1. B.
Stock Codes: 737 (HKD counter) & 80737 (RMB counter)
December 2017
Presentation slides are available on www.hopewellhighway.com
HOPEWELL HIGHWAY INFRASTRUCTURE LIMITED
2. B.
HHI Overview
2
Listed on Stock Exchange of Hong Kong on
6 Aug 2003
Market capitalization: around HK$14.4 billion
(US$1.8 billion) as of 30 November 2017
4. B.4
Key Messages
Net profit up 22% yoy to RMB623m, as core operations grew
and net exchange loss narrowed
Profit before net exchange loss up 8% yoy to RMB649m
Total dividend per share RMB30.2 cents
(final DPS: RMB11.6 cents, special final DPS: RMB10.0 cents;
interim DPS: RMB8.6 cents)
GS’ growth momentum is persistent
− Average daily FLE traffic reached historical high
− Average daily toll revenue set a new high after tariff cut in
Jun 2012
WDR net profit up 169% yoy to RMB107m (HHI’s share)
FY2017
5. B.5
Key Messages
Net exchange loss on RMB depreciation narrowed to RMB17m
(HHI’s share) (FY16: RMB82m)
Disclose WDR as a whole starting from FY17 annual results
‒ Simplify disclosure to reflect full operation (WDR fully
opened in Jan 2013 and turned profitable since FY16)
WDR utilised surplus cash to fully prepay RMB807m (JV level) of
bank loan principal due in 2017 and 2018 as at 30 Jun 2017
Strong financial position. HHI corporate level net cash
RMB469m or RMB0.15/share (30.6.2017)
FY2017
B.
6. B.6
Key Messages
FY18 results will be affected by one-off impact from GS’ profit sharing
ratio adjusted from 48% to 45% starting 1 Jul 2017
‒ Yet will be supported by (i) GS’ and WDR’s healthy growth; (ii) fall in
WDR’s interest expenses
100% dividend payout target (full-year basis) sustainable
− HHI corporate level net cash RMB469m (30.6.17)
− Expect ~RMB600m dividend from GS in FY18 (similar to HHI’s
proposed annual regular dividend to shareholders in FY17)
− WDR targets to distribute dividend to HHI starting 2020 the earliest
WDR FY18 finance cost will drop mainly due to (i) 10% discount on
individual bank loans’ borrowing rates; (ii) bank loans’ prepayment
The soon-to-open HK-Zhuhai-Macao Bridge will benefit WDR
Guangdong-HK-Macao Bay Area’s development will benefit GS & WDR
Upcoming: FY2018 & Beyond
B.
7. B.
Results Highlights
7
2016 2017
RMB'm RMB'm
Net toll revenue 2,002 2,159 +8%
•
•
GS ↑6% to RMB1,560m
WDR ↑15% to RMB599m
EBITDA of toll expressways 1,705 1,859 +9% • Healthy core operation
Net profit of toll expressways 611 666 +9%
•
•
GS' net profit ↓2% to RMB559m mainly
due to ↑finance cost from RMB2b bank
loan drawn in Aug-16
WDR net profit ↑169% to RMB107m
(FY16: RMB40m)
Corporate results (8) (17) n/a
• ↓Net interest income:
-↓interest income due to shareholder's
loan to WDR repaid by Oct-15
- offset↓finance cost after full
repayment of all corp. bank loans
Profit before net exchange loss 603 649 +8%
Net exchange loss (82) (17) n/a
Profit attributable to owners of the
Company
511 623 +22%
• Core operation grew and ↓net exchange
loss
For the year ended 30-Jun
%
change
Major reasons for change
8. B.8
HHI’s Results
For the year ended 30-Jun
(RMB’M) 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017
GS SuperhighwayN1
1,480 1,560 1,262 1,343 (414) (460) (277) (324) 571 559
Western Delta Route 522 599 443 516 (181) (211) (222) (198) 40 107
Sub-total 2,002 2,159 1,705 1,859 (595) (671) (499) (522) 611 666
+8% +9% +13% +5% +9%
Corporate results:
Bank deposits interest income 27 24
Shareholder's loan interest income 9 -
Other income 1 -
General and administrative expenses (40) (41)
Finance costs (4) -
Income tax expense (1) -
Sub-total (8) (17)
Profit before net exchange loss 603 649 +8%
Net exchange loss (82) (17)
Profit for the year 521 632
Minority interests (10) (9)
Profit attributable to owners of the Company 511 623 +22%
Net Toll
Revenue
EBITDA ResultsInterest & Tax
Depreciation &
Amortisation
N1: Excl. exchange differences from USD & HKD loans and related income tax
9. B.9
Financial Highlights
Declared dividend in RMB, with the option to receive dividends in RMB or
HKD or combination of RMB and HKD
N1: Based on PBOC exchange rate RMB1 = HK$1.11560 (4 Jan 2017)
N2: Based on PBOC exchange rate RMB1 = HK$1.17154 (16 Aug 2017)
