Company Overview - Qilu Expressway Company Limited reported its unaudited interim results for the six months ended June 30, 2023[1]. - The company operates and manages the Jinan to Heze Expressway, which is approximately 153.6 kilometers long[14]. - The company is a subsidiary of Shandong Expressway Group, which holds approximately 38.93% of its issued shares[16]. - The report indicates that the company is involved in the construction and management of expressways in Shandong Province, as part of a broader provincial highway network plan[14]. - The company plans to expand its operations in line with the Shandong Province's long-term highway network plan, which aims to reach a total length of 9,000 kilometers by 2035[14]. - The company has established several wholly-owned subsidiaries to support its operations and investments in expressway management[16]. Financial Performance - The company's operating revenue for the reporting period was approximately RMB 1,656,842 thousand, an increase of about 67.66% compared to RMB 988,210 thousand in the same period last year[20]. - Toll revenue from the Jizhao Expressway was approximately RMB 347,572 thousand, a decrease of about 38.12% from RMB 561,726 thousand in the previous year, while toll revenue from the Deshang and Xinnan Expressways was approximately RMB 275,501 thousand, an increase of about 17.10% from RMB 235,261 thousand[20]. - Revenue from engineering construction and sales of industrial products was approximately RMB 1,032,166 thousand, an increase of about 447.16% from RMB 188,641 thousand in the previous year, primarily due to the Jizhao Expressway expansion project[20]. - The overall traffic volume decline was significantly impacted by the construction of the Jizhao Expressway expansion project, leading to partial road closures and reduced toll revenue[20]. - The group achieved a total revenue of approximately RMB 1,656,842 thousand, representing a year-on-year increase of about 67.66%[36]. - Toll revenue was approximately RMB 623,073 thousand, showing a year-on-year decline of about 21.82%[36]. - The group reported a gross profit of approximately RMB 450,881 thousand, down about 24.89% year-on-year[36]. - The net profit attributable to the owners of the parent company was approximately RMB 300,473 thousand, a decrease of about 25.83% from RMB 405,105 thousand in the same period last year[28]. Operational Efficiency - The report emphasizes the importance of electronic toll collection (ETC) systems in enhancing operational efficiency[13]. - The company continues to expand its business through construction and engineering services, alongside toll collection from highways[19]. - The company is focused on enhancing its operational efficiency and exploring new revenue streams through infrastructure projects and service offerings[19]. - The company aims to enhance revenue generation by improving road conditions, operational efficiency, and developing personalized high-value services[44]. Investments and Projects - The company actively promoted the Jizhao Expressway expansion project, with related construction work progressing in an orderly manner[19]. - The total investment for the Jihe Expressway expansion project is estimated at RMB 18.6 billion, covering a length of 152.7 kilometers, expanding from a four-lane to an eight-lane highway[43]. - In the first half of 2023, the company completed an investment of approximately RMB 2.752 billion, accounting for 54.49% of the annual target[43]. - The company has established various purchase agreements for consulting and engineering services, with capital commitments including approximately RMB 69,032,000 for consulting services and RMB 5,479,000 for engineering supervision[102]. Corporate Governance - The company is committed to maintaining compliance with the Hong Kong Stock Exchange's listing rules and corporate governance codes[13]. - The interim report will be sent to shareholders and made available on the company's website and the Hong Kong Stock Exchange's disclosure platform[1]. - The company aims to maintain a high level of corporate governance to protect shareholder interests and enhance corporate value[58]. - The overall governance structure has been reinforced with the appointment of new directors and independent non-executive directors[55]. Shareholder Information - The company did not declare any interim dividend for the six-month period ending June 30, 2023[60]. - As of June 30, 2023, the total issued share capital of the company is RMB 2 billion, consisting of 2 billion shares, with H shares accounting for 55%[47][48]. - Shandong Expressway holds 86.50% of the total issued shares in the same class, representing approximately 38.93% of the total issued share capital of the company[50]. - The company has a significant concentration of shareholding, with major shareholders controlling substantial percentages of the issued share capital[50][51]. Risk Management - The company emphasizes risk management and safety production, focusing on risk identification, assessment, and preventive measures[45]. - The company remains committed to transparency and compliance with securities regulations regarding shareholder interests[54]. Related Party Transactions - Sales to related parties amounted to RMB 103,013 thousand for the six months ended June 30, 2023, compared to RMB 3,587 thousand for the same period in 2022[98]. - The company reported sales of goods to Shandong Expressway Engineering Construction Group Co., Ltd. amounting to RMB 48,607 thousand for the first half of 2023[98]. - The company provided services to Shandong Dongfang Road and Bridge Construction Co., Ltd. for RMB 666 thousand during the reporting period[99]. - The company recorded a purchase of services from Shandong Honglin Engineering Technology Co., Ltd. for RMB 408 thousand[99]. Financial Position - Total non-current assets increased to RMB 9,991,039 thousand as of June 30, 2023, up from RMB 7,999,265 thousand at the end of 2022[65]. - Total current assets decreased to RMB 1,793,148 thousand from RMB 2,413,297 thousand at the end of 2022, reflecting a decline of 25.7%[66]. - Total liabilities increased to RMB 5,965,644 thousand as of June 30, 2023, compared to RMB 4,684,572 thousand at the end of 2022[66]. - The company reported a fair value change for interest-bearing bank and other borrowings as not significant due to its own performance risk as of June 30, 2023[112].
齐鲁高速(01576) - 2023 - 中期业绩