JLEC(SH:601518)2022-08-19 16:00Financial Performance - The company's operating revenue for the first half of 2022 was approximately CNY 480.87 million, a decrease of 4.60% compared to CNY 504.07 million in the same period last year[16]. - The net profit attributable to shareholders for the first half of 2022 was approximately CNY 175.68 million, representing a 1.43% increase from CNY 173.20 million in the previous year[16]. - The net cash flow from operating activities was approximately CNY 259.22 million, down 5.18% from CNY 273.37 million in the same period last year[16]. - The total assets at the end of the reporting period were approximately CNY 5.98 billion, a decrease of 9.95% from CNY 6.65 billion at the end of the previous year[16]. - The company's weighted average return on equity was 4.22%, a decrease of 0.29 percentage points from 4.51% in the same period last year[16]. - The company achieved operating revenue of 48,087.15 million RMB, a decrease of 4.60% compared to the same period last year[26]. - The net profit attributable to the parent company's shareholders was 17,567.78 million RMB, reflecting the impact of reduced traffic flow due to COVID-19[22]. - Operating costs decreased by 3.40% to 187,558.31 million RMB, primarily due to reduced traffic and effective cost control measures[26][27]. - The company reported a 97.06% decrease in current non-current liabilities due within one year, amounting to ¥12.64 million, due to loan repayments[30]. - The company reported a significant increase in debt repayment cash outflow, which reached CNY 750,000,000.00, compared to CNY 160,000,000.00 in the same period last year, an increase of 368.75%[94]. Assets and Liabilities - The total assets decreased from ¥6.64 billion to ¥5.98 billion, reflecting a significant reduction in cash reserves[30]. - Long-term borrowings decreased by 29.31% to ¥808.01 million, primarily due to repayment of syndicated loans[30]. - Total liabilities decreased from ¥2,229,136,349.73 to ¥1,414,877,266.24, a reduction of about 37%[80]. - Current liabilities decreased from ¥1,067,126,875.29 to ¥587,883,684.78, a decrease of approximately 45%[80]. - Non-current liabilities decreased from ¥1,162,009,474.44 to ¥826,993,581.46, a decline of about 29%[80]. - The company's cash and cash equivalents decreased from CNY 1,155,027,083.66 at the beginning of the period to CNY 582,611,633.78 at the end of the period[78]. Shareholder Information - As of the end of the reporting period, the total number of ordinary shareholders was 46,757[70]. - The top shareholder, Jilin Provincial Highway Group Co., Ltd., holds 733,998,728 shares, representing 54.35% of the total shares[72]. - The company did not propose any profit distribution or capital reserve transfer plan for the first half of 2022[41]. - The company reported a net profit distribution of CNY -32,409,478.28 for the current period, indicating a loss in profit allocation compared to the previous period[101]. Government and Regulatory Matters - The company received government subsidies amounting to 994,105.95 RMB, significantly increasing other income by 2,769.61% compared to the previous year[26][28]. - The company actively responded to environmental issues related to highway construction and operation, enhancing greening efforts for a better public travel environment[43]. - The company has obtained a high-tech enterprise certificate for its subsidiary, which allows it to enjoy a corporate income tax rate reduction to 15% for three years, starting from November 25, 2021[200]. Operational Insights - The company manages a total toll road mileage of 151.7 kilometers, with the core asset being the Changchun to Siping Expressway, which is 109.8 kilometers long[18]. - The company holds a 63.8% stake in Changchun Expressway Co., Ltd., enhancing its operational capacity in the expressway sector[18]. - The company emphasizes the importance of infrastructure development in the context of China's "14th Five-Year Plan" for highway development, focusing on high-quality growth and improved transportation efficiency[19]. - The company has focused on enhancing the safety and emergency response capabilities of its highway operations[21]. - The company plans to continue expanding its infrastructure investments in line with national policies to improve transportation networks[21]. Legal Matters - The subsidiary Jilin Donggao Technology Oil Co., Ltd. has initiated a lawsuit against Dalian Free Trade Zone Linda International Trade Co., Ltd. for failing to provide a VAT invoice, with a court ruling requiring the defendant to pay 38.561 million yuan in VAT invoices if they do not provide the invoice[50]. - The court has ordered the addition of Hong Kong Linda Trading Company as a defendant, with a liability limit of 320,000 USD for the claims of Jilin Donggao Technology Oil Co., Ltd.[50]. - The company has no new significant litigation or arbitration matters during the reporting period[50]. Accounting Policies - The company has maintained its accounting policies without any changes during the reporting period[102]. - The company confirms that its financial statements reflect a true and complete view of its financial position, operating results, changes in equity, and cash flows[121]. - The company uses Renminbi as its functional currency for accounting purposes[124]. - The company has established specific accounting policies for the recognition of revenue and the treatment of financial instruments, ensuring compliance with relevant accounting standards[132]. Cash Flow and Investments - Cash flow from financing activities showed a net outflow of CNY 815,366,920.47, significantly higher than CNY 202,004,347.39 in the same period last year, marking an increase of 304.45%[94]. - Cash outflow from investing activities totaled CNY 26,804,968.90, compared to CNY 14,591,774.19 in the first half of 2021, indicating an increase of 83.67%[94]. - The ending balance of cash and cash equivalents was CNY 566,341,311.72, down from CNY 925,804,853.01 at the end of the first half of 2021, a decrease of 38.76%[94].