | :--- | :--- | | Expressways | 2,273,610 | 1,069,331 | | Construction Services | 693,687 | 35,261 | | Transportation Services | 1,036,753 | 93,061 | | Transportation Logistics | 27,300 | 2,155 | | New Energy Technology | 48,628 | 21,007 | | Others | – | 32,415 | | Total | 4,079,978 | 1,253,230 | Segment Revenue and Profit for the Six Months Ended June 30, 2024 (Thousand Yuan (RMB)) | Segment | Revenue | Profit | | :--- | :--- | :--- | | Expressways | 2,325,982 | 955,192 | | Construction Services | 1,783,253 | 38,021 | | Transportation Services | 1,041,825 | 118,885 | | Transportation Logistics | 107,614 | 346 | | New Energy Technology | 60,567 | 15,289 | | Others | – | 20,242 | | Total | 5,319,241 | 1,147,975 | - As of June 30, 2025, the expressway segment's total assets amounted to 54.965 billion yuan, accounting for 94.2% of total segment assets[23] Geographical Information - All of the Group's external revenue and non-current assets are derived from and located in mainland China, thus no geographical segment information is presented[25] Major Customer Information - During the reporting period, no single customer accounted for 10% or more of the Group's total revenue[26] Revenue The Group's total revenue for H1 2025 was 4.08 billion yuan, a 23.30% year-on-year decrease, with customer contract revenue of 4.053 billion yuan primarily from tolls, construction services, and product sales, recognized at a point in time or over time Revenue Analysis (Thousand Yuan (RMB)) | Revenue Source | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue from contracts with customers | 4,052,542 | 5,302,153 | | Gross rental income from operating leases | 27,436 | 17,088 | | Total Revenue | 4,079,978 | 5,319,241 | Customer Contract Revenue by Type of Goods and Services for the Six Months Ended June 30, 2025 (Thousand Yuan (RMB)) | Type of Goods and Services | Amount | | :--- | :--- | | Toll fees | 2,273,610 | | Construction services | 693,687 | | Product sales | 1,006,007 | | Electric vehicle charging services | 32,413 | | Others | 46,825 | | Total | 4,052,542 | - In H1 2025, revenue recognized at a point in time amounted to 3.315 billion yuan, and revenue recognized over time amounted to 738 million yuan[28] Other Income and Gains Total other income and gains for H1 2025 were 89.121 million yuan, a 13.30% year-on-year decrease, mainly due to lower bank deposit interest income and reduced fair value gains on financial assets measured at fair value through profit or loss Other Income and Gains (Thousand Yuan (RMB)) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Other Income | 86,652 | 97,128 | | Total Other Gains | 2,469 | 5,660 | | Total | 89,121 | 102,788 | - Interest income from construction contracts was 36.728 million yuan, government grants were 15.877 million yuan, and bank deposit interest income was 11.215 million yuan[30] Finance Costs Total finance costs for H1 2025 were 299 million yuan, a significant 31.90% year-on-year decrease, primarily due to reduced interest on bank and other borrowings, lower medium-term note interest, and increased capitalized interest Finance Costs Analysis (Thousand Yuan (RMB)) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Interest on bank and other borrowings | 522,484 | 673,578 | | Interest on corporate bonds | 19,030 | 4,663 | | Interest on medium-term notes | 4,307 | 28,752 | | Interest on lease liabilities | 2,474 | 2,593 | | Total Interest Expense | 548,295 | 709,586 | | Less: Capitalized interest | (249,136) | (270,385) | | Finance Costs | 299,159 | 439,201 | - The capitalization rate for finance costs ranged from 2.87% to 3.05% (compared to 3.47% to 3.65% in the same period of 2024)[31] Profit Before Tax Profit before tax for H1 2025 was 1.07 billion yuan, an 18.52% year-on-year increase, influenced by staff costs, depreciation and amortization, construction costs, and product sales costs, alongside a 22.378 million yuan reversal of impairment losses on trade and other receivables Key Components of Profit Before Tax (Thousand Yuan (RMB)) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Staff costs | 475,371 | 514,406 | | Depreciation and amortization expenses | 641,072 | 641,127 | | Construction costs | 686,797 | 1,781,147 | | Cost of product sales | 878,477 | 987,483 | | Reversal of impairment losses on trade and other receivables | (22,378) | – | Income Tax Expense Income tax expense