深高速(600548) - 2022 Q2 - 季度财报

Definitions Company Profile and Key Financial Indicators Company Basic Information Shenzhen Expressway Company Limited (SZEC) is a Shenzhen-registered joint-stock company, with its A-shares and H-shares listed on the Shanghai Stock Exchange and Hong Kong Stock Exchange respectively Company Stock Overview | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | A-shares | Shanghai Stock Exchange | Shenzhen Expressway | 600548 | | H-shares | The Stock Exchange of Hong Kong Limited | Shenzhen Expressway Company Limited | 00548 | Main Business and Corporate Structure The company's core businesses include toll roads and environmental protection, covering investment, construction, operation, and management, alongside extended services like construction and operation management - The company's main businesses are investment, construction, and operation management of toll roads and major environmental protection businesses (solid waste resource utilization, clean energy)[23] - As of the reporting date, the Group operates and invests in 17 highway projects, with an attributable mileage of approximately 712 km; it also invests in 16 environmental, clean energy, and financial projects[23] - The company's largest shareholder is Xintongchan Company (holding approximately 30.03% of shares), with Shenzhen International as the indirect controlling shareholder (indirectly holding over 50%)[23] Key Accounting Data and Financial Indicators In H1 2022, the company's operating revenue decreased by 2.96% to RMB 4.09 billion, and net profit attributable to shareholders significantly dropped by 29.79% to RMB 849 million, primarily due to pandemic impacts and exchange rate fluctuations H1 2022 Key Accounting Data (Unit: RMB) | Indicator | Current Period (Jan-Jun) | Prior Year (Adjusted) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,094,093,645.65 | 4,219,156,183.22 | -2.96 | | Net Profit Attributable to Shareholders of Listed Company | 848,549,138.56 | 1,208,603,816.90 | -29.79 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Items) | 758,925,627.05 | 1,138,473,872.55 | -33.34 | | Net Cash Flow from Operating Activities | 1,592,514,611.01 | 1,566,271,291.26 | 1.68 | | Indicator | Current Period End | Prior Year End (Adjusted) | YoY Change (%) | | Net Assets Attributable to Shareholders of Listed Company | 22,494,990,772.83 | 25,560,589,952.65 | -11.99 | | Total Assets | 72,205,202,609.00 | 72,304,935,166.59 | -0.14 | H1 2022 Key Financial Indicators | Key Financial Indicator | Current Period (Jan-Jun) | Prior Year (Adjusted) | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.347 | 0.512 | -32.23% | | Basic EPS (Excluding Non-recurring Items) (RMB/share) | 0.306 | 0.480 | -36.25% | | Weighted Average Return on Net Assets (%) | 3.89 | 5.45 | Decreased by 1.56 percentage points | | Weighted Average Return on Net Assets (Excluding Non-recurring Items) (%) | 3.43 | 5.11 | Decreased by 1.68 percentage points | - Due to the inclusion of Shenzhen Investment Holdings Infrastructure through a business combination under common control in January 2022, the company retrospectively adjusted consolidated financial statement data for prior years[27] Non-recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to RMB 89.62 million, primarily driven by RMB 111 million in fair value changes from financial assets H1 2022 Non-recurring Gains and Losses (Unit: RMB) | Non-recurring Gain/Loss Item | Amount | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 4,830,762.65 | | Government Grants | 7,806,721.40 | | Gains/Losses from Fair Value Changes of Financial Assets Held for Trading | 110,627,475.53 | | Other Non-operating Income and Expenses | 4,205,279.19 | | Net Profit/Loss of Subsidiaries from Beginning of Period to Acquisition Date under Common Control | -4,489,534.28 | | Less: Income Tax Impact | 31,661,755.93 | | Less: Impact on Minority Interests (After Tax) | 2,237,287.73 | | Total | 89,623,511.51 | Management Discussion and Analysis Business Overview and Industry Analysis The company pursues a dual-core strategy in toll roads and environmental protection, benefiting from national infrastructure plans and 'dual carbon' goals, with broad market opportunities - The company's main businesses are toll roads and major environmental protection, having established multiple business platforms including urban infrastructure, environmental protection, operations, construction, and new energy[33] - Toll road industry: The national '14th