Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 3,833,658, a decrease of 8.03% compared to RMB 4,168,315 for the same period in 2023[1] - Gross profit for the same period was RMB 155,935, down 3.05% from RMB 160,848 in 2023, with a gross margin of 4.07%, an increase from 3.86%[1] - Profit for the period was RMB 16,849, a significant decline of 46.13% from RMB 31,278 in the previous year, resulting in a net profit margin of 0.44% compared to 0.75%[1] - Basic and diluted earnings per share were RMB 0.03, down from RMB 0.06 in the prior period[2] - Total comprehensive income for the period was RMB 16,311, compared to RMB 31,559 in the previous year[3] - Total revenue for the group was RMB 3,833,658,000, with a pre-tax profit of RMB 17,104,000[12] - Pre-tax profit for the six months ended June 30, 2024, was RMB 17,104 thousand, significantly lower than RMB 32,929 thousand in 2023, representing a decrease of approximately 48.0%[23] - The company declared a final dividend of RMB 0.0182 per share for the six months ended June 30, 2024, compared to RMB 0.0367 per share in 2023, indicating a reduction of about 50.3%[24] Assets and Liabilities - Non-current assets as of June 30, 2024, totaled RMB 494,506, a slight decrease from RMB 504,006 as of December 31, 2023[4] - Current liabilities decreased to RMB 4,837,774 from RMB 5,047,602 at the end of 2023[5] - Total equity as of June 30, 2024, was RMB 1,643,928, a marginal increase from RMB 1,639,128 at the end of 2023[6] - The group’s total assets decreased from RMB 6,825,376,000 as of December 31, 2023, to RMB 6,603,179,000 as of June 30, 2024[14] - The group’s total liabilities decreased from RMB 5,186,248,000 as of December 31, 2023, to RMB 4,959,251,000 as of June 30, 2024[14] - The company's interest-bearing bank and other borrowings as of June 30, 2024, are approximately RMB 330,700,000, down from RMB 445,130,000 as of December 31, 2023, indicating a reduction of about 25.7%[33] Revenue Breakdown - The group reported external customer revenue of RMB 3,787,132,000 from the construction contracting segment for the six months ended June 30, 2024[12] - Revenue from construction contracting for the six months ended June 30, 2024, was RMB 3,787,132 thousand, down from RMB 4,131,023 thousand in 2023, indicating a decrease of about 8.3%[16] - Other income for the six months ended June 30, 2024, totaled RMB 8,934 thousand, compared to RMB 10,590 thousand in 2023, reflecting a decline of approximately 15.6%[18] Expenses - Financial expenses for the six months ended June 30, 2024, were RMB 16,287 thousand, down from RMB 21,219 thousand in 2023, a reduction of about 23.3%[19] - Administrative expenses decreased by approximately 8.82% to RMB 78.4 million, mainly due to reduced salaries and employee benefits[50] - Employee costs amounted to approximately RMB 44.9 million for the six months ended June 30, 2024, representing a decrease of about 14.33% compared to the same period in 2023[64] Impairment and Provisions - The company reported a net impairment loss of RMB 43,945 thousand for the six months ended June 30, 2024, compared to RMB 22,676 thousand in 2023, indicating an increase of approximately 94.4%[20] - The company has maintained a strict control over its accounts receivable, with a net loss provision for receivables increasing to RMB 252,064 as of June 30, 2024, from RMB 223,179 as of December 31, 2023, which is an increase of approximately 12.9%[29] Market and Industry Insights - The total output value of the construction industry in China reached approximately RMB 13.2 trillion for the first half of 2024, representing a year-on-year growth of 5.9%[37] - The total area of residential construction in China was approximately 11.8 billion square meters, a year-on-year decrease of 1.7%[37] - The sales area of commercial housing was approximately 480 million square meters, down 19.0%, with new commercial housing sales amounting to about RMB 4.7 trillion, a decline of 25.0%[37] Strategic Initiatives - The company aims to minimize credit risk through a dedicated credit control department, regularly reviewing overdue balances to ensure financial stability[28] - The company plans to enhance its marketing team and optimize market layout, focusing on local markets in Tongxiang, Jiaxing, and Yiwu, while also seeking opportunities in provincial and overseas markets[65] - The company aims to improve production efficiency by leveraging a smart command center and big data to reduce costs and enhance digital applications[66] Compliance and Governance - The company has fully complied with the corporate governance code as of June 30, 2024[69] - The company has no significant contingent liabilities as of June 30, 2024[62]

Financial Performance - For the year ended December 31, 2023, the company's revenue was approximately RMB 8,315.1 million, a decrease of 2.8% year-on-year[13]. - The net profit for the same period was RMB 12.0 million, representing a significant decline of 78.5% compared to the previous year[13]. - The gross profit margin for 2023 was 4.14%, slightly down from 4.25% in 2022[11]. - Total revenue decreased by approximately 2.8% from RMB 8,551.6 million in 2022 to RMB 8,315.1 million in 2023, primarily due to a reduction in construction contracting business by RMB 229.8 million[58]. - Gross profit decreased by approximately 5.4% from RMB 363.6 million in 2022 to RMB 344.1 million in 2023, with a gross margin decline from approximately 4.3% to 4.1%[59]. - Net profit for the year dropped by 78.5% from RMB 55.8 million in 2022 to RMB 12.0 million in 2023, with a net profit margin decline from approximately 0.7% to 0.1%[68]. - Other income and gains decreased from approximately RMB 30.1 million in 2022 to RMB 17.8 million in 2023, mainly due to a reduction in government subsidies[60]. - Financial and contract asset impairment losses increased by approximately 41.0% to RMB 129.7 million in 2023, attributed to the deteriorating financial conditions of certain clients[62]. Assets and Liabilities - Non-current assets totaled RMB 504.0 million, while current assets increased to RMB 6,321.4 million[11]. - The total equity as of December 31, 2023, was RMB 1,639.1 million, with a capital debt ratio of 15.9%[11]. - Cash and cash equivalents increased to approximately RMB 263.6 million as of December 31, 2023, compared to RMB 221.1 million in 2022[69]. - Contract assets increased by approximately 13.4% from RMB 2,771.0 million on December 31, 2022, to RMB 3,142.0 million on December 31, 2023, representing 46.3% and 49.7% of total current assets respectively[72]. - Trade