Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
江 蘇 寧 滬 高 速 公 路 股 份 有 限 公 司
JIANGSU EXPRESSWAY COMPANY LIMITED
(Established in the People's Republic of China as a joint-stock limited company)
(Stock Code: 00177)
2020 INTERIM RESULTS PRELIMINARY ANNOUNCEMENT
The content of this announcement in sections 1, 3, 5 and 6 is disclosed pursuant to Rule 13.49(6) and paragraph 46 of Appendix 16 of the Hong Kong Listing Rules.
The other information is disclosed pursuant to the Rules Governing the Listing of Stocks on Shanghai Stock Exchange.
1. IMPORTANT NOTICE
- This interim results preliminary announcement is extracted from the full text of interim report. Investors who wish to understand the details on the operating results, financial position and future development plan of the Company should carefully read the full text of interim report on the website of Shanghai Stock Exchange (www.sse.com.cn), the website of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the website of the Company (www.jsexpressway.com) and such media designated by China Securities Regulatory Commission.
- The board of Directors, the supervisory committee, and the directors, supervisors and senior management of the Company warrant the truthfulness, accuracy and completeness of the contents of this interim report and there is no false representation in, misleading statement in, and material omission from, this report and they jointly and severally accept legal responsibility for such contents.
- 1 -
1.3 Absent Directors | |||
Position held by Name of absent | Reasons for | ||
absent director | director | absence | Name of proxy |
Director | Mr. Wu Xinhua | Business | Mr. Yao Yongjia |
Director | Ms. Hu Yu | Business | Mr. Yao Yongjia |
Director | Mr. Ma Chung Lai, | Business | Mr. Yao Yongjia |
Lawrence | |||
Director | Mr. Zhang Zhuting | Business | Mr. Lin Hui |
Director | Mr. Zhou Shudong | Business | Mr. Chen Liang |
- This interim results preliminary announcement is unaudited. The Audit Committee consists of three independent non-executive directors and one non-executive director. The Audit Committee convened a meeting on 20 August 2020 to consider and review the interim results preliminary announcement and interim financial statements of the Group and to submit its observations and recommendations to the board of Directors. The Audit Committee considers that the Company's interim results preliminary announcement and interim financial statements for 2020 are in compliance with the applicable accounting standards and have been properly disclosed by the Company.
2. BASIC INFORMATION OF THE COMPANY
- Company information
Information on the Company's shares | ||||
Class of | Listing stock | Stock | Previous stock | |
shares | exchange | abbreviation Stock code | abbreviation | |
A Shares | Shanghai Stock Exchange | 寧 滬 高 速 | 600377 | - |
H Shares | The Stock Exchange of | Jiangsu | 00177 | - |
Hong Kong Limited | Express | |||
ADR | United States | JEXYY | 477373104 | - |
Contact persons and Secretary | Representatives | |
contact methods | to the Board | of securities affairs |
Name | Yao Yongjia | Tu Jun and Lou Qing |
Telephone | 8625-84362700-301835 | 8625-84362700-301838 |
Business address | 6 Xianlin Avenue, Nanjing, | 6 Xianlin Avenue, Nanjing, |
Jiangsu Province, the PRC | Jiangsu Province, the PRC | |
jsnh@jsexpwy.com |
- 2 -
2.2 Key financial data of the Company | |||
Unit: Yuan Currency: RMB | |||
Increase/decrease | |||
at the end of | |||
the Reporting | |||
Period as | |||
As at the end | As at the end | compared to the | |
of the Reporting | of the previous | end of the | |
Period | year | previous year | |
(%) | |||
Total assets | 58,378,917,728.48 | 55,625,048,624.75 | 4.95 |
Net assets attributable to the shareholders | |||
of the Company | 25,927,524,625.17 | 28,546,983,607.15 | -9.18 |
Increase/decrease | |||
in the Reporting | |||
Period as | |||
compared to the | |||
The Reporting | Corresponding | corresponding | |
Period | period of the | period of the | |
(January-June) | previous year | previous year | |
(%) | |||
Net cash flow from operating activities | 895,329,150.48 | 2,927,496,390.90 | -69.42 |
Operating revenue | 2,668,351,072.50 | 4,835,457,868.83 | -44.82 |
Net profit attributable to the shareholders | |||
of the Company | 485,637,446.44 | 2,281,609,028.13 | -78.72 |
Net profit attributable to the shareholders | |||
of the Company net of non-recurring | |||
profit or loss | 419,417,173.47 | 2,266,132,472.27 | -81.49 |
Weighted average return on net assets (%) | 1.71 | 8.28 | Decreased by 6.57 |
percentage points | |||
Basic earnings per share (Yuan/share) | 0.0964 | 0.4529 | -78.71 |
Diluted earnings per share (Yuan/share) | N/A | N/A | N/A |
Note: The figures under the "As at the end of the previous year" were audited, and other figures were unaudited.
- 3 -
2.3 Shareholdings of top ten Shareholders
Unit: Share | ||||||
Total number of shareholders as at the end of the Reporting Period (including 421 holders of H Shares) | 29,392 | |||||
Total number of preference shareholders with voting rights restored as at the end of the Reporting Period | 0 | |||||
Shareholdings of top ten Shareholders | ||||||
Numbers | ||||||
of shares | ||||||
held subject | ||||||
Type of | Shareholding | Numbers of | to selling | Shares pledged | ||
Name of shareholder | shareholder | percentage | shares held | restrictions | or frozen | |
(%) | ||||||
Jiangsu Communications Holding Company | State-owned | |||||
Limited | legal person | 54.44 | 2,742,578,825 | - | Nil | - |
China Merchants Expressway Network & | State-owned | |||||
Technology Holdings Co., Ltd. | legal person | 11.69 | 589,059,077 | - | Nil | - |
BlackRock Inc. | Foreign legal | |||||
person | 3.14 | 158,338,523 | - | Unknown | - | |
Mitsubishi UFJ Financial Group Inc. | Foreign legal | |||||
person | 2.61 | 131,568,517 | - | Unknown | - | |
JPMorgan Chase&Co. | Foreign legal | |||||
person | 2.38 | 119,807,927 | - | Unknown | - | |
Huitianfu Fund Management Co., Ltd.-Social | ||||||
Security Fund 1103 Portfolio | ||||||
(匯添富基金管理股份有限公司 | ||||||
-社保基金1103組合) | Others | 1.39 | 70,000,000 | - | Unknown | - |
Citigroup Inc. | Foreign legal | |||||
person | 1.26 | 63,343,239 | - | Unknown | - | |
Jiantou Zhongxin Asset Management Co.,Ltd.State-owned | ||||||
legal person | 0.42 | 21,410,000 | - | Unknown | - | |
CPLI Stock Dividend Product | ||||||
(Shou ZiYing)( 中國太平洋人壽股票 | ||||||
紅利型產品(壽自營)) | Others | 0.25 | 12,500,000 | - | Unknown | - |
National Social Security Fund 114 portfolio | ||||||
(全國社保基金一一四組合)) | Others | 0.19 | 9,632,923 | - | Unknown | - |
Illustration on the related relationship or | (1) The Company is not aware of the existence of related relationship or acting-in-concert | |||||
acting-in-concert arrangement with respect | arrangement with respect to the above shareholders; (2)During the Reporting Period, none | |||||
to the above shareholders | of the related parties, strategic investors of the Company and general legal persons became | |||||
the top ten shareholders of the Company because of placing of new shares; and (3) The | ||||||
number of shares of H shareholders is based on the record of the register kept according to | ||||||
the Securities and Futures Ordinance of Hong Kong. | ||||||
Illustration on the preference shareholders | ||||||
with voting rights restored and the | ||||||
shareholding thereof | Nil |
- 4 -
2.4 Total number of preference shareholders as at the end of the Reporting Period and shareholdings of top ten preference shareholders
Applicable ✓ Not Applicable
2.5 Change of controlling shareholders or de facto controllers
Applicable ✓ Not Applicable
2.6 Outstanding and overdue but unpaid corporate debt
Applicable ✓ Not Applicable
3 DISCUSSION AND ANALYSIS OF THE OPERATION
3.1 Discussion and Analysis of the Operation of the Company during the Reporting Period
1. Business overview
As of the end of June 2020, total assets of the Company amounted to RMB58,379 million and net assets attributable to shareholders of the Company amounted to RMB25,928 million. During the Reporting Period, the Company realized operating profit of RMB2,668 million, total profits of RMB658 million, net profit attributable to shareholders of the Company of RMB486 million and earnings per share of RMB0.0964. The operating net cash flow amounted to RMB895 million and the weighted average return on net assets was 1.71%.
2. Toll road and bridge business
(1) Business performance and analysis of project operation
During the Reporting Period, affected by the novel coronavirus epidemic and the policy on toll-free travel, the Group recorded toll revenue of approximately RMB1,777,601,000, representing a year-on-year decrease of approximately 52.97% and representing approximately 66.62% of the total operating revenue of the Group. In particular, Shanghai-Nanjing Expressway recorded an average daily traffic volume of 99,200 vehicles, representing a year-on- year decrease of approximately 2.17%, and an average daily toll revenue of approximately RMB6,463,040 (average daily toll revenue, including that of the toll-free period), representing a year-on-year decrease of approximately 53.99%.
- 5 -
The traffic volume of other road and bridge projects operated by the Group including Zhenli Expressway, Wuxi Huantaihu Expressway and Changjia Expressway continued to maintain a relatively good growth momentum. During the Reporting Period, their overall movements in traffic volumes of passenger vehicles and trucks were basically consistent with that of Shanghai-Nanjing Expressway.
- Business development
-
Actively advancing the construction of road and bridge projects under construction
During the Reporting Period, the Group continued to efficiently advance the construction of road and bridge projects under construction in an orderly way. During the Reporting Period, Wufengshan Bridge Project incurred an investment of RMB1,038 million, with cumulated investment of RMB10,045 million as of the end of June 2020, representing 81.70% of the total investment of the project, and it is expected to be completed in 2021. Changyi Expressway Project incurred an investment of RMB436 million, with cumulated investment of RMB3,331 million as of the end of June 2020, representing 87.67% of the total investment of the project; Yichang Expressway Project incurred an investment of RMB738 million, with cumulated investment of RMB2,732 million as of the end of June 2020, representing 68.68% of the total investment of the project; and Longtan Bridge Project incurred an investment of RMB945 million, with cumulated investment of RMB1,316 million as of the end of June 2020, representing 21.05% of the total investment of the project. - The Toll road and bridge projects in Turkey
During the Reporting Period, the Group accelerated the investment progress of the acquisitions in relation to the toll road and bridge projects in Turkey, and the relevant approval procedures are being processed.
-
Actively advancing the construction of road and bridge projects under construction
- 6 -
3. Operation of ancillary services
Ancillary services of the Group mainly include lease of service areas, sale of petroleum products and other related operations provided at the service areas along the expressway. During the Reporting Period, the Group realized revenue of approximately RMB611,872,000 from ancillary services, representing a year-on-year increase of approximately 0.15%. In particular, sales revenue of petroleum products was approximately RMB495,285,000, representing approximately 80.95% of the total revenue from ancillary services, representing a year-on-year increase of approximately 1.18%; rental income from service areas amounted to approximately RMB102,161,000; and other income was approximately RMB14,426,000.
During the Reporting Period, due to the impact of the novel coronavirus outbreak, the road network traffic continued to decline in the initial period, resulting in a decrease in sales of petroleum products. However, with the implementation of the national policy on toll-free travel, the traffic volume of trucks and passenger vehicles on expressway network was quickly recovered, and the sales of petroleum products subsequently increased, making up for the adverse impact of the previous sales of petroleum products. During the Reporting Period, the Group actively introduced competition mechanisms and managed to secure more profit margins through actively carrying out negotiations with petroleum suppliers. In the first half of 2020, the gross profit and gross profit margin of petroleum products operation of the Group increased by 45.67 percentage points and 6.10 percentage points as compared with the first half of 2019, respectively, and drove the gross profit margin of ancillary services business operation increased by approximately 4.39 percentage points year-on-year.
4. Business of property development and sales
In the first half of 2020, the "houses are for living in other than speculation" was the main principle of the property market regulation. The impact of the novel coronavirus outbreak had a significant impact on the Group's income from its property business. During the Reporting Period, the Group seized the market sales window period to actively increase efforts in de-stocking.
- 7 -
During the Reporting Period, the pre-sale area of commodity housing of Ninghu Properties Company was 5,995.22 square meters, and the pre-sale revenue of RMB176,088,000 was realized, representing a year- on-year decrease of 68.33% and 63.60%, respectively. Affected by the epidemic, there was a year-on-year decrease in the delivery scale of housing. From January to June, a total of 93 units were delivered, with sales revenue carried forward amounting to approximately RMB239,599,000, representing a decrease of 41.82% as compared with the corresponding period of the previous year. The net profit after tax realized was approximately RMB54,620,000, representing a year-on- year decrease of approximately 49.05%.
During the Reporting Period, the sale and leasing of the Hanrui Center developed by Hanwei Company were carried out in an orderly manner. In the first half of 2020, 26 units of commodity housing (apartments) were signed contracts with a pre-sale area of 1,526.06 square meters, achieving pre-sale revenue of RMB38,047,000. Approximately 50% of shops have completed negotiations on potential leasing.
5. Other businesses
Other businesses of the Group mainly comprised of the advertising businesses of certain subsidiaries, management services provided by Yangtze River Management Company and property services provided by Ninghu Properties Company. During the Reporting Period, the Group realized revenue from other businesses of approximately RMB39,280,000, representing a year-on-year increase of approximately 18.57% and which is mainly attributable to the year-on-year increase in revenue from commission operation and management services.
- 8 -
3.2 Analysis of principal businesses
1. Table of analysis on changes in relevant items in the financial statements
Unit: Yuan Currency: RMB | |||||||
Corresponding | |||||||
period of the | |||||||
Item | Reporting Period | previous year | Changes | ||||
(%) | |||||||
Operating income | 2,668,351,072.50 | 4,835,457,868.83 | -44.82 | ||||
Operating costs | 1,859,290,222.19 | 1,955,644,387.14 | -4.93 | ||||
Selling expenses | 8,977,337.47 | 18,630,332.26 | -51.81 | ||||
Administrative expenses | 73,831,410.68 | 85,673,931.47 | -13.82 | ||||
Financial expenses | 256,387,221.40 | 226,517,238.35 | 13.19 | ||||
Net cash flow from | |||||||
operating activities | 895,329,150.48 | 2,927,496,390.90 | -69.42 | ||||
Net cash flow from | |||||||
investing activities | -3,291,196,408.42 | -3,203,647,193.79 | 2.73 | ||||
Net cash flow from | |||||||
financing activities | 2,275,283,608.14 | 290,135,764.89 | 684.21 | ||||
Tax and surcharge | 39,258,353.21 | 55,403,316.19 | -29.14 | ||||
Gain on change in fair | |||||||
value | 50,461,176.80 | 21,207,890.81 | 137.94 | ||||
Investment income | 147,761,973.92 | 478,199,640.69 | -69.10 | ||||
Other income | 9,387,442.24 | 2,612,095.39 | 259.38 | ||||
Non-Operating revenue | 29,557,223.53 | 1,608,479.04 | 1,737.59 | ||||
Income tax | 173,933,369.86 | 651,267,942.06 | -73.29 | ||||
Other comprehensive | |||||||
income, net of tax | -809,582,328.42 | 531,287,650.30 | -252.38 | ||||
Note: The figures in the table were unaudited.
Explanations on the reasons for the change of operating income:
- year-on-yearsignificant decrease in the Group's toll revenue was mainly due to the impact of the COVID-19 and the policy on toll-free travel during the Reporting Period; the scale of delivery and transfer of property business were less than that of the corresponding period of the previous year as a result of the COVID-19, and the delivery and the income of property business deceased year-on-year, resulting in a year- on-year decrease in operating income.
