Financial Performance - The company achieved a revenue of RMB 8.658 billion for the year ended December 31, 2024, a decrease of RMB 1.704 billion or 16.44% compared to the previous year[11]. - Net profit for the same period was RMB 533 million, reflecting the company's efforts towards high-quality development[15]. - The gross profit for the year was RMB 1.559 billion, down from RMB 1.886 billion in 2023, reflecting the challenging market conditions[14]. - The group's sales cost for the year ended December 31, 2024, was RMB 7.098 billion, a decrease of RMB 1.377 billion or 16.25% compared to RMB 8.475 billion in the previous year[33]. - Other income for the year ended December 31, 2024, was RMB 405 million, a decrease of RMB 12 million or 2.88% from RMB 417 million in the previous year[35]. - The group's annual profit for the year ended December 31, 2024, was RMB 533 million, a decrease of RMB 377 million or 41.43% from RMB 910 million in the previous year[43]. - The company's financing structure improved, with total bank credit increasing to RMB 25.5 billion and a reduction in comprehensive financing costs by 25 basis points[126]. Business Segments - The design, surveying, and consulting business contributed RMB 4.383 billion, accounting for 50.62% of total revenue, while the engineering contracting business generated RMB 4.275 billion, making up 49.38%[13]. - The design, surveying, and consulting segment generated revenue of RMB 4.383 billion, a decline of RMB 484 million or 9.94% from RMB 4.867 billion in 2023[30]. - The engineering contracting segment reported revenue of RMB 4.275 billion, a decrease of RMB 1.220 billion or 22.20% from RMB 5.495 billion in 2023[32]. - The company secured a total contract amount of RMB 7.824 billion as of December 31, 2024, with RMB 2.989 billion from design, surveying, and consulting services, and RMB 4.835 billion from general contracting services[57]. Market Position and Strategy - The company maintained a strong market position by winning six major rail transit design projects during the year, reinforcing its industry leadership[15]. - The company aims to enhance its brand influence and expand its multi-faceted business segments, including high-end consulting and technology industrialization[15]. - The company plans to actively integrate into national strategies and leverage industry opportunities in 2025, focusing on innovation and risk management[16]. - The company is focusing on market expansion, reform, innovation, and improving quality and efficiency as part of its strategic direction[23]. - The company aims to strengthen its position in the rail transit design industry by focusing on major cities' construction planning, particularly in Chengdu, Nanjing, and Xi'an, among others[54]. - The company plans to expand its engineering general contracting business by targeting key cities like Shenzhen and Guangzhou, while also exploring the EPC model for integrated service capabilities[55]. Operational Efficiency and Management - The company is committed to enhancing its management foundation by improving risk control and cash flow management, aiming for effective cost control and resource allocation[56]. - The company has established a quality, environmental, and occupational health safety management system in compliance with international standards, ensuring product quality and continuous improvement[136]. - The company has maintained a strong compliance record, with no significant legal violations or penalties reported during the reporting period[138]. - The company emphasizes employee welfare by providing competitive compensation and various training programs to attract and retain talent[141]. - The company has implemented a dual prevention mechanism for risk control and hazard investigation to enhance safety production levels[143]. Leadership and Governance - The company has a strong leadership team with members holding advanced degrees in engineering and management from prestigious universities[87][89]. - The management team is committed to improving operational efficiency and driving growth through strategic investments and partnerships[86]. - The company has appointed several senior executives with extensive experience in engineering and management, including Mr. Ma Haizhi as Deputy General Manager and Mr. Liu Li as Chief Economist[107][108]. - The company has a diverse management team, including Mr. Liu Hao, a representative supervisor with engineering expertise since August 2017[103]. - The company emphasizes the importance of financial qualifications, with several board members holding advanced degrees and certifications in finance and management[98][99][100][101][102][103][105][106]. Future Outlook and Challenges - The company anticipates ongoing challenges due to external uncertainties but remains optimistic about long-term economic trends and industry potential[22]. - The company is facing significant macroeconomic risks in 2024, including external pressures and internal challenges, with a focus on stabilizing economic growth amidst geopolitical tensions and trade protectionism[128]. - The company aims to leverage emerging technologies such as artificial intelligence, quantum technology, and renewable energy to drive economic growth and industry transformation[129]. - By 2025, the company plans to combine national policy directions to promote intercity and suburban railway construction in key urban clusters, including Beijing-Tianjin-Hebei and the Yangtze River Delta[72]. Shareholder Information - The company reported a proposed final dividend of RMB 0.1077 per share, subject to shareholder approval on June 16, 2025[143]. - The company’s profit distribution policy prioritizes cash dividends, ensuring continuity and stability in returns to shareholders[146]. - The company will withhold a 10% corporate income tax on dividends paid to non-resident enterprises[150]. - The major shareholder, Chengjian Group, holds 571,031,118 domestic shares, representing approximately 59.44% of the domestic shares and 42.34% of the total issued shares[178]. - The company reported a total distributable reserve of approximately RMB 4,146,209,000 as of December 31, 2024[191].