Five-Year Plan' promotes expansion and renovation of busy road sections and market-oriented maintenance, presenting development opportunities for the company[36] - Major environmental protection business: The solid waste resource utilization industry benefits from 'waste-free city' construction, and the clean energy industry sees stable development under 'dual carbon' targets, both being key strategic directions for the company[39][40] Core Competitiveness Analysis The company's core strengths include its position as a state-owned infrastructure platform in the Greater Bay Area, strong integrated project management, continuous innovation, and robust financing capabilities - Greater Bay Area State-owned Platform Advantage: As a Shenzhen state-owned platform, the company benefits from 'dual zone' construction opportunities and secures core road assets like Guang-Shen Expressway through controlling Greater Bay Area Development[42][43] - Integrated Management Capability: Accumulated rich experience in investment, construction, and operation of heavy-asset, concession-based businesses (highways, environmental protection), forming upstream and downstream industry chain synergy[43] - Innovation Capability: Continuous innovation in business models (e.g., PPP), technology applications (e.g., smart highways), and strategic transformation (entering the major environmental protection industry)[44] - Strong Financing Platform: Possesses A+H share listing platforms and added Greater Bay Area Development as an overseas financing platform, with high credit ratings and smooth financing channels[44] Operating Performance Discussion and Analysis H1 2022 saw toll road revenue decline due to pandemic impacts, while environmental protection business advanced steadily with increased organic waste treatment capacity and expanded clean energy operations H1 2022 Revenue Composition | Revenue Category | Amount (RMB Billion) | Proportion of Total Revenue | | :--- | :--- | :--- | | Toll Revenue | 2.41 | 58.87% | | Environmental Business Revenue | 0.84 | 20.42% | | Other Revenue | 0.85 | 20.71% | | Total | 4.09 | 100.00% | Toll Road Business Toll road revenue declined due to pandemic-related traffic reductions, though some projects saw growth from new openings or upgrades, while the company expanded its core road asset portfolio H1 2022 Key Toll Road Operating Data | Toll Road | Average Daily Mixed Traffic Volume (Thousand Vehicles/Day) | Average Daily Toll Revenue (RMB Thousands) | | :--- | :--- | :--- | | Shenzhen Area | | | | Outer Ring Project | 221 | 2,434 | | Jihe East Section | 267 | 1,665 | | Shuiguan Expressway | 221 | 1,500 | | Other Areas | | | | Guang-Shen Expressway | 507 | 6,214 | | West Line Expressway | 215 | 2,918 | | Qinglian Expressway | 44 | 1,713 | - Outer Ring Phase II opened on January 1, 2022, creating a through-route effect with Phase I, positively impacting overall project operations[49][55] - Guanglian Expressway's opening at the end of 2021 diverted traffic from Qinglian Expressway, leading to a significant year-on-year decrease in its toll revenue[51] - Yangmao Expressway completed its expansion and renovation at the end of 2021, improving traffic capacity and increasing toll rates, resulting in a significant year-on-year increase in toll revenue[51] - Completed the acquisition of Shenzhen Investment Holdings Infrastructure, indirectly holding approximately 71.83% of Greater Bay Area Development shares, thereby acquiring interests in Guang-Shen Expressway and West Line Expressway, consolidating regional market share[56] Major Environmental Protection Business The environmental protection segment expanded significantly, with organic waste treatment capacity exceeding 6,000 tons/day through strategic acquisitions and investments, while clean energy operations grew to 648 MW - Increased capital contribution to Land Environmental Protection to RMB 1.55 billion, raising its shareholding from 67.14% to 85.17%, enhancing its business expansion capabilities[60] - Acquired 70% equity of Lisai Environmental Protection, gaining exclusive concession rights for kitchen waste treatment in Longhua District, Shenzhen, boosting market share in the Shenzhen area[62] - As of the end of the reporting period, the Group's designed organic waste treatment capacity exceeded 6,000 tons/day, ranking among the top in the domestic industry[39] H1 2022 Wind Power Project Operating Data | Project | Group Equity Ratio | On-grid Power (MWh) | Operating Revenue (RMB