粤运交通(03399) - 2025 - 中期财报

Company Profile Guangdong Yueyun Transportation Co., Ltd. is a comprehensive transportation service provider, strategically focused on expressway travel services. Company Overview and Strategic Positioning Guangdong Yueyun Transportation Co., Ltd., established in 1999 and listed in Hong Kong in 2005, is a comprehensive transportation service provider aiming to build a leading integrated platform for expressway travel services and energy-transportation integration. - The company was established in 1999 and listed on the Main Board of the Hong Kong Stock Exchange (stock code: 03399) in 2005[8] - The controlling shareholder, Guangdong Provincial Communications Group Co., Ltd., holds approximately 74.12% of the shares, while H-share shareholders hold approximately 25.88%[8] - Strategic positioning: Based on transportation, with expressway travel service industry as the core, deeply operating transportation network resources, to build a leading integrated service platform for expressway travel services and energy-transportation integration in China[9] - Main businesses include expressway service area operations (energy, retail, investment promotion, advertising), road passenger transport and ancillary services, Taiping Interchange operations, and other businesses[9][10] Company Information This section provides the company's basic information, core governance team, and external partners. Basic Information and Governance Structure This chapter lists the company's legal name, stock code, registered office, principal place of business in Hong Kong, board members (executive, non-executive, independent non-executive directors), company secretary, authorized representatives, auditor, principal bankers, and legal advisors, showcasing its core governance team and external partners. - The company's legal name is Guangdong Yueyun Transportation Co., Ltd., with stock code 03399[11] - Board members include Zhu Fang (Executive Director), Chen Chuxuan (Non-executive Director), Su Wujun (Independent Non-executive Director), etc[11] - The auditor is BDO China Shu Lun Pan Certified Public Accountants LLP, and the legal advisor is Haiwen & Partners[11] Financial Highlights This section summarizes the company's financial performance, balance sheet, and profitability ratios for the period. Performance Summary In the first half of 2025, the company's total operating revenue was RMB 3,770,028 thousand, a 3% year-on-year increase, driven by expressway service area operations, while gross profit decreased by 19%. 2025 H1 Performance Summary (RMB thousand yuan) | Indicator | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 3,770,028 | 3,674,663 | 3% | | Expressway Service Area Operations Revenue | 2,991,062 | 2,621,531 | 14% | | Road Passenger Transport and Ancillary Services Revenue | 723,616 | 980,218 | (26%) | | Taiping Interchange Operations and Other Businesses Revenue | 55,350 | 72,914 | (24%) | | Total Gross Profit | 305,851 | 379,135 | (19%) | | Operating Profit | 175,802 | 189,754 | (7%) | | Net Profit | 134,414 | 135,604 | (1%) | | Net Profit Attributable to Equity Holders of the Parent Company | 142,644 | 138,669 | 3% | | Basic Earnings Per Share (RMB yuan) | 0.18 | 0.17 | 3% | - Expressway service area operations revenue increased by 14% year-on-year, being the main driver of operating revenue growth[13] - Total gross profit decreased by 19%, primarily due to refined oil price adjustments, international oil price fluctuations, impact from new energy vehicles, and increased costs from expanding service area scale[13] Balance Sheet and Profitability Ratios As of June 30, 2025, total assets slightly decreased, while total net assets and equity attributable to parent company shareholders increased, with a 10% drop in gross profit margin. 2025 H1 Balance Sheet and Profitability Ratios (RMB thousand yuan) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Assets | 8,440,741 | 8,724,060 | (3%) | | Total Net Assets | 2,669,160 | 2,605,861 | 2% | | Equity Attributable to Equity Holders of the Parent Company | 2,168,198 | 2,086,140 | 4% | | Net Asset Value Per Share Attributable to Equity Holders of the Company (RMB yuan) | 2.71 | 2.61 | 4% | | Gross Profit Margin | 8.11% | 9.03% | (10%) | | Interest Coverage Ratio (times) | 3.21 | 2.79 | 15% | | Asset-Liability Ratio | 68.38% | 70.13% | (2%) | | Current Ratio (times) | 0.92 | 0.98 | (6%) | - Gross profit margin decreased by 10%, mainly due to lower comprehensive refined oil sales prices and increased costs from expanding service area scale[14] - Asset-liability ratio decreased by 2%, indicating an optimized financial structure[14] Chairman's Report The Chairman's Report outlines the company's strategic direction, operational focus, and future development plans amidst a complex economic environment. Macroeconomic and Industry Environment In the first half of 2025, the global economy was complex, while China's GDP grew by 5.3%, with Guangdong's transportation sector undergoing reforms and new opportunities. - In the first half of 2025, the global economy was complex and volatile, while China's GDP grew by 5.3% year-on-year, showing steady and positive economic development[16] - Guangdong's transportation sector is deepening reforms, with expressways embracing opportunities for new energy integration and diversified service area transformation[16] - The company is seizing industry development trends, focusing on core businesses, strengthening refined management, and steadily improving operational quality and efficiency[16] Key Business Development Focus for H2 2025 The company will focus on core businesses, enhance quality and efficiency, drive innovation, and pursue transformational development in H2 2025, while exiting road passenger transport and exploring strategic emerging industries. - Development orientation for the second half of the year: Focus on core, enhance quality and efficiency, drive innovation, and transform development[17] - Resources will be concentrated on advantageous industries, and the exit of road passenger transport business will be steadily advanced[17] - Committed to building the group into a leading integrated platform for expressway travel services in China[17] Expressway Service Area Operations - Energy Business The energy business plans to expand traditional energy scale by building and reclaiming gas stations, deepen cooperation with central enterprises, and accelerate new energy deployment. - Plan to build 12 new self-operated gas stations and reclaim 10 self-operated gas stations to expand terminal sales scale[19] - Strengthen in-depth cooperation with central enterprises in oil product supply and sales to ensure supply stability and price advantages[19] - Establish a new energy subsidiary to comprehensively coordinate the construction of the Dahuai service area integrated "optical-storage-charging" project[21] - Plan to build photovoltaic power generation systems in 45 pairs of service areas and promote the construction of a digital energy comprehensive management platform[21] Expressway Service Area Operations - Retail Business The retail business will open new stores, upgrade existing ones, expand online and offline channels, optimize supply chain management, and support rural revitalization. - Plan to open 13 new stores and comprehensively upgrade 16 stores, optimizing store visual image and service standards[22] - Accelerate the expansion of the online Leyi Mall sales channel, establish a professional e-commerce operation team, and actively expand group purchase and wholesale channels[22] - Innovate investment promotion strategies, optimize category combinations and brand matrix with "nine-selection-four" product selection standards, and implement a "three-uniform" management model to compress operating costs[24] - Plan themed promotional activities around core consumption nodes, strengthen the application of the "Lu" IP, and assist in "rural revitalization" by improving agricultural product stations[24] Expressway Service Area Operations - Investment Promotion Business The investment promotion business will innovate models, build a digital platform, expand self-operated catering, introduce renowned brands, and promote unified cashier systems. - Innovate investment promotion models, build a digital investment promotion information platform, and implement "digital investment promotion," "large-scale investment promotion," and "attracting major investors" strategies[25] - Accelerate the layout of self-operated catering projects, planning to expand self-operated business scale through gourmet shops, coffee, light meals, etc., in addition to KFC[25] - Comprehensively promote the unified cashier model, gradually achieving full coverage of unified cashier systems for service area merchants, and enhancing digital management levels[25] - Intensify efforts to introduce high-quality merchants, tap the commercial potential of service area second floors, and create "five-essence" characteristic service areas and agricultural assistance service areas[27] Expressway Service Area Operations - Advertising Business The advertising business will focus on direct operations, deepen cooperation with key industry clients, accelerate digitalization, and explore "offline traffic + online conversion" models. - Focus on direct operations, precisely targeting key industry clients such as tourism, liquor, and regional consumer brands to customize personalized advertising solutions[28] - Promote the digital transformation of advertising resources, massively install electronic display screens and interactive advertising equipment, and optimize advertising space layout[28] - Explore the "offline scenario traffic + online value conversion" model to enhance advertising communication effectiveness and conversion rates[28] - Expand media resources, cultivate digital new media, and accelerate the construction of planned advertising facilities and digital new media cultivation advertising facilities[28] Road Passenger Transport and Ancillary Services - Passenger Transport Business Exit and Rescue Service Innovation The company will steadily exit road passenger transport, dispose of assets, and innovate expressway vehicle rescue services by leveraging a digital platform to enhance efficiency. - Steadily advance the exit of passenger transport business, conducting a comprehensive review and analysis of road passenger transport enterprises, and formulating detailed exit plans and timelines[31] - Increase asset disposal efforts, revitalize existing assets, recover funds, and reduce passenger transport business losses[31] - Innovate and develop expressway vehicle rescue services, relying on the "Digital Rescue" platform to optimize the intelligent dispatch system, improving rescue speed and on-site punctuality[31] - Strengthen team building and training, establish a "case review - problem diagnosis - specialized training" mechanism to enhance the professional skills of rescue team members[31] - Formulate holiday rescue guarantee plans in advance, strengthen coordination with traffic police and road administration departments to ensure smooth and safe roads[32] Strategic Emerging Industries Layout The company will strategically lay out emerging industries with a diversified and synergistic approach, advancing the "Yueyun Changxing Industrial Park" and exploring "low-altitude economy" opportunities. - Orderly advance the construction of the "Yueyun Changxing Industrial Park" headquarters economic base, creating a comprehensive industrial platform integrating corporate offices and business collaboration functions[33] - Pay attention to development opportunities in the "low-altitude economy" sector, exploring diversified business scenarios such as low-altitude air rescue and logistics distribution[33] Major Investments and Future Capital Asset Plans In H2 2025, the Group plans to invest in new energy projects and new gas stations, primarily funded by internal resources and bank loans, to develop integrated energy supply stations. - Key investments in the second half of 2025 include new energy projects (photovoltaic, energy storage, heavy truck supercharging) and new gas stations[34] - Funding sources primarily include self-owned funds and bank loans[34] - The investment objective is to tap into new energy business growth poles and build integrated energy supply stations for expressway service areas[34] Management Discussion and Analysis This section provides a detailed review of the company's business operations