齐鲁高速(01576) - 2025 - 中期业绩

Definitions Definition Content This section defines key terms and abbreviations used in the report, ensuring clarity and consistency - The report defines several key terms, including "Expressway Business" (the business of maintaining, operating, and managing the Ji-He Expressway, De-Shang Expressway, and Xin-Nan Expressway) and "Reconstruction and Expansion Project" (the Ji-He Expressway Reconstruction and Expansion Project), providing a foundation for understanding the company's business and financial reports[5][7] Corporate Information Company Basic Information This section lists the company's basic information, including its registered name, legal representative, board members, and key advisors - The company's legal representative is Mr Wei Yong, its H-share stock code is 01576, and its website is www.qlecl.com[10](index=10&type=chunk)[19] - The Board of Directors includes executive, non-executive, and independent non-executive directors, with Audit, Remuneration and Appraisal, Nomination, and Strategy Committees[14][15] - The international auditor is SHINEWING (HK) CPA Limited, and the domestic auditor is ShineWing Certified Public Accountants (Special General Partnership)[18] Management Discussion and Analysis Financial Review Total revenue decreased significantly due to lower construction income, while expressway business revenue and gross margin improved markedly Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB'000) | H1 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,067,397 | 2,807,598 | -61.98 | | Expressway business revenue | 822,091 | 483,503 | +70.03 | | Construction and other business revenue | 242,931 | 2,323,103 | -89.54 | | Rental income | 2,375 | 992 | +139.42 | | Cost of sales | 651,773 | 2,451,324 | -73.41 | | Gross profit | 415,624 | 356,274 | +16.66 | | Gross profit margin | 38.94% | 12.69% | +26.25 p.p. | | Other income and gains | 41,836 | 53,580 | -21.92 | | Administrative expenses | 49,702 | 38,840 | +28.00 | | Finance costs | 141,346 | 34,082 | +314.72 | | Net profit attributable to the parent company | 200,408 | 248,588 | -19.38 | | EBITDA | 732,883 | 482,363 | +51.93 | - Following the opening of the Ji-He Expressway Reconstruction and Expansion Project, toll revenue surged by 165.46% and traffic volume increased by 146.15%, while the De-Shang and Xin-Nan Expressways saw declines due to traffic diversion[22][23] - Finance costs increased significantly by 314.72%, primarily due to the capitalization of interest on loans for the Ji-He Expressway Reconstruction and Expansion Project ceasing[32] - EBITDA grew by 51.93%, mainly driven by the increase in toll fees from the Ji-He Expressway[36] - As of June 30, 2025, the Group's total loans amounted to RMB 11,350,908 thousand, with a capital-to-liability ratio of 64.54%[38] - During the reporting period, the Group had a total of 673 employees, with total staff costs of approximately RMB 92,168 thousand[41] Business Review The Group's core business remains expressway operations, with significant growth in traffic and toll revenue from the expanded Ji-He Expressway - The Ji-He Expressway Reconstruction and Expansion Project's full reopening led to a substantial increase in traffic and toll revenue, with average daily traffic reaching 76,800 vehicles and toll revenue of approximately RMB 610,931 thousand, a 165.46% YoY increase[46][47] - Toll revenue and traffic volume for the De-Shang Expressway (Liaocheng to Fanxian section) and Xin-Nan Expressway decreased due to traffic diversion from the reopened Ji-He Expressway and national highways[46][51] - Construction business revenue, mainly from the Ji-He Expressway project, was approximately RMB 27,982 thousand during the period, with industrial product sales also included in this segment[56] - Rental income, primarily from advertising billboards along the Ji-He Expressway, rose by 139.42% YoY to RMB 2,375 thousand[57] Expressway Business The expanded Ji-He Expressway drove significant growth, while other expressways experienced declines due to network changes and traffic diversion Average Daily Traffic Volume During the Reporting Period | Expressway | Average Daily Traffic Volume (vehicles) | | :--- | :--- | | Ji-He Expressway | 76,810 | | De-Shang Expressway (Liaocheng to Fanxian Section) | 46,718 | | Xin-Nan Expressway | 8,228 | - A new trial toll standard for the reconstructed section of the Ji-He Expressway has been in effect since December 20, 2024, and is valid until December 19, 2026[54] Construction and Other Businesses This segment's revenue includes construction projects, engineering services, and trade of industrial