Thousands) | | :--- | :--- | :--- | :--- | | Baotou Nanfeng Project | 100% | 337,725.67 | 115,580.5 | | Xinjiang Mulei Project | 100% | 409,904.20 | 192,064.9 | | Yongcheng Zhuneng Project | 100% | 45,560.66 | 24,191.6 | | Zhongwei Gantang Project | 100% | 53,380.17 | 25,588.8 | Entrusted Management and Other Infrastructure Development The company actively engaged in entrusted construction and management, securing a RMB 290 million contract for 'Four Roads' maintenance, while prudently advancing land development projects and recovering RMB 1.13 billion from a joint venture - Entrusted construction business: Duohua Bridge project completed approximately 94% of its physical progress; Bimeng Garden resettlement community project completed approximately 67%[73] - Entrusted management business: Successfully renewed the comprehensive maintenance project for 'Four Roads' (Nanguang, Yanpai, Yanba, Longda Shenzhen Section), with a 3-year contract period and a total contract value of approximately RMB 290 million[74] - Land development: Guizhou 'Youshan Meishu' project has some commercial and residential units for sale and under construction; Meilincun urban renewal project residential units are sold out, and a capital reduction of RMB 1.13 billion was initiated to recover investment[76][77] Financial Position Analysis H1 2022 net profit declined by 29.79% due to reduced toll revenue and a 64.02% increase in financial expenses from exchange rate fluctuations, while interest-bearing debt rose by 9.23% to RMB 33.22 billion Financial Statement Key Item Variation Analysis (Unit: RMB Thousands) | Item | Current Period Amount | Prior Year Amount | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,094,094 | 4,219,156 | -2.96 | | Operating Cost | 2,501,187 | 2,389,157 | 4.69 | | Financial Expenses | 718,156 | 437,859 | 64.02 | | Investment Income | 338,910 | 546,208 | -37.95 | | Income Tax Expense | 191,640 | 364,212 | -47.38 | - Financial expenses significantly increased by 64.02% year-on-year, primarily due to exchange losses on foreign currency-denominated debts caused by exchange rate fluctuations[84][99] - Investment income decreased by 37.95% year-on-year, mainly due to reduced income from joint/associate toll road enterprises affected by the pandemic, and a higher base from Derun Environment in the prior year[102] - As of June 30, 2022, the Group's total interest-bearing debt was RMB 33.22 billion, an increase of 9.23% from the beginning of the year, primarily due to increased borrowings for the acquisition of Shenzhen Investment Holdings Infrastructure equity[110] Capital Structure and Solvency Indicators | Key Indicator | Current Period End | Prior Year End (Restated) | | :--- | :--- | :--- | | Asset-Liability Ratio | 60.94% | 56.39% | | Net Debt-to-Equity Ratio | 98.26% | 79.13% | | Interest Coverage Ratio (times) | 2.94 | 4.10 | Outlook and Plans In H2 2022, the company plans to strengthen its dual-core strategy by integrating toll road operations with Greater Bay Area Development, advancing key projects, expanding environmental protection and clean energy businesses, and optimizing financing channels - Toll Roads: Enhance refined operations, deeply integrate Greater Bay Area Development businesses, and advance preliminary work for projects like Jihe Expressway expansion and Outer Ring Phase III[149] - Major Environmental Protection: Deepen focus on solid waste resource utilization and clean energy, high-quality completion of Guangming Environmental Park project, increase development and M&A of wind and solar power projects, and build an integrated clean energy system[149][150] - Financial Management: Broaden financing channels, ensure funding for investment expansion and project construction, reduce financing costs, and ensure financial security[150] Corporate Governance Shareholders' Meetings and Executive Changes The company held its 2021 Annual General Meeting on June 30, 2022, approving key resolutions, while Ms. Chen Haishan retired from the board and Ms. Gong Taotao resigned as Board Secretary - One shareholders' meeting (2021 Annual General Meeting) was held in H1 2022, approving 11 proposals including 2021 final dividend, director changes, and bond issuance authorization[151][152] - Board members changed, with Ms. Chen Haishan retiring and Mr. Lv Dawei elected as a new director[153][155] - Board Secretary changed, with Ms. Gong Taotao resigning and Ms. Zhao Guiping, the company's Chief Accountant, concurrently assuming the