- 9 -
Explanations on the reasons for the changes of operating costs: A year-on-yeardecrease in operating costs was mainly due to the scale of delivery and transfer of real estate projects during the Reporting Period were less than that of the corresponding period of the previous year as a result of the impact of the COVID-19,and the costs of property sales business deceased year-on-year.
Explanations on the reasons for the changes in selling expenses:
- year-on-yeardecrease in selling expenses was mainly due to the decrease in advertisement and promotion fee and commission fee for agent of real estate sales of Ninghu Properties Company and Hanwei Company during the Reporting Period as a result of the impact of the COVID-19.
Explanations on the reasons for the changes in administrative expenses: A year-on-yeardecrease in administrative expenses was mainly due to the strengthening of budget management and strict expenses control by the Group to reduce the impact of the COVID-19during the Reporting Period.
Explanations on the reasons for the changes in financial expenses: During the Reporting Period, the comprehensive loan costs of the Group's capitalization of interest-bearingdebts decreased as compared with the corresponding period of the previous year, however, a year- on-yearincrease in financial expenses was mainly due to the increased scale of interest-bearingdebts of the Group as compared with the corresponding period of the previous year as a result of the impact of the COVID-19and the policy on toll-freetravel.
Explanations on the reasons for the changes in R&D expenses:
None.
Explanations on the reasons for the changes in net cash flow from operating activities: A year-on-yearsignificant decrease in the net cash flow from operating activities was mainly due to a year-on-yeardecrease in toll revenue and revenue from pre-salesof property projects as a result of the impact of the COVID-19and the policy on toll-freetravel during the Reporting Period.
Explanations on the reasons for the changes in net cash flow from investing activities: A year-on-yearincrease in the net cash outflow from investing activities was mainly due to a year-on-yearincrease in the investment in the construction of road and bridge projects under construction and net cash outflow from the purchase of wealth management products during the Reporting Period.
- 10 -
Explanations on the reasons for the changes in net cash flow from financing activities: A year-on-yearsignificant increase in the net cash flow from financing activities was mainly due to a year-on-yearincrease in net cash inflow from the Group's borrowings as a result of the impact of the COVID-19and the policy on toll-freetravel during the Reporting Period.
Explanations on the reasons for the changes in tax and surcharge:
- year-on-yeardecrease in provisions of tax and surcharge was mainly due to the fact that the operating revenue of the Group was lower than that of the corresponding period of the previous year.
Explanations on the reasons for the changes in gain on change in fair value: Mainly due to the year-on-yearincrease in the fair value of other non-currentfinancial assets held by Ninghu Investment Company, a subsidiary of the Company during the Reporting Period.
Explanations on the reasons for the changes in investment income: Mainly due to the impact of the COVID-19and the policy on toll-freetravel during the Reporting Period, certain associates which have a larger proportion of their business engaged in road and bridge sector incurred operating losses.
Explanations on the reasons for the changes in other income: Mainly due to the inclusion of deductible portion into other income as a result of the implementation of national policies, which stipulated that commencing from 1 April 2019, an extra 10% shall be credited against deductible input VAT, in line with the policy for deduction of tax amount payable.
Explanations on the reasons for the changes in non-operating revenue: Mainly due to the receipt of pit compensation during the Reporting Period.
Explanations on the reasons for the changes in income tax: Mainly due to the year-on-yeardecrease in the taxable income of the Group as a result of the impact of the COVID-19and the policy on toll-freetravel during the Reporting Period.
Explanations on the reasons for the changes in other comprehensive income, net of tax: Mainly due to the decrease in the fair value of other equity instruments investment held by the Group during the Reporting Period, resulting in a year-on-yeardecrease in other comprehensive income.
- 11 -
(1) Principal operating activities classified by industries and regions
Unit: Yuan | Currency: RMB | |||||||||||||||
Principal operating activities classified by industries | ||||||||||||||||
Change in | ||||||||||||||||
operating | Change in | |||||||||||||||
revenue | operating | |||||||||||||||
over the | costs over the | Change in gross | ||||||||||||||
corresponding | corresponding | profit margin over | ||||||||||||||
Gross profit | period of last | period of last | the corresponding | |||||||||||||
By industries | Operating revenue | Operating costs | margin | year | year | period of last year | ||||||||||
(%) | (%) | (%) | (%) | |||||||||||||
Toll road business | 1,777,600,712.74 | 1,197,035,388.35 | 32.66 | -52.97 | 0.91 | Decreased by 35.95 | ||||||||||
percentage points | ||||||||||||||||
Shanghai-Nanjing Expressway | 1,176,273,277.15 | 643,622,193.65 | 45.28 | -53.74 | 2.46 | Decreased by 30.01 | ||||||||||
percentage points | ||||||||||||||||
Guangjing Expressway and | 238,218,656.79 | 111,470,130.86 | 53.21 | -45.64 | -33.86 | Decreased by 8.33 percentage | ||||||||||
Xicheng Expressway | points | |||||||||||||||
Ningchang Expressway and | 249,559,632.44 | 317,048,082.41 | -27.04 | -57.73 | 18.57 | Decreased by 81.75 | ||||||||||
Zhenli Expressway | percentage points | |||||||||||||||
Xiyi Expressway and Wuxi | 93,898,635.01 | 101,726,699.57 | -8.34 | -45.92 | 5.25 | Decreased by 52.67 | ||||||||||
Huantaihu Expressway | percentage points | |||||||||||||||
Zhendan Expressway | 19,650,511.35 | 23,168,281.86 | -17.90 | -43.26 | -9.23 | Decreased by 44.20 | ||||||||||
percentage points | ||||||||||||||||
Ancillary services business | 611,871,621.75 | 525,002,197.70 | 14.20 | 0.15 | -4.73 | Increased by 4.39 percentage | ||||||||||
points | ||||||||||||||||
Property sales business | 239,598,650.73 | 110,236,786.05 | 53.99 | -41.82 | -46.38 | Increased by 3.91 percentage | ||||||||||
points | ||||||||||||||||
Other businesses | 39,280,087.28 | 27,015,850.09 | 31.22 | 18.57 | 112.95 | Decreased by 30.49 | ||||||||||
percentage points | ||||||||||||||||
Total | ||||||||||||||||
2,668,351,072.50 | 1,859,290,222.19 | 30.32 | -44.82 | -4.93 | Decreased by 29.24 | |||||||||||
percentage points | ||||||||||||||||
Note: During the Reporting Period, the operating costs of other businesses increased by 112.95% year-on-year was mainly due to the increase in operating costs of Yangtze River Management Company, which was established on 6 June 2019.
- 12 -
Principal operating activities classified by industries and products: Nil.
(2) Analysis of costs
During the Reporting Period, accumulated operating costs amounted to approximately RMB1,859,290,000, representing a year-on-year decrease of approximately 4.93%. The cost structure of each business category is set out below:
Unit: Yuan | Currency: RMB | |||||||
By Industries | ||||||||
Changes in | ||||||||
percentage of | ||||||||
the amount for | ||||||||
Proportion of | the Reporting | |||||||
the amount | Period | |||||||
Proportion of | in total | compared | ||||||
the amount in | costs for the | with the | ||||||
total costs for | Amount for the | corresponding | corresponding | |||||
Components of | Amount for the | the Reporting | corresponding | period of last | period of last | |||
By Industries | costs | Reporting Period | Period | period of last year | year | year | Explanation | |
(%) | (%) | (%) | ||||||
Toll road operations - | 1,197,035,388.35 | 64.38 | 1,186,295,935.98 | 60.66 | 0.91 | - | ||
- | Depreciation and | 745,349,229.43 | 40.09 | 722,765,894.88 | 36.96 | 3.12 | ||
amortization | ||||||||
- | Costs on maintenance | 90,000,499.83 | 4.84 | 83,907,384.95 | 4.29 | 7.26 | Mainly due to the centralized | |
maintenance of pavement | ||||||||
on certain sections | ||||||||
of Nanjing Shanghai | ||||||||
Expressway and a | ||||||||
year-on-year increase | ||||||||
in the costs of road | ||||||||
maintenance as a result | ||||||||
of a comprehensive | ||||||||
renovation of the facilities | ||||||||
and greening along the | ||||||||
expressways during the | ||||||||
Reporting Period. | ||||||||
- | Costs on system | 4,238,044.31 | 0.23 | 7,078,171.66 | 0.36 | -40.13 | Mainly due to higher costs | |
maintenance | on system maintenance as | |||||||
affected by the withdrawal |
of provincial toll stations in the corresponding period of last year
- 13 -
By Industries | |||||||
Changes in | |||||||
percentage of | |||||||
the amount for | |||||||
Proportion of | the Reporting | ||||||
the amount | Period | ||||||
Proportion of | in total | compared | |||||
the amount in | costs for the | with the | |||||
total costs for | Amount for the | corresponding | corresponding | ||||
Components of | Amount for the | the Reporting | corresponding | period of last | period of last | ||
By Industries | costs | Reporting Period | Period | period of last year | year | year | Explanation |
(%) | (%) | (%) | |||||
- | Costs on toll | 48,350,275.51 | 2.60 | 73,256,312.21 | 3.75 | -34.00 | Mainly due to the decrease |
collection | in toll revenue during | ||||||
the Reporting Period, | |||||||
the corresponding road | |||||||
network management | |||||||
fees decreased year-on- | |||||||
year, and the renovation | |||||||
of toll station areas along | |||||||
the expressway in the | |||||||
corresponding period of | |||||||
last year, resulting in a | |||||||
year-on-year decrease in | |||||||
costs on toll collection. | |||||||
- | Labour costs | 309,097,339.27 | 16.62 | 299,288,172.28 | 15.30 | 3.28 | |
Ancillary service | - | 525,002,197.70 | 28.24 | 551,071,965.03 | 28.18 | -4.73 | - |
businesses | |||||||
- | Raw materials | 377,916,696.35 | 20.33 | 405,635,189.34 | 20.74 | -6.83 | Mainly due to the year- |
on-year decrease in | |||||||
procurement cost of raw | |||||||
materials as a result of the | |||||||
impact of the COVID-19 | |||||||
and the drop in oil prices | |||||||
during the Reporting | |||||||
Period. | |||||||
- | Depreciation and | 28,252,899.48 | 1.52 | 26,911,715.93 | 1.38 | 4.98 | |
amortization | |||||||
- | Labour costs | 81,461,935.33 | 4.38 | 83,861,022.12 | 4.29 | -2.86 | |
- | Other costs | 37,370,666.54 | 2.01 | 34,664,037.64 | 1.77 | 7.81 | Mainly due to the year-on- |
year increase in property | |||||||
management fees in the | |||||||
service area during the | |||||||
Reporting Period. |
- 14 -
By Industries | |||||||
Changes in | |||||||
percentage of | |||||||
the amount for | |||||||
Proportion of | the Reporting | ||||||
the amount | Period | ||||||
Proportion of | in total | compared | |||||
the amount in | costs for the | with the | |||||
total costs for | Amount for the | corresponding | corresponding | ||||
Components of | Amount for the | the Reporting | corresponding | period of last | period of last | ||
By Industries | costs | Reporting Period | Period | period of last year | year | year | Explanation |
(%) | (%) | (%) | |||||
Property sales | - | 110,236,786.05 | 5.93 | 205,590,031.45 | 10.51 | -46.38 | During the Reporting Period, |
businesses | there was a year-on-year | ||||||
decrease in the scale of | |||||||
delivery and transfer | |||||||
of real estate projects, | |||||||
resulting in a year-on- | |||||||
year decrease in the cost | |||||||
of property sales business. | |||||||
Other businesses | - | 27,015,850.09 | 1.45 | 12,686,454.68 | 0.65 | 112.95 | Mainly due to a year-on- |
year increase in the costs | |||||||
of other business as a | |||||||
result of the increase | |||||||
in the management | |||||||
cost of Yangtze River | |||||||
Management Company | |||||||
and the increase in the | |||||||
scale of the property | |||||||
management concerning | |||||||
the property projects | |||||||
delivered by the | |||||||
subsidiaries during the | |||||||
Reporting Period. |
2. Others
- Detailed explanation on major changes in the composition or source of the Company's profit
Applicable ✓ N/A
(2) Others
Applicable ✓ N/A
- 15 -
3.3 Explanation on major changes in profits caused by non-principal businesses
Applicable ✓ N/A
3.4 Analysis of Assets and Liabilities
- Applicable N/A
1. Assets and Liabilities
Unit: RMB | Currency: RMB | ||||||
Percentage | |||||||
change in | |||||||
balance at | |||||||
the end of the | |||||||
Proportion of | Proportion of | Reporting | |||||
balance to the | balance to the | Period as | |||||
total assets as | total assets as at | compared to | |||||
Balance at the end | at the end of | the end of the | that at the end | ||||
of the Reporting | the Reporting | Balance at the end of | previous period | of the previous | |||
Item | Period | Period (%) | the previous period | (%) | period (%) | Explanation on changes | |
Held-for-trading | 1,765,073,027.10 | 3.02 | 676,935,184.62 | 1.22 | 160.74 | Mainly due to the increase in wealth | |
financial assets | management products held by the Group at | ||||||
the end of the Reporting Period as compared | |||||||
- | - | to the beginning of the period. | |||||
Notes receivable | 1,997,100.00 | 0.00 | 0.00 | Mainly due to the increase in the bank | |||
acceptances receivable at the end of | |||||||
the Reporting Period. | |||||||
Accounts | 412,901,378.17 | 0.71 | 224,285,157.62 | 0.40 | 84.10 | Mainly due to the increase in financing | |
receivable | factoring balance at the end of the | ||||||
Reporting Period as compared to the | |||||||
beginning of the period. | |||||||
Prepayments | 57,315,472.23 | 0.10 | 26,865,058.19 | 0.05 | 113.35 | Mainly due to the increase in | |
prepayments for petroleum products | |||||||
at the end of the Reporting Period | |||||||
as compared to the beginning of the | |||||||
period. | |||||||
Other | 118,522,734.38 | 0.20 | 51,199,899.50 | 0.09 | 131.49 | Mainly due to the cash dividends | |
receivables | declared but not yet paid by associates | ||||||
during the Reporting Period. |
- 16 -
Proportion of | |||
balance to the | |||
total assets as | |||
Balance at the end | at the end of | ||
of the Reporting | the Reporting | Balance at the end of | |
Item | Period | Period (%) | the previous period |
Percentage | |
change in | |
balance at | |
the end of the | |
Proportion of | Reporting |
balance to the | Period as |
total assets as at | compared to |
the end of the | that at the end |
previous period | of the previous |
- period (%) Explanation on changes
Other current | 514,936,839.58 | 0.88 | 379,340,961.34 | 0.68 | 35.75 | Mainly due to the increase in the |
assets | Group's prepaid VAT at the end of the | |||||
Reporting Period as compared to the | ||||||
beginning of the period | ||||||
Other equity | 4,567,964,324.49 | 7.82 | 5,655,468,613.24 | 10.17 | -19.23 | Mainly due to the decrease in the book |
instruments | value of the other equity instruments | |||||
investment | investment recognized at fair value by | |||||
the Group during the Reporting Period. | ||||||
Construction in | 17,618,050,406.77 | 30.18 | 14,501,734,494.95 | 26.07 | 21.49 | Mainly due to the investment in |
progress | construction of road and bridge | |||||
projects in progress. | ||||||
Right-of-use | 2,022,347.44 | 0.00 | 637,434.33 | 0.00 | 217.26 | Mainly due to the increase in the right- |
assets | of-use assets recognized in accordance | |||||
with the New Lease Standards during | ||||||
the Reporting Period. | ||||||
Short-term | 1,380,880,336.29 | 2.37 | 1,972,708,495.84 | 3.55 | -30.00 | Mainly due to the partial repayment |
borrowings | of short-term borrowings during the | |||||
- | - | Reporting Period. | ||||
Notes payable | 895,000,000 | 1.53 | 0.00 | Mainly due to the issuance of bank | ||
acceptances by the subsidiaries | ||||||
engaged in the construction of roads | ||||||
and bridges, concerning the payment | ||||||
of construction projects during the | ||||||
Reporting Period. | ||||||
Accounts | 1,043,858,654.62 | 1.79 | 1,262,414,819.54 | 2.27 | -17.31 | Mainly due to the decrease in project |
payable | payment payable during the Reporting | |||||
Period. | ||||||
Other payables | 2,591,604,474.14 | 4.44 | 261,048,444.02 | 0.47 | 892.77 | The increase is mainly due to the cash |
dividends declared but not paid at the | ||||||
end of the Reporting Period. | ||||||
Non-current | 4,164,076,736.49 | 7.13 | 3,161,145,193.63 | 5.68 | 31.73 | Mainly due to the adjustment of |
liabilities due | RMB1 billion of medium-term notes | |||||
within one | due within one year to non-current | |||||
year | liabilities due within one year during | |||||
the Reporting Period. |
- 17 -
Percentage | ||||||
change in | ||||||
balance at | ||||||
the end of the | ||||||
Proportion of | Proportion of | Reporting | ||||
balance to the | balance to the | Period as | ||||
total assets as | total assets as at | compared to | ||||
Balance at the end | at the end of | the end of the | that at the end | |||
of the Reporting | the Reporting | Balance at the end of | previous period | of the previous | ||
Item | Period | Period (%) | the previous period | (%) | period (%) | Explanation on changes |
Other current | 6,357,724,161.56 | 10.89 | 5,092,083,748.87 | 9.15 | 24.86 | Mainly due to the ultra short-term notes |
liabilities | newly issued during the Reporting | |||||
Period, resulting in increase in the | ||||||
balance as compared to the beginning | ||||||
of the period. | ||||||
Long-term | 10,055,235,181.77 | 17.22 | 8,335,475,444.12 | 14.99 | 20.63 | Mainly due to the increase in loans |
borrowings | for road and bridge projects under | |||||
construction during the Reporting | ||||||
Period as compared to the beginning | ||||||
of the period. | ||||||
Bonds payable | - | 0.00 | 997,460,933.93 | 1.79 | -100.00 | Mainly due to the adjustment of |
RMB1 billion of medium-term notes | ||||||
due within one year to non-current | ||||||
liabilities due within one year during | ||||||
- | - | the Reporting Period. | ||||
Lease liabilities | 1,094,340.47 | 0.00 | 0.00 | Mainly due to the lease liabilities | ||
recognized in accordance with the | ||||||
New Lease Standards during the | ||||||
Reporting Period | ||||||
Deferred income | 157,788,364.52 | 0.27 | 416,613,871.66 | 0.75 | -62.13 | Mainly due to the adjustment of other |
tax liabilities | comprehensive income based on the | |||||
fair value of other equity instruments | ||||||
held by the Group, and the adjustment | ||||||
to the deferred income tax liabilities | ||||||
accordingly during the Reporting | ||||||
Period. | ||||||
Deferred income | 128,703,380.91 | 0.22 | 41,177,151.42 | 0.07 | 212.56 | Mainly due to the receipt of subsidies |
concerning the withdrawal of | ||||||
provincial boundary toll stations | ||||||
during the Reporting Period | ||||||
Other | 504,015,493.00 | 0.86 | 1,291,748,071.42 | 2.32 | -60.98 | Mainly due to the adjustment of other |
comprehensive | comprehensive income based on the | |||||
income | fair value of other equity instruments | |||||
held by the Group during the | ||||||
Reporting Period. |
- 18 -
Other explanations
The calculation basis for total gearing ratio: liabilities divided by total
assets; the calculation basis for net gearing ratio: liabilities divided by shareholders' equity.
