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MarketScreener Homepage  >  Equities  >  Hong Kong Stock Exchange  >  Jiangsu Expressway Company Limited    177   CNE1000003J5

JIANGSU EXPRESSWAY COMPANY LIMITED

(177)
  Report
End-of-day quote. End-of-day quote Hong Kong Stock Exchange - 02/26
9.01 HKD   -3.12%
2020JIANGSU EXPRESSWAY : Nine-Month Profit Plunges 47%
MT
2020JIANGSU EXPRESSWAY : to Lend Up to $75 Million to Subsidiary
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2020Jiangsu Expressway's Third-Quarter Net Profit Rose 10%
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Jiangsu Expressway : 2020 INTERIM RESULTS PRELIMINARY ANNOUNCEMENT

08/28/2020 | 10:23am EST

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

  1. 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.
  2. 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

  1. 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

  1. 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

Email

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.

  1. Business development
    1. 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.
    2. 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.

- 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:

  1. 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:

  1. 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:

  1. 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

  1. 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

  1. 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

  1. 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.

  2. 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).

  1. 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.
  1. 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.
  1. 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
  1. 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 -

  1. 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 -

  1. 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

  1. 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.
  2. 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.
  3. Dividend Arrangement Waived or Agreed by the Shareholders: During the Reporting Period, no dividend arrangement was waived by any of the shareholders.
  4. 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.

- 37 -

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 -

  1. 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.
  2. 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

  1. 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

  1. 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 "-")

-

-

  1. 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

  1. 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

  1. Notes receivable
    1. 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.

  1. Accounts receivable
    1. 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 -

  1. 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

  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 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.

- 60 -

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

- 61 -

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. (

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)

- 62 -

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 (

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 (

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)

- 63 -

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. (

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. (

蘇 高 速 公 路 信 息 工 程 有 限 公 司)

- 64 -

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)

- 65 -

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 (

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

- 66 -

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

- 67 -

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

- 68 -

Disclaimer

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


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Sales 2020 8 014 M 1 238 M 1 238 M
Net income 2020 2 539 M 392 M 392 M
Net Debt 2020 22 821 M 3 526 M 3 526 M
P/E ratio 2020 14,7x
Yield 2020 5,95%
Capitalization 44 677 M 6 902 M 6 902 M
EV / Sales 2020 8,42x
EV / Sales 2021 6,21x
Nbr of Employees -
Free-Float 33,4%
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Income Statement Evolution
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Mean consensus BUY
Number of Analysts 4
Average target price 9,38 CNY
Last Close Price 7,52 CNY
Spread / Highest target 37,2%
Spread / Average Target 24,7%
Spread / Lowest Target 11,1%
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Managers and Directors
NameTitle
Xiao Guang Cheng General Manager & Executive Director
Qian Dai Chief Financial Officer
Xibin Sun Chairman
Lan Ying Yu Chairman-Supervisory Board
Zhu Ting Zhang Independent Non-Executive Director