products, with rental income from advertising - During the reporting period, revenue from construction and industrial product sales was approximately RMB 242,931 thousand, with the Ji-He Expressway project contributing about RMB 27,982 thousand in construction revenue[56] - There are 69 operational advertising billboards along the Ji-He Expressway, and while rental income is a small portion of total revenue, the company is actively cultivating new growth areas[57] Prospects The company will focus on enhancing its core business, accelerating industrial transformation, and improving management to achieve high-quality growth - In its core business, the company is expanding "Expressway+" value-added services, leading to significant revenue recovery for the Ji-He Expressway post-expansion[58] - In transformation, the wind power hybrid tower project has achieved a full-chain breakthrough, with the Jining base entering mass production and order delivery[58] - In market expansion, the transportation materials and construction engineering sectors won bids for central enterprise projects, successfully entering markets in Xinjiang, Jiangsu, Henan, Shanxi, and Hunan[58] - In management, the company promoted digital transformation, with subsidiary Qilu Expressway Assembly recognized as a provincial "specialized, refined, distinctive, and innovative" SME[59] - The strategy for the second half of the year includes enhancing core business efficiency, accelerating industrial transformation, upgrading development quality, and boosting management vitality[60][62] Events After the Reporting Period As of the date of this report, the Group has no material events after the reporting period to disclose - The Group had no material events to disclose after the reporting period as of the date of this report[63] Publication and Despatch of Interim Report This interim report is available on the HKEXnews and company websites and will be sent to shareholders who have requested a printed copy - This report has been published on the HKEXnews website (www.hkexnews.hk) and the Company's website (www.qlecl.com)[64](index=64&type=chunk) Other Information Share Capital As of June 30, 2025, the company's total issued share capital was RMB 2 billion, comprising 2 billion H shares of RMB 1.00 each - As of June 30, 2025, the company's total issued share capital was RMB 2 billion, consisting of 2 billion H shares[66] Interests and Short Positions of Substantial Shareholders and Other Persons in the Shares of the Company This section discloses the interests and short positions of substantial shareholders in the company's shares as of June 30, 2025 Substantial Shareholders' Holdings (as of June 30, 2025) | Shareholder Name | Number of Shares Held | Approximate Percentage of Total Issued Share Capital | | :--- | :--- | :--- | | Shandong Hi-Speed | 778,500,000 | 38.93% | | COSCO SHIPPING (Hong Kong) Co., Limited | 600,000,000 | 30.00% | | Jiaxuan Holdings Limited | 173,919,000 | 8.70% | | Guoneng Power Technology Engineering Co., Ltd. | 121,500,000 | 6.08% | | CITIC-Prudential Life Insurance Company Limited | 103,750,000 | 5.19% | - Shandong Hi-Speed Group indirectly holds approximately 38.93% of the company's shares through its subsidiary Shandong Hi-Speed, making it the controlling shareholder[9][67][70] Interests and Short Positions of Directors, Supervisors and Chief Executive in the Shares, Underlying Shares and Debentures of the Company and its Associated Corporations As of June 30, 2025, no director, supervisor, or chief executive had any disclosable interests or short positions in the company's securities - As of June 30, 2025, no directors, supervisors, or chief executives of the company had any interests or short positions requiring disclosure under the Securities and Futures Ordinance[71] Repurchase, Sale and Redemption of the Company's Listed Securities During the reporting period, neither the company nor its subsidiaries repurchased, sold, or redeemed any of the company's listed securities - During the reporting period, the company did not engage in any repurchase, sale, or redemption of its listed securities and held no treasury shares[72] Continuing Connected Transactions during the Reporting Period This section discloses the actual transaction amounts of continuing connected transactions with Shandong Hi-Speed Group during the period Continuing Connected Transactions in H1 2025 | Continuing Connected Transaction | Actual Transaction Amount for the Period (RMB'000) | 2025 Annual Cap (RMB'000) | | :--- | :--- | :--- | | Ji-He Expressway Land Lease Rent | 2,310 | 2,310 | | Ji-He Expressway Property Lease Rent | 450 | 450 | | Service fees paid under Comprehensive Services Framework Agreement | 109,731 | 600,000 | | Maximum daily deposit balance under Financial Services Framework Agreement | 157,300 | 1,000,000 | | Daily cash balance for Cross-border Centralized Fund Operation Management | 90,000 | 140,000 | | Revenue from services provided under Service Provision Framework Agreement | 27,200 | 180,000 | | Procurement fees paid under Comprehensive Procurement Framework Agreement | 12,760 | 120,000 | | Sales revenue under Comprehensive Sales Framework Agreement | 68,650 | 500,000 | Changes in Directors, Supervisors and Senior Management Several changes occurred among the company's directors, supervisors, and senior management due to work adjustments and retirement - Mr Su Xiaodong, Mr Peng Hui, Mr Liu Qiang, and Mr Wang Shen'an resigned from their respective positions due to retirement or work adjustments[75] - Mr Duan Peng was appointed as General Manager and Executive Director, while Mr Ren Wei, Mr Gao Yongjun, and Mr Chen Xiulin were appointed to the Board[75][76] - After the reporting period, Mr Kang Jian resigned as a Non-executive Director, Mr Wang Zhenjiang resigned as Chairman and Executive Director, and Mr Wei Yong was appointed as Executive Director, Chairman, Legal Representative, and Authorized Representative[78][79] Material Litigation and Arbitration During the reporting period, the Group was not involved in any material litigation, arbitration, or claims - The Group was not involved in any material litigation, arbitration, or claims during the reporting period[82] Corporate Governance The Group is committed to high standards of corporate governance and has complied with the applicable provisions of the Corporate Governance Code - The Board is responsible for performing corporate governance duties, including developing policies, reviewing director training, and monitoring legal compliance[83] - The company has complied with the applicable code provisions set out in Part 2 of the Corporate Governance Code throughout the reporting period[83] Compliance with the Model Code All directors and supervisors have confirmed their compliance with the required standards for securities transactions set out in the Model Code - All directors and supervisors have complied with the required standards for securities transactions by directors as set out in the Model Code during the reporting period[86] Interim Dividend The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the declaration of an interim dividend for the six months ended June 30, 2025[87] Audit Committee The company's Audit Committee has reviewed the Group's unaudited interim financial report for the six months ended June 30, 2025 - The Audit Committee has reviewed the Group's unaudited interim financial report for the six months ended June 30, 2025[88] Review Report on the Condensed Consolidated Financial Statements Conclusion of the Review Report The auditor concluded that nothing has come to their attention that causes them to believe the financial statements are not prepared in accordance with HKAS 34 - The auditor, SHINEWING (HK) CPA Limited, issued an unmodified conclusion on the condensed consolidated financial statements[91][93] - The report notes that the comparative financial information for 2024 was reviewed by another auditor who issued an unmodified conclusion, and the annual consolidated financial statements for 2024 were audited by the same auditor who issued an unmodified opinion[92] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Overview of Profit or Loss and Comprehensive Income Revenue decreased by 61.98% year-on-year, while gross profit grew by 16.66%, with basic and diluted earnings per share at RMB 0.10 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30, 2025) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Revenue | 1,067,397 | 2,807,598 | | Cost of sales | (651,773) | (2,451,324) | | Gross profit | 415,624 | 356,274 | | Other income and gains | 41,836 | 53,580 | | Administrative expenses | (49,702) | (38,840) | | Finance costs | (141,346) | (34,082) | | Profit before tax | 265,376 | 334,469 | | Income tax expense | (67,172) | (81,604) | | Profit and total comprehensive income for the period | 198,204 | 252,865 | | Profit attributable to owners of the Company | 200,408 | 248,588 | | Earnings per share (RMB) | 0.10 | 0.12 | Condensed Consolidated Statement of Financial Position Overview of Financial Position Non-current assets increased slightly while current assets and liabilities decreased, resulting in a reduction in net current liabilities Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Non-current