role[153][155] Profit Distribution Plan The Board recommended no interim dividend for 2022 and no capital reserve conversion, while the 2021 annual profit distribution of RMB 0.62 per share (tax inclusive) totaling RMB 1.35 billion was completed - The Board recommended no interim dividend for 2022 and no conversion of capital reserves into share capital[3][156] - The 2021 annual profit distribution plan has been implemented, distributing a cash dividend of RMB 0.62 per share (tax inclusive), totaling RMB 1.352 billion[157] Environmental and Social Responsibility Environmental Protection and Carbon Reduction The company actively promotes environmental protection and carbon reduction through investments in wind power, energy-efficient lighting, and solar water heaters, processing 401,180 tons of kitchen waste during the period - The company promotes energy conservation and emission reduction through investments in wind power, use of energy-efficient LED lights, and adoption of solar water heaters[167] - During the reporting period, the company processed 401,180 tons of kitchen waste[167] Social Responsibility and Rural Revitalization The company actively fulfills its social responsibility by purchasing RMB 1.21 million in poverty alleviation products and successfully branding 'Daan Garlic' as a nationally recognized agricultural product - As of June 30, 2022, the company purchased RMB 1.2131 million in poverty alleviation products, supporting development in impoverished areas[168] - The company successfully created the 'Daan Garlic' poverty alleviation brand, which was included in the second batch of national famous, special, excellent, and new agricultural products list in 2021[169] Significant Matters Fulfillment of Commitments The company and related parties fulfilled all commitments, notably resolving the non-compete pledge from controlling shareholder Shenzhen Investment Holdings through the acquisition of Shenzhen Investment Holdings Infrastructure - To resolve the non-compete commitment, the company completed the acquisition of 100% equity of Shenzhen Investment Holdings Infrastructure on January 11, 2022, thereby indirectly controlling Greater Bay Area Development and acquiring interests in Guang-Shen Expressway and other road assets[173] Material Litigation and Related Party Transactions The company had no material litigation, but engaged in significant related party transactions, including the HKD 10.48 billion acquisition of Shenzhen Investment Holdings Infrastructure and a RMB 1.13 billion capital reduction from United Land - The company has no material litigation or arbitration matters; subsidiaries Nanjing Wind Power and Land Environmental Protection are involved in several contract disputes, which are still being processed[175][176][177] - Completed the acquisition of Shenzhen Investment Holdings Infrastructure from a related party, with a total cost not exceeding HKD 10.479 billion; the transaction was completed on January 11, 2022[179] - A capital reduction was performed on related party United Land, with the company recovering approximately RMB 1.132 billion; this capital reduction has been completed[179] Material Contracts and Guarantees As of the period end, the company's total guarantees amounted to RMB 4.54 billion, representing 20.18% of net assets, with all guarantees executed in compliance and no overdue situations Guarantees at Period End (Unit: RMB Million) | Guarantee Category | Guarantee Balance at Period End | | :--- | :--- | | External Guarantees (Excluding Subsidiaries) | 1,349.95 | | Guarantees to Subsidiaries | 3,190.53 | | Total Guarantees | 4,540.48 | | Total Guarantees as % of Company's Net Assets | 20.18% | Other Significant Matters The company issued RMB 1.5 billion in corporate bonds and RMB 2 billion in short-term notes, adjusted its strategy to have Greater Bay Area Development acquire 51% of Yanjiang Company, and completed several other equity acquisitions and capital increases - Issued RMB 1.5 billion in 7-year corporate bonds ('22 Shengao 01') with a coupon rate of 3.18%[197] - Issued two tranches of super short-term financing bonds, totaling RMB 2 billion, with coupon rates of 2.12% and 2.00% respectively[197] - Canceled the plan to absorb and merge Yanjiang Company, adjusting to have Greater Bay Area Development increase capital in Yanjiang Company by RMB 2.998 billion, after which Greater Bay Area Development will hold 51% of Yanjiang Company's equity[199][200] Share Changes and Shareholder Information