福建高速(600033) - 2025 Q2 - 季度财报

Important Notice This section provides key assurances regarding the report's accuracy and highlights forward-looking statements and investment risks - The company's board of directors, directors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false records, misleading statements, or major omissions[3] - This semi-annual report has not been audited[5] - The company will not conduct profit distribution or capital reserve capitalization during the reporting period[6] - Forward-looking statements regarding future plans and development strategies in this report do not constitute a substantive commitment to investors, who should be aware of investment risks[7] Section I Definitions This section defines key terms and entities used throughout the report, including the company and its major shareholders - “Company” or “the Company” refers to Fujian Development Expressway Co., Ltd. and its subsidiaries[13] - “Provincial Expressway Group” refers to Fujian Provincial Expressway Group Co., Ltd., the company's controlling shareholder[13] - The report clarifies abbreviations for major expressway sections such as Quanzhou-Xiamen Expressway, Fuzhou-Quanzhou Expressway, Luoyuan-Ningde Expressway, and Punan Expressway[13] Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, stock profile, and key financial performance metrics Company Information This section discloses the company's Chinese name, abbreviation, foreign name, and legal representative information - The company's Chinese name is Fujian Development Expressway Co., Ltd., abbreviated as Fujian Expressway[16] - The company's legal representative is Fang Xiaodong[16] Contact Person and Information This section provides the names, contact addresses, telephone numbers, fax, and email addresses of the Board Secretary and Securities Affairs Representative - The Board Secretary is Yang Fan, and the Securities Affairs Representative is Xiong Chongyang[17] - The company's contact number is 0591-38350008, and email is stock@fjgs.com.cn[17] Brief Introduction to Changes in Basic Information This section discloses the company's registered address, office address, and website, noting no changes to the registered address during the reporting period - The company's registered address is 26th Floor, Fujian Transportation Comprehensive Building, No. 18 Dongshui Road, Fuzhou City, Fujian Province, with no historical changes[18] - The company's website is www.fjgs.com.cn[18](index=18&type=chunk) Brief Introduction to Changes in Information Disclosure and Document Availability Locations This section specifies the company's chosen information disclosure newspaper, the website for semi-annual reports, and the document availability location - The company's designated information disclosure newspaper is Securities Times, and the website for semi-annual reports is www.sse.com.cn[19](index=19&type=chunk) Company Stock Overview This section introduces the company's stock type, listing exchange, stock abbreviation, and code - The company's A-shares are listed on the Shanghai Stock Exchange, with stock abbreviation “Fujian Expressway” and stock code 600033[20] Key Accounting Data and Financial Indicators This section details the company's key accounting data and financial indicators for the reporting period, including revenue, net profit, EPS, and ROE, with year-over-year comparisons Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) (CNY) | Prior Period (CNY) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,485,009,409.39 | 1,476,769,386.49 | 0.56 | | Total Profit | 877,781,116.88 | 871,207,219.03 | 0.75 | | Net Profit Attributable to Shareholders of Listed Company | 545,665,082.90 | 531,121,028.78 | 2.74 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Items) | 548,030,400.18 | 525,854,460.77 | 4.22 | | Net Cash Flow from Operating Activities | 1,242,858,753.08 | 928,480,318.30 | 33.86 | | Period-End Indicators | Current Period-End (CNY) | Prior Year-End (CNY) | Period-End Change (%) | | Net Assets Attributable to Shareholders of Listed Company | 12,276,528,141.65 | 11,651,861,644.45 | 5.36 | | Total Assets | 17,561,351,947.21 | 17,288,268,309.17 | 1.58 | Key Financial Indicators for H1 2025 | Key Financial Indicator | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.1988 | 0.1935 | 2.74 | | Basic EPS Excluding Non-Recurring Items (CNY/share) | 0.1997 | 0.1916 | 4.23 | | Weighted Average Return on Net Assets (%) | 4.58 | 4.66 | Decrease of 0.08 percentage points | | Weighted Average ROE Excluding Non-Recurring Items (%) | 4.60 | 4.61 | Decrease of 0.01 percentage points | Non-Recurring Gains and Losses Items and Amounts This section lists specific non-recurring gains and losses items and their total amount for the reporting period, totaling -2.37 million CNY Non-Recurring Gains and Losses Items for H1 2025 | Non-Recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | -12,534,468.27 | | Government Grants Recognized in Current Profit/Loss | 2,847,635.05 | | Custody Fee Income from Entrusted Operations | 2,025,000.00 | | Other Non-Operating Income and Expenses Apart from the Above | 1,300,172.95 | | Less: Income Tax Impact | -1,590,415.07 | | Minority Interest Impact (After Tax) | -2,405,927.92 | | Total | -2,365,317.28 | Section III Management Discussion and Analysis This section analyzes the company's industry, operations, core competencies, and financial