香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 會就本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任 何 損 失 承 擔 任 何 責 任。 （股份代號：0576） （ 於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司 ） 2025年一季度業績公告 浙 江 滬 杭 甬 高 速 公 路 股 份 有 限 公 司（「本公司」）董 事（「董 事」）欣 然 公 佈 本 公 司 及 其 附 屬 公 司（統 稱「本集團」）截 至2025年3月31日 止3個 月（「本期間」） 的 一 季 度 業 績。 – 1 – 簡明合併損益及其他綜合收益表 本 公 司 的 審 核 委 員 會 已 經 審 閱 本 集 團 於 本 期 間 的 季 度 業 績。以 下 為 本 集 團 本 期 間 未 經 審 計 簡 明 合 併 損 益 及 其 他 綜 合 收 益 表、未 經 審 計 簡 明 合 併 財 務 狀 況 表 及 未 經 審 計 簡 明 合 併 現 金 流 量 表，連 同202 ...

Investment Rating - The report initiates coverage with a "Buy" rating for the company [2][9]. Core Insights - The company benefits from the economic prosperity of Zhejiang Province, which supports long-term growth in traffic volume. The recent introduction of the new toll road management regulations is expected to enhance the asset duration for highway operating companies [5][37]. - The company has a strong position in the market with a significant number of toll road assets and a long remaining concession period, which is expected to drive revenue growth [8][45]. - Traffic volume growth is anticipated to drive high performance, with the company maintaining industry-leading profitability metrics [8][51]. Summary by Sections 1. Economic Environment and Regulatory Framework - Zhejiang Province ranks fifth in per capita GDP in China, with a high density of highways, supporting traffic volume growth. The number of private vehicles has grown at a CAGR of 8.5% from 2015 to 2023 [5][30]. - The new toll road management regulations are expected to extend the concession periods for highway operations, positively impacting asset duration [5][37]. 2. Company Position and Asset Quality - The company, established in 1996, focuses on toll road concessions primarily in Zhejiang Province, with a total asset scale of approximately 217.2 billion [8][42]. - The company controls 11 toll roads with a total operating mileage of 1,143 kilometers, benefiting from a long average remaining concession period of 6.17 years [8][45]. 3. Traffic Volume and Revenue Growth - The company’s revenue is primarily driven by toll road operations, with a projected revenue growth of 13.87% in 2023, followed by steady growth in subsequent years [6][51]. - Traffic volume is expected to increase due to regional economic recovery and ongoing acquisitions, with a significant contribution from the Shanghai-Hangzhou-Ningbo Expressway [8][63]. 4. Financial Projections and Valuation - The company’s projected net profits for 2025 to 2027 are estimated at 56.71 billion, 58.87 billion, and 61.49 billion respectively, with corresponding PE ratios of 7x, 6x, and 6x [6][9]. - The average PE valuation of comparable companies is 9x, indicating that the company is undervalued relative to its peers [9].

Financial Performance - The company reported a significant increase in revenue, achieving a total of RMB 1.2 billion, representing a growth of 15% year-over-year[5]. - The company reported a revenue of RMB 18,064.824 million for the year 2024, representing an increase from RMB 16,965.024 million in 2023, which is a growth of approximately 6.4%[22]. - The profit before tax for 2024 was RMB 8,857.582 million, up from RMB 7,851.538 million in 2023, indicating a growth of about 12.8%[22]. - The net profit attributable to the company's owners for 2024 was RMB 5,501.588 million, compared to RMB 5,223.679 million in 2023, reflecting an increase of approximately 5.3%[22]. - The basic earnings per share for 2024 was RMB 91.79, down from RMB 112.95 in 2023, which is a decrease of about 18.7%[22]. - The company achieved a return on equity of 11.9% in 2024, a decrease from 16.0% in 2023[23]. - Net profit attributable to shareholders rose by 5.3% to RMB 5.5159 billion, up from RMB 5.24 billion in the previous year[37]. - Total revenue for 2024 increased by 6.5% to RMB 18.064824 billion, compared to RMB 16.965024 billion in 2023[46]. Business Expansion and Strategy - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to RMB 1.32 billion[5]. - New product launches are expected to contribute an additional RMB 200 million in revenue, with a focus on innovative technologies[5]. - The company plans to expand its market presence by entering two new provinces, aiming for a 5% market share in these regions within the next year[5]. - A strategic acquisition of a local competitor is anticipated to enhance operational efficiency and is expected to generate cost savings of approximately RMB 50 million annually[5]. - The company aims to expand its core business and enhance competitiveness in the securities and financial services sector[12]. - The company is focused on acquiring quality projects to strengthen its position as an international investment holding enterprise in transportation infrastructure[12]. - The company plans to accelerate digital transformation and explore new industries in transportation infrastructure[39]. - The company aims to focus on highway expansion and seek quality investment and acquisition