Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of approximately RMB 198.1 million, a decrease of about 51.3% compared to the previous year[13]. - The company recorded a loss of approximately RMB 13.3 million for the fiscal year, excluding the gain from the sale of the Suizhou-Yueyang Expressway[13]. - For the year ended December 31, 2024, the company's total revenue was approximately RMB 198.1 million, a decrease of about 51.3% compared to RMB 407.1 million for the year ended December 31, 2023[18]. - The company recorded an annual loss of approximately RMB 13.3 million for the year ended December 31, 2024, compared to a profit of approximately RMB 359.3 million for the year ended December 31, 2023[25]. - The gross profit for the year ended December 31, 2024, was approximately RMB 39.5 million, a decrease of about 65.7% from RMB 115 million for the previous year, with a gross profit margin of approximately 19.9%[19]. - The total revenue from liquor sales for the year ended December 31, 2024, was approximately RMB 128.6 million, a decrease of about 60.9% from RMB 329.2 million for the year ended December 31, 2023[18]. - The toll revenue from the Qingping Expressway for the year ended December 31, 2024, was approximately RMB 69.5 million, down about 10.8% from RMB 77.9 million for the previous year, with vehicle traffic decreasing by approximately 6.5%[18]. Assets and Liabilities - The total assets of the company as of December 31, 2024, amounted to RMB 1,412.8 million, an increase from RMB 1,249.2 million in the previous year[9]. - The total liabilities increased to RMB 334.4 million from RMB 125.2 million in the previous year[9]. - As of December 31, 2024, the company had drawn bank loans and other borrowings totaling approximately RMB 244.6 million, compared to zero in the previous year[27]. - The company had cash and cash equivalents totaling approximately RMB 185.8 million as of December 31, 2024, down from approximately RMB 313.7 million in the previous year[27]. Investments and Business Development - The company’s investment in Guizhou Zunpeng Wine Industry Co., Ltd. generated an annual profit of approximately RMB 131.7 million for the fiscal year ending December 31, 2024[14]. - The company has commenced construction on a winery and integrated operations center in Guizhou, expected to be completed by 2025, covering no less than 150,000 square meters[14]. - The company plans to pursue other promising business opportunities in infrastructure projects across China as they arise[14]. - The liquor trade has become one of the company's most important business segments, although it faced challenges due to a shrinking consumer market in China[13]. - Guizhou Renhuai Huayu Liquor Co., Ltd. became a 51% subsidiary after the company increased its stake by 21% in 2023, with a planned winery and operational center expected to be completed by 2025[38]. - The company plans to enhance its competitiveness by investing in upstream liquor production and logistics through Guizhou Renhuai, which will become the main production and logistics base[44]. - The company has initiated construction on the winery and operational center, expected to be completed by 2025, to expand its liquor business[44]. - The company acquired a 28% stake in Huajia, which holds a 44.94% stake in Guizhou Zunpeng, facilitating entry into the liquor supply chain production segment[44]. Corporate Governance - The board of directors has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance as of December 31, 2024[47]. - All directors confirmed adherence to the standard code for securities trading as of December 31, 2024[48]. - The board consists of three executive directors and three independent non-executive directors, with no financial, business, or familial relationships among them[49]. - The attendance record for board meetings shows full participation from all directors, with each executive director attending 4 out of 4 meetings[51]. - The company has achieved gender diversity on the board with one female executive director, enhancing the board's expertise and perspectives[52]. - The chairman and CEO roles are clearly defined, with the chairman responsible for leading the board and ensuring effective governance practices[55]. - All directors are required to participate in continuous professional development to enhance their knowledge and skills[62]. - The company has established appropriate insurance arrangements for its directors and senior officers against legal actions[61]. - The service contracts for directors are set for three years, with provisions for termination with three months' notice[57]. - The company regularly reviews its corporate governance policies and practices to ensure compliance with legal and regulatory requirements[54]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers the company's operations in expressway management and liquor trading, focusing on key performance indicators related to ESG matters[92]. - The company emphasizes the importance of stakeholder engagement for sustainable development, collecting opinions to identify significant ESG issues[100]. - The main source of gas emissions comes from the company's liquor production and related businesses, with efforts made to reduce operational emissions[102]. - The company strictly adheres to government regulations to limit emissions from vehicles using its expressways, despite limited control over these vehicles[103]. - The company has implemented measures to mitigate noise pollution from traffic on expressways, including the installation of sound barriers[103]. - The company is committed to environmental protection and compliance with applicable laws and regulations[183]. - The company has not set quantitative emission reduction targets but will consider establishing such targets in the future[154]. - The total energy consumption increased to 6,970,537 kWh, up from 2,393,687 kWh in 2023, representing a 191% increase[118]. - Greenhouse gas emissions (Scope 1) rose significantly from 236 tons CO2 equivalent in 2023 to 1,103 tons in 2024, marking a 367% increase[108]. - The total water consumption surged to 96,012 cubic meters in 2024, compared to 25,604 cubic meters in 2023, indicating a 274% increase[118]. Employee and Labor Practices - The company has a total of 390 employees, with a turnover rate of 13.1%[127]. - The employee composition includes 227 males and 163 females, with a turnover rate of 20.2% for females[127]. - Among employees under 30 years old, the turnover rate is 22.5%, while it is only 3.3% for those over 50[127]. - The company has implemented various health and safety policies, with zero work-related deaths reported from 2022 to 2024[132]. - In 2024, there was 1 work-related injury resulting in 2 lost workdays[132]. - The training participation rate is 97% for male employees and 99% for female employees, with average training hours of 7.0 and 9.8 respectively[135]. - Management-level employees have a training participation rate of 97% with an average training time of 6.7 hours[135]. - The company has established a training management system specifically for its liquor trade business, ensuring employees acquire necessary qualifications[134]. - The company adheres to labor laws, strictly prohibiting forced labor and child labor, and encourages open communication regarding employee concerns[126]. Supplier and Procurement Management - The company has a total of 27 suppliers, all located in China[139]. - The company emphasizes sustainable partnerships with suppliers, focusing on their environmental, social, and governance performance[137]. - A standardized management manual for the supply department has been established to guide supplier collaboration and ensure compliance with national standards[137]. - The company implements a procurement management system to maintain a high-quality supplier network and improve overall supplier management[138]. - Regular evaluations of supplier performance are conducted, with underperforming suppliers being disqualified from future contracts[137]. Risk Management and Compliance - The company has established a risk management and internal control system aimed at ensuring the reliability of financial reporting and compliance with applicable laws and regulations[79]. - The internal audit department, composed of professionals such as practicing accountants, conducts evaluations of the risk management and internal control systems annually[81]. - The board emphasizes the importance of maintaining clear and timely communication with shareholders and investors to build confidence and attract new investments[82]. - The company has implemented procedures to ensure timely assessment and reporting of any significant information that may impact the company's stock price[80]. - The company has a policy in place to prevent bribery, extortion, fraud, and money laundering[161]. Community Engagement and Contributions - The company has made charitable contributions to the Bama Education Foundation and the Bama County Education Bureau to enhance educational opportunities in the region[151]. - The company is focused on community investment in areas such as education, environmental issues, labor needs, health, culture, and sports[161].

