CHINA MERCHANTS EXPRESSWAY NETWORK (001965) H2 2024 earnings summary

Executive summary

• Revenue reached ¥12.71 billion, up 30.62% year-over-year, driven by expanded investment and project consolidation.

• Net profit attributable to shareholders was ¥5.32 billion, down 21.35% year-over-year, mainly due to lower asset disposal gains and increased free passage days.

• Operating cash flow rose 60.46% year-over-year to ¥7.12 billion, reflecting improved cash generation.

• The company completed major M&A, including the acquisition of Road King China assets and the disposal of Anhui Bo-Fu Expressway via REITs.

Financial highlights

• Total assets at year-end were ¥159.17 billion, up 1.07% from the previous year.

• Net assets attributable to shareholders increased 9.49% to ¥71.23 billion.

• Basic EPS was ¥0.7681, down 27.22% year-over-year; weighted average ROE was 7.94%, down 3.47 percentage points.

• Gross margin for the investment operation segment was 41.87%; for traffic technology, 10.72%.

• Non-recurring gains totaled ¥464.73 million, mainly from the disposal of Bo-Fu Expressway.

Outlook and guidance

• 2025 revenue target is set at ¥12.5 billion, with a focus on digital transformation, cost control, and green development.

• The company will continue to optimize asset structure, promote REITs, and invest in digital and green infrastructure.

• Strategic focus remains on core expressway operations, technology innovation, and energy integration.