receivables and notes receivable rose by about 7.6% from RMB 2,060.6 million on December 31, 2022, to RMB 2,217.7 million on December 31, 2023, with turnover days decreasing from approximately 99 days to 93 days[73]. - Trade payables and notes payable increased by approximately 9.8% from RMB 3,438.2 million on December 31, 2022, to RMB 3,775.7 million on December 31, 2023, with turnover days rising from about 145 days to 163 days[74]. - Total interest-bearing borrowings amounted to approximately RMB 665.8 million as of December 31, 2023, compared to RMB 676.0 million in 2022, with short-term borrowings of RMB 527.2 million and long-term borrowings of RMB 138.6 million[75]. - The capital debt ratio increased from approximately 13.2% on December 31, 2022, to about 15.9% on December 31, 2023, primarily due to a decrease in restricted funds and an increase in net debt[77]. Strategic Initiatives - The company has successfully implemented a joint venture in Yiwu and won several key projects, marking a new phase in its "going out" strategy[14]. - The application of BIM technology continues to expand, and the construction of smart sites is accelerating[14]. - Looking ahead to 2024, the company anticipates improvements in the macro environment and downstream demand, with infrastructure investment expected to drive economic growth[15]. - The company aims to enhance core competitiveness by focusing on maintaining total volume, improving quality, and reducing excess capacity[15]. - The company is committed to expanding its market presence and enhancing operational efficiency through strategic initiatives[24]. - The company is actively pursuing new technologies and methodologies to improve construction processes and project outcomes[20]. - The company aims to leverage its extensive experience and strategic partnerships to drive growth and profitability in the coming years[24]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[31]. - A strategic acquisition of a local competitor is in progress, which is anticipated to increase market share by 15%[31]. - The company is investing 100 million RMB in research and development for innovative construction technologies over the next three years[31]. - The management team emphasized a focus on sustainability, aiming to reduce carbon emissions by 20% by 2025[31]. - The company has implemented new operational strategies that are expected to improve profit margins by 5% in the upcoming year[31]. Governance and Management - The company has appointed independent non-executive directors to enhance governance and oversight, ensuring compliance and strategic direction[25][26]. - The company has a diverse board with members holding advanced degrees in economics and engineering, contributing to informed decision-making[25][26]. - The company has a robust management team with over 30 years of combined experience in the construction sector, ensuring stability and expertise[24]. - The company is focused on developing and executing its strategic plans, overseeing overall business development, and managing daily operations[20]. - The company has established a comprehensive internal control system that effectively mitigates risks and meets national legal requirements[178]. - The independent non-executive directors confirmed that the controlling shareholders have complied with the non-competition agreement as of December 31, 2023[165]. - The company has adhered to the corporate governance code and has continuously reviewed its governance practices to meet increasing regulatory demands[168]. - The supervisory board held three meetings during the reporting period to oversee the company's compliance and financial status[173]. - The financial reports of the company and its subsidiaries accurately reflect their actual conditions, with no significant omissions or false records[174]. - The company has established appropriate liability insurance to indemnify directors and senior management[140]. - The remuneration policy for directors and senior management includes salary, allowances, discretionary bonuses, and other benefits based on performance and market comparisons[158]. - Continuous training and professional development for all directors are prioritized to enhance their understanding of responsibilities and compliance[195]. Market and Industry Trends - The total construction output value of the national construction industry reached approximately RMB 31.6 trillion, with a year-on-year growth of 5.8%[43]. - The construction area for the national housing sector decreased by 1.5% year-on-year, with total sales area dropping by 8.5%[43]. - Recent government policies in China aimed at cooling the real estate market may impact the company's project availability and revenue from the construction sector[97]. - The company anticipates that infrastructure investment will continue to be a key driver for growth in 2024, with a focus on digitalization and smart upgrades in the construction industry[88]. Shareholder Information - Mr. Lu Yaoneng holds approximately 38.25% of the company's issued shares, totaling 204,000,000 domestic shares[18]. - Major shareholders include Zhejiang Jujian Holdings Group Co., Ltd., which holds approximately 51% of the company's shares[134]. - The company’s capital structure as of December 31, 2023, includes 400 million domestic shares (75.0%) and 133.36 million H-shares (25.0%) for a total of 533.36 million shares[108]. - The company has adopted a dividend policy aimed at sharing profits with shareholders while retaining sufficient reserves for future development[116]. - The board proposed a final dividend of HKD 0.02 per share, which will be distributed to H-share shareholders[109]. - The company will distribute dividends to H-share shareholders on July 26, 2024, in accordance with relevant tax regulations[110]. - The company has no provisions for preemptive rights for existing shareholders regarding the issuance of new shares[123]. - The board retains discretion to determine the declaration and payment of dividends based on factors such as operational performance and financial condition[118]. - The board reserves the right to update or amend the dividend policy at any time without creating any legal obligation for future dividends[120]. Corporate Social Responsibility - The group made charitable donations of approximately RMB 0.87 million for the year ended December 31, 2023, compared to RMB 0.55 million in 2022[166]. - The company is committed to sustainable development and has initiated multi-faceted risk analysis regarding environmental, social, and governance issues[104].

