CONTENTS Five Years Financial Summary 2 Report of the Directors 74 Financial Highlights 3 Independent Auditor’s Report 81 Corporate Profile 4 Consolidated Income Statement 86 Location Maps of Projects 6 Consolidated Statement of Comprehensive Income 87 Chairman’s Statement 14 Consolidated Balance Sheet 88 Management Discussion and Analysis 22 Consolidated Statement of Cash Flows 90 Investor Relations Report 56 Consolidated Statement of Changes in Equity 91 Directors’ Profiles 59 Notes to the Consolidated Financial Statements 93 Corporate Governance Report 62 Corporate and Investor Relations Information 182 Yuexiu Transport Infrastructure Limited Yuexiu Transport Infrastructure Limited 2 Annual Report 2019 Annual Report 2019 3 FIVE YEARS FINANCIAL SUMMARY INCOME STATEMENT Year ended 31 December (RMB’000) 2019 2018 2017 2016 2015 Income from operations 3,023,221 2,847,073 2,702,844 2,519,003 2,226,023 Earnings before interests, tax, depreciation and amortisation (“EBITDA”)1 2,956,565 2,855,785 2,722,179 2,356,181 2,037,563 Profit before income tax 1,900,445 1,891,655 1,638,417 1,520,564 869,932 Profit for the year 1,595,043 1,411,681 1,267,222 1,166,477 653,022 Profit attributable to: Shareholders of the Company 1,137,590 1,054,135 947,942 918,817 532,086 Non-controlling interests 457,453 357,546 319,280 247,660 120,936 Basic earnings per share for profit attributable to the shareholders of the Company RMB0.6799 RMB0.6300 RMB0.5666 RMB0.5491 RMB0.3180 Dividend per share RMB0.3500 RMB0.3375 RMB0.2970 RMB0.2885 RMB0.2296 BALANCE SHEET As at 31 December (RMB’000) 2019 2018 2017 2016 2015 Total Assets 36,797,875 22,739,750 23,918,489 22,568,556 23,419,273 Total Liabilities 23,169,125 10,332,171 12,101,085 11,264,254 12,590,180 Total Equity 13,628,750 12,407,579 11,817,404 11,304,302 10,829,093 Equity attributable to: Shareholders of the Company 10,571,655 10,071,871 9,544,848 9,081,958 8,571,746 Non-controlling interests 3,057,095 2,335,708 2,272,556 2,222,344 2,257,347 Net assets per share to shareholders of the Company RMB6.32 RMB6.02 RMB5.70 RMB5.43 RMB5.12 FINANCIAL RATIOS Year ended 31 December 2019 2018 2017 2016 2015 Return on equity attributable to shareholders of the Company 10.76% 10.47% 9.93% 10.12% 6.21% EBITDA Interest Coverage 7.6 times 8.2 times 8.4 times 5.8 times 5.8 times Gearing ratio2 55.4% 29.6% 36.0% 40.0% 43.9% 3 Total liabilities/Total assets ratio 63.0% 45.4% 50.6% 49.9% 53.8% 1: EBITDA includes profit from associates and joint venture, but excludes non-cash gains and losses. 2: net debts÷total capitalization 3: total liabilities÷total assets Yuexiu Transport Infrastructure Limited Yuexiu Transport Infrastructure Limited 2 Annual Report 2019 Annual Report 2019 3 FINANCIAL HIGHLIGHTS RESULTS HIGHLIGHTS FOR 2019 RMB3,023 RMB2,012 million million 66.6％ 4.1% Revenue 6.2% Gross Profit 0.0% Gross Margin* percentage point RMB1,920 RMB1,900 RMB1,138 million million million Operating 5.0% Profit before 0.5% Profit 7.9% Profit income tax attributable to shareholders of the company RMB36.8 RMB0.6799 RMB6.32 billion Earnings per 7.9% Total Assets 61.8% Net assets per 5.0% share share * Gross Margin = Gross profit/Revenue Yuexiu Transport Infrastructure Limited Yuexiu Transport Infrastructure Limited 4 Annual Report 2019 Annual Report 2019 5 CORPORATE PROFILE 廣州越秀集團股份 有限公司 GUANGZHOU