Revenue and Profitability - The Group's revenue for the six months ended June 30, 2023, was RMB 257.1 million, a decrease from RMB 86.1 million in the same period of 2022[12]. - For the six months ended June 30, 2023, the Group's total revenue decreased by approximately RMB171.0 million, or approximately 66.5%, from approximately RMB257.1 million to approximately RMB86.1 million[31]. - Revenue from construction services decreased by approximately RMB135.7 million, or approximately 92.3%, from approximately RMB147.0 million to approximately RMB11.3 million[32]. - Revenue from equipment operation services decreased by approximately RMB34.3 million, or approximately 32.2%, from approximately RMB106.4 million to approximately RMB72.1 million[33]. - Gross profit for the same period was RMB 6,024,000, down 74.9% from RMB 24,086,000 in 2022[190]. - The Group's overall gross profit margin decreased by 2.4 percentage points, from 9.4% to 7.0%[43]. - Loss for the period increased to RMB 70,722,000, compared to a loss of RMB 36,824,000 in the previous year, representing a 91.9% increase[192]. - Loss before taxation was RMB 68,930,000, up from RMB 40,464,000 in 2022, indicating a 70.2% increase[190]. Financial Position and Ratios - The Group's gearing ratio increased to 24.6% as of June 30, 2023, compared to 17.3% at the end of 2022[16]. - Current ratio improved slightly to 1.6 as of June 30, 2023, from 1.5 at the end of 2022[16]. - The net current assets of the Group were approximately RMB 368.8 million as of June 30, 2023, representing a decrease of approximately RMB 5.4 million compared to RMB 374.2 million as of December 31, 2022[109]. - As of June 30, 2023, total net assets decreased to RMB 700,912,000 from RMB 771,974,000 as of December 31, 2022, representing a decline of approximately 9.1%[198]. - Current assets decreased to RMB 966,145,000 from RMB 1,147,451,000, a reduction of about 15.8%[198]. - Current liabilities decreased to RMB 597,391,000 from RMB 773,205,000, showing a decrease of approximately 22.7%[198]. - Loans and borrowings under non-current liabilities decreased to RMB 67,393,000 from RMB 103,246,000, a decline of about 34.7%[198]. - Cash and cash equivalents decreased to RMB 95,306,000 from RMB 149,817,000, a reduction of approximately 36.4%[198]. - Trade and other payables decreased to RMB 451,021,000 from RMB 549,108,000, reflecting a decrease of about 17.8%[198]. - Contract assets decreased to RMB 225,090,000 from RMB 280,659,000, a decline of approximately 19.8%[198]. - The total equity remained unchanged at RMB 700,912,000, indicating stability in capital and reserves despite fluctuations in other areas[198]. Cash Flow and Financing Activities - The Group's net cash used in financing activities increased from approximately RMB 110.4 million in the first half of 2022 to around RMB 129.2 million in the first half of 2023[25]. - The Group's financing activities net cash increased from approximately RMB 110.4 million to approximately RMB 129.2 million, reducing the debt amount as of June 30, 2023[27]. - Finance costs decreased from RMB 11.9 million for the six months ended June 30, 2022, to RMB 7.6 million for the same period in 2023, a reduction of RMB 4.3 million[98]. Impairment and Credit Risk - An impairment loss of RMB 43.0 million was recognized against the carrying amount of property, plant, and equipment, which was written down to a recoverable amount of RMB 340.7 million[96]. - The company reported an impairment loss on trade and other receivables of RMB 35,780,000, slightly down from RMB 36,375,000 in the previous year[190]. - The Group's credit risk is primarily attributable to trade receivables, bills receivable, and contract assets, with retention money potentially retained by customers to secure contract performance[55]. - The Group ceased tendering for construction projects with certain real estate developers to mitigate credit risk and has initiated legal actions against some subsidiaries of these developers[79]. Research and Development - Research and development costs decreased by approximately RMB8.1 million, from RMB11.5 million to RMB3.4 million, due to minimal research and development activities[49]. - Research and development expenses decreased significantly from RMB 11.5 million for the six months ended June 30, 2022, to RMB 3.4 million for the same period in 2023, reflecting a reduction in R&D activities[53]. Corporate Governance and Shareholding - The Board of Directors consists of three Executive Directors, three Non-executive Directors, and three Independent Non-executive Directors, ensuring a balanced governance structure[148]. - The Company has complied with all applicable code provisions of the Corporate Governance Code, except for the separation of the roles of Chairman and Chief Executive Officer[136]. - The company has a significant concentration of ownership, with the top two shareholders holding over 57% of the total shares[165]. - As of June 30, 2023, Mr. Xun MH holds 319,380,375 ordinary shares, representing 51.10% of the company's shareholding[165]. - Mr. Xun LB holds 41,419,719 ordinary shares, representing 6.63% of the company's shareholding[165]. - The company has undergone an independent review of its interim financial report by KPMG, in accordance with Hong Kong standards[178]. Other Financial Information - The Group's income tax expenses for the six months ended June 30, 2023, were approximately RMB 1.8 million, compared to an income tax credit of approximately RMB 3.6 million in 2022[99]. - The Group aims to improve liquidity while exploring new business opportunities to create long-term value for shareholders[29]. - The Group continues to manage its assets actively to improve its financial condition[27]. - The Group is focusing on improving its liquidity position by reducing capital expenditures and managing its assets effectively[24]. - The Group did not have any significant investments, material acquisitions, or disposals during the six months ended June 30, 2023[128].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Jianzhong Construction Development Limited 建中建設發展有限公司 （於開曼群島註冊成立的有限公司） （股份代號：589） 截至2023年6月30日止六個月的未經審核中期業績公告 建中建設發展有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈本公司及其附屬 公司（統稱「本集團」）截至2023年6月30日止六個月的未經審核綜合業績連同截至2022年 6月30日止六個月或其他日期╱期間的比較數字如下： 財務摘要 • 收益由截至2022年6月30日止六個月的約人民幣257.1百萬元減少約66.5%至截至 2023年6月30日止六個月的約人民幣86.1百萬元。 • 毛利由截至2022年6月30日止六個月的約人民幣24.1百萬元減少約75.1%至截至2023 年6月30日止六個月的約人民幣6.0百萬元。毛利率由截至2022年6月30日止六個月 的約9.4%下降約 ...