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 8,315,073 thousand, a decrease of 2.8% compared to RMB 8,551,596 thousand in 2022[3] - Gross profit for the same period was RMB 344,133 thousand, down 5.4% from RMB 363,631 thousand, resulting in a gross margin of 4.14%[3] - Net profit for the year plummeted by 78.4% to RMB 12,030 thousand from RMB 55,795 thousand in 2022, leading to a net profit margin of 0.14%[3] - Basic and diluted earnings per share decreased to RMB 0.02 from RMB 0.10 in the previous year[8] - The proposed final dividend for 2023 is RMB 9,674,000, translating to RMB 0.0181 per share, down from RMB 18,685,000 or RMB 0.0350 per share in 2022[59] - Other income and gains fell to approximately RMB 17.8 million, down from RMB 30.1 million due to reduced government subsidies[104] - Financial and contract asset impairment losses increased by approximately 41% to RMB 129.7 million, attributed to deteriorating financial conditions of some clients[106] - The pre-tax profit for 2023 was RMB 10,520,000, down from RMB 55,075,000 in 2022, indicating a significant decrease of about 81.0%[57] Assets and Liabilities - Total current assets increased to RMB 6,321,370 thousand in 2023 from RMB 5,991,039 thousand in 2022, while total current liabilities rose to RMB 5,047,602 thousand from RMB 4,692,739 thousand[10] - The company's total assets less current liabilities stood at RMB 1,777,774 thousand, slightly down from RMB 1,803,457 thousand in 2022[10] - Non-current assets totaled RMB 504,006 thousand in 2023, marginally down from RMB 505,157 thousand in 2022[10] - The company's equity attributable to owners of the parent decreased to RMB 1,609,334 thousand from RMB 1,617,787 thousand in the previous year[11] - The total accounts payable as of December 31, 2023, was RMB 3,775,673,000, an increase from RMB 3,438,205,000 in 2022, reflecting a growth of 9.8%[81] - The debt-to-equity ratio increased from approximately 13.2% as of December 31, 2022, to about 15.9% as of December 31, 2023[121] Revenue Segmentation - Revenue from the construction contracting segment was RMB 8,218,191,000, while other services generated RMB 96,882,000[41] - Revenue from external customers in mainland China was RMB 8,192,955,000, a decrease from RMB 8,551,596,000 in 2022[36] - Major customer revenue was approximately RMB 691,869,000, down from RMB 866,556,000 in the previous year[38] - The recognized revenue for 2023 was RMB 99,554,000, an increase from RMB 65,309,000 in 2022, representing a growth of approximately 52.3%[46] - The total remaining performance obligations amounted to RMB 18,890,572,000 as of December 31, 2023, slightly up from RMB 18,736,795,000 in 2022[50] - The expected revenue to be recognized from contracts in progress by December 31, 2023, is RMB 14,762,720,000, to be recognized over the next six months to three years[50] Impairment and Provisions - The company reported a significant increase in impairment losses on financial and contract assets, rising to RMB 129,736 thousand from RMB 91,975 thousand in 2022[6] - The provision for impairment of accounts receivable rose to RMB 223,179,000 in 2023 from RMB 174,658,000 in 2022, marking an increase of about 27.7%[66] - The expected credit loss for accounts receivable was RMB 106,454,000 as of December 31, 2023, compared to RMB 128,640,000 in 2022, indicating a decrease of about 17.3%[69] - The expected credit loss provision for contract assets increased to RMB 158,362,000 in 2023 from RMB 85,117,000 in 2022, marking an increase of 86.1%[77] - The total expected credit loss for the year was RMB 73,245,000, up from RMB 42,102,000 in 2022, representing a rise of 73.9%[77] Research and Development - The company incurred research and development expenses of RMB 248,576,000 in 2023, up from RMB 240,634,000 in 2022, marking a growth of about 3.3%[55] - The company completed 150 smart construction projects and developed the V1.0 version of the smart operation and maintenance platform[98] - The company launched 58 new R&D projects during the year, with 19 projects completed and accepted[97] Corporate Governance and Compliance - The company confirmed compliance with the non-competition agreement established with its controlling shareholders[132] - The board consists of six executive directors and three independent non-executive directors, adhering to corporate governance codes[135] - The company has adopted the standard code of conduct for securities trading, ensuring compliance by all directors and supervisors[136] - The company's audit committee has reviewed the financial statements for the year ending December 31, 2023, including accounting principles and external auditor reports[150] Future Outlook - The company anticipates that infrastructure investment will remain a key driver for growth in 2024, with a focus on digitalization and innovation in the construction industry[128]