opportunities in 2025[39]. Operational Efficiency and Investments - The company is investing RMB 100 million in research and development for new technologies aimed at improving service delivery[5]. - The company aims to improve its EBITDA margin from 30% to 35% over the next two years through operational efficiencies[5]. - The company plans to allocate RMB 42.2 billion of the remaining raised funds for existing highway expansion projects[68]. - Capital expenditures for the period amounted to RMB 7.12 billion, with RMB 5.18 billion allocated for equity investments and RMB 1.02 billion for highway expansion projects[80]. Shareholder Returns and Dividends - A dividend payout ratio of 40% is planned for the upcoming fiscal year, reflecting the company's commitment to returning value to shareholders[5]. - The company declared a final dividend of RMB 0.32 per share, reflecting its commitment to returning value to shareholders[16]. - The company proposed a dividend of RMB 0.385 per share to reward shareholders[37]. - The company plans to distribute dividends of no less than 75% of the annual distributable profits for the years 2023 to 2025, with the dividend payout for the current period being 89.4% of the distributable profits[123]. Market and Economic Outlook - The company anticipates a moderate recovery in the global economy in 2025, despite facing uncertainties from trade policies and geopolitical risks[87]. - The highway business is expected to benefit from increased logistics demand due to China's economic recovery, while also facing challenges from rising costs and environmental regulations[88]. - The global economy is gradually recovering but faces uncertainties such as geopolitical conflicts and policy divergences among major economies, impacting traffic volume and toll revenue in the highway sector[93]. - Future economic growth remains uncertain, with potential impacts on consumer spending and investment demand, which are crucial for the highway toll business[93]. Risk Management and Compliance - The management highlighted key risks, including regulatory changes that could impact operations, which are being closely monitored[5]. - The company emphasizes the importance of adapting to regulatory changes that may affect its operations and financial outlook[97]. - Regulatory compliance in the securities business is critical, with potential penalties or restrictions that could adversely affect the company's financial condition and reputation[97]. - The company has implemented a disclosure policy to manage confidential data and monitor information disclosure, prohibiting unauthorized access to insider information[127]. Corporate Governance - The company has adopted strict corporate governance principles in accordance with the Listing Rules, ensuring compliance and operational integrity[101]. - The board of directors consists of nine members, including three independent non-executive directors, which represents at least one-third of the board[105]. - The company has established a governance framework that includes various committees to assist the board in fulfilling its responsibilities[110]. - The company has a comprehensive training program for its directors to ensure they remain informed and capable of contributing effectively[107]. - The company has established an internal control system to protect assets and ensure the authenticity of financial statements, continuously improving its internal control measures[124]. Employee and Operational Metrics - As of December 31, 2024, the total number of employees in the company is 10,271, with 4,969 in highway-related positions and 5,302 in securities-related positions[92]. - The average daily traffic on the Shaoxing section of the Yongjin Expressway was 31,004 vehicles, a year-on-year increase of 3.63%, generating toll revenue of RMB 564.46 million[62]. - The overall traffic volume increased by 2.4% year-on-year, with truck traffic growing by 2.81% and passenger vehicle traffic by 2.24%[49]. Acquisitions and Investments - The company completed the acquisition of a 34.2546% stake in Guodu Securities, making it the largest shareholder[19]. - The company completed the acquisition of the remaining 40% stake in Yonglan Expressway in January 2024, following a previous 60% acquisition in 2023[56]. - The company acquired the remaining 40% equity of Yonglan Company, achieving 100% ownership[16]. Environmental Initiatives - The company is actively expanding its green low-carbon initiatives, including the construction of distributed photovoltaic power generation projects along the Ningbo-Zhoushan Expressway[50]. - The company has initiated the construction of a new energy heavy-duty truck charging and swapping station project on the Yongjin Expressway, aiming to create the first domestic electric truck transport line for foreign trade containers[50]. - The company aims to expand its new energy business by developing a network of charging stations along highways and promoting green low-carbon transformation[89].