Shareholder Information As of the reporting period end, the company's total share capital remained 2.181 billion shares across 18,492 shareholders, with HKSCC NOMINEES LIMITED, Xintongchan Company, and Shenzhen Guanghui Highway Development as the top three shareholders Top Ten Shareholders' Shareholdings at Period End | Shareholder Name | Shares Held at Period End (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | HKSCC NOMINEES LIMITED | 730,014,042 | 33.48 | Overseas Legal Person | | Xintongchan Industrial Development (Shenzhen) Co., Ltd. | 654,780,000 | 30.03 | State-owned Legal Person | | Shenzhen Guanghui Highway Development Co., Ltd. | 411,459,887 | 18.87 | State-owned Legal Person | | China Merchants Highway Network Technology Holdings Co., Ltd. | 91,092,743 | 4.18 | State-owned Legal Person | | Guangdong Road and Bridge Construction Development Co., Ltd. | 61,948,790 | 2.84 | State-owned Legal Person | - Xintongchan Company and Shenzhen Guanghui Company are related parties under common control of Shenzhen International[212] Bond-Related Information Overview of Outstanding Bonds As of the reporting period end, the company maintained a diverse portfolio of outstanding bonds and debt financing instruments, including corporate bonds and super short-term notes, with new issuances totaling RMB 3.5 billion Overview of Key Outstanding Bonds and Debt Financing Instruments (Unit: RMB Billion) | Abbreviation | Code | Bond Balance | Interest Rate (%) | Maturity Date | | :--- | :--- | :--- | :--- | :--- | | 07 Shenzhen Expressway Bond | 078037 | 0.80 | 5.50 | 2022/07/31 | | 20 Shengao 01 | 163300.SH | 1.40 | 3.05 | 2025/03/20 | | G20 Shengao 1 | 175271.SH | 0.80 | 3.65 | 2025/10/22 | | G21 Shengao 1 | 175979.SH | 1.20 | 3.49 | 2026/04/19 | | 21 Shengao 01 | 188451.SH | 1.00 | 3.35 | 2026/07/27 | | 22 Shengao 01 | 185300.SH | 1.50 | 3.18 | 2029/01/20 | | 18 Shenzhen Expressway MTN002 | 101800882 | 0.80 | 4.49 | 2023/08/15 | | 22 Shenzhen Expressway SCP001 | 012280888 | 1.00 | 2.12 | 2022/09/02 | | 22 Shenzhen Expressway SCP002 | 012281995 | 1.00 | 2.00 | 2023/02/27 | Financial Report Consolidated Financial Statements As of June 30, 2022, the company reported total assets of RMB 72.21 billion, total liabilities of RMB 44.00 billion, and net assets attributable to parent company of RMB 22.50 billion, with H1 operating revenue of RMB 4.09 billion and net profit of RMB 880 million Consolidated Income Statement Core Data (Jan-Jun 2022) | Item | Amount (RMB) | | :--- | :--- | | Total Operating Revenue | 4,094,093,645.65 | | Total Operating Cost | 3,467,660,986.71 | | Investment Income | 338,909,623.64 | | Operating Profit | 1,067,282,719.24 | | Total Profit | 1,071,487,998.43 | | Net Profit | 879,848,262.33 | | Net Profit Attributable to Parent Company Shareholders | 848,549,138.56 | Consolidated Cash Flow Statement Core Data (Jan-Jun 2022) | Item | Amount (RMB) | | :--- | :--- | | Net Cash Flow from Operating Activities | 1,592,514,611.01 | | Net Cash Flow from Investing Activities | (2,621,719,346.50) | | Net Cash Flow from Financing Activities | 1,016,160,256.48 | | Net Increase in Cash and Cash Equivalents | 50,040,346.21 | Notes to Financial Statements (Selected) Notes detail accounting policies, including the traffic-flow method for toll road concession amortization, equity method for investments in associates, and segment information highlighting tolling as the primary profit driver - Toll road concession rights, classified as intangible assets, are amortized using the traffic-flow method, requiring management to regularly review and adjust the unit amortization amount based on projected total traffic volume[329] Book Value of Major Associates' Investments at Period End (Unit: RMB) | Investee | Balance at Period End | | :--- | :--- | | Derun Environment | 5,063,080,829.44 | | Guang-Shen-Zhu Expressway Co., Ltd. | 5,743,481,046.26 | | Guangdong Guangzhu West Line Expressway Co., Ltd. | 3,678,996,482.20 | | Shenzhen International United Land Co., Ltd. | 1,230,568,579.64 | H1 2022 Segment Financial Information (Unit: RMB) | Item | Toll Business | Major Environmental Protection Business | Other | Total | | :--- | :--- | :--- | :--- | :--- | | Revenue from External Transactions | 2,410,155,296.36 | 836,209,660.64 | 847,728,688.65 | 4,094,093,645.65 | | Total Profit | 1,164,210,639.65 | 166,163,326.77 | (429,121,051.13) | 1,071,487,998.43 | | Total Assets | 43,129,457,888.09 | 18,855,735,991.82 | 8,152,165,718.65 | 72,205,202,609.00 |