Financial Performance - For the fiscal year ending December 31, 2024, the total revenue decreased to RMB 198,145,000 from RMB 407,104,000 in 2023, representing a decline of approximately 51.3%[3] - The gross profit for the same period was RMB 39,504,000, down from RMB 115,014,000, indicating a decrease of about 65.6%[3] - The operating loss for the year was RMB 16,645,000 compared to an operating profit of RMB 40,730,000 in 2023, marking a significant shift in performance[3] - The net loss attributable to equity holders of the company for 2024 was RMB 8,514,000, compared to a profit of RMB 329,432,000 in 2023, reflecting a substantial decline[4] - The total comprehensive loss for the year was RMB 11,878,000, down from a comprehensive income of RMB 359,331,000 in the previous year[5] - The company reported a basic loss per share of RMB 2.06 for continuing operations, compared to earnings of RMB 1.05 per share in 2023[4] - Adjusted EBITDA for the continuing operations was RMB 50,076 thousand, down 55.8% from RMB 113,024 thousand in the previous year[29] - The company reported a pre-tax loss of RMB 9,221 thousand for 2024, compared to a profit of RMB 39,092 thousand in 2023[29] - The company recorded a net loss of RMB 1,596 thousand from other income for continuing operations, compared to a loss of RMB 4,337 thousand in 2023[30] - The company incurred an annual loss of approximately RMB 13.3 million for the year ended December 31, 2024, compared to a profit of approximately RMB 359.3 million for the year ended December 31, 2023[53] Revenue Breakdown - Revenue from toll fees decreased to RMB 69,530 thousand in 2024 from RMB 77,918 thousand in 2023, reflecting a decrease of about 17.4%[21] - The group's liquor sales revenue dropped significantly from RMB 329,186 thousand in 2023 to RMB 128,615 thousand in 2024, a decline of approximately 60.9%[21] - The group had a major customer contributing over 10% of total revenue, with Customer A generating RMB 52,823 thousand in 2024, down from RMB 180,213 thousand in 2023, a decrease of about 70.7%[22] - Reported segment revenue for the year ended December 31, 2024, was RMB 198,145 thousand, a decrease of 58.5% from RMB 476,773 thousand in 2023[29] - The toll revenue from the Qingping Expressway for the year ended December 31, 2024, was approximately RMB 69.5 million, down about 10.8% from RMB 77.9 million in the previous year[47] - The liquor trading business recorded revenue of approximately RMB 128,600,000, a significant decrease of about 60.9% from RMB 329,200,000 in the previous year[62] Assets and Liabilities - Non-current assets increased to RMB 699,164,000 in 2024 from RMB 529,217,000 in 2023, showing a growth of approximately 32.2%[7] - Current assets slightly decreased to RMB 713,645,000 in 2024 from RMB 720,013,000 in 2023, a decline of about 0.5%[8] - The total liabilities increased to RMB 234,371,000 in 2024 from RMB 124,648,000 in 2023, indicating a rise of approximately 88%[8] - The company's equity decreased to RMB 1,078,429,000 in 2024 from RMB 1,124,022,000 in 2023, a reduction of about 4.1%[10] - Total reported segment assets increased to RMB 1,408,014 thousand in 2024, compared to RMB 1,127,620 thousand in 2023, reflecting a growth of 24.8%[29] - Total reported segment liabilities rose significantly to RMB 371,448 thousand in 2024, compared to RMB 107,476 thousand in 2023, marking an increase of 245.5%[29] Operational Changes - The group’s primary business operations are now focused on liquor trading and the construction, operation, and management of the Qingping Expressway[19] - The group has reassessed the classification of liabilities as current or non-current under the revised accounting standards and found no need for reclassification[15] - The group has not engaged in any sale-and-leaseback transactions, so the related accounting revisions did not have a significant impact on the financial statements[16] - The group has not entered into any supplier financing arrangements, thus the recent accounting standard revisions had no significant impact on the financial statements[17] Future Outlook - The group anticipates steady growth in traffic volume and toll revenue from the Qingping Expressway due to the recovery of economic activities in Shenzhen, which is expected to become a major source of stable cash flow[70] - The liquor trading business is expected to improve in the near term following the digestion of accumulated inventory in distribution channels, with the group confident in the performance of this segment[70] - The group plans to invest in upstream operations of the liquor business, including distilleries, brewing, warehousing logistics, and packaging, with Guizhou Renhuai set to become the main production and logistics base, expected to be completed by 2025[70] - The group aims to continue seeking investment opportunities in infrastructure projects in China, leveraging its established relationships and reputation[71] Corporate Governance - The company maintained a public float of at least 25% of its total issued share capital as required by the Hong Kong Stock Exchange[72] - The board does not recommend declaring any final dividend for the fiscal year ending December 31, 2024[77] - The annual general meeting is scheduled for June 4, 2025, with a suspension of share registration from May 30 to June 4, 2025[78] - The company has adopted the corporate governance code as per the listing rules and believes it has complied with all relevant provisions during the fiscal year[74]