EPS RMB cents 16.59 20.21 +22%
RMB cents 8.40 8.60
HKD cents 9.9737 9.59416
RMB cents 8.20 11.60
HKD cents 9.5484 13.58986
RMB cents 40.00 10.00
HKD cents 46.5776 11.71540
RMB cents 56.60 30.20
HKD cents 66.0997 34.89942
% change2016 2017
DPS - Interim
For the year ended 30-Jun
DPS - Final
DPS - Special Final
DPS - Total
N1
N2
N2
10. B.
Target of 100% dividend payout ratio on full-year basis is sustainable, in light
of HHI’s strong financial position
HHI’s Sustainable Dividend
N1: Payout ratio excluded special dividend
10
HHI Dividend
(RMB cent per share)
FY13 FY14 FY15 FY16 FY17
Regular Dividend
Payout Ratio
97% 100% 100% 100% 100%
10.0 9.8 8.4 8.4 8.6
9.0 8.1 8.4 8.2
11.6
10.0
18.0
40.0
10.0
0
10
20
30
40
50 Special Final Dividend
Final Dividend
Interim Dividend
RMB19.0 RMB17.9Regular: RMB16.8 RMB16.6 RMB20.2
N1 N1N1 N1
11. B.11
Cash and Debt: HHI Corporate Level vs Share of JV
N1: Total debt less bank balances and cash
HHI Corporate Level (RMB'm)
As at 30.6.2016 30.6.2017 As at 30.6.2016 30.6.2017
Bank balances and cash Corporate debt
• Bank balances and cash 652 469 • Bank loan - -
Share of JV Companies (RMB'm)
As at 30.6.2016 30.6.2017 As at 30.6.2016 30.6.2017
Bank balances and cash Bank loans
• Bank balances and cash 262 440 • GS Superhighway 1,403 2,280
• Western Delta Route 4,028 3,718
262 440 5,431 5,998
Net cash: RMB469m (30-Jun-16: RMB652m)
Net debt : RMB5,558m (30-Jun-16: RMB5,169m)N1
Solid financial position at HHI corporate level
Project loans: non-recourse to HHI
12. B.12
Impact from RMB Exchange Rate and
US Interest Rate Changes
21%
2%
77%
RMB loans:
USD loans:
Possible
exchange gain/(loss),
subject to
RMB appreciation/
(depreciation)
Breakdown of HHI’s Share of JV LoansN1 by Currency
(As at 30 Jun 2017)
RMB1,240m
RMB1,380m
RMB4,627m
N1: Represent HHI’s share of JVs’ bank loans of RMB5,998m and other borrowings of RMB9m
For every 1% Impact on HHI’s net profit
RMB depreciation ↓ ~RMB9m
US interest rate rise ↓ ~RMB9m
HKD loans:
RMB140m
13. B.
GS Superhighway – Growth is Persistent
Average daily toll:
Up 6% yoy to RMB9.2m in FY17, set a new high after tariff cut in Jun 2012
13
Mar Apr May Jun Jul Aug Nov Dec
(Labour
Holiday)
1H
CY
2H
CY
2014 8,657 8,276 7,868 8,438 8,857 9,046 8,903 8,933 8,384 -5% -6%
2015 8,867 8,505 8,025 8,775 9,017 9,057 9,153 9,202 8,567 +2% +2%
2016 9,303 8,374 8,584 9,002 9,266 9,204 9,779 9,831 8,875 +3% +4%
2017 9,899 8,708 9,479 9,726 9,896 +7%
2016 vs 2015 yoy +5% -2% +7% +3% +3% +2% +7% +7% +4%
2017 vs 2016 yoy +6% +4% +10% +8% +7%
CY
yearly
avg.
7,921 8,634
yoy changeJan + Feb Sep + Oct
(Lunar New Year) (National Holiday)
+6%
+4%
7,770
+2%
7,774 8,300
8,017
8,402
6,500
7,500
8,500
9,500 2017
2016
2015
2014
(Ching Ming
Festival)
10,000
7,500
GS Average Daily Toll Revenue
(RMB ’000)
N1: Apr: One more day toll-free Labour holiday in 2017 vs 2016
May: One less day toll-free Labour holiday in 2017 vs 2016
N1
N1
14. B.14
Western Delta Route (“WDR”)
1,032
886
786
722
546
300
400
500
600
700
800
900
1,000
1,100
FY13 FY14 FY15 FY16 FY17
WDR – EBITDA (JV Level)
(RMB’m)
Finance cost further lowered in FY18
due to:
10% discount on individual bank
loans’ borrowing rates
Bank loans’ prepayment
Achieving healthy growth since opening
Will continue to benefit from prosperous economic and road network
developments including the soon-to-open HZM Bridge
Target to distribute dividend to HHI starting 2020 the earliest
17. B.
60
70
80
90
100
110
120
JanFebMarAprMayJun JulAugSepOctNovDec
2017
2016
2015
2014
2013
17
GS Superhighway
6,000
7,000
8,000
9,000
10,000
11,000
Jan Feb Mar AprMayJun Jul AugSep Oct NovDec
2017
2016
2015
2014
2013
FY16 FY17 yoy
Avg. Daily FLE Traffic 92k 99k ↑8%
FY16 FY17 yoy
Avg. Daily Toll (RMB) 8,682k 9,169k ↑6%
GS – Average Daily FLE Traffic#
(No. of vehicles ’000)
GS – Average Daily Toll Revenue^
(RMB ’000)
N1N1N1 N1
N3
N4
* According to media # Excludes toll-free FLE traffic ^ Including tax
N1: Holiday Toll-free Policy was implemented
N2: Chinese New Year started on 28 Jan in year 2017 and 8 Feb in year 2016
N3: i) Impact of lower traffic (usually during the 1st two weeks of CNY) carried over into Mar-15.Since CNY came later in 2015 compared with 2016, which resulted in a lower base
ii) Closure of slow lanes on Chuancha Bridge near Machong for maintenance (Northbound 16 Mar 2016 to end-May 2016; Southbound 22 Mar 2016 to mid-May 2016)
N4: One more day of toll-free holiday in Apr 2017 compared to Apr 2016
N5: One less day of toll-free holiday in May 2017 compared to May 2016
N6: Aug 2016 growth was affected by bad weather caused by Typhoon Nida during 2-3 Aug 2016
N7: One more day of toll-free holiday in Oct 2017 compared to Oct 2016, i.e. National Day holiday from 1-8 Oct in 2017 (1-7 Oct in 2016).
N5
N6
N1N1N1 N1
N2
N3
N4
N5
N6
N2
N2
N2
Minimal positive impact from road network upgrade works near Shenzhen Bay border (mid-Oct
2016 to mid-Oct 2017)
NH107 Baoan section has planned to start upgrading works in 2018 (date to be announced)*
N7
N7
18. B.18
GS Superhighway – Still Room to Grow
Average daily FLE traffic ↑8% yoy to
99k vehicles in FY17
Still 22% room to grow
vs. historical peak at 121k vehicles
on 14 Sep 2016
Total distance travelled by all vehicles on the expressway
Full length of the expressway X no. of days in the review period* =
121
99
92
0
20
40
60
80
100
120
140
FY16 FY17 14.9.2016
GS – Average Daily FLE Traffic*
(No. of vehicles ’000)
▲8%
yoy
(Historical peak)
22%
19. B.19
Western Delta Route
Positive impacts from:
‒ Maintenance/Upgrading works on local roads nearby (mid-Aug 2016 to end-2019)
‒ Expressway link between WDR’s southern end and Second Hengqin Bridge opened in 1Q CY17
15
20
25
30
35
40
45
50
55
60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2017
2016
2015
2014
2013
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Jan Feb Mar Apr MayJun Jul AugSep Oct Nov Dec
2017
2016
2015
2014
2013
WDR – Average Daily FLE Traffic#
(No. of vehicles ’000)
WDR – Average Daily Toll Revenue^
(RMB ’000)
N1
N4
N3
N1 N1 N1 N1 N1 N1 N1
# Excludes toll-free FLE traffic ^ Including tax
N1: Holiday Toll-free Policy was implemented
N2: Chinese New Year started on 28 Jan in year 2017 and 8 Feb in year 2016
N3: Impact of lower traffic (usually during the 1st two weeks of CNY) carried over into Mar 2015. Since CNY came later in 2015 compared with 2016, which resulted in a lower base
N4: One more day of toll-free holiday in Apr 2017 compared to Apr 2016
N5: One less day of toll-free holiday in May 2017 compared to May 2016
N6: Aug 2016 growth was affected by bad weather caused by Typhoon Nida during 2-3 Aug 2016
N7: Small positive impact from maintenance works on a local road near the Bijiang interchange of WDR during Sep to Dec 2016
N8: One more day of toll-free holiday in Oct 2017 compared to Oct 2016, i.e. National Day holiday from 1-8 Oct in 2017 (1-7 Oct in 2016)