assets | 19,052,392 | 19,013,898 | | Current assets | 1,916,198 | 2,061,720 | | Current liabilities | 4,021,632 | 4,851,534 | | Net current liabilities | (2,105,434) | (2,789,814) | | Total assets less current liabilities | 16,946,958 | 16,224,084 | | Non-current liabilities | 10,723,267 | 9,999,458 | | Net assets | 6,223,691 | 6,224,626 | | Equity attributable to owners of the Company | 4,083,347 | 4,095,693 | | Total equity | 6,223,691 | 6,224,626 | - Intangible assets (mainly toll rights) remain the largest non-current asset, valued at RMB 16,283,665 thousand as of June 30, 2025[96] - Trade and bills payables decreased significantly from RMB 3,379,127 thousand on December 31, 2024, to RMB 2,302,197 thousand on June 30, 2025[96] Condensed Consolidated Statement of Changes in Equity Overview of Changes in Equity Equity attributable to owners of the company decreased slightly, mainly due to profit for the period, interest payments on perpetual bonds, and declared final dividends Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, 2025) | Indicator | June 30, 2025 (RMB'000) | June 30, 2024 (RMB'000) | | :--- | :--- | :--- | | Equity attributable to owners of the Company at beginning of period | 4,095,693 | 3,936,895 | | Profit for the period | 200,408 | 248,588 | | Interest paid on perpetual bonds | (23,639) | (23,692) | | Final dividend declared | (200,000) | (300,000) | | Equity attributable to owners of the Company at end of period | 4,083,347 | 3,872,659 | | Total equity at end of period | 6,223,691 | 5,981,189 | - The declared final dividend for 2024 was RMB 200,000 thousand, lower than the RMB 300,000 thousand declared for 2023[99] Condensed Consolidated Statement of Cash Flows Overview of Cash Flows Operating activities shifted from a net inflow to an outflow, while cash used in investing activities decreased significantly Condensed Consolidated Statement of Cash Flows (For the six months ended June 30, 2025) | Activity Type | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Net cash flows (used in) from operating activities | (419,283) | 196,467 | | Net cash flows used in investing activities | (71,872) | (1,537,321) | | Net cash flows from financing activities | 595,125 | 1,919,922 | | Net increase in cash and cash equivalents | 103,970 | 579,068 | | Cash and cash equivalents at end of period | 320,661 | 978,077 | - Net cash flow from operating activities changed from a net inflow of RMB 196,467 thousand in the prior period to a net outflow of RMB 419,283 thousand in the current period[101] - Cash outflow from investing activities decreased substantially, mainly because expenditure on property, plant, and equipment and intangible assets dropped from RMB 2,022,005 thousand to RMB 86,416 thousand[102] Notes to the Condensed Consolidated Financial Information General Information The company was incorporated in China in 2004, listed in Hong Kong in 2018, and its main business is expressway operation and management - The company was registered in China on January 6, 2004, and listed on the Main Board of the Hong Kong Stock Exchange on July 19, 2018[103] - The toll period for the Ji-He Expressway has been extended by 25 years, from September 25, 2034, to September 25, 2049[103] Basis of Preparation The financial statements are prepared in accordance with HKAS 34, and the directors believe the company can continue as a going concern - The condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and the applicable disclosure requirements of the Listing Rules[105] - Despite having net current liabilities, the directors believe the Group has sufficient undrawn bank credit facilities to continue as a going concern[105] Accounting Policies The accounting policies adopted are consistent with the 2024 annual financial statements, with no material impact from new HKFRS amendments - The accounting policies adopted in the condensed consolidated financial statements are consistent with those used in the annual consolidated financial statements for the year ended December 31, 2024[106] - The application of amendments to Hong Kong Financial Reporting Standards during the interim period had no material effect on the Group's financial performance and position[107] Operating Segment Information The Group operates as a single reportable segment as all its operations are located in Mainland China - The Group has only one single reportable operating segment, with all operations located in China[108] - All external revenue is derived from customers in Mainland China, and all non-current assets are located in Mainland China[109] - During the reporting period, no revenue from a single customer (excluding