CHINA MERCHANTS EXPRESSWAY NETWORK (001965) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was ¥5.66 billion, down 5.36% year-over-year; net profit attributable to shareholders was ¥2.50 billion, down 7.56% year-over-year.

• Operating cash flow was ¥2.91 billion, down 3.64% year-over-year; basic EPS was ¥0.3684, down 4.49% year-over-year.

• Total assets reached ¥160.44 billion, up 0.80% from year-end 2024; net assets attributable to shareholders were ¥70.51 billion, down 1.01%.

• The company maintained a leading position in highway investment, technology, smart transportation, and ecological segments, with a total managed mileage of 14,865 km across 22 provinces.

Financial highlights

• Investment operation revenue was ¥4.48 billion, down 7.23% year-over-year; traffic technology revenue was ¥914.58 million, down 0.83%.

• Smart transportation revenue grew 24.39% to ¥151.90 million; traffic ecology revenue rose 5.47% to ¥118.84 million.

• Gross margin for investment operations was 40.22%, down 2.48 percentage points year-over-year.

• Investment income contributed ¥2.35 billion, accounting for 75.28% of total profit.

• R&D investment was ¥111.80 million, down 21.05% year-over-year.

Outlook and guidance

• The company will continue to focus on core highway assets, optimize cost control, and pursue high-quality growth in technology and ecological businesses.

• Plans include further expansion in Southeast Asia and continued digital and green transformation.

• No interim dividend, bonus shares, or capital reserve transfer planned for H1 2025.