Financial Performance - The company reported a revenue of RMB 8.658 billion for the year ended December 31, 2024, a decrease of RMB 1.704 billion or 16.44% compared to RMB 10.362 billion in the previous year[3][8][11]. - Net profit for the year was RMB 533 million, down RMB 377 million or 41.43% from RMB 910 million in the previous year[3][8][11]. - The gross profit margin for the year was approximately 18.00%, down from 18.19% in the previous year[10]. - The group achieved a gross profit of RMB 1.559 billion for the year ended December 31, 2024, a decrease of RMB 327 million or 17.34% compared to RMB 1.886 billion in the previous year, with a gross margin of 18.01%[17]. - Other income for the group was RMB 405 million, down RMB 12 million or 2.88% from RMB 417 million in the previous year, primarily due to a decrease in interest income[18]. - Other gains decreased significantly to RMB 12 million, down RMB 276 million or 95.83% from RMB 288 million in the previous year, mainly due to the absence of equity disposal gains[19]. - The company reported a net profit of RMB 533 million for the year ended December 31, 2024, a decrease of RMB 377 million or 41.43% from RMB 910 million in the previous year[25]. - Basic and diluted earnings per share decreased to RMB 0.38 from RMB 0.65 in 2023[67]. - The total income tax expense for the year ended December 31, 2024, was RMB 100,208,000, compared to RMB 107,454,000 for 2023, indicating a decrease of 6.2%[93]. Revenue Breakdown - The design, surveying, and consulting business generated revenue of RMB 4.383 billion, a decrease of RMB 484 million or 9.94% from RMB 4.867 billion in 2023[5][14]. - The engineering contracting business reported revenue of RMB 4.275 billion, down RMB 1.220 billion or 22.20% from RMB 5.495 billion in the previous year[5][15]. - Revenue from external customers in China decreased to RMB 8,586,787 thousand in 2024 from RMB 10,342,325 thousand in 2023, representing a decline of 17%[82]. - The engineering contracting segment generated revenue of RMB 4,603,072 thousand in 2024, down from RMB 5,495,140 thousand in 2023, a decrease of 16.2%[81]. - The adjusted profit before tax for the design, surveying, and consulting segment was RMB 479,868 thousand in 2024, compared to RMB 830,773 thousand in 2023, reflecting a decline of 42.2%[80]. - Total customer contract revenue for the year ended December 31, 2024, was RMB 8,621,594,000, a decrease of 16.7% from RMB 10,350,313,000 for the year ended December 31, 2023[87]. Assets and Liabilities - Total assets as of December 31, 2024, were RMB 24.542 billion, a slight decrease from RMB 24.850 billion in 2023[7]. - Total liabilities decreased to RMB 16.609 billion from RMB 17.221 billion in the previous year[7]. - Total assets as of December 31, 2024, amounted to RMB 24,541,927 thousand, slightly down from RMB 24,849,539 thousand in 2023[81]. - Non-current liabilities increased to RMB 5,547,513,000 from RMB 5,222,985,000 in 2023[70]. - The company reported a net asset value of RMB 7,933,407,000, up from RMB 7,628,615,000 in 2023[70]. Operational Highlights - The company established ten marketing centers nationwide to enhance market expansion and resource integration[8]. - The company continues to focus on urban rail transit projects, securing contracts for six major design projects in Beijing and Shenzhen[14]. - The company won contracts totaling RMB 7.824 billion as of December 31, 2024, with RMB 2.989 billion from design, surveying, and consulting, and RMB 4.835 billion from general contracting[41]. - The total amount of contracts on hand reached RMB 24.947 billion by the end of the reporting period[41]. - In 2024, a total of 953.04 kilometers of new urban rail transit lines were added, with the company winning bids for 6 out of 14 total design contracts, ranking first in the industry[47]. Strategic Initiatives - The company plans to strengthen its position in the rail transit design industry and explore new market potentials in urban renewal and other sectors in 2025[37]. - The company is actively developing new businesses in urban renewal, new energy, and municipal infrastructure, aiming for breakthroughs in these emerging fields[39]. - The company is exploring the EPC model for project management to integrate design consulting and engineering management services[38]. - The company is expanding its overseas business in the "Belt and