Sichuan Expressway (00107) released its unaudited interim results for the six months ended 30 June 2026.
Financial highlights • Revenue rose 12.55% year on year to RMB 4.89 billion, driven by a 106.40% surge in construction-services income to RMB 1.43 billion. • Profit attributable to shareholders inched up 1.96% to RMB 900.61 million; basic EPS increased to RMB 0.280 from RMB 0.275. • Gross profit slipped 1.0% to RMB 1.58 billion as the revenue mix shifted toward lower-margin construction activities. • Finance costs fell 1.83% to RMB 312.91 million, supporting a 2.3% rise in operating profit to RMB 1.48 billion. • No interim dividend was declared.
Segment performance • Expressway toll revenue declined 4.12% to RMB 2.43 billion amid traffic diversion to competing routes, high fuel prices and policy-driven toll discounts for trucks. • Construction-services revenue more than doubled, reflecting accelerated work on Chengle and Chengya expansion projects and the Tianqiong BOT expressway. • Transportation-services revenue (mainly oil-product sales and service-area operations) fell 7.94% to RMB 957.14 million. • New-energy services (EV charging and related sales) increased 33.76% to RMB 65.04 million.
Cash flow and balance sheet • Cash and cash equivalents dropped to RMB 1.50 billion from RMB 4.55 billion at end-2025, after sizeable project outlays and the RMB 2.41 billion acquisition of an 85% stake in Jingyi Expressway. • Operating activities recorded a net cash outflow of RMB 1.25 billion versus an inflow of RMB 297.52 million a year earlier, mainly due to higher construction spending and prepayments. • Total assets stood at RMB 67.28 billion; total liabilities were RMB 45.33 billion, putting the gearing ratio at 67.37% (end-2025: 64.45%). • Interest-bearing borrowings amounted to RMB 42.34 billion, 95% of which are bank loans with average cost of 2.72% per annum.
Project and corporate developments • Chengle Expansion: cumulative investment reached RMB 16.61 billion. • Tianqiong Expressway: fully opened in September 2024; cumulative investment RMB 7.30 billion. • Chengya Expansion: accumulated spending RMB 622 million since August 2025 launch. • Acquisition of Jingyi Expressway completed in March 2026, boosting controlled road assets and network scale. • Post-period, shareholders approved a private placement of up to 432.55 million A Shares to raise no more than RMB 3.18 billion for the Chengya Expansion and debt repayment, pending regulatory clearance.
Outlook and strategy Management will prioritise: 1) stabilising toll-road earnings while expediting key expansions; 2) expanding roadside green-energy and service-area businesses; 3) pursuing digital upgrades and cost-efficiency; 4) enhancing capital-market operations through innovative financing; 5) reinforcing risk controls and safety management.
No treasury-share transactions occurred during the period. The company affirms adherence to both Hong Kong and Shanghai corporate-governance codes and confirms all directors complied with the Model Code for securities dealings. The interim report will be available on the HKEX and company websites.