Financial Performance - The company's revenue for the six months ended June 30, 2024, was approximately RMB 128.8 million, a decrease of about 53.5% compared to RMB 276.8 million in the same period last year[5]. - The gross profit for the period was approximately RMB 29.2 million, a decrease of about 66.4% from RMB 86.8 million year-on-year, resulting in a gross margin of approximately 22.6%, down from 31.4%[5]. - The company's profit from continuing operations was approximately RMB 14 million, a decrease of about 49.4% compared to RMB 27.6 million in the same period last year, primarily due to poor sales performance in the liquor business[6]. - The liquor trading segment recorded revenue of approximately RMB 94,800,000, a decrease of about 60.3% from approximately RMB 239,000,000 in the same period last year[10]. - The adjusted EBITDA for the liquor trading segment was approximately RMB 24,800,000, down about 64.5% from approximately RMB 69,900,000 in the same period last year[10]. - The company reported a profit of RMB 11,918,000 for the six months ended June 30, 2024, compared to a loss of RMB 10,506,000 for the same period in 2023[38]. - Total comprehensive income for the period was RMB 14,715,000, a significant drop from RMB 371,702,000 in the same period last year[32]. Revenue Sources - Toll revenue from the Qingping Expressway for the period was approximately RMB 34.1 million, down about 9.9% from RMB 37.8 million in the previous year, with total vehicle traffic decreasing by approximately 4.2% to 11.4 million vehicles[5]. - The total toll revenue for the Qingping Expressway was approximately RMB 34,100,000, a decrease of about 9.9% compared to RMB 37,800,000 in the same period last year[9]. - Alcohol sales revenue was RMB 94,772,000, a significant decline of 60.4% from RMB 239,015,000 in the prior year[47]. Expenses and Liabilities - Administrative expenses for the period were approximately RMB 20 million, a reduction of about 42.8% from RMB 35 million in the previous year, mainly due to a one-time special bonus paid to employees in the previous year[6]. - The company incurred income tax expenses of RMB 1,309,000 for continuing operations, a significant decrease from RMB 17,125,000 in the previous year[56]. - Current liabilities increased to RMB 274,400,000 from RMB 124,648,000 at the end of the previous year[33]. - The total amount of bank loans and other borrowings drawn by the company was approximately RMB 187.3 million, compared to zero at the end of the previous year[6]. Cash Flow and Financial Position - The company's cash and cash equivalents totaled approximately RMB 276.3 million, down from approximately RMB 313.7 million at the end of the previous year[6]. - The net cash used in operating activities was RMB (90,303,000), compared to RMB 49,230,000 generated in the same period last year[41]. - The net cash generated from financing activities was RMB 119,357,000, compared to a net cash used of RMB (198,036,000) in the same period last year[41]. - The company reported a net cash position of RMB 276,297,000 as of June 30, 2024[33]. Shareholder Information - As of June 30, 2024, Mr. Chen Yangnan holds a beneficial interest in 300,000,000 shares, representing 72.71% of the total issued shares[19]. - Velocity International Limited, fully owned by Mr. Chen, has pledged 300,000,000 shares to Huilong Finance (Asia) Limited as collateral for a term loan[19]. - The company declared a special interim dividend of HKD 0.121 per share (equivalent to RMB 0.106) after receiving the second installment of the sale of a 60% stake in Daoyue[15]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the financial reporting procedures and internal controls[26]. - The interim financial report for the period was unaudited but reviewed by the audit committee and external auditors[26]. - The company has complied with the corporate governance code as stipulated by the Hong Kong Stock Exchange during the reporting period[25]. Future Outlook - The company anticipates steady growth in traffic volume and toll revenue for the Qingping Expressway due to the recovery of economic activities in Shenzhen[16]. - The company aims to improve its liquor trading business performance through enhanced marketing activities and efficient distribution channels[16]. - The company plans to complete the development of a winery and an integrated operation center in Guizhou by the first half of 2025[11].