YUE XIU HOLDINGS LIMITED 100% YUE XIU ENTERPRISES (HOLDINGS) LIMITED 44.2% PUBLIC 55.8% YUEXIU TRANSPORT INFRASTRUCTURE LIMITED EXPRESSWAY / BRIDGE GNSR Expressway / 60% Cangyu Expressway / 100% Jinxiong Expressway / 60% Han-Xiao Expressway / 100% Changzhu Expressway / 100% Weixu Expressway / 100% Suiyuenan Expressway / 70% * The Group’s profit sharing ratio in Hancai Expressway / 67% Humen Bridge could be referred to Han’e Expressway / 100% notes of ‘Business Review’ in page Daguangnan Expressway / 90% 26. Northern Ring Road / 24.3% subsidiaries Humen Bridge / 27.78%* associates and joint venture Shantou Bay Bridge / 30% GWSR Expressway / 35% Qinglian Expressway / 23.63% Yuexiu Transport Infrastructure Limited Yuexiu Transport Infrastructure Limited 4 Annual Report 2019 Annual Report 2019 5 Yuexiu Transport Infrastructure Limited (“Company”) and its subsidiaries (collectively, “Group”) are principally engaged in investment, operation and management of toll expressways and bridges in Guangdong Province and 15 other high growth provinces in the People’s Republic of China (“PRC”). The INVESTMENTS IN Company’s substantial shareholder, Guangzhou Yue Xiu Holdings Limited is a state-owned enterprise under the supervision of the State-owned Assets ITS OPERATING Supervision and Administration Commission (“SASAC”) of the Guangzhou Municipal People’s Government. EXPRESSWAYS AND As at 31 December 2019, the Group had a total of 15 investments in its BRIDGES IN TOTAL operating expressways and bridge projects which included Guangzhou Northern Second Ring Expressway (“GNSR Expressway”), Guangzhou Western Second Ring Expressway (“GWSR Expressway”), Guangzhou Northern Ring Road (“Northern Ring Road”), Guangdong Humen Bridge (“Humen Bridge”), Shantou Bay Bridge and Guangdong Qinglian Expressway, all of which are located within Guangdong Province; Han-Xiao Expressway, Suiyuenan Expressway, Hancai Expressway, Han’e Expressway and Daguangnan Expressway in Hubei Province; Cangyu Expressway in Guangxi Zhuang Autonomous Region (“Cangyu Expressway”); Jinxiong Expressway in Tianjin Municipality; Changzhu Expressway in Hunan Province; and Weixu Expressway in Henan Province. As at 31 December 2019, the attributable toll length of the Group’s subsidiaries is approximately 456.3 km (total toll length is approximately 534.9 km), attributable toll length of the Group’s associates and joint venture is approximately 77.3 km, the total attributable toll length of expressways and bridges is approximately 533.6 km. LOCATION MAPS OF PROJECTS 1 2 3 5 4 6 9 10 8 7 Yuexiu Transport Infrastructure Limited Yuexiu Transport Infrastructure Limited 6 Annual Report 2019 Annual Report 2019 7 TIANJIN 1 Tianjin City Jinxiong Expressway HENAN 2 Xuchang City Weixu Expressway HUBEI 3 Wuhan City Han-Xiao Expressway Hancai Expressway Han'e Expressway 4 Jingzhou City Suiyuenan Expressway 5 Huanggang City Daguangnan Expressway 1 HUNAN 6 Changsha City Changzhu Expressway 2 GUANGXI 3 7 Wuzhou City Cangyu Expressway 5 4 6 GUANGDONG 8 Dongguan City Humen Bridge 8 Guangzhou City GNSR Expressway 9 Northern Ring Road 10 GWSR Expressway 8 9 Qingyuan City Qinglian Expressway 7 10 Shantou City Shantou Bay Bridge Yuexiu Transport Infrastructure Limited Yuexiu Transport Infrastructure Limited 8 Annual Report 2019 Annual Report 2019 9 LOCATION MAPS