2. Restrictions on major assets as at the end of the Reporting Period
- Applicable N/A
Unit: Yuan Currency: RMB | |||
Book value as | |||
at the end of the | |||
Item | Reporting Period | Reasons for restriction | |
Bank deposits | 2,359,744.84 | Deposit of mortgage loans to | |
customers | |||
Bank deposits | 65,208,534.35 | Regulated pre-sale proceeds | |
Intangible assets | 1,813,651,978.68 | Pledge of concession rights of toll | |
expressways | |||
Total | 1,881,220,257.87 | ||
(1) Explanation for restrictions on bank deposits
At the end of the Reporting Period, other monetary funds of the Group included customers' deposit for mortgage loans of RMB2,360,000 and regulated pre-sale proceeds of RMB65,209,000. The regulated pre-sale proceeds are project funds placed in escrow
with banks as required by Nanjing Bureau of Housing and Urban- Rural Development (南京市住房和城鄉建設局) for the purpose
of facilitating the smooth development of property projects and strengthening the supervision of monetary capital for property development projects. Project capital must be paid in full into banks before applications for construction permits are made. Developers shall release the project deposits by tranches depending on the construction progress. The remaining project deposits shall be released upon the completion of the construction and delivery of the units.
- 19 -
(2) Explanation for restrictions on intangible assets
Guangjing Xicheng Company, a subsidiary of the Group, entered into a loan contract with Wuxi branch of Industrial and Commercial Bank of China in respect of a loan of RMB1,200,000,000 in aggregate, which was secured by the toll road concession right of Guangjing Expressway. As at the end of the Reporting Period, the loan balance amounted to RMB581,000,000.
Zhendan Company, a subsidiary of the Group, entered into a loan contract with each of Jiangsu Branch of Communications Bank, Zhongshan South Road Sub-branch of China Construction Bank and Gulou Sub-branch of Postal Saving Bank of China in respect of a total loan amount of RMB139,650,000, RMB600,000,000 and RMB230,000,000,respectively, which were secured by the toll road concession right of Zhendan Expressway. As at the end of the Reporting Period, the loan balance amounted to RMB135,450,000, RMB500,000,000 and RMB97,756,000, respectively.
3. Other explanations
- Applicable N/A
(1) Capital expenditures
In the first half of 2020, the main capital expenditures of the Group are as follows:
Items of Capital Expenditures | Amount |
(RMB) | |
Investment in the construction of Wufengshan Toll | |
Bridge | 1,037,517,588.84 |
Investment in the construction of Changyi Expressway | 435,634,199.78 |
Investment in the construction of Yichang Expressway | 738,646,549.32 |
Investment in the construction of Longtan Bridge | 945,329,036.06 |
Equity investment in Suzhou Industrial Park CDB | |
Kai Yuan Investment Center Phase II (Limited | |
Partnership) | 34,269,230.68 |
Alteration and addition of service areas and toll | |
collection points | 16,103,092.99 |
Software renovation of toll stations | 19,287,971.38 |
Double tank renovation project | 2,423,815.28 |
Other capital expenditures of the Group | 54,516,503.35 |
Total | 3,283,727,987.68 |
- 20 -
(2) Capital structure and solvency
The Group attached great importance to maintaining a reasonable capital structure and continuously improved its profitability in order to maintain the Group's good credit rating and stable financial position. At the end of the Reporting Period, the total liabilities of the Group amounted to approximately RMB28,064,668,000. The overall gearing ratio of the Group was approximately 48.07% (Note: the calculation basis of the overall gearing ratio: liabilities/total assets), an increase of approximately
6.83 percentage points from the beginning of the period. In view of the Group's stable and abundant operating cash flow and sound capacity of financing and capital management, the management believes that the gearing ratio remained at a safe level at the end of the Reporting Period.
- Financial strategy and financing arrangement
During the Reporting Period, the Group actively expanded its financing channels, adjusted its debt structure and controlled financing costs. Through adopting a proactive financing strategy, the Company was able to meet the funding needs of its operation and management and project investment and controlled the financing costs effectively. The Group's borrowing requirements are not subject to seasonality. During the Reporting Period, an additional fund of RMB8,110,000,000 was obtained through direct financing. As at 30 June 2020, the Group's borrowings amounted to RMB11,453,755,000, of which RMB2,274,909,000 were fixed-rate loans. As at the end of the Reporting Period, the balance of interest-bearing liabilities amounted to approximately RMB21,703,755,000, representing an increase of approximately RMB2,370,835,000 as compared with the beginning of the period. In the first half of 2020, the government adhered to the prudent monetary policy, the liquidity was reasonably abundant, the market interest rates were reasonably stable, and the financing costs on the market lowered as compared with the same period of last year. During the Reporting Period, the rate of the consolidated borrowing costs on interest-bearing liabilities of the Group was approximately 3.99%, representing a decrease of approximately
0.43 percentage point year-on-year, approximately 0.73 percentage point lower than the bank lending rate for the same period. During the Reporting Period, the Company's major financing activities included:
- 21 -
Prevailing | ||||||
bank | Decreases | |||||
Type of | Financing | Interest rate | benchmark | in financing | ||
financing instrument | Date of issuance | Term | amount | of issuance | interest rate | costs |
RMB'000 | % | % | % | |||
Ultra short-term note | 8 January 2020 | 93 days | 720,000 | 2.2 | 4.35 | 2.15 |
Ultra short-term note | 9 January 2020 | 92 days | 340,000 | 2.2 | 4.35 | 2.15 |
Ultra short-term note | 10 January 2020 | 97 days | 600,000 | 2.29 | 4.35 | 2.06 |
Ultra short-term note | 10 January 2020 | 98 days | 200,000 | 2.2 | 4.35 | 2.15 |
Ultra short-term note | 3 March 2020 | 227 days | 500,000 | 2.1 | 4.35 | 2.25 |
Ultra short-term note | 1 April 2020 | 198 days | 400,000 | 2.2 | 4.35 | 2.15 |
Ultra short-term note | 8 April 2020 | 190 days | 600,000 | 1.78 | 4.35 | 2.57 |
Ultra short-term note | 8 April 2020 | 190 days | 500,000 | 1.77 | 4.35 | 2.58 |
Ultra short-term note | 15 April 2020 | 191 days | 600,000 | 1.75 | 4.35 | 2.60 |
Ultra short-term note | 15 April 2020 | 191 days | 700,000 | 1.74 | 4.35 | 2.61 |
Ultra short-term note | 26 April 2020 | 187 days | 300,000 | 1.68 | 4.35 | 2.67 |
Ultra short-term note | 6 May 2020 | 184 days | 500,000 | 1.67 | 4.35 | 2.68 |
Ultra short-term note | 13 May 2020 | 184 days | 500,000 | 1.65 | 4.35 | 2.70 |
Ultra short-term note | 13 May 2020 | 184 days | 500,000 | 1.67 | 4.35 | 2.68 |
Ultra short-term note | 20 May 2020 | 184 days | 400,000 | 1.65 | 4.35 | 2.70 |
Ultra short-term note | 20 May 2020 | 184 days | 500,000 | 1.65 | 4.35 | 2.70 |
Ultra short-term note | 27 May 2020 | 142 days | 250,000 | 1.65 | 4.35 | 2.70 |
(4) Credit policy
In order to minimize credit risk, the Group has controlled credit limits, undertaken credit approvals and implemented other control procedures to ensure that necessary follow-up actions are taken to recover overdue debts. In addition, the Group reviews the recovery of its receivables on each balance sheet date to ensure that adequate provisions are made for bad debts. In view of the above, the management of the Group considers that the Group's credit risk is relatively low.
- 22 -
(5) Contingencies
As a common practice in the real estate industry, Ninghu Properties Company and Hanwei Company, subsidiaries of the Group, provide joint liabilities guarantees in connection with mortgage loans granted to buyers of commodity housing properties. The guarantee obligation shall begin from the effective date of a guarantee contract and cease when the registration of mortgage in respect of a purchased properties is completed and the Building Right Encumbrances Certificate is submitted to banks for enforcement. As at 30 June 2020, the outstanding guarantees amounted to approximately RMB590,188,000.
The Company has provided a wholly-owned subsidiary, Ninghu Factoring with guarantees for their application for comprehensive credit, with a maximum guarantee balance of RMB810,000,000. The guarantee method is joint liability guarantee, with a guarantee period of one year; as of 30 June 2020, the guarantee balance was approximately RMB110,000,000.
(6) Entrusted loans
As at 30 June 2020, the entrusted loans obtained by the Company and its subsidiaries were as follows:
Unit: Yuan Currency: RMB | ||||
Overdue | ||||
Amount | Unexpired | outstanding | ||
Type | Source of funds | incurred | balance | amount |
Entrusted loans | Internal funds | 110,000,000 | 1,407,000,000 | 0 |
Note: As of the end of the Reporting Period, the Company's entrusted loan balance was RMB1,407,000,000. In particular, the entrusted loans to Zhendan Company, a controlling subsidiary were RMB21,000,000, and the entrusted loans to Hanwei Company and Ninghu Properties Company, the wholly-owned subsidiaries, were RMB436,000,000 and RMB950,000,000, respectively.
- 23 -
(7) Foreign exchange risks
The Group is currently operating its businesses principally in the PRC. There are no material foreign exchange risks as the Group's operating revenue and capital expenditure are all settled in Renminbi except for dividend payments for H Shares and the Group has no investment in foreign currency. The Group obtained a loan of USD9,800,000 from the Spanish Government in 1998 at the interest rate of 2% per annum which the Group will make annual payments in relation to the repayment of the principal and interests and it will become due on 18 July 2027. As at 30 June 2020, the balance of the loan was equivalent to approximately RMB14,909,000, against which no foreign exchange hedging arrangements were made by the Group. Fluctuation in exchange rates will have no material impact on the Group's results.
3.5 Analysis of investment
1. Overall analysis of external investment
- Applicable N/A
During the Reporting Period, the total amount of external investment of the Group was approximately RMB3,191,397,000, representing a year-on-year increase of approximately 20.97%. The specific projects include investment in the construction of roads and bridges under construction, and investment in Suzhou Industrial Park CDB Kai Yuan Investment Center Phase II (Limited Partnership).
- Material equity investments
- Applicable N/A
- 24 -
-
Investment in Luode Real Estate Investment FOF Second Issue
On 24 April 2020, the twentieth meeting of the ninth session of the board of directors of the Company approved the participation by Ninghu Investment Company, a wholly- owned subsidiary of the Company, in the establishment of the Phase III Parent Real Estate Fund initiated by Luode Fund Company, with total size of the fund no more than RMB1.5 billion, in which Ninghu Investment Company will invest no more than RMB500 million; other partners and teams will invest no more than RMB1,000 million. For details of the above investment project, please refer to the announcements published by the Company on the website of Shanghai Stock Exchange (www.sse.com.cn) on 25 April 2020 and on the website of the Stock Exchange (www.hkex.com.hk) on 24 April 2020, respectively.
As of the date of this announcement, the relevant investment agreement has been signed on 24 July 2020. For details of the investment agreement, please refer to the relevant announcements published by the Company on the website of Shanghai Stock Exchange (www.sse.com.cn) on 25 July 2020 and on the website of the Stock Exchange (www.hkex.com. hk) on 24 July 2020, respectively.
-
Investment in Luode Real Estate Investment FOF Second Issue
- Material non-equity investments
- Applicable N/A
- Accelerating the progress of road and bridge projects under construction
During the Reporting Period, the Group accelerated the progress of road and bridge projects under construction, of which, RMB1,037,518,000, RMB435,634,000, RMB738,647,000 and RMB945,329,000 were invested in the construction of the Wufengshan Toll Bridge project, Changyi Expressway, Yichang Expressway and Longtan Bridge Project, respectively.
- 25 -
-
Subscription for CDB Kai Yuan Phase II Fund
Upon approval by the board of directors of the Company, Ninghu Investment Company has subscribed for a total of RMB1.2 billion units in CDB Kai Yuan Phase II Fund. During the Reporting Period, Ninghu Investment Company made a capital contribution of approximately RMB34,269,000. As at the end of the Reporting Period, Ninghu Investment Company has made an aggregate capital contribution of RMB953,800,000.