Financial Performance - Revenue from continuing operations for the six months ended June 30, 2024, was approximately RMB 128.8 million, a decrease of about 53.5% compared to the same period last year[1] - Gross profit from continuing operations for the same period was approximately RMB 29.2 million, down approximately 66.4% year-on-year[1] - Profit attributable to equity holders from continuing operations was approximately RMB 11.9 million, representing a decrease of about 19.7% compared to the previous year[1] - Basic and diluted earnings per share for the period were RMB 2.89, a decrease of approximately 19.7% year-on-year[1] - Operating profit for the period was RMB 5.0 million, down from RMB 42.4 million in the same period last year[2] - Profit before tax for the period was RMB 15.3 million, compared to RMB 44.8 million in the previous year[2] - Total comprehensive income for the period was RMB 14.7 million, significantly lower than RMB 371.7 million in the same period last year[4] - Total revenue for the six months ended June 30, 2024, was RMB 128,824,000, a decrease from RMB 276,808,000 in the same period of 2023, representing a decline of approximately 53.5%[12] - Revenue from the liquor segment was RMB 94,772,000 for the six months ended June 30, 2024, compared to RMB 239,015,000 in the same period of 2023, indicating a decrease of about 60.4%[12] - Adjusted EBITDA for the reporting segments totaled RMB 39,911,000 for the six months ended June 30, 2024, compared to the previous period's figures[14] - The group recorded a gross profit of approximately RMB 29,200,000, a decrease of about 66.4% compared to RMB 86,800,000 in the same period last year, with a gross margin of 22.6%, down 8.8% from 31.4%[33] - The group reported a profit from continuing operations of approximately RMB 14,000,000, a decrease of about 49.4% from RMB 27,600,000 in the same period last year[38] Dividends and Shareholder Returns - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2024[1] - The company did not declare an interim dividend for the period[32] - A special interim dividend of HKD 0.121 per share (equivalent to RMB 0.106) was declared after receiving the second payment, distributed on August 1, 2024[50] Assets and Liabilities - Current assets as of June 30, 2024, totaled RMB 822.1 million, an increase from RMB 720.0 million as of December 31, 2023[5] - Total liabilities as of June 30, 2024, were RMB 717.3 million, compared to RMB 706.0 million as of December 31, 2023[6] - The total assets for the reporting segments as of June 30, 2024, amounted to RMB 1,346,661,000, while total liabilities were RMB 293,438,000[14] - As of June 30, 2024, the group had total bank loans and borrowings of approximately RMB 187,300,000, with cash and cash equivalents totaling approximately RMB 276,300,000[39] Operational Highlights - The company continues to focus on its core segments, with significant revenue generated from the Qingping Expressway and liquor distribution[10] - Toll revenue from the Qingping Expressway Phase I was approximately RMB 34.1 million, down about 9.9% from RMB 37.8 million in the same period last year[32] - Total vehicle traffic on the Qingping Expressway was approximately 11.4 million, a decrease of about 4.2% from approximately 11.9 million in the same period last year[32] - The liquor trading business is expected to improve following the digestion of accumulated inventory, with the company confident in the performance of this segment and planning more sales and marketing activities[51] - The company anticipates steady growth in traffic volume and toll revenue from the Qingping Expressway due to the recovery of economic activities in Shenzhen, which is expected to be a major source of stable cash flow[51] Discontinued Operations - The company has discontinued the operation of the Suizhou-Yueyang Expressway, which was sold in April 2023, and is no longer a subsidiary[10] - The company completed the sale of a 60% stake in Hunan Daoyue Expressway Co., Ltd. for RMB 555,700 thousand on April 25, 2023[20] - The net profit from the discontinued Daoyue Expressway operations for the period from January 1, 2023, to April 25, 2023, was RMB 342,400 thousand, including a gain from the sale of RMB 320,307 thousand[21] Financial Adjustments and Standards - The company has applied new and revised Hong Kong Financial Reporting Standards during the accounting period, but these changes did not have a significant impact on the financial performance or position[9] - The financial report is unaudited, but it has been reviewed by an independent auditor in accordance with the relevant standards[8] Employee and Administrative Costs - The company incurred total employee costs of RMB 16,462 thousand for continuing operations during the six months ended June 30, 2024[17] - Administrative expenses decreased by approximately 42.8% to RMB 20,000,000 from RMB 35,000,000 in the same period last year[35] - Sales and distribution costs were approximately RMB 5,500,000, a decrease of about 39.1% from RMB 9,100,000 in the same period last year[36] Investments and Acquisitions - The group increased its stake in Guizhou Renhuai to 51%, with plans to develop a winery and an integrated operation center on a site of at least 150,000 square meters, expected to be completed in the first half of 2025[47] - The group acquired a 28% stake in Huajia, which became an associate company, with Huajia primarily investing in Guizhou Zunpeng, which reported revenue of approximately RMB 298,600,000 and a net profit of RMB 69,200,000 during the period[48]

Financial Performance - For the fiscal year ending December 31, 2023, the company reported revenue of approximately RMB 407.1 million, a decrease of about 0.7% compared to RMB 409.9 million for the previous year[10]. - The profit for the year was approximately RMB 359.3 million, a significant increase of about 313.4% from RMB 86.9 million in the previous year, primarily due to substantial gains from the sale of the discontinued operation of the Suizhou Expressway business, amounting to approximately RMB 320.3 million[16]. - Administrative expenses for the fiscal year were approximately RMB 58.9 million, an increase of about 52.3% from RMB 38.7 million in the previous year, mainly due to one-time special bonuses paid to senior management following the completion of the sale[13]. - Total assets as of December 31, 2023, were approximately RMB 1,249.2 million, a decrease from RMB 1,955.9 million in the previous year[10]. - Total liabilities as of December 31, 2023, were approximately RMB 125.2 million, down from RMB 1,152.9 million in the previous year[10]. - Total cash and cash equivalents amounted to approximately RMB 313.7 million, an increase from RMB 205.7 million in 2022[33]. - Following the monetization of a 60% stake in the Suiyue Expressway, the group received cash inflow exceeding RMB 400 million, significantly improving liquidity and cash flow[41]. - The group declared a