Road" initiative and Southeast Asian markets[39]. - The company plans to enhance its management foundation by improving strategic leadership, resource allocation, and risk control[40]. Market Conditions and Future Outlook - The company anticipates a slowdown in the growth rate of the rail transit construction sector in China by 2025 due to increased competition and economic pressures[58]. - By 2027, significant progress is expected in the construction of new urban infrastructure to enhance urban resilience and risk management capabilities[45]. - The surveying and mapping industry is undergoing digital transformation, with high-precision surveying technologies significantly improving data collection and analysis efficiency[49]. - By 2025, the surveying and mapping industry is expected to continue growing, driven by technological advancements and policy support, despite facing intense market competition[50]. Corporate Governance and Compliance - The company has complied with the corporate governance code as per the listing rules during the reporting period[63]. - The audit committee has reviewed the group's annual performance and the consolidated financial statements prepared in accordance with international financial reporting standards[65]. - The financial statements were prepared in accordance with International Financial Reporting Standards and reflect the company's commitment to transparency[73]. Dividend and Shareholder Information - The company plans to distribute a final dividend of RMB 0.1077 per share, pending shareholder approval at the annual general meeting on June 16, 2025[60]. - The proposed final dividend for the year ended December 31, 2024, is RMB 0.1077 per share, down from RMB 0.1724 per share in 2023, a reduction of 37.5%[94]. - The company has not purchased, sold, or redeemed any of its securities during the reporting period[61]. - The company has no treasury shares as of December 31, 2024[62]. - The company is taking appropriate measures to restore the public float level, which fell to 23.69% after a share transfer in 2018[63].

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 4.18 billion, a decrease of RMB 312 million or 6.95% compared to RMB 4.49 billion in the same period last year[7]. - The net profit for the same period was RMB 377 million, down RMB 23 million or 5.75% from RMB 400 million year-on-year[7]. - The overall decline in revenue was attributed to a reduction in new project openings and a slowdown in the progress of ongoing projects[9]. - The gross profit for the six months ended June 30, 2024, was RMB 822 million, a decrease of RMB 24 million or 2.84% from RMB 846 million in the same period last year, with a gross margin of 19.67%, up from 18.83%[14]. - The company's profit for the period was RMB 366,030 thousand, contributing to a total comprehensive income of RMB 348,161 thousand for the six months ended June 30, 2024[82]. - The total comprehensive income for the period was RMB 359,236 thousand, reflecting the company's overall performance amidst market fluctuations[82]. - The company reported a total profit of RMB 400,462 thousand for the period, compared to RMB 428,571 thousand in the previous year, reflecting a decrease of 6.5%[107]. Revenue Breakdown - The design, surveying, and consulting business segment generated revenue of RMB 2.02 billion, a decline of RMB 233 million or 10.34% from RMB 2.25 billion in the previous year[11]. - The engineering contracting business segment achieved revenue of RMB 2.16 billion, a decrease of RMB 80 million or 3.57% compared to RMB 2.24 billion in the same period last year[12]. - Revenue from design, surveying, and consulting services was RMB 2,016,551 thousand, down from RMB 2,252,405 thousand, representing a decline of 10.5%[111]. - Engineering contracting revenue was RMB 2,150,554 thousand, slightly decreased from RMB 2,236,031 thousand, a decline of 3.8%[111]. Cost and Expenses - The group's sales cost for the six months ended June 30, 2024, was RMB 3.357 billion, a decrease of RMB 289 million or 7.93% compared to RMB 3.646 billion in the same period last year[13]. - The group's administrative expenses for the six months ended June 30, 2024, were RMB 387.75 million, a decrease of RMB 31.52 million or 7.52% from RMB 419.27 million in the same period last year[18]. - The group's financial expenses for the six months ended June 30, 2024, were RMB 141.44 million, a