YueXiu Transport Infrastructure (01052.HK) reported a mid-year profit attributable to shareholders of approximately RMB 386mn, up 6.94% YoY

YueXiu Transport Infrastructure (01052.HK) $YUEXIUTRANSPORT(01052.HK)$Hang Seng Index(00HSI.HK) announced its H1 2026 results: revenue of approx. RMB 2.14bn (+1.97% YoY); profit attributable to shareholders of approx. RMB 386mn (+6.94% YoY); basic EPS of RMB 0.2306; interim dividend of HKD 0.12 per share.

Portfolio optimization and high-quality advancement of the North Second Ring Road expansion project

During the period, the company completed the transfer of an 85% equity stake in Shandong Qinbin Expressway. The toll mileage under its interest increased from 607.7km at the beginning of the year to 659.3km. Less than six months after consolidating Shandong Qinbin Expressway into its financial statements, it contributed RMB 165mn in toll revenue and RMB 64.69mn in profit attributable to shareholders. This acquisition aligns with the company's regional expansion strategy, allowing it to fully capitalize on the dividends of economic development along the eastern coast and elevate the scale, quality, and efficiency of the business.

Additionally, the core asset project—the Guangzhou North Second Ring Road expansion—is progressing as planned. Breakthroughs were made in key challenges such as railway construction coordination, and land delivery is advancing steadily, with 100% handover expected in H2. On-site construction is proceeding on schedule, notably with the successful breakthrough of the right tunnel line of the Tianluyuan Tunnel. These achievements lay a solid foundation for continuing construction in H2. The North Second Ring Road expansion will further strengthen the company's premium assets in the Greater Bay Area, consolidate its most critical revenue-generating asset, and support sustainable operations.

Lean management yields results, steadily improving operational quality

The company actively implemented 'one road, one policy' measures, achieving revenue growth on Henan Weixu Expressway, Henan Lanwei Expressway, and Hubei Hancai Expressway, with average daily toll revenues increasing by 9.0%, 7.5%, and 6.8% YoY, respectively. On the cost side, the implementation of multiple green maintenance technologies significantly reduced engineering maintenance expenses. Benefiting from various cost-reduction initiatives, general and administrative expenses decreased by RMB 45.19mn YoY. Meanwhile, the company continued to optimize its overall debt structure and lower borrowing costs, reducing finance expenses. Excluding the consolidation impact of Shandong Qinbin Expressway, pro forma finance expenses fell by 11.9%.

Seizing opportunities in new energy and new infrastructure, steadily advancing the 'Expand and Innovate' strategy

2026 marks the opening year of the '15th Five-Year Plan'. The state is systematically advancing the 'Six Networks' (covering water networks, new power grids, computing power networks, next-generation communication networks, urban underground pipe networks, and logistics networks) and the construction of new power systems, creating trend-setting opportunities for green energy and new infrastructure. The company is proactively seizing these development opportunities to further broaden its revenue streams and enhance sustainable development capabilities.

Looking ahead, in expanding its core business, the company will intensify resource integration, deepen its focus on the core highway sector, and actively and prudently expand into other infrastructure formats with stable cash flows, strengthening its strategic layout to increase asset and revenue scale.

In actively and prudently expanding new businesses, the company will focus on key areas such as new energy, new infrastructure, and smart transportation, continuously tapping into the potential of road-derivative economies and capitalizing on opportunities in new energy and infrastructure. Furthermore, it will leverage its dual financing platform advantages domestically and internationally to provide robust funding for investment projects, and continuously enhance shareholder returns through portfolio optimization. Simultaneously, focusing on key areas of operation and maintenance, it will vigorously promote cost reduction and efficiency enhancement, increase the application of AI technology in road safety and emergency traffic flow assurance, and accelerate the digital and intelligent transformation of its business.

Guided by its '1318' strategy and centered on the theme of 'Expanding and Innovating', YueXiu Transport will leverage its three-platform interaction model, synergy with its parent company, stable cash flows, and core advantages in new energy platform resource integration. It will expand into three major business directions: 'Highway 1.0', 'Transportation +1.5', and 'Infrastructure 2.0'. Anchored on key targets, it will implement eight major strategic initiatives—including highway investment and M&A, new business expansion, and lean operations—to deliver high-quality sustainable development and reward shareholders.

Liu Yan, Chairwoman of YueXiu Transport Infrastructure (second from left), Yao Xiaosheng, Executive Director, Vice Chairman and General Manager (second from right), Zhu Wenbo, Deputy General Manager (far left), and Zhu Chuanbao, Deputy General Manager (far right).