special interim dividend of HKD 0.121 per share, paid on May 18, 2023[38]. - The company has adopted a dividend policy that considers financial performance, business operations, and future business plans before declaring dividends[123]. Strategic Investments - The company completed the sale of a 60% stake in the Suizhou Expressway business on April 25, 2023, which significantly improved its cash position[4]. - On June 29, 2023, the company acquired a 28% stake in Huajia Wine Industry (Shenzhen) Co., Ltd., which operates in the wine trade and investment holding business in China[5]. - The company signed a share transfer agreement on June 16, 2023, to acquire a 21% stake in Guizhou Renhuai, with a total acquisition cost of RMB 105 million, resulting in a 51% ownership stake post-completion[21]. - The company completed the acquisition of an additional 21% stake in Guizhou Renhuai, making it a subsidiary with a 51% indirect ownership[129]. - The company also acquired a 28% stake in Huajia Wine Industry, which primarily engages in wine trading and has approximately 44.94% ownership in Guizhou Zunpeng[129]. Human Resources - As of December 31, 2023, the group had a total of 348 employees in China and Hong Kong, a decrease from 457 in 2022[23]. - Total employee compensation expenses for the year were approximately RMB 59.2 million, up from RMB 53.7 million in 2022[23]. - The company employed a total of 348 staff members, with 206 males and 142 females, reflecting a gender distribution of 15.0% and 32.4% respectively[182]. - The workforce is predominantly young, with 36.4% under 30 years old[182]. - There were no work-related fatalities reported from 2021 to 2023, with only one work injury recorded in 2023[187]. Corporate Governance - The board is committed to maintaining good corporate governance practices and has reviewed and improved various procedures and documentation as detailed in the report[43]. - The company has established various board committees to oversee specific areas of governance, primarily composed of independent non-executive directors[63]. - The company’s governance policies include reviewing and monitoring the training and continuous professional development of directors and senior management[54]. - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting to address specified matters[72]. - The company’s governance report includes disclosures on compliance with corporate governance codes[62]. - The audit committee reviewed the consolidated financial statements for the year ending December 31, 2023, ensuring the adoption of appropriate accounting principles and practices[64]. - The nomination committee was established to ensure the board possesses the necessary skills and experience relevant to the company's business needs[75]. - The nomination committee held two meetings during the year to review the board structure and composition, ensuring diversity in selection criteria[96]. - The company emphasizes the importance of diversity in the board selection process, considering factors such as gender, age, and professional experience[83]. - The company’s remuneration policy for employees is determined based on their value, qualifications, and capabilities[67]. - The remuneration committee held two meetings to review and approve the remuneration of directors and senior management for the year ending December 31, 2023, with total bonuses not exceeding 10% of the audited consolidated profit for the fiscal year[67]. Risk Management and Compliance - The company has established a risk management and internal control system aimed at ensuring the reliability of financial reporting and compliance with applicable laws and regulations[98]. - The board recognizes its overall responsibility for the risk management and internal control systems and continuously reviews their effectiveness[88]. - The internal audit department, composed of professionals such as practicing accountants, operates independently from daily operations to assess the effectiveness of risk management and internal control systems[100]. - The company has implemented procedures for disclosing internal information to ensure timely assessment of facts that may significantly impact the company's stock price[99]. - The company has no hedging arrangements in place to mitigate interest rate or foreign exchange risks, which may impact financial performance[34]. - The board has established an internal control and risk management system to safeguard shareholder interests and the company's assets[145]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance report covers the company's highway operations and wine trading business in China[130]. - The company recognizes the risks posed by climate change, particularly to its toll road operations, and is taking steps to mitigate these risks[177]. - In 2023, greenhouse gas emissions (Scope 1) decreased to 2,364 tons of CO2 equivalent from 3,073 tons in 2022, representing a reduction of approximately 23%[169]. - Greenhouse gas emissions (Scope 2) increased significantly to 8,074 tons of CO2 equivalent in 2023 from 2,672 tons in 2022, indicating a rise of about 201%[169]. - Total general waste generated increased slightly from 71 tons in 2022 to 72 tons in 2023[169]. - The company replaced all high mast lights with LED lights to enhance energy efficiency, contributing to overall energy savings[170]. - The company is phasing out older vehicles in favor of more fuel-efficient models to reduce fuel consumption[170]. - The company has implemented various energy-saving measures in offices and dormitories, including turning off idle lights and electronic devices[159]. - The company adheres to the "3R" principle (Reduce, Reuse, Recycle) for managing general waste, ensuring proper disposal and recycling of materials[167]. - The company has installed sound barriers along highways to mitigate noise pollution affecting nearby schools and residential buildings[166]. - The company is committed to reducing its carbon footprint despite the limited control over emissions from vehicles using its highways[141]. - Total energy consumption in 2023 was 5,948,704.6 kWh, a significant decrease compared to 2022[197]. - Electricity consumption accounted for 4,685,039 kWh, while gasoline and diesel consumption were 53,056.6 liters and 37,714.6 liters respectively[197]. - Water consumption reached 81,821 cubic meters, also showing a substantial reduction from the previous year[197]. - The company prioritizes green products in its procurement process, considering environmental and social impacts[192]. - The company has established an emergency management mechanism to handle various situations, including peak periods and extreme weather[196]. - The company has established a stakeholder engagement method to identify significant environmental, social, and governance issues[117]. - The company has implemented energy-saving measures, including replacing existing lighting and vehicles to reduce carbon emissions[178].

