ANHUI EXPRESSWAY(SH:600012)2020-03-29 16:00Financial Performance - The company's net profit for 2019, according to Chinese accounting standards, was RMB 1,251,643 thousand, while the profit under Hong Kong accounting standards was RMB 1,239,823 thousand[5]. - The distributable profit for shareholders for 2019 is RMB 1,239,823 thousand, with a proposed cash dividend of RMB 2.3 per 10 shares, totaling RMB 381,480.30 thousand[5]. - The company's operating revenue for 2019 was CNY 2,946,420,820.29, a decrease of 0.69% compared to 2018[21]. - The net profit attributable to shareholders for 2019 was CNY 1,097,546,191.64, down 2.27% from the previous year[21]. - The net profit after deducting non-recurring gains and losses was CNY 1,084,806,943.04, reflecting a decline of 3.20% year-on-year[21]. - Basic earnings per share for 2019 were CNY 0.6617, a decrease of 2.27% from 2018[24]. - The weighted average return on equity was 10.58%, down 0.98 percentage points from the previous year[24]. - The company reported a total revenue of RMB 8,679,994.58 million for the year 2019, with a year-on-year growth of 38.93%[42]. - The net profit attributable to shareholders was RMB 562,036.61 million, reflecting a 24.51% increase compared to the previous year[42]. Risk Management - The report includes a detailed description of existing risk factors and future development strategies[6]. - The company has established a comprehensive risk management framework to address potential future risks[6]. - The company is facing challenges due to the gradual reduction of toll collection periods, necessitating diversification strategies[41]. - The Ministry of Transport aims to eliminate provincial toll stations by the end of 2019, which will fundamentally change the operational management model of the highway industry[41]. - The company faces risks from the expiration of operating rights for toll roads, with existing projects nearing their operational limits, potentially impacting sustainable development if not supplemented by new projects[102]. - The company is sensitive to macroeconomic fluctuations, with highway traffic and toll revenue closely linked to GDP, posing challenges due to current economic pressures[103]. Investment and Expansion - The company completed an investment of RMB 17.19 billion in the He-Ning expansion project, with a cumulative investment of RMB 36.49 billion by the end of the reporting period[47]. - The company signed a share acquisition agreement to purchase 51% of the Istanbul Third Bridge and North Ring Expressway in Turkey, marking a significant step in its "going out" strategy[48]. - The company plans to invest 6 million RMB to acquire a 10% stake in Anhui Jiaokong Information Industry Company, which was established in collaboration with several partners[86]. - The company intends to invest 48.195 million USD to acquire a 51% stake in the Istanbul Third Bridge and North Ring Expressway project[87]. - The company is actively pursuing diversification and transformation strategies in response to the challenges faced in the toll road sector[83]. Shareholder Information - The total number of ordinary shares issued by the company is 1,658,610,000, with 70.28% listed on the Shanghai Stock Exchange[156]. - The largest shareholder, Anhui Transportation Holding Group Co., Ltd., holds 524,644,220 shares, accounting for 31.63% of total shares[161]. - The total number of A-share shareholders is 29,948, while H-share shareholders total 67 as of the end of the reporting period[162]. - The company has maintained a cash dividend policy for 23 consecutive years, with a cash dividend of 2.30 RMB per 10 shares in 2019, totaling 381,480.30 thousand RMB, which is 34.76% of the net profit attributable to ordinary shareholders[106]. Corporate Governance - The company has a governance structure consisting of a shareholders' meeting, board of directors, supervisory board, and management team, ensuring effective decision-making and compliance[192]. - The company has strictly adhered to information disclosure regulations, publishing 4 periodic reports, 17 A-share temporary announcements, and 24 H-share temporary announcements, ensuring transparency and compliance with both exchanges[197]. - The company has appointed a new chairman, Xiang Xiaolong, following the resignation of the previous chairman, Qiao Zhuanfu[186]. - The board of directors consists of 9 members, including 4 executive directors, 2 non-executive directors, and 3 independent directors, ensuring a diverse background in various fields such as finance and engineering[195]. Social Responsibility - The company actively engages in poverty alleviation efforts, focusing on targeted assistance in the impoverished village of Lishucun, Anhui Province[143]. - In 2019, the company adopted an innovative poverty alleviation model, integrating party building with precise poverty alleviation efforts[144]. - The company invested a total of RMB 3.0897 million in poverty alleviation projects, helping 920 registered impoverished individuals to escape poverty[145]. - The company donated RMB 5 million to aid COVID-19 prevention efforts in early 2020[152]. Employee Management - The total number of employees in the parent company and major subsidiaries is 2,147, with 1,466 in the parent company and 681 in major subsidiaries[186]. - The company emphasizes employee training, implementing targeted training programs for different levels and positions[191]. - The company established an enterprise annuity plan, contributing RMB 10.98 million in 2019 to incentivize employee retention[190]. Financial Management - The company has a total of 19 entrusted loans with a principal amount of 2,267 million RMB, with an annualized return rate of 5.8425%[132]. - The expected return from the entrusted loans amounts to 1,000 million RMB, with actual returns matching the expected returns[132]. - The company has maintained a consistent quarterly interest collection method, ensuring steady cash flow[134]. - The company has adhered to legal procedures for all entrusted loans, ensuring compliance and transparency[132].