-
Subscription for CDB Kai Yuan Phase II Fund
- Financial assets measured at fair value
- Applicable N/A
Unit: Yuan | Currency: RMB | ||||
Initial | Source of | Purchased/ | Investment | Change in | |
Item | investment cost | funds | Sold | income | fair value |
Fund investments | 9,999,400.00 | Internal funds | - | - | 5,070,695.74 |
Wealth management products | 1,732,700,000 | Internal funds | - | 5,374,015.76 | - |
Gold investments | 10,473,492.09 | Internal funds | -7,564,479.66 | 3,421,316.72 | -1,745,020.34 |
Other non-current financial | 919,531,171.55 | Internal funds | 34,269,230.68 | - | 47,094,108.45 |
assets (CDB Kai Yuan | |||||
Phase II) | |||||
Other non-current financial | 150,000,000.00 | Internal funds | -150,000,000.00 | - | -27,890.68 |
assets (Luode Dening) | |||||
Other non-current financial | 300,000,000.00 | Internal funds | - | - | 61,082.85 |
assets (Zhongbei Zhiyuan) | |||||
Other equity Instruments | 1,947,506,804.71 | Internal funds | - | 93,130,000 | -525,950,000 |
(Bank of Jiangsu) | |||||
Other equity Instruments | 270,898,456.89 | Internal funds | - | 56,160,000 | -194,220,000 |
(Jiangsu Leasing Company) | |||||
Fuanda Asset Management | 2,000,000,000 | Internal funds | - | - | -367,334,288.75 |
Scheme | |||||
New shares | 206,442.80 | Internal funds | -187,996.84 | 88,437.12 | 8,200.78 |
- 26 -
During the Reporting Period, Ninghu Investment Company, a subsidiary of the Company, continued to hold Fuanda Advantageous Growth Fund purchased in 2011, in which approximately 10,000,000 units were available in total with a net value of approximately RMB22,891,000 at the beginning of the Reporting Period. Investment cost amounted to approximately RMB9,999,000. Its fair value increased by approximately RMB5,070,000 and its cumulative fair value increased by approximately RMB17,961,000 during the Reporting Period. During the Reporting Period, Ninghu Investment Company continued to engage in gold bullion investment commenced in 2014 at an investment cost of approximately RMB10,473,000 with a net value being approximately RMB13,694,000 at the beginning of the Reporting Period, and sold approximately RMB7,564,000 of the gold with an investment income of approximately RMB3,421,000 during the Reporting Period. At the end of the Reporting Period, its net value was approximately RMB4,385,000. Its fair value decreased by approximately RMB1,745,000 while its cumulative fair value increased by approximately RMB1,476,000 during the Reporting Period. During the Reporting Period, Ninghu Investment Company continued to hold Luode Parent Fund subscribed for in 2016, with a net value of approximately RMB38,414,000 at the beginning of the Reporting Period, and a net value of approximately RMB38,386,000 at the end of the Reporting Period. Its fair value decreased by approximately RMB28,000 and its cumulative fair value increased by approximately RMB38,386,000 during the Reporting Period. During the Reporting Period, Ninghu Investment Company continued to hold CDB Kai Yuan Phase II Fund subscribed for in 2016 at an investment cost of RMB919,531,000 with its net value of approximately RMB1,107,666,000 at the beginning of the Reporting Period, and it increased the principal amount of investment of RMB34,269,000 during the Reporting Period. At the end of the Reporting Period, its net value was approximately RMB1,189,029,000. Its fair value increased by approximately RMB47,094,000 while its cumulative fair value increased by approximately RMB235,229,000 during the Reporting Period. During the Reporting Period, Ninghu Investment Company participated in Real Estate Investment FOF Second Issue initiated and established by Luode Fund Company at an investment cost of RMB300,000,000. At the end of the Reporting Period, its net value was approximately RMB300,157,000. Its fair value increased by approximately RMB61,000 while its cumulative fair value increased by approximately RMB157,000 during the Reporting Period.
- 27 -
3.6 Material disposal of assets and equity interest
Applicable ✓ N/A
3.7 Analysis of major subsidiaries and investee companies
✓ | Applicable | N/A | |
1. Operations of major subsidiaries
Unit: Yuan | Currency: RMB | |||||||
Equity | ||||||||
interest | Percentage | Year-on- | ||||||
attributable | of the | year increase/ | ||||||
to the | Company's | decrease in | ||||||
Name of company | Principal businesses | Investment cost | Company% | Total assets | Net assets | Net profit | net profit | net profit |
% | % | |||||||
Ningchang Zhenli | Expressway construction, | 5,029,236,884.47 | 100 | 6,733,460,015.85 | 6,652,574,218.91 | -65,185,260.10 | - | -129.03 |
Company | management, maintenance and | |||||||
toll collection | ||||||||
Guangjing Xicheng | Expressway construction, | 2,125,000,000 | 85 | 12,750,116,443.10 | 6,651,712,145.04 | 65,887,527.32 | 13.61 | -81.59 |
Company | management, maintenance and | |||||||
toll collection | ||||||||
Zhendan Company | Expressway construction, | 423,910,000 | 70 | 1,677,724,493.31 | 501,350,673.18 | -40,708,214.99 | - | 65.49 |
management, maintenance and | ||||||||
toll collection | ||||||||
Wufengshan Toll Bridge | Expressway construction, | 3,112,980,000 | 64.5 | 10,318,143,324.72 | 4,829,024,960.27 | 215,994.57 | 0.04 | -81.90 |
Company | management, maintenance and | |||||||
toll collection | ||||||||
Ninghu Investment | Investments in various types of | 1,318,100,000 | 100 | 1,995,462,982.84 | 1,810,776,444.56 | 55,345,582.58 | 11.43 | 109.93 |
Company | infrastructure, industries and | |||||||
assets | ||||||||
Ninghu Properties | Real estate development, operation | 500,000,000 | 100 | 2,581,085,959.65 | 1,175,218,751.88 | 54,619,874.66 | 11.28 | -49.05 |
Company | and consultancy | |||||||
Hanwei Company | Real estate development and | 184,499,800 | 100 | 1,820,771,752.03 | -22,580,894.04 | -21,903,613.83 | - | -16.39 |
operation | ||||||||
Yangtze River | Expressway construction, | 50,000,000 | 100 | 59,483,961.01 | 50,136,478.35 | 124,563.56 | 0.03 | - |
Management | management, maintenance and | |||||||
Company | toll collection | |||||||
Longtan Bridge | Expressway construction, | 785,090,000 | 53.6 | 1,363,937,347.56 | 1,233,735,497.56 | -114,223.55 | - | - |
Company | management, maintenance and | |||||||
toll collection |
- During the Reporting Period, as affected by the COVID-19 and the policy on toll-free travel, the operating results of Ningchang Zhenli Company, Guangjing Xicheng Company and Zhendan Company, the subsidiaries of the Group in road and bridge sector, decreased significantly year-on-year.
- During the Reporting Period, Ninghu Investment Company recorded an increase in net profit by approximately 109.93% year- on-year due to an increase in fair value of its other non-current financial assets during the Reporting Period.
- 28 -
- Please refer to the section headed "Business of property development and sales" in this announcement for the operational performance and changes in the results of Ninghu Properties Company.
- Please refer to the section headed "Business of property development and sales" in this announcement for the operational performance of Hanwei Company.
2. Operations of key associates
During the Reporting Period, the investment income of the Group amounted to approximately RMB147,762,000, representing a decrease of approximately 69.10% year-on-year and approximately 30.52% of the Group's net profit. Although the year-on-year increase in the bonus of Jiangsu Leasing and Bank of Jiangsu invested by the Group during the Reporting Period, the associates in road and bridge sector recorded an operating loss as affected by the COVID-19 and the policy on toll- free travel. A year-on-year decrease in investment income was recorded as a result of an investment income of approximately RMB-10,412,000 recognized by associates directly invested by the Group. Operating results of certain key associates are set out below:
Net profit | |||||||
Equity | attributable | ||||||
interest | to the | Percentage | |||||
attributable | shareholders | Contribution | of the | Year-on- | |||
Investment | to the | of the | to investment | Company's | year increase/ | ||
Name of Company | Principal business | cost | Company | associates | income | net profit | decrease |
RMB | % | RMB | RMB | % | % | ||
Suzhou Expressway | Mainly responsible for the | 526,090,677 | 30.01 | 32,210,226.66 | 9,666,289.02 | 2.00 | -91.47 |
Company | management and operation | ||||||
(the original | businesses of Sujiahang | ||||||
Sujiahang | Expressway and Changjia | ||||||
Company) | Expressway | ||||||
Yangtze Bridge | Mainly responsible for the | 631,159,243 | 26.66 | -56,000,003.00 | -14,929,600 | - | -111.84 |
Company | management and operation of | ||||||
Jiangyin Bridge | |||||||
Yanjiang Company | Mainly responsible for the | 1,466,200,000 | 25.15 | -90,454,006.45 | -24,965,305.78 | - | -124.33 |
management and operation of | |||||||
Yanjiang Expressway |
- As affected by the COVID-19 and the policy on toll-free travel, the Group's associates in the road and bridge sector recorded operating losses, resulting in a year-on-year significant decrease in investment income contributed.
- 29 -
3.8 Structured entities controlled by the Company
Applicable ✓ N/A
3.9 Other disclosure
1. Profit warning and explanation of projected accumulated net loss from the beginning of the year to the end of the next reporting period or material changes over the corresponding period of previous year
- Applicable N/A
As affected by the COVID-19 and the policy on toll-free travel, it is expected that the accumulated net profit from the beginning of the year to the end of the next reporting period will decrease significantly over the corresponding period of previous year.
2. Possible risks
- Applicable N/A
With a view to optimizing the corporate governance system of the Group, strengthening risk management, and enhancing the Company's capability to deal with risks, the Group determined the basic principles for risk assessment, established the standards of risk assessment, and identified material risks of the Group after taking into account the in combination with the industry risks, thus establishing the risk management system. According to the macro environment and the Group's current business situation, the Group will pay keen attention to the following main risks and proactively take effective countermeasures:
(1) Risks associated with industry policy
Risk analysis: The Group is primarily engaged in the investment, construction, operation and management of toll roads and bridges, and toll revenue are the major source of revenue for the Group. The business revenue of the Group is subject to the direct and indirect influence of adjustments and changes in the national macro-control policy and taxation policy. Due to the impact of COVID-19 and the policy on toll-free travel, the toll revenue of the Group will see significant decreases and the Group is exposed to operational risks arising from policies.
- 30 -
Counter-measures: The Group will follow closely with relevant policies and actively interpret policies in response to policy- related risks. It will establish a dynamic tracking and assessment mechanism and enhance the contact and communication with competent government authorities, especially transportation, financial, taxation and pricing departments, to make timely business decisions accordingly in a timely manner. It will strive for favorable policies and flexible and differentiated charging standards and develop new profit growth points to reduce downward pressures on toll revenue. Meanwhile, the Group will develop new profit growth points and proactively commence various business activities relating to the principal businesses aiming to reduce the risks associated with arising from relatively simple industrial structure.
(2) Risks associated with competition pattern
Risk analysis: The traditional expressway industry faces severe competition with limited growth potential in market size. The opening of roads and bridges with substitution effects may reduce the market share and revenue growth of the Group. With the expansion of railway network in Jiangsu Province, the convenient high-speed railway has changed the way people travel, which has profound effects on the future development of the principal business of the Group.
Counter-measures: Facing the competition and the substitution effect in the industry, the Group will speed up in digitalized transformation. It will leverage on information technology to improve the capability on judging, releasing, sharing and controlling road information to consistently enhance operation management and improve service quality. It will focus on explore added value of traffic services and create more sources of revenue through multi-channels. Meanwhile, the Group will pay close attention to regional planning on road network and nodes in road and railway operation and establish tracking and appraisal mechanisms to enhance the response capacity. For diversion network with competition, it will adjust marketing strategies in a timely manner and adapt to market demands to stabilize sources of revenue.
- 31 -
(3) Risks associated with project investment
Risk analysis: In the course of the Group's business, road and bridge projects newly constructed and new projects with investments are subject to the influence of regional economy and other related factors. In particular, with the deepening of development of the "going-out" strategy of the Group, more mergers and acquisitions projects may emerge in overseas markets. Thus there is a risk that future returns may fall short of expectations. In addition, investment in financial and similar financial products may involve risks of losses and return due to market fluctuations and systematic risks.
Counter-measures: For uncertainties in achieving revenue from projects, the Group, on one hand, improves the mechanism on the enrolment and cultivation of professional talents and boosts the capacity on preliminary researches on projects to fully and comprehensively analyze the feasibility on investment in projects; on the other hand, it establishes or appoints professional appraisal teams to provide professional views to fully keep abreast of the revenue and potential risks of investment projects. It will enhance forward-looking judgment in decision-making on investment, comprehensively analyze internal and external factors affecting decision-making on projects and establish scientific investment decision-making procedures to reduce chances of investment risks.
(4) Risks associated with lower-than-expected rate of destocking
Risk analysis: Under the general background with current new norms of the economy and due to its long industry chain and cycle, the real estate sector is more susceptible to the changes in market environment and policies. The economic operating environment, changes in fiscal and monetary policies and the policies for taming the property market may affect the sales cycle and sales performance of the Group's real estate business, leading to an extension of the real estate sales cycle and affecting the progress of destocking.
Counter-measures: It will establish the risk management system and normalized risk appraisal mechanisms, stay up-to-date with policies concerning the industry and the development trend of the macro-economy and the industry and integrate risk management into real estate projects. It will reinforce specialized management of projects and strive for delicacy management in various stages from market and projects selection, planning and design to operation and execution. It will build its capability to gain insights into the policy and market trend, adopt effective prevention measures and step up efforts to accelerate the destocking rate and reduce risks to the largest extent.
- 32 -
(5) Safety risks associated with road management
Risk analysis: The increasing traffic volume makes it more and more challenging to maintain road safety and manage road condition. In the operation and management of expressways, any failure to perform the responsibility of safety risk prevention may result in serious road safety accidents and incur liabilities relating to the safety management in service areas, which could in turn adversely affect the realization of the Group's business objectives, and even have a negative impact on the image of the Group's brand.
Counter-measures: the Group will strengthen trainings on operation safety, enhance employees' awareness of operation safety and optimize the accountability and assessment system to ensure that oversight responsibility is in place and duly performed by a particular person. The Group will strengthen its supervision over operation safety, and ensure that the maintenance of production safety equipment is conducted on a regular basis and overhaul is carried out according to a standardized procedure to improve its capacity to ensure production safety with a view to eliminating all potential operation safety risks. The Group will strengthen multi-party coordination and cooperation and properly manage the layout of on-site operating areas in order to minimize the impact on traffic and ensure that all potential risks are eliminated.
3. Other Disclosures
- Applicable N/A
- Establishment of Ninghu International Company, a wholly-owned subsidiary
During the Reporting Period, the Company completed the registration procedures for Ninghu International Company and obtained the Certificate of Incorporation and the Business Registration Certificate issued by the Companies Registry and the Business Registration Office of the Island Revenue Department in Hong Kong, respectively.
- 33 -
- Consolidation of Ningchang Zhenli Company, a wholly-owned subsidiary by merger
On 26 February 2020, the sixteenth meeting of the ninth session of the board of directors of the Company resolved that, the Company was approved to consolidate Ningchang Zhenli Company, a wholly-owned subsidiary by way of merger, and submitted the same to the general meeting for consideration. For details, please refer to the relevant announcements published by the Company on the website of Shanghai Stock Exchange (www.sse.com.cn) on 27 February 2020 and on the website of the Stock Exchange (www.hkex.com.hk) on 26 February 2020, respectively. On 23 April 2020, the second extraordinary general meeting of the Company resolved that, the Company was approved to consolidate Ningchang Zhenli Company, a wholly-owned subsidiary by way of merger. For details, please refer to the relevant announcements published by the Company on the website of Shanghai Stock Exchange (www.sse.com.cn) on 24 April 2020 and on the website of the Stock Exchange (www.hkex.com.hk) on 23 April 2020, respectively.
