This highway company’s revenue in 2025 is expected to increase by 30% year-over-year, while profits plummet by 90%, with outstanding debt exceeding 3 billion yuan | Bond Market Financial Report Observation

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Cailian Press, April 2 (Editor: Yang Bin, Intern: Xie Yanru) Recently, Jiangsu Yangtze River Expressway Co., Ltd. (hereinafter referred to as “Yangtze River Company”), a bond-issuing enterprise, disclosed its 2025 financial data. For the whole year, the company achieved total operating revenue of 6.86 billion yuan, up 30.71% year on year. By contrast, the company’s 2025 net profit attributable to shareholders amounted to 32.7638 million yuan, down 93.31% year on year, showing a situation of “increasing revenue but not increasing profit.”

Public information shows that Yangtze River Company was established on August 17, 2001, with registered capital of 397,645.34 million yuan. The company’s main businesses are highway construction, management, maintenance, and toll collection, and it also operates businesses including vehicle repair, catering services, merchandise sales, and advertising design.

In terms of its equity structure, the People’s Government of Jiangsu Province, by controlling Jiangsu Transportation Holding Co., Ltd., holds 55.46% of Yangtze River Company’s equity, making it the company’s ultimate actual controller.

According to Wind data, as of the end of 2025, the company’s total assets were 20.648 billion yuan, total liabilities were 10.093 billion yuan, the asset-liability ratio was 48.88%, and return on net assets (ROE) was 0.31%. On the liabilities side, the company’s total liabilities have shown a year-by-year upward trend; the figures at the end of 2023, 2024, and 2025 were 6.30 billion yuan, 8.846 billion yuan, and 10.093 billion yuan, respectively.

From the perspective of profitability, Yangtze River Company’s “increased revenue but not increased profit” in 2025 is mainly attributable to the increase in business costs.

According to Wind data, in 2025, Yangtze River Company’s revenue from engineering construction contracts, tender agency services, and tourism services totaled 5.918 billion yuan. While this is the largest source of revenue, it has no gross profit. Vehicle toll revenue was 828 million yuan, with gross profit of 204 million yuan, and the gross profit margin fell from 51.69% in 2023 to 24.61%. Other businesses account for a smaller share. The clearing and obstacle removal business has been loss-making for three consecutive years; in 2025, the loss was 45.7052 million yuan. On the cost side, in 2025, the company’s sales cost ratio rose to 96.16%, eroding most of its revenue. In terms of cash flow, the company recorded net cash outflow from investing activities of 2.805 billion yuan, and financing pressure increased.

In terms of short-term solvency, Yangtze River Company exhibits the characteristics of “leverage rising and short-term pressure mounting.” The proportion of current assets to total assets is relatively low, and this ratio fell sharply from 30.7% at the end of 2023 to 4.41% at the end of 2025. Although the interest-bearing liabilities ratio is low at 1.75%, the EBITDA interest coverage ratio dropped sharply from 8.89x to 2.12x, indicating a decline in short-term debt-paying ability.

Regarding outstanding debt instruments, based on inquiries, Yangtze River Company currently has only 1 outstanding ABS product, with a size of 3.054 billion yuan and a remaining term of 6.78 years. This product is issued with Yangtze River Company as the original rights holder, bundling the toll collection rights of the Shanghai–Suzhou–Zhejiang Expressway. The funds raised are mainly used for the reconstruction and expansion project of the Taicang to Changzhou section of the Huwu Expressway.

（Cailian Press Yang Bin, Intern Xie Yanru）