Qilu Expressway Company Limited – Q1 2026 Financial Results and Key Developments

Key Financial Highlights for Q1 2026

• Revenue: The Group generated RMB 537 million in revenue for the three months ended 31 March 2026, marking a significant year-on-year increase of 9.08% compared to RMB 492.37 million in Q1 2025.
• Profit: Despite higher revenue, net profit declined by 5.00% to RMB 114.97 million from RMB 121.01 million in the previous year.
• Total Comprehensive Income: Remained unchanged, matching the profit figure, at RMB 114.97 million, down 5.00% year-on-year.

Balance Sheet Overview

• Total Non-Current Assets: Increased slightly to RMB 18.85 billion, up 0.09% from RMB 18.83 billion as of 31 December 2025.
• Total Current Assets: Decreased sharply by 24.60% to RMB 1.61 billion, compared to RMB 2.14 billion at year-end 2025.
• Total Non-Current Liabilities: Rose by 1.95% to RMB 10.84 billion.
• Total Current Liabilities: Fell by 22.28% to RMB 3.10 billion.
• Total Equity: Increased by 2.71% to RMB 6.52 billion.

Business Segment Performance and Strategic Developments

• Wind Power Hybrid Tower Business: The revenue increase was mainly attributed to accelerated operations at the Group’s wind power hybrid tower production base. This development is noteworthy as it is a new business segment, and its performance is currently characterized by low gross profit margins, which contributed to the decline in overall net profit.
• Toll Income: Toll revenue, traditionally a major source of income, declined by 3.03% to RMB 416 million (tax inclusive). This drop was mainly due to traffic diversion and interception from the surrounding road network, which may signal structural challenges in the toll segment.

Potential Share Price Sensitivity

• Revenue Growth vs. Profit Decline: The Company’s shift towards new business (wind power hybrid towers) has driven revenue growth but resulted in lower profitability, highlighting execution risks and margin compression in the early stages of new business lines.
• Material Drop in Current Assets: The significant decrease in current assets may indicate increased capital expenditure or working capital deployment, which could affect liquidity and future dividend distributions.
• Decrease in Toll Revenue: Persistent decline in toll revenue may impact the Company’s cash flow and future earnings unless new business segments compensate.
• Unreviewed Financials: The Board has emphasized that the reported financial information has not been reviewed or audited by external auditors. Investors should exercise caution when relying on this data for investment decisions.

Governance and Leadership

The Board consists of:

• Executive Directors: Mr. Wei Yong, Mr. Duan Peng, Mr. Chen Xiulin
• Non-Executive Directors: Mr. Gao Yongjun, Ms. Kong Xia, Mr. Wang Gang, Mr. Shi Jinglei, Mr. Du Zhongming, Mr. Ren Wei, Mr. Wang Hongyi
• Independent Non-Executive Directors: Mr. Liu Hongwei, Mr. He Jiale, Mr. Wang Lingfang, Mr. Leng Ping, Ms. Shen Chen

Conclusion for Investors

The Q1 2026 financial announcement from Qilu Expressway Company Limited reveals a strategic pivot towards the wind power hybrid tower business, which has driven top-line growth but impacted margins and profitability. Investors should closely monitor the execution of this new business segment, the ongoing decline in toll income, and the implications of reduced current assets on liquidity. The unreviewed nature of these figures adds a layer of risk and caution in interpreting the results.

Disclaimer

The financial information contained herein has not been reviewed or audited by external auditors and is based on the Company’s internal reporting. Investors are strongly advised to exercise caution and not rely solely on this information when making investment decisions regarding the Company’s securities. Past performance is not indicative of future results.

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