[Financial Highlights](index=1&type=section&id=Financial%20Highlights) This section presents a concise overview of the Group's key financial performance indicators and results for the interim period [Overview of Financial Highlights](index=1&type=section&id=Overview%20of%20Financial%20Highlights) For the six months ended June 30, 2024, China Tianbao Group Development Co., Ltd. recorded total revenue of RMB 821,251 thousand, a decrease from the prior period, turning from profit to loss with a loss per share of RMB 0.036, and no interim dividend was declared Unaudited Interim Results Summary for the Six Months Ended June 30, 2024 | Metric | June 30, 2024 (RMB thousands) | June 30, 2023 (RMB thousands) | | :--- | :--- | :--- | | Revenue - Construction Contracting Business | 706,952 | 732,219 | | Revenue - Property Development and Other Businesses | 114,299 | 212,044 | | Gross Profit | 35,050 | 90,326 | | Basic (Loss)/Profit | (27,784) | 25,787 | | Reported (Loss)/Profit | (28,848) | 3,100 | | (Loss)/Profit Per Share (RMB) | (0.036) | 0.004 | | Interim Dividend | None | None | - Basic (loss)/profit is derived from **reported (loss)/profit** after deducting **fair value loss on investment properties**, **fair value gain/(loss) on financial assets at fair value through profit or loss**, and **realized loss on financial assets at fair value through profit or loss**, and is **not prepared in accordance with IFRS**[1](index=1&type=chunk) - Reported (loss)/profit is **prepared in accordance with IFRS**[1](index=1&type=chunk) [Interim Results](index=2&type=section&id=Interim%20Results) This section presents the Group's interim condensed consolidated financial statements, including statements of profit or loss, comprehensive income, and financial position [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2024, the Group's total revenue decreased by 13.0% to RMB 821,251 thousand, gross profit significantly fell by 61.2% to RMB 35,050 thousand, resulting in a net loss of RMB 28,848 thousand compared to a profit of RMB 3,100 thousand in the prior period Interim Condensed Consolidated Statement of Profit or Loss (For the Six Months Ended June 30) | Metric | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 821,251 | 944,263 | | Cost of Sales | (786,201) | (853,937) | | Gross Profit | 35,050 | 90,326 | | Other Income and Gains | 9,414 | (8,219) | | Selling and Distribution Expenses | (3) | (149) | | Administrative Expenses | (30,144) | (27,769) | | Fair Value Loss on Investment Properties | – | (3,000) | | Fair Value Gain/(Loss) on Financial Assets at Fair Value Through Profit or Loss | 1,376 | (9,484) | | Other Expenses | (2,363) | (651) | | Finance Costs | (37,968) | (29,398) | | (Loss)/Profit Before Tax | (24,638) | 11,656 | | Income Tax Expense | (4,210) | (8,556) | | (Loss)/Profit for the Period | (28,848) | 3,100 | | (Loss)/Profit Attributable to Owners of the Parent | (28,848) | 3,100 | | Basic and Diluted (Loss)/Profit Per Share (RMB) | (0.036) | 0.004 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2024, the Group's total comprehensive income turned into a loss of RMB 29,065 thousand, a significant deterioration from the prior period's profit of RMB 91 thousand, primarily due to the period's loss and exchange differences Interim Condensed Consolidated Statement of Comprehensive Income (For the Six Months Ended June 30) | Metric | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | (Loss)/Profit for the Period | (28,848) | 3,100 | | Other Comprehensive Income: Exchange Differences on Translation of Foreign Operations | (217) | 219 | | Equity Investments Designated at Fair Value Through Other Comprehensive Income: Fair Value Changes | – | (3,228) | | Other Comprehensive Income for the Period, Net of Tax | (217) | (3,009) | | Total Comprehensive Income for the Period | (29,065) | 91 | | Attributable to Owners of the Parent | (29,065) | 91 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets were RMB 6,309,033 thousand, a slight increase from December 31, 2023, with total current liabilities of RMB 4,790,514 thousand resulting in a net current liability deficit of RMB 197,875 thousand and net assets of RMB 984,906 thousand Interim Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 1,246,980 | 1,236,389 | | Investment Properties | 239,700 | 239,700 | | Total Non-current Assets | 1,716,394 | 1,710,921 | | **Current Assets** | | | | Trade Receivables | 326,662 | 403,508 | | Contract Assets | 1,553,766 | 1,296,394 | | Properties Under Development | 931,135 | 898,741 | | Completed Properties Held for Sale | 947,024 | 1,045,934 | | Cash and Cash Equivalents | 361,546 | 187,924 | | Total Current Assets | 4,592,639 | 4,358,208 | | **Current Liabilities** | | | | Trade Payables | 1,530,232 | 1,828,066 | | Other Payables and Accruals | 1,689,857 | 1,778,726 | | Interest-bearing Bank and Other Borrowings | 894,288 | 540,562 | | Tax Payable | 675,403 | 375,071 | | Total Current Liabilities | 4,790,514 | 4,523,231 | | Net Current Liabilities | (197,875) | (165,023) | | Total Assets Less Current Liabilities | 1,518,519 | 1,545,898 | | **Non-current Liabilities** | | | | Interest-bearing Bank and Other Borrowings | 507,000 | 505,000 | | Total Non-current Liabilities | 533,613 | 531,927 | | Net Assets | 984,906 | 1,013,971 | | Total Equity | 984,906 | 1,013,971 | [Notes to the Interim Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the interim condensed consolidated financial statements, covering accounting policies, segment information, revenue, and other financial disclosures [Company and Group Information](index=6&type=section&id=Company%20and%20Group%20Information) The Company is an exempted limited company incorporated in the Cayman Islands, primarily engaged in construction contracting and property development, with its ultimate holding company being Jixiang International Industrial Limited - The Group is principally engaged in **construction contracting** and **property development and other businesses**[7](index=7&type=chunk) - The Company's ultimate holding company is **Jixiang International Industrial Limited**, incorporated in the **British Virgin Islands**[7](index=7&type=chunk) [Basis of Preparation and Changes in Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The interim condensed consolidated financial information is prepared in accordance with IAS 34 and should be read in conjunction with the 2023 annual consolidated financial statements, with no significant impact from newly adopted IFRS amendments - The interim condensed consolidated financial information is prepared in accordance with **International Accounting Standard 34 Interim Financial Reporting**[8](index=8&type=chunk) - The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended **December 31, 2023**[9](index=9&type=chunk) - The adoption of amendments to IFRS has **no significant financial impact** on the Group's financial position and performance[10](index=10&type=chunk) [Operating Segment Information](index=6&type=section&id=Operating%20Segment%20Information) The Group operates in two reportable segments: construction contracting and property development, with construction contracting revenue of RMB 706,952 thousand and property development revenue of RMB 114,299 thousand for the six months ended June 30, 2024, where the construction segment recorded a profit and the property development segment a loss - The Group has two reportable operating segments: **construction contracting** and **property development and other businesses**[11](index=11&type=chunk) Operating Segment Revenue and Results (For the Six Months Ended June 30, 2024) | Metric | Construction Contracting (RMB thousands) | Property Development and Other (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | | Sales to External Customers | 706,952 | 114,299 | 821,251 | | Inter-segment Sales | 56,301 | – | 56,301 | | Total Revenue | 763,253 | 114,299 | 877,552 | | Segment Results | 10,603 | (37,929) | (27,326) | | Loss Before Tax | | | (24,638) | Operating Segment Assets and Liabilities (As of June 30, 2024) | Metric | Construction Contracting (RMB thousands) | Property Development and Other (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | | Segment Assets | 5,102,735 | 10,928,135 | 16,030,870 | | Total Assets | | | 6,309,033 | | Segment Liabilities | 3,894,959 | 7,574,703 | 11,469,662 | | Total Liabilities | | | 5,324,127 | [Revenue](index=9&type=section&id=Revenue) For the six months ended June 30, 2024, total revenue was RMB 821,251 thousand, a decrease from the prior period, with customer contract revenue of RMB 815,063 thousand primarily from construction contracting services (RMB 706,952 thousand) and property sales (RMB 108,111 thousand) in Mainland China Revenue Analysis (For the Six Months Ended June 30) | Revenue Source | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Revenue from Contracts with Customers | 815,063 | 936,043 | | Gross Rental Income from Operating Leases | 6,188 | 8,220 | | **Total Revenue** | **821,251** | **944,263** | Revenue from Contracts with Customers by Type of Goods or Services and Geographical Location (For the Six Months Ended June 30, 2024) | Type/Region | Construction Contracting (RMB thousands) | Property Development and Other (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | | Construction Contracting | 706,952 | – | 706,952 | | Property Development | – | 108,111 | 108,111 | | **Total Revenue from Contracts with Customers** | **706,952** | **108,111** | **815,063** | | Geographical Market: Mainland China | 706,952 | 108,111 | 815,063 | | Timing of Revenue Recognition: At a Point in Time | – | 108,111 | 108,111 | | Timing of Revenue Recognition: Over Time | 706,952 | – | 706,952 | [Loss/Profit Before Tax](index=11&type=section&id=Loss%2FProfit%20Before%20Tax) For the six months ended June 30, 2024, the Group recorded a loss before tax of RMB 24,638 thousand, compared to a profit of RMB 11,656 thousand in the prior period, with key costs including RMB 664,471 thousand for construction contracting and RMB 121,730 thousand for property development, and increased employee benefit expenses Composition of Loss/Profit Before Tax (For the Six Months Ended June 30) | Item | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Cost of Construction Contracting | 664,471 | 683,396 | | Cost of Property Development and Other Businesses | 121,730 | 170,541 | | Total Employee Benefit Expenses | 13,092 | 10,369 | [Income Tax](index=11&type=section&id=Income%20Tax) For the six months ended June 30, 2024, income tax expense decreased to RMB 4,210 thousand from RMB 8,556 thousand in the prior period, comprising current income tax, China Land Appreciation Tax, and deferred income tax, with Mainland China subsidiaries