Overview

Anhui Expressway Company (SEHK:995) is principally engaged in holding, operation and development of toll expressways and highways in Anhui province. Currently, the Company owns 4 expressways and 1 Class One highway, there are Hening Expressway, Gaojie Expressway, Xuanguang Expressway, Lianhuo Expressway Anhui Section and New Tianchang Section of National Trunk 205, most of which are the national east-west ways. The Company plays an important role in road transportation in Anhui Province as well as in the PRC.1

The Company was incorporated on 15 August 1996 as a joint stock limited company in Anhui Province, the PRC, and is the first PRC highway company listed in Hong Kong. It is also the only listed highway company in Anhui Province. On 13 November 1996, 493.01 million of H shares issued by the Company were listed on The Stock Exchange of Hong Kong Limited. On 7 January 2003, 250 million of A Shares issued by the Company were listed on Shanghai Stock Exchange. As at 30 June 2019, the total share capital of the Company is 1,658,610,000 shares, each with a face value of RMB 1.

Currently, the Company holds the entire interests in Hening Expressway, New Tianchang Section of National Trunk 205 and Lianhuo Expressway Anhui Section. The Company also holds 55.47% interests in Xuanguang Expressway Company Limited; 51% interests in Gaojie Expressway Company Limited; 65% interests in Kangcheng Pharmaceutical Company Limited; 38% interests in Anhui Expressway Advertisement Company Limited and 18% interests in Hefei Information Investment Company Limited.

Future plan

In the future period, the Company will adopt the development strategy of intension development combined with extension expansion:

The Company makes use of its accumulated vocation management experience to fully develop the internal growth potential of the Company, reduce the operating cost and improve the inherent competitive ability on the base of the existing road service quality.

The Company grasps the opportunities and expands its operating scale of core business through constant acquisition of good-quality expressways to improve the Company ' s economic effect and enhance the Company ' s overall strength.

Rapid development in the economy of the State and Anhui Province, the growth in the number of the vehicle ownership and road mileage of the highways and the road network effect ' s taking shape, provided a comprehensive and beneficial environment for the operation of the Company. The Company will grasp the opportunity to make it have vivid core business, stable operations, perfect corporate governance structure and good management level and provide satisfactory return to all the shareholders.

Structures of the Group

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Financial highlight

The reconstruction and expansion of Hening Expressway advanced orderly. 2019 is a year for the reconstruction and expansion of Hening Expressway project to fully accelerate towards completion. During the Reporting Period, constructions such as subgrade, surface, security and ancillary works have been safely, orderly and comprehensively progressed as scheduled, and the double-run was implemented on the temporary full single-line four-lane surface. During the Reporting Period, the project had completed investment of RMB498 million, with a total completed investment of RMB2,428 million.

Toll management has been steadily improved. The toll revenue during the Reporting Period reached RMB1.397 billion (pre-tax), with an average daily total revenue of RMB7.7172 million, representing a growth of 1.51% year on year. Among them, electronic payment amounted to RMB772 million, accounting for 55.28% of the total toll revenue, representing a growth of 11.89% year on year. Toll stations at provincial border are being withdrawn orderly. The Company formulated the plan for toll stations between provinces withdrawal, researched and interviewed the toll standards and the exemption policies of neighboring provinces and studied the change in calculation of toll for trucks and participated in the revision of the standards and policies of toll. The Company planned the establishment of software and hardware system and staff re-designation for ensuring stable transition following cancellation of toll stations at provincial border.

For the six month ended June 30, 0219, In accordance with HKAS, the Group achieved a revenue of RMB1,965,648 thousand (corresponding period in 2018: RMB1,760,879 thousand), representing an increase of 11.63% compared with that of the corresponding period of last year; profit before income tax was RMB757,664 thousand (corresponding period in 2018: RMB762,088 thousand), representing a decrease of 0.58% compared with that of the corresponding period of last year; unaudited profit attributable to owners of the Company was RMB543,667 thousand (corresponding period in 2018: RMB551,381 thousand), representing a decrease of 1.40% compared with that of the corresponding period of last year; basic earnings per share was RMB0.3278 (corresponding period in 2018: RMB0.3324), representing a decrease of 1.38% compared with that of the corresponding period of last year.2

Recent developments

on 23 December 2019, Jiangsu Expressway, Sichuan Expressway and Anhui Expressway are pleased to announce that, the Consortium Members, being China Merchants Expressway, CMU, Zhejiang Expressway, Jiangsu Expressway, Sichuan Expressway and Anhui Expressway, entered into the Cooperation Agreement for the formation of the Joint Venture through joint contribution for the purpose of acquiring 51% of the shares and the relevant portion of shareholder loans of the Target Companies.

Pursuant to the Cooperation Agreement, the total amount of capital to be injected into the Joint Venture by the Consortium Members shall be US$688.5 million (equivalent to approximately HK$5,369.1 million). The Consortium Members, through their respective wholly owned subsidiaries incorporated in Hong Kong, will contribute approximately US$213.4 million, US$137.7 million, US$120.5 million, US$120.5 million, US$48.2 million and US$48.2 million in the Joint Venture, respectively, holding 31%, 20%, 17.5%, 17.5%, 7% and 7% of the equity interest in the Joint Venture, respectively.

Reasons for the Transaction and Expected Benefits

The boards of directors of Jiangsu Expressway, Sichuan Expressway and Anhui Expressway see the Transaction as a significant business opportunity for their respective groups. Participation in the Transaction will enable the Consortium Members to optimize their allocation of resources as well as perfection of their strategic deployment. The Transaction offers the Consortium Members the opportunity to combine with strong partners, benefiting from the Seller’s deep expertise in operation, management and development of expressways in Turkey and economies of scale arising from the Transaction.

http://www.anhui-expressway.net/en/upload/2019-12/157715241220844800.pdf

References

  1. ^ http://www.anhui-expressway.net/en/info_101101.html
  2. ^ http://www.anhui-expressway.net/en/upload/2019-09/156837114294912900.pdf
Tags: HK:995 HK:0995
Created by Asif F on 2020/03/09 10:53
     
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