Financial Performance - For the six months ended June 30, 2023, the company's revenue was approximately RMB 4,168.3 million, a decrease of 1.1% compared to RMB 4,214.6 million in the same period of 2022[7]. - Gross profit for the same period was RMB 160.8 million, down 6.32% from RMB 171.7 million year-on-year, resulting in a gross margin of 3.86%[7]. - Net profit for the six months was RMB 31.3 million, representing a decline of 9.38% from RMB 34.5 million in the previous year[7]. - Revenue for the six months ended June 30, 2023, was approximately RMB 4,168.3 million, a slight decrease of about 1.10% from RMB 4,214.6 million for the same period in 2022[27]. - The gross profit decreased by approximately 6.32% to RMB 160.8 million for the six months ended June 30, 2023, compared to RMB 171.7 million for the same period in 2022[28]. - Profit for the period declined by approximately 9.38% from RMB 34.5 million to RMB 31.3 million, with a slight decrease in net profit margin from 0.82% to 0.75%[36]. - The company reported a total comprehensive income of RMB 31,559 thousand, down from RMB 34,514 thousand year-on-year[76]. - The group reported a total depreciation and amortization expense of RMB 14,205,000 for the six months ended June 30, 2023, compared to RMB 13,179,000 in 2022, representing an increase of 7.8%[110]. Revenue and Contracts - New project net prices for the period were RMB 4,741.0 million, significantly higher than RMB 3,163.3 million in the previous year[14]. - The total signed contract amount for construction enterprises nationwide was approximately RMB 514,959 billion, an increase of 5.03% year-on-year[10]. - In the first half of 2023, the company achieved a net value of newly signed projects of approximately RMB 4,741.0 million, with large customer business accounting for 44.22% of the total contract amount[19]. - The company signed 10 projects with contract amounts exceeding RMB 100 million and 5 projects exceeding RMB 300 million during the first half of the year[19]. - Revenue from construction engineering contracting was RMB 4,131,023, accounting for 99.1% of total revenue, while other services contributed RMB 37,292[100]. Costs and Expenses - The gross margin for construction contracting business fell from 3.89% in the first half of 2022 to 3.47% in the first half of 2023, primarily due to rising labor and material costs[28]. - Other income and gains decreased to approximately RMB 10.6 million for the six months ended June 30, 2023, primarily due to a reduction in government subsidies[29]. - Administrative expenses increased by approximately 5.65% from RMB 81.4 million for the six months ended June 30, 2022, to RMB 86.0 million for the six months ended June 30, 2023, primarily due to increased salaries and employee benefits[30]. - Financial costs rose by approximately 8.72% from RMB 19.5 million to RMB 21.2 million, mainly due to increased interest rates and higher average balances of interest-bearing bank and other borrowings[34]. - The total cost of sales for the six months ended June 30, 2023, was RMB 4,007,467,000, slightly down from RMB 4,042,930,000 in 2022, indicating a decrease of 0.9%[110]. Assets and Liabilities - Cash and cash equivalents as of June 30, 2023, were approximately RMB 210.7 million, compared to RMB 221.1 million as of December 31, 2022[38]. - Contract assets decreased by approximately 11.79% from RMB 2,771.0 million to RMB 2,444.3 million, representing 46.25% and 41.21% of total current assets at respective periods[40]. - Accounts receivable and notes receivable increased by approximately 14.68% from RMB 2,060.6 million to RMB 2,363.0 million, due to delayed settlements by customers[41]. - The debt-to-equity ratio increased from approximately 13.2% as of December 31, 2022, to 15.6% as of June 30, 2023, primarily due to increased interest-bearing bank and other borrowings[45]. - The total assets as of June 30, 2023, were RMB 6,496,196, while total liabilities were RMB 4,851,891, resulting in a debt-to-asset ratio of approximately 74.7%[99]. Shareholder and Governance - The company does not recommend the distribution of an interim dividend for the six months ended June 30, 2023[7]. - As of June 30, 2023, the company’s major shareholder, Jujiang Holdings, holds approximately 204 million shares, representing 38.25% of the company's total equity[60]. - The company’s board consists of six executive directors and three independent non-executive directors, fully complying with the corporate governance code[64]. - The audit committee has reviewed the unaudited interim financial statements for the six months ending June 30, 2023, confirming compliance with applicable accounting standards[70]. Strategic Initiatives - The company aims to enhance development quality through market optimization and risk prevention strategies[13]. - The company plans to expand its market presence in Yiwu, leveraging local economic advantages and enhancing cooperation with local governments and enterprises[20]. - The company aims to strengthen internal controls and risk prevention while enhancing external business development and customer maintenance to improve core competitiveness[54]. - The company will focus on key regions and clients to achieve both quantity and quality growth in the Yiwu market, with plans to replicate the Yiwu model and expand into external markets[54]. Other Information - The company has completed the feasibility study for the smart construction base project, which is expected to contribute positively to high-quality development if successfully implemented in the second half of the year[23]. - The company implemented 82 smart construction projects in the first half of 2023, further integrating BIM technology with project management[24]. - No significant post-reporting date events have occurred that would materially affect the company's operational and financial performance[68]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[57]. - The company will publish its interim report on the Hong Kong Stock Exchange and its website, ensuring compliance with listing rules[69].

