FUJIAN EXPRESSWAY(SH:600033)2022-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥1,309,544,843.96, a decrease of 12.24% compared to ¥1,492,218,682.75 in the same period last year [25]. - The net profit attributable to shareholders of the listed company was ¥497,813,910.62, an increase of 2.56% from ¥485,399,786.08 in the previous year [25]. - The net cash flow from operating activities was ¥894,292,679.42, down 14.14% from ¥1,041,568,779.46 in the same period last year [25]. - The total assets at the end of the reporting period were ¥17,448,608,548.99, an increase of 4.51% compared to ¥16,695,821,660.79 at the end of the previous year [25]. - The basic earnings per share for the first half of 2022 was ¥0.1814, a 2.54% increase from ¥0.1769 in the same period last year [26]. - The company achieved toll revenue of ¥1,292,992,670.42, a year-on-year decrease of 12.09% [34]. - Operating revenue was ¥1,309,544,843.96, down 12.24% compared to the previous year [34]. - The net profit attributable to the parent company was ¥497,813,910.62, an increase of 2.56% year-on-year [34]. - Financial expenses decreased by 20.77% to ¥40,527,558.17 due to lower financing costs [34]. - The company’s weighted average return on equity was 4.64% [34]. Corporate Governance and Compliance - The board of directors confirmed the authenticity, accuracy, and completeness of the semi-annual report, assuming legal responsibility for any misstatements [4]. - The report period was not audited, but the financial report was declared true and complete by the responsible persons [5]. - The management team is responsible for ensuring the accuracy of the financial statements presented in the report [5]. - The company has not faced any significant governance issues, as all directors were able to ensure the report's integrity [8]. - The company has a commitment to transparency, as indicated by the detailed disclosure of its financial and operational status [4]. Risk Management - The company has detailed risk factors and countermeasures in the board report regarding future development [8]. - The company faces macroeconomic risks due to geopolitical tensions and monetary policy shifts, impacting transportation demand [45]. - The company plans to enhance its main business operations and explore derivative economic development paths to mitigate risks from economic fluctuations [45]. - The company is at risk of traffic diversion due to the increasing density of the highway network in Fujian Province, which has over 6,000 kilometers of operational highways [48]. - The company aims to improve operational management and engage in differentiated marketing strategies to counteract potential traffic diversion [48]. - The company’s revenue heavily relies on highway tolls, posing investment development risks due to regulatory impacts and a lack of diversified income sources [48]. - The company will conduct feasibility studies for investment projects and establish a risk control team to enhance decision-making processes [48]. Shareholder Information - The total number of common shareholders as of the end of the reporting period is 87,576 [73]. - The top ten shareholders hold a total of 1,600,000,000 shares, representing 58.48% of the total shares [73]. - Fujian Expressway Group Co., Ltd. is the largest shareholder, holding 992,367,729 shares, which is 36.16% of the total shares [73]. - The second largest shareholder, China Merchants Highway Network Technology Holdings Co., Ltd., holds 487,112,772 shares, accounting for 17.75% [73]. Financial Instruments and Assets - The company confirmed financial assets and liabilities upon entering financial instrument contracts [175]. - Financial assets are classified into three categories: amortized cost, fair value through profit or loss, and fair value through other comprehensive income [178]. - Financial liabilities are classified into fair value through profit or loss, loan commitments at below market rates, and amortized cost [178]. - The company uses the effective interest method for subsequent measurement of financial liabilities at amortized cost [178]. - Financial assets are initially measured at fair value, with transaction costs directly expensed for those measured at fair value through profit or loss [177]. Cash Flow and Liquidity - The net cash flow from operating activities for the first half of 2022 was ¥894,292,679.42, a decrease of 14.2% compared to ¥1,041,568,779.46 in the first half of 2021 [123]. - The total cash inflow from operating activities was ¥1,398,862,079.62, down from ¥1,464,258,884.29 in the previous year, reflecting a decline of approximately 4.5% [123]. - The cash outflow from operating activities increased to ¥504,569,400.20, compared to ¥422,690,104.83 in the same period last year, representing a rise of about 19.4% [123]. - The net increase in cash and cash equivalents for the first half of 2022 was ¥1,183,800,813.43, compared to ¥311,033,283.78 in the same period of 2021, indicating a growth of approximately 280.5% [123]. - The ending balance of cash and cash equivalents reached ¥1,550,308,507.06, up from ¥658,268,563.20 at the end of the previous year [123]. Capital Structure and Financing - The company issued ¥1 billion in corporate bonds during the reporting period [37]. - The company has issued corporate bonds with a total outstanding amount of 60,000 million RMB at an interest rate of 3.54% [80]. - The company also issued bonds in 2022 with a total outstanding amount of 60,000 million RMB at an interest rate of 3.04% [80]. - The credit rating for the bonds remains at AA+ with a stable outlook, with no changes during the reporting period [83]. - The current liquidity ratio increased to 109.78%, up 54.03 percentage points from the previous year's end of 55.75% due to the receipt of RMB 1 billion from corporate bonds [85]. - The quick ratio rose to 108.80%, an increase of 55.67 percentage points compared to the previous year's 53.13%, primarily driven by the same bond issuance [88]. - The debt-to-asset ratio increased to 26.38%, up 3.43 percentage points from 22.95% last year, attributed to the issuance of RMB 1 billion in corporate bonds [88]. Subsidiaries and Operations - The company has three subsidiaries: Fujian Fuquan Expressway Co., Ltd. (63.06% ownership), Fujian Luoning Expressway Co., Ltd. (100% ownership), and Fujian Quanzhou-Xiamen Expressway Management Co., Ltd. (100% ownership) [157]. - The company operates in the expressway industry, focusing on the investment, development, construction, and operation of expressways, including the Shenhai Expressway segments from Quanzhou to Xiamen and Fuzhou to Quanzhou [154]. - The company operates a total of 282 kilometers of highways, with no new highway mileage added during the reporting period [32]. Accounting and Reporting Standards - The company follows the Chinese Accounting Standards, ensuring compliance and accuracy in financial reporting [160]. - The financial statements are prepared based on the principle of continuous operation, ensuring a true and complete reflection of the company's financial status and operating results [160]. - The company assesses impairment for investments in subsidiaries, associates, and joint ventures according to specified methods [196].