Financial Performance - For the year ended December 31, 2023, the total profit was RMB 359,338,000, a significant increase from RMB 86,914,000 in 2022, representing a growth of 313%[7] - The profit from discontinued operations related to the Suiyue Expressway business was RMB 325,092,000, up from RMB 22,629,000 in 2022, marking an increase of 1,360%[3] - Basic earnings per share for the year were RMB 79.84, compared to RMB 11.88 in 2022, reflecting a growth of 572%[3] - The total comprehensive income for the year was RMB 359,331,000, compared to RMB 83,470,000 in the previous year, an increase of 331%[8] - The company reported a pre-tax consolidated profit of RMB 39,092,000 for 2023, down from RMB 68,496,000 in 2022, indicating a decline of approximately 42.9%[78] - The company’s total assets and liabilities were monitored based on the performance of the reported segments, with a focus on sales and expenses generated by each segment[72] Revenue and Operations - The revenue from continuing operations was RMB 4,340,000, compared to RMB 26,399,000 in the previous year, indicating a decline of 83.6%[3] - The total revenue for the year 2023 was RMB 407,104 thousand, a slight decrease of 0.7% compared to RMB 409,886 thousand in 2022[53] - Total reported segment revenue for the year ended December 31, 2023, was RMB 476,773,000, a decrease from RMB 586,730,000 in 2022[74] - Revenue from the liquor segment was RMB 329,186,000 for 2023, a decrease from RMB 341,080,000 in 2022, reflecting a decline of approximately 3.4%[74] - The company continues to focus on liquor trade and the construction, operation, and management of the Qingping Expressway as its main business[43] Assets and Liabilities - The net asset value increased to RMB 1,124,022,000 from RMB 803,030,000, representing a growth of 40%[13] - The total liabilities decreased from RMB 1,152,659,000 in 2022 to RMB 720,013,000 in 2023, a reduction of 37.5%[30] - Total equity rose to RMB 1,124,022 thousand, compared to RMB 803,030 thousand in the previous year[35] - Cash and cash equivalents increased to RMB 313,720 thousand from RMB 205,659 thousand[doc id='31'] Expenses and Costs - The company reported a gross profit of RMB 115,014,000 from continuing operations, down from RMB 119,685,000 in 2022, a decrease of 4.4%[27] - Operating profit decreased to RMB 40,730,000 from RMB 65,826,000, a decline of 38.2%[27] - The total sales cost for the liquor trading business was approximately RMB 222,900,000, with a gross margin of about 32.3%[124] - Administrative expenses for the fiscal year ending December 31, 2023, were approximately RMB 58,900,000, an increase of about 52.3% from RMB 38,700,000 in the previous year, primarily due to one-time bonuses paid to senior management following the sale of the Suiyue Expressway[137] Discontinued Operations - The company reported a loss from discontinued operations related to the Suizhou-Yueyang Expressway business, with toll revenue dropping to RMB 69,669 thousand from RMB 176,844 thousand[45] - The company reported a loss from discontinued operations related to the Suizhou-Yue Highway business of RMB 69,669,000 in 2023, compared to RMB 176,844,000 in 2022[76] - The gross profit from the discontinued operation of the Suiyue Expressway was RMB 63,441,000, compared to RMB 115,825,000 in the previous year[116] Investments and Acquisitions - The company completed the sale of its entire stake in Daoyue for RMB 555,700,000 on April 25, 2023[115] - The company acquired an additional 21% stake in Guizhou Renhuai for RMB 1,000,000, making it an indirect non-wholly owned subsidiary[118] - The company acquired 28% of Huayu Liquor for a total consideration of RMB 140,000,000, completing the acquisition on December 1, 2023[130] - The company acquired a 21% stake in Guizhou Renhuai for a total cost of RMB 105,001,000, increasing its ownership to 51% and allowing for consolidation of financial results[153] - The acquisition of 28% of Huajia for approximately RMB 140,000,000 will enable the company to enter the production segment of the liquor supply chain[154] Cash Flow and Dividends - Following the sale of 60% of the equity in Suizhou Expressway, the company experienced a cash inflow exceeding RMB 400,000,000, significantly improving liquidity and reducing leverage[158] - A special interim dividend of HKD 0.121 per share was declared and paid on May 18, 2023, reflecting the company's strong financial and cash flow situation[152] - No final dividend has been recommended for the year ending December 31, 2023[171] Compliance and Governance - The company has not adopted any new accounting standards that are not yet effective for the current accounting period, ensuring compliance with the latest financial reporting standards[23] - The company has not applied the initial recognition exemption to leasing transactions prior to the recent amendments, impacting the recognition of deferred tax assets and liabilities[66] - The audit committee, consisting of three independent non-executive directors, has reviewed the financial reporting procedures and internal controls, affirming that the consolidated performance for the year ending December 31, 2023, complies with relevant accounting standards[170] - The company maintains compliance with the public float requirement of at least 25% of its issued share capital as per the listing rules[166] - The company has adopted the standard code of conduct for securities trading by directors as per the listing rules, confirming compliance by all directors for the year ending December 31, 2023[169] Future Plans - The company plans to enhance its competitiveness by investing in distilleries, brewing, warehousing, logistics, and operational centers to expand its liquor business upstream[165] - Guizhou Renhuai is expected to become the company's main production and logistics base, with plans to develop proprietary liquor brands[166] Meetings and Reports - The annual general meeting is scheduled for June 5, 2024, with a suspension of shareholder registration from May 31 to June 5, 2024[172] - The annual report for the year 2023 will be published on the company's website and the Hong Kong Stock Exchange website, containing all required information as per listing rules[174] - The company expresses gratitude to management, employees, shareholders, suppliers, and banks for their continuous support[175]