N5
N6 N7
FY16 FY17 yoy
Avg. Daily FLE Traffic 40k 47k ↑17%
FY16 FY17 yoy
Avg. Daily Toll (RMB) 2,941k 3,377k ↑15%
N2
N4
N3
N5
N6
N7
N2
N2 N2
N8 N8
20. B.
Guangdong-HK-Macao Bay Area*
- GS and WDR will benefit from fostered economic development
* Includes HKSAR, Macao SAR, Guangzhou, Shenzhen, Zhuhai, Dongguan, Huizhou, Zhongshan, Foshan, Zhaoqing & Jiangmen
20
First addressed in the 13th Five-Year Plan (2016-2020)
Strengthen infrastructure linkages and stimulate economic cooperation in the region
Guangdong-Hong Kong-Macao Bay Area
GDP in eleven cities in 2016 (RMB in billion)
208.4
1,961.1
863.0
241.9
320.3
682.8
341.2
1,949.3
222.6
300.1
2,109.3
Source: PRC State Council, Statistics Bureau of Guangdong Province, HKSAR Census and Statistics Department, Government of Macao SAR Statistics
and Census Service
21. B.21
Hengqin’s Developments Benefit WDR
Total committed investments of over RMB340b as of Jun 2017*
* According to media
Source: www.hengqin.gov.cn, media reports
CY 2014 2015 2016 2017 2018 2019 2020
Projects
Chimelong International Ocean
Tourist Resort Phase 1
Chimelong International Ocean
Tourist Resort Phase 2
Phase I of Lai Sun Group's
Novotown
Ferretti Yacht Asia-Pacific Center
Guangdong-Macao Cooperation
Industrial Park
Infrastructure
Macao Cotai-Hengqin Border
Crossing 24-hour opening
Hengqin Second Bridge
Opened Mar 2014
Target opening
2020*
Target opening end-2018*
Target opening 2018*
Target completion 2018
onwards*
Since Dec 2014
Opened Dec 2015
22. B.22
Future Developments to Benefit WDR
The soon-to-open HZM Bridge will benefit WDR
Healthy GDP growth of Guangzhou, Foshan, Zhongshan and Zhuhai
(1H2017: ↑ 7.4%–9.2%)
Macao’s new gaming resorts and hotels
MGM Cotai (opening 4Q2017); Grand Lisboa Palace (opening 2H2018)
WDR will also link up with:
* According to media
Target opening*
Guangzhou-Zhongshan-Jiangmen Expressway 2019
Humen Second Bridge 2019
Shenzhen-Zhongshan Corridor 2024
25. B.25
(RMB'M) 30-Jun-16 30-Jun-17 30-Jun-16 30-Jun-17
Assets Liabilities
HHI Corporate Level HHI Corporate Level
Bank balances and cash 652 469 Other liabilities 7 11
Other assets 6 7
658 476 7 11
NAV of HHI Corporate 651 465
GS Superhighway JV (HHI's shared portion) GS Superhighway JV (HHI's shared portion)
Bank balances and cash 212 379 Bank loans
Concession intangible assets 5,239 4,870 - USD 1,248 1,240
Property and equipment 212 208 - HKD 155 140
Other assets 43 27 - RMB - 900
Other liabilities 665 647
5,706 5,484 2,068 2,927
NAV of GS Superhighway JV 3,638 2,557
West Route JV (HHI's shared portion) West Route JV (HHI's shared portion)
Bank balances and cash 50 61 RMB bank loans 4,028 3,718
Concession intangible assets 6,392 6,231 Other liabilities 253 274
Property and equipment 253 225
Other assets 16 10
6,711 6,527 4,281 3,992
NAV of West Route JV 2,430 2,535
Total Liabilities 6,356 6,930
Equity attributable to owners of the Company 6,673 5,526
Minority interests 46 31
Total AssetsN1
13,075 12,487 Total Equity and Liabilities 13,075 12,487
Total NAV 6,719 5,557
Assets and Liabilities – HHI Corporate and JVs
N1: Excluding elimination of the Group’s balance with JV company prepared under proportionate consolidation method.