(3) Adjustment of the amortization method for road operation rights
On 24 April 2020, the twentieth meeting of the ninth session of the board of directors of the Company resolved that, the Company was approved to adjust the amortization method for road operation rights in 2020. The road operation rights are amortized at the standard passenger vehicle flow under the new toll rates. The adjustment resulted in a change of RMB-42,540,000 in the amortization of toll road operation rights within the consolidation scope of the Company in the first half of 2020.
(4) Toll road and bridge projects in Turkey
As of the end of the Reporting Period, this overseas investment has obtained the Enterprise Overseas Investment Certificate (Enterprise Overseas Investment Certificate No. N1000202000216) issued by the Ministry of Commerce of the People's Republic of China and the Filing Notice of Overseas Investment Project (Fa Gai Ban Wai Zi Bei [2020] No. 303) issued by the National Development and Reform Commission of the People's Republic of China. Other approval procedures required for this overseas investment are being processed.
- 34 -
- Approval for Registration of Public Issuance of Corporate Bonds to Professional Investors
On 30 July 2020, the Company received the "Approval on the Public Issuance of Corporate Bonds to Professional Investors by Jiangsu Expressway Company Limited" (Zheng Jian Xu Ke [2020] No. 1635) issued by the CSRC, which approved the application for registration of the Company's public issuance of corporate bonds not exceeding RMB8 billion to professional investors. The issue of the first tranche shall be completed within 12 months from the date of approval; the issue of the remaining tranches shall be completed within 24 months from the date of approval.
(6) Registration of Medium-term Notes
On 14 August 2020, the Company's medium-term notes issue with principal amount of not more than RMB2 billion has been registered by the National Association of Financial Market Institutional Investors, with a registration term of 2 years. On 21 August 2020, the Group completed the issue of the medium-term notes with principal amount of RMB2.0 billion.
(7) Investment plan and financing arrangement
In the second half of 2020, the main capital expenditures of the Group are as follows:
Capital Expenditures | Amount |
(RMB) | |
Investment in the construction of Wufengshan Toll | |
Bridge | 2,005,942,411.16 |
Investment in the construction of Changyi Expressway | 423,985,800.22 |
Investment in the construction of Yichang Expressway | 1,111,353,450.68 |
Investment in the construction of Longtan Bridge | 548,150,963.94 |
Equity investment in Suzhou Industrial Park CDB | |
Kai Yuan Investment Center Phase II (Limited | |
Partnership) | 65,730,769.32 |
Other capital expenditures of the Group | 1,330,845,300.00 |
Total | 5,486,008,695.32 |
Note: The information in the above table includes capital investment in the subsidiaries of the Group.
- 35 -
On the basis of fully leveraging its own capital, the Group timely adjusted its financing strategy based on the financing condition of the capital market so as to satisfy its own funding needs for operation and development, while further optimizing its debt structure and reducing capital risks. As at the date of the disclosure of this announcement, the Group has obtained a registered amount of RMB8 billion for corporate bonds and RMB2 billion for medium-term notes. The Group signed credit facilities contracts with banks but has not yet utilized the facilities. The loan amount of the credit facilities with a term of over one year were approximately RMB30,500 million. The credit line will be sufficient for supporting capital expenditure, debt roll- over and business development of the Group. Meanwhile, the Group is actively exploring various types of financing channels such as convertible bonds and overseas bonds. Selecting the right financing products for the Group will not only provide the Group with sufficient and efficient funds for its present stage of development, but also make prior arrangements for its future development strategies. If other capital expenditure is required under special cases, the Group will adjust its financing plan based on the size of expenditure and the actual cash flow condition.
4 PROFIT DISTRIBUTION PLAN OR PLAN FOR CONVERSION OF CAPITAL RESERVES INTO SHARE CAPITAL
4.1 Proposed half-yearly profit distribution plan or plan for conversion of capital reserves into share capital
Whether to distribute or convert | No |
Number of bonus shares for every share (share) | 0 |
Amount of cash dividends for every share (Yuan) (tax inclusive) | 0 |
Number of shares converted for every share (share) | 0 |
Explanation of profit distribution plan or plan for conversion of capital |
reserves into share capital: Not applicable
During the Reporting Period, the Board of the Company has recommended not to distribute interim dividends for the six months ended 30 June 2020 (for the corresponding period in 2019: nil).
- 36 -
5. OTHER SIGNIFICANT MATTERS
- Repurchase, Sale or Redemption of Securities: During the Reporting Period, there was no repurchase, sale or redemption of any of its listed securities by the Company and/or any of its subsidiaries; and the Company and its subsidiaries have not issued or grant any convertible securities, options, warrants or other similar rights at any time. The Company has obtained approval from the CSRC on public offer of bonds to professional investors.
- Public Float: According to public information and as far as the Directors know, the Board is of the view that the public float of the shares of the Company as at 28 August 2020 (being the latest practicable date prior to the publication of this announcement) complied with the requirements of the Hong Kong Listing Rules.
- Dividend Arrangement Waived or Agreed by the Shareholders: During the Reporting Period, no dividend arrangement was waived by any of the shareholders.
- Corporate Governance: For the period of six months ended 30 June 2020, other than the following code provisions, the Company has complied with all applicable code provisions of the Corporate Governance Code under Appendix 14 to the Hong Kong Listing Rules.
Code provision
A2.7 The chairman should at least hold meetings annually with the independent non- executive directors, in the absence of other directors
Corporate | |
governance | |
Compliance | procedures |
No | During the Reporting Period, |
the Board has 13 members, of | |
whom 3 are executive directors | |
and the rest are non-executive | |
directors. This ensures adequate | |
independence of the board | |
of directors and safeguards | |
the decisions of the board of | |
directors from being prejudiced | |
by the opinions of executive | |
directors. |
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Corporate | |
Code | governance |
provision | Compliance procedures |
A4.2 All directors appointed to fill No a casual vacancy should
be subject to election by shareholders at the first general meeting after appointment. Every director, including those appointed for a specific term, should be subject to retirement by rotation at least once every three years
All directors were elected or replaced at general meetings. The Company has introduced the cumulative voting system for the election of directors. According to the Company Law and the Articles of Association, each session of the board of directors is for a term of three years, with each director appointed for a term of three years, and all directors should retire upon the expiry of the three-year term, instead of retirement by rotation. Any re-appointment is subject to reelection at a general meeting.
A6.7 | Independent non-executive | No |
directors and other non- | ||
executive directors , as | ||
equal board members, | ||
should give the board and | ||
any committees on which | ||
they serve the benefit of | ||
their skills, expertise and | ||
varied backgrounds and | ||
qualifications through | ||
regular attendance and active | ||
participation. In general, | ||
they should also attend | ||
general meetings to gain | and | |
develop a comprehensive and | ||
balanced understanding of | ||
the views of the shareholders |
All independent non-executive d i r e c t o r s a n d o t h e r n o ne x e c u t i v e d i r e c t o r s h a v e attended board meetings and meetings of various committees regularly and contributed their skills and expertise to the Company's decision-making process. During the Reporting Period, except for Mr . Ma Chung Lai, Lawrence, Mr. Wu Xinhua and Madam Hu Yu, non-executive directors, and Mr. Zhang Zhuting, independent non-executive director, who were unable to attend the second 2020 extraordinary general meeting and the annual general meeting for 2019, due to their business reasons, all independent non-executive directors and other non-executive directors have attended the general meetings of the Company held.
- 38 -
- Model Code for Securities Transactions by Directors of Listed Issuers: The Company has adopted a Code of Conduct for securities transactions by its directors on standards no lower than the provisions under the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code") under Appendix 10 of the Hong Kong Listing Rules. Having made specific enquiries to all the Directors, the Directors have fully complied with the provisions stipulated under the Model Code and the Company's code of conduct for securities transactions by directors.
- Save as disclosed in this announcement, there has been no material change in respect of (a) the development of business of the Group or its financial position; (b) important events affecting the Group; and (c) the likely future development in the business of the Group and prospects for the year, since the publication of the 2019 annual report of the Company.
6. FINANCIAL REPORT
-
Financial Statements
The relevant financial information has been prepared in accordance with the Accounting Standards for Business Enterprises of the PRC and has not been audited. The Audit Committee of the Board has reviewed the interim financial report of the Company for the six months ended 30 June 2020. The committee has communicated adequately with the management of the Company in the performance of relevant duties, and recommended that the Board approve the publication of the interim financial report for the six months ended 30 June 2020.
- 39 -
1. | Consolidated Balance Sheet | ||
For the period ended 30 June 2020 | |||
Unit: Yuan | Currency: RMB | ||
30 June | 31 December | ||
Item | 2020 | 2019 | |
Current Assets: | |||
Cash and bank balances | 396,394,765.02 | 503,443,740.45 | |
Held-for-trading financial assets | 1,765,073,027.10 | 676,935,184.62 | |
Notes receivable | 1,997,100.00 | - | |
Accounts receivable | 412,901,378.17 | 224,285,157.62 | |
Prepayments | 57,315,472.23 | 26,865,058.19 | |
Other receivables | 118,522,734.38 | 51,199,899.50 | |
Including: Interest receivable | - | - | |
Dividends receivable | 73,370,239.20 | 4,989,960.00 | |
Inventories | 4,205,525,438.16 | 4,164,567,305.10 | |
Other current assets | 514,936,839.58 | 379,340,961.34 | |
Total Current Assets | 7,472,666,754.64 | 6,026,637,306.82 | |
Non-current Assets: | |||
Long-term equity investments | 6,854,005,331.89 | 6,939,251,518.62 | |
Investments in other equity instruments | 4,567,964,324.49 | 5,655,468,613.24 | |
Other non-current financial assets | 1,527,572,276.51 | 1,446,175,745.21 | |
Investment properties | 17,943,058.91 | 18,394,459.79 | |
Fixed assets | 1,876,221,904.35 | 1,907,362,713.72 | |
Construction in progress | 17,618,050,406.77 | 14,501,734,494.95 | |
Right-of-use assets | 2,022,347.44 | 637,434.33 | |
Intangible assets | 18,246,503,188.58 | 18,927,999,470.50 | |
Long-term prepaid expenses | 9,087,093.25 | 11,418,643.58 | |
Deferred tax assets | 171,925,471.65 | 175,012,653.99 | |
Other non-current assets | 14,955,570.00 | 14,955,570.00 | |
Total Non-current Assets | 50,906,250,973.84 | 49,598,411,317.93 | |
TOTAL ASSETS | 58,378,917,728.48 | 55,625,048,624.75 |
- 40 -
30 June | 31 December | |||
Item | 2020 | 2019 | ||
Current Liabilities: | ||||
Short-term borrowings | 1,380,880,336.29 | 1,972,708,495.84 | ||
Notes payable | 895,000,000.00 | - | ||
Accounts payable | 1,043,858,654.62 | 1,262,414,819.54 | ||
Receipts in advance | 7,832,692.14 | 10,698,899.04 | ||
Contract liabilities | 1,068,685,183.35 | 1,134,150,940.01 | ||
Employee benefits payable | 714,309.08 | 1,563,119.99 | ||
Taxes payable | 182,671,042.18 | 225,458,836.37 | ||
Other payables | 2,591,604,474.14 | 261,048,444.02 | ||
Including: Interest payable | - | - | ||
Dividend payable | 2,424,642,363.88 | 97,197,529.87 | ||
Non-current liabilities due within one year | 4,164,076,736.49 | 3,161,145,193.63 | ||
Other current liabilities | 6,357,724,161.56 | 5,092,083,748.87 | ||
Total Current Liabilities | 17,693,047,589.85 | 13,121,272,497.31 | ||
Non-current Liabilities: | ||||
Long-term borrowings | 10,055,235,181.77 | 8,335,475,444.12 | ||
Bonds payable | - | 997,460,933.93 | ||
Lease liabilities | 1,094,340.47 | - | ||
Provision | 28,798,736.77 | 30,211,590.82 | ||
Deferred income | 128,703,380.91 | 41,177,151.42 | ||
Deferred tax liabilities | 157,788,364.52 | 416,613,871.66 | ||
Total Non-current Liabilities | 10,371,620,004.44 | 9,820,938,991.95 | ||
TOTAL LIABILITIES | 28,064,667,594.29 | 22,942,211,489.26 | ||
Shareholders' Equity: | ||||
Share capital | 5,037,747,500.00 | 5,037,747,500.00 | ||
Capital reserve | 10,501,913,183.87 | 10,501,913,183.87 | ||
Other comprehensive income | 504,015,493.00 | 1,291,748,071.42 | ||
Surplus reserve | 3,551,167,000.42 | 3,551,167,000.42 | ||
General risk reserve | 2,001,131.77 | 141,891.32 | ||
Retained profits | 6,330,680,316.11 | 8,164,265,960.12 | ||
Total shareholders' equity attributable to | ||||
equity holders of the Company | 25,927,524,625.17 | 28,546,983,607.15 | ||
Minority interests | 4,386,725,509.02 | 4,135,853,528.34 | ||
TOTAL SHAREHOLDERS' EQUITY | 30,314,250,134.19 | 32,682,837,135.49 | ||
TOTAL LIABILITIES AND | ||||
SHAREHOLDERS' EQUITY | 58,378,917,728.48 | 55,625,048,624.75 | ||
Person in | ||||
Charge of the | ||||
Legal Representative: | Accounting Body: | Chief Accountant: | ||
Sun Xibin | Dai Qian | Yao Qunfang |
- 41 -
2. | Consolidated Income Statement | ||
For the period ended 30 June 2020 | |||
Unit: Yuan | Currency: RMB | ||
Amount for the | Amount for the | ||
Item | current period | prior period | |
I. Total operating income | 2,668,351,072.50 | 4,835,457,868.83 | |
Including: Operating income | 2,668,351,072.50 | 4,835,457,868.83 | |
II. Total operating costs | 2,237,744,544.95 | 2,341,869,205.41 | |
Including: Operating costs | 1,859,290,222.19 | 1,955,644,387.14 | |
Taxes and levies | 39,258,353.21 | 55,403,316.19 | |
Selling expenses | 8,977,337.47 | 18,630,332.26 | |
Administrative expenses | 73,831,410.68 | 85,673,931.47 | |
Financial expenses | 256,387,221.40 | 226,517,238.35 | |
Including: Interest expenses | 243,777,161.13 | 227,654,018.44 | |
Interest income | 2,833,886.76 | 3,577,594.21 | |
Add: Other income | 9,387,442.24 | 2,612,095.39 | |
Investment income (losses are indicated | |||
by "-") | 147,761,973.92 | 478,199,640.69 | |
Including: Income from investments | |||
in associates and joint ventures | -10,411,795.68 | 355,157,835.85 | |
Gains from changes in fair values | |||
(losses are indicated by "-") | 50,461,176.80 | 21,207,890.81 | |
Impairment reversals (losses) of | |||
credit (losses are indicated by | |||
"-") | - | -130,000.00 | |
Losses from disposal of assets | - | -295,936.53 | |
III. Operating profit (losses are indicated by"-") | 638,217,120.51 | 2,995,182,353.78 | |
Add: Non-operating income | 29,557,223.53 | 1,608,479.04 | |
Less: Non-operating expenses | 9,752,929.55 | 11,041,962.04 |
- 42 -
Amount for the | Amount for the | |
Item | current period | prior period |
IV. Total profit (losses are indicated by "-") | 658,021,414.49 | 2,985,748,870.78 |
Less: Income tax expenses | 173,933,369.86 | 651,267,942.06 |
V. Net profit (losses are indicated by "-") | 484,088,044.63 | 2,334,480,928.72 |
- Categorized by the nature of continuing operation:
1. Net profit from continuing operations
(net losses are indicated by "-") | 484,088,044.63 | 2,334,480,928.72 |
2. Net profit from discontinued operations (net losses are indicated
by "-") | - | - |
- Categorized by ownership:
1. Net profit attributable to owners of the
Company (net losses are indicated
by "-") | 485,637,446.44 | 2,281,609,028.13 |
2. Profit or loss attributable to minority interests (net losses are indicated by
"-") | -1,549,401.81 | 52,871,900.59 | |
VI. Other comprehensive income, net of tax | -809,582,328.42 | 531,287,650.30 | |
(I) Other comprehensive income attributable | |||
to owners of the Company, net of tax | -787,732,578.42 | 527,602,150.30 | |
1. | Other comprehensive income that | ||
cannot be reclassified to profit | |||
or loss | -787,732,578.42 | 527,602,150.30 | |
(1) Re-measurement of | |||
changes in defined | |||
benefit plans | - | - | |
(2) Other comprehensive | |||
income that cannot be | |||
reclassified into profit | |||
or loss under the equity | |||
method | 6,045,888.15 | 124,907,965.20 | |
(3) Changes in fair value of | |||
investments in other | |||
equity instruments | -793,778,466.57 | 402,694,185.10 | |
(II) Other comprehensive income | |||
attributable to minority interests, net | |||
of tax | -21,849,750.00 | 3,685,500.00 |
- 43 -
Amount for the | Amount for the | ||
Item | current period | prior period | |
VII. | Total comprehensive income | -325,494,283.79 | 2,865,768,579.02 |
(I) | Total comprehensive income attributable | ||
to owners of the Company | -302,095,131.98 | 2,809,211,178.43 | |
(II) | Total comprehensive income attributable | ||
to minority interests | -23,399,151.81 | 56,557,400.59 | |
VIII. | Earnings per share | ||
(I) | Basic earnings per share | 0.0964 | 0.4529 |
(II) | Diluted earnings per share | N/A | N/A |
In case of business combination involving enterprises under common control in the current period, the net profit realized by the combining entities before the combination is 0, and the net profit realized by the combining entities in the previous period is 0.
