Financial Performance - The company recorded revenue of approximately RMB 276,800,000 for the six months ended June 30, 2023, representing an increase of about 19.9% compared to RMB 230,900,000 in the same period last year[7]. - The company achieved a gross profit of approximately RMB 86,800,000, a 22.1% increase from RMB 71,100,000 year-on-year, with a gross margin of 31.4%, up from 30.8%[8]. - The net profit for the period was approximately RMB 370,000,000, a significant increase of about 527.1% from RMB 59,000,000 in the previous year, primarily due to a one-time gain from the sale of the Suiyue Expressway amounting to approximately RMB 320,300,000[16]. - The company reported a total comprehensive income of RMB 371,702,000 for the period, compared to RMB 57,390,000 in the same period last year[61]. - The company reported a net profit of RMB 342,400,000 from discontinued operations, significantly higher than RMB 24,587,000 in the previous year[103]. - The company reported a net cash generated from operating activities of RMB 49,230 thousand for the six months ended June 30, 2023, down from RMB 91,197 thousand in the same period of 2022, reflecting a decrease of approximately 46.0%[74]. Revenue Sources - Toll revenue from the Qingping Expressway for the period was approximately RMB 37,800,000, an increase of about 16.3% from RMB 32,500,000 in the previous year, with total vehicle traffic of approximately 11,900,000, up 20.2% from 9,900,000[7]. - The liquor trading business recorded revenue of approximately RMB 239,000,000, a 20.5% increase from approximately RMB 198,400,000 in the same period last year, with adjusted EBITDA of approximately RMB 69,900,000[29]. - Toll revenue from ongoing operations was RMB 37.8 million, up 16.5% from RMB 32.5 million in the previous year[86]. - Alcohol sales generated RMB 239.0 million, representing a 20.5% increase compared to RMB 198.4 million in the prior year[86]. Expenses and Liabilities - Administrative expenses increased by approximately 93.4% to RMB 35,000,000 from RMB 18,100,000 in the previous year, mainly due to one-time special bonuses paid to employees involved in the sale of the Suiyue Expressway[13]. - The company’s total liabilities decreased significantly, with non-current liabilities related to lease obligations dropping from RMB 263 thousand to zero[69]. - The company incurred a depreciation and amortization expense of RMB 18,897 thousand for the first half of 2023, compared to RMB 27,641 thousand in the same period of 2022, indicating a decrease of approximately 31.7%[95]. Cash and Liquidity - The company maintained cash and cash equivalents totaling approximately RMB 424,500,000 as of June 30, 2023, compared to RMB 205,700,000 at the end of 2022[17]. - Cash and cash equivalents increased to RMB 424,512,000 from RMB 205,659,000, reflecting a strong liquidity position[63]. - Cash and cash equivalents rose from RMB 205,659,000 to RMB 424,512,000, an increase of approximately 106.5%[121]. Shareholder Information - The group declared a special interim dividend of HKD 0.121 per share (equivalent to RMB 0.106), which was distributed on May 18, 2023[37]. - The company declared a special interim dividend of RMB 43,767 thousand during the reporting period[71]. - As of June 30, 2023, Mr. Chen Yangnan holds a 72.71% stake in the company through Velocity International Limited, which owns 300,000,000 shares[40]. Strategic Acquisitions and Investments - The group agreed to acquire 65% of Huajia Wine Industry (Shenzhen) Co., Ltd., which is expected to enhance the group's position in the wine supply chain and drive growth in the liquor trading business[30]. - The group further acquired 21% of Guizhou Renhuai Huayu Wine Industry Co., Ltd., which will result in the group holding 51% of the company, allowing it to consolidate financial results into its financial statements[32]. - The company injected an additional RMB 31,000,000 into Guizhou Renhuai Huayu Liquor Co., Ltd. during the six months ended June 30, 2023[116]. Operational Efficiency and Future Plans - The company plans to conduct more sales and marketing activities, including wine tasting events and promotional meetings, to enhance brand presence[38]. - The company plans to continue focusing on expanding its operational efficiency and exploring new market opportunities to drive future growth[92]. - The group aims to leverage its successful experience in completing multiple toll expressway projects in China to seek new infrastructure project opportunities[38]. Compliance and Governance - The company has maintained compliance with the corporate governance code as per the listing rules throughout the reporting period[49]. - The audit committee has reviewed the financial reporting procedures and internal controls, ensuring adherence to relevant accounting standards[52]. - The company has not identified any significant issues that would affect the compliance of the interim financial report with the relevant accounting standards[142].
华昱高速(01823) - 2023 - 中期财报