decrease of RMB 6.01 million or 4.08% from RMB 147.45 million in the same period last year[20]. - Employee benefits expenses totaled RMB 680,912,000 for the six months ended June 30, 2024, down from RMB 1,004,860,000 in 2023, representing a decrease of approximately 32.2%[119]. Cash Flow and Liquidity - The net cash outflow from operating activities for the six months ended June 30, 2024, was RMB 721.07 million, an improvement from RMB 1,263.04 million in the same period last year[23]. - The total cash and cash equivalents at the end of June 30, 2024, were RMB 2,234,761 thousand, slightly down from RMB 2,325,039 thousand at the end of June 30, 2023, reflecting a decrease of 3.9%[86]. - The company reported a decrease in trade receivables and notes receivable by RMB 130,500 thousand for the six months ended June 30, 2024, compared to a decrease of RMB (405,234) thousand in the same period of 2023, indicating improved collection efficiency[85]. Strategic Focus and Market Expansion - The company secured over 300 projects in the military-civilian integration sector in Xiong'an, indicating a strategic focus on new growth areas[10]. - The company won the largest design contract in the field of autonomous driving in Beijing, marking an entry into the smart transportation sector[10]. - The company plans to focus on expanding its market presence in cities like Beijing, Xi'an, Dalian, Chengdu, Nanjing, Shaoxing, and Fuzhou, particularly in the rail transit design sector[37]. - New business development will focus on investment areas such as public-private partnerships and urban renewal projects[39]. Corporate Governance and Shareholder Information - The company has established a comprehensive corporate governance structure, including a board of directors, supervisory board, and senior management[66]. - Major shareholders include Chengjian Group with 571,031,118 shares, representing 59.44% of the issued domestic share capital, and Beijing Infrastructure Investment Co., Ltd. with 87,850,942 shares, representing 9.14%[61]. - The public float of the company is currently approximately 23.70%, which does not meet the minimum public float requirement of 25% as per Hong Kong Listing Rules[69]. Future Outlook and Industry Trends - The company is focusing on user-paid models and actively expanding urban rail transit projects that integrate tourism, aiming to enhance stable and diversified revenue sources[45]. - The planning and design market is expected to gradually recover in 2024, with various projects related to urban renewal and ecological development being pushed to market[51]. - The government is emphasizing the reduction of energy consumption per unit of GDP, which presents new business opportunities in environmental protection and ecological restoration for the surveying industry[44].

Investment Rating - Buy (maintained) [2] Core Views - Revenue slightly contracted, but the amount of winning bids increased significantly [2] - The company is a leader in urban rail transit design consulting and will benefit from the development of urban rail transit [2] - The company's gross profit margin increased, and financial expenses decreased [2] - The company's winning bid amount for the first half of 2024 was RMB 5.793 billion, a year-on-year increase of 91.19% [2] - The company's design, survey, and consulting business segment achieved a gross profit margin of 30.03%, an increase of 1.33 percentage points year-on-year [2] Financial Performance - Revenue for the first half of 2024 was RMB 4.18 billion, a year-on-year decrease of 6.95% [2] - Net profit for the first half of 2024 was RMB 377 million, a year-on-year decrease of 5.75% [2] - Comprehensive gross profit margin was 19.67%, an increase of 0.84 percentage points year-on-year [2] - Operating cash flow was -RMB 721 million due to lower operating receipts than payments [2] - Financial expenses were RMB 141 million, a year-on-year decrease of 4.08% [2] Business Segments - Design, survey, and consulting business segment revenue was RMB 2.021 billion, a year-on-year decrease of 10.34% [2] - Urban rail transit engineering segment revenue was RMB 1.521 billion, a year-on-year decrease of 3.73% [2] - Industrial and civil construction and municipal engineering segment revenue was RMB 500 million, a year-on-year decrease of 25.82% [2] - Engineering contracting business segment revenue was RMB 2.159 billion, a year-on-year