performance, along with potential risks and mitigation strategies Industry and Main Business This section introduces the development status and trends of China's expressway industry, the company's "main business enhancement, investment-driven" strategy, and its core business operations - As of the end of 2024, China's expressway mileage exceeded 190,000 kilometers, establishing the world's largest expressway network[27] - The company consistently adheres to the "main business enhancement, investment-driven" development strategy, focusing on its core expressway business while actively seeking high-quality investment targets[27] - The company's main business involves expressway investment, construction, toll collection, and operation management, with operating revenue primarily derived from expressway tolls[28] - The company operates a total of 282 kilometers of expressways, including Quanzhou-Xiamen, Fuzhou-Quanzhou, and Luoyuan-Ningde expressways, and holds an equity interest in Punan Expressway[28] Analysis of Operations During the reporting period, the company achieved positive year-on-year growth in operating revenue and net profit through "speed and quality improvement, cost reduction, and efficiency enhancement" initiatives amidst a moderate economic recovery, while also optimizing its dividend mechanism and governance system - In H1 2025, the company achieved operating revenue of 1.485 billion CNY, a year-on-year increase of 0.56%; expressway toll revenue distribution was 1.470 billion CNY, up 0.48% year-on-year[29] - Net profit attributable to the parent company's owners was 546 million CNY, remaining largely flat year-on-year; earnings per share were 0.1988 CNY, and the weighted average return on net assets was 4.58%[29] - The company optimized its dividend mechanism, successfully completing its first interim dividend; it also revised its Articles of Association to abolish the supervisory board, becoming one of the first state-owned enterprises in Fujian Province to do so[30][51] Analysis of Core Competencies The company's core competitiveness stems from its advantageous geographical location, excellent road conditions, strong market financing capabilities, and multi-tiered talent development - The company's main operating assets (Quanzhou-Xiamen, Fuzhou-Quanzhou, and Luoyuan-Ningde expressways) are crucial components of the G15 Shenhai Expressway's Fujian section, traversing economically developed coastal areas of Fujian, providing a natural geographical advantage[31] - The expansion projects (eight-lane bidirectional) of the company's main road assets have enhanced traffic capacity, resulting in sound assets and strong profitability[31] - The company maintains high credit ratings and a consistent cash dividend policy, fostering a positive capital market image and strong financing capabilities[32] - The company has built a high-caliber expressway operation and management talent team, comprising experienced, mid-career, and young professionals, and has cultivated a specialized capital operation team[33] Key Operating Performance This section analyzes changes in financial statement items, asset and liability conditions, and investment status, particularly focusing on financial assets measured at fair value and major holding and participating companies (一) Analysis of Main Business Financial Statement Related Item Fluctuation Analysis | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Financial Expenses | 5,820,819.40 | 15,634,850.04 | -62.77 | Increase in interest income, decrease in bond interest | | Credit Impairment Losses | 4,007,813.73 | -294,019.82 | 1,463.11 | Recovery of previously written-off bad debts | | Net Cash Flow from Operating Activities | 1,242,858,753.08 | 928,480,318.30 | 33.86 | Increase in toll revenue received | | Net Cash Flow from Financing Activities | -689,451,196.29 | -364,158,684.42 | -89.33 | Maturity and redemption of corporate bond "22 Min Gao 01" | (三) Analysis of Assets and Liabilities Asset and Liability Status Changes | Item Name | Current Period-End Amount (CNY) | Current Period-End % of Total Assets | Prior Year-End Amount (CNY) | Prior Year-End % of Total Assets | Change from Prior Year-End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Construction in Progress | 563,650,160.33 | 3.2096 | 333,595,439.49 | 1.9296 | 68.96 | Various project expenditures incurred during the period | | Other Payables | 411,845,299.77 | 2.3452 | 208,962,188.59 | 1.2087 | 97.09 | Increase in payments on behalf of others during the period | | Non-Current Liabilities Due Within One Year | 19,341,724.20 | 0.1101 | 636,839,531.93 | 3.6837 | -96.96 | Maturity and redemption of corporate bond "22 Min Gao 01" | | Other Comprehensive Income | 254,468,127.80 | 1.4490 | 38,246,713.50 | 0.2212 | 565.33 | Due to fair value changes in investments in other equity instruments | (四) Analysis of Investment Status - In H1 2025, the company had no new external equity investments[38] Financial Assets Measured at Fair Value (Securities Investment) | Security Type | Security Code | Security Abbreviation | Beginning Book Value (CNY) | Fair Value Change Gain/Loss for Current Period (CNY) | Ending Book Value (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Stocks | 601166 | Industrial Bank | 881,360,000.00 | 192,280,000.00 | 1,073,640,000.00 | | Total | / | / | 881,360,000.00 | 192,280,000.00 | 1,073,640,000.00 | Financial Assets Measured at Fair Value (Consolidated Statement) | Asset Category | Beginning Balance (CNY) | Fair Value Change Gain/Loss for Current Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | | Stocks | 881,360,000.00 | 192,280,000.00 | 1,073,640,000.00 | | Others | 1,147,381,600.00 | 95,338,700.00 | 1,242,720,300.00 | | Total | 2,028,741,600.00 | 287,618,700.00 | 2,316,360,300.00 | (六) Analysis of Major Holding and Participating Companies Major Subsidiary Financial Data (H1 2025) | Company Name | Company Type | Main Business | Registered Capital (million CNY) | Total Assets (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Fuquan Company | Subsidiary | Operation and management of Fuquan Expressway | 80 | 8,326,549,278.94 | 328,037,326.11 | | Quanzhou-Xiamen Management Company | Subsidiary | Expressway management and maintenance | 30 | 151,029,733.25 | 1,122,947.83 | | Luoning Company | Subsidiary | Operation and management of Luoning Expressway | 30 | 752,104,939.97 | 6,203,816.47 | (一) Potential Risks The company faces risks from macroeconomic fluctuations, industry policies, road network diversion, and investment development, with corresponding mitigation strategies including deepening development strategies, closely monitoring policies, strengthening operations, and prudent investment decisions - The company faces macroeconomic fluctuation risks and will continue to deepen its "main business enhancement, investment-driven" development strategy to offset operational risks[46] - The expressway industry faces policy risks; the company will closely monitor policy information, strengthen communication with the government, and strive for policy support[46] - Road network densification may lead to traffic diversion risks; the company will focus on optimizing operational management to increase revenue and enhance efforts to attract traffic[47] - The company faces investment development risks in advancing its main business and expanding external investments, and will prudently conduct feasibility studies for investment projects and improve its risk control system[47][48] Section IV Corporate Governance, Environment, and Society This section covers changes in governance, profit distribution plans, and environmental information disclosure, reflecting the company's social responsibilities Changes in Directors, Supervisors, and Senior Management During the reporting period, there were multiple changes in the company's supervisory board members, with the abolition of the supervisory board approved at the June 18, 2025, shareholders' meeting, and new appointments for CFO and Deputy General Manager - The company's shareholders' meeting on January 23, 2025, approved the election of Ms. Gao Ying as a supervisor of the Tenth Supervisory Board[51] - The company's annual shareholders' meeting on June 18, 2025, approved the abolition of the supervisory board, making it one of the first state-owned enterprises in Fujian Province to do so[51] - On July 7, 2025, the company appointed Wang Yan as Chief Financial Officer and Zheng Jianxiong as Deputy General Manager[52] Profit Distribution Plan The company's proposed semi-annual profit distribution plan is to not distribute or capitalize - The proposed semi-annual profit distribution plan is "No," meaning no profit distribution or capital reserve capitalization will be conducted[53] Environmental Information Disclosure During the reporting period, the company was not included in the list of enterprises required to disclose environmental information by law - The company was not included in the list of enterprises required to disclose environmental information by law[54] Section V Significant Matters This section details the fulfillment of commitments, significant related party transactions, and major contracts, including leasing and guarantee arrangements Fulfillment of Commitments During the reporting period, there were no unfulfilled commitments or commitments continuing into the reporting period by the company's actual controller, shareholders, related parties, acquirers, or the company itself - During the reporting period, there were no unfulfilled commitments or commitments continuing into the reporting period by the company's actual controller, shareholders, related parties, acquirers, or the company itself[55] Significant Related Party Transactions The company approved the 2025 annual routine related party transactions proposal on April 17, 2025, and disclosed it on the Shanghai Stock Exchange - The company convened the seventh meeting of the Tenth Board of Directors on April 17, 2025, and approved the "Proposal on 2025 Annual Routine Related Party Transactions"[55] - The relevant related party transactions were disclosed on the Shanghai Stock Exchange on April 19, 2025[55] Significant Contracts and Their Performance This section discloses three land use right leases where the company is the lessee, covering Quanzhou-Xiamen, Fuzhou-Quanzhou, and Luoyuan-Ningde expressways, as well as the company's counter-guarantee for its controlling shareholder Leasing Information Land Use Right Leasing Information | Lessor Name | Leased Asset | Lease Amount (million CNY) | Lease Start Date | Lease End Date | | :--- | :--- | :--- | :--- | :--- | | Fujian Provincial Department of Natural Resources | Quanzhou-Xiamen Expressway Land Use Right | 5.99 | 1999-07-01 | 2029-06-30 | | Fuquan Operation and Service Company | Fuquan Expressway Land Use Right | 13.60 | 2001-10-31 | 2031-10-30 | | Fujian Provincial Department of Natural Resources | Luoyuan-Ningde Expressway Land Use Right | 3.4069 | 2008-01-01 | 2028-03-31 | (二) Significant Guarantees Performed and Uncompleted During the Reporting Period - The company provided a counter-guarantee for its controlling shareholder, Provincial Expressway Group, amounting to 595.6 million CNY[61] - The total guarantee amount represents 4.00% of the company's net assets[61] - This guarantee has not yet been fully performed[61] Section VI Changes in Shares and Shareholder Information This section outlines changes in share capital and provides detailed information on the company's shareholders and their holdings Changes in Share Capital During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[63] Shareholder Information As of the end of the reporting period, the company had a total of 68,611 common shareholders. The controlling shareholder, Fujian Provincial Expressway Group Co., Ltd., held 38.16%, and China Merchants Expressway Network Technology Holdings Co., Ltd. held 17.75% - As of the end of the reporting period, the total number of common shareholders was 68,611[64] Top Ten Shareholders' Shareholding | Shareholder Name | Ending Shareholding (shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Fujian Provincial Expressway Group Co., Ltd. | 1,047,255,729 | 38.16 | State-owned Legal Person | | China Merchants Expressway Network Technology Holdings Co., Ltd. | 487,112,772 | 17.75 | State-owned Legal Person | | Hong Kong Securities Clearing Company Limited | 31,445,525 | 1.15 | Overseas Legal Person | | Hangzhou Weiyin Asset Management Co., Ltd. - Weiyin Wansong Private Securities Investment Fund | 26,454,900 | 0.96 | Other | | Great Wall Life Insurance Co., Ltd. - Proprietary Funds | 22,015,800 | 0.80 | Other | - The company's controlling shareholder, Fujian Provincial Expressway Group Co., Ltd., increased its stake in the company by 54,888,000 shares during the reporting period, accounting for 2% of the total share capital[66][320] Section VII Bond-Related Information This section provides an overview of the company's corporate bonds, their use of proceeds, significant bond-related matters, and key financial indicators Basic Information of Corporate Bonds The company's outstanding bond is "22 Min Gao 02," with an issuance amount of 400 million CNY, an interest rate of 3.49%, a 5-year term, traded on the Shanghai Stock Exchange, and no risk of delisting Basic Information of Corporate Bonds | Bond Name | Abbreviation | Code | Issue Date | Maturity Date | Bond Balance (million CNY) | Interest Rate (%) | Trading Venue | Risk of Delisting | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Fujian Development Expressway Co., Ltd. 2022 Publicly Issued Corporate Bonds to Professional Investors (Tranche 1) (Type 2) | 22 Min Gao 02 | 185781 | 2022-05-17 | 2027-05-17 | 400 | 3.49 | Shanghai Stock Exchange | No | - Corporate bond "22 Min Gao 01" matured and was redeemed in May 2025, with a redemption amount of 618.24 million CNY[313] (二) Use of Corporate Bond Proceeds During the reporting period, none of the company's corporate bonds involved the use or rectification of raised funds - None of the company's corporate bonds involved the use or rectification of raised funds during the reporting period[73] (四) Significant Matters Related to Corporate Bonds During the Reporting Period During the reporting period, the company had no non-operating intercompany receivables or fund borrowings, and its interest-bearing debt balance decreased by 60.02% year-on-year, indicating an optimized debt structure - As of the end of the reporting period, the company's consolidated non-operating intercompany receivables and fund borrowings totaled 0.00 billion CNY[73] - At the beginning and end of the reporting period, the company's (non-consolidated scope) interest-bearing debt balances were 999 million CNY and 399 million CNY, respectively, representing a year-on-year change of -60.02% in interest-bearing debt balance during the reporting period[74] Company (Non-Consolidated Scope) Interest-Bearing Debt Structure (Period-End) | Interest-Bearing Debt Category | Total Amount (billion CNY) | Percentage of Interest-Bearing Debt (%) | | :--- | :--- | :--- | | Corporate Credit Bonds | 0.399 | 100 | | Total | 0.399 | — | - As of the end of the reporting period, the balance of corporate bonds within the company's consolidated scope of outstanding corporate credit bonds was 399 million CNY[78] (七) Key Accounting Data and Financial Indicators The company's current ratio and quick ratio significantly increased, its asset-liability ratio decreased, and both interest coverage ratio and cash interest coverage ratio improved, reflecting enhanced solvency and liquidity Bond-Related Key Financial Indicator Changes | Key Indicator | Current Period-End | Prior Year-End | Current Period-End vs. Prior Year-End Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Current Ratio | 277.53% | 175.11% | Increase of 102.42 percentage points | Decrease in corporate bonds due within one year during the period | | Quick Ratio | 276.32% | 174.99% | Increase of 101.33 percentage points | Decrease in corporate bonds due within one year during the period | | Asset-Liability Ratio (%) | 15.13 | 18.11 | Decrease of 