and financial performance for the reporting period. Business Review In H1 2025, the Group focused on expressway travel services, achieving significant progress in diverse business segments through reform and refined management, while steadily exiting road passenger transport. - In the first half of 2025, the Group focused on its core business of expressway travel services, driving significant progress in various business segments[37] - The exit of road passenger transport business is progressing steadily as planned, with the Group's overall operations showing a positive trend of stability, progress, and improved quality and efficiency[37] Expressway Service Area Operations Expressway service area operations expanded, with energy business network growth, refined retail operations, expanded self-operated catering, and direct advertising business development. - As of the end of June 2025, the Group owned operating rights for 230 gas stations, with 220 in operation, of which 110 are self-operated[38] - Added 338 service areas with charging stations, 1,576 charging piles, 10 battery swap stations, 4 gas filling stations, and 1 photovoltaic deployment point[38] - The retail business's Leyi convenience stores totaled 526, implementing "one store, one policy" refined operations, with product categories increasing to 3,673 types[40] - The investment promotion business has obtained operating rights for 387 service areas, with 365 in operation; Changshawan and Waxi KFC stores have successfully opened[44] - The advertising business holds advertising operating rights for 79 expressways, with 536 resources, focusing on developing direct operations[47] Road Passenger Transport and Ancillary Services Road passenger transport business contracted due to competition, leading to successful equity transfers and exits, while expressway rescue services focused on quality and efficiency. - In the first half of the year, the equity transfer of Zhuhai Gongyun Automobile Passenger Transport Station Co., Ltd. and the exit of controlling stakes in Guangzhou Yueyun Automobile Transport Co., Ltd. and Guangzhou Zengcheng Automobile Passenger Transport Station Co., Ltd. were successfully completed[48] - Expressway vehicle rescue services covered over 7,500 kilometers, across 84 road sections, with 213 rescue stations and 745 various rescue equipment units[50] - Intelligent dispatch information system was utilized to achieve intelligent dispatch of rescue resources, improving rescue efficiency[50] Taiping Interchange Operations Taiping Interchange operations maintained management and maintenance, but cumulative toll traffic decreased by approximately 25% due to diversion from Shenzhen-Zhongshan Link. - As of the end of June 2025, cumulative toll traffic was approximately 14.62 million vehicle trips, with an average daily of approximately 81,200 vehicle trips[51] - Vehicle traffic decreased by approximately 25% year-on-year, mainly due to diversion from the Shenzhen-Zhongshan Link[51] - Continued implementation of maintenance and repair plans, regularly inspecting and maintaining bridges, road surfaces, and electromechanical systems to ensure safe operation[51] Financial Review In H1 2025, operating revenue increased by 3%, but gross profit decreased by 19% due to oil price changes and new energy vehicle impact, while net profit attributable to parent company shareholders increased by 3%. - In the first half of 2025, operating revenue was RMB 3,770,028 thousand, a 3% year-on-year increase, primarily due to increased revenue from expressway service area operations[52] - Gross profit was RMB 305,851 thousand, a 19% year-on-year decrease, mainly due to refined oil price adjustments, international oil price fluctuations, the impact of rising new energy vehicle numbers on fuel sales, and increased costs from expanding service area scale[52] - Net profit attributable to equity holders of the parent company was RMB 142,644 thousand, a 3% year-on-year increase, primarily due to increased investment income from disposing of subsidiary equity upon exiting the transport business and a corresponding reduction in administrative expenses[52] Operating Revenue In H1 2025, total operating revenue increased by 3% to RMB 3,770,028 thousand, with expressway service area operations contributing 79% and driving growth. Operating Revenue by Business Segment (RMB thousand yuan) | Business Segment | For the six months ended June 30, 2025 (RMB thousand yuan) | Percentage | For the six months ended June 30, 2024 (RMB thousand yuan) | Percentage | | :--- | :--- | :--- | :--- | :--- | | Expressway Service Area Operations | 2,991,062 | 79% | 2,621,531 | 71% | | Road Passenger Transport and Ancillary Services | 723,616 | 19% | 980,218 | 27% | | Taiping Interchange Operations and Other Businesses | 55,350 | 2% | 72,914 | 2% | | Total | 3,770,028 | 100% | 3,674,663 | 100% | - Expressway service area operations revenue increased by 14% year-on-year, with energy business growing 15% (due to expanded self-operated gas station scale), retail business growing 10% (due to new stores), investment promotion business growing 17% (due to rent reductions in the prior year), and advertising business growing 1%[55][59] - Road passenger transport and ancillary services revenue decreased by 26% year-on-year, primarily due to the gradual exit from passenger transport business[57] - Taiping Interchange operations and other businesses revenue decreased by 24% year-on-year, mainly affected by diversion from the Shenzhen-Zhongshan Link[58] Gross Profit In H1 2025, total gross profit was RMB 305,851 thousand, a 19% year-on-year decrease, with gross profit margin at 8.11%, impacted by oil prices and increased costs. Gross Profit by Business Segment (RMB thousand yuan) | Business Segment | For the six months ended June 30, 2025 (RMB thousand yuan) | Percentage | For the six months ended June 30, 2024 (RMB thousand yuan) | Percentage | | :--- | :--- | :--- | :--- | :--- | | Expressway Service Area Operations | 280,840 | 92% | 336,662 | 89% | | Road Passenger Transport and Ancillary Services | (20,707) | (7%) | (18,295) | (5%) | | Taiping Interchange Operations and Other Businesses | 45,718 | 15% | 60,768 | 16% | | Total | 305,851 | 100% | 379,135 | 100% | - Expressway