华昱高速(01823) - 2025 - 中期财报

Company Information Huayu Expressway Group Limited's interim report provides essential company details including board members, committees, key personnel, and corporate contacts - Board members include executive directors Chen Yangnan (Chairman), Fu Jiepin (CEO), Liu Baohua, and independent non-executive directors Zhu Jianhong, Hu Liege, Lin Hanquan[5] - The company's stock code is 1823, official website is www.huayu.com.hk, and auditor is Crowe (HK) CPA Limited[1][6] Management Discussion and Analysis This section analyzes the Group's financial performance, operations, liquidity, risk management, and future outlook, noting a significant decline in revenue and profit, turning to loss due to economic slowdown Financial Review During the reporting period, the Group's revenue significantly decreased by 41.1% year-on-year, gross profit fell by 54.8%, and gross margin declined by 5.1 percentage points, primarily due to reduced alcoholic beverage sales amid China's economic slowdown and weak consumer spending Financial Review Key Data | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 75,800 | 128,800 | -41.1% | | Gross Profit | 13,200 | 29,200 | -54.8% | | Gross Margin | 17.5% | 22.6% | -5.1pp | | Profit/(Loss) for the Period | (25,400) | 14,000 | Turned from profit to loss | - Qingping Expressway toll revenue was approximately RMB 31.1 million, a year-on-year decrease of approximately 8.8%; alcoholic beverage sales revenue was approximately RMB 44.8 million, a year-on-year decrease of approximately 52.7%[7] - Administrative expenses decreased by 5.5% year-on-year to RMB 18.9 million, sales and distribution costs decreased by 5.5% year-on-year to RMB 5.2 million, while finance costs significantly increased by 150% year-on-year to RMB 3.0 million, primarily for alcoholic beverage trading bank financing[13][14][15] Liquidity and Financial Resources The Group primarily funds operations and capital expenditures through internal resources, bank loans, and other borrowings, with total borrowings increasing and cash equivalents decreasing, yet maintaining prudent financial management and sufficient bank credit lines Total Bank and Other Borrowings (As of June 30, 2025 vs. December 31, 2024) | Metric | 2025 June 30 (RMB '000) | 2024 December 31 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Total Bank and Other Borrowings | 256,400 | 244,600 | +4.8% | | Total Cash and Cash Equivalents | 119,200 | 185,800 | -35.9% | - The Group's total bank credit lines with mainland Chinese banks and other financial institutions are approximately RMB 582.0 million, primarily for working capital in the alcoholic beverage trading segment[18] - The ratio of total outstanding bank and other borrowings to total equity was 0.24 (December 31, 2024: 0.23)[18] Intangible Assets – Service Concession Arrangements The Group's intangible assets primarily consist of the operating and toll collection rights for Qingping Expressway, with no impairment indicators or provisions recognized during the reporting period - The service concession arrangement grants the Group the right to operate Qingping Expressway and collect tolls[19] - No further impairment was recognized during the period[19] Employees and Remuneration As of June 30, 2025, the Group's total employees and remuneration expenses slightly increased, with compensation policies based on performance and offering provident funds, pensions, medical insurance, and discretionary bonuses - As of June 30, 2025, the Group employed a total of 389 employees in China and Hong Kong (December 31, 2024: 387 employees)[20] - During the period, the Group's total staff costs were approximately RMB 16.9 million (six months ended June 30, 2024: approximately RMB 16.5 million)[20] - The Group's remuneration policy is performance-based, offering provident fund schemes, state-managed retirement schemes, medical insurance, and potentially discretionary bonuses, restricted share awards, and employee share options[20] Foreign Exchange Risk The Group primarily operates in China with most transactions settled in RMB, though some cash and bank deposits are denominated in HKD; no foreign exchange hedging was undertaken, but management monitors risks and considers hedging when necessary - The Group primarily operates in China, with most transactions settled in RMB, and some cash and bank deposits denominated in HKD[21] - As of June 30, 2025, the Group had not entered into any hedging arrangements to hedge foreign currency risk[21] Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[23] Significant Acquisitions and Disposals During the reporting period, the Group did not undertake any significant acquisitions or disposals of subsidiaries and associates - During the period, the Group did not make any significant acquisitions or disposals of subsidiaries and associates[24] Pledge of Assets Some of the Group's bank and other borrowings are guaranteed by company directors and secured by equity in non-wholly owned subsidiaries, land and buildings, and inventories - Long-term secured bank loans of approximately RMB 38.0 million are guaranteed by the Company and a subsidiary's director, and secured by the entire equity interest in Shenzhen Huayu Expressway Investment Co., Ltd[25] - Other borrowings of approximately RMB 18.4 million are secured by the Group's inventories with a carrying amount of approximately RMB 92.0 million[25] Business Review Both of the Group's main businesses, Qingping Expressway and alcoholic beverage trading, were negatively impacted by the macroeconomic environment, with declining toll revenue and vehicle traffic, and a significant reduction in alcoholic beverage trading revenue leading to segment losses, while the integrated production base in Renhuai, Guizhou, progresses smoothly Qingping Expressway - Qingping Expressway total toll revenue was approximately RMB 31.1 million, a decrease of approximately 8.8% compared to the prior period[26] - Average daily traffic was approximately 1.7 million vehicles per month, a decrease of approximately 10.5% compared to the prior period[26] - Average toll fee per vehicle was approximately RMB 3.0 during