2.97 percentage points | Decrease in total liabilities during the period | | Current Period | Current Period (Jan-Jun) | Prior Period | Current Period vs. Prior Period Change (%) | Reason for Change | | Net Profit Excluding Non-Recurring Items | 548,030,400.18 | 525,854,460.77 | 4.22 | Increase in revenue during the period | | Interest Coverage Ratio | 45.02 | 38.91 | 15.71 | Decrease in interest expenses during the period | | Cash Interest Coverage Ratio | 73.36 | 51.43 | 42.63 | Increase in net cash flow from operating activities during the period | Section VIII Financial Report This section presents the company's unaudited financial statements, including balance sheets, income statements, cash flow statements, and detailed notes on accounting policies and financial risks Audit Report This semi-annual report has not been audited - This semi-annual report has not been audited[5] Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for H1 2025, comprehensively reflecting the financial position and operating results at the end of the reporting period Consolidated Balance Sheet Consolidated Balance Sheet Key Data (June 30, 2025) | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Total Assets | 17,561,351,947.21 | 17,288,268,309.17 | | Total Liabilities | 2,657,534,125.40 | 3,130,293,972.83 | | Total Owners' Equity Attributable to Parent Company | 12,276,528,141.65 | 11,651,861,644.45 | | Total Owners' Equity | 14,903,817,821.81 | 14,157,974,336.34 | Consolidated Income Statement Consolidated Income Statement Key Data (Jan-Jun 2025) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 1,485,009,409.39 | 1,476,769,386.49 | | Net Profit | 666,842,071.17 | 659,503,585.74 | | Net Profit Attributable to Parent Company Shareholders | 545,665,082.90 | 531,121,028.78 | | Basic Earnings Per Share (CNY/share) | 0.1988 | 0.1935 | Consolidated Cash Flow Statement Consolidated Cash Flow Statement Key Data (Jan-Jun 2025) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1,242,858,753.08 | 928,480,318.30 | | Net Cash Flow from Investing Activities | -318,519,102.39 | -116,694,386.84 | | Net Cash Flow from Financing Activities | -689,451,196.29 | -364,158,684.42 | | Net Increase in Cash and Cash Equivalents | 234,888,454.40 | 447,627,247.04 | Company Basic Information This section details the company's establishment, historical share capital changes, equity structure, governance structure, and main business scope, clarifying that the company and its subsidiaries operate in the expressway industry - The company was established on June 28, 1999, with the approval of the Fujian Provincial People's Government, jointly initiated by Fujian Provincial Expressway Group Co., Ltd. and other entities, and obtained its enterprise legal person business license[117] - The company's share capital has undergone multiple stock dividends, capitalizations, and additional issuances, resulting in a current total share capital of 2.7444 billion shares[119][120] - The company and its subsidiaries operate in the expressway industry, with main businesses including investment, development, construction, and operation of the Quanzhou to Xiamen section, Fuzhou to Quanzhou section, and Luoyuan to Ningde section of the Shenhai Expressway, as well as highway maintenance[121] Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and relevant regulations of the China Securities Regulatory Commission, confirming the company's ability to continue as a going concern for at least the next 12 months - The company prepares its financial statements on a going concern basis, in accordance with Enterprise Accounting Standards and the China Securities Regulatory Commission's "Information Disclosure and Compilation Rules for Companies Issuing Securities No. 15," based on actual transactions and events[122] - The company possesses the ability to continue as a going concern for at least 12 months from the end of the reporting period, with no significant matters affecting its going concern ability[123] Significant Accounting Policies and Estimates This section details the company's specific accounting policies and estimates for business combinations, financial instruments, accounts receivable, inventories, long-term equity investments, fixed asset depreciation, construction in progress, intangible asset amortization, revenue recognition, government grants, deferred income tax, and leases 1、 Statement of Compliance with Enterprise Accounting Standards - The financial statements prepared by the company comply with the requirements of enterprise accounting standards and truly and completely reflect the company's financial position, operating results, changes in owners' equity, and cash flows[124] 5、 Materiality Standards Determination Method and Selection Basis - The materiality standard for accounts receivable overdue by more than one year is a single item with an aging of over one year, accounting for more than 10% of total accounts receivable, and an amount greater than 50 million CNY[128] - The materiality standard for construction in progress is a single project with a budget greater than 100 million CNY[128] - The materiality standard for important non-wholly-owned subsidiaries is when the non-wholly-owned subsidiary's revenue accounts for more than 10% of the consolidated total revenue[129] 11、 Financial Instruments - The company classifies financial assets into three categories