service area operations gross profit decreased by 17% year-on-year, with gross profit margin falling from 13% to 9%, mainly due to refined oil price adjustments and increased costs from scale expansion[62] - Road passenger transport and ancillary services gross loss increased by 13%, primarily due to increased costs for expressway rescue services from undertaking new routes and expanding standby personnel[64] - Investment promotion business gross loss changed by 726%, with gross loss margin increasing from 1% to 8%, mainly due to reduced shop occupancy rates from micro-renovations and increased upfront investment costs[67] - Advertising business gross profit increased by 49% year-on-year, with gross profit margin rising from 32% to 47%, primarily due to reduced costs[67] Expenses and Income In H1 2025, administrative and R&D expenses decreased by 21%, financial expenses by 6%, and other income by 39%, while investment income significantly increased by 87%. - Total administrative and R&D expenses were RMB 198,394 thousand, a 21% year-on-year decrease, mainly due to the steady exit from transport business and effective cost control[66] - Financial expenses were RMB 71,021 thousand, a 6% year-on-year decrease, primarily due to effectively reducing the scale of interest-bearing debt[68] - Other income was RMB 89,416 thousand, a 39% year-on-year decrease, mainly due to reduced government subsidies from exiting the transport business compared to the prior year[69] - Investment income increased significantly by 87% to RMB 94,599 thousand, primarily due to increased gains from disposing of passenger transport business subsidiaries in the current period[70] - Credit impairment losses increased by 12%, asset impairment losses increased by 86%, and non-operating net expenditure changed by 116% (from net income to net expenditure)[71][72][74] Working Capital and Capital Structure The Group maintains prudent financial management, with net debt at RMB (573,933) thousand and an asset-liability ratio of 68.38% as of June 30, 2025. Working Capital and Capital Structure (RMB thousand yuan) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Borrowings (banks and other financial institutions) | 973,597 | 1,183,416 | | Less: Cash and cash equivalents | 1,547,530 | 1,425,057 | | Net Debt | (573,933) | (241,641) | | Total Liabilities | 5,771,581 | 6,118,199 | | Total Shareholders' Equity | 2,669,160 | 2,605,861 | | Total Capital | 2,095,227 | 2,364,220 | | Capital-to-Debt Ratio | (27.39%) | (10.22%) | | Asset-Liability Ratio | 68.38% | 70.13% | - As of June 30, 2025, available credit lines from banks and other financial institutions totaled RMB 4,813,890 thousand, ensuring operational loan requirements[75] Cash Flow In H1 2025, net cash inflow from operating activities decreased by RMB 188,273 thousand, net cash outflow from investing activities increased by RMB 68,929 thousand, and net cash outflow from financing activities increased by RMB 23,265 thousand. Cash Flow Summary (RMB thousand yuan) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash inflow from operating activities | 434,928 | 623,201 | (188,273) | | Net cash outflow from investing activities | (64,302) | 4,627 | (68,929) | | Net cash outflow from financing activities | (247,241) | (223,976) | (23,265) | - Net cash inflow from operating activities decreased year-on-year, primarily due to increased oil product procurement costs in the service area segment[78] - Net cash outflow from investing activities increased, primarily due to increased expenditure on the construction of long-term assets to enhance service area business[79] Borrowings As of June 30, 2025, the Group's total outstanding borrowings decreased to RMB 973,597 thousand, with some subsidiaries having overdue loans, but with limited impact on overall operations. - As of June 30, 2025, the Group's total outstanding borrowings were RMB 973,597 thousand, a decrease from RMB 1,183,416 thousand as of December 31, 2024[81] - Borrowing types include unsecured short-term loans (RMB 180,708 thousand), secured short-term loans (RMB 116,860 thousand), pledged short-term loans (RMB 21,132 thousand), unsecured long-term loans (RMB 294,750 thousand), pledged long-term loans (RMB 211,577 thousand), and finance lease payables (RMB 148,570 thousand)[81] - Some subsidiaries have overdue short-term and long-term loans, but the Board believes the impact on the Group's overall business operations is limited[81] Other Information The reporting period saw no significant post-balance sheet events, acquisitions, disposals, or new company formations, with most transactions settled in RMB and limited foreign exchange risk. - No significant post-balance sheet events, major acquisitions, disposals, or establishment of new subsidiaries, associates, or joint ventures, or major investments occurred during the reporting period[82][83] - The Group holds multiple investment properties for operating leases, including Hong Kong Commercial Centre, an office in Kowloon, a ground-floor shop in Mong Kok, driver apartments, Lianzhou Passenger Transport Center Building, and Danxiashan Automobile Passenger Transport Station Complex[84][85] - As of June 30, 2025, fixed assets with a net value of approximately RMB 146,740 thousand, land use rights of RMB 56,695 thousand, and investment properties of RMB 164,681 thousand were pledged as collateral for borrowings[86] - The majority of the Group's income and expenditure are settled in RMB, resulting in minimal impact from foreign exchange fluctuations, and there are no significant contingent liabilities[87][88] Other Information This section covers share capital, major shareholders, corporate governance, employee remuneration, dividends, and auditor information. Share Capital and Major Shareholders As of June 30, 2025, the company had 799,847,800 ordinary shares issued, with public float meeting listing rules and no share changes during the period. - As of June 30, 2025, the company had a total of 799,847,800 ordinary shares issued, with the public float exceeding 25%, complying with listing rules[89] - The controlling shareholder, Guangdong Provincial Communications Group Co., Ltd., holds approximately 74.12% of the shares[90] Major Shareholder Holdings (As of June 30, 