for H1 2025 was 188 million yuan, a 10.18% year-on-year increase, primarily due to profit changes, with some subsidiaries benefiting from a 15% preferential tax rate under the Western Development Strategy Income Tax Expense (Thousand Yuan (RMB)) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Current income tax | 177,139 | 166,855 | | Deferred income tax | 10,495 | 3,446 | | Total | 187,634 | 170,301 | - The company and certain subsidiaries and associates (e.g., Chengdu Airport Expressway) are entitled to a 15% preferential corporate income tax rate, valid until 2030[37][38] Earnings Per Share Attributable to Ordinary Equity Holders of the Company Basic earnings per share attributable to ordinary equity holders for H1 2025 was RMB 0.260, higher than RMB 0.228 in H1 2024, with no dilutive earnings per share items Earnings Per Share (RMB) | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Basic Earnings Per Share | 0.260 | 0.228 | - As of June 30, 2025, the number of ordinary shares issued by the company was 3,058,060,000, consistent with the same period in 2024[39] Property, Plant and Equipment, Right-of-Use Assets and Service Concession Arrangements As of June 30, 2025, service concession arrangements increased to 52.177 billion yuan, property, plant and equipment slightly decreased to 1.096 billion yuan, and right-of-use assets decreased to 210 million yuan, with multiple expressway tolling rights pledged for bank loans Carrying Value of Assets (Thousand Yuan (RMB)) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Property, Plant and Equipment | 1,095,740 | 1,119,891 | | Right-of-Use Assets | 210,392 | 237,876 | | Service Concession Arrangements | 52,176,942 | 51,821,189 | - As of June 30, 2025, the tolling rights for Chengle Expressway, Chengren Expressway, Tianqiong Expressway, Suiguang Expressway, Suixi Expressway, and Second Ring West Expressway were pledged for bank loans, with a total net carrying value of 50.927 billion yuan[41] Investments in Joint Ventures As of June 30, 2025, the Group's investments in joint ventures decreased slightly to 27.598 million yuan from year-end 2024, primarily due to a current period loss of 213 thousand yuan, including Sichuan Chengyu Development Equity Investment Fund Center and Sichuan Zhongjiao Xintong Network Technology Co., Ltd Investments in Joint Ventures (Thousand Yuan (RMB)) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Share of Net Assets | 27,598 | 27,811 | - A current period loss of 213 thousand yuan led to a decrease in the carrying value of investments in joint ventures[44] - Key joint ventures include Sichuan Chengyu Development Equity Investment Fund Center (holding 49.84%) and Sichuan Zhongjiao Xintong Network Technology Co., Ltd. (holding 49%)[43] Investments in Associates As of June 30, 2025, the Group's investments in associates increased by 5.69% to 512 million yuan from year-end 2024, driven by current period earnings of 39.428 million yuan, partially offset by declared dividends of 11.839 million yuan, including Chengdu Airport Expressway and Sichuan Renshou Rural Commercial Bank Investments in Associates (Thousand Yuan (RMB)) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Carrying Value | 512,156 | 484,567 | - Current period earnings were 39.428 million yuan, and declared dividends were 11.839 million yuan[46] - Key associates include Chengdu Airport Expressway (holding 25%), Sichuan Renshou Rural Commercial Bank Co., Ltd. (holding 7.474%), and Chengdu Jiaotou International Supply Chain Management Co., Ltd. (holding 29%)[45] Financial Assets Designated at Fair Value Through Other Comprehensive Income As of June 30, 2025, total financial assets designated at fair value through other comprehensive income were 362 million yuan, a 22.26% increase from year-end 2024, primarily comprising listed equity investments (China Everbright Bank and China Merchants Fund REITs) and unlisted equity investments Financial Assets Designated at Fair Value Through Other Comprehensive Income (Thousand Yuan (RMB)) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Listed Equity Investments | 351,155 | 284,937 | | Unlisted Equity Investments | 10,880 | 11,168 | | Total | 362,035 | 296,105 | - Listed equity investments primarily include China Everbright Bank and China Merchants Fund REITs[46] Trade and Other Receivables As of June 30, 2025, total trade and other