2024-03-15-深交所-粤高速Ｂ_2023年年度报告（英文版）_250页_1mb

Summary of Guangdong Provincial Expressway Development Co., Ltd. 2023 Annual Report

Core Content

Guangdong Provincial Expressway Development Co., Ltd. (referred to as "Guangdong Expressway") is a leading company in the expressway and bridge development and operation in Guangdong. The report covers the financial performance, management discussion, and key operational highlights for the year 2023, which ran from January 1, 2023, to December 31, 2023. The report was approved by the board of directors on March 15, 2024.

Main Financial Highlights

• Operating Income (Yuan): 4,879,066,948.19 (up 17.04% YoY)
• Net Profit Attributable to Shareholders (Yuan): 1,633,811,033.68 (up 28.01% YoY)
• Net Profit After Non-recurring Gains/Losses (Yuan): 1,705,099,801.05 (up 30.07% YoY)
• Cash Flow from Operating Activities (Yuan): 3,831,785,563.47 (up 39.24% YoY)
• Basic Earnings Per Share (Yuan/Share): 0.78 (up 27.87% YoY)
• Weighted Average ROE (%): 17.30% (up 3.00% YoY)
• Net Assets Attributable to Shareholders (Yuan): 9,847,531,855.89 (up 8.50% YoY)

Key Business Operations

• The company mainly operates toll highways and bridges, with toll revenue being the primary source of income.
• The toll pricing is subject to government approval, limiting the company's ability to adjust prices based on cost or market demand.
• The company's main business includes the tolling and maintenance of several key expressways, such as Guangfo Expressway, Fokai Expressway, Jingzhu Expressway Guangzhu Section, and Guanghui Expressway.
• As of the end of 2023, the company controls 306.78 km of expressways and participates in 295.88 km of expressways.

Core Competitiveness

• The toll revenue is heavily influenced by regional economic development, which provides a stable and growing demand.
• The company's expressways are part of key national and provincial planning, such as the "Five vertical and seven horizontal" and "Ten vertical and five horizontal" expressway networks, ensuring a strong traffic base.
• Guangdong's developed economy and high GDP growth contribute to the stability and growth of toll traffic and revenue.

Management Discussion & Analysis

• The company's management team focused on improving quality and efficiency through smart transportation and digital transformation.
• They strengthened investment management for reconstruction and expansion projects, promoted the quality and upgrading of service areas, and enhanced the reserve and research of high-quality projects.
• The traffic volume and toll revenue of most equity-holding and participating-in expressways increased YoY, except for Jiangzhong Expressway, which saw a decline due to the expansion project and surrounding road network changes.

Financial Performance by Quarter

Non-current Gains and Losses

• The non-current gains and losses for 2023 totaled -71,288,767.37 Yuan, with the main components including:
  • Non-current asset disposal gain/loss: 12,740,003.03 Yuan
  • Government subsidies: 10,685,002.61 Yuan
  • Gain/loss from fair value changes: 2,456,768.00 Yuan
  • Impairment provision reversal: 25,515.00 Yuan
  • Impairment provision for advance expenses: -123,358,138.31 Yuan
  • Other non-recurring gains/losses: 921,152.92 Yuan
  • Tax impact: -988,084.33 Yuan
  • Minor shareholders' equity impact: -30,770,056.69 Yuan

Key Definitions

• Reporting Period: January 1, 2023 to December 31, 2023
• Reporting Date: March 15, 2024
• YOY: Compared with 2022
• The Company: Guangdong Provincial Expressway Development Co., Ltd.
• Communication Group: Guangdong Communication Group Co., Ltd.
• Provincial Freeway: Guangdong Provincial Freeway Co., Ltd.
• Guangfo Company: Guangdong Guangfo Expressway Co., Ltd.
• Guangdong Expressway Capital: Yuegao Capital Investment (Guangzhou) Co., Ltd.
• Guanghui Company: Guangdong Guanghui Expressway Co., Ltd.
• Guangzhu East Company: Jingzhu Expressway Guangzhu Section Co., Ltd.

Accounting Policy Changes

• The company adjusted its accounting policies in accordance with the Ministry of Finance's No. 16 Interpretation of Accounting Standards for Business Enterprises (No. 31[2022]Cai Hui).
• The lower of the company's net profit before and after non-recurring gains and losses in the last three fiscal years is negative, indicating potential uncertainty in going concern ability.

Financial Documents

• The accounting statements are signed and sealed by the legal representative, General Manager, Chief Financial Officer, and the person in charge of the accounting department.
• The auditors' report is signed by Certified Public Accountants and sealed with their official seal.
• All public documents are disclosed on the designated newspapers and the CSRC website.

Company Profile

• Stock Abbreviation: Expressway A, Expressway B
• Stock Code: 000429, 200429
• Stock Exchange: Shenzhen Stock Exchange
• Registered Address: 85 Baiyun Road, Guangzhou, Guangdong Province
• Postal Code: 510100
• Office Address: 45-46/F, Litong Plaza, No.32, Zhujiang East Road, Zhujiang New City, Tianhe District, Guangzhou
• Postal Code: 510623
• Internet Website: www.gpedcl.com
• E-mail: ygs@gdchg.cn

Contact Information

• Board Secretary: Yang Hanming
• Securities Affairs Representative: Liang Jirong
• Contact Addresses and Telephone Numbers:
  • Board Secretary: 46/F, Litong Plaza, No.32, Zhujiang East Road, Zhujiang New City, Tianhe District, Guangzhou, 020-29004619
  • Securities Affairs Representative: 45/F, Litong Plaza, No.32, Zhujiang East Road, Zhujiang New City, Tianhe District, Guangzhou, 020-29004523
• Fax: 020-38787002
• E-mail: Hmy69@126.com and 139221590@qq.com

Conclusion

Guangdong Provincial Expressway Development Co., Ltd. has demonstrated strong financial performance in 2023, with a notable increase in operating income and net profit. The company's core business is toll highway and bridge management, and it benefits from the region's economic development and strategic infrastructure projects. Despite the constraints on toll pricing adjustments, the company has managed to maintain stable revenue growth, supported by its key expressway operations and continuous investment in smart transportation and digital transformation.