Anhui Expressway Company Limited reported FY25 audited results (HKFRS) showing a mixed performance, with robust core toll-road growth offset by lower construction revenue and higher finance costs.

Financial highlights (FY25 vs FY24, RMB): • Revenue: 6.72 billion, down 12.68%, reflecting a sharp 50.7% drop in construction/upgrade income, while toll income rose 13.36% to 5.02 billion. • Gross profit: 2.95 billion, up 7.38%, pushing gross margin to 43.8% (FY24: 35.6%). • Profit attributable to owners: 1.88 billion, down 1.69%. • EPS: RMB 1.1151 (-3.15%). • Final dividend proposed: RMB 0.66 per share (up 9.3% YoY), totalling approximately 1.13 billion, equivalent to a 60% payout ratio in line with the 2025-2027 shareholder return plan.

Balance sheet and cash flow: • Total assets expanded 10.6% to 30.44 billion after consolidating newly acquired Sixu and Fuzhou Expressways (100% stakes purchased for RMB 4.77 billion). • Cash and equivalents rose to 3.48 billion (FY24: 2.16 billion), supported by June’s HK$522.31 million private placement of 49.98 million H shares to parent Anhui Transportation Holding Group. • Interest-bearing liabilities jumped to 13.96 billion (FY24: 8.14 billion) following a RMB 2.00 billion bond issue and additional bank borrowings, lifting finance costs 71% to 298.24 million. • Net assets attributable to shareholders fell to 12.83 billion (-21.8%) due to dividend distribution and consolidation adjustments.

Operational metrics: Total traffic-driven toll revenue advanced to 5.17 billion before tax, aided by: – Strong spring-festival travel and an expanded differentiated toll discount (effective 1 April 2025) that spurred ETC truck and passenger-car volumes. – Full-year contributions from Xuanguang, Guangci and Guangxuan (post-expansion) sections. Policy-driven exemptions, including green-channel, holiday and ETC discounts, reduced turnover by roughly 970 million across the network.

Strategic moves: • Equity investments: Acquired 7% of Shandong Hi-Speed for 3.02 billion (transfer completed Feb 2026); subscribed 1.5% of Shenzhen Expressway via private placement. • New projects: Leading role in G50 Shanghai-Chongqing Expressway reconstruction (total investment 12.30 billion); post-period approval for G30 Lianhuo Expressway Anhui section upgrade (5.42 billion). • Financing: Registered up to 5 billion of debt-financing instruments with NAFMII and issued the first RMB 800 million ultra-short-term note in Nov 2025.

Outlook: Management cites China’s steady economic recovery, policy support for infrastructure and digital-intelligent road upgrades as tailwinds, while acknowledging rising costs, traffic-diversion pressures and ongoing fee-reduction policies. Upcoming expansion projects and recent equity stakes aim to extend concession periods and diversify earnings, underpinning long-term competitiveness.