receivables were 2.513 billion yuan, a 4.50% increase from year-end 2024, with net trade receivables of 1.527 billion yuan and net other receivables and prepayments of 985 million yuan, and trade receivables generally have credit terms of 20 days to 6 months Trade and Other Receivables (Thousand Yuan (RMB)) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Trade Receivables | 1,527,496 | 1,557,853 | | Net Other Receivables and Prepayments | 985,289 | 846,810 | | Total | 2,512,785 | 2,404,663 | Aging Analysis of Trade Receivables (Net of Loss Allowance, Thousand Yuan (RMB)) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 105,855 | 316,967 | | Over 1 year | 1,199,889 | 1,200,460 | - As of June 30, 2025, 1.08 billion yuan of trade receivables are recoverable in installments over 2 to 13 years, bearing annual interest from 4.75% to 8.5%[48] - Among other receivables and prepayments, toll receivables amounted to 145 million yuan, and deductible input VAT was 488 million yuan[50] - The opening balance of impairment loss allowance for other receivables and prepayments was 110 million yuan, with a reversal of 21.795 million yuan in the current period, resulting in a closing balance of 88.652 million yuan[51] Trade and Other Payables As of June 30, 2025, total trade and other payables were 2.171 billion yuan, a 19.85% decrease from year-end 2024, with trade payables of 35.761 million yuan and other payables of 2.136 billion yuan, primarily comprising construction payables, staff salaries, and benefits Trade and Other Payables (Thousand Yuan (RMB)) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Payables | 35,761 | 202,673 | | Other Payables | 2,135,681 | 2,506,527 | | Total | 2,171,442 | 2,709,200 | - Trade payables are typically settled within 1 to 12 months and are non-interest bearing[53] - Among other payables, construction payables amounted to 1.212 billion yuan, primarily related to the Chengle Expressway and Tianqiong Expressway construction projects[54] Bank and Other Interest-Bearing Borrowings As of June 30, 2025, total bank and other interest-bearing borrowings were 37.763 billion yuan, a slight decrease from year-end 2024, with non-current portion at 36.328 billion yuan and current portion at 1.435 billion yuan, weighted average annual interest rate decreased to 2.79%, and multiple bank loans are secured by service concession arrangements, with some guaranteed by controlling shareholder Shu Dao Investment Bank and Other Interest-Bearing Borrowings (Thousand Yuan (RMB)) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Portion | 1,434,602 | 2,590,518 | | Non-Current Portion | 36,328,249 | 35,835,207 | | Total | 37,762,851 | 38,425,725 | - As of June 30, 2025, the weighted average annual interest rate for bank and other borrowings was 2.79% (compared to 3.55% as of December 31, 2024)[58] - Approximately 28.74 billion yuan of bank loans are secured by service concession arrangements (e.g., tolling rights for Chengle Expressway, Tianqiong Expressway)[60] - Approximately 9.064 billion yuan of bank loans and 102 million yuan of other borrowings are guaranteed by Shu Dao Investment[61] Dividends The Board resolved not to declare an interim dividend for H1 2025, while the 2024 final dividend of RMB 0.29 per share was fully paid on July 4, 2025 - The Board resolved not to declare an interim dividend for H1 2025[62] - The 2024 final dividend of RMB 0.29 per share was fully paid on July 4, 2025[62] Management Discussion and Analysis Performance Overview In H1 2025, amidst a stable macroeconomic environment and external uncertainties, the Group achieved growth in several economic indicators through project advancement, improved management, and cost reduction, despite a 23.30% year-on-year decrease in total revenue to 4.08 billion yuan, with profit attributable to owners increasing by 20.09% to 838 million yuan - In H1 2025, macroeconomic policies showed effectiveness, and economic operations continued a stable and positive trend, but external instability and uncertainties were numerous, leading to insufficient effective demand[63] Key Performance Indicators for H1 2025 (Thousand Yuan (RMB)) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 4,079,978 | 5,319,241 | | Profit Attributable to Owners of the Company | 838,351 | 698,095 | | Basic Earnings Per Share | RMB 0.260 | RMB 0.228 | | Total Assets | 61,322,641 | 61,032,031 (Year-end 2024) | | Net Assets | 20,672,821 | 19,495,626 (Year-end 2024) | Business Review and Analysis This section reviews the Group's toll road and bridge operations, analyzing the impact of economic environment, policy changes, and road network construction on toll revenue, and details the progress of major investment and financing projects such as the Chengle Expressway expansion and Tianqiong Expressway BOT project - In H1 2025, the Group's road toll revenue was 2.274 billion yuan, a 2.25% year-on-year decrease, accounting for 55.73% of operating revenue, an increase of 12 percentage points year-on-year[66] - Regarding the economic environment, China's GDP grew by 5.3% year-on-year in H1, and Sichuan Province's GDP grew by 5.6%, providing a stable foundation for the Group's operations[66] - Policy factors include strict implementation of the 'Green Channel' policy for fresh agricultural products, the Five-Year Action Plan for a Strong Transportation Nation, the continuation of Sichuan Province's expressway toll preferential policies, and the toll exemption policy for hydrogen-powered vehicles[68][69][70][71] - Road network changes and construction impacted traffic diversion on some expressways, such as Chengren Expressway affected by the opening of Tianfu Airport Expressway branch and Tianfu Avenue Renshou section, and Second Ring West Expressway by surrounding capacity contraction and high-speed rail diversion, while Suiguang-Suixi Expressway saw increased toll revenue due to traffic flow transfer from surrounding road upgrades[72][73][74] Operating Performance of Toll Road and Bridge Business H1 2025 Expressway Toll Revenue (Thousand Yuan (RMB)) | Item | H1 2025 | H1 2024 | Increase/Decrease (%) | | :--- | :--- | :--- | :--- | | Chengyu Expressway | 422,012 | 419,848 | 0.52 | | Chengya Expressway | 492,375 | 504,116 | (2.33) | | Chengren Expressway | 402,305 | 433,559 | (7.21) | | Chengle Expressway | 295,986 | 293,275 | 0.92 | | Chengbei Exit Expressway | 52,787 | 50,306 | 4.93 | | Suiguang Expressway | 136,081 | 131,484 | 3.50 | | Suixi Expressway | 89,250 | 85,734 | 4.10 | | Second Ring West Expressway | 382,814 | 407,660 | (6.09) | - In H1 2025, the Group's road toll revenue was approximately 2.274 billion yuan, a 2.25% decrease compared to the same period last year[66] Major Investment and Financing Projects and Significant Acquisitions, Disposals - The Chengle Expressway expansion project has an estimated total investment of 25.15 billion yuan, with cumulative investment of approximately 14.377 billion yuan as of June 30, 2025[75] - The Tianqiong Expressway BOT project has an estimated total investment of approximately 8.685 billion yuan, was fully opened to traffic on September 13, 2024, and had cumulative investment of approximately 7.002 billion yuan as of June 30, 2025[76] Analysis of Operating Results and Financial Position This section analyzes the Group's H1 2025 operating results and financial position, showing increased profit attributable to owners despite lower total revenue, driven by cost control and efficiency, maintaining a stable asset and liability structure, shifting from net cash outflow to inflow, and demonstrating strong borrowing capacity - The Group's operating results show decreased revenue but increased profit attributable to the parent company, while the financial position summary indicates growth in assets and equity, and a decrease in liabilities[78][79] - Finance costs decreased by 22.73%, primarily due to lower loan interest rates[84] - Operating activities generated a net cash inflow of 230 million yuan, a significant improvement from the net outflow in the prior period[96] - The debt-to-capital ratio improved to 66.29% (from 68.06% at year-end 2024)[94] Summary of Operating Results H1 2025 Summary of Operating Results (Thousand Yuan (RMB)) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 4,079,978 | 5,319,241 | | Profit Before Tax | 1,070,209 | 902,973 | | Profit Attributable to Owners of the Company | 838,351 | 698,095 | | Earnings Per Share Attributable to Owners of the Company (RMB) | 0.260 | 0.228 | Summary of Financial Position H1 2025 Summary of Financial Position (Thousand Yuan (RMB)) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 61,322,641 | 61,032,031 | | Total Liabilities | 40,649,820 | 41,536,405 | | Equity Attributable to Owners of the Company | 19,578,018 | 18,404,170 | | Equity Attributable to Owners of the Company Per Share (RMB) | 6.402 | 6.018 | Revenue Analysis Year-on-Year Change in Segment Revenue (Thousand Yuan (RMB)) | Segment | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Expressways | 2,273,610 | 2,325,982 | | Construction Services | 693,687 | 1,783,253 | | Transportation Logistics | 27,300 | 107,614 | | New Energy Technology | 48,628 | 60,567 | - The decrease in construction services revenue was primarily due to reduced construction contract revenue from the Chengle Expressway expansion project and the Tianqiong Expressway BOT project[81] - The decrease in transportation logistics revenue was mainly due to the company suspending the North-to-South Grain Transportation project[81] Analysis of Other Income and Gains - Total other income and gains decreased by 13.30% year-on-year, primarily affected by reduced deposit interest income and changes in the fair value of financial assets[82] Operating Expenses Analysis Year-on-Year Change in Operating Expenses (Thousand Yuan (RMB)) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Construction Contract Costs | 650,437 | 1,760,325 | | Depreciation and Amortization Expenses | 641,072 | 641,127 | | Cost of Sales for Oil Products and Other Businesses | 878,477 | 987,483 | | Charging Service Costs | 12,881 | 24,653 | - Depreciation and amortization expenses remained largely stable, primarily due to the full amortization of the Chengbei Exit Expressway concession right on June 30, 2024, resulting in a year-on-year decrease in amortization expense[83] Finance Costs Analysis - Total finance costs decreased by 22.73% year-on-year, primarily due to lower loan interest rates in the current period[84] Income Tax Analysis - Income tax expense increased by 10.18% year-on-year to 188 million yuan, primarily due to increased profit in the current period[85] Profit Analysis Year-on-Year Change in Segment Profit (Thousand Yuan (RMB)) | Segment | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Expressways | 1,069,331 | 955,192 | | Construction Services | 35,261 | 38,021 | | Transportation Logistics | 2,155 | 346 | | New Energy Technology | 21,007 | 15,289 | | Others | 32,415 | 20,242 | - Expressway segment profit increased by 11.95%, primarily due to reduced finance costs and lower amortization of the Chengbei Exit Expressway concession right[86] - Transportation logistics segment profit significantly increased by 522.83%, mainly due to increased investment income from associate Chengdu Jiaotou International Supply Chain Management Co., Ltd[87] Financial Position Analysis (Assets and Liabilities) - Non-current assets increased by 1.23% from year-end 2024, primarily due to an 899 million yuan increase in the carrying value of service concession arrangements and a 27.376 million yuan increase in investments in associates and joint ventures[88][89] - Current assets decreased by 9.88% from year-end 2024, mainly due to a 467 million yuan decrease in cash and cash equivalents, as loan repayments exceeded new borrowings[90] - Financial assets designated at fair value through other comprehensive income increased by 65.93 million yuan, primarily due to fair value changes in China Everbright Bank equity investments and China Merchants Fund REITs[89] Capital Structure Capital Structure (Thousand Yuan (RMB)) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 61,322,641 | 61,032,031 | | Total Liabilities | 40,649,820 | 41,536,405 | | Debt-to-Capital Ratio | 66.29% | 68.06% | Cash Flow Analysis Cash Flow (Thousand Yuan (RMB)) | Activity Type | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash Inflow/(Outflow) from Operating Activities | 230,170 | (63,962) | | Net Cash Outflow from Investing Activities | (8,228) | (111,637) | | Net Cash Outflow/(Inflow) from Financing Activities | (688,689) | 991,721 | | Cash and Cash Equivalents at End of Period | 2,490,509 | 2,957,256 (Year-end 2024) | - The increase in net cash inflow from operating activities was primarily due to higher profit before tax and reduced cash outflow from new service concession arrangements[96] - The increase in net cash outflow from financing activities was mainly due to a significant increase in cash outflows for repayment of bank loans, other loans, medium-term notes, and lease principal payments[98] Foreign Exchange Fluctuation Risk - Except for purchasing HKD to distribute