subject to a 25% corporate income tax rate and Land Appreciation Tax levied at progressive rates - Subsidiaries operating in Mainland China are subject to **China Corporate Income Tax at a rate of 25%**[21](index=21&type=chunk) - Land Appreciation Tax is levied at **progressive rates ranging from 30% to 60%** on the appreciation of land value[22](index=22&type=chunk) Composition of Income Tax Expense (For the Six Months Ended June 30) | Tax Type | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Current Income Tax | 1,133 | 2,550 | | China Land Appreciation Tax | 2,405 | 4,463 | | Deferred Income Tax | 672 | 1,543 | | **Total Income Tax Expense** | **4,210** | **8,556** | [Dividends](index=12&type=section&id=Dividends) The Board of Directors has resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the prior period - The Board of Directors has resolved **not to recommend the payment of an interim dividend** for the six months ended **June 30, 2024** (2023: None)[24](index=24&type=chunk) [Loss/Profit Per Share Attributable to Ordinary Equity Holders of the Parent](index=12&type=section&id=Loss%2FProfit%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For the six months ended June 30, 2024, basic and diluted loss per share was RMB 0.036, compared to a profit of RMB 0.004 in the prior period, primarily due to the loss incurred during the period Loss/Profit Per Share Calculation (For the Six Months Ended June 30) | Metric | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | (Loss)/Profit Attributable to Ordinary Equity Holders of the Parent | (28,848) | 3,100 | | Weighted Average Number of Ordinary Shares in Issue (thousands) | 809,456 | 809,456 | | Basic and Diluted (Loss)/Profit Per Share (RMB) | (0.036) | 0.004 | - The Group had **no potential dilutive ordinary shares** for the six months ended **June 30, 2024 and 2023**[25](index=25&type=chunk) [Property, Plant and Equipment](index=13&type=section&id=Property%2C%20Plant%20and%20Equipment) As of June 30, 2024, the carrying amount of property, plant and equipment was RMB 1,246,980 thousand, a slight increase from the beginning of the year, with construction in progress increasing to RMB 931,135 thousand and completed properties held for sale decreasing to RMB 947,024 thousand Changes in Property, Plant and Equipment (As of June 30) | Item | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Carrying Amount of Property, Plant and Equipment at End of Period | 1,246,980 | 1,236,389 | | Carrying Amount of Properties Under Development at End of Period | 931,135 | 898,741 | | Carrying Amount of Completed Properties Held for Sale at End of Period | 947,024 | 1,045,934 | [Trade Receivables](index=14&type=section&id=Trade%20Receivables) As of June 30, 2024, total trade receivables were RMB 326,662 thousand, a decrease from RMB 403,508 thousand as of December 31, 2023, primarily comprising construction contracting receivables with credit terms typically ranging from three to six months Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 211,906 | 268,147 | | 1 to 2 years | 51,975 | 56,324 | | 2 to 3 years | 32,105 | 56,145 | | Over 3 years | 30,676 | 22,892 | | **Total** | **326,662** | **403,508** | - Trade receivables primarily refer to **receivables from construction contracting**[28](index=28&type=chunk) - The Group grants a credit period of **three to six months**, except for retention receivables[28](index=28&type=chunk) [Trade Payables](index=14&type=section&id=Trade%20Payables) As of June 30, 2024, total trade payables decreased to RMB 1,530,232 thousand from RMB 1,828,066 thousand as of December 31, 2023, which are non-interest bearing and generally settled based on project progress Ageing Analysis of Trade Payables (As of June 30) | Ageing | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Within 6 months | 329,711 | 600,981 | | 6 months to 1 year | 80,129 | 234,926 | | 1 to 2 years | 275,781 | 323,458 | | 2 to 3 years | 358,234 | 88,369 | | Over 3 years | 486,377 | 580,332 | | **Total** | **1,530,232** | **1,828,066** | - Trade payables are **non-interest bearing** and generally settled based on **project progress**[29](index=29&type=chunk) [Interest-bearing Bank and Other Borrowings](index=15&type=section&id=Interest-bearing%20Bank%20and%20Other%20Borrowings) As of June 30, 2024, total interest-bearing bank and other borrowings increased to RMB 1,401,288 thousand from RMB 1,045,562 thousand as of December 31, 2023, with RMB 894,288 thousand due within one year or on demand, and some borrowings secured by investment properties, properties under development, property, plant and equipment, and right-of-use assets Maturity Profile of Interest-bearing Bank and Other Borrowings (As of June 30) | Type | Effective Interest Rate (%) | Maturity Date | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | **Current** | | | | | | Secured Other Loans | 12.0 | Overdue | 246,694 | 274,390 | | Unsecured Other Loans | 12.0 | Overdue | 35,594 | 35,172 | | Current Portion of Secured Long-term Bank Borrowings | 5.25-8.70 | 2024-2025 | 612,000 | 231,000 | | **Non-current** | | | | | | Secured Bank Borrowings | 3.35-6.65 | 2026-2041 | 507,000 | 505,000 | | **Total** | | | **1,401,288** | **1,045,562** | Analysis of Bank and Other Borrowings Repayable (As of June 30) | Repayment Period | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Within one year or on demand | 894,288 | 540,562 | | In the second year | 74,000 | 503,000 | | In the third to fifth years | 38,000 | 2,000 | | Over five years | 395,000 | – | | **Total** | **1,401,288** | **1,045,562** | Total Carrying Amount of Pledged Assets (As of June 30) | Pledged Assets | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Investment Properties | 239,700 | 239,700 | | Properties Under Development | 281,126 | 135,981 | | Property, Plant and Equipment | 1,254,448 | 486,805 | | Right-of-use Assets | 7,777 | 7,891 | [Share Capital](index=16&type=section&id=Share%20Capital) As of June 30, 2024, the Company's authorized share capital was 2,000,000,000 ordinary shares of HK$0.01 each, with 809,456,000 shares issued and fully paid, valued at RMB 7,281 thousand, remaining unchanged from December 31, 2023 Share Capital Structure (As of June 30) | Type of Share Capital | June 30, 2024 (HK$ thousands/RMB thousands) | December 31, 2023 (HK$ thousands/RMB thousands) | | :--- | :--- | :--- | | Authorized Share Capital (2,000,000,000 shares of HK$0.01 each) | 20,000 (HK$ thousands) | 20,000 (HK$ thousands) | | Issued and Fully Paid Share Capital (809,456,000 shares of HK$0.01 each) | 7,281 (RMB thousands) | 7,281 (RMB thousands) | [Contingent Liabilities](index=16&type=section&id=Contingent%20Liabilities) As of June 30, 2024, the Group provided mortgage financing guarantees of approximately RMB 1,738.0 million for property purchasers, which the directors consider immaterial in fair value and adequately covered by the net realizable value of the related properties, thus no provision was made - The Group has provided guarantees for mortgage financing of approximately **RMB 1,738.0 million** (December 31, 2023: RMB 1,789.4 million) for certain purchasers of the Group's properties[33](index=33&type=chunk) - The guarantee period commences from the date of grant of the relevant mortgage loan until the issuance of the property ownership certificate to the purchaser, generally effective for **one to two years** after the purchaser obtains the relevant property[33](index=33&type=chunk) - The Directors consider the **fair value of the guarantees to be immaterial**, and the net realizable value of the relevant properties would cover the repayment of outstanding mortgage principal, accrued interest, and penalties in case of payment default, thus **no provision has been made**[33](index=33&type=chunk) [Commitments](index=16&type=section&id=Commitments) As of June 30, 2024, the Group's contracted but unprovided capital commitments, primarily for construction contracting projects, amounted to RMB 225,553 thousand, a decrease from RMB 261,912 thousand as of December 31, 2023 Capital Commitments (As of June 30) | Item | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Contracted but not provided for: Construction Contracting | 225,553 | 261,912 | [Related Party Transactions](index=17&type=section&id=Related%20Party%20Transactions) For the six months ended June 30, 2024, the Group engaged in various related party transactions including interest expenses, raw material purchases, property management fees, and rental/interest income, with outstanding balances including advances to the ultimate holding company and other related parties, and interest-bearing loans from the ultimate holding company Related Party Transactions (For the Six Months Ended June 30) | Type of Transaction | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Interest expense on other borrowings | 2,126 | 2,077 | | Purchase of raw materials from a company | 784 | 180 | | Repayment of advances from related parties | – | 30,000 | | Payment of property management fees to related parties | 903 | 941 | | Other rental income | 850 | 850 | | Other interest income | 1,076 | 1,092 | Outstanding Balances with Related Parties (As of June 30) | Type of Balance | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Advances to ultimate holding company | 1,640 | 1,784 | | Advances to related parties | 5,574 | 5,574 | | Amounts due to other related parties | 7,786 | 7,786 | | Loans from ultimate holding company | 35,594 | 35,172 | - Total remuneration for key management personnel was **RMB 4,437 thousand**, including short-term employee benefits and contributions to a pension scheme[38](index=38&type=chunk) [Approval of Financial Statements](index=18&type=section&id=Approval%20of%20Financial%20Statements) The interim condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 21, 2024 - The interim condensed consolidated financial statements were **approved and authorized for issue by the Board of Directors on August 21, 2024**[39](index=39&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section offers a comprehensive review of the Group's business operations, market conditions, and financial performance for the reporting period, along with future outlook [Business Review](index=19&type=section&id=Business%20Review) The Group primarily engages in construction contracting and property development, with total revenue decreasing by 13.0% to RMB 821 million in H1 2024, significant declines in gross profit and gross margin, a basic loss of RMB 28 million, and an increased net gearing ratio of 93.3% - The Group is a **construction company and property developer** located in Zhuozhou City, Hebei Province, China, with business operations covering multiple industrial