Zhongyuan Expressway(600020)2019-04-26 16:00Financial Performance - The company achieved a net profit of CNY 1,077,885,095.45 for the year 2018, with a 10% statutory reserve fund provision of CNY 107,788,509.55, resulting in distributable profits of CNY 970,096,585.90[7]. - The company's operating revenue for 2018 was CNY 5,776,036,469.33, a decrease of 7.42% compared to 2017[27]. - The net profit attributable to shareholders for 2018 was CNY 798,804,153.45, down 30.41% year-on-year[27]. - The total profit amounted to CNY 1.122 billion, down 24.14% year-on-year, while net profit was CNY 804 million, a decline of 31.15%[53]. - The company's total assets at the end of 2018 were CNY 50,147,838,115.17, a decline of 9.57% from the previous year[27]. - The net assets attributable to shareholders decreased by 24.59% to CNY 11,117,210,976.08 at the end of 2018[27]. - The return on equity (ROE) for 2018 was 4.06%, down 4.06 percentage points from the previous year[53]. - The company reported a significant decrease in investment income from joint ventures, impacting overall profitability[27]. Dividend Distribution - The total number of ordinary shares at the end of 2018 was 2,247,371,832, with a cash dividend distribution of CNY 245,038,188.70 to ordinary shareholders, equating to CNY 1.09 per 10 shares (tax included)[10]. - The company plans to pay a fixed dividend of CNY 98,600,000 for 17 million preferred shares, with an additional CNY 48,628,494.80 to be distributed from the remaining profits[10]. - In 2018, the company reported a cash dividend of 1.09 RMB per 10 shares, amounting to 245,038,188.70 RMB, representing 53.13% of the net profit attributable to ordinary shareholders[116]. - The company distributed cash dividends of 1.68 RMB per 10 shares, totaling 377,558,470.90 RMB for the year 2017, with a payout ratio of 43.02% of the net profit attributable to ordinary shareholders[115]. Risk Management - The company has provided a detailed analysis of potential risks in its future development within the report[13]. - The company emphasizes the importance of investor awareness regarding investment risks associated with forward-looking statements in the annual report[12]. - The company is sensitive to macroeconomic changes, which may impact toll revenue due to the slowing domestic economic growth[108]. - The company faces risks from industry policy changes, including the potential reduction of toll fees and the cancellation of provincial toll stations, which could affect its main revenue source[111]. - The company is committed to improving safety in highway operations and enhancing network security risk management capabilities[107]. - The company emphasizes the importance of analyzing industry policy adjustments to develop appropriate strategies and measures[111]. Operational Efficiency - The company plans to focus on improving operational efficiency and exploring new market opportunities in the coming year[27]. - The company is focusing on high-quality development and optimizing asset quality through various measures[47]. - The company has implemented a "three-long system" to enhance operational management and ensure road safety[47]. - The company aims to enhance its investment management system to improve market-oriented levels and investment returns, focusing on diversified business development[107]. - The company plans to strictly manage budgets and improve financing efficiency to reduce financial costs and open new profit channels[107]. Corporate Governance - The company’s independent directors confirmed that the profit distribution plan complies with relevant regulations and does not harm the interests of the company and its shareholders[11]. - The company has not faced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[13]. - The company has committed to avoid competition with its controlling shareholder, Henan Transportation Investment Group, ensuring no competitive projects will be developed[121]. - The controlling shareholder, Henan Transportation Investment Group, holds 1,013,313,285 shares, representing 45.09% of the total shares[188]. Social Responsibility - The company has established three funding programs for poverty alleviation, with a total of over 300,000 RMB allocated to support agricultural development and education for impoverished households[168]. - The company has implemented over 10 infrastructure improvement projects, including road safety and clean water initiatives, enhancing the living conditions of local communities[167]. - The company has actively engaged in social responsibility initiatives, including the establishment of a tourism company and the development of leisure agriculture projects[166]. - The company has focused on transforming traditional agriculture into economic crop cultivation, providing over 200,000 RMB in subsidies to encourage this shift among local farmers[168]. - The company has received recognition for its rural tourism initiatives, being approved as an AAA-rated tourist attraction by the Jiyuan City Tourism Development Committee[169]. Investment and Financing - The company issued CNY 28 billion in corporate bonds and CNY 18 billion in short-term financing notes to optimize its debt structure[51]. - The company signed fixed asset financing contracts totaling RMB 12.5 billion and RMB 29.5 billion, using the toll rights of the Zhengzhou Airport to Luohe section as collateral[83]. - The company has established a pledge guarantee using toll rights from the Zhengmin Expressway for fixed asset loans[80]. - The company is exploring new investment areas to strengthen its leading position in venture capital, real estate, and financial sectors[107]. Audit and Compliance - The company’s financial report received a standard unqualified audit opinion from its accounting firm[4]. - The company has appointed a new accounting firm with an audit fee of 1.52 million CNY for the financial audit and 550,000 CNY for internal control audit[134].