2025) | Shareholder Name | Share Class | Number of Shares Held | Approximate Percentage of Total Share Capital | | :--- | :--- | :--- | :--- | | Communications Group | Domestic Shares | 592,847,800 | 74.12% | | China Petrochemical Corporation | H Shares | 33,570,000 | 4.20% | | China Petroleum & Chemical Corporation | H Shares | 33,570,000 | 4.20% | | Sinopec Sales Co., Ltd. | H Shares | 33,570,000 | 4.20% | | Sinopec (Hong Kong) Limited | H Shares | 33,570,000 | 4.20% | | Pope Asset Management, LLC | H Shares | 21,950,247 | 2.74% | | Shah Capital Management | H Shares | 18,040,000 | 2.26% | - For the six months ended June 30, 2025, the company did not experience any changes, purchases, sales, or redemptions of its listed shares[93][94] Corporate Governance and Board of Directors The company strives for high corporate governance standards, largely complying with listing rules, though deviations exist regarding independent non-executive director attendance and the Chairman/CEO role. - During the six months ended June 30, 2025, the company complied with all code provisions in Part 2 of Appendix C1 to the Listing Rules, except for code provisions C.1.5 and C.2.1[96] - Deviation from C.1.5: Non-executive Director Chen Chuxuan did not attend the general meeting due to work reasons, but other directors attended to ensure understanding of shareholders' opinions[96] - Deviation from C.2.1: Mr. Zhu Fang concurrently serves as Chairman of the Board and General Manager; the Board believes this arrangement facilitates business execution and operational efficiency before a suitable candidate is found[97] - The Audit and Corporate Governance Committee has reviewed the unaudited interim results for the six months ended June 30, 2025, and recommended their adoption by the Board[101] - As of June 30, 2025, the Eighth Board of Directors included Zhu Fang, Huang Wenban, Hu Xianhua, Hu Jian (Executive Directors), Chen Chuxuan (Non-executive Director), Su Wujun, Huang Yuan, Shen Jialong, Zhang Xiangfa (Independent Non-executive Directors)[100] Employees and Remuneration Policy As of June 30, 2025, the Group had 9,855 employees with total costs of approximately RMB 652 million, and actively invested in training and development. - As of June 30, 2025, the Group had 9,855 employees (December 31, 2024: 11,476 employees)[103] - Total employee costs (including directors' remuneration) for the six months ended June 30, 2025, amounted to approximately RMB 652 million (2024 corresponding period: approximately RMB 749 million)[103] - Remuneration consists of basic salary, performance-based salary, allowances, and subsidies, determined based on position, experience, education, ability, contribution, and market salary conditions[103] - In the first half of the year, a total of 181 training courses were conducted, with 18,281 participants, totaling approximately 150,278 training hours[104] Dividends and Auditor The Board did not recommend an interim dividend for the six months ended June 30, 2025, and shareholders approved the appointment of BDO China Shu Lun Pan Certified Public Accountants LLP as auditor. - The Board did not recommend the declaration of an interim dividend for the six months ended June 30, 2025[105] - Shareholders approved the appointment of BDO China Shu Lun Pan Certified Public Accountants LLP as the company's auditor at the Annual General Meeting held on June 30, 2025[106] Unaudited Interim Financial Statements This section presents the unaudited interim financial statements, including the review report, balance sheets, income statements, cash flow statements, and statements of changes in equity. Review Report BDO China Shu Lun Pan Certified Public Accountants LLP reviewed the interim financial statements for the six months ended June 30, 2025, finding no material non-compliance with accounting standards. - The review report was issued by BDO China Shu Lun Pan Certified Public Accountants LLP, reviewing the interim financial statements for the six months ended June 30, 2025[107] - The review found no matters that caused the auditor to believe the interim financial statements were not prepared in all material respects in accordance with the requirements of Accounting Standard for Business Enterprises No. 32 — Interim Financial Reporting[107] Consolidated Balance Sheet As of June 30, 2025, the Group's total consolidated assets were RMB 8,440,741,072.68, a slight decrease from 2024 year-end, with total liabilities at RMB 5,771,581,142.61. Consolidated Balance Sheet Key Items (RMB yuan) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Total Current Assets | 2,706,704,677.29 | 2,666,605,098.63 | | Total Non-current Assets | 5,734,036,395.39 | 6,057,454,679.20 | | Total Assets | 8,440,741,072.68 | 8,724,059,777.83 | | Liabilities and Owners' Equity | | | | Total Current Liabilities | 2,941,349,352.58 | 2,725,484,608.63 | | Total Non-current Liabilities | 2,830,231,790.03 | 3,392,714,563.93 | | Total Liabilities | 5,771,581,142.61 | 6,118,199,172.56 | | Total Equity Attributable to Equity Holders of the Parent Company | 2,168,197,804.61 | 2,086,139,750.36 | | Non-controlling Interests | 500,962,125.46 | 519,720,854.91 | | Total Owners' Equity | 2,669,159,930.07 | 2,605,860,605.27 | | Total Liabilities and Owners' Equity | 8,440,741,072.68 | 8,724,059,777.83 | - Cash and bank balances increased to RMB 1,559,864,551.66, and accounts receivable increased to RMB 284,903,739.33[110] - Long-term borrowings significantly decreased from RMB 370,147,647.01 to RMB 53,568,466.85, but non-current liabilities due within one year significantly increased[112] Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were RMB 3,061,552,497.18, an increase from 2024 year-end, with total liabilities at RMB 1,218,498,244.66. Parent Company Balance Sheet Key Items (RMB yuan) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Total Current Assets | 1,262,817,798.05 | 1,106,674,920.72 | | Total Non-current Assets | 1,798,734,699.13 | 1,767,839,283.32 | | Total Assets | 3,061,552,497.18 | 2,874,514,204.04 | | Liabilities and Owners' Equity | | | | Total Current Liabilities | 1,061,909,653.47 | 627,152,714.42 | | Total Non-current Liabilities | 156,588,591.19 | 330,505,437.78 | | Total Liabilities | 1,218,498,244.66 | 