decrease of 3.57% [2] - Gross profit margin for this segment was 9.96%, an increase of 1.03 percentage points year-on-year [2] Winning Bids - Total winning bids for the first half of 2024 were RMB 5.793 billion, a year-on-year increase of 91.19% [2] - Design, survey, and consulting winning bids were RMB 1.784 billion [2] - Engineering contracting winning bids were RMB 4.009 billion [2] - The company won 4 design projects for urban rail transit in Beijing and Shenzhen, solidifying its leading position in the industry [2] - The company secured a single project worth over RMB 1 billion in ecological environment management [2] Financial Forecast - Expected net profit attributable to the parent company for 2024-2026 is RMB 941 million, RMB 1.072 billion, and RMB 1.118 billion, respectively [2] - Expected EPS for 2024-2026 is RMB 0.70, RMB 0.79, and RMB 0.83, respectively [2] - Current P/E ratios for 2024-2026 are 2.0x, 1.7x, and 1.6x, respectively [2] Market Data - Current stock price: HKD 1.500 [4] - Total market capitalization: HKD 2.023 billion [4] - Free float market capitalization: HKD 582 million [4] - Total shares outstanding: 1.349 billion [4] - Free float shares: 388 million [4] - 3-month turnover rate: 9.49% [4]

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 4.18 billion, a decrease of RMB 312 million or 6.95% compared to RMB 4.49 billion in the same period last year[7]. - The net profit for the same period was RMB 377 million, down RMB 23 million or 5.75% from RMB 400 million in the previous year[7]. - The overall decline in revenue was attributed to a reduction in new project openings and a slowdown in the progress of ongoing projects[9]. - The group's total sales cost for the six months was RMB 3.357 billion, a reduction of RMB 289 million or 7.93% compared to RMB 3.646 billion in the previous year[13]. - The gross profit for the group was RMB 822 million, a decrease of RMB 24 million or 2.84% from RMB 846 million in the same period last year, with a gross margin of 19.67%, up from 18.83%[14]. - Other income for the group was RMB 200.90 million, a decrease of RMB 1.65 million or 0.81% from RMB 202.55 million year-on-year, primarily due to a reduction in interest income[15]. - The group reported a net loss from other gains and losses of RMB 1.47 million, a significant decrease of RMB 14.35 million or 90.71% from RMB 15.82 million in the previous year, mainly due to reduced foreign exchange gains[16]. - The income tax expense increased to RMB 603.3 million, an increase of RMB 274.3 million or 83.37% compared to RMB 329 million in the previous year[21]. - The company's profit for the period was RMB 366,030, contributing to a total comprehensive income of RMB 348,161 after accounting for other comprehensive losses[82]. - The profit attributable to ordinary shareholders for the six months ended June 30, 2024, was RMB 366,030,000, a decrease of 7.3% compared to RMB 394,678,000 for the same period in 2023[124]. Revenue Breakdown - Revenue from the design, surveying, and consulting business segment was RMB 2.02 billion, a decline of RMB 233 million or 10.35% from RMB 2.25 billion in the prior year[10]. - Revenue from the engineering contracting business segment was RMB 2.16 billion, a decrease of RMB 80 million or 3.57% compared to RMB 2.24 billion in the previous year[10]. - For the six months ended June 30, 2024, the group's design, surveying, and consulting business segment revenue was RMB 2.021 billion, a decrease of RMB 233 million or 10.34% compared to RMB 2.254 billion in the same period of 2023[11]. - The engineering contracting business segment achieved revenue of RMB 2.159 billion for the same period, down RMB 80 million or 3.57% from RMB 2.239 billion year-on-year[12]. - Revenue from design, surveying, and consulting services was RMB 2,016,551 thousand, down from RMB 2,252,405 thousand, representing a decline of 10.5%[111]. - Engineering contracting revenue was RMB 2,150,554 thousand, slightly decreased from RMB 2,236,031 thousand, a decline of 3.8%[111]. Project and Market Developments - The company secured over 300 projects in the military-civilian integration field in Xiong'an, indicating a strong growth in new areas such as ecological environment governance and urban renewal[10]. - The company won the largest design contract in the field of autonomous driving in Beijing, marking its entry into the smart transportation