Financial Performance - Total revenue for 2022 was RMB 1,142.9 million, a decrease from RMB 1,667.5 million in 2021, representing a decline of approximately 31.4%[17] - Gross profit for the overall business was RMB 9.3 million in 2022, down from RMB 132.0 million in 2021, indicating a significant drop of about 92%[18] - The overall gross profit margin decreased to 1.8% in 2022 from 11.6% in 2021, reflecting a decline of 84.4%[19] - The Group's revenue for the year ended 31 December 2022 decreased by approximately RMB618.3 million, or approximately 54.1%, from approximately RMB1,142.9 million to approximately RMB524.6 million[52] - Revenue for the year ended December 31, 2022, decreased by approximately RMB618.3 million, or approximately 54.1%, to approximately RMB524.6 million from approximately RMB1,142.9 million for the year ended December 31, 2021[58] - Construction services revenue declined by approximately RMB541.2 million, or approximately 63.3%, to approximately RMB313.6 million for the year ended December 31, 2022, compared to approximately RMB854.8 million for the previous year[58] - Revenue from equipment operation services decreased by approximately RMB39.5 million, or approximately 16.2%, to approximately RMB204.3 million for the year ended December 31, 2022[58] - The Group recorded other net loss of approximately RMB56.1 million for the year ended December 31, 2022, compared to a net gain of approximately RMB51.2 million in 2021[67] - The Group incurred a net loss of approximately RMB216.1 million for the year ended 31 December 2022, compared to a loss of approximately RMB94.0 million in 2021[128] - Basic and diluted loss per share for the year ended 31 December 2022 was RMB0.35, up from RMB0.15 per share in 2021[131] Profitability and Efficiency - The return on equity (ROE) was -21.9% in 2022, worsening from -8.6% in 2021, showing a decline in profitability[26] - The return on total assets (ROA) decreased to -9.9% in 2022 from -4.1% in 2021, indicating reduced efficiency in asset utilization[28] - The overall cost of sales decreased by approximately RMB495.6 million, or approximately 49.0%, to approximately RMB515.3 million for the year ended December 31, 2022[60] - The overall gross profit margin decreased by 9.8 percentage points, from 11.6% in 2021 to 1.8% in 2022[65] Financial Position and Leverage - The gearing ratio increased to 40.6% in 2022 from 24.6% in 2021, indicating a rise in financial leverage[22] - The Group's gearing ratio decreased from 40.6% as of 31 December 2021 to 24.6% as of 31 December 2022[36] - The gearing ratio improved to approximately 24.6% as of 31 December 2022, compared to approximately 40.6% in 2021[134] - The Group's net current assets decreased to approximately RMB374.2 million as of 31 December 2022, down from approximately RMB472.1 million as of 31 December 2021[133] Cash Flow and Investments - The Group generated a net operating cash inflow of approximately RMB211.5 million in 2022, down from approximately RMB274.2 million in 2021[38] - The Group's payments for the purchase of property, plant, and equipment decreased by approximately 90.1%, from around RMB290.4 million in 2021 to around RMB28.7 million in 2022[46] - Proceeds from the disposal of property, plant, and equipment increased by approximately 89.4%, from approximately RMB48.3 million in 2021 to around RMB91.5 million in 2022[34] - The Group acquired property, plant, and equipment at a cost of RMB13.5 million during the year ended 31 December 2022, significantly lower than RMB295.4 million in 2021[137] - As of 31 December 2022, the Group had no significant capital commitments contracted but not provided for in the financial statements, compared to approximately RMB12.4 million in 2021[143] Operational Efficiency and Cost Management - The company is focusing on improving operational efficiency and exploring new market opportunities to enhance future performance[31] - Research and development costs reduced by approximately 67.6%, from approximately RMB62.9 million in 2021 to approximately RMB20.4 million in 2022[45] - Administrative and other expenses decreased by approximately 4.3%, from approximately RMB65.1 million to approximately RMB62.3 million[45] - Administrative and other expenses decreased by approximately RMB2.8 million from RMB65.1 million in 2021 to RMB62.3 million in 2022, due to cost reduction measures[73][76] - The finance costs decreased from RMB34.9 million for the year ended December 31, 2021, to RMB24.9 million for the year ended December 31, 2022, indicating improved financial management[121] Credit Risk and Receivables - As of December 31, 2022, the gross carrying amount of trade receivables, bills receivable, and contract assets was approximately RMB1,275.983 million, down from RMB1,510.038 million in 2021[81][82] - Approximately RMB814.4 million of the gross carrying amount was past due as of December 31, 2022, compared to RMB843.5 million in 2021[82] - The Group's credit risk is primarily attributable to trade receivables, bills receivable, and contract assets, mainly from real estate companies and main contractors in China[75][78] - The expected loss rates for trade receivables were 11.5% for current receivables, 17.9% for those less than 12 months past due, and 26.8% for those more than 12 months past due[99] - The accumulated individual loss allowance increased to RMB149.1 million as of December 31, 2022, compared to RMB84.3 million in 2021, reflecting a significant rise in credit risk exposure[105] - The loss allowance for expected credit losses (ECLs) rose from approximately RMB217.7 million as of December 31, 2021, to approximately RMB222.8 million as of December 31, 2022, due to an increase in long-aged debtors[111] Management and Governance - Mr. Yang Kaifa has extensive experience in securities management and the PRC capital markets, having served in various roles at Anhui Conch Cement Company Limited from July 1996 to July 2017[182] - Mr. Wang Wei has over 20 years of experience in the PRC construction industry and has held several positions at Anhui Conch Cement Company Limited since July 1992[190] - Mr. Xun Liangbao served as a deputy officer-in-charge and officer-in-charge at the Anhui Bengbu Municipal People's Government Office from March 1993 to March 2018[191] - Mr. Sze Irons has been an independent non-executive director of several listed companies, including Best Mart 360 Holdings Limited and ST International Holdings Company Limited[199] - Mr. Sze has been a director of Hang Tung Resources Holding Limited since March 1984, responsible for day-to-day management and strategic planning[198] Taxation and Compliance - The Group recognized an income tax credit of approximately RMB8.2 million during the year ended December 31, 2022, down from approximately RMB24.0 million in 2021, due to deferred tax assets and liabilities[124] - Jianzhong Construction Technology obtained state-level approval for High-tech Enterprise qualification in December 2022, entitling it to a reduced tax rate of 15% for three years from 2022 to 2024[125] Strategic Changes - The Group has ceased tendering for construction projects with certain real estate developers to mitigate credit risk exposure[105] - A more prudent approach in tendering for new construction projects has been adopted, including credit evaluations and background checks on potential customers[114] - The Group's debt collection policy involves monthly assessments of construction work performed and follow-ups on outstanding debts, with legal action considered after 180 days of non-payment[120] Employment and Workforce - The Group had a total of 256 full-time employees as of 31 December 2022, a decrease from 483 employees in 2021[148]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Jianzhong Construction Development Limited 建中建設發展有限公司 （於開曼群島註冊成立的有限公司） （股份代號：589） 截至2022年12月31日止年度的全年業績公告 建中建設發展有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈本公司及其附屬 公司（統稱「本集團」）截至2022年12月31日止年度的綜合財務業績連同截至2021年12月31 日止相應年度的比較數字。 – 1 – 財務摘要 • 收益由截至2021年12月31日止年度的約人民幣1,142.9百萬元減少約54.1%至截至 2022年12月31日止年度的約人民幣524.6百萬元。 • 毛利由截至2021年12月31日止年度的約人民幣132.0百萬元減少約93.0%至截至2022 年12月31日止年度的約人民幣9.3百萬元。毛利率由截至2021年12月31日止年度的 約11.6%下降約9.8 ...

