Longjiang Transportation: Main Business Demonstrates Resilience, "One Body, Two Wings" Builds a New Growth Curve

On March 31, Longjiang Transportation (601188.SH) released its 2025 annual report. During the reporting period, the company achieved operating revenue of RMB 770 million and net profit of RMB 168 million. As of the end of 2025, the company’s total assets were RMB 6.15B and net assets attributable to shareholders of listed companies were RMB 4.47B. Although operating revenue declined to some extent due to adjustments in the accounting method for the trading business, the company’s core main business remained steady, and its new energy and new materials industries accelerated their implementation, demonstrating the solid results of the “one body, two wings” strategy. In addition, the company plans to distribute cash dividends of RMB 0.52 per 10 shares to all shareholders, continuing the good tradition of consecutive dividend payments since its listing, and earnestly fulfilling its commitments to reward shareholders and stabilize the capital markets.

Main Business Goes Smart, Asset-Light Expansion

As the core carrier of the company’s “one body, two wings” strategy, the highway expressway main business continued to play the role of the “anchor” in 2025. Through both smart upgrades and asset-light output, it achieved improvements in operational quality and efficiency, as well as in brand value, driving a double enhancement.

As “Heilongjiang’s first road,” the Harbin–Daqing–Hulun? Harbin–Dalian? (Harbin–Daqing–?), the Harbin–Daqing? Highway (Hàdà) achieved toll revenues of RMB 350 million for the full year, up 2.42% year over year, becoming the core source of stable cash flow. The company deepened the “one road, multiple parties” mechanism for integrated coordination among road, police, and enterprise entities, and relied on a smart highway management and control service platform to provide efficient access assurance during major holidays and special periods such as ice and snow festivals and the Asian Winter Games. In terms of smart operations, the Harbin–Dalian? Highway continued to optimize a new smart cloud tolling model covering all scenarios. Combined with the video cloud联网 system and the AR on-site map command system, it achieved full coverage monitoring for key road sections. At the same time, it promoted intelligent technologies such as lightweight patrol inspections and unmanned aerial vehicle inspections. Throughout the year, it completed 388 pothole repairs, sealed 371 kilometers of pavement cracks, and conducted 26 snow-clearing operations, improving road safety and traffic efficiency in parallel.

More importantly, leveraging the mature management experience and smart solutions accumulated on the Harbin–Dalian? Highway, Longjiang Transportation extended its approach from “heavy-asset investment” to “heavy-asset + asset-light operations.” The successful implementation of the asset-light operations model became an important incremental driver of main-business growth. The company won the bid for a 183-kilometer toll operation and management project and a 106-kilometer routine maintenance service project on the Suining–Daqing? Expressway. This marked the successful output of the company’s brand value and management standards. Without increasing a large amount of capital expenditure, it broadened its revenue sources and accumulated valuable experience for the company’s future outward/expansion growth. In addition, the company continued to press ahead in the road-adjacent economy. Service areas such as those in Zhaodong and Anda, by introducing local characteristics and upgrading commercial formats, are gradually transforming into integrated service hubs combining transportation, tourism, and commerce, further enhancing the brand’s added value.

Apart from expressways, the company’s other existing businesses continued to improve quality and efficiency. In its taxi business, Longyun Modern, as the largest taxi operator in Heilongjiang Province, advanced the integrated model of “patrol-network rental +.” The street-hail taxi charge rate reached 93.5%, and the ride-hailing business successfully entered the Yangtze River Delta market. Meanwhile, the company’s 2 charging stations and 40 charging piles were put into operation, completing its charging-pile business layout. The company’s bulk procurement trading business deeply practiced the core model of “procure according to sales,” using precise anchoring of market demand to plan procurement timing, effectively strengthening its line of defense against operating risks. In key business areas, leveraging stable supply capability, high-quality product and service offerings, and a deep accumulation of market experience, the company has continued to occupy the leading position in the province’s supply of petroleum asphalt for expressways. It has become a core supplier of petroleum asphalt products for regional road construction, providing solid保障 for the development of transportation infrastructure. In the real estate business, Xintong Development sped up the disposal of end-stage inventory. In a downturn, it sold 5 villas and 127 apartments. The end-stage inventory disposal rate reached 34.25%. For the full year, it achieved operating revenue of RMB 140 million and a total profit of RMB 22.04 million.

Two Wings Break Through and Build New Growth Curves

The new energy and new materials industries, as the core growth engine of Longjiang Transportation’s “one body, two wings” strategy, saw remarkable achievements in technological breakthroughs and scale expansion in 2025, injecting strong momentum into the company’s long-term development.

The clean energy industry achieved a “solar PV + hydropower” dual-wheel drive, expanding from a single-point layout to a comprehensive energy operator. As the pioneer segment, the solar PV business is particularly outstanding in its development model and results. As a new energy business platform, Heilongjiang Transportation Longyuan Investment Co., Ltd. adopts a flexible model of “self-operation + acquisition” to rapidly expand its industrial scale. During the reporting period, the company’s solar PV projects covered more than 140 locations, with total installed capacity reaching 21.28 MW and annual total electricity generation of 17.72 million kWh. This performance stems not only from an increase in the number of projects, but also from the company’s unique resource advantages in scenarios such as along expressways and in logistics parks, as well as from its capability to design sustainable new-energy solutions.