957,658,152.20 | | Total Owners' Equity | 1,843,054,252.52 | 1,916,856,051.84 | | Total Liabilities and Owners' Equity | 3,061,552,497.18 | 2,874,514,204.04 | - Parent company cash and bank balances significantly increased from RMB 872,853,135.03 to RMB 1,005,828,885.16[117] - Non-current liabilities due within one year significantly increased from RMB 18,896,854.90 to RMB 261,257,571.45[119] Consolidated Income Statement For January-June 2025, the Group's consolidated total operating revenue was RMB 3,770,028,082.54, a 3% year-on-year increase, with net profit attributable to parent company shareholders growing by 3%. Consolidated Income Statement Key Items (RMB yuan) | Item | January-June 2025 | January-June 2024 | | :--- | :--- | :--- | | Total Operating Revenue | 3,770,028,082.54 | 3,674,662,696.59 | | Total Operating Costs | 3,771,025,108.71 | 3,675,818,805.95 | | Operating Profit | 175,802,407.95 | 189,753,485.07 | | Total Profit | 175,618,960.02 | 190,935,899.71 | | Net Profit | 134,413,582.58 | 135,603,731.44 | | Net Profit Attributable to Equity Holders of the Parent Company | 142,643,705.10 | 138,669,235.05 | | Non-controlling Interests | (8,230,122.52) | (3,065,503.61) | | Basic Earnings Per Share (yuan/share) | 0.18 | 0.17 | | Diluted Earnings Per Share (yuan/share) | 0.18 | 0.17 | - Total operating revenue increased by 3% year-on-year, while total operating costs increased by 2.59% year-on-year[124] - Investment income significantly increased by 87%, from RMB 50,596,083.00 to RMB 94,599,011.02[124] Parent Company Income Statement For January-June 2025, the parent company's operating revenue decreased by 25% to RMB 59,153,905.91, resulting in a net loss of RMB 1,777,795.99, a reversal from profit in the prior year. Parent Company Income Statement Key Items (RMB yuan) | Item | January-June 2025 | January-June 2024 | | :--- | :--- | :--- | | Operating Revenue | 59,153,905.91 | 78,849,509.49 | | Operating Costs | 21,681,190.24 | 15,872,897.50 | | Operating (Loss)/Profit | (1,777,795.99) | 52,009,715.56 | | Total (Loss)/Profit | (1,777,795.99) | 52,009,715.56 | | Net (Loss)/Profit | (1,777,795.99) | 52,009,715.56 | | Total Comprehensive (Loss)/Income | (1,777,795.99) | 52,000,925.41 | - Parent company operating revenue decreased by 25% year-on-year, while operating costs increased by 36.59% year-on-year[129] - Investment income shifted from a profit of RMB 17,116,924.66 in the prior year to a loss of RMB (8,179,718.63) in the current period, which is the main reason for the reversal from profit to loss[129] Consolidated Cash Flow Statement For January-June 2025, the Group's net cash flow from operating activities decreased by 30%, while investing activities shifted to a net outflow, and financing activities' net outflow increased. Consolidated Cash Flow Statement Key Items (RMB yuan) | Item | January-June 2025 | January-June 2024 | Change Amount | | :--- | :--- | :--- | :--- | | Net cash flow from operating activities | 434,927,661.12 | 623,201,360.80 | (188,273,699.68) | | Net cash flow from investing activities | (64,301,632.80) | 4,627,337.98 | (68,928,970.78) | | Net cash flow from financing activities | (247,241,317.01) | (223,975,754.09) | (23,265,562.92) | | Net increase in cash and cash equivalents | 122,472,678.70 | 404,445,933.09 | (281,973,254.39) | | Cash and cash equivalents at end of period | 1,547,529,633.33 | 1,490,210,918.05 | 57,318,715.28 | - Total cash inflow from operating activities slightly decreased year-on-year, while total cash outflow increased, leading to a reduction in net inflow[134] - Net cash outflow from investing activities increased, primarily due to a significant increase in cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets[136] - Cash inflow from financing activities decreased, cash paid for debt repayment decreased, but other cash payments related to financing activities increased, leading to an increased net outflow[138] Parent Company Cash Flow Statement For January-June 2025, the parent company's net cash flow from operating activities shifted to a net outflow of RMB (19,703,036.63), with cash and cash equivalents at period-end of RMB 1,005,828,885.16. Parent Company Cash Flow Statement Key Items (RMB yuan) | Item | January-June 2025 | January-June 2024 | | :--- | :--- | :--- | | Net cash flow from operating activities | (19,703,036.63) | 41,631,674.40 | | Net cash flow from investing activities | 36,075,298.24 | 46,288,575.40 | | Net cash flow from financing activities | 116,601,284.13 | 167,357,268.97 | | Net increase in cash and cash equivalents | 132,975,750.13 | 255,277,518.77 | | Cash and cash equivalents at end of period | 1,005,828,885.16 | 897,358,217.22 | - Net cash flow from operating activities shifted from a net inflow in the prior year to a net outflow in the current period, primarily due to decreased cash received from sales of goods and provision of services[143] - Cash inflow from investing activities decreased, but cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets significantly increased, leading to a reduction in net inflow[145] Consolidated Statement of Changes in Equity For January-June 2025, the Group's total consolidated owners' equity increased by RMB 63,299,324.80, with equity attributable to parent company owners increasing by RMB 82,058,054.25. Consolidated Statement of Changes in Equity Summary (RMB yuan) | Item | Balance as of December 31, 2024 | Change for the Current Period | Balance as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Share Capital | 799,847,800.00 | – | 799,847,800.00 | | Capital Reserve | 21,781,436.03 | – | 21,781,436.03 | | Other Comprehensive Income | (33,666,160.93) | 11,293,859.91 | (22,372,301.02) | | Special Reserve | 36,096,290.62 | 2,980,091.24 | 39,076,381.86 | | Surplus Reserve | 259,176,302.97 | – | 259,176,302.97 | | Retained Earnings | 1,002,904,081.67 | 67,784,103.10 | 1,070,688,184.77 | | Total Equity Attributable to Equity Holders of the Parent Company | 2,086,139,750.36 | 82,058,054.25 | 2,168,197,804.61 | | Non-controlling Interests | 519,720,854.91 | (18,758,729.45) | 500,962,125.46 | | Total Owners' Equity | 2,605,860,605.27 | 63,299,324.80 | 2,669,159,930.07 | - Total comprehensive income was RMB 143,051,617.94, of which RMB 152,457,379.46 was