areas including construction engineering, planning and design, property development, property sales, investment, and operation[40](index=40&type=chunk) - During the reporting period, the Group's revenue was approximately **RMB 821 million**, a decrease of approximately **RMB 123 million (13.0%)** compared to the same period in 2023[40](index=40&type=chunk) - The Group's gross profit and gross profit margin for the reporting period were approximately **RMB 35 million** and **4.3%**, respectively[40](index=40&type=chunk) - The Group's basic loss for the reporting period was approximately **RMB 28 million**, compared to a basic profit of approximately **RMB 26 million** in the same period of 2023[40](index=40&type=chunk) - As of **June 30, 2024**, the Group's net gearing ratio was approximately **93.3%** (December 31, 2023: 60.1%)[40](index=40&type=chunk) [Review of H1 2024](index=20&type=section&id=Review%20of%20H1%202024) In H1 2024, China's economy remained stable with steady growth in construction fixed asset investment but a decline in housing construction area, while the property market continued to adjust with decreases in investment, sales area, and sales value, and the Group's Jingbei Health City project fully resumed work amid strong policy support for the eldercare industry - In H1 2024, the national economy operated **steadily with progress**, stable production growth, and continuous demand recovery[42](index=42&type=chunk) - The total output value of the construction industry was **RMB 13,831.2 billion**, a **4.8% year-on-year increase**; the national housing construction area was **11.04 billion square meters**, a **6.2% year-on-year decrease**[43](index=43&type=chunk) - National real estate development investment was **RMB 5,252.9 billion**, a **10.1% year-on-year decrease**; sales area of new commercial housing was **479.16 million square meters**, a **19.0% year-on-year decrease**; and commercial housing sales value was **RMB 4,713.3 billion**, a **25.0% decrease**[44](index=44&type=chunk) - The eldercare industry is identified as a potential industry in the silver economy, with its scale projected to grow to **RMB 30 trillion by 2035**; the Group's **Jingbei Health City project has fully resumed work and production**, with plans to commence operations in **October this year**[45](index=45&type=chunk) [Outlook for H2 2024](index=21&type=section&id=Outlook%20for%20H2%202024) H2 2024 is expected to see a rebound in China's economy driven by policy stimulus, with consumption recovery, potential infrastructure investment growth, and a slight narrowing of property development investment decline, while the construction industry faces intensified competition and the eldercare sector offers broad prospects due to strong demand and policy support - Looking ahead to H2, signals for expanding domestic demand have been released, and **consumption may recover**; infrastructure investment growth is expected to rebound, and the decline in real estate development investment will slightly narrow[47](index=47&type=chunk) - The construction industry faces **significant growth pressure**, with further increases in industry concentration, and may maintain a **medium-low speed moderate growth trend** in the long term[48](index=48&type=chunk) - The property market still faces **adjustment pressure**, and the new home market may be in a **bottoming-out phase**[49](index=49&type=chunk) - The eldercare market has **huge demand and broad prospects**, with new smart eldercare becoming an important pillar of the future eldercare system[50](index=50&type=chunk) [Business Review - Segments](index=22&type=section&id=Business%20Review%20-%20Segments) The Group's revenue is primarily from construction contracting (86.1%) and property development (13.9%), with a slight decrease in construction revenue but growth in new contract value, a significant decline in property development revenue due to reduced deliveries, and active progress in the emerging eldercare business with the Jingbei Health City project Revenue Breakdown by Business Segment (For the Six Months Ended June 30) | Segment | 2024 Revenue (RMB thousands) | % of Total Revenue | 2023 Revenue (RMB thousands) | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Construction Contracting Business | 706,952 | 86.1 | 732,219 | 77.5 | | Property Development Business | 114,299 | 13.9 | 212,044 | 22.5 | | **Total** | **821,251** | **100.0** | **944,263** | **100.0** | [Construction Contracting Business](index=22&type=section&id=Construction%20Contracting%20Business) Construction contracting is the Group's main revenue source, generating RMB 706,952 thousand in H1 2024 primarily from the Beijing-Tianjin-Hebei region, with the Group acting as a general contractor for large-scale projects and expanding its new contract value to RMB 1,172.4 million, extending beyond its traditional regional focus - The majority of the Group's construction contracting revenue is generated from the **Beijing-Tianjin-Hebei region** (primarily Hebei Province and Beijing)[53](index=53&type=chunk) Revenue Breakdown of Construction Contracting Business by Region (For the Six Months Ended June 30) | Region | 2024 Revenue (RMB thousands) | % of Total Revenue | 2023 Revenue (RMB thousands) | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Beijing-Tianjin-Hebei | 461,419 | 65.3 | 482,226 | 65.9 | | Others | 245,533 | 34.7 | 249,993 | 34.1 | | **Total** | **706,952** | **100.0** | **732,219** | **100.0** | - The Group undertakes construction projects as a **general contractor**, including building construction, foundation works, curtain wall construction, architectural decoration, and fire protection projects[54](index=54&type=chunk) Revenue Breakdown of Construction Contracting Business by Project Type (For the Six Months Ended June 30) | Project Type | 2024 Revenue (RMB thousands) | % of Total Revenue | 2023 Revenue (RMB thousands) | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Building Construction | 282,572 | 40.0 | 318,836 | 43.5 | | Industrial, Commercial and Infrastructure Construction | 424,380 | 60.0 | 413,383 | 56.5 | | **Total** | **706,952** | **100.0** | **732,219** | **100.0** | - During the reporting period, the Group undertook relatively large-scale construction contracting projects including the **Tianjin University College Museum**, **Chongqing Yubei District Second People's Hospital**, **Hebei Petroleum Vocational Technology University Training Base**, and **Hebei Industrial Vocational Technology University Training Base**[57](index=57&type=chunk) Value of Outstanding Contracts by Geographical Location and Project Type (As of June 30) | Category | 2024 Contract Value (RMB millions) | % of Total Contract Value | 2023 Contract Value (RMB millions) | % of Total Contract Value | | :--- | :--- | :--- | :--- | :--- | | **Geographical Location** | | | | | | Beijing-Tianjin-Hebei | 3,233.3 | 39.7 | 3,223.6 | 37.7 | | Others | 4,919.1 | 60.3 | 5,328.9 | 62.3 | | **Total** | **8,152.4** | **100.0** | **8,552.5** | **100.0** | | **Project Type** | | | | | | Building Construction | 2,365.4 | 29.0 | 2,769.6 | 32.4 | | Industrial, Commercial and Infrastructure Construction | 5,787.0 | 71.0 | 5,782.9 | 67.6 | | **Total** | **8,152.4** | **100.0** | **8,552.5** | **100.0** | Value of New Contracts by Geographical Location and Project Type (For the Six Months Ended June 30) | Category | 2024 Contract Value (RMB millions) | % of Total Contract Value | 2023 Contract Value (RMB millions) | % of Total Contract Value | | :--- | :--- | :--- | :--- | :--- | | **Geographical Location** | | | | | | Beijing-Tianjin-Hebei | 504.3 | 43.0 | 419.6 | 44.2 | | Others | 668.1 | 57.0 | 529.7 | 55.8 | | **Total** | **1,172.4** | **100.0** | **949.3** | **100.0** | | **Project Type** | | | | | | Building Construction | 6.5 | 0.6 | 110.0 | 11.6 | | Industrial, Commercial and Infrastructure Construction | 1,165.9 | 99.4 | 839.3 | 88.4 | | **Total** | **1,172.4** | **100.0** | **949.3** | **100.0** | - The regions for new contracts have expanded from being concentrated in the **Beijing-Tianjin-Hebei region** to include **Chongqing City and Jiangxi Province**[63](index=63&type=chunk) [Property Development Business](index=27&type=section&id=Property%20Development%20Business) The property development business, including residential sales and investment property leasing, generated RMB 114,299 thousand in H1 2024, with residential property sales accounting for 94.6% and rental income for 5.4%, holding multiple residential and commercial projects in Zhuozhou and Zhangjiakou, and investment properties like Baoxin International Building and Tianbao Plaza Revenue Breakdown of Property Development Business (For the Six Months Ended June 30) | Business Line | Nature of Revenue | 2024 Revenue (RMB thousands) | % of Total Revenue | 2023 Revenue (RMB thousands) | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | :--- | | Property Development Sales | Sales of Residential Properties | 108,111 | 94.6 | 203,824 | 96.1 | | Commercial Property Investment and Operation | Rental Income | 6,188 | 5.4 | 8,220 | 3.9 | | **Total** | | **114,299** | **100.0** | **212,044** | **100.0** | - The Group's land reserves are primarily located in **Zhuozhou and Zhangjiakou**, areas with significant development potential[65](index=65&type=chunk) - Projects in the Zhuozhou area include **Tianbao Green City**, **Tianbao Xinyuewan (Mingyang Phase I)**, **Tianbao Smart Construction Technology Park**, and **Baoxin International Building**[66](index=66&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk) - Projects in the Zhangjiakou area include **Tianbao New City**, **Tianbao New City - Zhangbei Zhongdu Ginza**, **Zhangbei County Fuxinyuan Shanty Town Renovation Project**, **Tianbao Edelweiss City**, **Tianbao Platinum Bay**, **Tianbao Jingxifu**, and **Nasutu Hotel**[71](index=71&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) Land Reserve Gross Floor Area Breakdown (As of June 30, 2024) | Region | Completed but Unsold Saleable Gross Floor Area (sqm) | Leasable Gross Floor Area Held for Property Investment (sqm) | Planned Gross Floor Area Under Construction (sqm) | Planned Gross Floor Area for Future Development (sqm) | Total Land Reserve Gross Floor Area (sqm) | % of Total Land Reserve by Geographical Location | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhuozhou | 23,051 | 44,336 | 141,901 | 175,435 | 384,723 | 37.8 | | Zhangjiakou | 177,638 | 34,364 | 10,238 | 410,506 | 632,746 | 62.2 | | **Total** | **200,689** | **78,700** | **152,139** | **585,941** | **1,017,469** | **100.0** | [Eldercare Business](index=31&type=section&id=Eldercare%20Business) Amid China's accelerating aging population and strong government