Person in | ||
Charge of the | ||
Legal Representative: | Accounting Body: | Chief Accountant: |
Sun Xibin | Dai Qian | Yao Qunfang |
- 44 -
3. Consolidated Cash Flow Statement For the period ended 30 June 2020
Unit: Yuan | Currency: RMB | |
Amount for the | Amount for the | |
Item | current period | prior period |
- Cash Flows from Operating Activities: Cash receipts from the sale of goods and the
rendering of services | 2,724,400,874.76 | 5,240,391,028.41 |
Other cash receipts relating to operating | ||
activities | 125,996,536.84 | 98,154,643.84 |
Sub-total of cash inflows from operating | ||
activities | 2,850,397,411.60 | 5,338,545,672.25 |
Cash payments for goods purchased and | ||
services received | 934,531,215.93 | 991,054,370.10 |
Net increase in loans to customers and | ||
advances | - | 500,004.00 |
Cash payments to and on behalf of | ||
employees | 414,329,720.82 | 424,438,938.38 |
Payments of various types of taxes | 348,231,442.18 | 898,469,530.85 |
Other cash payments relating to operating | ||
activities | 257,975,882.19 | 96,586,438.02 |
Sub-total of cash outflows from operating | ||
activities | 1,955,068,261.12 | 2,411,049,281.35 |
Net Cash Flow from Operating Activities | 895,329,150.48 | 2,927,496,390.90 |
II. Cash Flows from Investing Activities: | ||
Cash receipts from disposals and recovery | ||
of investments | 2,113,389,861.59 | 3,804,205,807.87 |
Cash receipts from investment income | 171,131,564.26 | 63,582,954.06 |
Net cash receipts from disposals of fixed | ||
assets, intangible assets and other long- | ||
term assets | 17,903.54 | 117,486.66 |
Sub-total of cash inflows from investing | ||
activities | 2,284,539,329.39 | 3,867,906,248.59 |
Cash payments to acquire or construct fixed | ||
assets, intangible assets and other long- | ||
term assets | 2,343,360,064.33 | 1,477,781,578.00 |
Cash payments to acquire investments | 3,232,375,673.48 | 5,593,771,864.38 |
Sub-total of cash outflows from investing | ||
activities | 5,575,735,737.81 | 7,071,553,442.38 |
Net Cash Flow from Investing Activities | -3,291,196,408.42 | -3,203,647,193.79 |
- 45 -
Amount for the | Amount for the | |||
Item | current period | prior period | ||
III.Cash Flows from Financing Activities: | ||||
Cash receipts from capital contributions | 289,710,000.00 | 479,200,555.00 | ||
Including: cash receipts from capital | ||||
contributions from minority owners of | ||||
subsidiaries | 289,710,000.00 | 479,200,555.00 | ||
Cash receipts from borrowings | 2,243,690,000.00 | 1,402,400,000.00 | ||
Cash receipts from issue of bonds | 8,110,000,000.00 | 2,200,000,000.00 | ||
Sub-total of cash inflows from financing | ||||
activities | 10,643,400,000.00 | 4,081,600,555.00 | ||
Cash repayments of borrowings | 7,983,069,130.59 | 3,604,177,864.07 | ||
Cash payments for distribution of dividends | ||||
or profits or settlement of interest expenses | 366,506,631.30 | 185,038,115.49 | ||
Other cash payments relating to financing | ||||
activities | 18,540,629.97 | 2,248,810.55 | ||
Sub-total of cash outflows from financing | ||||
activities | 8,368,116,391.86 | 3,791,464,790.11 | ||
Net Cash Flow from Financing Activities | 2,275,283,608.14 | 290,135,764.89 | ||
IV. Effect of Foreign Exchange Rate | ||||
Changes on Cash and Cash | ||||
Equivalents | ||||
V. Net Increase (Decrease) in Cash and | ||||
Cash Equivalents | -120,583,649.80 | 13,984,962.00 | ||
Add: Opening balance of Cash and Cash | ||||
Equivalents | 449,410,135.63 | 515,126,921.66 | ||
VI. Closing balance of Cash and Cash | ||||
Equivalents | 328,826,485.83 | 529,111,883.66 | ||
Person in | ||||
Charge of the | ||||
Legal Representative: | Accounting Body: | Chief Accountant: | ||
Sun Xibin | Dai Qian | Yao Qunfang |
- 46 -
6.2 Extracted Notes to the Financial Statements
6.2.1 Operating Income and Operating Costs
Unit: Yuan | Currency: RMB | ||||||||||||||
Principal operating activities classified by industries | |||||||||||||||
Change in | Change in | Change in | |||||||||||||
operating | operating | gross | |||||||||||||
revenue | revenue | profit margin | |||||||||||||
over the | over the | over the | |||||||||||||
corresponding | corresponding | corresponding | |||||||||||||
Operating | Operating | Gross profit | period of | period of | period of | ||||||||||
By industries | revenue | costs | Margin | last year | last year | last year | |||||||||
(%) | (%) | (%) | |||||||||||||
Toll road | 1,777,600,712.74 | 1,197,035,388.35 | 32.66 | -52.97 | 0.91 | Decreased by | |||||||||
35.95 percentage | |||||||||||||||
point | |||||||||||||||
Shanghai- Nanjing | 1,176,273,277.15 | 643,622,193.65 | 45.28 | -53.74 | 2.46 | Decreased by | |||||||||
Expressway | 30.01 percentage | ||||||||||||||
point | |||||||||||||||
Guangjing | 238,218,656.79 | 111,470,130.86 | 53.21 | -45.64 | -33.86 | Decreased by | |||||||||
Expressway | 8.33 percentage | ||||||||||||||
and Xicheng | point | ||||||||||||||
Expressway | |||||||||||||||
Ningchang | 249,559,632.44 | 317,048,082.41 | -27.04 | -57.73 | 18.57 | Decreased by | |||||||||
Expressway and | 81.75 percentage | ||||||||||||||
Zhenli Expressway | point | ||||||||||||||
Xiyi Expressway and | 93,898,635.01 | 101,726,699.57 | -8.34 | -45.92 | 5.25 | Decreased by | |||||||||
Wuxi Huantaihu | 52.67 percentage | ||||||||||||||
Expressway | point | ||||||||||||||
Zhendan Expressway | 19,650,511.35 | 23,168,281.86 | -17.90 | -43.26 | -9.23 | Decreased by | |||||||||
44.20 percentage | |||||||||||||||
point | |||||||||||||||
Ancillary services | 611,871,621.75 | 525,002,197.70 | 14.20 | 0.15 | -4.73 | Increased by | |||||||||
4.39 percentage | |||||||||||||||
points | |||||||||||||||
Property sales | 239,598,650.73 | 110,236,786.05 | 53.99 | -41.82 | -46.38 | Increased by | |||||||||
3.91 percentage | |||||||||||||||
points | |||||||||||||||
Others | 39,280,087.28 | 27,015,850.09 | 31.22 | 18.57 | 112.95 | Decreased by | |||||||||
30.49 percentage | |||||||||||||||
point | |||||||||||||||
Total | 2,668,351,072.50 | 1,859,290,222.19 | 30.32 | -44.82 | -4.93 | Decreased by | |||||||||
29.24 percentage | |||||||||||||||
point | |||||||||||||||
- 47 -
6.2.2 Financial expenses | |||||
Unit: Yuan | Currency: RMB | ||||
Amount | Amount | ||||
recognized in | recognized in | ||||
the current | the prior | ||||
Item | period | period | |||
Interest expenses | 243,777,161.13 | 227,654,018.44 | |||
Interest income | -2,833,886.76 | -3,577,594.21 | |||
Exchange differences | 199,624.65 | 101,811.35 | |||
Bond issuance fee and commission | |||||
charges for other loans | 11,899,606.27 | 1,500,605.97 | |||
Others | 3,344,716.11 | 838,396.80 | |||
Total | 256,387,221.40 | 226,517,238.35 | |||
6.2.3 Investment income | |||||
Unit: Yuan | Currency: RMB | ||||
Amount | Amount | ||||
recognized in | recognized in | ||||
the current | the prior | ||||
Item | period | period | |||
Income from long-term equity investments | |||||
under equity method | (10,411,795.68) | 355,157,835.85 | |||
Investment income from other equity | |||||
instruments in the holding period | 149,290,000.00 | 114,800,000.00 | |||
Investment income from held-for-trading | |||||
financial assets | 4,686,758.48 | 8,118,371.68 | |||
Investment income (losses) from disposal | |||||
of financial assets measured at FVTPL | 4,197,011.12 | 123,433.16 | |||
Total | 147,761,973.92 | 478,199,640.69 | |||
Other explanations: None | |||||
- 48 -
6.2.4 Income tax expenses | ||||
Unit: Yuan Currency: RMB | ||||
Amount | Amount | |||
recognized in | recognized in | |||
the current | the prior | |||
Item | period | period | ||
Current tax expenses | 157,144,512.52 | 632,712,224.27 | ||
Deferred tax expenses | 16,137,747.38 | 18,555,717.79 | ||
Differences in annual filing for the prior years | 651,109.96 | - | ||
Total | 173,933,369.86 | 651,267,942.06 | ||
6.2.5 Return on net assets and earnings per share ("EPS")
Weighted | |||
average | |||
Profit for the | return on | EPS | |
reporting period | net assets | Basic EPS | Diluted EPS |
(%) | |||
Net profit attributable to | |||
ordinary shareholders | |||
of the Company | 1.71 | 0.0964 | N/A |
Net profit attributable to | |||
ordinary shareholders | |||
of the Company after | |||
deduction of | |||
non-recurring profits | |||
or losses | 1.48 | 0.0833 | N/A |
Note: Unit of basic earnings per share: yuan/share, currency: RMB
- 49 -
6.2.6 Supplementary information of income statement
Unit: Yuan | Currency: RMB | ||
Amount | Amount | ||
recognized in | recognized in | ||
the current | the prior | ||
Item | period | period | |
Employee benefits | 431,367,185.58 | 424,411,769.38 | |
Depreciation and amortization | 820,942,950.35 | 795,900,884.46 | |
Toll related expenses | 48,350,275.51 | 83,907,385.03 | |
Road maintenance expenses | 90,000,499.83 | 77,416,312.41 | |
System maintenance expenses | 4,238,044.31 | 2,918,172.57 | |
Real estate development land and | |||
construction cost | 110,236,786.05 | 205,590,031.45 | |
Petroleum in the service zone | 396,397,425.11 | 421,612,796.41 | |
Retail goods in the service zone | - | - | |
Catering cost in the service zone | 1,944,904.89 | 6,421,145.93 | |
Audit fee | - | - | |
Consulting and intermediary service fee | 182,796.20 | 351,539.58 | |
Commission fee for agent of real estate | |||
sales | 3,678,433.44 | 9,639,026.63 | |
Advertisement and promotion fee | 1,974,648.15 | 3,736,184.58 | |
Others | 32,785,020.92 | 28,043,402.44 | |
Total | 1,942,098,970.34 | 2,059,948,650.87 | |
6.2.7 Analysis of Receivable and Payables
- Notes receivable
- Disclosure of notes receivable by categories:
Unit: Yuan Currency: RMB | ||||
Closing | Opening | |||
Category | balance | Balance | ||
Bank acceptances | 1,997,100.00 | - | ||
Total | 1,997,100.00 | - | ||
- 50 -
Other explanations:
✓ | Applicable | Not applicable | |
The Group's bills receivable are accepted by banks with higher credit rating without significant credit risks and no provision for loss has been made.
- Accounts receivable
- Disclosure by aging:
Unit: Yuan | Currency: RMB | |||||||||||
Aging | Closing Balance | |||||||||||
Within 1 year | 407,754,782.92 | |||||||||||
More than 1 year but not exceeding 2 years | 5,306,318.48 | |||||||||||
More than 2 year but not exceeding 3 years | - | |||||||||||
More than 3 years | 1,699,980.00 | |||||||||||
Total | 414,761,081.40 | |||||||||||
[2] Bad debt provision: | ||||||||||||
Unit: Yuan | Currency: RMB | |||||||||||
Changes for the period | ||||||||||||
Opening | Recovery | Write-down | Closing | |||||||||
Category | Balance | Provision or reversal | or write off | Balance | ||||||||
Bad debt | ||||||||||||
provision | 1,859,703.23 | 1,859,703.23 | ||||||||||
Total | 1,859,703.23 | 1,859,703.23 | ||||||||||
- 51 -
Other explanations:
Majority toll road and ancillary services income are settled by cash, others are settled by receipts in advance. The accounts receivable mainly represent the receivables due from other toll operation companies by toll network internal income reallocation and financial factoring receivables from financial factoring business.
