Qilu Expressway Company Limited (Qilu Expressway, 01576) reported interim results for the six months ended 30 June 2026, highlighting resilient top-line growth but a modest decline in earnings.
Financial Highlights • Revenue reached RMB 1.11 billion, up 4.25% year on year, driven by a 32.47% jump in construction-related income to RMB 0.32 billion, which offset softer toll collections. • Expressway Business revenue slipped 4.12% to RMB 0.79 billion as Jihe Expressway tolls fell 2.70% to RMB 0.59 billion and Deshang & Shennan Expressways declined 8.21% to RMB 0.19 billion. • Gross profit decreased 4.54% to RMB 0.40 billion; gross margin narrowed to 35.65% from 38.94%, reflecting higher industrial product costs and lower toll income. • Profit attributable to shareholders edged down 3.09% to RMB 0.19 billion; basic EPS stood at RMB 0.09 (1H25: RMB 0.10). • No interim dividend was declared; the RMB 240.00 million final dividend for FY25 (RMB 0.120 per share) was approved on 26 June 2026 but remained unpaid at period-end.
Operational Metrics • Average daily traffic: Jihe Expressway 77,300 vehicles (+0.65%), Deshang 45,100 (-3.43%), Shennan 10,700 (+30.49%). • Toll revenue was pressured by the temporary closure of the Changqing–Beijing-Taipei interchange and traffic diversion following the opening of Dongyang Expressway. • Construction revenue benefitted from the steady ramp-up of the wind-power hybrid tower project and ongoing Jihe Expressway reconstruction and expansion (R&E) works, which contributed RMB 27.79 million during the period. • Rental income rose 15.54% to RMB 2.74 million, aided by the resumption of billboard operations along the upgraded Jihe Expressway.
Balance Sheet and Liquidity • Cash and cash equivalents increased to RMB 602.39 million (31 Dec 2025: RMB 229.45 million). • Total interest-bearing bank borrowings stood at RMB 11.08 billion, largely floating-rate and RMB-denominated; gearing ratio was 62.92% (31 Dec 2025: 63.21%). • Net assets were RMB 6.36 billion; total assets less current liabilities reached approximately RMB 17.14 billion. • No asset pledges beyond the existing toll-right collateral on Deshang (RMB 1.91 billion) and Shennan (RMB 0.71 billion) expressways; no material contingent liabilities or post-period events were reported.
Outlook Management targets “high-quality operational development,” prioritising: 1. Strengthening expressway operations to stabilise toll income. 2. Accelerating construction projects and emerging industrial ventures to diversify revenue. 3. Enhancing cost control and efficiency, supported by technology-driven initiatives. 4. Deepening internal reforms to unlock workforce productivity. 5. Maintaining rigorous risk management and safety oversight.
The company intends to leverage available banking facilities and internal resources to meet funding needs and continue expanding its diversified infrastructure and industrial activities.