sector[10]. - The company ranked first in the industry for the number of design projects won in the rail transit design sector, continuing to solidify its market position[10]. - The company plans to continue expanding its market presence by undertaking preliminary project studies and network planning tasks in cities like Beijing and Hangzhou[10]. - The company aims to strengthen its position in the rail transit design industry and explore new markets such as tourism rail and emerging rail sectors[37]. - The company is focusing on expanding its market presence in the Beijing housing market and the Xiong'an area, winning bids for key projects[46]. - The company is actively developing new business areas such as vehicle-road collaboration and urban simulation, with a focus on intelligent road transformation and smart facility design[49]. Financial Position and Liquidity - As of June 30, 2024, the company's net current assets amounted to RMB 1,433 million, with cash and cash equivalents at RMB 2,235 million, indicating a strong liquidity position[27]. - The company had interest-bearing borrowings of RMB 6.722 billion as of June 30, 2024, with a debt-to-equity ratio of 86.74%[27]. - Total borrowings as of June 30, 2024, were RMB 6.722 billion, a decrease from RMB 6.914 billion as of December 31, 2023[30]. - The group's net cash outflow from operating activities was RMB 721.07 million, an improvement from RMB 1,263.04 million in the same period last year[23]. - The company's cash and cash equivalents as of June 30, 2024, were RMB 2,234,761 thousand, compared to RMB 3,309,696 thousand as of December 31, 2023, indicating a decrease of 32.5%[154]. - The total cash and cash equivalents at the end of the period was RMB 2,234,761 thousand, slightly down from RMB 2,325,039 thousand at the end of the same period in 2023[86]. Corporate Governance and Shareholder Information - The company has established a comprehensive corporate governance structure in compliance with relevant laws and regulations[66]. - Major shareholders include Chengjian Group with 571,031,118 shares, representing 59.44% of the issued domestic share capital and 42.34% of the total issued share capital[61]. - The company has not authorized any directors, supervisors, or senior management to purchase shares or debt securities during the reporting period[55]. - The board of directors has not experienced any changes in the supervisory board members during the reporting period[56]. - The company has not held any treasury shares as of June 30, 2024[65]. - The public float of the company is currently approximately 23.70%, which does not meet the minimum public float requirement of 25% as per Hong Kong Listing Rules[69]. - The company is actively taking measures to restore the public float, including potential share transfers from major shareholders within six months[69]. Strategic Focus and Future Outlook - The company plans to focus on expanding its engineering general contracting and new business development in the second half of 2024[36]. - The company is committed to accelerating the implementation of new investment models and promoting technological industrialization[39]. - The company is focusing on green low-carbon, digital services, and smart integration as part of its strategic direction[52]. - Future outlook includes ongoing investments in new technologies and potential market expansions to drive growth[100]. - The company aims to leverage global technological revolutions and industrial transformations to enhance its competitive edge in the transportation sector[52]. Industry Trends and Government Initiatives - The national engineering survey and design industry reported a revenue of RMB 941.54 billion in 2023, reflecting a year-on-year growth of 5.6%[44]. - The government is emphasizing effective investment in infrastructure and green low-carbon projects, presenting new opportunities for the surveying industry[44]. - The Ministry of Housing and Urban-Rural Development plans to accelerate the transformation of construction methods and aims to complete energy-saving renovations of existing buildings, increasing the renovation area by over 20 million square meters compared to 2023 by the end of 2025[46]. - The planning and design market is expected to gradually recover in 2024, with various projects related to urban renewal and ecological development being pushed to market[51].