Disclosure by aging:
Unit: Yuan | Currency: RMB | |||||||||||||||
Closing balance | ||||||||||||||||
Provision | ||||||||||||||||
for credit | ||||||||||||||||
Aging | Amount | Proportion | impairment | Book value | ||||||||||||
(%) | ||||||||||||||||
Within 1 year | 407,754,782.92 | 98.31 | 159,723.23 | 407,595,059.69 | ||||||||||||
More than 1 year but not | ||||||||||||||||
exceeding 2 years | 5,306,318.48 | 1.28 | - | 5,306,318.48 | ||||||||||||
More than 2 year but not | ||||||||||||||||
exceeding 3 years | - | - | - | - | ||||||||||||
More than 3 years | 1,699,980.00 | 0.41 | 1,699,980.00 | - | ||||||||||||
Total | 414,761,081.40 | 100.00 | 1,859,703.23 | 412,901,378.17 | ||||||||||||
Closing balance | ||||||||||||||||
Bad debt | ||||||||||||||||
Category | Amount | Proportion | provision | Proportion | Book value | |||||||||||
(%) | (%) | |||||||||||||||
Accounts receivable formed | ||||||||||||||||
by transactions regulated | ||||||||||||||||
by standards for revenue | 340,455,081.18 | 82.08 | 1,859,703.23 | 100.00 | 338,595,377.95 | |||||||||||
Lease receivable | 74,306,000.22 | 17.92 | - | 74,306,000.22 | ||||||||||||
Total | 414,761,081.40 | 100.00 | 1,859,703.23 | 100.00 | 412,901,378.17 | |||||||||||
- 52 -
Not credit- | Credit- | |||||||||||||||||
impaired | impaired | |||||||||||||||||
Lifetime | Lifetime | |||||||||||||||||
expected | expected | |||||||||||||||||
Bad debt provision | credit loss | credit loss | Total | |||||||||||||||
Opening balance | 159,723.23 | 1,699,980.00 | 1,859,703.23 | |||||||||||||||
Provision for the period | ||||||||||||||||||
Closing balance | 159,723.23 | 1,699,980.00 | 1,859,703.23 | |||||||||||||||
(3) Disclosure of prepayments by aging | ||||||||||||||||||
Unit: Yuan Currency: RMB | ||||||||||||||||||
Closing balance | Opening balance | |||||||||||||||||
Aging | Amount | Proportion | Amount | Proportion | ||||||||||||||
(%) | (%) | |||||||||||||||||
Within 1 year | 54,549,888.23 | 95.17 | 10,349,713.39 | 38.52 | ||||||||||||||
More than 1 year but | ||||||||||||||||||
not exceeding 2 years | 25,984.00 | 0.05 | 13,775,744.80 | 51.28 | ||||||||||||||
More than 2 years but | ||||||||||||||||||
not exceeding 3 years | 2,739,600.00 | 4.78 | 2,739,600.00 | 10.20 | ||||||||||||||
More than 3 years | - | - | - | - | ||||||||||||||
Total | 57,315,472.23 | 100.00 | 26,865,058.19 | 100.00 | ||||||||||||||
(4) Disclosure of other receivables by nature | ||||||||||||||||||
Unit: Yuan Currency: RMB | ||||||||||||||||||
Item | Closing balance | Opening balance | ||||||||||||||||
Dividends receivable | 73,370,239.20 | 4,989,960.00 | ||||||||||||||||
Others | 45,152,495.18 | 46,209,939.50 | ||||||||||||||||
Total | 118,522,734.38 | 51,199,899.50 | ||||||||||||||||
- 53 -
- Aging analysis of trade payables presented based on the invoice date
The aging analysis of accounts payable according to invoice date (close to posting date):
Unit: Yuan | Currency: RMB | ||||
Item | Closing balance | Opening balance | |||
Within 1 year | 825,793,476.81 | 956,748,644.72 | |||
More than 1 year but not exceeding 2 years | 163,170,131.13 | 208,579,349.74 | |||
More than 2 years but not exceeding 3 years | 16,482,719.96 | 25,156,000.45 | |||
More than 3 years | 38,412,326.72 | 71,930,824.63 | |||
Total | 1,043,858,654.62 | 1,262,414,819.54 | |||
Details of accounts payable are as follows | |||||
Unit: Yuan | Currency: RMB | ||||
Item | Closing balance | Opening balance | |||
Construction payable | 537,404,189.16 | 675,826,132.27 | |||
Construction payable for real estate project | 470,193,821.19 | 495,168,721.84 | |||
Purchase of petroleum payable | 2,008,191.30 | 7,591,687.90 | |||
Toll road fee payable | 7,470,172.18 | 23,751,404.00 | |||
Others | 26,782,280.79 | 60,076,873.53 | |||
Total | 1,043,858,654.62 | 1,262,414,819.54 | |||
(6) Disclosure of receipts in advance by nature | |||||
Unit: Yuan | Currency: RMB | ||||
Item | Closing balance | Opening balance | |||
Rental deposit received in advance | 4,900,373.76 | 9,088,946.35 | |||
Interest received in advance | 415,618.44 | - | |||
Others | 2,516,699.94 | 1,609,952.69 | |||
Total | 7,832,692.14 | 10,698,899.04 | |||
- 54 -
The aging analysis of receipts in advance is as follows:
Unit: Yuan | Currency: RMB | |||||||||||||
Closing balance | Opening balance | |||||||||||||
Aging | RMB | % | RMB | % | ||||||||||
Within 1 year | 7,832,692.14 | 100.00 | 7,331,042.70 | 68.52 | ||||||||||
More than 1 year but not | ||||||||||||||
exceeding 2 years | 3,367,856.34 | 31.48 | ||||||||||||
Total | 7,832,692.14 | 100.00 | 10,698,899.04 | 100.00 | ||||||||||
(7) Contract liabilities | ||||||||||||||
Contract liabilities | ||||||||||||||
Unit: Yuan | Currency: RMB | |||||||||||||
Item | Closing balance | Opening balance | ||||||||||||
Advertising release fee in advance | 245,455.99 | 326,140.20 | ||||||||||||
Sales of property in advance | 1,068,439,727.36 | 1,133,824,799.81 | ||||||||||||
Total | 1,068,685,183.35 | 1,134,150,940.01 | ||||||||||||
(8) Disclosure of other payables by nature | ||||||||||||||
Unit: Yuan | Currency: RMB | |||||||||||||
Item | Closing balance | Opening balance | ||||||||||||
Dividends payable | 2,424,642,363.88 | 97,197,529.87 | ||||||||||||
Others | 166,962,110.26 | 163,850,914.15 | ||||||||||||
Total | 2,591,604,474.14 | 261,048,444.02 | ||||||||||||
- 55 -
6.2.8 Other Current Liabilities | ||||
Unit: Yuan Currency: RMB | ||||
Item | Closing balance | Opening balance | ||
Ultra short term notes | 6,271,391,789.00 | 4,998,884,246.00 | ||
Output VAT to be transferred (Note) | 86,332,372.56 | 93,199,502.87 | ||
Total | 6,357,724,161.56 | 5,092,083,748.87 | ||
Note: Output VAT to be transferred mainly represents output VAT that has been collected together with the house
6.2.9 Credit Policy
In order to minimize the credit risk, the Group has determined credit limits, made credit approvals and took other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of financial assets at each balance sheet date to ensure that adequate provision for expected credit losses are made for financial assets. In this regard, the management of the Group considers that the Group's credit risk is significantly reduced.
6.2.10 Contingencies
Ninghu Properties Company and Hanwei Company, the subsidiaries of the Company provide joint and several liability guarantees to banks for bank borrowings granted to buyers of properties in accordance with real estate business practices. The obligation begins from the date on which the guarantee contract comes into effect and will end when the buyers obtain certifications of the purchased properties and complete registration of mortgage and pass the properties warrants certification to bank. As at 30 June 2020, the outstanding guarantees amounted to approximately RMB590,188,000.
The Company provided guarantee for the application of comprehensive credit line by Ninghu Factoring, a wholly-owned subsidiary of the Company, with a maximum balance of RMB810,000,000 in the form of joint and several liability guarantee for a term of one year; as at 30 June 2020, the balance of the guarantee was approximately RMB110,000,000.
- 56 -
6.2.11 Pledged Assets
- Explanation for restrictions on bank deposits
At the end of the Reporting Period, other monetary funds of the Group included customers' deposit for mortgage loans of RMB2,360,000 and regulated pre-sale proceeds of RMB65,209,000. The regulated pre-sale proceeds are project funds placed in escrow with banks as required by Nanjing Bureau of Housing and Urban-Rural Development ( 南 京 市 住 房 和 城 鄉 建 设 局) for the purpose of facilitating the smooth development of property projects and strengthening the supervision of monetary capital for property development projects. Project capital must be paid in full into banks before applications for construction permits are made. Developers shall release the project deposits by tranches depending on the construction progress. The remaining project deposits shall be released upon the completion of the construction and delivery of the units.
(2) Explanation for restrictions on intangible assets
Guangjing Xicheng Company, a subsidiary of the Group, entered into a loan contract with Wuxi branch of Industrial and Commercial Bank of China in respect of a loan of RMB1,200,000,000 in aggregate, which was secured by the toll road concession right of Guangjing Expressway. As at the end of the Reporting Period, the loan balance amounted to RMB581,000,000.
Zhendan Company, a subsidiary of the Group, entered into a loan contract with each of Jiangsu Branch of Communications Bank, Zhongshan South Road Sub-branch of China Construction Bank and Gulou Sub-branch of Postal Saving Bank of China in respect of a total loan amount of RMB139,650,000, RMB600,000,000 and RMB230,000,000,respectively, which were secured by the toll road concession right of Zhendan Expressway. As at the end of the Reporting Period, the loan balance amounted to RMB135,450,000, RMB500,000,000 and RMB97,756,000, respectively.
- 57 -
6.2.12 Segment Reporting
(1) Determining basis and accounting policy of reporting segment
Based on the Group's internal organization structure, management requirements and internal reporting system, the operations of the Group are classified into 12 operating segments. The Group's management periodically evaluates the operating results of these reporting segments to make decisions about resources to be allocated to the segments and assess their performance. On the basis of the operating segment, the Group determines 12 reporting segments (2019: 12) based on the standard with which the Group's management determines resources allocation and performance assessment, including Shanghai-Nanjing Expressway, Guangjing Expressway and Xicheng Expressway, Xiyi Expressway and Wuxi Huantaihu Expressway, Ningchang Expressway and Zhenli Expressway, Zhendan Expressway, Wufengshan Expressway, Changyi Expressway, Yichang Expressway, Longtan Bridge, Ancillary services (including petrol, food and retail in service zones along the expressways), Real estate development and advertising and others. These reporting segments are determined based on standards of resources allocation and performance assessment by the management.
Segment information is disclosed in accordance with the accounting policies and measurement criteria adopted by each segment when reporting to management. The measurement criteria are consistent with the accounting and measurement criteria in the preparation of the financial statements.
- 58 -
- 59 -
(2) | Financial information of reporting segment | ||||||||||||||||||||||||||||||||||||||||||
Unit: Yuan | Currency: RMB | ||||||||||||||||||||||||||||||||||||||||||
Xiyi | |||||||||||||||||||||||||||||||||||||||||||
Guangjing | Expressway | Ningchang | |||||||||||||||||||||||||||||||||||||||||
Shanghai- | Expressway | and Wuxi | Expressway | ||||||||||||||||||||||||||||||||||||||||
Nanjing | and Xicheng | Huantaihu | Changyi | Yichang | and Zhenli | Zhendan | Wufengshan | Longtan | Ancillary | Real estate | Advertising | Unallocated | |||||||||||||||||||||||||||||||
ITEM | Expressway | Expressway | Expressway | Expressway | Expressway | Expressway | Expressway | Bridge | Bridge | services | development | and others | items | Total | |||||||||||||||||||||||||||||
Segment operating income | 1,176,273,277.15 | 238,218,656.79 | 93,898,635.01 | - | - | 249,559,632.44 | 19,650,511.35 | - | - | 611,871,621.75 | 239,598,650.73 | 39,280,087.28 | 2,668,351,072.50 | ||||||||||||||||||||||||||||||
Operating costs | 643,622,193.65 | 111,470,130.86 | 101,726,699.57 | - | - | 317,048,082.41 | 23,168,281.86 | - | - | 525,002,197.70 | 110,236,786.05 | 27,015,850.09 | 1,859,290,222.19 | ||||||||||||||||||||||||||||||
Including: Amortization of toll roads | |||||||||||||||||||||||||||||||||||||||||||
operation rights | 287,233,503.50 | 60,542,922.89 | 61,467,464.85 | - | - | 237,873,041.17 | 15,291,607.89 | - | - | 662,408,540.30 | |||||||||||||||||||||||||||||||||
Costs of petrol and other goods sold | |||||||||||||||||||||||||||||||||||||||||||
in service zones | - | - | - | - | 396,397,425.11 | 396,397,425.11 | |||||||||||||||||||||||||||||||||||||
Segment operating profit (loss) | 532,651,083.50 | 126,748,525.93 | -7,828,064.56 | - | - | -67,488,449.97 | -3,517,770.51 | - | - | 86,869,424.05 | 129,361,864.68 | 12,264,237.19 | 809,060,850.31 | ||||||||||||||||||||||||||||||
Reconciling items: | |||||||||||||||||||||||||||||||||||||||||||
Less: Taxes and levies | 4,234,583.80 | 857,587.16 | 338,035.09 | - | - | 898,414.68 | 70,741.84 | - | - | 4,925,345.53 | 26,779,640.26 | 1,154,004.85 | 39,258,353.21 | ||||||||||||||||||||||||||||||
Selling expenses | - | - | 8,977,337.47 | 8,977,337.47 | |||||||||||||||||||||||||||||||||||||||
Administrative expenses | 36,673,012.64 | - | - | - | - | 37,158,398.04 | 73,831,410.68 | ||||||||||||||||||||||||||||||||||||
Financial expenses | - | - | - | - | 256,387,221.40 | 256,387,221.40 | |||||||||||||||||||||||||||||||||||||
Add: Other income | 6,428,305.34 | 532,369.58 | - | - | 1,157,610.51 | - | - | 216,411.69 | 1,052,745.12 | 9,387,442.24 | |||||||||||||||||||||||||||||||||
Investment income | - | - | - | - | 147,761,973.92 | 147,761,973.92 | |||||||||||||||||||||||||||||||||||||
Gains or losses from changes in fair | |||||||||||||||||||||||||||||||||||||||||||
values | - | - | - | - | 50,461,176.80 | 50,461,176.80 | |||||||||||||||||||||||||||||||||||||
Impairment reversals (losses) of credit | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Impairment loss of assets | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Gains(losses) from disposal of assets | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Operating profit | 498,171,792.40 | 126,423,308.35 | -8,166,099.65 | - | - | -67,229,254.14 | -3,588,512.35 | - | - | 81,944,078.52 | 93,821,298.64 | 11,110,232.34 | -94,269,723.60 | 638,217,120.51 | |||||||||||||||||||||||||||||
Non-operating income | - | - | - | - | - | 29,557,223.53 | 29,557,223.53 | ||||||||||||||||||||||||||||||||||||
Non-operating expenses | - | - | - | - | - | 9,752,929.55 | 9,752,929.55 | ||||||||||||||||||||||||||||||||||||
Total profit | 498,171,792.40 | 126,423,308.35 | -8,166,099.65 | - | - | -67,229,254.14 | -3,588,512.35 | - | - | 81,944,078.52 | 93,821,298.64 | 11,110,232.34 | -74,465,429.62 | 658,021,414.49 | |||||||||||||||||||||||||||||
Income tax expenses | - | - | - | - | - | 173,933,369.86 | 173,933,369.86 | ||||||||||||||||||||||||||||||||||||
Net profit | 498,171,792.40 | 126,423,308.35 | -8,166,099.65 | - | - | -67,229,254.14 | -3,588,512.35 | - | - | 81,944,078.52 | 93,821,298.64 | 11,110,232.34 | -248,398,799.48 | 484,088,044.63 | |||||||||||||||||||||||||||||
Total segment assets | 9,747,854,363.36 | 970,725,631 | 1,755,319,555 | 3,425,507,521.18 | 2,802,072,750.02 | 5,042,773,636.17 | 1,676,405,741.58 | 10,318,143,324.72 | 1,363,937,347.56 | 377,520,573.65 | 4,401,857,711.68 | 2,006,296,591.04 | 14,490,502,981.52 | 58,378,917,728.48 | |||||||||||||||||||||||||||||
Segment profit represents the gross profit earned by each segment without allocation of finance costs, investment income, profit or loss from changes in fair value and administrative expenses. This is the measure reported to the Group's chief operating decision maker for the purpose of resource allocation and assessment of segment performance.
For the purposes of monitoring segment performances and allocating resources between segments, assets are allocated to segments other than long-term equity investment, held-for-trading financial assets and cash and bank balances etc., Segment liabilities are not allocated to segments for the Group's decision-maker has not consider liabilities of each segment when making decisions.
6.2.13 Events after the Balance Sheet Date
1. Investment in Luode Parent Real Estate Fund
On 24 April 2020, upon the approval of the 20th meeting of the 9th board of directors of the Company, Ninghu Investment Company, a wholly-owned subsidiary of the Company was approved to participate in the Phase III Parent Real Estate Fund initiated by Luode Fund Company, with the fund's scale no more than RMB1.5 billion in aggregate, including a contribution from Ninghu Investment Company of no more than RMB500 million and contribution from other partners and teams of no more than RMB1 billion. As of the disclosure date of this announcement, Ninghu Investment Company has contributed RMB251,876,564.00.