Financial Performance - For the year ended December 31, 2022, the company's revenue was approximately RMB 8,551.6 million, a decrease of 14.9% year-on-year[12]. - The gross profit for 2022 was RMB 363.6 million, reflecting a decline of 40.3% compared to the previous year[14]. - The net profit for the year was RMB 55.8 million, resulting in a net profit margin of 0.65%[12]. - The total revenue decreased by approximately 14.9% to RMB 8,551.6 million in 2022, down from RMB 10,047.9 million in 2021[61]. - The gross profit fell by about 22.8% to RMB 363.6 million, with a gross margin decrease from 4.7% in 2021 to 4.3% in 2022[62]. - Net profit decreased by 40.3% from approximately RMB 93.4 million for the year ended December 31, 2021, to approximately RMB 55.8 million for the year ended December 31, 2022[71]. - The company reported a net profit margin of 18% for 2022, reflecting improved operational efficiency compared to 15% in 2021[30]. - The company reported a distributable profit of approximately RMB 789.8 million for the fiscal year 2022, an increase from RMB 760.4 million in 2021[126]. Assets and Liabilities - Non-current assets increased to RMB 505.2 million, while current assets rose to RMB 5,991.0 million[12]. - The total equity as of December 31, 2022, was RMB 1,644.3 million, with a debt-to-equity ratio of 13.2%[12]. - Cash and cash equivalents amounted to approximately RMB 221.1 million as of December 31, 2022, compared to RMB 248.2 million as of December 31, 2021[72]. - Contract assets increased by approximately RMB 708.0 million from RMB 2,063.0 million as of December 31, 2021, to RMB 2,771.0 million as of December 31, 2022[75]. - Trade receivables and notes receivable decreased by approximately RMB 517.8 million from RMB 2,578.4 million as of December 31, 2021, to RMB 2,060.6 million as of December 31, 2022[76]. - Total interest-bearing borrowings amounted to approximately RMB 676.0 million as of December 31, 2022, compared to RMB 679.5 million as of December 31, 2021[78]. Market Outlook and Strategy - The outlook for 2023 indicates continued growth in new contract amounts and total output in the construction industry[14]. - The construction industry is expected to continue improving in 2023 due to structural relaxation of macro policies and downstream demand growth[18]. - Infrastructure investment will remain a key driver of economic growth, supported by active fiscal policies providing ample funding sources[18]. - The promotion of subsidized rental housing is anticipated to boost real estate investment[18]. - The company plans to enhance quality business development and major client maintenance to improve market recognition and customer satisfaction in 2023[92]. - The company is actively exploring the integration of BIM technology with construction robotics to create a new construction model, enhancing the commercial application value of BIM[92]. - In 2023, the company anticipates stronger infrastructure investment demand due to increased capital support and the expansion of special bonds, benefiting the construction industry from policy-driven opportunities[91]. Operational Initiatives - The company aims to enhance operational management and production efficiency while accelerating technological advancements and optimizing asset management[18]. - The company plans to enhance digitalization and smart construction as new trends in the industry[14]. - A total of 87 projects were serviced with the upgraded smart construction system, achieving zero breakthroughs in standardized demonstration projects[15]. - The company emphasizes risk management and timely loss mitigation measures to ensure stable operations[15]. - The company is committed to transforming and upgrading its operations to strengthen core competitiveness and achieve sustainable development[18]. - The company is exploring partnerships with technology firms to enhance digital transformation initiatives, aiming to improve customer engagement and operational efficiency[30]. Corporate Governance - The board of directors includes six executive directors and three independent non-executive directors, and the company has fully complied with the corporate governance code during the reporting period[168]. - The company has established a non-competition agreement with its controlling shareholders to prevent direct or indirect competition in its main business areas[161]. - The supervisory board confirmed that the company operated in accordance with laws and regulations, and there were no actions damaging the interests of the company or its shareholders[173]. - The company has committed to continuously reviewing its corporate governance practices to meet increasing regulatory requirements and shareholder expectations[168]. - The board is supported by various committees, including the audit committee, nomination committee, and remuneration and assessment committee, each with a clear written terms of reference[199]. Shareholder Relations - Major shareholder Zhejiang Jujiang Holdings owns approximately 51.33% of the company, with a voting power exceeding one-third[133]. - The company has adopted a dividend policy aimed at sharing profits with shareholders while retaining sufficient reserves for future development[117]. - The board proposed a final dividend of HKD 0.04 per share, which will be distributed to H-share shareholders based on the number of shares registered as of the record date[114]. - The company plans to pay the dividend to shareholders by June 30, 2023, subject to applicable tax regulations[115]. - The total revenue from the largest customer accounted for approximately 10.13% of total sales revenue, up from 6.57% in 2021, while the top five customers contributed 24.97%, an increase from 18.50%[127]. Research and Development - Research and development investments increased by 20% in 2022, totaling 100 million, aimed at advancing product innovation and technology[30]. - The company implemented over 60 technology projects in 2022, receiving multiple awards and patents, including three "High-tech Enterprise" titles[59]. Related Party Transactions - The company received a total of RMB 134 million in service fees from Jujiang Holdings for construction services during the fiscal year ending December 31, 2022, compared to RMB 661 million in 2021[147]. - The annual cap for transactions under the main agreement with Jujiang Holdings for construction services was set at RMB 145 million for the fiscal year ending December 31, 2022[147]. - The company has confirmed compliance with the disclosure requirements under the Listing Rules regarding related party transactions[150].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任 何損失承擔任何責任。 