Group 1 - The company has entered into a preliminary agreement with Ningbo Zhoushan Port for the investment and implementation of the G92 Hangzhou Bay Ring Expressway project, specifically the section from Qijia Mountain in Ningbo to Jintang in Zhoushan, with an estimated investment of approximately RMB 15.985 billion [1] - The project will be funded with 45% as project capital, amounting to approximately RMB 7.193 billion, with the company and Ningbo Zhoushan Port contributing a combined 60% of the project capital [1] - A new company will be established to manage the project, which will have the concession rights for investment, financing, construction, operation, and management [1] Group 2 - The G92 Hangzhou Bay Ring Expressway project will span approximately 18.052 kilometers, connecting Ningbo and Zhoushan, and includes a 11.604-kilometer underwater tunnel and multiple interchanges [2] - This project is expected to enhance the traffic capacity and service level of the cross-sea passage between Ningbo and Zhoushan, alleviating traffic pressure on the existing cross-sea bridge and promoting regional economic and social development [2] - As the longest underwater tunnel road in Zhejiang Province, this project will help the company establish itself as a benchmark in the industry, enhancing its strategic position and reputation within the high-grade highway network [2]

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 7.82 HKD [6][7]. Core Views - The company reported a revenue increase of 6.5% year-on-year to 18.1 billion RMB and a net profit increase of 5.3% year-on-year to 5.5 billion RMB for the fiscal year 2024. The fourth quarter saw a revenue increase of 10.8% and a net profit increase of 20% [1][2]. - The proposed dividend for the fiscal year 2024 is 0.385 RMB per share, representing a 20% increase year-on-year, with a dividend payout ratio of 42% and a corresponding dividend yield of approximately 6.75% [1][2]. - The company benefits from a favorable environment for high-dividend stocks in a low-interest-rate context, enhancing its investment appeal [1][2]. Revenue and Profitability - The company's toll road revenue and segment profit are expected to grow by 2.3% and 13.1% year-on-year, respectively, contributing approximately 72% to the net profit [2]. - The growth in truck and passenger vehicle traffic is driven by the economic prosperity in Zhejiang province, with GDP growth of 5.5% and total import and export growth of 7.4% [2]. Brokerage Performance - The brokerage segment experienced a significant improvement in profitability in Q4 2024, with a 32% year-on-year increase in segment profit, driven by a more active market following favorable policy changes [3]. - The overall contribution of the brokerage business to net profit for 2024 is approximately 14% [3]. Profit Forecast and Valuation - The net profit forecasts for 2025 and 2026 have been adjusted upwards by 2.6% and 0.6% to 5.71 billion RMB and 5.88 billion RMB, respectively, with a new forecast for 2027 introduced at 6.20 billion RMB [4]. - The target price has been raised to 7.82 HKD, reflecting an increase in the valuation of the Hong Kong financial sector and a decrease in the risk-free interest rate [4][11]. Financial Metrics - The company is projected to achieve an EPS of 0.95 RMB in 2025, with a PE ratio of 5.99 and a PB ratio of 0.70 [5][20]. - The dividend yield is expected to remain stable at 6.75% for the next few years [20].