26. B.26
Debt Maturity Profile
Share of JV
RMB'm % RMB'm %
Repayable within 1 year 65 1% 172 3%
Repayable between 1 and 5 years 1,521 28% 2,316 38%
Repayable beyond 5 years 3,853 71% 3,519 59%
Total 5,439 100% 6,007 100%
30 Jun 2016 30 Jun 2017 N
27. B.27
Update on Operating Environment
VAT payable effective rate: 2.86%
(vs business tax rate: 3%)
Slightly positive impact on net toll
revenue and net profit in FY17
Change of Business Tax to Value-added
Tax (effective 1 May 2016)
Trucks using Guangdong Unitoll
Card for toll payments on designated
43 state-owned expressways in
Guangdong would be discounted
15% starting on 1 Jul 2017
(not applicable to GS and WDR)
Trucks’ Discount on Guangdong’s
Designated State-owned Expressways
29. B.
5,000
10,000
15,000
20,000
25,000
30,000
Cross Harbour
Tunnel
Eastern Harbour
Crossing
Western Harbour
Crossing
GS Superhighway
Peak Section
(Huocun to Luogang)
GS Superhighway
Average
No. of vehicle per lane per day
29
GS Superhighway
– Avg Daily Cross Sectional Traffic per lane & Effective Hour
GS’ busiest section higher than Eastern Harbour Crossing
GS and HK Tunnels
Effective hours
(Jun-17)
Cross Harbour Tunnel 14.2
Eastern Harbour Crossing 9.5
Western Harbour Crossing 5.4
GS Peak Section 10.7
GS Average 8.7
GS’ busiest section higher than Eastern Harbour Crossing
Remarks:
1) Effective hour = no. of vehicles per lane / 2,000 cars per hour per lane
2) 10 lanes in dual directions in Wudianmei to Taiping and Hezhou to Fuyong sections after expansion for the GS Superhighway
3) Average daily traffic of HK tunnels (May 2017): Cross Harbour Tunnel 113,000, Eastern Harbour Crossing 76,000, Western Harbour Crossing 65,000
4) Average daily traffic of GS Superhighway (June 2017)
30. B.30
GS Superhighway – Measures to Control Operating
Costs and Enhance Operational Efficiency
Streamline workforce
Automation
~76% toll lanes at entrance have Electronic Toll Collection (“ETC”)
or automatic card-issuing machines
32. B.32
Western Delta Route – Annual Toll Revenue per km
Opening Yr Year
1
Year
2
Year
3
Year
4
Year
5
Year
6
Year
7
Year
8
Year
9
Year
10
Year
11
Year
12
Year
13
Year
14
Year
15
Year
16
Year
17
Year
18
Year
19
Year
20
Year
21
Year
22
Year
23
GS (FY95) 4.4 5.8 7.5 9.8 10.8 13.1 14.4 15.4 17.2 20.6 24.2 26.2 29.8 26.0 26.6 28.5 30.1 29.5 25.7 25.8 25.2 25.9 27.3
WDR (FY13) 7.0 9.3 10.1 11.0 12.6
0.0
5.0
10.0
15.0
20.0
25.0
RMB'm
GS Superhighway
(trial run Jul-94,
opened Jul-97)
35.0
Annual Toll Revenue^ per km
(RMB’m)
Encouraging revenue generation since opening
⌇
^ Including tax
WDR
(fully opened Jan-13)
34. B.
The Complete Network
GS
1994
WDR
Fully opened
2013
Phase IV West
(Gov’t Project)
2008
HK-Zhuhai-Macao
Bridge
(Gov’t Project)
Zhuhai Link Road
(Gov’t Project)
Sep 2016
Other Expressways (In Operation)
Other Expressways (Under Construction or
Planning)
Main Roads / Class 1 Highways (In Operation)
Main Roads / Class 1 Highways (Under
Construction or Planning)
Kowloon-Canton Railway
Guangzhou-Shenzhen-HK Express Rail Link
Guangzhou-Zhuhai Intercity Railway
Coastal Expressway
Legend:
B.34
35. B.35
HHI’s Toll Structure^
Passenger
vehicles
Trucks
Class
Number of
seats
Loading weight
(tonnes)
1 ≤7 ≤2 0.60
2 8-19 2-5 (include 5) 0.90
3 20-39 5-10 (include 10) 1.20
4 ≥40
10-15 (include 15)
and
20ft. container
1.80
5 -
>15 and 40ft.
