Zhejiang Expressway Co. Ltd. Class H · HKEX:576
Zhejiang Expressway Co. Ltd. Class H — FY2023 Earnings Presentation
27 slides from Zhejiang Expressway Co. Ltd. Class H's earnings presentation, 2024
Slide 1: 2023 Annual Results
2023 Annual Results Stock Code: 0576 Empowering with Intelligent Technology and Rebuilding Value
Slide 2: Agenda
Agenda 1 Result Highlights 2 Review of Operations 3 Outlook & Growth Strategies 4 Appendices
Slide 3: Result Highlights
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Slide 4: Result Highlights
Result Highlights 2022 Results Rmb ’000 2023 Restated %Change Revenue 16,965,024 15,331,777 10.7% -- Including: Interest income under effective interest method 2,452,400 2,390,436 2.6% Operating costs (9,765,685) (9,365,125) 4.3% Gross profit 7,199,339 5,966,652 20.7% Securities investment gains 1,0
Slide 5: Result Highlights – Revenue
Result Highlights– Revenue Revenue Revenue Breakdown Rmb million 18,000 16,641 16,965 16,000 15,332 14,000 12,943 12,724 Toll Road Business 12,000 10,000 61.4% Securities Business 8,000 37.6% 6,000 4,000 2,000 0 Other Business 1.0% Overall revenue for the Group was Rmb 16,965.02 million, an increase
Slide 6: Result Highlights – Net Profit
Result Highlights– Net Profit Net Profit Net Profit Breakdown Rmb million 7,000 6,622 5,980 6,303 Securities Business 6,000 28.9% 5,000 Toll Road Business 3,545 58.7% 4,000 2,955 3,000 2,000 1,000 Other Business 0 12.4% 2023 EPS (basic/diluted): Rmb 112.95 cents / Rmb 105.32 cents
Slide 7: Result Highlights – ROE & Dividend
Result Highlights– ROE & Dividend ROE Dividend % 20.0 40 37.5 37.5 35.5 35.5 32.0 16.7 16.8 17.3 18.0 16.0 16.0 30 14.0 12.0 10.0 8.8 20 8.0 6.0 4.0 10 2.0 0.0 0 2019 2020 2021 2022 2023 To provide shareholders with stable return in the long run
Slide 8: Review of Operations
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Slide 9: Economy Capital Review
Economy • China GDP growth: 5.2% • Zhejiang GDP growth: 6.0%. Zhejiang Province’s service sector grew strongly, consuming potential continued to unleash, and the scale of effective investment expanded. 2023 Market Capital Review Review • Global inflation remained high and difficult to alleviate, whi
Slide 10: Toll Road Business
Toll Road Business Various factors affected Positive factors: Negative factors: • The sluggish recovery of the world economy and the slowdown in global trade and investment has resulted in a weaker-than-expected recovery • After the easing of the pandemic prevention and control policy, in freight de
Slide 11: Toll Road Business – Daily Traffic Volume
Toll Road Business – Daily Traffic Volume Shanghai-Hangzhou-Ningbo Expressway Shangsan Expressway Average Full-trip Equivalents/day: 88,721 Average Full-trip Equivalents/day: 32,723 115000 50,000 2024 2024 31.8% 95000 19.5% 40,000 75000 2023 2023 30,000 55000 2022 2022 20,000 35000 15000 10,000 2021
Slide 12: Toll Road Business – Daily Traffic Volume
Toll Road Business – Daily Traffic Volume LongLiLiLong Expressways Average Full-trip Equivalents/day: 15,082 25,000 16.49% 20,000 2024 15,000 10,000 2023 5,000 2022 0 1 2 3 4 5 6 7 8 9 10 11 12 2021 Zhajiasu Expressway Average Full-trip Equivalents/day: 41,488 60,000 31.83% 40,000 2024 2023 20,000 2
Slide 13: Across the Pandemic
Across the Pandemic 2023 2019 %Change Total traffic volume 88,721 63,772 39.12% Passenger vehicles traffic volume 63,685 44,828 42.07% Truck traffic volume 25,036 18,944 32.16% Ratio of passenger vehicles to truck traffic volume 72:28 70:30 /
Slide 14: Toll Road Business Operation & Management