Financial Performance - Revenue increased by 6.5% year-on-year, reaching RMB 18,064.82 million[3] - Profit attributable to owners of the company grew by 5.3% year-on-year, amounting to RMB 5,505.19 million[3] - Basic earnings per share were RMB 0.9179, down from RMB 1.1295 in 2023[3] - Proposed dividend per share is RMB 0.385, compared to RMB 0.32 in 2023[4] - Total comprehensive income for the year was RMB 7,761.87 million, compared to RMB 6,752.15 million in 2023[7] - The company reported a net profit of RMB 7,156.48 million, an increase from RMB 6,622.33 million in 2023[7] - The group's attributable profit was RMB 5.5159 billion, an increase of 5.3% year-on-year, while basic earnings per share decreased by 18.7% to RMB 0.9179[108] Revenue Breakdown - The group's revenue for the year ending December 31, 2024, is projected to be RMB 18,064,824 thousand, with a segment profit of RMB 7,156,478 thousand[30] - For the year ending December 31, 2023, the group's revenue was RMB 16,965,024 thousand, with a segment profit of RMB 6,622,330 thousand, indicating a year-on-year increase in revenue[30] - The highway business segment reported revenue of RMB 10,662,346 thousand for 2024, up from RMB 10,423,833 thousand in 2023, reflecting a growth of approximately 2.3%[30] - The securities business segment generated revenue of RMB 6,182,506 thousand in 2024, compared to RMB 6,372,289 thousand in 2023, showing a decline of about 3%[30] - Revenue from highway tolls amounted to RMB 10.662346 billion, up 2.3% year-on-year, with overall vehicle traffic increasing by 2.4%[86] - The group reported a significant increase in other business revenue, which rose by 622.3% to RMB 1.219972 billion[84] Costs and Expenses - Operating costs rose to RMB 10,812.36 million from RMB 9,765.69 million in 2023[5] - Financing costs decreased to RMB 1,741.65 million from RMB 2,104.13 million in 2023[5] - The company's income tax expense for 2024 was RMB 1,701,104 thousand, compared to RMB 1,229,208 thousand in 2023, reflecting an increase of approximately 38.4%[46] - The total interest expense for the year ended December 31, 2024, was RMB 2,104,129 thousand, compared to RMB 1,741,651 thousand in 2023, representing an increase of approximately 20.9%[44] Assets and Liabilities - Non-current assets decreased from RMB 71,258,072 thousand in 2023 to RMB 54,871,376 thousand in 2024, representing a decline of approximately 23.5%[12] - The company's total current assets decreased from RMB 145,924,295 thousand in 2023 to RMB 152,862,426 thousand in 2024, indicating a reduction of about 4.5%[14] - Current liabilities increased from RMB 108,265,977 thousand in 2023 to RMB 103,306,335 thousand in 2024, reflecting an increase of approximately 4.5%[16] - Non-current liabilities decreased from RMB 35,218,026 thousand in 2023 to RMB 44,022,354 thousand in 2024, showing a decline of about 20%[18] - The total liabilities increased from RMB 108,916,390 thousand in 2023 to RMB 104,427,467 thousand in 2024, indicating an increase of approximately 4.7%[16] - The total assets for the group as of December 31, 2024, are RMB 217,182,367 thousand, an increase from RMB 207,733,802 thousand in 2023[32] Investments and Acquisitions - The company completed the acquisition of the remaining 40% stake in Yonglan Expressway in January 2024, following a 60% acquisition in 2023[93] - The company is focusing on building smart transportation systems and green low-carbon industries, including the construction of intelligent expressways[94] - The company is accelerating the development of photovoltaic resources along its managed routes to support energy-saving and cost-reduction initiatives[131] Market and Economic Outlook - The outlook for 2025 indicates a moderate recovery in the global economy, but uncertainties remain, particularly regarding trade policies that could impact global trade dynamics[127] - The highway business is expected to benefit from increased logistics demand due to China's economic recovery, while facing challenges such as rising construction costs and stricter environmental regulations[128] - Zhejiang Province's GDP grew by 5.5% in 2024, supporting the group's highway traffic and toll revenue growth[88] Corporate Governance and Strategy - The company is actively responding to market management requirements, enhancing corporate governance, and improving information disclosure quality[96] - The company is focusing on digital transformation in internal control management to improve governance efficiency[131] - The company aims to enhance its investment capabilities by pushing forward high-quality expressway project investments and mergers and acquisitions[130] Cash Flow and Financing - The net cash inflow from operating activities was RMB 9.08203 billion during the period[112] - The remaining funds from the 2023 rights issue amounted to RMB 5.280 billion, with RMB 4.22 billion allocated for existing highway expansion projects[110] - The company plans to primarily rely on internal resources to fund capital expenditure commitments, with any shortfall to be addressed through debt and equity financing[120]