巨匠建設集團股份有限公司 Jujiang Construction Group Co., Ltd. (於中華人民共和國註冊成立的股份有限公司) (股份代號：1459) 截至2022年12月31日止 年度之年度業績公告 財務摘要 截至12月31日止年度 2022 2021 變幅 人民幣千元 人民幣千元 % 收入 8,551,596 10,047,929 (14.89) 毛利 363,631 471,082 (22.81) 毛利率 4.25% 4.69% (0.44) 年內利潤 55,795 93,430 (40.28) 純利率 0.65% 0.93% (0.28) 每股基本及攤薄盈利(人民幣元) 0.10 0.18 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 4,214,634, a decrease of 17.50% compared to RMB 5,108,561 in the same period of 2021[10]. - Gross profit for the same period was RMB 171,704, with a gross margin of 4.07%, down from 4.42% in 2021, reflecting a decrease of 24.03%[10]. - Net profit for the six months was RMB 34,514, representing a significant decline of 54.94% from RMB 76,604 in the previous year[10]. - The group's revenue and net profit for the first half of 2022 were approximately RMB 4,214.6 million and RMB 34.5 million, respectively, representing declines of about 17.5% and 54.9% year-on-year[20]. - Basic and diluted earnings per share for the six months ended June 30, 2022, were RMB 0.07, compared to RMB 0.14 in the same period of 2021, indicating a 50% decline[105]. - The company reported a total comprehensive income of RMB 34,514 thousand for the period, down from RMB 76,604 thousand in the previous year, a decline of 54.8%[105]. - The adjusted profit before tax decreased from RMB 101,434,000 in the previous year to RMB 38,116,000 in the current period, indicating a significant drop in profitability[181][163]. Industry Challenges - The company is facing challenges due to the ongoing impact of the pandemic and rising material costs, leading to compressed profit margins[16]. - The construction industry is experiencing intensified competition and accelerated consolidation, influenced by the downturn in the real estate market since 2021[17]. - Government policies aimed at stabilizing the real estate market are expected to support the construction industry, with a focus on high-quality development rather than rapid growth[17]. - The construction industry is expected to embrace "new economy" trends and green building initiatives, with the company aiming to enhance core competitiveness and digital management[66]. Strategic Initiatives - The company aims to enhance its project management and safety assurance systems as part of its strategic initiatives[18]. - The company plans to focus on customer value creation and expand its core customer base while integrating BIM technology into project management[68]. - The company plans to focus on expanding its market presence and investing in new technologies to drive future growth[106]. - The company is focusing on innovation and technology development to support long-term growth and market expansion[190]. Contract and Project Management - The new signed contract value for the group was approximately RMB 3,163.3 million, with major clients accounting for about 55.6% of the total contract amount[25]. - The group secured its first overseas project in Indonesia, marking a significant milestone in its international expansion strategy[26]. - The group achieved a total of 9 projects with contract amounts exceeding RMB 100 million, and 4 projects exceeding RMB 300 million in the first half of 2022[25]. - The group reported that engineering contracting contributed approximately 99.3% of its revenue for the first half of 2022[31]. - The group’s new signed contracts in the local market accounted for about 27.1% of the total contract amount, with projects in Tongxiang City making up approximately 17.1%[25]. Financial Position and Liquidity - Cash and cash equivalents as of June 30, 2022, were approximately RMB 277.5 million, compared to RMB 248.2 million as of December 31, 2021[49]. - The company plans to maintain optimal liquidity levels to support its growth strategies without significant external debt financing in the short term[50]. - The debt-to-equity ratio decreased from approximately 18.9% as of December 31, 2021, to approximately 15.1% as of June 30, 2022, primarily due to a net cash inflow from operating activities of approximately RMB 70.6 million[55]. - The net cash flow from operating activities was RMB 70,581 thousand, reflecting a significant increase[132]. - The company reported a decrease in accounts receivable and notes receivable, indicating improved cash flow management[132]. Corporate Governance - The company has fully complied with the corporate governance code as of June 30, 2022[89]. - The audit committee has reviewed the interim financial statements for the six months ending June 30, 2022, and found them compliant with applicable accounting standards[94]. - The independent auditor did not identify any issues that would suggest the interim financial information was not prepared in accordance with International Accounting Standard 34[101]. Market Outlook - The overall performance indicates a need for strategic adjustments to address the declining revenue trend observed in the construction engineering sector[190]. - Future outlook may involve exploring new markets and enhancing service offerings to improve revenue streams[190].

Financial Performance - For the year ended December 31, 2021, the company's revenue was approximately RMB 10,047.9 million, representing a year-on-year growth of 25.5%[17] - The gross profit for the same period was RMB 471.1 million, with a growth of 20.0% compared to the previous year[17] - The net profit for 2021 was RMB 93.4 million, resulting in a net profit margin of 0.93%[13] - The company reported a significant increase in revenue, achieving a total of 1.2 billion in 2021, representing a growth of 15% compared to the previous year[30] - For the year ended December 31, 2021, the company's revenue and net profit were approximately RMB 10,047.9 million and RMB 93.4 million, representing an increase of approximately 25.5% and a decrease of approximately 20.4% compared to the previous year[55] - Revenue increased by approximately 25.5% from RMB 8,007.7 million for the year ended December 31, 2020, to RMB 10,047.9 million for the year ended December 31, 2021, primarily due to an increase in construction contracting business by approximately RMB 2,040.2 million[71] Assets and Equity - Non-current assets increased to RMB 484.4 million, up from RMB 313.1 million in 2020[13] - Current assets rose to RMB 5,678.3 million, compared to RMB 5,473.0 million in the previous year[13] - The total equity as of December 31, 2021, was RMB 1,608.0 million, an increase from RMB 1,533.3 million in 2020[13] - The company's capital debt ratio was 18.9%, a decrease from 24.6% in 2020[13] - The capital debt ratio decreased from approximately 24.6% as of December 31, 2020, to about 18.9% as of December 31, 2021, primarily due to a net cash inflow from operating activities of approximately RMB 199.4 million[91] Industry Challenges and Strategies - The construction industry faced challenges due to a debt crisis in the real estate sector, impacting project operations[17] - The company maintained strict control over project operational risks and ensured stable