container
2.10
Tariff
rate*
(RMB per
km)
National classification
^ Effective since 26 Jun 2015
* Tariff rate under the national classification standard for trucks will be used only when the weighing equipment is out of order
Passenger Vehicles
Charge based on no. of seats
Trucks
Charge based on total weight of truck
(tonne)
Basic tariff rate: RMB0.12/tonne/km (≥ 3x3
expressway)
Penalty on overloaded trucks
36. B.36
Growth in PRC & Guangdong Registered Car Population
* Incl. passenger & commercial vehicles but excl. motorcycles & truckers
Driven mainly by passenger car sales
Source: Statistics Bureau of Guangdong (www.gdstats.gov.cn), National Bureau of Statistics of China (www.stats.gov.cn), China Association of
Automobile Manufacturers (www.caam.org.cn), CEIC
78
94
163
186
146
27 32
37
44
51
63
127
109
24
0
20
40
60
80
100
120
140
160
180
200
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2.6
3.1
3.8
4.3
5.1
5.8
6.6
7.8
9.1
10.4
11.8
13.3
14.7
16.8
0
2
4
6
8
10
12
14
16
18
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Guangdong’s Registered Car Population*
(No. of vehicles in million)
PRC’s Registered Car Population*
(No. of vehicles in million)
14%14%
37. B.37
China Sold ~28m Vehicles in 2016
22
23 25
13
0
5
10
15
20
25
30
2013 2014 2015 2016 1H 2017
Vehicle Sales in China
(No. of vehicles in million)
14%
Source: China Association of Automobile Manufacturers (中國汽車工業協會)
7%
Calendar Year
5%
14%
28
Purchase tax benefit for small-engine passenger cars was reduced
Tax rate increases from 5% (2016) to 7.5% in 2017 and will return to
the pre-tax cut level of 10% in 2018
4%
38. B.38
China – World’s Largest Vehicle Sales Market in 2016
8th consecutive year since 2009
* Include passenger and commercial vehicles, but exclude motorcycles
Source: China Association of Automobile Manufacturers (中國汽車工業協會), International Organisation of Motor Vehicle Manufacturers (OICA) www.oica.net,
Bureau of Economic Analysis (U.S. Department of Commerce) wwww.bea.gov
28
18
25
17
5.0
3.5 3.4 3.1 2.6 2.3 1.9 1.8 1.6
0
5
10
15
20
25
30
China U.S.A. China U.S.A. Japan Germany India U.K. Brazil France Canada South
Korea
China
1st 2nd 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th
2016 2015 1994
Motor Vehicle* Sales (Top 10 Countries)
(No. of vehicles in million)
14% yoy
ChinaChina
1stRanking:
China
1st
41. B.41
Board of Directors 8
Audit
Committee
Remuneration
Committee
Executive Directors 4
Sir Gordon Ying Sheung WU KCMG, FICE * (Chairman)
Mr. Eddie Ping Chang HO (Vice Chairman)
Mr. Thomas Jefferson WU# (Managing Director)
Mr. Alan Chi Hung CHAN (Deputy Managing Director)
Independent Non-Executive Directors
(50% of the Board of Directors)
4
Professor Chung Kwong POON GBS, JP, PhD, DSc
Mr. Yuk Keung IP
Mr. Brian David Man Bun LI JP
Mr. Alexander Lanson LIN
√
Chairman
√
-
Chairman
√
√
-
HHI Board of Directors
* Also as Alternate Director to Mr. Eddie Ping Chang HO
# Also as Alternate Director to Sir Gordon Ying Sheung WU
42. B.
Senior Management
42
Sir Gordon Ying Sheung WU KCMG, FICE – Chairman
Aged 81, one of the founders and visionary leader
Pioneer in property and infrastructure sector
Established solid foundation and set the stage for company’s continued
achievements
Mr. Thomas Jefferson WU – Managing Director
Aged 45, the mastermind for business breakthrough
Taking up various management roles since he joined HHL in 1999
Active involvement in strategic planning and organisation performance review
Director of the Year Award 2010, Asian Corporate Director Recognition Award
2011, 2012 & 2013 and named the Asia’s Best CEO (Investor Relations) 2012,
2013 & 2014 with his accredited professionalism
Mr. Alan Chi Hung CHAN – Deputy Managing Director
Aged 58, appointed as the Deputy Managing Director of HHI since 2003
Key role in project coordination, project finance, management & administration
of the expressway infrastructure and other projects of the Company in the PRC
43. B.43
Toll Collection Periods
GS Superhighway Western Delta Route
Route
Guangzhou, Dongguan, Shenzhen
and Hong Kong
Guangzhou – Zhuhai
Length 122.8km 97.9km
Type
3 x 3 closed system expressway
(Wudianmei-Taiping, Fuyong-Hezhou:
5 x 5 lanes)
3 x 3 closed system expressway
No. of toll plazas 22 16
Design Speed 120km / hour 100km / hour
Official opening
1 Jul 1997
(Trial operation: Jul 1994)
Phase I West (30 Apr 2004)
Phase II West (25 Jun 2010)
Phase III West (25 Jan 2013)
Toll Collection Period
30 years
from 1 Jul 1997 to 30 Jun 2027
Phase I West (30 years, Sep 2003 to 2033)
Phase II West (25 years, Jun 2010 to 2035)
Phase III West (25 years, Jan 2013 to 2038)