The company’s solar PV business did not stop at purely the power generation stage. Instead, it implemented refined management through digital and intelligent technologies, while simultaneously laying out energy storage systems and charging facilities. Longjiang Transportation has put into operation energy storage systems of 830 kWh and charging facilities of 480 kW, indicating that the company has initially built a mature operating model of “solar PV + energy storage + charging.” This lays a solid foundation for the company to participate in market-based electricity trading in the future, to provide peak-shaving services, and to expand the charging service market. Its new energy business profit model and ability to withstand volatility have been strengthened.

At the same time, the company also made important breakthroughs in hydropower. During the reporting period, Longjiang Transportation completed the acquisition of 100% of the equity interests of Heilongjiang Water Transport Construction and Development Co., Ltd. (abbreviated as the “Water Transport Company”) and achieved operating revenue of RMB 167 million, contributing profits of more than RMB 450k, marking the company’s successful entry into the hydropower track. As a baseload energy source, hydropower offers advantages of stable output and predictable cash flows, which can effectively hedge the intermittent volatility risks of new energy sources such as solar PV. The Dadingzishan hydropower aviation? (Dadingzishan)? power hub not only has power generation functions, but also maintains stable shipping-related returns, and is expected to become a new pillar for the company’s performance growth. This acquisition not only quickly expanded the company’s clean energy scale and formed an energy structure complemented by “solar PV + hydropower,” providing the company with continuous and stable revenue contributions, but also laid a solid foundation for the company’s future business transformation and carbon asset reserves.

In the new materials segment, Longjiang Transportation seized the global energy transition, closely followed the development boom of solid-state batteries, and focused on the full industrial chain layout of graphite. On the resource side, relying on Heilongjiang Province’s rich graphite resources, the company obtained the controlling equity interest in the Gongnong? Rural? (工农村?) graphite mine by acquiring 60% equity of Longxin New Materials. In 2025, the mine expansion project received approvals from the Ministry of Natural Resources. The mining permit certificate increased the mine’s annual production capacity from 450k tons to 2 million tons. This scarce and large-scale resource reserve provides solid and reliable raw material support for the long-term development of the company’s new materials industry, building a strong upstream barrier.

The R&D side saw fruitful results. In 2025, Longjiang Transportation’s R&D investment increased by 452.58% year over year. Its subsidiary, Graphite Technology, obtained recognition as a national high-tech enterprise. During the year, it added 8 patents and 4 software copyrights. For key product processes, it achieved substantive breakthroughs in the preparation processes of expandable high-purity graphite and high multiple ratio products, moving from small-scale trials to pilot-scale trials. Two low-salt and high-purity products have achieved stable commercial production, accelerating the deployment process of the graphite industry. The company’s R&D priorities are clear: it conducts research around four main goals—“application in large flake protection, spherical graphite materials for fast charging anodes, improving beneficiation recovery rate, and increasing the comprehensive yield of spherical graphite.” By jointly building innovation alliances with universities, scientific research institutions, and downstream application companies, the company is working to accelerate the transformation and commercialization of research results, providing core technical support for the soon-to-start joint project for mining and processing 2 million tons of graphite ore per year.

Three-Pronged Approach, Sprinting the “Strategic Deepening Year”

As 2026 is the first year of the national “15th Five-Year Plan” period? “Fifteen Five”? (十五五) rollout, Longjiang Transportation has set a clear roadmap for its “Strategic Deepening Year.” The company said it will rely on three key directions: capacity expansion and renovation of the Harbin–Dalian? Highway, integrated development of the graphite industry, and efficiency improvements in the new energy industry. In 2026, it strives to achieve operating revenue of RMB 800 million and a total profit of RMB 250 million.

On the main business front, Longjiang Transportation will fully advance the Harbin–Dalian? expressway capacity expansion and renovation project, aiming to have it included in the Ministry of Transport’s “15th Five-Year” construction plan. If the project is implemented, it will greatly extend the company’s operating cycle and bring new investment returns. At the same time, the company will continue deepening its digital transformation to build a smart transportation service system that realizes “people’s journeys,” further deepen smart maintenance models, and improve contingency plans for extreme weather. It will continuously promote age-friendly upgrades of service areas and expansion of charging facilities, enhancing comprehensive service support capabilities.

For the new industries, in the new energy segment, Longjiang Transportation will explore high-quality investment projects within the province to expand the scale of solar PV projects put into operation, striving for annual revenue to exceed RMB 10 million. The Dadingzishan hydropower station will expand external growth space and shape a professional brand for power installation and solar PV project operations. For the graphite industry, it will advance qualification upgrades and industry brand building to improve core competitiveness. In 2026, it will focus on advancing the preliminary design of the 2-million-ton mining and processing joint project. Centered on the construction of green mine intelligence and intelligent mines, by pushing the work in overlapping phases and enabling cross-operation, it will accelerate early-stage project advancement. It plans to complete the compilation of the preliminary design, conduct the compilation and approval work for special reports related to mine development construction drawings design, safety facilities design, environmental impact assessments, water and soil conservation, land pre-examination, forest land surveys, and other required reports, to ensure completion of the annual investment plan.

In 2025, Longjiang Transportation successfully achieved the target of a “Strategic Implementation Year.” Sound main-business operations and breakthroughs in new business growth formed a positive interaction. In 2026, with the launch of the “15th Five-Year” plan and the scaled implementation of new industries, the growth potential in three major areas—smart upgrades for expressways, integrated operations of new energy, and industrialization of graphite—will continue to be released. The deepening of the “one body, two wings” strategy is expected to drive the company to achieve higher-quality development and create long-term value for investors.

（CIS）

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