Revenue and Profit - Revenue for the nine months ended September 30, 2024, was RMB 12,980,182 thousand, an increase of 1.95% compared to RMB 12,731,986 thousand in 2023[2] - Gross profit for the same period was RMB 5,451,809 thousand, down 3.29% from RMB 5,637,306 thousand in 2023[2] - Net profit for the period was RMB 5,199,253 thousand, representing an increase of 3.87% from RMB 5,005,781 thousand in 2023[2] - Earnings per share (basic) for the period was RMB 68.87, compared to RMB 90.38 in 2023, reflecting a decrease of 23.83%[5] Assets and Cash Flow - Total assets as of September 30, 2024, were RMB 65,254,578 thousand, up from RMB 60,405,113 thousand as of December 31, 2023[6] - Cash and cash equivalents at the end of the period were RMB 20,588,919 thousand, down from RMB 21,032,528 thousand in 2023[7] - Operating cash inflow for the nine months was RMB 8,886,475 thousand, slightly up from RMB 8,840,900 thousand in 2023[7] - Investment activities resulted in a net cash outflow of RMB (7,537,080) thousand, compared to RMB (13,954,072) thousand in 2023, indicating improved cash management[7] Investment Income and Interests - The company reported a significant increase in securities investment income to RMB 1,030,103 thousand from RMB 884,494 thousand in 2023, marking a growth of 16.46%[2] - The company’s non-controlling interests amounted to RMB 22,145,372 thousand as of September 30, 2024, compared to RMB 20,612,897 thousand in 2023, indicating growth in minority interests[6]

Financial Performance - The group's revenue for the first half of 2024 increased by 1.4% year-on-year, reaching RMB 8.376 billion[7]. - Profit attributable to the company's owners for the same period was RMB 2.680 billion, a year-on-year increase of 4.7%[7]. - Basic earnings per share decreased by 20.4% to RMB 0.4472, while diluted earnings per share fell by 18.4% to RMB 0.4404[7]. - Total revenue for the group reached RMB 8.3676 billion, a year-on-year increase of 1.4%[9]. - Revenue from highway operations amounted to RMB 5.1126 billion, up 2.2% year-on-year, accounting for 61.1% of total revenue[9]. - Securities business revenue decreased to RMB 2.8059 billion, down 11.2% year-on-year, representing 35.5% of total revenue[9]. - The group reported a significant increase in other business revenue, which rose by 435.7% to RMB 449.1 million[9]. - The segment profit for the highway business was RMB 2,125,371 thousand, while the securities business generated a profit of RMB 803,521 thousand, contributing to a total segment profit of RMB 3,343,806 thousand for the first half of 2024[58]. Dividend and Shareholder Returns - The board of directors proposed not to distribute an interim dividend for 2024[7]. - The net profit of the joint venture Hangning Company reached RMB 253.15 million, reflecting a year-on-year growth of 22.9%[18]. - The total comprehensive income attributable to the owners of the company for the period ended June 30, 2024, was RMB 40,774,956 thousand[49]. Business Strategy and Development - The company is focusing on enhancing its core business competitiveness and digital transformation to drive high-quality development[2]. - The company aims to leverage resources along the expressway to create a development model that integrates its main business with related industries[2]. - The group is committed to becoming an international investment holding company primarily focused on transportation infrastructure investment and operation[2]. - The company is actively adjusting its business layout and enhancing risk management to ensure stable development amid industry challenges[2]. - The company will focus on its core business, enhancing profit centers and implementing cost management measures to improve operational efficiency[33]. - The group plans to accelerate digital construction and improve the conversion and industrialization of innovative results, leveraging digitalization and technology for high-quality development[33]. Traffic and Operations - Average daily traffic volume on the group's highways increased by 2.62% for the Shanghai-Hangzhou-Ningbo Expressway, with toll revenue of RMB 2.3807 billion, a 1.0% increase[14]. - Truck traffic volume on the highways grew by 5.3% year-on-year, reflecting a recovery in logistics demand[10]. - The average daily traffic volume for the Huangqunan Expressway increased by 7.53%, with toll revenue of RMB 261.98 million, a 5.4% increase[14]. - The average daily traffic on the Shaoxing section of the Yongjin Expressway was 29,998 vehicles, a year-on-year increase of 2.59%, generating toll revenue of RMB 264.21 million, up 4.4%[18]. Acquisitions and Investments - The group completed the acquisition of the remaining 40% stake in Yonglan Expressway in January 2024, following a previous 60% acquisition in 2023[12]. - The company acquired a 34.25% stake in Guodu