support for the silver economy, the Group is transforming Jingbei Health City into a comprehensive continuing care retirement community with a total investment of approximately RMB 2.55 billion, aiming to provide 350 medical beds and 8,500 eldercare beds, with the first phase expected to open in Q4 2024 - China's population is **aging rapidly**, creating a **huge demand for eldercare services**[82](index=82&type=chunk) - The General Office of the State Council issued "Opinions on Developing the Silver Economy and Enhancing the Well-being of the Elderly," proposing to **promote synergy in the eldercare industry** and plan the layout of **high-level silver economy industrial parks**[82](index=82&type=chunk) - The Hebei Provincial Government issued "Several Measures to Support the Development of the Eldercare Industry in Hebei Province," focusing on promoting the **extension of Beijing-Tianjin eldercare projects into Hebei**[83](index=83&type=chunk) - The Group is transforming **Jingbei Health City** into a comprehensive continuing care retirement community, with a total investment of approximately **RMB 2.55 billion**, of which approximately **RMB 1.04 billion** had been invested as of **June 30, 2024**[85](index=85&type=chunk) - Jingbei Health City is expected to provide **350 medical beds** and **8,500 eldercare beds**; the first phase is anticipated to open progressively in **Q4 2024**, offering **350 medical beds** and **4,000 eldercare beds**[85](index=85&type=chunk) [Financial Review](index=33&type=section&id=Financial%20Review) The Group's total revenue decreased by 13.0% to RMB 821 million in H1 2024, primarily due to reduced property deliveries and promotional policies, leading to a decline in sales cost, a significant drop in gross profit and gross margin, increased administrative and finance costs, decreased income tax expense due to lower taxable profit, and ultimately a basic loss for the period - Total revenue decreased by **13.0%** from approximately **RMB 944 million** in the same period of 2023 to approximately **RMB 821 million** in the reporting period, mainly due to promotional policies in the property business and a decrease in delivered area compared to the same period in 2023[87](index=87&type=chunk) - Revenue from the construction contracting business remained generally stable, reaching **RMB 707 million** during the reporting period[88](index=88&type=chunk) - The total delivered area for the property development business decreased from **39,886 square meters** in the same period of 2023 to **28,645 square meters** in the reporting period, with revenue decreasing from approximately **RMB 212 million** to approximately **RMB 114 million**[89](index=89&type=chunk) - Cost of sales decreased by **8.0%** from approximately **RMB 854 million** in the same period of 2023 to approximately **RMB 786 million** in the reporting period[91](index=91&type=chunk) - Gross profit decreased from approximately **RMB 90 million** in the same period of 2023 to approximately **RMB 35 million** in the reporting period, with the gross profit margin declining from **9.6% to approximately 4.3%**[92](index=92&type=chunk) - Administrative expenses increased by **8.6%** from approximately **RMB 28 million** in the same period of 2023 to approximately **RMB 30 million** in the reporting period[94](index=94&type=chunk) - Finance costs increased by **29.2%** from **RMB 29 million** in the same period of 2023 to **RMB 38 million** in the reporting period[95](index=95&type=chunk) - Income tax expense decreased by **RMB 5 million** from approximately **RMB 9 million** in the same period of 2023 to approximately **RMB 4 million** in the reporting period[97](index=97&type=chunk) - The Group recorded a basic loss of approximately **RMB 28 million** during the reporting period (2023: basic profit of RMB 26 million)[98](index=98&type=chunk) [Liquidity, Financial Resources and Capital](index=35&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital) The Group meets its liquidity needs through operating cash flow and bank loans, with total cash and cash equivalents of RMB 483 million as of June 30, 2024, and total interest-bearing borrowings increasing to RMB 1,401,288 thousand, mostly due within one year, indicating increased financial leverage with a current ratio of 0.96 and higher gearing ratios, while having no significant future investment plans or major investments - The Group has historically met its liquidity needs through **cash flows generated from operations** and **bank loans**[99](index=99&type=chunk) - As of **June 30, 2024**, the Group's total pledged deposits, cash and cash equivalents amounted to approximately **RMB 483 million** (December 31, 2023: approximately RMB 437 million)[100](index=100&type=chunk) - As of the date of this announcement, the Group has **no significant future investment plans** and holds **no significant investments**[101](index=101&type=chunk)[102](index=102&type=chunk) Maturity Profile of Interest-bearing Bank and Other Borrowings (As of June 30) | Repayment Period | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Within one year or on demand | 894,288 | 540,562 | | In the second year | 74,000 | 503,000 | | In the third to fifth years | 38,000 | 2,000 | | Over five years | 395,000 | – | | **Total** | **1,401,288** | **1,045,562** | Key Financial Ratios (As of June 30) | Financial Ratio | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Current Ratio (times) | 0.96 | 0.96 | | Gearing Ratio (%) | 142.3 | 103.1 | | Net Gearing Ratio (%) | 93.3 | 60.1 | - As of **June 30, 2024**, the Group's contracted but unprovided commitments for capital expenditure amounted to approximately **RMB 226 million** (December 31, 2023: approximately RMB 262 million)[106](index=106&type=chunk) - As a lessor, the Group's total future minimum lease receivables under non-cancellable operating leases entered into with its tenants amounted to **RMB 121,360 thousand** at the end of the reporting period[107](index=107&type=chunk) - The Group has provided guarantees for mortgage financing of approximately **RMB 1,738.0 million** for certain purchasers of the Group's properties, but the Directors consider the fair value to be immaterial and **no provision has been made**[108](index=108&type=chunk) - The Group had **no significant acquisitions or disposals of subsidiaries and assets** during the reporting period[109](index=109&type=chunk) - The Group primarily operates in China, with most transactions denominated and settled in **RMB**, and does **not engage in foreign exchange rate risk hedging activities**[111](index=111&type=chunk) - The Group's interest rate risk arises from **interest-bearing bank deposits** and **bank and other borrowings**, facing both **cash flow interest rate risk** and **fair value interest rate risk**[112](index=112&type=chunk) [Others](index=39&type=section&id=Others) This section covers various corporate governance matters, employee information, and other administrative details relevant to the Group's operations [Employees and Remuneration Policy](index=39&type=section&id=Employees%20and%20Remuneration%20Policy) The Group's employee remuneration is determined by market levels, individual performance, and experience, reviewed annually, with directors' and senior management's compensation based on various factors, and as of June 30, 2024, the total workforce was 372 with total staff costs (excluding directors and senior executives) of approximately RMB 8.7 million, supported by a comprehensive training system and share option scheme - The remuneration of the Group's employees is primarily determined based on **prevailing market remuneration levels**, individual performance, and work experience[113](index=113&type=chunk) - The remuneration policy for executive directors and senior management of the Company is determined by reference to the Group's actual operating conditions, industry remuneration levels, positions and responsibilities, and organizational structure adjustments[113](index=113&type=chunk) - During the reporting period, the Group's total staff costs (excluding directors' and senior executives' remuneration) were approximately **RMB 8.7 million** (2023: approximately RMB 5.9 million)[113](index=113&type=chunk) - As of **June 30, 2024**, the Group had a total of **372 employees** (June 30, 2023: 307 employees)[113](index=113&type=chunk) [Events After Reporting Period](index=40&type=section&id=Events%20After%20Reporting%20Period) The Group has no significant events after the reporting period - The Group has **no significant events** after the end of the reporting period[115](index=115&type=chunk) [Interim Dividends](index=40&type=section&id=Interim%20Dividends) The Board of Directors has resolved not to recommend the payment of any interim dividend for the current reporting period, consistent with the prior period - The Board of Directors has resolved **not to recommend the payment of any interim dividend** for the current reporting period (2023: None)[116](index=116&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=40&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities on the Stock Exchange - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's **listed securities on The Stock Exchange of Hong Kong Limited**[117](index=117&type=chunk) [Compliance with Corporate Governance Code](index=40&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company has adopted and complied with all code provisions of the Corporate Governance Code, except for the combined roles of Chairman and CEO, which the Board believes enhances internal leadership consistency and strategic planning efficiency, and will be continuously reviewed - The Company has adopted and complied with **all code provisions** contained in the Corporate Governance Code during the reporting period, with the **only deviation being from Code Provision C.2.1**[118](index=118&type=chunk) - During the reporting period, **Mr. Li Baotian served as both the Chairman of the Board and the Chief Executive Officer** of the Company, deviating from the requirement that the roles of Chairman and Chief Executive Officer should be separate[118](index=118&type=chunk) - The Board believes that combining the roles of Chairman and Chief Executive Officer in one person helps ensure **consistent internal leadership** and enhances the **effectiveness and efficiency of the Group's overall strategic planning**[118](index=118&type=chunk) [Compliance with Model Code for Securities Transactions](index=40&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance during the reporting period, with no instances of non-compliance by employees noted - The Company has adopted the **Model Code for Securities Transactions