Revenue Performance - Revenue for the six months ended June 30, 2022, was RMB 611.5 million, a decrease from RMB 257.1 million in the same period of 2021[11]. - Revenue for the six months ended June 30, 2022, totaled RMB 257,146,000, a decrease of 57.9% from RMB 611,531,000 in the same period of 2021[197]. - Revenue from construction services decreased by approximately RMB 345.0 million, or approximately 70.1%, from approximately RMB 492.0 million to approximately RMB 147.0 million for the six months ended June 30, 2022[20]. - Revenue from construction services decreased to RMB 146,983, down 70.0% from RMB 491,950 in the prior year[184]. - Revenue from Equipment operation service slightly increased by approximately RMB 5.2 million, or approximately 5.1%, from approximately RMB 101.2 million to approximately RMB 106.4 million during the same period[34]. - Major customers contributing 10% or more of the Group's revenue included Customer B with RMB 89,741,000 (down 64.7% from RMB 253,278,000 in 2021) and Customer A with RMB 45,368,000 (down 69.6% from RMB 148,842,000 in 2021)[198]. Profitability and Margins - Gross profit margin for construction services was (4.4%) in 2022, down from 11.8% in 2021, indicating a significant decline in profitability[12]. - The overall gross profit margin decreased to 9.4% in 2022 from 15.7% in 2021, reflecting challenges in the construction sector[12]. - Gross profit from Construction service recorded a loss of RMB 6.5 million, with a gross profit margin of -4.4% for the six months ended June 30, 2022, compared to a profit of RMB 58.2 million and a margin of 11.8% in the corresponding period in 2021[39]. - Gross profit for the same period was RMB 24,086,000, down 75.0% from RMB 96,309,000 in 2021[164]. - Other net income decreased by approximately RMB 29.2 million, from approximately RMB 42.2 million to approximately RMB 13.0 million for the six months ended June 30, 2022[45]. Financial Stability and Liquidity - As of June 30, 2022, the gearing ratio was 34.2%, a decrease from 40.6% as of December 31, 2021, indicating improved financial stability[15]. - The current ratio as of June 30, 2022, was 1.6, slightly up from 1.5 as of December 31, 2021, suggesting stable liquidity[15]. - The Group aims to improve liquidity while developing new business opportunities to create long-term value for shareholders[23]. - The Group's liquidity position is closely monitored to ensure that its assets, liabilities, and commitments can meet funding requirements[108]. - Cash and cash equivalents increased slightly to RMB 94,004 from RMB 92,973, showing a growth of approximately 1.1%[170]. Cost Management - Research and development costs reduced by approximately 57.4%, from approximately RMB 27.0 million to approximately RMB 11.5 million compared to the corresponding period in 2021[20]. - Administrative and other expenses decreased by approximately 41.2%, from approximately RMB 30.1 million to approximately RMB 17.7 million during the same period[20]. - Total staff costs incurred by the Group during the six months ended June 30, 2022, were approximately RMB 15.9 million, a significant decrease from approximately RMB 42.9 million for the same period in 2021[110]. Credit and Risk Management - The Group faced credit and liquidity risks due to potential delays in customer payments, which could significantly impact profitability and financial condition[31]. - The Group's cautious approach in tendering new construction projects was a strategic response to preserve cash under the current economic environment[34]. - The Group has ceased tendering for construction projects with certain real estate developers to reduce credit risk exposure[87]. - The accumulated individual loss allowance increased due to a more prudent approach in tendering for new construction projects and enhanced credit risk management policies[100]. Market and Economic Conditions - Economic downturns in the PRC may adversely affect demand for the Group's services and financial condition[29]. - The construction industry in the PRC is highly fragmented, presenting opportunities for further business development[25]. - Fluctuations in material costs can significantly impact profitability due to pre-determined contract values[24]. - The non-recurrent nature of construction projects poses a risk to revenue stability[24]. Shareholder Information - As of June 30, 2022, Mr. Xun MH holds 319,390,375 ordinary shares, representing 51.11% of the Company's total shares[138]. - The Board does not recommend any payment of dividends for the six months ended June 30, 2022[113]. - The Company has established an Audit Committee consisting of three members, with Mr. Wong Kun Kau as the chairman[128]. - The Company has complied with the independence requirements for its Board, with Independent Non-executive Directors representing at least one-third of the Board[126]. Overall Financial Performance - The Group incurred a net loss of approximately RMB 36.8 million for the six months ended June 30, 2022, compared to a net profit of approximately RMB 44.2 million for the same period in 2021[106]. - Basic and diluted loss per share for the six months ended June 30, 2022 was RMB 0.06, down from earnings per share of RMB 0.07 for the same period in 2021[106]. - The total number of full-time employees decreased to 379 as of June 30, 2022, from 483 as of December 31, 2021[110].