50%: 1 Jul 1997 – 30 Jun 2007
48%: 1 Jul 2007 – 30 Jun 2017
45%: 1 Jul 2017 – 30 Jun 2027
JV Partner Guangdong Provincial Highway Construction Co Ltd
Profit Sharing Ratio 50%
45. B.
20
30
40
50
60
70
80
90
100
110
120
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
GS Superhighway – Average Daily FLE Traffic
45
FY16 FY17 change
Avg Daily FLE Traffic 92k 99k ↑8%
GS – Average Daily FLE Traffic# (since 2000)
(No. of vehicles ‘000)
N1
N2N2N2 N2
N4
N5
N6
N7 N8
# Excludes toll-free FLE traffic
N1: Tariff cut became effective on 1 Jun 2012
N2: Holiday Toll-free Policy was implemented
N3: Chinese New Year started on 28 Jan in year 2017 and 8 Feb in year 2016
N4: i) Impact of lower traffic (usually during the 1st two weeks of CNY) carried over into Mar-15. Since CNY came later in 2015 compared with 2016, which resulted in a lower base
ii) Closure of slow lanes on Chuancha Bridge near Machong for maintenance (Northbound 16 Mar 2016 to end-May 2016; Southbound 22 Mar 2016 to mid-May 2016)
N5: Apr 2016 growth was affected by (i) reason in N4ii; (ii) one more day of toll-free holiday in Apr 2016 compared to Apr 2015
N6: One less day of toll-free holiday in May 2016 compared to May 2015
N7: Aug 2016 growth was affected by bad weather caused by Typhoon Nida during 2-3 Aug 2016
N8: Lower base in 2015 due to the 70th anniversary of the victory of the Chinese People’s war of resistance against Japanese aggression holidays on 3-5 Sep 2015
N9: One more day of toll-free holiday in Apr 2017 and one less day of toll-free holiday in May 2017 compared to the corresponding months in 2016, i.e. Ching Ming Festival
from 2-4 Apr in 2017 (2-4 Apr in 2016) and Labour Day holiday from 29 Apr - 1 May in 2017 (30 Apr - 2 May in 2016)
N10: One more day of toll-free holiday in Oct 2017 compared to Oct 2016, i.e. National Day holiday from 1-8 Oct in 2017 (1-7 Oct in 2016)
N3
N3
N9
N9
N10
46. B.
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
GS Superhighway – Average Daily Toll Revenue
46
GS – Average Daily Toll Revenue^ (since Jul 1994)
(RMB ‘000) FY16 FY17 change
Avg. Daily Toll (RMB) 8,682k 9,169k ↑6%
N1
N2N2N2 N2
N4
N5
N6
N7
N8
^ Including tax
N1: Tariff cut became effective on 1 Jun 2012
N2: Holiday Toll-free Policy was implemented
N3: Chinese New Year started on 28 Jan in year 2017 and 8 Feb in year 2016
N4: i) Impact of lower traffic (usually during the 1st two weeks of CNY) carried over into Mar-15.Since CNY came later in 2015 compared with 2016, which resulted in a lower base
ii) Closure of slow lanes on Chuancha Bridge near Machong for maintenance (Northbound 16 Mar 2016 to end-May 2016; Southbound 22 Mar 2016 to mid-May 2016)
N5: Apr 2016 growth was affected by (i) reason in N4ii; (ii) one more day of toll-free holiday in Apr 2016 compared to Apr 2015
N6: One less day of toll-free holiday in May 2016 compared to May 2015
N7: Aug 2016 growth was affected by bad weather caused by Typhoon Nida during 2-3 Aug 2016
N8: Lower base in 2015 due to the 70th anniversary of the victory of the Chinese People’s war of resistance against Japanese aggression holidays on 3-5 Sep 2015
N9: One more day of toll-free holiday in Apr 2017 and one less day of toll-free holiday in May 2017 compared to the corresponding months in 2016, i.e. Ching Ming Festival
from 2-4 Apr in 2017 (2-4 Apr in 2016) and Labour Day holiday from 29 Apr - 1 May in 2017 (30 Apr - 2 May in 2016)
N10: One more day of toll-free holiday in Oct 2017 compared to Oct 2016, i.e. National Day holiday from 1-8 Oct in 2017 (1-7 Oct in 2016)