Toll Road Business Operation & Management 1 2 3 4 5 Completed the Piloted intelligent Completed the alleviation Actively advanced Achieved industrial transportation assurance patrol equipment of congestion on high- market-oriented implementation of services for the traffic sections measures to attra
Slide 15: Securities Business
Securities Business • During the Period, Zheshang Securities recorded total revenue of Rmb6,372.29 million, representing an increase of 4.8% year-on-year; • Commission and fee income increased 6.2% year-on-year to Rmb3,919.89 million, and interest income from the securities business was Rmb2,452.40
Slide 16: Other Business Hotel Operations Revenue
Other Business Hotel Operations Revenue Zhejiang Grand Hotel Grand New Century Hotel Rmb 41.76 million Rmb 82.32 Million Increase of Increase of 77.78% y-o-y 27.31% y-o-y
Slide 17: Long-term Investments
Long-term Investments Associate Joint Venture Zhejiang Zheshang Transform and Upgrade Fund of Funds Zhejiang Shaoxing Shengxin Expressway Co., Ltd. Partnership (Limited Partnership) • Daily traffic volume: increased 21.63% y-o-y to 29,986 in full-trip equivalents • Primarily engaged in equity invest
Slide 18: Investment, Mergers & Acquisitions
Investment, Mergers & Acquisitions Acquired 60% equity of Hunan Yonglan Expressway Co., Ltd (owning 145km Yonglan Expressway) • Further expanding its strategic layout in core highway locations Won the bid for investment in reconstruction and expansion projects of the Shaoxing section and Jinhua sect
Slide 19: Financing
Financing Financing Asset-Liability Ratio % 100.0 90.0 80.0 71.6 68.3 69.6 The Group has completed the H-share 70.0 65.5 63.2 and domestic share offering which was 60.0 oversubscribed, with the valid 50.0 applications and acceptances 40.0 30.0 representing approximately 614.63% of 20.0 the total num
Slide 20: Outlook & Growth Strategies
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Slide 21: Market Outlook
Market Outlook Looking ahead to 2024, with the introduction and implementation of various Market policies of ensuring stability in situation expectations, growth, and employment. Growth The overall traffic volume and It is expected that the Chinese toll revenue of the expressways economy will contin
Slide 22: Growth Strategies
Growth Strategies Profit-centered Brand-centered Service-centered • Initiate specific action plan to • Continue to expand the service • Leverage the function of reduce costs； essence of its business brand； intelligent expressways to predict and effectively • Improve quality and efficiency, • Acceler
Slide 23: Y ee
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Slide 24: Appendices
Y ee ZHEJIANG EXPRESSWAY CO., LTD. Appendices
Slide 25: Appendix I – Statement of Financial Position
Appendix I – Statement of Financial Position (Rmb million) 2022 %Change As at the end of the year 2023 Restated Bank balances, clearing settlement fund, deposits and cash 28,199.63 24,263.98 16.2% Financial assets at fair value through profit or loss 41,918.64 43,999.38 -4.7% Total assets 207,733.80
Slide 26: Appendix II – Organization Chart
Appendix II – Organization Chart As of 25 March 2024 Zhejiang Expressway Co., Ltd. 576.HK Zhoushan Co HangNing Co Wenzhou Huihang Co Hanghui Co Jinhua Co Zhajiasu Co Shangsan Co Shenjiahuhang YongTaiWen Co Co 100% 51% 100% 55% 51% 73.625% 30% 30% 15% Zheshang Zhijiang Yangtze Linping Co LongLiLiLong
Slide 27: Appendix III – Expressway Map of Zhejiang Province
Appendix III – Expressway Map of Zhejiang Province