2. Approval for Registration of Public Issuance of Corporate Bonds to Professional Investors
On 30 July 2020, the Company received the "Approval on the Public Issuance of Corporate Bonds to Professional Investors by Jiangsu Expressway Company Limited" (Zheng Jian Xu Ke [2020] No. 1635) issued by the CSRC, which approved the application for registration of the Company's public issuance of corporate bonds not exceeding RMB8 billion to professional investors. The issue of the first tranche shall be completed within 12 months from the date of approval; the issue of the remaining tranches shall be completed within 24 months from the date of approval.
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3. Registration of Medium-term Notes
On 14 August 2020, the Company's medium-term notes issue with principal amount of not more than RMB2 billion has been registered by the National Association of Financial Market Institutional Investors, with a registration term of 2 years. On 21 August 2020, the Group completed the issue of the medium-term notes with principal amount of RMB2.0 billion.
6.3 Financial statement related matters
6.3.1 Details, reasons and impact of the changes to the accounting policies, accounting estimates and audit methods compared with those in the last accounting period
Due to changes in the road network charging model in 2020, in order to more objectively and fairly reflect the amortized cost of road and bridge assets, as approved by the twentieth meeting of the ninth session of the board of directors of the Company, the Company has taken the standard car flow translated by the new toll standard as the basis for the amortization of highway operation rights since 1 January 2020. In the first half of 2020, the impact on the amortization of highway operation rights within the scope of the Company's consolidation amounted to RMB-42.54 million, which reduced operating costs by RMB42.54 million. If this change in accounting estimates were adopted in 2019, it is expected that the Company's amortization of road operating rights in 2019 would be increased by RMB5.6532 million and its operating costs would be increased by RMB5.6532 million.
6.3.2 Particulars, correction amount, reasons and its impact of significant accounting errors which required to be amended by retrospective restatement during the Reporting Period.
Applicable ✓ Not applicable
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DEFINITION
Unless the context herein otherwise requires, the following terms shall have the meanings as follows:
DEFINITIONS OF COMMONLY USED TERMS
Company | Jiangsu Expressway Company Limited ( 江 蘇 寧 滬 高 速 |
公 路 股 份 有 限 公 司) | |
Group | the Company and its subsidiaries |
Controlling Shareholder, | Jiangsu Communications Holding Company Limited( 江 蘇 |
Communications | 交 通 控 股 有 限 公 司) |
Holding, or Jiangsu | |
Communications Holding | |
China Merchants | China Merchants Expressway Network & Technology |
Expressway Network | Holdings Co., Ltd. ( 招 商 局 公 路 網 絡 科 技 控 股 股 份 |
有 限 公 司) | |
Ningchang Zhenli | Jiangsu Ningchang Zhenli Expressway Company |
Company | Limited( 江 蘇 寧 常 鎮 溧 高 速 公 路 有 限 公 司) |
Ninghu International | Jiangsu Expressway International (Hong Kong) Company |
Company | Limited |
Yangtze River | Jiangsu Yangtze River Expressway Management Co.,Ltd. |
Management Company | ( 江 蘇 揚 子 江 高 速 通 道 管 理 有 限 公 司) |
Ninghu Investment | Jiangsu Ninghu Investment Development Co., Ltd. ( 江 蘇 |
Company | 寧 滬 投 資 發 展 有 限 責 任 公 司) |
Ninghu Factoring | Ninghu Commercial Factoring (Guangzhou) Co., Ltd. ( 寧 |
滬 商 業 保 理(廣 州)有 限 公 司) | |
Ninghu Properties | Jiangsu Ninghu Properties Co., Ltd. ( 江 蘇 寧 滬 置 業 有 |
Company | 限 責 任 公 司) |
Hanwei Company | Nanjing Hanwei Property Development Company Limited |
( 南 京 瀚 威 房 地 產 開 發 有 限 公 司) | |
Guangjing Xicheng | Jiangsu Guangjing Xicheng Expressway Company Limited |
Company | ( 江 蘇 廣 靖 錫 澄 高 速 公 路 有 限 責 任 公 司) |
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Zhendan Company | Jiangsu Zhendan Expressway Company Limited ( 江 蘇 鎮 |
丹 高 速 公 路 有 限 公 司) | |
Wufengshan Toll Bridge | Jiangsu Wufengshan Toll Bridge Company Limited ( 江 |
Company | 蘇 五 峰 山 大 橋 有 限 公 司) |
Longtan Bridge Company | Jiangsu Longtan Bridge Co., Ltd. ( 江 蘇 龍 潭 大 橋 有 限 |
公 司) | |
Xiexin Company or Xiexin | Jiangsu Xiexin Ninghu Gas Co., Ltd. ( 江 蘇 協 鑫 寧 滬 天 |
Ninghu Company | 然 氣 有 限 公 司) |
Kuailu Company | Jiangsu Kuailu Motor Transport Co., Ltd. ( 江 蘇 快 鹿 汽 |
車 運 輸 股 份 有 限 公 司) | |
Suzhou Expressway | Suzhou Expressway Management Company Limited ( 蘇 |
Company or Suzhou | 州 市 高 速 公 路 管 理 有 限 公 司) |
Expressway Management | |
Yangtze Bridge Company | Jiangsu Yangtze Bridge Co., Ltd. ( 江 蘇 揚 子 大 橋 股 份 |
有 限 公 司) | |
Hutong Bridge Company | Jiangsu Hutong Bridge Co., Ltd.(江 蘇 滬 通 大 橋 有 限 |
責 任 公 司) | |
Finance Company or | Jiangsu Communications Holding Group Finance Co., Ltd. |
Group Finance Company | ( 江 蘇 交 通 控 股 集 團 財 務 有 限 公 司) |
Media Company | Jiangsu Communications & Culture Media Company |
Limited ( 江 蘇 交 通 文 化 傳 媒 有 限 公 司) | |
Sundian or Xiandai R&B | Jiangsu Sundian Engineering Co., Ltd. ( 江 蘇 現 代 路 橋 |
Company | 有 限 責 任 公 司) |
Network Operation | Jiangsu Expressway Network Operation and Management |
Company | Co., Ltd. ( 江 蘇 高 速 公 路 聯 網 營 運 管 理 有 限 公 司) |
Bank of Jiangsu | Bank of Jiangsu Co., Ltd. ( 江 蘇 銀 行 股 份 有 限 公 司) |
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Luode Fund Company | Jiangsu Luode Equity Investment Fund Management |
Company Limited ( 江 蘇 洛 德 股 權 投 資 基 金 管 理 有 | |
限 公 司) | |
Yichang Company | Jiangsu Yichang Expressway Co., Ltd. ( 江 蘇 宜 長 高 速 |
公 路 有 限 公 司) | |
Changyi Company | Jiangsu Changyi Expressway Co., Ltd. ( 江 蘇 常 宜 高 速 |
公 路 有 限 公 司) | |
Nanlin Hotel | Suzhou Nanlin Hotel Co., Ltd. ( 蘇 州 南 林 飯 店 有 限 責 |
任 公 司) | |
Yanjiang Company | Jiangsu Yanjiang Expressway Co., Ltd. ( 江 蘇 沿 江 高 速 |
公 路 有 限 公 司) |
Jiangsu Leasing or Jiangsu Jiangsu Financial Leasing Co., Ltd. ( 江 蘇 金 融 租 賃 股
Financial Leasing | 份 有 限 公 司) |
Company | |
Railway Group Company | Jiangsu Railway Group Limited ( 江 蘇 省 鐵 路 集 團 有 限 |
公 司) | |
Tongxingbao Company | Jiangsu Tongxingbao Smart Transport Technology Co., |
Ltd. ( 江 蘇 通 行 寶 智 慧 交 通 科 技 股 份 有 限 公 司) | |
Jinghu Company | Jiangsu Jinghu Expressway Company Limited ( 江 蘇 京 滬 |
高 速 公 路 有 限 公 司) | |
Runyang Bridge Company Jiangsu Runyang Bridge Development Co., Ltd. ( 江 蘇 潤 | |
揚 大 橋 發 展 有 限 責 任 公 司) | |
Expressway Petroleum | Jiangsu Expressway Petroleum Development Co., Ltd. ( 江 |
Company or Jiangsu | 蘇 高 速 公 路 石 油 發 展 有 限 公 司) |
Petroleum Company | |
Taixing Oil Products | Taixing Hechang Oil Products Trading Co., Ltd. ( 泰 興 市 |
Company | 和 暢 油 品 銷 售 有 限 公 司) |
Far East Shipping | Jiangsu Far East Shipping Co., Ltd. ( 江 蘇 遠 東 海 運 有 |
Company | 限 公 司) |
Information Company | Jiangsu Expressway Information Engineering Co.,Ltd. ( 江 |
蘇 高 速 公 路 信 息 工 程 有 限 公 司) |
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Maintenance Technology | Jiangsu Expressway Engineering Maintenance Technology |
Company | Co., Ltd. ( 江 蘇 高 速 公 路 工 程 養 護 技 術 有 限 公 司) |
Engineering Maintenance | Jiangsu Expressway Engineering Maintenance Company |
Company | Limited ( 江 蘇 高 速 公 路 工 程 養 護 有 限 公 司) |
Orient Operation Company Jiangsu Orient Expressway Operation and Management | |
Company Limited ( 江 蘇 東 方 高 速 公 路 經 營 管 理 有 | |
限 公 司) | |
East Road & Bridge | Jiangsu East Road & Bridge Construction Maintenance |
Company | Co., Ltd. ( 江 蘇 東 方 路 橋 建 設 養 護 有 限 公 司) |
Sujiahang Company | Suzhou Sujiahang Expressway Co., Ltd. ( 蘇 州 蘇 嘉 杭 高 |
速 公 路 有 限 公 司) | |
Real Estate Parent Fund | Phase II of Real Estate Investment Parent Fund ( 房 地 產 |
Phase II | 投 資 母 基 金 二 期) |
Luode Dening | Nanjing Luode Dening Real Estate Investment Partnership |
(Limited Partnership) ( 南 京 洛 德 德 寧 房 地 產 投 資 合 | |
夥 企 業(有 限 合 夥)) | |
Zhongbei Zhiyuan | Nanjing Luode Zhongbei Zhiyuan Equity Investment |
Partnership (Limited Partnership) ( 南 京 洛 德 中 北 致 遠 | |
股 權 投 資 合 夥 企 業(有 限 合 夥)) | |
Highway Center | Highway Development Center of Transportation |
Department of Jiangsu Province ( 江 蘇 省 交 通 運 輸 廳 | |
公 路 事 業 發 展 中 心) | |
Expressway Management | E x p r e s s w a y O p e r a t i o n a n d M a n a g e m e n t C e n t e r |
Center | Department of Jiangsu Province ( 江 蘇 省 高 速 公 路 經 |
營 管 理 中 心) | |
Ninghang Company | Jiangsu Ninghang Expressway Co., Ltd. ( 江 蘇 寧 杭 高 速 |
公 路 有 限 公 司) | |
Husuzhe Company | Jiangsu Husuzhe Expressway Co., Ltd. ( 江 蘇 滬 蘇 浙 高 |
速 公 路 有 限 公 司) | |
Huatong Company | Jiangsu Huatong Engineering Testing Co., Ltd. ( 江 蘇 華 |
通 工 程 檢 測 有 限 公 司) |
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Sutong Bridge Company | Jiangsu Sutong Bridge Co., Ltd. ( 江 蘇 蘇 通 大 橋 有 限 |
公 司) | |
Xinhua Media | Jiangsu Xinhua Newspaper Media Group Co., Ltd.( 江 蘇 |
新 華 報 業 傳 媒 集 團 有 限 公 司) | |
Fuanda Fund | Fuanda Fund Management Co., Ltd. ( 富 安 達 基 金 管 理 |
有 限 公 司) | |
Engineering Testing | Sundian Engineering Testing Co., Ltd. ( 現 代 工 程 檢 測 |
Company | 有 限 公 司) |
Micro Video Company | Nanjing Micro Video Technology Company Limited ( 南 |
京 感 動 科 技 有 限 公 司) | |
CDB Kai Yuan Phase II | Suzhou Industrial Park CDB Kai Yuan Investment Center |
Fund | Phase II (Limited Partnership) ( 蘇 州 工 業 園 區 國 創 開 |
元 二 期 投 資 中 心(有 限 合 夥)) | |
Hanrui Center | Plot No. 2 Complex Project located in the central business |
district of new city in the south of Nanjing | |
Shanghai-Nanjing | Jiangsu Section of Shanghai-Nanjing Expressway |
Expressway | |
Guangjing Expressway | Northern connection of Guangling-Jingjiang Section, |
Jiangyin Yangtze Bridge | |
Xicheng Expressway | Southern connection of Jiangyin-Wuxi Section, Jiangyin |
Yangtze Bridge | |
Jiangyin Bridge | Jiangyin Yangtze Bridge |
Sujiahang Expressway | Jiangsu Section of Suzhou-Jiaxing-Hangzhou Expressway |
Yanjiang Expressway | Changzhou-Taicang Expressway |
Changjia Expressway | K u n s h a n - W u j i a n g S e c t i o n o f C h a n g s h u - J i a x i n g |
Expressway | |
Zhendan Expressway | Zhenjiang-Danyang Expressway |
Ningchang Expressway | Lishui Guizhuang Hub-Changzhou South Interchange |
Expressway |
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Zhenli Expressway | Dantu Hub-Liyang Qianma Hub Expressway |
Xiyi Expressway | Wuxi North Hub-Yixing Xiwu Hub Expressway |
Wuxi Huantaihu | Wuxi Shuofang Hub - Wuxi Nanquan Interchange |
Expressway | Expressway |
Sujiayong Expressway | Suzhou-Jiaxing-Ningbo Expressway |
Wufengshan Toll Bridge | Wufengshan Toll Bridge and North-South Connection |
Project | |
Changyi Expressway | Changzhou-Yixing Expressway |
Yichang Expressway | Jiangsu Section of Yixing-Changxing Expressway |
Reporting Period | the half year period from 1 January 2020 to 30 June 2020 |
year-on-year | as compared with the same period of 2019 |
CSRC | China Securities Regulatory Commission |
SFC | The Securities and Futures Commission of Hong Kong |
SSE | Shanghai Stock Exchange |
Stock Exchange | The Stock Exchange of Hong Kong Limited |
A Shares | RMB-denominated ordinary shares issued by the Company |
and listed on the SSE | |
H Shares | overseas-listed foreign shares issued by the Company and |
listed on the Stock Exchange | |
ADR | Level 1 depositary receipts of the Company listed and |
traded in the over-the-counter market of the United States | |
Listing Rules | Listing Rules of the SSE and/or Hong Kong Listing Rules |
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Listing Rules of SSE | Rules Governing the Listing of Stocks on Shanghai Stock |
Exchange | |
Hong Kong Listing Rules | Rules Governing the Listing of Securities on The Stock |
Exchange of Hong Kong Limited |
PRC Accounting Standards Accounting Standards for Business Enterprises and Relevant Provisions promulgated by the Ministry of Finance of the People's Republic of China
Deloitte or Auditor | Deloitte Touche Tohmatsu Certified Public Accountants |
LLP | |
Corporate Governance | The Corporate Governance Code set out in Appendix 14 to |
Code | the Hong Kong Listing Rules |
By order of the Board
Sun Xibin
Chairman
Nanjing, the PRC, 28 August 2020
As at the date of this announcement, the Directors of the Company are: Sun Xibin, Cheng Xiaoguang, Chen Yanli, Chen Yongbing, Yao Yongjia, Wu Xinhua, Hu Yu, Ma Chung Lai, Lawrence, Zhang Zhuting*, Chen Liang*, Lin Hui*, Zhou Shudong*, Liu Xiaoxing*
- Independent Non-executive Directors of the Company
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Jiangsu Expressway Co. Ltd. published this content on 28 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 August 2020 14:23:15 UTC