N3
N3
N9
N9
N10
48. B.
Per Capita GDP Surpassed RMB20,700 (US$3,000)
– Start to Buy Cars
4848
71,459
163,688
132,894
53,230
289,361
462,047
51,02153,980
82,645
115,642
139,644
195,464
362,595
11,227
99,157
0
100,000
200,000
300,000
400,000
500,000
M
acau^Singapore^H
ong
Kong^
South
K
orea^Shenzhen*G
uangzhou
Zhuhai
FoshanZhongshanD
ongguan
H
uizhou
PR
C
Jiangm
en
Zhaoqing
India^
PRD cities
20,700^
(US$3,000)
2016 Per Capita GDP of PRD Cities vs Other Countries/Cities
(RMB)
Source: Guangdong Statistical Year Book 2016, 廣東省及各市區國民經濟和社會發展統計公報, Hong Kong Census & Statistics Department and Macao Statistics &
Census Service, Bloomberg, Department of Statistics Singapore, Statistics Korea, CEIC
^ Based on exchange rate RMB1 = HK$1.11664; RMB1 = MOP1.202119; RMB1=USD0.1451; RMB1=SGD0.2018; RMB1=KRW163.467
* Estimated data for Shenzhen
49. B.
Car Ownership In Guangdong
4949
Source: Guangdong Statistical Year Book 2016, 廣東省及各市區國民經濟和社會發展統計公報, Hong Kong Transport Department & Macao Statistics and
Census Service, CEIC
* Estimated data for PRD, Zhuhai, Shenzhen, Guangzhou
298
272 271 267
257
225 216
184 183 179
164
152
134 134 133
101 100
0
50
100
150
200
250
300
Zhuhai*D
ongguan
FoshanShenzhen*
Zhongshan
Zhejiang
province
PRD
*
M
acauH
uizhou
Jiangsu
province
G
uangzhou*
G
uangdong
province
PRCJiangm
enShanghai
H
ong
K
ongZhaoqing
2016 Vehicle Ownership per 1000 Persons
PRD cities
50. B.5050
Car Population of PRD Cities in 2016
0.75
0.12
2.30
3.18
2.25
2.02
0.83
0.50 0.61
0.88
0.41
0
1
2
3
4
5
6
7
8
9
10
PRC
Guangdong
province
PRD*
HongKong
Macau
Guangzhou*
Shenzhen*
Dongguan
Foshan
Zhongshan
Zhuhai*
Jiangmen
Huizhou
Zhaoqing
(vehicles
in million)
7.73m vehicles
(42% of Guangdong
province)
14.0%
13.8%
2.8%
1.0%
21.7%
14.0%
17.1%
22.5% 17.8%
36.2%
28.5%
185.59
16.76
⌇
190
Source: Guangdong Statistical Year Book 2016, 廣東省及各市區國民經濟和社會發展統計公報, Hong Kong Transport Department & Macao Statistics
and Census Service
* Estimated data for PRD, Zhuhai, Guangzhou, Shenzhen
3.35m vehicles
(20% of Guangdong
province)
2.4%
Cities along GS Cities along West Route Other Cities
⌇
16
10.7%
12.89
▼0.1%
51. B.
Per Capita GDP of PRD Cities in 2016
51
72,290
113,274
139,644
163,688
82,645
115,642
99,157
132,894
53,230
71,459
51,021
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
220,000
240,000
Guangdong
province
PRD*
HongKong^
Macau^
Guangzhou
Shenzhen*
Dongguan
Foshan
Zhongshan
Zhuhai
Jiangmen
Huizhou
Zhaoqing
(RMB)
- Higher than Dongguan’s
- Zhuhai is close to
Guangzhou’s
7.7%
6.8%
4.2%
6.4%
8.7%
7.4%
5.7%
7.2%
7.4%
8.2%
5.1%
Source: Guangdong Statistical Year Book 2016, 廣東省及各市區國民經濟和社會發展統計公報, Hong Kong Census & Statistics Department and Macao
Statistics & Census Service
^ Based on exchange rate RMB1 = HK$1.11664; RMB1 = MOP1.202119
* Estimated data for PRD, Shenzhen
462,047
289,361⌇
500,000
8.5%
Cities along GS Cities along West Route Other Cities
4.5%
52. B.5252
GDP of PRD Cities in 2016
2,134
298
1,961 1,949
683
863
320
223 242
341
208
0
500
1,000
1,500
2,000
2,500
3,000
Guangdong
province
PRD
HongKong^
Macau^
Guangzhou
Shenzhen
Dongguan
Foshan
Zhongshan
Zhuhai
Jiangmen
Huizhou
Zhaoqing
(RMB’ bn) 7.5%
8.2% 9.0%
8.1%
8.3%
7.8% 8.5% 7.4%
8.2%
5.0%
Source: 廣東省及各市區國民經濟和社會發展統計公報, Hong Kong Census & Statistics Department & Macao Statistics and Census Service
^ Based on exchange rate RMB1 = HK$1.11664; RMB1 = MOP1.202119
1.9%
▼2.1%
8.3%
RMB4,593 billion
(58% of Guangdong
province)
RMB1,406 billion
(18% of Guangdong
province)
Cities along GS Cities along West Route Other Cities
7,951
6,791
⌇
8,000