financial management during industry challenges[17] - The company is committed to continuous development and expansion despite the adverse market conditions[17] - The company is focusing on three major business strategies: "large customers, quality business, and going global," which have led to both quantitative and qualitative improvements in business expansion[55] - The construction industry is expected to continue being a driving force for China's economic development, supported by the "14th Five-Year Plan" and a shift towards green building and digital transformation[54] Growth and Market Expansion - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[30] - A strategic acquisition of a local construction firm was completed, valued at 200 million, aimed at enhancing operational capabilities[30] - The company plans to focus on digital transformation and smart construction, utilizing BIM technology to enhance management efficiency and project quality[21] - For 2022, the company aims to maintain stable growth, optimize structure, improve quality, and mitigate risks through refined management practices[21] Operational Efficiency and Technology - The company is investing 30 million in technology upgrades to improve project management efficiency[30] - The company has made significant progress in technology innovation, including the development of the "BIM" technology service and the launch of the "Smart Construction Site" platform[68] - The group plans to focus on government investment projects and expand its EPC (Engineering, Procurement, and Construction) business, enhancing its overall project management capabilities[101] - The group aims to accelerate digital transformation and improve management information systems, integrating IoT technologies and enhancing the "Smart Construction Site Platform" functionality[101] Employee and Management - The total employee cost for the year was approximately RMB 98.4 million, representing an increase of about 23.2% compared to 2020, attributed to an increase in staff and wage raises[98] - The company plans to increase its workforce by 15% to support growth initiatives[30] - The group had 1,146 employees as of December 31, 2021, an increase from 1,038 in 2020[98] Compliance and Governance - The company has established a compliance procedure to ensure adherence to applicable laws and regulations[118] - The company has complied with the public float requirements as per the listing rules as of December 31, 2021[132] - The company has adhered to the disclosure requirements under Chapter 14A of the Listing Rules regarding related party transactions[170] - The independent auditor confirmed that related party transactions were conducted on fair and reasonable terms[169] - The Supervisory Board confirmed that the company operated in accordance with laws and regulations, with no actions harming the interests of the company or shareholders[193] Shareholder and Dividend Information - The board proposed a final dividend of HKD 0.04 per share, which will be distributed to H-share shareholders[123] - The company has adopted a dividend policy aimed at sharing profits with shareholders while retaining sufficient reserves for future development[128] - As of December 31, 2021, the company's distributable reserves amounted to RMB 760.4 million, an increase from RMB 697.3 million in 2020[137] Charitable Contributions - The company donated approximately RMB 436,000 in charitable contributions for the year ended December 31, 2021[184]

Financial Performance - Revenue for the first half of 2021 reached RMB 5,108,561 thousand, a 36.68% increase from RMB 3,737,667 thousand in the same period of 2020[13] - Net profit for the first half of 2021 was RMB 76,604 thousand, representing a 33.39% increase compared to RMB 57,429 thousand in 2020[13] - For the first half of 2021, the company's revenue and net profit were approximately RMB 5,108.6 million and RMB 76.6 million, representing increases of approximately 36.7% and 33.4% year-on-year, respectively[20] - Profit before tax for the six months ended June 30, 2021, was RMB 101,434 thousand, up from RMB 73,016 thousand in 2020, reflecting a growth of approximately 38.9%[105] - The net profit for the period was RMB 76,604 thousand, compared to RMB 57,429 thousand in the previous year, marking an increase of around 33.4%[105] - Basic and diluted earnings per share for the parent company shareholders were RMB 0.14, up from RMB 0.11 in the same period of 2020, representing a growth of approximately 27.3%[105] Revenue Sources - The construction contracting business contributed approximately 99.4% of total revenue for the first half of 2021[28] - The construction contracting segment generated revenue of RMB 5,076,180 thousand, while the other segment contributed RMB 32,381 thousand, highlighting the dominance of the construction segment[152] - The company achieved a significant increase in commercial projects, with new residential and commercial property projects valued at approximately RMB 3,660 million, accounting for about 64.3% of total new contracts[23] - The company reported a total capital expenditure of RMB 24,731 thousand for the period, indicating ongoing investment in operational capacity[153] Cost and Expenses - Gross profit for the first half of 2021 was RMB 226,014 thousand, with a gross margin of 4.42%, down from 5.13% in 2020[13] - Administrative expenses rose by approximately 22.1% from RMB 56.7 million to RMB 69.3 million, driven by increased salaries and employee benefits[36] - Net impairment losses on financial and contract assets surged by approximately 96.1% from RMB 13.6 million to RMB 26.7 million, primarily due to several customers' inability to settle[37] - Interest income for the period was RMB 432 thousand, while financial costs amounted to RMB 35,840 thousand, reflecting the company's financing structure[152] Assets and Liabilities - Cash and cash equivalents amounted to approximately RMB 246.6 million as of June 30, 2021, compared to RMB 184.4 million as of December 31, 2020[44] - Total assets amounted to RMB 5,545,485 thousand, while total liabilities were RMB 3,953,893 thousand[154] - The debt-to-equity ratio improved from approximately 24.6% to 17.1%, primarily due to a net cash inflow from operating activities of approximately RMB 167.6 million[53] - Total current liabilities decreased to RMB 3,775,133 thousand from RMB 4,079,420 thousand, a reduction of 7.5% year-over-year[109] Market and Industry Trends - The real estate market in China showed a stable decline trend in the first half of 2021, impacting overall construction activities[19] - The government has introduced policies to support new infrastructure and urbanization, creating new investment opportunities in the construction sector[19] - The total output value of the construction industry in China was approximately RMB 