dividends to H-shareholders, the Group's operating income and expenses and capital expenditures are primarily settled in RMB, thus foreign exchange fluctuations have no material impact on the Group's performance[99] Borrowing and Repayment Capacity Borrowing Composition and Repayment Terms (Thousand Yuan (RMB)) | Item | Total | Within 1 Year | 1 to 5 Years | Over 5 Years | | :--- | :--- | :--- | :--- | :--- | | Bank Loans | 35,414,948 | 1,209,940 | 9,911,139 | 24,293,869 | | Medium-Term Notes and Corporate Bonds | 2,100,000 | 100,000 | 2,000,000 | – | | Other Borrowings and Lease Liabilities | 214,401 | 91,160 | 117,306 | 5,935 | | Accrued Interest | 33,502 | 33,502 | – | – | | Total | 37,762,851 | 1,434,602 | 12,028,445 | 24,299,804 | - The Group has obtained and is applying for conditional loan credit lines from financial institutions totaling 32.26 billion yuan for the next one to two years[101] - The Group has formed syndicates with several banks to provide medium- and long-term borrowings for the Chengren Expressway, Suiguang Expressway, Suixi Expressway, Chengle Expressway expansion, and Tianqiong Expressway BOT projects[101][102][103][104] Pledge of Assets Asset Pledge Status (Thousand Yuan (RMB)) | Expressway | Net Carrying Value of Tolling Rights | Amount of Pledged Loans | | :--- | :--- | :--- | | Chengle Expressway | 14,712,498 | 7,489,870 | | Chengren Expressway | 5,590,107 | 734,958 | | Suiguang-Suixi Expressway | 10,781,813 | 5,707,000 | | Tianqiong Expressway | 7,002,338 | 5,743,740 | | Second Ring West Expressway | 12,839,915 | 9,064,000 | | Total | 50,926,671 | 28,739,568 | Business Development Plan The company's H2 2025 work plan includes focusing on core businesses (accelerating Chengle expansion, expanding road asset scale), seizing policy opportunities for diversified development (capital operations, service area operations, hydrogen and new energy businesses), establishing market-oriented operating concepts, building a refined cost control system, and strengthening safety and risk prevention - Focus on core businesses, accelerate the Chengle Expressway expansion project, and expand road asset scale through strategies such as original road upgrade and expansion, asset integration, and acquisition of quality road assets[107] - Seize policy opportunities, leverage the investment platform for diversified industrial layout to deepen capital operations, explore market-oriented paths for hydrogen energy applications, and expand innovative new energy business models such as energy storage and power sales[108] - Establish market-oriented operating concepts, with value creation as the core, build a refined resource allocation system, and cultivate proactive market expansion capabilities[109] - Continuously deepen the 'cost reduction and efficiency improvement' strategy, promote the implementation of a standardized cost control system, and strengthen the awareness of 'business-finance integration'[110] - Strengthen the bottom line of safety and risk prevention, enhance hazard investigation and emergency response, optimize strategic positioning, and build a risk resistance system supported by core businesses[111] Purchase, Redemption or Sale of Listed Securities of the Company and its Subsidiaries During the reporting period, neither the company nor its subsidiaries purchased, redeemed, or sold any of the company's listed securities, and as of the end of the reporting period, the company held no treasury shares - During the reporting period, neither the company nor its subsidiaries purchased, redeemed, or sold any listed securities[112] - As of the end of the reporting period, the company held no treasury shares[113] Corporate Governance and Other Information Employees, Remuneration and Training As of June 30, 2025, the Group had 4,478 employees, with production staff being the largest group, remuneration linked to operating performance, strict adherence to labor protection policies, and emphasis on multi-level training to enhance overall employee quality Group Employee Composition (As of June 30, 2025) | Category | Number of Employees | | :--- | :--- | | Total Employees | 4,478 | | Production Personnel | 2,849 | | Technical Personnel | 1,082 | | Financial Personnel | 106 | | Administrative Personnel | 441 | - Employee remuneration is linked to the company's operating performance, comprising basic salary and performance-based