construction and upgrade service revenue) accounted for 10% or more of the Group's total revenue[110] Revenue The Group's revenue is primarily derived from contracts with customers, including expressway and construction businesses, plus minor rental income Revenue Source Analysis (For the six months ended June 30, 2025) | Revenue Source | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Revenue from contracts with customers | 1,065,022 | 2,806,606 | | Rental income | 2,375 | 992 | | Total | 1,067,397 | 2,807,598 | Disaggregation of Revenue from Contracts with Customers (For the six months ended June 30, 2025) | Business Type | Services transferred at a point in time (RMB'000) | Services transferred over time (RMB'000) | Total (RMB'000) | | :--- | :--- | :--- | :--- | | Expressway business | 822,091 | – | 822,091 | | Construction and other businesses | 187,737 | 55,194 | 242,931 | | Total | 1,009,828 | 55,194 | 1,065,022 | Profit Before Tax The Group's profit before tax is stated after charging or crediting various items, including depreciation, amortization, and impairment provisions Items Charged/Credited to Profit Before Tax (For the six months ended June 30, 2025) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 112,060 | 22,738 | | Amortisation of intangible assets | 209,981 | 87,336 | | Net provision for (reversal of) impairment of financial and contract assets | (735) | 1,730 | Income Tax Expense The Group's income tax expense primarily consists of PRC Enterprise Income Tax calculated at the statutory rate of 25% Income Tax Expense Analysis (For the six months ended June 30, 2025) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Current tax - PRC Enterprise Income Tax | 49,102 | 64,296 | | Under (over) provision in prior periods | 419 | (783) | | Deferred tax | 17,651 | 18,091 | | Total | 67,172 | 81,604 | - The PRC current income tax liability is calculated at the statutory rate of 25%[115] Dividends A final dividend for 2024 of RMB 0.100 per share was declared, but no interim dividend is proposed for the first half of 2025 - A final dividend for 2024 of RMB 0.100 per ordinary share, totaling RMB 200,000 thousand, was approved at the AGM on June 26, 2025[117] - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[118] Earnings Per Share Basic and diluted earnings per share for the six months ended June 30, 2025, were RMB 0.10, based on 2,000,000,000 weighted average shares - Basic and diluted earnings per share were RMB 0.10, calculated based on a weighted average of 2,000,000,000 ordinary shares[119] - The Group had no potential dilutive ordinary shares in issue during the period ended June 30, 2025[119] Property, Plant and Equipment The carrying amount of property, plant and equipment decreased slightly, with additions being offset by depreciation and disposals Carrying Amount of Property, Plant and Equipment (For the six months ended June 30, 2025) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Carrying amount at beginning of period | 2,094,083 | 413,801 | | Additions | 66,796 | 5,513 | | Depreciation | (112,060) | (22,738) | | Disposals | (4,473) | (11) | | Carrying amount at end of period | 2,044,346 | 396,565 | Intangible Assets The carrying amount of intangible assets decreased slightly due to amortization and disposals, despite new additions during the period Carrying Amount of Intangible Assets (For the six months ended June 30, 2025) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Carrying amount at beginning of period | 16,503,212 | 10,570,335 | | Additions | 19,620 | 2,216,707 | | Amortisation | (209,981) | (87,336) | | Disposals | (29,186) | – | | Carrying amount at end of period | 16,283,665 | 12,699,706 | Trade and Bills Receivables Total trade and bills receivables increased slightly, with receivables aged within one year constituting the largest portion Trade and Bills Receivables (As of June 30, 2025) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Net trade receivables | 540,114 | 537,448 | | Bills receivable | 32,920 | 4,663 | | Total | 573,034 | 542,111 | Ageing Analysis of Trade Receivables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Within 1 year | 435,748 | 427,321 | | 1 to 2 years | 22,691 | 28,371 | | 2 to 3 years | 6,003 | 5,012 | | Over 3 years | 75,672 | 76,744 | Trade and Bills Payables Total trade and bills payables decreased significantly, with amounts due to related parties also showing a substantial reduction Ageing Analysis of Trade and Bills Payables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Within 1 year | 2,210,752 | 3,329,396 | | 1 to 2 years | 54,168 | 11,919 | | 2 to 3 years | 12,539 | 37,812 | | Over 3 years | 24,738 | – | | Total | 2,302,197 | 3,379,127 | - Amounts due to related parties totaled RMB 123,527 thousand, a significant decrease from RMB 1,125,922 thousand as of December 31, 2024[125] Interest-bearing Bank and Other Borrowings The Group's total interest-bearing borrowings increased, primarily driven by non-current bank loans with repayment terms extending beyond five years Interest-bearing Bank and Other Borrowings (As of June 30, 2025) | Type | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Current borrowings | 883,334 | 841,208 | | Non-current borrowings | 10,467,574 | 9,767,581 | | Total | 11,350,908 | 10,608,789 | Repayment Schedule of Bank Loans (As of June 30, 2025) | Repayment Period | June 30, 2025 (RMB'000) | | :--- | :--- | | Within one year | 849,513 | | In the second year | 521,995 | | In the third to fifth years | 862,279 | | After five years | 8,538,061 | - Secured bank loans of RMB 116,106 thousand are subject to a covenant requiring the company's gearing ratio not to exceed 75%[128] Provisions The carrying amount of provisions increased during the period due to additional provisions being made Movement in Provisions (As of June 30, 2025) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Carrying amount at beginning of period/year | 48,056 | 111,164 | | Additional provisions | 11,000 | 9,642 | | Utilisation of provisions | – | (72,750) | | Carrying amount at end of period/year | 59,056 | 48,056 | Share Capital As of June 30, 2025, the company's issued and fully paid ordinary share capital remained unchanged at RMB 2,000,000 thousand Share Capital (As of June 30, 2025) | Item | Number of issued shares ('000) | Share Capital (RMB'000) | | :--- | :--- | :--- | | As of June 30, 2025 | 2,000,000 | 2,000,000 | Commitments The Group has made several contractual commitments, primarily related to the Ji-He Expressway project and other construction and technology projects Contractual Commitments (As of June 30, 2025) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Ji-He Expressway reconstruction and expansion project | 185,845 | 230,654 | | Qilu Assembly construction in progress | 139,604 | 114,177 | | Qilu Expressway digitalization construction project | 19,985 | – | | Purchase of equipment for energy technology station installation project | 28,800 | – | | Total | 374,234 | 344,831 | Related Party Transactions The Group engaged in numerous transactions with related parties, including its ultimate holding company and fellow subsidiaries - Related parties include the ultimate holding company Shandong Hi-Speed Group Co., Ltd., the controlling shareholder Shandong Hi-Speed Company Limited, and their numerous fellow subsidiaries[132][136][137][138][139] Overview of Transactions with Related Parties (For the six months ended June 30, 2025) | Transaction Type | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Construction service income | 27,177 | 6,267 | | Sales of goods | 68,654 | 151,525 | | Interest income | 93 | 12 | | Purchases of goods | 12,759 | 94,293 | | Employee service fees | 7,774 | 7,483 | | Interest expenses | 7,606 | 8,677 | | Land lease | 5,774 | 5,774 | | Maintenance services | 7,793 | 139 | | Construction costs and supervision fees | 84,891 | 805,869 | - As of June 30, 2025, fees payable to related parties for service commitments amounted to approximately RMB 345,390 thousand[143] Outstanding Balances with Related Parties (As of June 30, 2025) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Cash and cash equivalents (associate of controlling shareholder) | 38,940 | 157,299 | | Trade and bills receivables (fellow subsidiaries) | 124,841 | 88,862 | | Contract assets (fellow subsidiaries) | 83,353 | 49,730 | | Trade and bills payables (fellow subsidiaries) | 111,556 | 1,112,930 | | Other payables and accruals (ultimate holding company) | 37,121 | 20,233 | | Dividends payable (ultimate holding company) | 77,850 | – | | Interest-bearing borrowings (ultimate holding company) | 563,017 | 582,282 | - The Group has a service agreement with Shandong Hi-Speed Group for cross-border centralized fund operation management, with a daily deposit balance not exceeding RMB 140 million, for which no service fee is charged[146] Fair Value of Financial Instruments Management considers the carrying amounts of financial instruments to approximate their fair values due to their short-term nature - Management believes the carrying amounts of short-term financial instruments approximate their fair values[147] - The fair values of non-current financial instruments, calculated by discounting future cash flows, also approximate their carrying amounts[147]