Core Viewpoint - The company reported a decline in revenue and net profit for the first three quarters of 2025, but showed signs of recovery in Q3 with a slight increase in net profit despite a decrease in revenue [1][2]. Financial Performance - For Q1-Q3 2025, the company achieved operating revenue of 8.7 billion yuan, a year-on-year decrease of 4.1%, and a net profit attributable to shareholders of 4.01 billion yuan, down 3.6% year-on-year [1]. - In Q3 2025, the company recorded operating revenue of 3.04 billion yuan, a year-on-year decline of 1.7%, but net profit attributable to shareholders increased by 3.9% to 1.51 billion yuan [1]. - The company's gross profit margin in Q3 2025 was 34.6%, a decrease of 5.5 percentage points year-on-year [2]. Cost and Expense Management - The company’s expense ratio in Q3 2025 was 18.9%, down 1.48 percentage points year-on-year, with a decrease in financial expenses contributing positively to profit [2]. - Financial expenses decreased by 0.8 billion yuan in Q3 2025 due to a reduction in interest-bearing liabilities and lower borrowing rates [2]. Investment and Strategic Developments - The company continues to develop its core highway investment operations, including the completion of a capital increase in the Zhejiang Zhijiang project, adding 135.3 kilometers of managed road [2]. - The company plans to reduce its stake in Wantong Expressway by up to 51.258 million shares, which may enhance its profits [3]. Profit Forecast and Valuation - The profit forecast for the company has been revised downwards for 2025-2027, with expected net profits of 5.43 billion yuan, 5.78 billion yuan, and 6.34 billion yuan respectively [4].

Performance Summary - In 1H2025, the company reported operating revenue of 5.66 billion, a year-on-year decrease of 5.4%, and a net profit attributable to shareholders of 2.504 billion, down 7.6% [1] - In 2Q2025, the company achieved operating revenue of 2.86 billion, a decline of 3.5%, and a net profit of 1.18 billion, down 17.0% [1] - The decline in revenue is attributed to the exit of the Bo-Fu Expressway and the impact of road diversion and differentiated toll policies [1] Financial Metrics - The company's gross margin decreased to 34.0%, down 2.9 percentage points year-on-year [2] - The expense ratio for 1H2025 was 20.65%, a decrease of 1.09 percentage points, with sales expenses increasing slightly by 0.05 percentage points [2] - Investment income rose to 2.35 billion, a year-on-year increase of 0.27 [2] Business Development - The company continues to develop its core highway investment and operation business, completing the capital increase for the Zhejiang Zhijiang project, adding 135.3 kilometers of managed mileage [2] - The company is actively promoting the renovation and expansion of existing projects and enhancing its light asset platform operations [2] - The company plans to reduce its stake in Wantong Expressway by up to 51.258 million shares, which may enhance profits [3] Profit Forecast - The company maintains its net profit forecast for 2025-2027 at 5.73 billion, 6.25 billion, and 6.73 billion respectively [4]