Financial Performance - The company recorded revenue of approximately RMB 276,800,000 for the six months ended June 30, 2023, representing an increase of about 19.9% compared to RMB 230,900,000 in the same period last year[7]. - The company achieved a gross profit of approximately RMB 86,800,000, a 22.1% increase from RMB 71,100,000 year-on-year, with a gross margin of 31.4%, up from 30.8%[8]. - The net profit for the period was approximately RMB 370,000,000, a significant increase of about 527.1% from RMB 59,000,000 in the previous year, primarily due to a one-time gain from the sale of the Suiyue Expressway amounting to approximately RMB 320,300,000[16]. - The company reported a total comprehensive income of RMB 371,702,000 for the period, compared to RMB 57,390,000 in the same period last year[61]. - The company reported a net profit of RMB 342,400,000 from discontinued operations, significantly higher than RMB 24,587,000 in the previous year[103]. - The company reported a net cash generated from operating activities of RMB 49,230 thousand for the six months ended June 30, 2023, down from RMB 91,197 thousand in the same period of 2022, reflecting a decrease of approximately 46.0%[74]. Revenue Sources - Toll revenue from the Qingping Expressway for the period was approximately RMB 37,800,000, an increase of about 16.3% from RMB 32,500,000 in the previous year, with total vehicle traffic of approximately 11,900,000, up 20.2% from 9,900,000[7]. - The liquor trading business recorded revenue of approximately RMB 239,000,000, a 20.5% increase from approximately RMB 198,400,000 in the same period last year, with adjusted EBITDA of approximately RMB 69,900,000[29]. - Toll revenue from ongoing operations was RMB 37.8 million, up 16.5% from RMB 32.5 million in the previous year[86]. - Alcohol sales generated RMB 239.0 million, representing a 20.5% increase compared to RMB 198.4 million in the prior year[86]. Expenses and Liabilities - Administrative expenses increased by approximately 93.4% to RMB 35,000,000 from RMB 18,100,000 in the previous year, mainly due to one-time special bonuses paid to employees involved in the sale of the Suiyue Expressway[13]. - The company’s total liabilities decreased significantly, with non-current liabilities related to lease obligations dropping from RMB 263 thousand to zero[69]. - The company incurred a depreciation and amortization expense of RMB 18,897 thousand for the first half of 2023, compared to RMB 27,641 thousand in the same period of 2022, indicating a decrease of approximately 31.7%[95]. Cash and Liquidity - The company maintained cash and cash equivalents totaling approximately RMB 424,500,000 as of June 30, 2023, compared to RMB 205,700,000 at the end of 2022[17]. - Cash and cash equivalents increased to RMB 424,512,000 from RMB 205,659,000, reflecting a strong liquidity position[63]. - Cash and cash equivalents rose from RMB 205,659,000 to RMB 424,512,000, an increase of approximately 106.5%[121]. Shareholder Information - The group declared a special interim dividend of HKD 0.121 per share (equivalent to RMB 0.106), which was distributed on May 18, 2023[37]. - The company declared a special interim dividend of RMB 43,767 thousand during the reporting period[71]. - As of June 30, 2023, Mr. Chen Yangnan holds a 72.71% stake in the company through Velocity International Limited, which owns 300,000,000 shares[40]. Strategic Acquisitions and Investments - The group agreed to acquire 65% of Huajia Wine Industry (Shenzhen) Co., Ltd., which is expected to enhance the group's position in the wine supply chain and drive growth in the liquor trading business[30]. - The group further acquired 21% of Guizhou Renhuai Huayu Wine Industry Co., Ltd., which will result in the group holding 51% of the company, allowing it to consolidate financial results into its financial statements[32]. - The company injected an additional RMB 31,000,000 into Guizhou Renhuai Huayu Liquor Co., Ltd. during the six months ended June 30, 2023[116]. Operational Efficiency and Future Plans - The company plans to conduct more sales and marketing activities, including wine tasting events and promotional meetings, to enhance brand presence[38]. - The company plans to continue focusing on expanding its operational efficiency and exploring new market opportunities to drive future growth[92]. - The group aims to leverage its successful experience in completing multiple toll expressway projects in China to seek new infrastructure project opportunities[38]. Compliance and Governance - The company has maintained compliance with the corporate governance code as per the listing rules throughout the reporting period[49]. - The audit committee has reviewed the financial reporting procedures and internal controls, ensuring adherence to relevant accounting standards[52]. - The company has not identified any significant issues that would affect the compliance of the interim financial report with the relevant accounting standards[142].

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佈的內容概不負責， 對其準確性或完備性亦無發表聲明，並明確表明不會就本公佈全部或任何部分內 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。 HUAYU EXPRESSWAY GROUP LIMITED 華 昱 高 速 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1823） 截至二零二三年六月三十日止六個月 中期業績公佈 財務摘要 • 期內持續經營業務收入約為人民幣276,800,000元，較去年同期增加約 19.9%。 • 期內持續經營業務毛利約為人民幣86,800,000元，較去年同期增加約22.1%。 • 期內本公司權益持有人應佔溢利約為人民幣339,900,000元，較去年同期增 加約823.6%。 • 期內每股基本及攤薄盈利為人民幣82.4分，較去年同期增加約822.7%。 • 董事會不建議就截至二零二三年六月三十日止六個月派付中期股息（二零 二二年：無）。 ...

Environmental Impact - In 2022, the total general waste generated was 711 tons, a significant increase from 2.1 tons in 2021[4] - Greenhouse gas emissions (Scope 1) decreased to 346 tons of CO2 equivalent in 2022 from 369 tons in 2021[4] - Greenhouse gas emissions (Scope 2) increased to 2,672 tons of CO2 equivalent in 2022, up from 1,695 tons in 2021, attributed to increased electricity consumption due to new toll plazas and pandemic control stations[4][9] - Total energy consumption rose to 6,111,348 kWh in 2022, compared to 4,438,682 kWh in 2021[13] - Electricity consumption increased to 4,685,039 kWh in 2022 from 2,917,577 kWh in 2021[13] - Water consumption increased to 81,821 cubic meters in 2022, up from 61,720 cubic meters in 2021[13] - The company implemented various energy-saving measures, including replacing high mast lights with LED lights to reduce energy consumption[6] - The company has developed emergency plans to mitigate climate change risks, including flood and snow removal plans[19] - The company is committed to reducing carbon emissions through the use of more energy-efficient lighting and vehicles[19] Financial Performance - For the year ended December 31, 2022, the company recorded revenue of approximately RMB 409,900,000, a decrease of 40.5% compared to the previous year[35] - The annual profit was approximately RMB 86,900,000, down about 35.3% from RMB 134,300,000 for the year ended December 31, 2021 (restated)[35] - Revenue from liquor sales was approximately RMB 341,100,000, a decrease of about 43.1% from RMB 599,600,000 for the year ended December 31, 2021 (restated)[43] - The gross profit margin for the Qingping Expressway was approximately 20.5%, down from 30.8% for the year ended December 31, 2021 (restated), primarily due to a sharp decline in toll revenue caused by the pandemic[44] - The group's total revenue for the year ended December 31, 2022, decreased to approximately RMB 409.9 million, with a profit of about RMB 86.9 