by Directors of Listed Issuers** as set out in Appendix 10 to the Listing Rules as the code of conduct for Directors' dealings in the Company's securities[118](index=118&type=chunk) - Following specific enquiries with all Directors, all Directors confirmed that they have **complied with the standards set out in the Model Code** during the reporting period[118](index=118&type=chunk) - The Company has **not noted any instances of non-compliance** with the Model Code by its employees[119](index=119&type=chunk) [Audit Committee](index=41&type=section&id=Audit%20Committee) The Company's Audit Committee, comprising three independent non-executive directors with Mr. Li Xu as Chairman, has reviewed the Group's unaudited interim results for the six months ended June 30, 2024, confirming compliance with all accounting principles, standards, and adequate disclosures - The Company's Audit Committee comprises **three independent non-executive Directors** (namely Mr. Li Xu, Mr. Hou Liang, and Mr. Li Qingxu), with **Mr. Li Xu as the Chairman**[120](index=120&type=chunk) - The primary responsibilities of the Audit Committee are to **review and supervise the financial reporting process** and the Group's internal control systems, monitor the audit process, and provide advice and recommendations to the Board[120](index=120&type=chunk) - The Audit Committee has reviewed the Group's **unaudited interim results for the six months ended June 30, 2024**, and confirmed compliance with all accounting principles, standards, and requirements, and that **adequate disclosures have been made**[120](index=120&type=chunk) [Publication of Interim Results and Interim Report](index=41&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This results announcement is published on the HKEXnews website and the Company's website, and the Company's 2024 Interim Report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the HKEX and Company websites in due course - This results announcement is published on the **HKEXnews website (www.hkexnews.hk)** and the **Company's website (www.chinatbjt.com)**[121](index=121&type=chunk) - The Company's **2024 Interim Report**, containing all information required by the Listing Rules, will be dispatched to the Company's shareholders and published on the HKEX and the Company's website in due course[121](index=121&type=chunk) [Acknowledgement](index=41&type=section&id=Acknowledgement) The Group extends sincere gratitude to all shareholders, customers, partners, and employees for their long-term support and outstanding contributions, and remains committed to sustainable business development to create more value - The Group extends its **sincere gratitude to all shareholders, customers, and partners** for their long-term support, and expresses its **heartfelt thanks to all employees** for their outstanding contributions to the Group's development[122](index=122&type=chunk) - The Group will continue to commit to the **sustainable development of its businesses** to create more value for all shareholders[122](index=122&type=chunk)

Revenue Growth - The company reported a significant increase in revenue, achieving a total of $500 million, representing a 20% growth year-over-year[1]. - The company projects a revenue growth of 25% for the next fiscal year, aiming for $625 million[1]. - The Group's revenue for the year ended December 31, 2023, increased by 41% to approximately RMB 2,717 million, compared to RMB 1,924 million in 2022[62][70]. - Revenue from the construction contracting business rose by 49% from approximately RMB 1,455 million in 2022 to approximately RMB 2,170 million in 2023, attributed to increased construction volume post-epidemic[192]. - Revenue from property development for the year 2023 was RMB 546.7 million, an increase from RMB 468.5 million in 2022, representing a growth of approximately 16.7%[136]. User Engagement - User data indicates a rise in active users to 1.2 million, marking a 15% increase compared to the previous year[1]. Market Expansion - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[1]. - The Group continues to expand its market presence through various large-scale construction projects across different regions in China[100]. Strategic Initiatives - New product launches are expected to contribute an additional $50 million in revenue, with a focus on innovative technology solutions[1]. - A strategic acquisition of a local competitor is anticipated to enhance operational capabilities and increase market penetration[1]. - The company aims to improve its corporate governance practices, with a focus on transparency and accountability in operations[1]. - The Group aims to transform and upgrade the healthcare and elderly care sector, focusing on mid-to-high-end continuous healthcare communities[58][59]. Research and Development - Research and development expenditures have increased by 30%, totaling $30 million, to support new technology initiatives[1]. Awards and Recognition - The company has received several industry awards, including recognition as the "Most Valuable Social Services Company" in 2023[1]. - The construction segment has been awarded the prestigious Luban Award for quality, enhancing the company's reputation in the industry[1]. - Tianbao Construction Group won 12 awards in corporate management, 62 in technology, and 15 in engineering during 2023[32]. Financial Performance - The underlying profit of the Group was approximately RMB 31 million, a significant recovery from the underlying loss of RMB 159 million in 2022[62][68]. - The reported profit amounted to approximately RMB 11 million, contrasting with a reported loss of approximately RMB 347 million in 2022[63][68]. - As of December 31, 2023, the Group's net assets were approximately RMB 1,014 million, an increase from RMB 1,000 million in 2022[75]. - The Group's total bank and other loans increased to approximately RMB 1,046 million in 2023, compared to RMB 904 million in 2022[75]. - The net debt of the Group as of December 31, 2023, was approximately RMB 609 million, up from RMB 278 million in 2022[75]. Construction Projects - The construction of the Jingbei Health City project is expected to create employment opportunities for 5,000 individuals[48][52]. - The backlog value of outstanding projects as of December 31, 2023, was RMB 7,542.6 million, a decrease from RMB 7,934.2 million in 2022, indicating a reduction of approximately 4.9%[120]. - The largest project in the backlog is the Middle School Teacher's Dormitory Construction Project in Lu'an City, with a contract value of approximately RMB 131 million[110]. - The Rainwater and Sewage Pipeline Network Improvement Project in Beidaihe District has a contract value of approximately RMB 103 million, covering 36 km of sewage and drainage pipes[111]. Real Estate Development - The company established 11 new subsidiaries in regions including Anhui and Fujian, bringing the total to 40 subsidiaries across 27 provinces and cities[33]. - The Tianbao Real Estate Group completed the internal public area renovation and landscaping of apartments in Jingbei Health City, meeting delivery conditions[41]. - The company is actively planning a transformation in its real estate strategy based on the Jingbei Health City Project, focusing on the healthcare industry[42]. - The Huailai Jingbei Health City Project aims to address the demand for elderly care in the Beijing area, integrating medical care, rehabilitation, and health care[43]. Elderly Care Focus - The elderly care industry is a key focus of national policies, with the proportion of residents aged 60 and above in Beijing reaching 21.3% in 2022, indicating a growing demand for elderly care services[172][175]. - The central government proposed in May 2023 to expand the Beijing-Tianjin elderly care project into Hebei, focusing on cooperation with tertiary hospitals and utilizing local resources to attract elderly residents[179]. - The Jingbei Health City project will provide 350 medical treatment beds and 8,500 elderly healthcare beds upon completion, with the first phase expected to commence business in Q4 2024[185]. Construction Costs - The Group's costs of sales include labor costs, raw material costs, machinery costs, subcontracting costs, and other costs related to construction contracting services[200]. - Property development costs primarily consist of land costs, construction costs, and rent costs[200].

Financial Performance - Revenue for the year ended December 31, 2023, increased to RMB 2,716,589 thousand, up 41.3% from RMB 1,923,869 thousand in 2022[3] - Gross profit for the year was RMB 161,913 thousand, compared to RMB 114,712 thousand in the previous year, representing an increase of 41.2%[3] - The company reported a net profit of RMB 10,990 thousand for 2023, a significant recovery from a net loss of RMB 347,346 thousand in 2022[3] - Basic earnings per share for the year was RMB 0.01, compared to a loss per share of RMB 0.43 in the previous year[3] - Total revenue for the year ended December 31, 2023, was RMB 2,708,246 thousand, an increase from RMB 1,912,000 thousand in 2022, representing a growth of approximately 41.7%[43] - The group’s basic profit for the year ended December 31, 2023, was approximately RMB 31 million, compared to a basic loss of approximately RMB 159 million for the year ended December 31, 2022[145] - The total tax expenses for the year amounted to RMB 33,285 thousand, compared to RMB 18,746 thousand in 2022[55] - The income tax expense increased to approximately RMB 33.3 million for the year ended December 31, 2023, from a reversal of approximately RMB 18.7 million for the year ended December 31, 2022[144] Assets and Liabilities - Total non-current assets increased to RMB 1,710,921 thousand in 2023, up from RMB 741,054 thousand in 2022[6] - Current liabilities decreased to RMB 4,523,231 thousand in 2023 from RMB 4,992,969 thousand in 2022[8] - The company’s total equity increased slightly to RMB 1,013,971 thousand in 2023 from RMB 1,000,055 thousand in 2022[8] - Total assets as of December 31, 2023, amounted to RMB 6,069,129,000, with total liabilities of RMB 5,055,158,000, indicating a healthy asset-to-liability ratio[34] - As of December 31, 2023, the total interest-bearing bank and other borrowings amounted to RMB 1,045,562 thousand, an increase of 15.6% from RMB 904,238 thousand in 2022[153] - The current ratio as of December 31, 2023, was 1.0, compared to 1.11 in 2022, indicating a slight decrease in liquidity[156] - The capital debt ratio increased to 103.1% in 2023 from 90.4% in 2022, reflecting a higher level of debt relative to equity[156] - The net capital debt ratio rose significantly to 60.1% in 2023 from 27.9% in 2022, indicating increased leverage[156] Revenue