Financial Performance - Revenue for 2021 reached RMB 1,278.8 million, an increase of 11.9% from RMB 1,142.9 million in 2020[10] - Gross profit for 2021 was RMB 132.0 million, down from RMB 288.4 million in 2020, indicating a significant decline[11] - Overall gross profit margin decreased to 11.6% in 2021 from 22.6% in 2020[12] - The sewage treatment operation gross profit margin improved to 13.5% in 2021 from 8.4% in 2020[12] - The Group recorded a net loss of approximately RMB94.0 million for the year ended 31 December 2021, compared to a profit of approximately RMB59.8 million in 2020[25] - Revenue from construction services decreased by approximately RMB253.5 million, or approximately 23.2%, from approximately RMB1,112.7 million in 2020 to approximately RMB854.8 million in 2021[33] - The overall revenue of the Group decreased by approximately RMB135.9 million, or approximately 10.6%, from approximately RMB1,278.8 million in 2020 to approximately RMB1,142.9 million in 2021[51] - Basic and diluted loss per share for the year ended 31 December 2021 was RMB0.15, down from earnings of RMB0.10 per share in 2020[125] Liquidity and Financial Ratios - The gearing ratio increased to 40.6% in 2021 from 23.4% in 2020, indicating higher financial leverage[15] - The current ratio slightly decreased to 1.5 in 2021 from 1.6 in 2020, suggesting a minor decline in liquidity[17] - The Group aims to strengthen its liquidity condition to capture new business opportunities when the operating environment recovers[29] - As of 31 December 2021, the Group had cash and cash equivalents of approximately RMB93.0 million, a decrease from approximately RMB200.9 million as of 31 December 2020[128] - The Group's net current assets as of 31 December 2021 were approximately RMB472.1 million, representing a decrease of approximately RMB199.6 million from approximately RMB671.7 million as of 31 December 2020[128] Revenue Sources and Business Segments - Revenue from leasing of construction machinery, equipment, and tools increased by approximately RMB111.3 million, or approximately 84.0%, from approximately RMB132.5 million in 2020 to approximately RMB243.8 million in 2021[34] - The Construction service segment accounted for approximately 74.8% of the Group's total revenue in 2021, down from approximately 87.0% in 2020[53] - The revenue from Sewage treatment operation and Others remained relatively stable during the year ended 31 December 2021[57] - The Group has developed a more balanced source of income by generating additional leasing income for the year[28] Impairment and Credit Risk - The total loss allowance over trade and bills receivables and contract assets amounted to approximately RMB302.0 million as at 31 December 2021, up from approximately RMB163.8 million as at 31 December 2020[25] - The total impairment losses on trade receivables and contract assets recognized in profit or loss for the year ended 31 December 2021 amounted to approximately RMB138.3 million, an increase from approximately RMB114.8 million in 2020[42] - The Group's credit risk is primarily associated with trade receivables, bills receivable, and contract assets, which are mainly from real estate companies or main contractors in the PRC[69][73] - The Group has initiated cost reduction measures since the last quarter of 2021, including streamlining headcount and restructuring remuneration packages to manage administrative expenses[67] Management and Corporate Governance - The company has complied with the applicable code provisions set out in the Corporate Governance Code for the year ended December 31, 2021, with one noted deviation[200] - The Board is committed to maintaining a high standard of corporate governance and strives to create long-term value for shareholders[199] - The company will continuously review and improve its corporate governance practices to maintain high business ethics across the organization[199] Future Outlook and Strategic Initiatives - The company plans to focus on expanding its sewage treatment operations and enhancing construction service capabilities in the upcoming year[9] - The management provided a positive outlook for 2022, projecting a revenue growth of 10% to 15% driven by ongoing projects and new contracts[30] - The company aims to enhance its overall operation and business development through its R&D team led by Mr. He[148] - The Group plans to continue managing credit risk and balancing revenue sources to create long-term value for shareholders amid a challenging operating environment[44]