based on business model and contractual cash flow characteristics: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in current profit or loss[141] - Financial liabilities are classified at initial recognition as financial liabilities measured at fair value with changes recognized in current profit or loss, or other financial liabilities[143] - The company performs impairment accounting for financial assets measured at amortized cost, etc., based on expected credit losses and recognizes loss provisions, measured in three stages[148][149] 21、 Fixed Assets - Fixed assets are recognized at actual cost when acquired, provided that economic benefits are likely to flow into the enterprise and costs can be reliably measured[170] - The company's expressway assets are depreciated using the workload method (i.e., traffic flow method), with an estimated residual value of zero[171] - Except for expressway assets, the company depreciates other fixed assets using the straight-line method from the month following their readiness for intended use, with depreciation periods ranging from 5-35 years and residual rates of 0-5%[172] 34、 Revenue - The company recognizes revenue when it fulfills its performance obligations in the contract, i.e., when the customer obtains control of the related goods, and the transaction price does not include amounts collected on behalf of third parties[196][197] - The company's main operating revenue is expressway vehicle toll revenue, recognized based on the clearing and distribution results from the Fujian Provincial Expressway Fund Settlement Management Committee[199][200] 38、 Leases - As a lessee, the company recognizes the right to use leased assets over the lease term as right-of-use assets and recognizes lease liabilities, except for short-term leases and leases of low-value assets[210][212] - As a lessor, the company classifies leases as finance leases and operating leases and accounts for them accordingly[213] Taxation This section discloses the company's main tax categories and rates, including VAT, urban maintenance and construction tax, education surcharge, property tax, and corporate income tax, with toll revenue subject to VAT under a simplified tax method Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate (%) | | :--- | :--- | :--- | | Value-Added Tax | Value added during sales of goods or provision of taxable services | 1, 3, 5, 6, 9, 13 | | Urban Maintenance and Construction Tax | Amount of VAT payable | 1, 5, or 7 | | Education Surcharge | Amount of VAT payable | 5 | | Property Tax | Taxable income | 1.2 or 12 | | Corporate Income Tax | Taxable income | 25 | - The company's toll revenue is subject to Value-Added Tax under a simplified tax method, with a collection rate of 3%[220] Notes to Consolidated Financial Statement Items This section provides detailed notes for each item in the consolidated financial statements, including cash and cash equivalents, accounts receivable, other receivables, inventories, long-term equity investments, investment properties, fixed assets, construction in progress, intangible assets, long-term deferred expenses, deferred income tax assets/liabilities, accounts payable, advances from customers, contract liabilities, employee benefits payable, taxes payable, other payables, bonds payable, lease liabilities, share capital, other comprehensive income, surplus reserves, undistributed profits, operating revenue and costs, taxes and surcharges, administrative expenses, financial expenses, other income, investment income, credit impairment losses, asset disposal gains, non-operating income and expenses, income tax expenses, and cash flow statement items 1、 Cash and Cash Equivalents Composition of Cash and Cash Equivalents | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Cash on Hand | 16,728.50 | 15,355.73 | | Bank Deposits | 2,230,239,760.47 | 1,995,329,626.59 | | Other Cash and Cash Equivalents | 161,064.00 | 184,116.25 | | Total | 2,230,417,552.97 | 1,995,529,098.57 | - The company has no funds deposited overseas, no deposits in finance companies, and no funds restricted from use due to mortgages, pledges, or freezes[223] 5、 Accounts Receivable Accounts Receivable Aging Distribution | Aging | Ending Book Balance (CNY) | Beginning Book Balance (CNY) | | :--- | :--- | :--- | | Within 1 year (inclusive) | 802,521,808.87 | 830,555,503.23 | | 1 to 2 years (inclusive) | 1,607,154.78 | 1,607,154.78 | | Total | 804,128,963.65 | 832,162,658.01 | - The ending balance of accounts receivable impairment provision is 652,123.55 CNY, with a provision rate of 0.08%[228] - The total accounts receivable from the top five debtors accounts for 99.44% of the combined ending balance of accounts receivable and contract assets[232] 18、 Investments in Other Equity Instruments Investments in Other Equity Instruments | Item | Beginning Balance (CNY) | Current Period Change (CNY) | Ending Balance (CNY) | Dividend Income Recognized in Current Period (CNY) | Cumulative Gains Included in Other Comprehensive Income (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Listed Equity Instrument Investments | 881,360,000.00 | 192,280,000.00 | 1,073,640,000.00 | 48,760,000.00 | 273,588,008.40 | | Unlisted Equity Instrument Investments | 1,147,381,600.00 | 95,338,700.00 | 1,242,720,300.00 | | 65,693,312.66 | | Total | 2,028,741,600.00 | 287,618,700.00 | 2,316,360,300.00 | 48,760,000.00 | 339,281,321.06 | - Investments in other equity instruments are designated as measured at fair value with changes recognized in other comprehensive income because they are planned for long-term strategic holding[263] 21、 Fixed Assets Fixed Assets Book Value (Period-End) | Item | Ending Book Value (CNY) | Beginning Book Value (CNY) | | :--- | :--- | :--- | | Expressway Assets | 9,889,334,007.43 | 10,291,526,953.93 | | Buildings and Structures | 676,252,169.14 | 705,782,873.72 | | Management Systems | 164,845,238.26 | 181,660,268.95 | | Total | 10,776,888,465.43 | 11,230,409,480.93 | - The increase in fixed assets during the current period was 4,487,620.69 CNY, of which 3,060,129.79 CNY was transferred from construction in progress[268] - The decrease in fixed assets during the current period was 29,840,058.94 CNY, primarily due to disposals or write-offs[268] 22、 Construction in Progress Construction in Progress Project Information | Project | Ending Book Balance (CNY) | Beginning Book Balance (CNY) | | :--- | :--- | :--- | | G15 Shenhai Expressway Quanzhou-Xiamen Section Expansion Project | 149,018,390.84 | 148,916,289.10 | | G15 Shenhai Expressway Luoyuan-Ningde Section Expansion Project | 204,429,486.23 | 184,679,150.39 | | Shenhai Expressway Fuzhou-Xiamen Section, Luoyuan-Ningde Section Comprehensive Upgrade Project | 210,202,283.26 | 0.00 | | Total | 563,650,160.33 | 333,595,439.49 | - The Shenhai Expressway Fuzhou-Xiamen Section, Luoyuan-Ningde Section Comprehensive Upgrade Project has a total investment of 2.572 billion CNY, with a 2025 budget of 298 million CNY, and 210.20 million CNY completed in the current period[276] 46、 Bonds Payable Bonds Payable Information | Bond Name | Beginning Balance (CNY) | Current Period Repayment (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | | 22 Min Gao 01 | 611,244,494.65 | 618,240,000.00 | 0.00 | | 22 Min Gao 02 | 407,937,568.20 | 13,960,000.00 | 400,988,784.48 | | Subtotal | 1,019,182,062.85 | 632,200,000.00 | 400,988,784.48 | | Less: Bonds Payable Due Within One Year | 599,641,827.98 | | | | Less: Interest Payable on Bonds Due Within One Year | 20,482,777.78 | 1,745,000.00 | | | Total | 399,057,457.09 | 632,200,000.00 | 399,243,784.48 | - Corporate bond "22 Min Gao 01" matured and was redeemed in May 2025, with a redemption amount of 618.24 million CNY[313] 57、 Other Comprehensive Income Other Comprehensive Income Changes | Item | Beginning Balance (CNY) | Current Period Amount (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | | I. Other comprehensive income that cannot be reclassified to profit or loss | 38,746,965.80 | 215,714,025.00 | 254,460,990.80 | | Of which: Fair value changes of investments in other equity instruments | 38,746,965.80 | 215,714,025.00 | 254,460,990.80 | | II. Other comprehensive income that will be reclassified to profit or loss | -500,252.30 | 507,389.30 | 7,137.00 | | Total Other Comprehensive Income | 38,246,713.50 | 216,221,414.30 | 254,468,127.80 | 61、 Operating Revenue and Operating Costs Operating Revenue and Operating Costs Composition | Item | Current Period Amount (Revenue) (CNY) | Current Period Amount (Cost) (CNY) | Prior Period Amount (Revenue) (CNY) | Prior Period Amount (Cost) (CNY) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 1,469,576,874.37 | 556,008,286.45 | 1,462,533,624.82 | 565,203,970.49 | | Other Businesses | 15,432,535.02 | 32,272,675.16 | 14,235,761.67 | 20,129,466.42 | | Total | 1,485,009,409.39 | 588,280,961.61 | 1,476,769,386.49 | 585,333,436.91 | 68、 Investment Income Investment Income Composition | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Investment income from long-term equity investments accounted for using the equity method | 189,135.89 | -5,771,474.36 | | Dividend income from investments in other equity instruments held during the period | 48,760,000.00 | 47,840,000.00 | | Total | 48,949,135.89 | 42,068,525.64 | Risks Related to Financial Instruments The company faces credit risk, liquidity risk, and market risk (foreign exchange risk, interest rate risk), which are managed through credit policies, monitoring liquidity needs, and continuous monitoring of interest rate levels - The company's financial instrument-related risks arise from credit risk, liquidity risk, and market risk (foreign exchange risk, interest rate risk)[367] - Credit risk primarily arises from cash and cash equivalents, accounts receivable, and other receivables, managed by assessing customer creditworthiness and regular monitoring[367][369] - Liquidity risk is managed by regularly monitoring short-term and long-term liquidity needs, ensuring sufficient cash reserves and readily marketable securities[371] - The company's main operations are located within China, with primary business settled in RMB, thus the foreign exchange market risk undertaken is not significant[374] Fair Value Disclosure At period-end, total assets measured at fair value amounted to 2.316 billion CNY, primarily investments in other equity instruments, with listed equity instruments measured at Level 1 fair value and unlisted equity instruments at Level 3 fair value Period-End Fair Value Measurement Items | Item | Level 1 Fair Value Measurement (CNY) | Level 3 Fair Value Measurement (CNY) | Total (CNY) | | :--- | :--- | :--- | :--- | | Investments in Other Equity Instruments | 1,073,640,000.00 | 1,242,720,300.00 | 2,316,360,300.00 | | Total Assets Continuously Measured at Fair Value | 1,073,640,000.00 | 1,242,720,300.00 | 2,316,360,300.00 | - For financial instruments not traded in an active market (such as unlisted equity investments), the company uses valuation techniques like the market comparable company model to determine their fair value, with inputs primarily including illiquidity discounts[378][380] Related Parties and Related Party Transactions This section discloses information on the company's parent company, subsidiaries, and other related parties, as well as detailed information on related party transactions such as goods purchases and sales, labor services, entrusted management/contracting, leases, guarantees, and key management personnel compensation 1、 Information on Parent Company Parent Company Information | Parent Company Name | Registered Address | Business Nature | Registered Capital (million CNY) | Shareholding Ratio (%) | Voting Rights Ratio (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Provincial Expressway Group | Fuzhou | Investment and construction of expressways, etc. | 10,000 | 38.16 | 38.16 | - The ultimate controlling party of the company is the Fujian Provincial People's Government State-owned Assets Supervision and Administration Commission[384] 4、 Information on Other Related Parties - Other related parties include Fujian Expressway Venture Capital Co., Ltd., Fujian Expressway Service Area Management Co., Ltd., Fujian Expressway Construction Investment Co., Ltd., and others, mostly wholly-owned subsidiaries, controlled sub-subsidiaries, or wholly-owned sub-subsidiaries of the parent company[384][385] 5、 Related Party Transaction Information - The company's acceptance of services from related parties primarily includes expressway maintenance engineering, engineering design services, information technology services, property management, and catering expenses[387][388] - As a lessor, the company provides related parties with services such as housing leases, gas station leases, and communication base station site leases, recognizing lease income[391] - The company, as a guarantor, provided a counter-guarantee of 595.6 million CNY for its controlling shareholder, Provincial Expressway Group[394][395] - Key management personnel compensation for the current period amounted to 1.356 million CNY[396] - The company paid 15.14 million CNY in industry management fees to Provincial Expressway Group, executed according to government documents[398] 6、 Unsettled Items with Related Parties (Receivables and Payables) - Ending accounts receivable from related parties primarily include those from Expressway Energy Company, Expressway Petrochemical Company, and Expressway Sinochem Company[400][401] - Ending accounts payable to related parties primarily include those to Municipal Engineering Company, Provincial Maintenance Company, Provincial Information Technology Company, and Provincial Rongtong Investment Company[402] Commitments and Contingencies The company has significant commitments related to land use right leases, but no other major commitments or significant contingencies requiring disclosure at the balance sheet date - The company has land use right lease commitments for Quanzhou-Xiamen, Fuzhou-Quanzhou, and Luoyuan-Ningde expressways, with total annual rent of 22.997 million CNY[405][406] - As of June 30, 2025, the company has no other major commitments requiring disclosure[406] - The company has no significant contingencies requiring disclosure[407] Other Significant Matters The company has established enterprise annuity and occupational annuity schemes to supplement employee pension insurance, and estimates land lease payments for the Fuzhou-Xiamen expansion project, subject to final agreement - The company has established enterprise annuity and occupational annuity schemes to supplement and improve the basic employee pension insurance system[409][410] - Employer contributions to the enterprise annuity plan are set at 8% of the total wages of eligible employees for the previous year[409] - The company estimates that the Fuzhou-Xiamen expansion project will incur land lease payments of 9.575 million CNY annually for the Fuzhou-Quanzhou section and 3.309 million CNY annually for the Quanzhou-Xiamen section, with actual lease amounts subject to the final signed lease agreements[413] Supplementary Information This section provides supplementary information, including a detailed statement of non-recurring gains and losses, return on net assets, and earnings per share 1、 Details of Non-Recurring Gains and Losses Non-Recurring Gains and Losses Items for H1 2025 | Item | Amount (CNY) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | -12,534,468.27 | | Government Grants Recognized in Current Profit/Loss | 2,847,635.05 | | Custody Fee Income from Entrusted Operations | 2,025,000.00 | | Other Non-Operating Income and Expenses Apart from the Above | 1,300,172.95 | | Less: Income Tax Impact | -1,590,415.07 | | Minority Interest Impact (After Tax) | -2,405,927.92 | | Total | -2,365,317.28 | 2、 Return on Net Assets and Earnings Per Share Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share (CNY/share) | | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders of the Company | 4.58 | 0.1988 | | Net Profit Attributable to Common Shareholders of the Company After Deducting Non-Recurring Gains and Losses | 4.60 | 0.1997 |