Securities to enhance resource integration and market competitiveness[15]. - The company acquired 100% equity of Huangqunan Highway Company for RMB 16,700,000 thousand, which was approved by the board on September 7, 2023[53]. Financial Position and Liabilities - As of June 30, 2024, the group’s current assets totaled RMB 136.58 billion, down from RMB 152.83 billion at the end of 2023[21]. - The group’s total liabilities were RMB 135.74 billion, a decrease of 7.8% from RMB 147.32 billion at the end of 2023[23]. - The group’s cash inflow from operating activities was RMB 6.49 billion, with no significant changes in the currency composition of cash and cash equivalents compared to the previous year[22]. - The company’s liquidity ratio remained stable at 1.50, indicating consistent financial health[21]. - The total liabilities of the group amounted to RMB 55,297,910,000, with a debt-to-asset ratio of 68.7%, down from 70.9% as of December 31, 2023[25]. - The total equity of the group as of June 30, 2024, was RMB 61,784,100,000, with fixed-rate debt constituting 31.3% and floating-rate debt constituting 50.0% of total capital[25]. Market Conditions and Outlook - The securities industry faced significant challenges, but the group's subsidiary, Zheshang Securities, maintained better-than-average performance in the industry[2]. - The geopolitical tensions are expected to persist in the short term, impacting the global political and economic landscape, while China's economy is in a critical recovery and transformation phase[32]. - The group anticipates continued growth in highway traffic volume and toll revenue under favorable macroeconomic conditions[32]. Employee and Corporate Governance - As of June 30, 2024, the group had a total of 10,500 employees, a slight decrease from 10,653 employees as of December 31, 2023[39]. - The board of directors confirmed compliance with the corporate governance code and standards during the reporting period[38]. Financial Instruments and Debt - The group issued zero-coupon convertible bonds totaling EUR 230 million, with net proceeds of approximately EUR 229 million used to repay existing borrowings[30]. - The fixed interest rates for domestic commercial bank loans ranged from 2.69% to 4.0%, while floating rates ranged from 2.75% to 3.75% as of June 30, 2024[25]. - The company has established strict controls on overdue receivables to minimize credit risk, with overdue balances monitored regularly by management[69]. Research and Development - The company is investing in new technology development, allocating $50 million towards R&D initiatives[141].

Financial Performance - The group's revenue for the six months ended June 30, 2024, increased by 1.4% year-on-year to RMB 8,367.6 million[3] - Profit attributable to the owners of the company rose by 4.7% year-on-year to RMB 2,680.1 million[3] - Basic earnings per share decreased by 20.4% year-on-year to RMB 44.72 cents, while diluted earnings per share fell by 18.4% to RMB 44.04 cents[3] - The group reported a gross profit of RMB 3,686.4 million, compared to RMB 3,464.6 million in the same period last year[5] - The total comprehensive income attributable to owners of the company for the period was RMB 2,779.2 million, compared to RMB 2,642.8 million in the previous year[11] - The group recorded a net profit of RMB 3,343.8 million for the period, up from RMB 3,273.8 million in the same period last year[11] - Other income and gains increased significantly to RMB 446.6 million from RMB 80.8 million year-on-year[5] - The company's net profit attributable to shareholders for the six months ended June 30, 2024, was RMB 2,680,010 thousand, an increase of 4.8% compared to RMB 2,558,492 thousand in 2023[42] Dividends and Shareholder Returns - The group will not declare an interim dividend for 2024[4] - The company's basic earnings per share decreased by RMB 5.14 cents and diluted earnings per share decreased by RMB 4.71 cents due to the acquisition[26] Assets and Liabilities - Non-current assets decreased from RMB 62.02 billion in 2023 to RMB 54.35 billion in 2024, a decline of approximately 12.7%[13] - Total current assets decreased from RMB 152.86 billion in 2023 to RMB 136.51 billion in 2024, representing a reduction of about 10.7%[15] - Total liabilities decreased from RMB 103.31 billion in 2023 to RMB 91.28 billion in 2024, a decrease of approximately 11.6%[17] - The company's equity attributable to owners increased from RMB 39.79 billion in 2023 to RMB 40.77 billion in 2024, reflecting a growth of about 2.5%[19] - The cash and cash equivalents decreased from RMB 23.83 billion in 2023 to RMB 20.63 billion in 2024, a decline of approximately 13.2%[17] - The company's total assets decreased from RMB 60.41 billion in 2023 to RMB 61.77 billion in 2024, an increase of about 2.2%[19] - The company's short-term borrowings decreased from RMB 4.59 billion in 2023 to RMB 2.23 billion in 2024, a reduction of approximately 51.5%[17] - The company's total