Revenue Performance - Revenue for the six months ended June 30, 2021, was RMB 611.5 million, slightly down from RMB 612.7 million for the same period in 2020[9]. - The overall revenue of the Group for the six months ended June 30, 2021, slightly decreased by approximately RMB 1.2 million, or approximately 0.2%, from approximately RMB 612.7 million to approximately RMB 611.5 million compared to the same period in 2020[37]. - Revenue from construction services decreased by approximately RMB 57.9 million, or approximately 10.5%, from approximately RMB 549.9 million to approximately RMB 492.0 million compared to the corresponding period in 2020[18]. - Revenue from leasing of construction machinery, equipment, and tools increased by approximately RMB 51.9 million, or approximately 105.3%, from approximately RMB 49.3 million to approximately RMB 101.2 million compared to the corresponding period in 2020[19]. - Total revenue for the period was RMB 956,431,000, slightly up from RMB 955,622,000 in the previous period, indicating a growth of 0.1%[67]. Profitability and Margins - Gross profit margin for construction services decreased to 11.8% in 2021 from 25.7% in 2020, indicating a significant decline in profitability[10]. - The overall gross profit margin dropped to 15.7% in 2021 compared to 26.5% in 2020, highlighting challenges in maintaining profitability across services[10]. - Gross profit for the period was RMB 96,309,000, down 40.7% from RMB 162,486,000 in 2020[192]. - Profit for the period decreased to RMB 44,166,000, representing a decline of 16.0% from RMB 52,542,000 in the previous year[195]. - Total comprehensive income for the period was RMB 44,054,000, compared to RMB 52,389,000 in the same period last year, reflecting a decrease of 16.0%[195]. Financial Position and Ratios - The gearing ratio increased to 31.2% as of June 30, 2021, up from 23.4% at the end of 2020, indicating higher financial leverage[13]. - Return on equity improved to 4.8% as of June 30, 2021, compared to 3.9% in the previous year, suggesting better returns for shareholders[14]. - Return on total assets remained stable at 2.6% in 2021, slightly down from 2.7% in 2020, indicating consistent asset utilization[15]. - The Group's net current assets as of June 30, 2021, were approximately RMB 653.5 million, representing a decrease of approximately RMB 18.2 million compared to approximately RMB 671.7 million as of December 31, 2020[104]. - Net assets as of June 30, 2021, were RMB 1,126,582,000, an increase from RMB 1,093,345,000 at the end of 2020, representing a growth of 3.0%[199]. Operational Challenges - The overall gross profit margin decreased due to a higher proportion of subcontractor projects reaching completion, which typically incur non-recoverable costs[53]. - Fluctuations in material costs and labor availability may impact the Group's profitability and financial performance[30][32]. - Delays or defaults in progress payments by customers can lead to cash flow challenges, affecting overall financial stability[31][33]. - The Group faces risks related to the non-recurrent nature of projects, which may affect revenue and profitability if new customers are not secured[27]. - The Group's cautious approach to assessing expected credit losses is influenced by the current economic environment and tightened credit policies towards property developers[18]. Strategic Focus and Future Outlook - The company is focusing on expanding its sewage treatment operations as a strategic growth area, given the improved margins in this segment[10]. - Future outlook includes potential market expansion and investment in new technologies to enhance service offerings and operational efficiency[10]. - The company plans to explore opportunities for mergers and acquisitions to strengthen its market position and diversify its service portfolio[10]. - The Group is focused on managing credit risk and balancing revenue sources to develop a more sustainable business model[26]. - The Group aims to better manage credit risks by tendering for new construction projects from customers with good financial standing[39]. Governance and Corporate Structure - The company has committed to maintaining high standards of corporate governance, emphasizing transparency, accountability, and independence[128]. - The roles of Chairman and Chief Executive Officer are currently held by the same individual, Mr. Xun Minghong, which the board believes provides strong leadership[130]. - The board consists of three Executive Directors, three Non-executive Directors, and three Independent Non-executive Directors, ensuring a balanced governance structure[143]. - The company has complied with all applicable code provisions of the Corporate Governance Code during the reporting period[129]. - The Audit Committee was established on February 18, 2020, and consists of three members, with Mr. Wong Kun Kau as the chairman[150]. Shareholding and Equity - As of June 30, 2021, Mr. Xun MH holds 314,828,375 shares, representing 50.37% of the company's ordinary shares[160]. - Mr. Xun LB holds 45,444,125 shares, representing 7.27% of the company's ordinary shares[160]. - The company has not granted, exercised, expired, canceled, or lapsed any share options since the adoption of the share option scheme on February 18, 2020[151]. - The percentage of shareholding is calculated based on the number of shares held divided by the total issued shares as of June 30, 2021[177]. - No other individuals, apart from the directors, have registered interests in the shares as of June 30, 2021[178].

