Hubei Transport Investment Logistics streamlines risks and expands green industrial layout amid quality-focused growth

The logistics arm of Hubei Communications Investment Group has moved away from blind pursuit of business scale and prioritised development quality in the first half of the year. The enterprise has cut high-risk external trading activities to strengthen risk resilience, while expanding into transport new materials and low-carbon green logistics. Strategic reforms including a restructured three-way governance framework and the launch of the Chulian Tong digital supply chain platform have lifted its return on equity to 17.9 per cent. Operating cash receipt ratio rose by 17.6 per cent year-on-year, alongside consistent improvements to key metrics such as the debt-to-asset ratio. Operational risk resistance and long-term commercial sustainability have been markedly enhanced.

Targeted risk control and institutional restructuring establish robust safeguards for steady operations. The logistics subsidiary has carried out comprehensive operational reviews to map business profiles, risk exposure and accountability frameworks. External trading activities classified as high-risk, low-yield and misaligned with core business priorities have been phased out, accounting for 35 per cent of total external trade volume recorded in 2025. Organisational structures and responsibility mechanisms have been overhauled to deliver centralised management covering contracts, risk assessment, capital deployment, finance and data. A separation of operational rights, financial authority and cargo control has been implemented, reinforcing three-tier risk defences. Systematic classification and refined management consolidate internal control foundations to support stable, sustainable corporate operations.

Focus on core operations and external market expansion consolidates fundamental revenue streams. Multiple major transport infrastructure schemes across Hubei Province, including the west extension of the Qiao-Xiao Expressway, the Er-Guang Expressway upgrade and the Xiang-Yi Expressway, have generated intensive demand for construction materials. The logistics team coordinates supply schedules to match construction progress and adjusts material allocation plans dynamically to meet on-site requirements. Flexible contingency arrangements prevent supply disruptions for critical projects.

Throughout the first half of the year, the enterprise supplied building materials for more than 30 infrastructure projects, delivering 2.92 million tonnes of cement, 920,000 tonnes of steel and manufacturing and selling 159,000 tonnes of bitumen. It continues to explore external commercial opportunities alongside core project supply. The business secured an earthwork supply contract exceeding 1.4 million cubic metres for the Han-Yi Expressway renovation scheme and won a cement supply tender for the Nanzhang pumped storage power station, marking its first entry into pumped storage new infrastructure procurement. Broader external market development unlocks fresh momentum for revenue growth.

New business cultivation and efficiency upgrades create alternative growth drivers. Continuous investment flows into transport new material research and the development of green logistics networks to foster diversified growth channels. The enterprise presses ahead with planning and investment attraction for the Hubei Transport Investment Automotive Supply Chain Industrial Park and Suizhou Smart Supply Chain Park. A fleet of 95 new energy heavy trucks, mixers and on-site work vehicles has been deployed for expressway reconstruction and maintenance projects, achieving an overall attendance rate of 90 per cent. More than 30 charging piles have been installed, widening coverage of green construction site solutions.

As a core player within the transport new materials industrial chain, the firm advances technical breakthroughs in prefabricated components, reclaimed bitumen recycling, high-performance waterproof materials and low-carbon bitumen formulations. Research targets key technologies such as recycled bituminous concrete and decoupled low-carbon modified bitumen, alongside the rollout of innovative products including anti-adhesive waterproof membranes. Production preparations for an expansion joint production line are underway. The subsidiary manufactured and sold 16,600 tonnes of steel mesh and 14,800 sets of bridge bearings in the first half of the year.

Digital infrastructure delivers technical backing for refined management. Chulian Tong, the integrated supply chain platform developed by the logistics subsidiary under Hubei Communications Investment Group, went live at the end of the second quarter, supporting standardised, integrated and intelligent supply chain management. Built around centralised control, real-time visibility and full traceability, the platform embeds compliance and risk management protocols within digital workflows. It functions as a unified group-wide service hub for end-to-end supply chain coordination, consolidating industry resources, mitigating operational risks and streamlining cross-department collaboration. The system lifts standards for business processes, financial-operation integration and digital risk monitoring, forming a technological foundation for resilient supply chains and industrial upgrading.

All trading operations of the logistics subsidiary have migrated onto Chulian Tong, enabling comprehensive digital oversight and traceable operational data. Under tiered review protocols, the platform has processed more than 1,700 trade contracts from group affiliates and rejected over 1,200 submissions, delivering effective safeguards for capital security.