attributable to owners of the parent company[150] - Profit distribution in the current period reduced equity attributable to owners of the parent company by RMB 71,986,302.00[150] Parent Company Statement of Changes in Equity For January-June 2025, the parent company's total owners' equity decreased by RMB 73,801,799.32, primarily due to a decrease in retained earnings from net loss and profit distribution. Parent Company Statement of Changes in Equity Summary (RMB yuan) | Item | Balance as of December 31, 2024 | Change for the Current Period | Balance as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Share Capital | 799,847,800.00 | – | 799,847,800.00 | | Capital Reserve | 117,238,669.53 | – | 117,238,669.53 | | Other Comprehensive Income | 44,401.33 | (44,401.33) | – | | Surplus Reserve | 266,454,296.08 | – | 266,454,296.08 | | Retained Earnings | 733,270,884.90 | (73,757,397.99) | 659,513,486.91 | | Total Owners' Equity | 1,916,856,051.84 | (73,801,799.32) | 1,843,054,252.52 | - Total comprehensive income for the current period was a net loss of RMB 1,777,795.99[155] - Profit distribution in the current period reduced retained earnings by RMB 71,986,302.00[155] Notes to the Interim Financial Statements This section provides detailed notes on the company's background, accounting policies, taxation, and specific financial statement items. Company Background This note outlines Guangdong Yueyun Transportation Co., Ltd.'s history, share capital changes, business nature, and ultimate holding company, as a comprehensive transportation service group. - The company's predecessor was Guangdong Yuedi Transportation Co., Ltd., established in 1999, which later underwent restructuring, renaming, and share capital changes to become Guangdong Yueyun Transportation Co., Ltd[160][161] - The company and its subsidiaries form a comprehensive transportation service group within Guangdong Province, primarily engaged in expressway service area operations, road passenger transport, and ancillary travel services[162] - The company's parent company and ultimate controlling entity is Guangdong Provincial Communications Group Co., Ltd[162] Basis of Preparation of Financial Statements These interim financial statements are prepared in accordance with Accounting Standard for Business Enterprises No. 32 and Hong Kong Listing Rules, on a going concern basis. - These interim financial statements are prepared in accordance with the requirements of Accounting Standard for Business Enterprises No. 32 — Interim Financial Reporting and comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[164] - These interim financial statements are prepared on a going concern basis[165] Significant Accounting Policies and Estimates This chapter details the Group's significant accounting policies and estimates for financial instruments, inventory, long-term equity investments, fixed assets, revenue recognition, government grants, and deferred taxes. - These interim financial statements comply with the requirements of the Accounting Standards for Business Enterprises promulgated by the Ministry of Finance of the People's Republic of China, truly and completely reflecting the Group's financial position, operating results, and cash flows[167] - Financial instruments are classified based on business model and contractual cash flow characteristics as financial assets and liabilities measured at amortized cost, fair value through other comprehensive income, or fair value through profit or loss[192][193][194] - Revenue is recognized when performance obligations in the contract are satisfied, i.e., when the customer obtains control of the related goods or services[282] - Government grants are classified into asset-related and income-related, recognized when conditions are met, and accounted for as deferred income or current profit or loss, respectively[288][289][290] - Key accounting estimates and judgments include impairment provisions for receivables, impairment of other assets (excluding inventory and financial assets), depreciation and amortization of fixed assets and intangible assets, deferred income tax assets, and post-employment benefit liabilities[311][312][314][315][316] Taxation This chapter lists the Group's main tax types and rates, including cultural construction fees, corporate income tax, Hong Kong profits tax, VAT, urban maintenance and construction tax, education surcharges, land value-added tax, and property tax, along with tax incentives. Main Tax Types and Rates | Tax Type | Tax Rate | | :--- | :--- | | Cultural Construction Fee | 3% | | Corporate Income Tax | 25%, 20% | | Hong Kong Profits Tax | 16.5% | | Value-Added Tax | 13%, 9%, 6%, 5%, 3% or 1%, Zero-rated, Exempt | | Urban Maintenance and Construction Tax | 7%, 5% | | Education Surcharge and Local Education Surcharge | 3%, 2% | | Land Value-Added Tax | 40%, 60% | | Property Tax | 1.2%, 12% | - Some subsidiaries qualify as small-profit enterprises, paying corporate income tax at a 20% rate, a policy extended until December 31, 2027[322][323] - Hong Kong local companies enjoy a one-off 100% profits tax concession for the current year (up to HKD 1,500 per company)[323] - VAT small-scale taxpayer exemption policy is extended until December 31, 2027, exempting VAT for monthly sales under RMB 100,000 and reducing the 3% collection rate to 1%[326][327] Notes to Consolidated Financial Statement Items This chapter provides detailed notes on key consolidated financial statement items, offering in-depth understanding of the Group's financial position and operating results. - Total accounts receivable was RMB 340,173,297.76, with bad debt provision of RMB 55,269,558.43, resulting in a net amount of RMB 284,903,739.33, of which 98.96% was provided based on aging portfolio[328][329] - Carrying amount of long-term equity investments was RMB 413,934,568.20, including RMB 168,762,912.70 in joint ventures and RMB 245,171,655.50 in associates[335] - Carrying value of fixed assets was RMB 1,827,695,854.58, with buildings and structures accounting for the largest proportion[337][341] - Total short-term borrowings were RMB 318,699,750.02, including unsecured borrowings of RMB 180,708,000.00, with some subsidiaries having overdue short-term borrowings[348][351] - Total long-term