million, representing a decline of approximately 35.3% compared to the previous year[64][74] - The toll revenue from the Qingping Expressway for the year ended December 31, 2022, was approximately RMB 68.8 million, a decrease of 22.6% from approximately RMB 88.9 million in the previous year[67] - The group's gross profit for the year ended December 31, 2022, was approximately RMB 119.7 million, down 42.6% from approximately RMB 208.4 million in the previous year, resulting in a gross margin of 29.2%[68] - Administrative expenses for the year ended December 31, 2022, were approximately RMB 38.7 million, a decrease of 46.6% from approximately RMB 72.4 million in the previous year[71] - The group plans to focus on expanding its liquor trade business following the sale of the Suiyue Expressway business, which will become one of its most important business segments[60][85] - The group is actively seeking opportunities in other promising business areas and infrastructure projects in China as part of its strategic plan[61] Employee and Labor Relations - The total number of full-time employees as of December 31, 2022, was 451, with a turnover rate of 17.3%[47] - As of December 31, 2022, the total employee compensation expense was approximately RMB 53,700,000, a decrease of 39.4% from RMB 88,500,000 in 2021[1] - The company adheres to local labor laws and has established policies for employee recruitment, compensation, and welfare[23] Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance as of December 31, 2022[141] - The board of directors has achieved gender diversity with one female executive director, Liu Baohua, contributing to a diverse skill set and experience[145] - The audit committee is responsible for recommending the appointment and remuneration of external auditors, ensuring their independence and the integrity of financial reporting[159] - The remuneration committee, established in May 2009, consists of three members, including independent non-executive director Hu Liege as chairman[160] - The company has a policy for board member diversity, focusing on skills, experience, and diverse perspectives to ensure effective governance[155] - The executive director and CEO, Fu Jiepin, is directly responsible for the daily operations and financial performance of the group[147] - Independent non-executive directors provide constructive opinions on strategy, policy, and performance, enhancing accountability and resource management[145] - The company has received annual independence confirmations from all independent non-executive directors, affirming their independence[145] - The board members are required to retire by rotation at least once every three years during the annual general meeting[149] - The company has established a service contract for directors with an initial term of three years, allowing termination with a three-month notice[148] - The remuneration committee reviewed and approved the compensation for directors and senior management for the year ending December 31, 2022[166] Risk Management and Internal Control - The company has established a risk management and internal control system to ensure the reliability of financial reporting and compliance with applicable laws and regulations[169] - The internal audit plan has been approved by the board, which includes an annual review of the risk management and internal control system[171] - The board recognizes its overall responsibility for the group's risk management and internal control systems, continuously reviewing their effectiveness[192] - The internal audit department, composed of professionals such as practicing accountants, operates independently from the group's daily operations to assess risk management and internal control systems[195] - The group has complied with the corporate governance code regarding risk management and internal control systems for the year ended December 31, 2022[194] - The group has established a risk management framework that includes key areas such as accounting, internal audit, and financial reporting personnel resources[194] Shareholder Communication - The board emphasizes the importance of clear, timely, and effective communication with shareholders and investors to build confidence and attract new investments[198] - The company maintains high transparency by providing accurate, clear, and timely information through annual reports, interim reports, and announcements[198] - Voting at the company's shareholder meetings is conducted by share count, with procedures explained at the start of each meeting[199] - The board regularly communicates with institutional investors and analysts to inform them about the group's strategies, operations, management, and plans[198] - The board considers the effectiveness of the shareholder communication policy during the review process[198] Future Outlook - The easing of COVID-19 restrictions in December 2022 by the Chinese government brings optimism for economic recovery in 2023 and beyond[35] - In the first quarter of 2023, traffic volume and toll revenue for the Qingping Expressway significantly increased due to the recovery and growth of economic activities in Shenzhen[117] - The liquor trading business also saw a substantial improvement in Q1 2023, with the company expressing confidence in the post-COVID performance of this segment[117] - The company plans to arrange more sales and marketing activities, including wine tasting events and promotional meetings, to enhance brand presence for Huamao and Xijiu[117] - The company is considering pursuing other infrastructure projects in China when suitable opportunities arise, as well as expanding its liquor business through potential acquisitions[118] - The company aims to explore opportunities in other promising commercial sectors as favorable conditions present themselves[118] - The company reported a significant decrease in revenue and profit for the year ending December 31, 2022, due to challenges from the COVID-19 pandemic, rising oil prices, and increasing interest rates[137] - However, with the easing of restrictions and economic recovery in early 2023, the company has quickly returned to normal operations in Q1 2023[137] - The company will leverage its successful experience in completing other toll highway projects in China to seek investment opportunities aligned with its overall business strategy[139]

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之內容概不負責， 對其準確性或完備性亦無發表聲明，並表明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之任何損失承擔任何責任。 HUAYU EXPRESSWAY GROUP LIMITED 華 昱 高 速 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1823） 澄清公告 茲提述華昱高速集團有限公司（「本公司」）日期為二零二三年三月三十日截至二 零二二年十二月三十一日止年度全年業績公告（「該公告」）。除文義另有規定外， 本公告所用詞彙與該公告內所界定者具有相同涵義。 董事會謹此澄清特別中期股息的支付日期，以及該公告中文版第29頁「業務回顧－ 特別中期股息」一段將更改如下（修改部分以下劃線標示）： 「特別中期股息 經考慮本集團的業務、財務及現金流量狀況，本集團於二零二三年三月二日 向本公司股東宣派特別中期股息每股0.121港元。股息將於二零二三年四月 二十五日或前後支付。」 董事會確認，上述澄清內容並不影響該公告內所載的其他資料及內容。 承董事會命 華昱高速集團有限公司 ...