Financial Performance - Revenue for 2020 decreased to RMB1,278.8 million, down 18.9% from RMB1,578.2 million in 2019[10] - Gross profit for 2020 was RMB288.4 million, a decline from RMB354.0 million in 2019[12] - Overall gross profit margin improved slightly to 22.6% in 2020 from 22.4% in 2019[13] - The return on equity dropped significantly to 5.5% in 2020 from 21.7% in 2019[20] - The return on total assets decreased to 2.6% in 2020 compared to 11.5% in 2019[22] - The net profit of the Group fell by 66.6% for the year ended 31 December 2020 due to the adverse impacts of COVID-19[29] - The net profit for the year decreased by approximately RMB119.4 million, or approximately 66.6%, from approximately RMB179.2 million in 2019 to approximately RMB59.8 million in 2020[68] - Basic and diluted earnings per share for the year ended 31 December 2020 were RMB0.1, down from RMB0.38 in 2019[68] Revenue and Contract Values - The Group's revenue decreased by 19.0% to approximately RMB1,112.7 million for the year ended 31 December 2020, compared to RMB1,456.7 million in 2019[37] - The total contract value of new projects awarded was approximately RMB1,264.6 million as of 31 December 2020[38] - The Group had 75 projects on hand with an outstanding contract value of approximately RMB1,129.4 million[38] - Revenue from leasing construction machinery, equipment, and tools increased by approximately 23.7% to RMB132.5 million, representing 10.4% of total revenue[39] - For the year ended December 31, 2020, the total contract value of new construction projects awarded was approximately RMB 1,264.6 million, with unbilled contract value of approximately RMB 1,129.4 million[42] Operational Challenges - The pandemic led to certain construction projects being postponed, slowed down, or terminated by customers[37] - The Group adopted a more prudent approach in tendering for new construction projects due to the challenging operating environment[37] - The pandemic severely affected the progress and cash flow of projects, leading to delays in payments from property developers and project owners, which in turn delayed payments to the Group[64] - The financial challenges faced by customers due to the pandemic have led to a more cautious outlook for future cash flows and receivables[64] Cost Management and Expenses - Administrative expenses decreased by approximately 21.6% from RMB 118.9 million for the year ended 31 December 2019 to RMB 93.2 million for the year ended 31 December 2020, mainly due to reduced research and development costs[64] - The overall cost of sales decreased by approximately RMB 233.9 million, or approximately 19.1%, from approximately RMB 1,224.2 million in 2019 to approximately RMB 990.3 million in 2020[54] - The Group implemented cost control measures, resulting in a reduction of administrative expenses in response to decreased revenue during the year[64] Financial Position and Ratios - Current ratio remained stable at 1.6 in 2020, slightly down from 1.7 in 2019[18] - Gearing ratio increased to 23.4% in 2020 from 6.0% in 2019, indicating higher leverage[16] - The gearing ratio as of 31 December 2020 was approximately 23.4%, up from approximately 6.0% as of 31 December 2019[68] - As of 31 December 2020, the Group had cash and cash equivalents of approximately RMB200.9 million, an increase from approximately RMB103.0 million as of 31 December 2019[68] - The net current assets increased by approximately RMB219.5 million, from approximately RMB452.2 million as of 31 December 2019 to approximately RMB671.7 million as of 31 December 2020[68] Strategic Initiatives - The company plans to focus on expanding its construction services and sewage treatment operations in the coming years[9] - New product development initiatives are underway to enhance service offerings in construction machinery leasing[9] - Strategic acquisitions are being considered to bolster market presence and operational capabilities[9] - The company remains optimistic about long-term business opportunities in the PRC construction industry despite challenges posed by COVID-19[44] - The company will exercise caution in managing its existing core business while seeking new business opportunities to enhance shareholder value[45] Management and Governance - The Company has adopted the Model Code for Securities Transactions by Directors, ensuring compliance with required dealing standards throughout the period from the Listing Date to December 31, 2020[168] - The Board consists of three Executive Directors, three Non-executive Directors, and three Independent Non-executive Directors, ensuring a balanced governance structure[170] - The Company has complied with the Corporate Governance Code, maintaining high standards of corporate governance and business ethics[166] - The roles of Chairman and Chief Executive Officer are held by the same individual, Mr. Xun MH, which the Board believes provides strong leadership[166] - Independent Non-executive Directors represent at least one-third of the Board, ensuring sufficient independence to safeguard shareholder interests[171] Future Outlook - Future outlook indicates a projected revenue growth of 10% for 2021, driven by new contracts and market demand[139] - The company aims to expand its market presence in Southeast Asia, targeting a 25% increase in market share by 2023[139] - The management emphasized the importance of digital transformation, with plans to implement advanced project management software by the end of 2021[139] - A new product line focused on eco-friendly building materials is set to launch in Q3 2021, expected to contribute an additional HKD 100 million in revenue[139]

