宁沪高速(600377) - 2021 Q3 - 季度财报

Key Financial Data Key Accounting Data and Financial Indicators Q3 2021 saw revenue decline 3.23% and net profit 21.33% due to pandemic, yet year-to-date (Jan-Sep) revenue surged 43.09% and net profit 99.87%, reflecting strong recovery Key Financial Indicators for Q3 and Jan-Sep 2021 | Indicator | Current Period (Q3 2021) | YoY Change (%) | Year-to-Date (Jan-Sep 2021) | YoY Change (Jan-Sep) (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2.60 billion CNY | -3.23% | 7.66 billion CNY | 43.09% | | Net Profit Attributable to Parent Company Shareholders | 1.11 billion CNY | -21.33% | 3.79 billion CNY | 99.87% | | Net Cash Flow from Operating Activities | 1.55 billion CNY | 3.91% | 4.15 billion CNY | 73.93% | | Basic EPS (CNY/share) | 0.2201 | -21.33% | 0.7520 | 99.87% | | Total Assets (Period-end) | 67.51 billion CNY | 10.50% (vs. prior year-end) | - | - | | Total Equity Attributable to Parent Company Shareholders (Period-end) | 29.99 billion CNY | 6.29% (vs. prior year-end) | - | - | Non-recurring Gains and Losses Items and Amounts Year-to-date, the company's total non-recurring gains and losses amounted to CNY 356 million, primarily driven by fair value changes and investment income from financial assets and liabilities totaling CNY 456 million, with government grants also contributing approximately CNY 19 million Non-recurring Gains and Losses Items (Year-to-Date) | Item | Amount (Year-to-Date, CNY) | Description | | :--- | :--- | :--- | | Gains/losses from fair value changes and investment income on financial assets/liabilities held for trading | 456,028,067.04 | Mainly fair value changes and dividends from other non-current financial assets held by subsidiary Ninghu Investment Company | | Government grants recognized in current profit/loss | 18,949,829.22 | Mainly construction compensation for Ningchang Expressway, VAT additional deduction, and provincial border toll station renovation grants | | Total | 355,865,598.46 | - | Analysis of Major Financial Indicator Changes The company's Q3 net profit attributable to parent company shareholders decreased by 21.33% year-on-year, primarily due to the late July pandemic outbreak impacting core road and bridge operations and ancillary services, alongside increased amortization and financial expenses from new road and bridge projects being capitalized - Q3 net profit attributable to parent company shareholders decreased by 21.33% year-on-year, primarily due to the late July pandemic impact and increased amortization and financial expenses from new road and bridge projects commencing operations[8] Shareholder Information Shareholding Status As of the reporting period end, the company had 31,666 shareholders, with a stable and concentrated equity structure where the top two state-owned legal entity shareholders, Jiangsu Communications Holding Co., Ltd. and China Merchants Expressway Network Technology Holdings Co., Ltd., collectively held over 66%, indicating strong control - As of the reporting period end, the company had 31,258 A-share shareholders and 408 H-share shareholders, totaling 31,666 shareholders[10] Top Ten Shareholders' Holdings | Shareholder Name | Shareholder Type | Shareholding Percentage (%) | | :--- | :--- | :--- | | Jiangsu Communications Holding Co., Ltd. | State-owned Legal Entity | 54.44 | | China Merchants Expressway Network Technology Holdings Co., Ltd. | State-owned Legal Entity | 11.69 | | Mitsubishi UFJ Financial Group, Inc. | Overseas Legal Entity | 2.91 | | BlackRock, Inc. | Overseas Legal Entity | 2.63 | | JPMorgan Chase & Co. | Overseas Legal Entity | 2.14 | Other Noteworthy Matters Business Progress The company's business experienced a brief pandemic impact in Q3, but overall year-to-date performance benefited from a strong recovery in toll collection, driving significant revenue and profit growth, with new projects also contributing revenue Business Progress for July-September In Q3 2021, total revenue decreased by 3.23% to CNY 2.60 billion due to late July pandemic impacts, with core toll and ancillary services revenue declining, while increased amortization and maintenance costs from new road and bridge projects led to a 21.33% year-on-year drop in net profit attributable to parent company shareholders Q3 2021 Revenue by Business Segment | Business Segment | Revenue (K CNY) | YoY Change (%) | | :--- | :--- | :--- | | Toll Collection Business | 2,080,575 | -4.79% | | Ancillary Services | 323,183 | -7.67% | | Real Estate Business | 166,346 | +29.74% | | Other Businesses | 27,533 | +30.88% | | Total | 2,597,636 | -3.23% | - Q3 operating costs increased by 19.16% year-on-year, primarily due to increased amortization of highway operating rights from new road and bridge projects, alongside higher road maintenance and real estate business costs[14] Business Progress for January-September In the first three quarters of 2021, the company's business strongly recovered from pandemic impacts, with cumulative revenue reaching CNY 7.66 billion, up 43.09% year-on-year, primarily driven by a 54.73% increase in road toll revenue, leading to a 99.87% surge in net profit attributable to parent company shareholders despite higher costs from new project operations - In the first three quarters, road toll revenue was approximately CNY 6.13 billion, a 54.73% year-on-year increase, serving as the primary driver for total revenue growth[15] Daily Average Revenue of Major Road and Bridge Projects (Jan-Sep 2021, K CNY/day) | Project | Jan-Sep 2021 | Prior Period | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Huning Expressway | 14,016.37 | 9,505.52 | 47.46% | | Ningchang Expressway | 2,667.29 | 1,648.67 | 61.78% | | Xiyi Expressway | 1,157.53 | 635.76 | 82.07% | | Jiangyin Bridge | 3,452.37 | 2,437.84 | 41.62% | | Yanjiang Expressway | 4,792.15 | 3,048.24 | 57.21% | - In the first three quarters, net profit attributable to parent company shareholders was approximately CNY 3.79 billion, a 99.87% year-on-year increase[18] Financial Indicator Changes The company's financial position significantly changed due to major project commissioning and capital operations, with construction in progress decreasing and transferring to intangible and fixed assets, while liabilities increased from bond and loan financing to support projects; strong revenue and investment income drove profit doubling, and operating cash flow improved significantly despite reduced financing cash inflows Reasons for Significant Balance Sheet Item Changes As of the reporting period end, several balance sheet items significantly changed from the beginning of the year, primarily due to the completion and commissioning of Yichang Expressway and Wufengshan Bridge, leading to an 86.54% decrease in Construction in Progress, transferred to Intangible Assets (+66.91%) and Fixed Assets (+31.50%); Long-term Equity Investments also grew 35.43% from new investment in Zijin Trust, and Bonds Payable increased 103.03% due to new bond issuance Major Balance Sheet Changes (vs. Prior Year-end) | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Construction in Progress | -86.54% | Yichang Expressway and Wufengshan Bridge completed and commissioned, transferring construction in progress | | Intangible Assets | +66.91% | Yichang Expressway and Wufengshan Bridge completed and commissioned, transferred from construction in progress | | Fixed Assets | +31.50% | Yichang Expressway and Wufengshan Bridge completed and commissioned, transferred from construction in progress | | Long-term Equity Investments | +35.43% | New investment in Zijin Trust and increased investment income from associates | | Bonds Payable | +103.03% | Issued CNY 1 billion corporate bonds and CNY 1 billion medium-term notes during the reporting period | | Financial Assets Held for Trading | +44.09% | Increased wealth management products held at period-end compared to period-start | Reasons for Significant Income Statement Item Changes (Jan-Sep) The income statement for the first three quarters showed strong year-on-year growth, with operating revenue up 43.09% due to recovery in toll road business, and investment income and fair value change gains surging 125.40% and 427.72% respectively, driven by associate performance and financial asset revaluation, while financial expenses increased 51.08% due to interest capitalization for new projects Major Income Statement Changes (YoY) | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Operating Revenue | +43.09% | Strong recovery of toll road business from prior year's pandemic and free toll policies | | Financial Expenses | +51.08% | New expressways commenced operation, leading to capitalization of borrowing costs | | Gains from Fair Value Changes | +427.72% | Increased fair value changes in other non-current financial assets held by subsidiaries | | Investment Income | +125.40% | Significant increase in operating performance of associates, contributing to higher investment income | Analysis of Cash Flow Statement Item Changes (Jan-Sep) The cash flow structure changed in the first three quarters, with net cash flow from operating activities surging 73.93% year-on-year due to strong toll revenue recovery, while net cash flow from financing activities decreased 64.47% primarily due to reduced borrowing compared to the prior year's pandemic-driven increase and higher dividend payments Major Cash Flow Statement Changes (YoY) | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | +73.93% | Strong recovery in toll revenue and commissioning of new road and bridge projects | | Net Cash Flow from Financing Activities | -64.47% | Increased borrowing in prior period due to pandemic, reduced borrowing and increased dividend payments in current period | Progress of Significant Matters During the reporting period, the company actively pursued several major capital operations, including initiating termination agreement negotiations for the Turkey road and bridge project, increasing its stake in Jiangsu Bank, completing a CNY 1.99 billion capital injection into Zijin Trust for a 20% stake, and divesting part of its Kuaile Company equity to optimize its investment portfolio - The company decided to negotiate a Termination Agreement with Turkey's IC Company regarding the ICA project[24] - The company received approval to increase its stake in Jiangsu Bank and has cumulatively increased its holdings by 141 million shares, resulting in a total 3.90% stake in Jiangsu Bank[24] - The company completed a CNY 1.99 billion capital increase in Zijin Trust, acquiring a 20% equity stake, with industrial and commercial registration changes finalized[24] - The company transferred 11.98% of its shares in Kuaile Company to Jiangsu Communications Holding, reducing its post-transfer stake to 21.22%[24][25] Quarterly Financial Statements Type of Audit Opinion The financial statements for this quarter are unaudited - The third-quarter financial statements are unaudited[3][26] Financial Statements This section presents the unaudited consolidated balance sheet as of September 30, 2021, and the consolidated income statement and cash flow statement for January-September 2021 Consolidated Balance Sheet As of September 30, 2021, the company's total assets were CNY 67.51 billion, up 10.50% from the beginning of the year; total liabilities were CNY 32.57 billion, up 16.14%; and total equity attributable to parent company shareholders was CNY 29.99 billion, up 6.29% Consolidated Balance Sheet Summary (September 30, 2021) | Item | Amount (CNY) | | :--- | :--- | | Total Assets | 67,510,588,317.17 | | Total Liabilities | 32,573,814,721.22 | | Total Equity Attributable to Parent Company Shareholders | 29,985,198,962.07 | Consolidated Income Statement In the first three quarters of 2021, the company achieved total operating revenue of CNY 7.66 billion, up 43.09% year-on-year; net profit attributable to parent company shareholders was CNY 3.79 billion, up 99.87%; and basic earnings per share were CNY 0.7520 Consolidated Income Statement Summary (Jan-Sep 2021) | Item | Amount (CNY) | | :--- | :--- | | Total Operating Revenue | 7,659,400,764.81 | | Operating Profit | 4,843,853,851.60 | | Net Profit Attributable to Parent Company Shareholders | 3,788,305,556.08 | | Basic EPS (CNY/share) | 0.7520 | Consolidated Cash Flow Statement In the first three quarters of 2021, net cash flow from operating activities was CNY 4.15 billion, up 73.93% year-on-year; net cash flow from investing activities was -CNY 4.75 billion; net cash flow from financing activities was CNY 831 million; and cash and cash equivalents at period-end totaled CNY 582 million Consolidated Cash Flow Statement Summary (Jan-Sep 2021) | Item | Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | 4,146,459,005.34 | | Net Cash Flow from Investing Activities | -4,746,895,037.52 | | Net Cash Flow from Financing Activities | 831,259,804.72 | | Cash and Cash Equivalents at Period-end | 581,812,865.89 | Adjustments for New Lease Standards The company states in this report that adjustments for the first-time adoption of new lease standards from 2021 are not applicable - The company clarified that adjustments for the first-time adoption of new lease standards from 2021 are not applicable[33]