Jiangsu Expressway Company (177) H1 2026 earnings summary

Executive summary

• Operating revenue for January–June 2026 was RMB9.29 billion, down 1.20% year-over-year; excluding construction revenue, core operating revenue rose 2.16% year-over-year, driven by toll income growth.

• Net profit attributable to shareholders reached RMB2.50 billion, up 3.28% year-over-year; EPS was RMB0.4969.

• Net cash flow from operating activities increased 9.94% year-over-year to RMB3.60 billion.

• Interim cash dividend of RMB0.25 per share proposed, totaling RMB1.26 billion, representing 50.31% payout ratio.

Financial highlights

• Toll income rose 5.76% year-over-year to RMB4.87 billion, accounting for 52.4% of total operating income.

• Gross profit margin for toll roads was 62.48%; overall gross margin (excluding construction) increased by 0.47 percentage points year-over-year.

• Ancillary services revenue fell 8.30% year-over-year, mainly due to lower oil product sales as new energy vehicles increased.

• Clean energy business revenue declined 9.17% year-over-year due to lower wind resources and market regulation.

• Real estate business revenue dropped 45.13% year-over-year due to fewer property deliveries.

Outlook and guidance

• Targeting a 16% three-year CAGR in operating income for 2025–2028.

• Plans to achieve 1.2GW cumulative installed clean energy capacity by end-2028.

• Period expense ratio to be kept below 5.5% for 2026–2028.

• Interim dividend mechanism introduced to enhance shareholder returns.