OF PROJECTS GUANGDONG HUMEN BRIDGE It is a six-lane suspension highway bridge with a toll length of approximately 15.8 km linking Nansha District of Guangzhou City and Humen District of Dongguan City. Its two ends are connected to the Guangzhou Macau Expressway, Guangzhou Yanjiang Expressway and GS Superhighway. GNSR EXPRESSWAY It is a six-lane expressway of approximately 42.5 km for toll length, with 10 flyovers in total. GNSR Expressway also connects with GWSR Expressway, Guangqing Expressway, Airport Expressway, G4 Expressway, Huanan Expressway, Guanghe Expressway, Guanghui Expressway, GS Superhighway, GESR Expressway and Fegnhuangshan Tunnel, National Highway 105, 106, 324 and Provincial Highway 114 and so on. NORTHERN RING ROAD It is located within Guangzhou City with a toll length of approximately 22.0 km with six lanes. It is a part of Guangzhou Second Ring Expressway, Guangzhou section of Shenhai Expressway and Fukun section of National Highway, linking with GS Superhighway and Guangzhou Foshan Expressway. Yuexiu Transport Infrastructure Limited Yuexiu Transport Infrastructure Limited 8 Annual Report 2019 Annual Report 2019 9 QINGLIAN EXPRESSWAY It is located in the northwestern part of Guangdong as a significant linkage between Guangdong and Hunan. The toll length is approximately 215.2 km with four lanes. GWSR EXPRESSWAY The toll length is approximately 42.1 km with six lanes which is connected to GNSR Expressway, Guangqing Expressway, southern part of GWSR Expressway and Guangsan Expressway. SHANTOU BAY BRIDGE It is located at the eastern entrance of the Port of Shantou and connects Shenshan Expressway to the south. The bridge stretches over the main waterway at Huangsha Bay and is connected to Shanfen Expressway. The project’s toll length is approximately 6.5 km with six lanes. Yuexiu Transport Infrastructure Limited Yuexiu Transport Infrastructure Limited 10 Annual Report 2019 Annual Report 2019 11 LOCATION MAPS OF PROJECTS GUANGXI CANGYU EXPRESSWAY It is located in Longxu District, which was originally in Cangwu County, of Wuzhou City in Guangxi Zhuang Autonomous Region, linking Longxu District of Guangxi with the Yunan County of Guangdong Province. The toll length is approximately 23.3 km with four lanes, forming a part of Guangkun Expressway (G80). TIANJIN JINXIONG EXPRESSWAY It is located in the west of Tianjin Municipality, and Hebei Province at the junction, and linking the Jinxiong Expressway (Hebei section), Jinghu Expressway and Tianjin Waihuan Lane etc. with a toll length of approximately 23.9 km with four lanes. Yuexiu Transport Infrastructure Limited Yuexiu Transport Infrastructure Limited 10 Annual Report 2019 Annual Report 2019 11 HUNAN CHANGZHU EXPRESSWAY It starts from Huanghua Village in the Changsha County, Changsha City, while ending at northwest of Zhuzhou Electric Factory. Changzhu Expressway has a toll length of approximately 46.5 km with four lanes. It connects with Changsha City Ring Road, Chang-Liu Expressway, Airport Expressway and Hukun Expressway. HENAN WEIXU EXPRESSWAY Located in Henan Province, Weixu Expressway is an important part of Lan-nan Expressway as well as the significant linkage between G4 Expressway, Daguang Expressway (G45), Xuguang Expressway (G0421), Er’guang Expressway (G55), Ningluo Expressway (G36) and Lianhuo Expressway (G30).