Financial Performance - For the six months ended June 30, 2020, the company reported revenue of RMB 704 million, a decrease from RMB 742.9 million in the same period of 2019[20]. - The net profit for the same period was RMB 525 million, compared to RMB 612.7 million in 2019, reflecting a decline[20]. - The company's total revenue decreased by approximately 17.5%, from around RMB 742.9 million to about RMB 612.7 million, primarily due to delays in construction projects caused by the COVID-19 pandemic[49]. - Revenue from construction services was approximately RMB 549.9 million, a decrease of about 20.3% compared to RMB 689.6 million in the same period of 2019[49]. - The company's profit for the six months ended June 30, 2020, was RMB 52,542 thousand, a decrease of 25.4% compared to RMB 70,386 thousand for the same period in 2019[121]. - Total comprehensive income for the period was RMB 52,389 thousand, down from RMB 70,386 thousand in the previous year, reflecting a decline of 25.5%[121]. - Operating profit decreased to RMB 70,309,000, down 32% from RMB 103,252,000 in the previous year[118]. - Profit before tax was RMB 63,407,000, a decline of 33.8% compared to RMB 95,931,000 in 2019[118]. - Basic and diluted earnings per share were RMB 0.09, compared to RMB 0.15 for the same period in 2019[118]. Gross Profit and Margins - The overall gross profit margin improved to 26.5% in 2020 from 20.8% in 2019[22]. - The gross profit for construction services was RMB 141.5 million, with a gross margin of 25.7%, compared to RMB 136.0 million and a gross margin of 19.7% in 2019[53]. - Overall gross margin increased from 20.8% for the six months ended June 30, 2019, to 26.5% for the six months ended June 30, 2020, a rise of 5.7 percentage points, primarily due to the increase in gross profit from other construction projects from approximately RMB 14.2 million to approximately RMB 41.7 million[56]. Project and Contract Information - The company secured 43 new construction projects with a total contract value of approximately RMB 489.9 million during the reporting period[31]. - A total of 75 construction projects were completed with a contract value of approximately RMB 979.4 million[31]. - As of June 30, 2020, the company had 103 projects on hand, with an unbilled contract value of approximately RMB 917.5 million[31]. - The construction services segment accounted for approximately 89.7% of total revenue, down from 92.8% in the same period of 2019[44]. Costs and Expenses - Overall sales costs decreased by about 23.5%, from approximately RMB 588.3 million to about RMB 450.2 million, consistent with the decline in revenue[51]. - Administrative expenses decreased by approximately 6.5% from RMB 45.6 million for the six months ended June 30, 2019, to RMB 42.6 million for the six months ended June 30, 2020, mainly due to cost control measures[58]. - Impairment losses related to customer contracts surged from approximately RMB 5.2 million in 2019 to approximately RMB 54.5 million for the six months ended June 30, 2020, largely due to delayed customer payments caused by the COVID-19 pandemic[59]. Liquidity and Capital Structure - The current ratio remained stable at 2.0 as of June 30, 2020, indicating strong liquidity[25]. - The debt-to-equity ratio was reported at 7.0%, reflecting a conservative capital structure[25]. - As of June 30, 2020, the group's cash and cash equivalents amounted to approximately RMB 156.5 million, an increase from approximately RMB 103.0 million as of December 31, 2019[67]. - The capital debt ratio as of June 30, 2020, was approximately 0.9%, a significant decrease from about 6.0% as of December 31, 2019[68]. Shareholder and Governance Information - As of June 30, 2020, the company’s major shareholder, Mr. Xun Minghong, holds 51.04% of the ordinary shares, totaling 318,984,375 shares[100]. - The board of directors consists of three executive directors, three non-executive directors, and three independent non-executive directors, ensuring compliance with independence requirements[94]. - The company has complied with all applicable corporate governance code provisions, except for the separation of roles between the chairman and CEO, which is currently held by the same individual[86]. - The board will continue to review and enhance corporate governance practices to align with shareholder interests[89]. Cash Flow and Financing Activities - Net cash used in operating activities was RMB (104.363) million, compared to RMB (57.833) million in the previous year, indicating a worsening cash flow situation[143]. - The net cash generated from financing activities was RMB 196.528 million, a significant increase from RMB 52.409 million in the prior year[143]. - The company reported a net increase in cash and cash equivalents of RMB 53.498 million, contrasting with a decrease of RMB (83.783) million in the same period last year[143]. Risks and Challenges - The company faces risks related to project non-recurring nature, material cost fluctuations, and labor availability, which could significantly impact profitability and financial performance[36][39][40]. - The company aims to manage its core business cautiously while seeking new opportunities to create value for shareholders amid ongoing challenges from the pandemic[35].