Segmentation - The construction contracting segment generated revenue of RMB 2,169,878,000 from external customers, while the real estate development segment contributed RMB 546,711,000, totaling RMB 2,716,589,000 in external sales[34] - Revenue from construction contracting was RMB 2,169,878 thousand for 2023, up from RMB 1,455,411 thousand in 2022, reflecting a growth of about 49.0%[45] - Revenue from real estate development reached RMB 538,368 thousand in 2023, compared to RMB 456,589 thousand in 2022, marking an increase of approximately 17.9%[43] - The pre-tax profit for the group was significantly impacted by construction contracting costs, which rose to RMB 2,069,793 thousand in 2023 from RMB 1,378,760 thousand in 2022, an increase of approximately 50.2%[51] Cash Flow and Financing - The company’s cash and cash equivalents decreased to RMB 187,924 thousand in 2023 from RMB 222,976 thousand in 2022[6] - The group is actively reviewing its debt structure and seeking financing opportunities to improve its financial position[17] - The group aims to generate positive operating cash flow over the next twelve months by enhancing its construction contracting and property development services[17] - The group has secured new long-term bank financing of RMB 800,000,000, with RMB 440,000,000 drawn as of the announcement date[16] - The company reported a significant liquidity concern, with interest-bearing bank and other borrowings due amounting to RMB 540,562,000, while cash and cash equivalents were only RMB 187,924,000[182] Accounting Standards and Compliance - The financial statements are prepared in accordance with International Financial Reporting Standards and the Hong Kong Companies Ordinance, with values rounded to the nearest thousand[12] - The group has adopted new and revised International Financial Reporting Standards for the current year's financial statements[19] - The amendments to IAS 1 require entities to disclose significant accounting policies rather than just the main accounting policies, which may impact users' decisions based on financial statements[20] - The revisions to IAS 8 clarify the distinction between changes in accounting estimates and changes in accounting policies, ensuring consistency in the application of measurement methods and input data[20] - The group has disclosed significant accounting policy information in Note 2 of the financial statements, ensuring compliance with the revised standards[20] Business Operations and Strategy - The group is focusing on the construction contracting business, aligning with national policies to ensure steady development[170] - The real estate segment aims for comprehensive upgrades through strong sales and improved cash collection strategies[171] - The health and wellness business is undergoing a transformation, with a focus on high-end continuous care communities, starting with key projects in Hebei[172] - The company is expanding its construction contracting business beyond the Beijing-Tianjin-Hebei region to areas including Anhui Province and Inner Mongolia[99] - The company has a diversified portfolio of 20 real estate projects, including 17 residential and commercial properties, 2 investment properties, and 1 hotel[101] Shareholder and Governance - The company did not recommend a final dividend for the year ended December 31, 2023, consistent with the previous year[2] - The company has maintained compliance with the corporate governance code throughout the reporting period[164] - The company expresses gratitude to shareholders, customers, and partners for their ongoing support and commits to sustainable business development[186] - The annual general meeting is scheduled for May 23, 2024, with a suspension of share transfer registration from May 20 to May 23, 2024[174]

Financial Performance - The Group's revenue for the six months ended June 30, 2023, was approximately RMB 944 million, a decrease of approximately RMB 50 million (5.0%) compared to the same period in 2022[16]. - Revenue from the property development business was approximately RMB 212 million, representing a decrease of approximately RMB 153 million (41.8%) compared to the 2022 corresponding period[16]. - Revenue from the construction contracting business was approximately RMB 732 million, an increase of approximately RMB 103 million (16.3%) compared to the 2022 corresponding period[16]. - The Group's gross profit for the reporting period was approximately RMB 90 million, with a gross profit margin of 9.6%[17]. - The underlying profit for the reporting period was approximately RMB 26 million, compared to an underlying loss of approximately RMB 13 million for the same period in 2022[17]. - Reported profit for the first half of 2023 was RMB 3,100,000, compared to a loss of RMB 43,245,000 in the same period of 2022[25]. - Underlying profit for the first half of 2023 was RMB 25,787,000, a significant improvement from a loss of RMB 13,393,000 in the first half of 2022[25]. - The total revenue for the first half of 2023 is RMB 944,263,000, a decrease of 5.0% compared to RMB 993,938,000 in the same period of 2022[59]. - The property development business generated revenue of RMB 212,044,000, accounting for 22.5% of total revenue, down from RMB 364,539,000 and 36.7% in 2022[59]. - The construction contracting business revenue increased to RMB 732,219,000, representing 77.5% of total revenue, compared to RMB 629,399,000 and 63.3% in 2022, indicating a growth of 16.4%[59]. Market Trends - National real estate development investment in the first half of 2023 was RMB 5,855 billion, representing a year-on-year decrease of 7.9%[28]. - The sales area of commercial housing in the first half of 2023 was 595.15 million square meters, a year-on-year decrease of 5.3%[28]. - The real estate market is expected to gradually bottom out and recover in the second half of 2023, supported by consumption policies and infrastructure investment growth[35]. - The central and local governments are expected to continue implementing favorable policies to promote the healthy development of the real estate industry in the second half of 2023[36]. Project Development - The Tianbao Jingbei Health City Project is expected to make substantial progress with support from various government levels and industry stakeholders[44]. - The company reported a total of 1,000,000 square meters of completed gross floor area (GFA) across various projects, with 100% of the properties being rentable[50]. - The Tianbao New City Phase I project has a completed GFA of 132,778.0 square meters, with 121,080.0 square meters being saleable[51]. - The Tianbao Smart Building Technology Park Project has a total GFA of 175,434.5 square meters, with 134,658.2 square meters held for future development[50]. - The Tianbao Edelweiss City project has a completed GFA of 272,073.6 square meters, with 200,087.9 square meters being saleable[51]. - The company is actively developing multiple phases of the Tianbao New City, with ongoing projects showing significant square meter allocations for future growth[51]. - The total unsold saleable GFA across all projects is currently 36,346.8 square meters, indicating potential for future sales[51]. - The company has a strategic focus on residential and commercial properties, with a diverse portfolio across different regions[50]. - The Tianbao Lingyun City project has a completed GFA of 89,120.8 square meters, with 60,902.6 square meters being rentable[50]. - The Group's future development plans include several projects with significant GFA under development, indicating a strong growth trajectory[53]. Financial Position - As of June 30, 2023, the net gearing ratio of the Group was approximately 51.6%, up from 27.9% as of December 31, 2022[17]. - The Group's total cash and cash equivalents amounted to approximately RMB 541 million, down from approximately RMB 626 million as of December 31, 2022[183]. - The Group's total interest-bearing bank and other borrowings as of June 30, 2023, were approximately RMB 1,057.446 million, compared to RMB 904.238 million as of December 31, 2022[195]. - The Group's secured bank borrowings had an effective interest rate ranging from 5.20% to 6.65% with maturities between 2024 and 2026[192]. - The Group's cash position included pledged deposits of approximately RMB 326 million as of June 30, 2023, down from approximately RMB 403 million as of December 31, 2022[183]. Construction Contracting - The Group's construction contracting revenue for the six months ended June 30, 2023, reached RMB 732,219,000, a 16.4% increase from RMB 629,399,000 in the same period of 2022[103]. - Revenue from the Beijing-Tianjin-Hebei region accounted for 65.9% of total construction contracting revenue in the first half of 2023, up from 56.6% in 2022[103]. - Building construction projects generated RMB 318,836,000, representing 43.5% of total revenue for the six months ended June 30, 2023[112]. - The Group's industrial, commercial, and infrastructure construction projects contributed RMB 413,383,000, which is 56.5% of total revenue for the same period[112]. - The total outstanding contract value as of June 30, 2023, is RMB 8,552.5 million, an increase of 27.3% from RMB 6,718.4 million in 2022[131]. - New contract value for the six months ended June 30, 2023, is RMB 949.3 million, up from RMB 874.6 million in the same period of 2022, representing an increase of 8.5%[140]. Cost Management - The Group's cost of sales decreased from approximately RMB 916 million for the 2022 Corresponding Period to approximately RMB 854 million for the Reporting Period, representing a decrease of 6.8%[160]. - Selling and distribution expenses decreased from approximately RMB 1.3 million for the 2022 Corresponding Period to approximately RMB 0.1 million for the Reporting Period[166]. - Administrative expenses decreased by 17.2% from approximately RMB 33 million for the 2022 Corresponding Period to approximately RMB 28 million for the Reporting Period[168]. - Finance costs decreased by 5.9% from RMB 31 million for the 2022 Corresponding Period to RMB 29 million for the Reporting Period[174]. - The Group's income tax expenses decreased by RMB 14 million from approximately RMB 23 million in the 2022 Corresponding Period to approximately RMB 9 million in the Reporting Period[179].

B_table indent_4.5 mm N_table indent_4 mm 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 何部份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。 CHINA TIANBAO GROUP DEVELOPMENT COMPANY LIMITED 中國天保集團發展有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1427） 截至2023年6月30日止六個月的未經審核中期業績公告 財務摘要 截至6月30日止六個月 2023年 2022年 附註 人民幣千元 人民幣千元 （未經審核） （未經審核） 收益 －房地產開發及其他業務 212,044 364,539 －建築承包業務 732,219 629,399 毛利 90,326 77,650 基本溢利╱（虧損） ...

