Ninghu Expressway's overall performance in the first quarter showed a situation of &#34;significant revenue increase, slight profit decline,&#34; mainly affected by soaring construction business costs. The core asset, Hu-Ning Expressway, performed excellently, and the major project, Ningyang Yangtze River Bridge, was officially opened to traffic this year, helping the company expand its toll bridge main business.
On Monday evening, Ninghu Expressway announced its first-quarter financial report. Key points are as follows:
<ul>
<li>Significant Revenue Growth: Q1 achieved revenue of 4.782 billion yuan, a year-on-year increase of 37.66%, mainly driven by increased investment in toll bridge construction projects.</li>
<li>Slight Decline in Net Profit: Net profit attributable to shareholders was 1.211 billion yuan, a year-on-year decrease of 2.88%, mainly due to high construction business costs; net profit excluding non-recurring items was 1.195 billion yuan, a year-on-year increase of 0.63%.</li>
<li>Steady Performance in Main Business: Toll road business achieved revenue of 2.327 billion yuan, a year-on-year increase of 2.25%, affected by the expansion and reconstruction of the riverside expressway and adverse weather conditions in the same period last year.</li>
<li>Continued Expansion of Road Network Assets: The major project, Ningyang Yangtze River Bridge, is expected to officially open to traffic in January 2025, and the Ningyang North Connecting Line project is expected to be completed by the end of 2025.</li>
<li>Changes in Debt Structure: The total amount of long-term loans and bonds payable increased, indicating a stronger preference for long-term financing by the company.</li>
<li>Cash Flow Performance: The net cash flow generated from operating activities increased by 4.48% year-on-year to 1.713 billion yuan.</li>
</ul>
<h2>Cost Increase Far Exceeds Revenue, Net Profit Under Pressure</h2>
Ninghu Expressway achieved operating revenue of 4.782 billion yuan in Q1, a year-on-year surge of 37.66%, mainly due to increased investment in toll bridge construction projects. However, excluding the impact of construction revenue, the actual operating revenue decreased by 0.72% year-on-year, mainly due to a decrease in real estate sales revenue and electricity sales revenue.
It is noteworthy that due to the high cost rate of the construction business, the company's operating costs soared by 70.49% year-on-year to 3.124 billion yuan, with the growth rate far exceeding that of revenue, leading to a certain impact on profitability. The net profit attributable to shareholders of the listed company was 1.211 billion yuan, a year-on-year decrease of 2.88%; earnings per share were 0.2404 yuan, a year-on-year decrease of 2.88%.
However, if excluding the impact of non-recurring gains and losses, the company's net profit excluding non-recurring items was 1.195 billion yuan, a year-on-year increase of 0.63%, indicating that the company's core business profitability remains relatively stable. The net cash flow generated from operating activities was 1.713 billion yuan, a year-on-year increase of 4.48%, showing good cash generation capability.
<h2>Steady Growth in Toll Roads, Uneven Performance in Diversified Businesses</h2>
As the company's core business, the toll road business performed well, while diversified businesses showed mixed results.
Toll Road Business: Q1 achieved revenue of 2.327 billion yuan, a year-on-year increase of 2.25%. This growth was mainly benefited from the diversion effect of the expansion and reconstruction of the riverside expressway and the low base effect of adverse weather conditions in the same period last year.
In terms of specific road sections, Hu-Ning Expressway performed excellently, with an average daily traffic of 122,000 vehicles, a year-on-year increase of 5.46%, and average daily revenue of 14.8973 million yuan, a year-on-year increase of 9.58%. As the company's core asset, the strong performance of Hu-Ning Expressway provided important support for overall performance
Supporting Business: Achieved revenue of 421 million yuan, a slight increase of 1.15% year-on-year. Among them, oil product sales revenue was 363 million yuan, a year-on-year decrease of 2.87%, mainly affected by the decline in oil product sales prices; service area leasing business revenue was 51 million yuan, a significant increase of 52.65% year-on-year.
Construction Business: Confirmed construction period revenue of 1.797 billion yuan, a year-on-year surge of 284.55%, becoming the largest driver of revenue growth for this period.
Other Segments: Power sales revenue was 172 million yuan, a year-on-year decrease of 17.23%, mainly affected by weather factors; real estate business revenue was 18 million yuan, a year-on-year decline of 76.02%, reflecting the company's proactive contraction of its real estate business.
<h2>Ningyang Yangtze River Bridge Opens, Further Perfecting the Company's Road Network Layout</h2>
The company welcomed an important milestone during the reporting period—the official opening of the Ningyang Yangtze River Bridge.
As an important part of the national expressway G9904 Nanjing metropolitan area ring expressway, this project connects several important expressways such as Hu-Ning and Hu-Shan, and links Longtan Port and Nanjing Lukou International Airport, showcasing significant geographical advantages.
The company is actively promoting the northern connection project of the Ningyang Yangtze River Bridge, with a cumulative investment of 4.217 billion yuan in construction funds by the end of the reporting period, accounting for 60.37% of the total project investment, and is expected to open before the end of 2025. In addition, the company has made a cash capital increase of 109 million yuan to its holding subsidiary Wufengshan Bridge Company.
<h2>Increase in Long-term Debt Proportion</h2>
As of the end of March 2025, the company's total assets reached 91.485 billion yuan, an increase of 1.78% compared to the end of the previous year; the equity attributable to shareholders of the listed company was 39.631 billion yuan, an increase of 2.68% compared to the end of the previous year.
In terms of debt structure, the company's long-term loan balance was 20.008 billion yuan, an increase of approximately 650 million yuan compared to the end of the previous year; the bond payable balance was 3.098 billion yuan, an increase of approximately 2.1 billion yuan compared to the end of the previous year; while the total short-term loans and other current liabilities amounted to 2.022 billion yuan, a decrease of approximately 2.51 billion yuan compared to the end of the previous year.
These changes indicate that the company is optimizing its debt structure, increasing the proportion of long-term financing, and reducing short-term financing pressure

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In the first quarter, Jiangsu Expressway's revenue increased by 37.66% to 4.782 billion yuan, mainly benefiting from increased investment in road and bridge construction. After excluding construction revenue, revenue slightly decreased by 0.72% year-on-year. The core asset, Hu-Ning Expressway, performed excellently, with an average daily traffic of 122,000 vehicles, a year-on-year increase of 5.46%, and an average daily revenue of 14.8973 million yuan, a year-on-year increase of 9.58%

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Revenue increases without profit! Jiangsu Expressway's Q1 revenue surged by 37.7%, while net profit attributable to the parent company declined by 2.9% | Financial Report Insights