Core Viewpoint - The company has received a total government subsidy of RMB 43 million, which will be paid in three installments from 2023 to 2025, to compensate for the loss of revenue from the Liuyang River Bridge toll operation rights due to changes in toll collection methods [1][2][3]. Group 1: Government Subsidy Overview - The government subsidy is related to revenue and is not sustainable, as it compensates for the loss of operational income from the Liuyang River Bridge toll rights from January 1, 2015, to September 30, 2025 [1]. - The total amount of the government subsidy is RMB 43 million, to be paid in three installments: RMB 15 million in 2023, RMB 15 million in 2024, and RMB 13 million in 2025 [2][3]. Group 2: Financial Impact and Accounting Treatment - The company has recognized the total government subsidy of RMB 43 million in its financial statements, which has been used to offset prior costs and recorded as asset disposal income of RMB 19.17 million, accounting for 12.89% of the net profit for 2023 [5]. - The second installment of RMB 15 million has been deducted from "other receivables," and the third installment of RMB 13 million will also reduce "other receivables" and reverse bad debt provisions of RMB 130,000 [5].

Summary of Ninghu Expressway Conference Call Company Overview - Ninghu Expressway reported a revenue of 23.7 billion yuan in 2024, representing an 18% year-on-year growth, with a net profit attributable to shareholders of 4.94 billion yuan and a return on equity (ROE) of 13.6% [2][3] - The company plans to distribute half of its net profit as dividends, amounting to 0.49 yuan per share (including tax), resulting in a dividend yield of approximately 3.4% [2][3] Stock Performance - Ninghu Expressway was listed on the Hong Kong Stock Exchange in 1997 and on the Shanghai Stock Exchange in 2021. The stock price has increased nearly 50 times from its historical low, while the A-share price has risen about 8 times since its listing [2][4][5] - In Q1 2024, total revenue grew by 37% year-on-year, but net profit slightly decreased by 3%, primarily due to a reduction in traffic volume [4][10] Revenue Sources - The main source of revenue for Ninghu Expressway is toll fees, accounting for 41% of total revenue, with a gross profit margin of 92% [2][6] - The renewable energy segment contributed 3% to total revenue, with a gross profit margin of 6% [2][6] - Other business segments, including financial asset investments and real estate, have a minimal impact on overall profits [2][6] Future Expansion Plans - The company plans to add new projects, including the Ningyang Yangtze River North Connection and the expansion of Ninghu Expressway, expected to open by the end of 2024, 2025, and 2028 respectively [2][7] - Ongoing construction in the southwestern section and the Guangjing North section is anticipated to commence in the second half of 2025, which will enhance the company's asset base and profitability [2][7] Capital Expenditure and Debt Management - Capital expenditures are projected to be 11.2 billion yuan in 2024 and 9.5 billion yuan in 2025, indicating a high level of investment [2][8] - The company has maintained interest-bearing liabilities exceeding 30 billion yuan for three consecutive years, posing a potential risk to profitability despite plans for debt restructuring [2][8][9] Investment Potential - Investors should monitor the growth of road assets and overall highway traffic in China. If traffic continues to rise, the company's performance may exceed the 3%-5% adjustment threshold, indicating investment value [4][11] - The company is viewed as a defensive investment, particularly during market downturns, with a current dividend yield around 3.5% [4][11]

Group 1 - The core viewpoint of the news is that Ningbo Tongshang Holding Group Co., Ltd. has received an "AAA" rating for its public bond issuance aimed at professional investors, indicating strong creditworthiness [1] - The company is recognized for its significant political and economic position in Ningbo, with strong fiscal strength and support capabilities within the province [1] - The diversified business operations and favorable external environment contribute positively to the overall credit strength of the company [1] Group 2 - Ningbo Tongshang Holding Group was originally established as a state-owned enterprise by the Ningbo Municipal Government's State-owned Assets Supervision and Administration Commission in July 2006 [2] - The company underwent a restructuring process and was renamed from "Ningbo Tongshang Group Co., Ltd." to its current name in June 2023 as part of a state-owned enterprise reform initiative [2] - The company operates in various sectors, including engineering construction, toll bridge operations, natural gas and liquefied gas supply, water supply and sewage treatment, commodity trading, real estate, and investment [2] - The company's revenue for 2023 and the first nine months of 2024 was reported at 71.411 billion yuan and 60.214 billion yuan, respectively [2]