Awards and Recognition - China Tianbao Group Development Company Limited received the 2022 China Property Award of Supreme Excellence, recognizing its outstanding performance in the real estate sector[18]. - The company was also awarded the title of Best Infrastructure and Public Utilities Company by Zhitongcaijing and RoyalFlush Caijing, highlighting its leadership in infrastructure development[18]. - The company received multiple awards, including the 10th Guangsha Award from the China Real Estate Association for its residential projects[20]. - The company was recognized as a "Three-star enterprise" in the construction industry in 2022 by the Baoding Municipal Commission of Housing and Urban-Rural Development[25]. - The company was awarded the title of Advanced Unit in Support of the Construction of the Revolutionary Old Area by the General Office of Hebei Provincial People's Government[27]. Financial Performance - The Group's revenue for the year ended December 31, 2022, was approximately RMB1,924 million, a decrease of 33.7% compared to RMB2,900 million in 2021[69]. - The underlying loss for the Group was approximately RMB159 million, contrasting with an underlying profit of RMB79 million in 2021[69]. - The reported loss for the Group amounted to approximately RMB347 million, compared to a reported profit of RMB42 million in 2021[70]. - The decrease in revenue from the property development business was primarily due to a smaller amount of sales recognized after property sales completion[78]. - The construction contracting business experienced lower revenue due to a reduction in contracts and delays in construction progress caused by the epidemic[78]. - The Group's investment properties recorded a fair value loss of RMB72.4 million in 2022[76]. - Realized losses of financial assets at fair value through profit or loss amounted to RMB108.2 million in 2022[76]. - The Group's revenue for the year ended December 31, 2022, decreased by 33.7% to approximately RMB 1,924 million, compared to RMB 2,900 million in 2021[79]. - The underlying loss for the Group was approximately RMB 159 million in 2022, a significant decline from an underlying profit of approximately RMB 79 million in 2021[81]. - As of December 31, 2022, the Group's net assets were approximately RMB 1,000 million, down from RMB 1,346 million in 2021[82]. - The construction contracting business revenue decreased due to reduced contract volumes and lower sales from property projects, with total revenue from this segment at RMB 1,455 million, accounting for 75.7% of total revenue[85]. - The property development segment generated revenue of RMB 468 million, representing 24.3% of total revenue, with a significant drop from RMB 690 million in 2021[85]. Market Strategy and Expansion - The annual report indicates a significant focus on expanding its property portfolio, with detailed breakdowns of properties included in the management discussion[3]. - The company plans to enhance its market presence through strategic acquisitions and partnerships, aiming for a broader reach in the real estate market[3]. - A strategic plan is in place to enter new geographic markets, particularly in Southeast Asia, to diversify revenue streams[3]. - The company aims to achieve a 20% increase in net profit for the upcoming fiscal year, supported by ongoing projects and market expansion strategies[3]. - The Group plans to strengthen cooperation with high-quality customers and accelerate transformation to gather new development momentum[53]. - The Group's expansion into new regions included Anhui Province, Inner Mongolia, Shandong Province, and Jiangsu Province during the reporting period[185]. Property Development and Projects - The company has several projects under development, including Tianbao Smart Building Technology Park with a planned GFA of 175,434.5 sq. m., expected to be completed by September 2023[62]. - The Tianbao New City Phase III project has a completed GFA of 241,355.8 sq. m. and a saleable GFA of 211,032.7 sq. m., with completion expected in December 2019[64]. - The company has a significant focus on residential and commercial properties, with multiple projects located in Zhangjiakou and Zhuozhou areas[62]. - The company has a total of 134,658.2 sq. m. of GFA under development, indicating ongoing expansion efforts in the market[62]. - The company is actively expanding its commercial and residential property portfolio across multiple locations[65]. - The ongoing developments reflect the company's strategic focus on enhancing its market presence and diversifying its property offerings[65]. Construction and Contracting - The Group entered into new construction contracts valued at approximately RMB 2,959.9 million for the year ended December 31, 2022[134]. - The aggregate backlog of construction projects as of December 31, 2022, was approximately RMB 7,934.2 million[134]. - Revenue from the construction contracting business in the Beijing-Tianjin-Hebei region accounted for 59.2% of total revenue in 2022, down from 76.0% in 2021[138]. - The total land reserves of the Group as of December 31, 2022, amounted to approximately 1,739,812 sq.m., with 77.7% located in Zhangjiakou[130]. - The Group's infrastructure construction projects primarily consist of urban roads, bridges, and facilities for water supply and treatment, primarily serving local government entities[148]. - The Group has obtained the Premium Class Certificate in 2017, allowing it to undertake larger-scale and more complex construction projects nationwide[141]. Customer Satisfaction and Product Offerings - User data indicates an increase in customer satisfaction ratings, with a reported 90% satisfaction rate among clients[3]. - The company is exploring new product offerings in sustainable building materials, aligning with global trends towards eco-friendly construction[3].

B_table indent_4.5 mm N_table indent_4 mm 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 何部份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。 CHINA TIANBAO GROUP DEVELOPMENT COMPANY LIMITED 中國天保集團發展有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1427） 截至2022年12月31日止年度的年度業績公告 財務摘要 截至12月31日止年度 2022年 2021年 附註 人民幣千元 人民幣千元 收益 －房地產開發及其他業務 468,458 690,819 －建築承包業務 1,455,411 2,208,722 毛利 114,712 243,634 基本（虧損）╱溢利 1 (159,435) 78,632 ...

Revenue and Profitability - For the six months ended June 30, 2022, the group's revenue was approximately RMB 994 million, an increase of about RMB 118 million (13.4%) compared to the same period in 2021[10]. - The real estate development segment generated revenue of approximately RMB 365 million, a significant increase of about RMB 258 million (241%) compared to the same period in 2021[10]. - The construction contracting business revenue was approximately RMB 629 million, a decrease of about RMB 141 million (18.3%) compared to the same period in 2021[10]. - The group's gross profit was approximately RMB 78 million, with a gross profit margin of 7.8% during the reporting period[11]. - The basic loss for the reporting period was approximately RMB 13 million, compared to a basic profit of approximately RMB 37 million in the same period of 2021[12]. - Revenue for the six months ended June 30, 2022, was RMB 993,938 thousand, an increase of 13.4% compared to RMB 876,365 thousand in the same period of 2021[143]. - Gross profit decreased to RMB 77,650 thousand, down 17.2% from RMB 93,840 thousand year-on-year[143]. - The company reported a total comprehensive income of RMB (38,007) thousand for the six months ended June 30, 2022, compared to RMB (43,245) thousand in the previous period, indicating a reduced loss[158]. Market and Economic Outlook - The real estate market is gradually recovering due to the implementation of supportive policies and the release of pent-up demand, despite ongoing market adjustments[24]. - The outlook for the second half of 2022 indicates that economic growth is expected to continue, supported by the implementation of various growth-stabilizing policies[21]. - The construction industry is expected to benefit from new opportunities due to government measures, including an increase of RMB 3.6 trillion in special bonds to stimulate investment[25]. Construction and Real Estate Development - The construction industry showed stable growth with a total output value of RMB 128,980 billion, an increase of 7.6% year-on-year for the first half of 2022[20]. - The company maintains a focus on optimizing its core competitiveness in both construction and real estate sectors to support sustainable growth[25]. - The company plans to enhance its senior care business as a significant growth driver, with the Tianbao Jingbei Health City being a key project[26]. - The company plans to continue expanding its construction contracting and real estate development operations, focusing on improving profitability in the upcoming periods[165]. Sales and Projects - Residential property sales accounted for 98.6% of total revenue in the first half of 2022, while rental income contributed 1.4%[35]. - The Tianbao Green City project in Zhuozhou has launched 872 units, with 827 units sold, indicating a sales rate of approximately 94.8%[38]. - The Tianbao Wisdom Building Technology Park project has launched 1,816 units, with 389 units sold, reflecting a sales rate of about 21.4%[40]. - The Fuxin Garden project has sold 1,093 out of 1,252 residential units as of June 30, 2022, achieving a sales rate of approximately 87.3%[45]. - The Tianbao Platinum Bay project has sold 660 out of 720 residential units, with deliveries made in the first half of 2022[48]. Financial Position and Ratios - As of June 30, 2022, the group's net capital debt ratio was approximately 25.3%, compared to 24.1% as of December 31, 2021[13]. - The current ratio as of June 30, 2022, was 1.14, down from 1.17 as of December 31, 2021[92]. - The capital debt ratio increased to 60.0% as of June 30, 2022, compared to 59.1% as of December 31, 2021[92]. - The total liabilities for the group as of June 30, 2022, were RMB 5,609,764,000, with the construction contracting segment liabilities at RMB 4,277,183,000 and real estate development segment liabilities at RMB 7,157,235,000[176]. Employee and Corporate Governance - The total employee cost for the group during the reporting period was approximately RMB 7.6 million, a decrease from RMB 9.5 million in the same period of 2021[101]. - As of June 30, 2022, the total number of employees in the group was 376, down from 422 on June 30, 2021[102]. - The company has implemented a stock option plan and a share reward plan to incentivize employees and retain talent[102]. - The company has adhered to all corporate governance codes during the reporting period[106]. Dividends and Shareholder Information - The company does not recommend the payment of any interim dividend for the reporting period[14]. - The company has adopted a dividend policy that balances the need for sufficient reserves for future development and returning value to shareholders[137]. - Major shareholders include 吉祥国际实业有限公司 and 周春兰女士, both holding 594,000,000 shares, representing approximately 73.38% of the company's equity[131]. Financial Performance and Costs - Sales costs rose by 17.1% to approximately RMB 916 million, compared to RMB 783 million in the same period of 2021[78]. - The group’s financing costs increased by 45.6% from RMB 21 million in 2021 to RMB 31 million in the reporting period due to higher actual interest rates on loans[82]. - Income tax expenses rose from approximately RMB 4 million in 2021 to about RMB 23 million in the reporting period, primarily due to taxable profits from real estate development and construction contracting[83].