current liabilities decreased from RMB 49.56 billion in 2023 to RMB 45.23 billion in 2024, a decrease of about 8.5%[17] Acquisitions and Business Combinations - The company acquired 100% equity of Huangqunan Company for RMB 16,700,000, which operates a toll road in Zhejiang Province, with a total length of 161 kilometers[23] - The acquisition is considered a business combination under common control, resulting in a decrease in comprehensive income attributable to the owners of the company by RMB 104,604,000 for the period ended June 30, 2023[24][26] - The company plans to complete the merger and rename Huangqunan Company to Zhejiang Longlilong Highway Co., Ltd. Quzhou Branch by the end of November 2023[23] Revenue Breakdown - Revenue from the highway business for the six months ended June 30, 2024, was RMB 5,112,572, an increase from RMB 5,004,028 for the same period in 2023, representing a growth of 2.2%[30][33] - The group reported segment profit of RMB 2,125,371 from the highway business for the six months ended June 30, 2024, up from RMB 1,787,860 for the same period in 2023, reflecting a growth of 18.9%[30] - Securities business revenue decreased by 11.2% year-on-year to RMB 2.8059 billion, representing 35.5% of total revenue[73] Financial Instruments and Debt - The company issued zero-coupon convertible bonds totaling EUR 230 million on January 20, 2021, which are set to mature in 2026[51] - The latest conversion price for the convertible bonds as of June 30, 2024, is HKD 6.29 per share, down from the initial conversion price of HKD 8.83[52] - The total amount of convertible bonds 2021 issued is approximately €183,297,000, equivalent to RMB 1,443,009,000, with an effective interest rate of 4.74%[58] - As of June 30, 2024, a total of €202,600,000 of convertible bonds 2021 have been redeemed, leaving a remaining principal of €27,400,000[60] - The company has not yet exercised the redemption rights for convertible bonds 2022 as of June 30, 2024[67] - The total interest-bearing borrowings amounted to RMB 55.29791 billion, a decrease of 3.7% from December 31, 2023[97] Operational Highlights - The group has implemented a development strategy focusing on profit centers, service centers, and brand centers to enhance operational capabilities[78] - The group launched initiatives such as "Holiday Economy" and "Freight Flow" to enhance revenue from highway operations[78] - The average daily traffic volume for the group's highways was 89,094 vehicles, with a year-on-year growth of 2.62%[81] - The group expects continued growth in highway traffic and toll revenue in the second half of 2024, supported by a recovering macroeconomic environment[109] Market and Economic Context - The overall GDP growth in Zhejiang Province was 5.6%, surpassing the national average of 5.0%[69] - The securities industry faces challenges such as market volatility and increased competition, but also opportunities from capital market reforms and financial technology developments[112] Corporate Governance and Compliance - The company has complied with the corporate governance code as per the listing rules during the reporting period[117] - There have been no significant events affecting the company since the end of the reporting period[114] Future Outlook - The company aims to enhance core competitiveness and promote high-quality sustainable development amidst complex domestic and international situations[113] - The company is focusing on smart transportation, integration of transportation and energy, and road-related economies to cultivate new industry growth points[113] - The company aims to deepen its integration into the real economy by enhancing comprehensive financial services for corporate clients[112]

Financial Performance - Revenue for Q1 2024 reached RMB 4,001,897 thousand, a 1.7% increase from RMB 3,934,861 thousand in Q1 2023[2] - Gross profit for the period was RMB 1,723,409 thousand, slightly down from RMB 1,725,752 thousand in the same period last year[2] - Net profit for Q1 2024 was RMB 1,750,310 thousand, a decrease of 7.1% compared to RMB 1,885,946 thousand in Q1 2023[2] - Basic earnings per share for Q1 2024 were RMB 23.25, down from RMB 33.27 in Q1 2023[3] - Other comprehensive income for the period was RMB 106,230 thousand, compared to RMB 2,062 thousand in Q1 2023[3] Assets and Cash Flow - Total assets as of March 31, 2024, were RMB 105,961,663 thousand, compared to RMB 104,427,467 thousand as of December 31, 2023[4] - Cash and cash equivalents decreased to RMB 22,394,268 thousand from RMB 27,206,506 thousand year-over-year[6] - Operating cash inflow for Q1 2024 was RMB 1,213,923 thousand, a significant improvement from an outflow of RMB 948,676 thousand in Q1 2023[6] Financing and Interests - The company reported a decrease in financing costs to RMB 472,402 thousand from RMB 478,194 thousand year-over-year[2] - Non-controlling interests increased to RMB 20,997,133 thousand from RMB 20,612,897 thousand year-over-year[5]