Financial Performance - Total revenue for 2019 reached RMB 1,578.2 million, with construction services contributing RMB 1,192.8 million[9] - Gross profit for the year was RMB 285.5 million, resulting in a gross profit margin of 22.4%[11] - Net profit for 2019 was RMB 67.5 million, reflecting a decrease compared to previous years[14] - The gross profit margin for construction services was 21.4%, down from 23.2% in 2018[11] - The sewage treatment operation generated a gross profit margin of 13.2%, significantly lower than the 25.8% in 2018[11] - Total revenue increased by approximately RMB385.5 million from approximately RMB1,192.8 million in 2018 to approximately RMB1,578.2 million in 2019[21] - Net profit for the year ended 31 December 2019 was approximately RMB179.2 million, compared to RMB140.5 million in 2018[21] - Revenue from construction services amounted to approximately RMB1,456.7 million for 2019, representing approximately 92.3% of total revenue, up from 91.2% in 2018[42] - Revenue from formwork and scaffolding works increased by 184.4% to approximately RMB398.1 million in 2019, compared to RMB140.0 million in 2018[42] - The overall gross profit margin was approximately 22.4% for 2019, down from 23.9% in 2018, attributed to a higher proportion of lower-margin formwork and scaffolding works[47][49] - The Group's net profit increased by approximately RMB38.7 million, or approximately 27.6%, from approximately RMB140.5 million for the year ended 31 December 2018 to approximately RMB179.2 million for the year ended 31 December 2019[55] Market Expansion and Strategy - The company plans to expand its market presence and enhance its service offerings in the construction sector[8] - Future guidance indicates a focus on increasing revenue streams from both construction services and sewage treatment operations[8] - The company is exploring potential mergers and acquisitions to strengthen its market position[8] - The company has expanded its operations from Fujian Province to multiple provinces across China, enhancing its market presence[30] - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[117] - A strategic acquisition of a local competitor is anticipated to enhance operational capabilities and increase market penetration[117] Operational Efficiency and Development - New product development initiatives are underway to improve operational efficiency and service delivery[8] - The company has in-house R&D capabilities and a large fleet of construction machinery, enabling it to handle complex construction projects[28] - Research and development expenses increased by 30%, totaling $30 million, to support new technology initiatives[117] - The company plans to implement cost-saving measures aimed at reducing operational expenses by 5% over the next year[117] Corporate Governance and Management - The company has a strong management team with diverse backgrounds in finance, engineering, and corporate governance, enhancing its operational capabilities[130] - The company is focused on financial management and corporate governance, with key personnel holding relevant qualifications and certifications[126] - The company aims to leverage the extensive experience of its directors and senior management to drive growth and operational efficiency[130] - The Board consists of three Executive Directors, three Non-executive Directors, and three Independent Non-executive Directors, maintaining a balance of independence to safeguard shareholder interests[148][149] - The Company established an Audit Committee on February 18, 2020, to enhance corporate governance practices[174] - The Company established a Remuneration Committee on February 18, 2020, to recommend overall remuneration policies for Directors and senior management, ensuring no Director determines their own remuneration[176] - The Nomination Committee was established on February 18, 2020, to recommend appointments of Directors and manage Board succession, focusing on diversity and competency[181] Challenges and Risks - The coronavirus outbreak has introduced uncertainties, affecting 60 ongoing projects, with a revenue delay of approximately RMB 51.9 million that was expected to be recognized in February 2020[40] - The company has implemented contingency measures to manage the impact of the coronavirus, including negotiating with major stakeholders and deferring capital expenditures[40] - The company faces low foreign exchange risk as most transactions are conducted in RMB[66] Employee and Financial Information - As of December 31, 2019, the Group had cash and cash equivalents of approximately RMB103.0 million, an increase from approximately RMB93.8 million as of December 31, 2018[55] - The total staff costs incurred by the Group during the year ended 31 December 2019 was approximately RMB51.9 million, compared to approximately RMB36.7 million for the year ended 31 December 2018[59] - The company had no significant contingent liabilities as of December 31, 2019, consistent with the previous year[64] - The company does not recommend any payment of dividends for the year ended December 31, 2019[70] Shareholder Engagement - The company aims to provide all shareholders an equal opportunity to exercise their rights and engage actively with the company through its corporate governance structure[198] - Shareholders are encouraged to participate in general meetings, which provide direct communication opportunities with the Board, and notices of meetings are sent at least 21 days in advance[199] - The company allows shareholders to raise operational and governance questions directly at general meetings or submit proposals in writing to the Company Secretary[200]