borrowings were RMB 506,326,918.25, of which RMB 452,758,451.40 were long-term borrowings due within one year, with some subsidiaries having overdue long-term borrowings[356][359] - As of June 30, 2025, assets whose ownership or right to use was restricted totaled RMB 380,450,822.84, primarily cash and bank balances, investment properties, fixed assets, and intangible assets[379] Changes in Consolidation Scope During the reporting period, the Group lost control over Zhuhai Gongyun, Guangzhou Zengcheng Automobile Passenger Transport Station Co., Ltd., and Guangzhou Yueyun Automobile Transport Co., Ltd. through disposal of subsidiaries, and established two new companies. - No business combinations involving entities under common control or not under common control occurred in the current period[386][387] - Control over Zhuhai Gongyun, Guangzhou Zengcheng Automobile Passenger Transport Station Co., Ltd., and Guangzhou Yueyun Automobile Transport Co., Ltd. was lost through disposal of subsidiaries[388] - Guangdong Leyi Commercial and Trade Co., Ltd. and Guangdong Tongyi Commercial Development Co., Ltd. were newly established this year, both with a 95.56% shareholding ratio[389] Interests in Other Entities This chapter details the Group's interests in numerous subsidiaries, joint ventures, and associates, which are strategically important for its development. - The Group owns numerous subsidiaries, including Guangdong Expressway Media Co., Ltd., Yueyun Transportation (Hong Kong) Co., Ltd., and Guangdong Tongyi Expressway Service Area Co., Ltd[390][392][394][395][397][398][399][400][401] - Important non-wholly-owned subsidiaries include Yuegang Automobile Transport Joint Venture Co., Ltd. (Hong Kong), Foshan Yueyun Public Transport Co., Ltd., and Heyuan Yueyun Automobile Transport Co., Ltd[403] - Important joint ventures or associates include Guangdong Sinopec Tongyi Energy Sales Co., Ltd., Yuegongxinhai, and Southern United Property Rights Exchange Co., Ltd., with these investments being strategic to the company's activities[404] Related Parties and Related Party Transactions This chapter discloses the Group's related parties and various transactions, including procurement, sales, services, leasing, fund transfers, and key management compensation, along with outstanding balances. - The company's parent company and ultimate controlling party is Guangdong Provincial Communications Group Co., Ltd., with both shareholding and voting rights at 74.12%[405] - The Group engages in various transactions with related parties, including material procurement, acceptance of services, provision of transport services, rescue service income, expressway service area income, freight outsourcing income, rental income, and rental expenses[413][416][417][419][421][424][425][428][429][431][433][436][437][439][440][442] - As of June 30, 2025, the Group had no related party guarantees[443] - Related party fund borrowing balance was RMB 48,400,000.00, with interest expenses of RMB 704,970.11[444] - Key management personnel remuneration was RMB 2,528,967.99[448] - Receivables from related parties include accounts receivable, prepayments, other receivables, etc.; payables to related parties include accounts payable, advances from customers, contract liabilities, other payables, lease liabilities, and non-current liabilities due within one year[447][450][452][453][455][456][457][458][460] Commitments and Contingencies As of the balance sheet date, the Group had no significant commitments or contingencies requiring disclosure. - As of the balance sheet date, the Group had no significant commitments requiring disclosure[461] - As of the balance sheet date, the Group had no significant contingencies requiring disclosure[462] Events After the Balance Sheet Date As of the approval date of these interim financial statements, the Group had no significant events after the balance sheet date requiring disclosure. - As of the approval date of these interim financial statements, the Group had no significant events after the balance sheet date requiring disclosure[463] Other Significant Matters No prior period accounting error corrections occurred, and the Group's operations are segmented into expressway service area operations, road passenger transport, and Taiping Interchange operations. - No prior period accounting error corrections using the prospective application method occurred during the reporting period[464] - The Group's operating segments are divided into expressway service area operations, road passenger transport and ancillary services, and Taiping Interchange operations and other businesses, based on internal organizational structure, management requirements, and internal reporting systems[465] 2025 H1 Segment Performance (RMB yuan) | Item | Expressway Service Area Operations | Road Passenger Transport and Ancillary Services | Taiping Interchange Operations and Other Businesses | Inter-segment Eliminations | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,992,593,473.23 | 727,786,156.29 | 55,349,807.67 | (5,701,354.65) | 3,770,028,082.54 | | Operating Costs | 2,713,675,090.85 | 733,779,983.17 | 20,646,690.24 | (3,924,560.50) | 3,464,177,203.76 | | Operating Profit | 152,246,721.58 | (9,984,588.24) | 34,589,168.44 | (1,048,893.83) | 175,802,407.95 | 2025 H1 Segment Assets and Liabilities (RMB yuan) | Item | Expressway Service Area Operations | Road Passenger Transport and Ancillary Services | Taiping Interchange Operations and Other Businesses | Inter-segment Eliminations | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 4,564,007,434.66 | 3,324,008,757.66 | 3,061,552,497.18 | (2,508,827,616.82) | 8,440,741,072.68 | | Total Liabilities | 3,430,495,670.97 | 2,096,753,957.36 | 1,218,498,244.66 | (974,166,730.38) | 5,771,581,142.61 | Notes to Parent Company Financial Statement Items This chapter provides detailed notes on the parent company's key financial statement items, including accounts receivable and investment income. - The parent company's net accounts receivable was RMB 48,508,511.12, with a bad debt provision of RMB 5,241,940.18[471][475] - The parent company's investment income was RMB (8,179,718.63), primarily affected by investment income from the disposal of long-term equity investments[476]