Qilu Expressway Issues Profit Warning with Steep Revenue Drop for FY2025

Qilu Expressway Company Limited (Stock Code: 1576) has released its unaudited key financial data for the year ended 31 December 2025, along with a significant profit warning. The announcement contains several crucial updates that current and potential investors must carefully consider, as the figures and outlook may have a material impact on the company’s share price.

Key Financial Highlights for FY2025

• Revenue: The Group reported a dramatic decrease in revenue, with total revenue falling to RMB 2,374.6 million from RMB 7,021.8 million in the previous year. This represents a sharp year-on-year decline of 66.18%.
• EBITDA: Despite the revenue drop, EBITDA surged by 54.47% to RMB 1,507.6 million, up from RMB 976.0 million in 2024. This indicates improved operational profitability before accounting for financial costs, depreciation, and taxes.
• Profit: Net profit declined to RMB 386.0 million, a decrease of 22.55% from RMB 498.4 million last year. Total comprehensive income mirrored this decrease.
• Toll Income: Toll income saw a significant jump to approximately RMB 1,768 million (tax inclusive), representing a robust increase of 64.32% year-on-year.

Balance Sheet Overview

• Total non-current assets: Slight decrease of 0.55% to RMB 18,910.1 million.
• Total current assets: Decreased by 23.03% to RMB 1,587.0 million.
• Total non-current liabilities: Increased by 7.14% to RMB 10,713.0 million.
• Total current liabilities: Decreased by 30.80% to RMB 3,357.0 million.
• Total equity: Increased by 3.25% to RMB 6,427.0 million.

Key Drivers and Explanations

• The major cause for the revenue plunge is the substantial drop in construction business revenue following the completion of the reconstruction and expansion of the Jihe Expressway.
• Toll income rebounded strongly after the Jihe Expressway’s upgrades, with two-way traffic resuming and driving a 64.32% increase in toll revenue.
• The drop in net profit is mainly attributed to higher depreciation, amortization, and financial costs that came into effect after the Jihe Expressway project’s completion and its return to service.

Potentially Price-Sensitive and Material Information

Investors should note:

• The 66.18% drop in total revenue is material and unusual, which may raise concerns over future earnings stability.
• Although toll income rose sharply, it was not sufficient to offset the loss of construction revenue and increased costs, resulting in a 22.55% drop in net profit.
• There is a substantial increase in non-current liabilities, which may affect future leverage and financial flexibility.

The company’s business is transitioning from construction-driven revenues toward a greater reliance on toll operations, which could impact future income predictability and growth.

Management Statement and Caution

The company stressed that these results are based on unaudited management accounts and are subject to finalization and audit. Investors are strongly advised to exercise caution and not rely solely on the preliminary financial information provided in this announcement for any investment decisions. The finalized results will be announced later.

Board and Management

The announcement was authorized by Chairman Wei Yong and lists the current executive, non-executive, and independent non-executive directors, ensuring governance transparency.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should refer to the official audited results and seek professional advice before making any investment decisions. Past performance is not indicative of future results.

View QILU EXPRESSWAY Historical chart here