Company Overview - China Tianbao Group Development Company Limited is incorporated in the Cayman Islands and has a stock code of 01427[1]. - The company has been recognized as one of the top 100 private enterprises in Hebei Province, ranking 46th in 2020[12]. - The management team has extensive experience, with over 35 years in legal, investment, and corporate management[163]. - The current executive team includes individuals with over 20 years of experience in the construction industry[168]. Awards and Recognition - The company received the 2021 Quality China Real Estate Enterprise Award, recognizing its excellence in property management[9]. - The company was awarded the 2021 Engineering Construction Integrity Model Unit by the China Construction Enterprise Management Association[12]. - The company has received multiple awards for its construction quality, including provincial quality engineering awards for its residential projects[12]. - The company received multiple awards, including "Recommended Brand of Real Estate Development Enterprises in Hebei Province" and "Quality Award Organization from Baoding Municipal Government" in 2021[24]. - The company has been awarded for its quality management practices, including the "Quality Award" from the government of Zhuozhou City in 2021[170]. - The company has received multiple awards for outstanding project management and contributions to the construction industry, including the Hebei Province Quality Engineering Award in 2015[185]. Financial Performance - For the year ended December 31, 2021, the company reported revenue of approximately RMB 2.9 billion, a decrease of 13.9% year-over-year[28]. - The net profit for the same period was approximately RMB 42 million, down 87.4% year-over-year[28]. - Gross profit was approximately RMB 240 million, representing a decline of 61.2% year-over-year, with a gross margin of 8.4%, down 10.2 percentage points from the previous year[28]. - The group's revenue for the year ended December 31, 2021, was approximately RMB 2,900 million, a decrease of 13.9% compared to RMB 3,369 million in 2020[45]. - The basic profit decreased by 74.6% to RMB 79 million (2020: RMB 310 million), primarily due to a decline in gross profit from real estate development and fair value losses on financial assets[46]. - The announced profit was approximately RMB 42 million, down 87.4% from RMB 332 million in 2020, attributed to lower sales volume and unexpected pricing in the real estate market[46]. Market and Development Strategy - The company plans to expand its market presence and enhance its product offerings in the upcoming fiscal year[2]. - The company aims to implement advanced performance management strategies to improve operational efficiency[2]. - The company is focused on developing new technologies and products to meet market demands[2]. - The company anticipates that the real estate industry will transition from extensive to refined development, focusing on growth opportunities in the new normal[29]. - The company aims to enhance its core competitiveness and brand influence in both construction and real estate sectors[32]. - The company plans to promote digital construction development and deepen cost control under the "dual carbon" target[32]. Construction Projects - The company has successfully launched new projects such as Tianbao Xue Rong Hua Du and Tianbao Jingxi Fu, with strong sales performance in local markets[23]. - The company reported a completed construction area of 200,403.4 square meters for the Tianma Jingyuan project, with 195,676.1 square meters available for sale[36]. - The company has ongoing projects with a total construction area of 134,658.2 square meters for the Tianbao Zhihui Building, expected to be completed by September 2023[36]. - The company has a future development project, Tianbao Xueyu Huadu, with a planned construction area of 190,887.2 square meters, expected to be completed by December 2021[40]. - The company is currently developing the Tianbao Jingbei Health City commercial section, with a construction area of 59,758.7 square meters, expected to be completed by July 2022[40]. Financial Position and Assets - As of December 31, 2021, the group's net asset value was approximately RMB 1,346 million, an increase from RMB 1,316 million in 2020[52]. - The group had bank deposits of approximately RMB 472 million and total bank and other loans of about RMB 796 million as of December 31, 2021[52]. - The group owned a total land reserve of approximately 1,849,927 square meters, with 236,071 square meters available for sale and 44,336 square meters of completed investment properties[57]. - The total land reserve of the company as of December 31, 2021, is 1,849,927 square meters, with 79.3% located in Zhangjiakou[77]. Challenges and Market Conditions - The group faced challenges due to the COVID-19 pandemic and regulatory policies affecting the real estate market, leading to a decrease in property sales and profit margins[51]. - The company anticipates that the real estate industry will continue to develop under a stable economic environment, supported by government policies and emerging industries like 5G technology[155]. - The company aims to adhere to the principle of "housing is for living, not for speculation" and will focus on sustainable development amidst external market fluctuations[155]. Corporate Governance and Management - The board of directors confirmed compliance with the standards of the securities trading code as of December 31, 2021[153]. - The independent directors have extensive backgrounds in academia and industry, ensuring a diverse range of perspectives in governance[194]. - The company has been actively involved in local government and industry associations, enhancing its influence in the construction sector[169]. - The company has a commitment to corporate culture and management excellence, recognized by various industry bodies[170]. Future Outlook - The company provided guidance for the next quarter, expecting revenue to grow by 10% to 1.32 billion[177]. - New product launches are anticipated to contribute an additional 200 million in revenue over the next year[177]. - Market expansion plans include entering three new regions, projected to increase market share by 5%[177]. - The company is considering strategic acquisitions to bolster its portfolio, with a budget of 100 million allocated for potential deals[177].

Revenue Performance - For the six months ended June 30, 2021, the group's revenue was approximately RMB 876 million, a decrease of about RMB 464 million (34.6%) compared to the same period in 2020[9]. - Total revenue for the first half of 2021 was RMB 876,365 thousand, down from RMB 1,340,334 thousand in the same period of 2020[30]. - Revenue for the first half of 2021 was RMB 876,365 thousand, a decrease of 34.5% compared to RMB 1,340,334 thousand in the same period of 2020[146]. - The company's real estate development business generated revenue of RMB 106,792 thousand, accounting for 12.2% of total revenue, a significant decrease from RMB 661,190 thousand (49.3%) in the same period last year[30]. - The construction contracting business achieved revenue of approximately RMB 769 million, an increase of about RMB 90 million (13.3%) compared to the same period in 2020[9]. - The construction contracting business contributed RMB 769,573 thousand, representing 87.8% of total revenue, compared to RMB 679,144 thousand (50.7%) in the previous year[30]. Profitability - The group's gross profit and gross profit margin for the reporting period were approximately RMB 94 million and 10.7%, respectively[10]. - The net profit for the reporting period was approximately RMB 32 million, a decrease of about RMB 96 million (74.9%) compared to the same period in 2020[11]. - Gross profit for the first half of 2021 was RMB 93,840 thousand, down 68.5% from RMB 297,880 thousand in the first half of 2020[146]. - Profit before tax decreased to RMB 36,364 thousand, a decline of 83.1% from RMB 215,814 thousand in the previous year[146]. - The group's profit for the period was approximately RMB 32 million, a decline of 74.9% compared to approximately RMB 128 million in the same period of 2020[95]. Debt and Financial Ratios - As of June 30, 2021, the group's net capital debt ratio was approximately 27.2%, compared to 10.0% as of December 31, 2020[12]. - The capital debt ratio increased to 60.8% as of June 30, 2021, from 44.1% as of December 31, 2020[105]. - The current ratio as of June 30, 2021, was 1.14, compared to 1.15 as of December 31, 2020[105]. - The group had capital commitments of approximately RMB 483 million as of June 30, 2021, up from RMB 267 million as of December 31, 2020[108]. Real Estate Development - The total land reserve area was approximately 1,954,000 square meters, a decrease of about 1.6% from 1,986,000 square meters as of December 31, 2020[18]. - As of June 30, 2021, the company had a total of 1,200,000 square meters of completed and sellable real estate area, with 210.9 square meters remaining unsold[25]. - The group sold 787 out of 872 launched units in the Tianbao Green City project, representing a sales rate of approximately 90.2% as of June 30, 2021[34]. - The Tianbao Xinyuan project has sold 436 out of 480 units, achieving a sales rate of 91% since its launch in 2020[35]. - The Tianbao Smart Building Technology Park project has launched 1,816 units, with 296 units sold, indicating a sales rate of about 16.3%[36]. - The Tianbao Snow Lotus project has sold 855 out of 1,228 residential units, achieving a sales rate of approximately 69.6% since its pre-sale began in 2019[42]. - The Tianbao Platinum Bay project has sold 422 out of 720 residential units, representing a sales rate of about 58.6% as of June 30, 2021[45]. Construction Contracting - The construction contracting business signed new contracts worth approximately RMB 919 million, an increase of about RMB 582 million (172.7%) compared to the same period in 2020[19]. - The company has expanded its construction contracting business to 18 provinces and municipalities across the country, establishing new offices in several provinces[19]. - The company expects to continue undertaking complex and high-return large-scale building projects nationwide, leveraging its special qualifications obtained in 2017[58]. - The new contract value for industrial, commercial, and infrastructure construction projects was RMB 596.7 million, representing 65.0% of total new contracts[80]. Market and Strategic Outlook - The company plans to continue its strategy of "construction first, real estate follows," enhancing collaboration between real estate development and construction contracting[23]. - The company aims to improve its market share and construction contracting business revenue through qualification reforms and establishing subsidiaries in national markets[23]. - The government continues to support stable housing prices and promote healthy development in the real estate market, which may impact the company's future operations[22]. - The company is committed to advancing high-quality development under the "Belt and Road" initiative, which may open new opportunities for growth[22]. - The construction market in the second half of 2021 is expected to show a coexistence of new and old infrastructure, indicating a diverse ecosystem[22]. Corporate Governance and Shareholder Information - The board of directors has resolved not to recommend the payment of any interim dividend for the reporting period[13]. - The company did not declare any interim dividend during the reporting period, compared to an interim dividend of HKD 0.05 per share in the same period of 2020[137]. - The company has adopted a dividend policy that balances sufficient reserves for future development and shareholder returns[140]. - The group believes that the current arrangement of having the chairman also serve as the CEO will ensure consistent internal leadership and efficient strategic planning[120]. - The group has complied with all applicable corporate governance codes except for a minor deviation regarding the separation of the roles of chairman and CEO[120]. Employee and Operational Information - The total employee cost for the group during the reporting period was approximately RMB 9.5 million, a decrease from RMB 11 million in the same period of 2020[116]. - The total number of employees as of June 30, 2021, was 422, an increase from 391 employees on June 30, 2020[117]. - The group did not engage in any significant acquisitions or disposals during the reporting period[112]. - The group has adopted a share option plan to reward employees and directors for their contributions, with no options granted, exercised, or lapsed during the reporting period[128]. Cash Flow and Financial Position - The net cash flow from operating activities was RMB (145,187) thousand, while the net cash flow from investing activities was RMB (71,433) thousand, and financing activities generated a net cash flow of RMB 221,347 thousand[190]. - The cash and cash equivalents at the end of the period increased to RMB 188,646 thousand, compared to RMB 208,561 thousand at the end of the previous year[190]. - The company’s cash and bank balances, after deducting pledged deposits, amounted to RMB 453,975 thousand[190]. - The company’s total assets as of June 30, 2021, were RMB 1,351,356 thousand, reflecting an increase from the previous period[185]. - The company’s operating loss for the period was RMB (48,517) thousand, indicating challenges in operational performance[185].