119,844 billion, an 18.8% increase from RMB 100,840 billion in 2020[19] Company Strategy and Development - The company aims to enhance its technological capabilities and invest in talent development to adapt to changing market demands and competition[19] - The company plans to actively seek suitable markets and enhance service quality in response to challenges and risks, aiming for comprehensive high-quality development[67] - The company will focus on internal management improvements, emphasizing "learning, enhancement, innovation, and implementation" to boost marketing, production, profitability, risk management, and overall operational capabilities[67] Governance and Compliance - The company has fully complied with the corporate governance code as of June 30, 2021[89] - The audit committee, consisting of three independent non-executive directors, has reviewed the financial reporting procedures and internal control systems[96] - The company has adopted the standard code for securities transactions by directors and supervisors, confirming compliance during the reporting period[90] Workforce and Employment - As of June 30, 2021, the company had a total of 1,100 employees, with 658 located in Jiaxing and 442 in other regions of Zhejiang and other provinces in China[62] - Employee costs for the six months ended June 30, 2021, amounted to approximately RMB 42.2 million, representing an increase of about 13.7% compared to the same period in 2020, primarily due to increased headcount and salary raises[62]

Financial Performance - For the year ended December 31, 2020, the company's revenue was approximately RMB 8,007.7 million, representing a year-on-year growth of 13.5%[13] - The gross profit for 2020 was RMB 392.7 million, with a gross margin of 4.90%, compared to 5.27% in 2019[9] - The net profit for the year was RMB 117.4 million, resulting in a net profit margin of 1.47%, down from 1.96% in 2019[9] - The company reported a revenue of 1.2 billion in 2020, representing a year-over-year growth of 15%[29] - For the year ended December 31, 2020, the total revenue increased by approximately 13.5% to RMB 8,007.7 million from RMB 7,055.1 million for the year ended December 31, 2019[61] - Gross profit for the year ended December 31, 2020, was approximately RMB 392.7 million, a 5.7% increase from RMB 371.5 million in the previous year, but the gross margin decreased from 5.27% to 4.90%[63] - Net profit for the year ended December 31, 2020, decreased by approximately 15.2% to RMB 117.4 million, with a net profit margin dropping from 1.96% to 1.47%[72] Assets and Liabilities - Non-current assets increased to RMB 313.1 million in 2020 from RMB 247.2 million in 2019[9] - Current assets rose to RMB 5,473.0 million in 2020, compared to RMB 5,267.6 million in 2019[9] - Total equity amounted to RMB 1,533.3 million, up from RMB 1,436.3 million in 2019[9] - The capital debt ratio increased to 24.6% in 2020 from 11.4% in 2019, indicating a significant rise in financial leverage[9] - Accounts receivable and notes increased by approximately 29.7% from RMB 1,774.9 million on December 31, 2019, to RMB 2,301.4 million on December 31, 2020[77] - Total borrowings increased from approximately RMB 548.2 million on December 31, 2019, to RMB 684.3 million on December 31, 2020, with short-term borrowings at RMB 510.9 million[79] - The debt-to-asset ratio rose from approximately 11.4% on December 31, 2019, to 24.6% on December 31, 2020, primarily due to a decrease in cash and cash equivalents by approximately RMB 89.6 million[80] Strategic Plans and Market Expansion - The company plans to enhance project team construction and accelerate the application of industrialization and information technology, such as BIM technology[14] - 2021 is expected to be a critical year for the company's high-quality development and the start of the "14th Five-Year Plan" period[15] - The company aims to strengthen regional market layout and expand quality business, focusing on government investment projects[15] - The company plans to accelerate its expansion into new fields and integrate its design and construction resources to transition from a single construction contractor to a comprehensive service provider[16] - The company is focusing on expanding its EPC (Engineering, Procurement, and Construction) business, particularly in large public construction projects, super high-rise buildings, and municipal roads[16] - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2023[29] Operational Efficiency and Cost Management - The company aims to enhance its project bidding budget management to improve project win rates and profitability[16] - The company has initiated a cost-cutting strategy aimed at reducing operational expenses by 10% over the next year[29] - The company is investing 50 million in technology upgrades to improve project management systems[29] - A new partnership with a technology firm aims to integrate AI solutions into construction processes, projected to reduce costs by 15%[29] Research and Development - New product development includes the launch of a sustainable building material expected to generate an additional 200 million in revenue[29] - The company has enhanced its BIM technology applications, winning several awards that improve its competitive edge and industry influence[59] Governance and Compliance - The company has fully complied with the Corporate Governance Code, except for deviation from Code Provision A.2.1 regarding the separation of roles of Chairman and CEO[196] - The board has established four committees: Audit Committee, Remuneration and Assessment Committee, Nomination Committee, and Strategic Committee to oversee various aspects of the company[197] - The supervisory board confirmed that all related party transactions during the reporting period were necessary for normal business operations and did not harm the interests of the company or its shareholders[184] - The company has established a comprehensive internal control system that effectively mitigates risks and ensures compliance with relevant laws and regulations[185] Shareholder Information - Major shareholder Zhejiang Jujian Holdings Group Co., Ltd. holds approximately 51.33% of the equity, with Mr. Lu Yaoneng controlling over one-third of the voting rights[134] - As of December 31, 2020, the company had a total issued share capital of 533,360,000 shares, with 75.0% being domestic shares and 25.0% being H shares[110] - The company reported a distributable profit of approximately RMB 697,336,000 for the fiscal year 2020, proposing a final dividend of HKD 0.04 per share[113] Social Responsibility - The management team emphasized a commitment to sustainability, with plans to achieve carbon neutrality by 2025[29] - The company donated approximately RMB 457,000 in charitable contributions during the year ended December 31, 2020[172]