pay, adhering to the policy of 'salary based on position, adjusted with position changes, and rewarded by performance'[116] - The company fully contributes to employees' pension, medical, unemployment, work injury, maternity insurance, critical illness mutual aid supplementary insurance, and accidental injury insurance, as well as housing provident fund and enterprise annuity[117] - During the reporting period, the Group organized 6,674 training sessions to enhance employees' overall quality and professional skills[118] Corporate Governance The company has established a governance structure comprising the general meeting of shareholders, the Board of Directors, and management, with specialized committees such as the Audit Committee and Strategy and Sustainable Development Committee, complying with the HKEX Corporate Governance Code and CSRC Guidelines on Corporate Governance of Listed Companies, and adopting a code of conduct for directors' and supervisors' securities transactions no less exacting than the Model Code - The company has established a comprehensive corporate governance structure, including the general meeting of shareholders, the Board of Directors, management, and specialized committees under the Board (Audit, Strategy and Sustainable Development, Nomination, Remuneration and Appraisal Committees)[119] - The company complies with the requirements of the HKEX Corporate Governance Code and the CSRC Guidelines on Corporate Governance of Listed Companies, and has adopted a code of conduct for directors' and supervisors' securities transactions no less exacting than the Model Code[120][122] - The Audit Committee, composed of three independent non-executive directors, has reviewed and confirmed the Group's unaudited interim condensed financial information and interim results report for the six months ended June 30, 2025[121] Events After Reporting Period In accordance with the new Company Law and CSRC regulations, the company proposed to abolish the Supervisory Committee and transfer its functions to the Board's Audit Committee, which was approved at the EGM on August 13, 2025, with four supervisors ceasing their duties on the same day - In accordance with the new Company Law and CSRC regulations, the company proposed to abolish the Supervisory Committee and transfer its functions to the Board's Audit Committee[123] - The proposal was approved at the EGM on August 13, 2025, and Wang Yao, Gao Ying, Li Tao, and Lu Xiaoyan ceased to be supervisors on the same day[124] Major Transactions and Connected Transactions The Board resolved to bid for the Chengya Expressway expansion project and entered into cooperation agreements with China Huaxi, Jiaojian Group, Luqiao Group, and Gaolu Information to establish a project company, with an estimated total investment of approximately 28.548 billion yuan, and the project company was established on August 13, 2025, constituting a major and connected transaction approved by independent shareholders - The Board resolved to bid for the Chengya Expressway expansion project and has become the first-ranked successful bidder[125][126] - To develop the Chengya Expressway expansion project, the company entered into cooperation agreements with China Huaxi, Jiaojian Group, Luqiao Group, and Gaolu Information to establish a project company[126] - The Chengya Expressway expansion project has a total length of 159.115 kilometers and an estimated total investment of approximately 28.548 billion yuan, with the project company established on August 13, 2025[127] Publication of Interim Report The company's interim report for the six months ended June 30, 2025, will be published on the HKEX and the company's website in due course in accordance with the Listing Rules and Articles of Association, with printed copies dispatched to shareholders as required - The interim report will be published on the HKEX and the company's website in due course in accordance with the Listing Rules and Articles of Association[128] Definitions Definitions This section provides definitions for key terms, road project names, company and subsidiary names, and other related concepts used in the report to ensure clear understanding of the content - This section provides definitions for key terms, road project names, company and subsidiary names, and other related concepts used in the report[129][130][131][132][133][134][135]