Financial Performance - The company achieved a revenue of RMB 10.362 billion for the year ended December 31, 2023, a decrease of RMB 0.71 billion or 0.68% compared to the previous year[15]. - Net profit for the year was RMB 910 million, reflecting the company's commitment to social responsibility and resilient advantages in collaborative development across the entire industry chain[23]. - The company reported a gross profit of RMB 1.886 billion, with a pre-tax profit of RMB 1.018 billion for the year[18]. - The group's sales cost for the year ended December 31, 2023, was RMB 8.475 billion, a decrease of RMB 126 million compared to RMB 8.601 billion in the same period last year, representing a decline of 1.46%[49]. - The group's gross profit for the year ended December 31, 2023, was RMB 1.886 billion, an increase of RMB 53 million from RMB 1.833 billion in the previous year, with a growth rate of 2.89%[50]. - The group's other income for the year ended December 31, 2023, was RMB 417 million, a decrease of RMB 66 million from RMB 483 million in the same period last year, reflecting a decline of 13.66%[53]. - The group's annual profit for the year ended December 31, 2023, was RMB 910 million, an increase of RMB 12 million from RMB 898 million in the previous year, with a growth rate of 1.34%[63]. - The net cash inflow from operating activities for the year ended December 31, 2023, was RMB 328.601 million, significantly lower than RMB 1.149 billion in the previous year[64]. - The group's financial expenses for the year ended December 31, 2023, were RMB 291 million, a decrease of RMB 29 million from RMB 320 million in the previous year, representing a decline of 9.06%[58]. - The group's administrative expenses for the year ended December 31, 2023, were RMB 979 million, an increase of RMB 101 million from RMB 878 million in the previous year, reflecting an increase of 11.50%[56]. Business Segments - The design, surveying, and consulting business generated RMB 4.867 billion, accounting for 46.97% of total revenue, while the engineering contracting business contributed RMB 5.495 billion, representing 53.03%[17]. - Revenue from the design, surveying, and consulting segment reached RMB 4.867 billion, up RMB 406 million or 9.10% from RMB 4.461 billion in 2022[43]. - The urban rail transit engineering segment generated revenue of RMB 3.509 billion, an increase of RMB 294 million or 9.14% compared to RMB 3.215 billion in the previous year[43]. - The engineering contracting segment reported revenue of RMB 5.495 billion, a decrease of RMB 477 million or 7.99% from RMB 5.972 billion in 2022, primarily due to reduced project commencement[48]. Market Position and Strategy - The company secured six major rail transit design projects, ranking first in the industry, demonstrating its leading position in the market[22]. - The company is actively exploring new investment models to expand its business scale and areas, laying a solid foundation for future growth[22]. - The company is focusing on technological innovation and has established a technology industrial park to create a new platform for industrialized development in new energy sectors[22]. - The company aims to expand its design consulting and engineering contracting businesses, focusing on key cities such as Beijing, Fuzhou, Chengdu, and others[83][84]. - The company plans to actively develop new businesses in areas like cultural tourism, urban renewal, and new energy, targeting new investment projects[87]. - The company is focusing on the urban rail transit market, with 306 operational lines and 10,165.7 kilometers of track across 55 cities as of December 31, 2023[102]. - The company is committed to leveraging its industry advantages and technical strengths to navigate challenges posed by economic downturns and industry adjustments[88]. Innovation and Development - The company established a technology innovation park to promote cluster development and innovation in the construction design sector[28]. - The company is enhancing its technology quality system and promoting the use of intelligent design tools to reduce costs and improve quality[87]. - The company launched the "Beijing Urban Construction Design Technology Industrial Park," aimed at consolidating innovation resources and promoting technological innovation[109]. - The company is committed to promoting green and low-carbon development in the engineering surveying and design industry, aligning with national carbon neutrality goals[112]. Leadership and Management - The company has a strong management team with extensive experience in engineering and construction, enhancing its operational capabilities[146]. - The company has appointed Mr. Pei as the non-executive director and chairman since December 2019, indicating a stable leadership structure[145]. - The company emphasizes its commitment to high-level engineering qualifications, with multiple executives holding titles such as Senior Engineer and National Engineering Survey and Design Master[189][190]. - The leadership structure includes a mix of technical and managerial expertise, ensuring a balanced approach to project delivery and strategic planning[184][194]. Future Outlook - The company aims to focus on new models, new fields, and new market breakthroughs in 2024 to accelerate the construction of a new development pattern[32]. - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to 12%[160]. - The company is actively pursuing market expansion, targeting a 25% increase in market share in the next two years through strategic partnerships and acquisitions[170]. - The company plans to enter new geographic markets, with an initial investment of 500 million RMB allocated for the next fiscal year[170].

Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The target price has been revised down to HK$2.85, corresponding to 3.8x/3.6x/3.7x P/E for 2024/2025/2026 [1][3]. - The company's net profit for 2023 decreased by 9.0% year-on-year to RMB 873 million, which was below expectations [1]. - Total revenue for 2023 was RMB 10.362 billion, a slight decline of 0.7% year-on-year, with design, surveying, and consulting revenue increasing by 9.1% to RMB 4.867 billion, while construction contracting revenue fell by 8.0% to RMB 5.495 billion [1][2]. - The company has maintained a dividend payout ratio of 27% over the past two years, resulting in a current dividend yield of 9.9% based on the current share price [2]. Financial Performance Summary - In 2023, the gross profit margin was 18.2%, an increase of 0.6 percentage points, while the expense ratio rose to 15.8%, up by 1.2 percentage points [1]. - The weighted ROE for 2023 was 12.3%, down by 2.5 percentage points, and the total debt ratio was 69.3%, a decrease of 1.4 percentage points [1]. - The net operating cash flow for 2023 decreased significantly to RMB 329 million from RMB 1.149 billion in 2022 [2]. - New contracts signed in 2023 fell by 30% year-on-year to RMB 6.168 billion, with a notable decline in EPC contracts by 52.0% [2]. Future Earnings Forecast - Earnings per share (EPS) forecasts for 2024 and 2025 have been adjusted downwards by 12.0% and 13.1% to RMB 0.683 and RMB 0.721, respectively, with a new forecast for 2026 set at RMB 0.704 [1][5]. - The projected total revenue for 2024 is RMB 10.33 billion, slightly down from 2023 [5].

建筑装饰/专业工程 公 司 研 城建设计（01599.HK） 收入微降盈利能力提升，全力推动回 A 上市 究 2024年04月01日 ——公司信息更新报告 投资评级：买入（维持） 齐东（分析师） 胡耀文（联系人） qidong@kysec.cn huyaowen@kysec.cn 日期 2024/3/28 证 书编号：S0790522010002 证书编号：S0790122080101  收入微降盈利能力提升，轨交设计行业地位领先，维持“买入”评级 当前股价(港元) 1.910 公 一年最高最低(港 元) 2.800/1.890 城建设计发布2023年全年业绩。公司作为城市轨道交通设计咨询领域的引领者， 司 坚持做大设计咨询、积极拓展新业务，将长期受益于城轨发展的红利。受工程承 信 总市值(亿港元) 25.76 包规模收缩影响，我们下调2024-2025年并新增2026年盈利预测，预计2024-2026 息 流通市值(亿港元) 7.41 更 年公司归母净利润分别为9.41、10.71、11.17亿元（2024-2025年原值13.73、16.67 总股本(亿股) 13.49 新 亿元），对应EPS为0.70 ...

Financial Performance - The company reported a total revenue of RMB 10.36 billion for the year ended December 31, 2023, a decrease of RMB 0.71 billion or 0.68% compared to RMB 10.43 billion in 2022[3]. - Net profit for the year was RMB 910 million, an increase of RMB 12 million or 1.34% from RMB 898 million in the previous year[5]. - The company's gross profit for the year was RMB 1.89 billion, compared to RMB 1.83 billion in 2022, reflecting an increase of RMB 54 million[6]. - The group achieved a gross profit of RMB 1.886 billion for the year ended December 31, 2023, an increase of RMB 53 million or 2.89% from RMB 1.833 billion in the previous year, with a gross margin of 18.21%, up from 17.56%[12]. - The design, surveying, and consulting segment's gross profit increased by RMB 131 million or 10.19% to RMB 1.416 billion, with a gross margin of 29.10%, slightly up from 28.81%[12]. - The company reported a total profit of RMB 897,676 for the year, compared to RMB 989,374 in the previous year, reflecting a decline of approximately 9.26%[73]. - The net profit attributable to equity holders of the parent company was RMB 872,852,000 in 2023, down from RMB 959,159,000 in 2022, representing a decrease of about 9.0%[90]. Revenue Breakdown - The design, surveying, and consulting business generated revenue of RMB 4.87 billion, up RMB 406 million or 9.10% from RMB 4.46 billion in 2022[9]. - The engineering contracting business reported revenue of RMB 5.50 billion, a decrease of RMB 477 million or 7.99% from RMB 5.97 billion in the previous year[10]. - Engineering contracting revenue was RMB 5,495,140 for 2023, down from RMB 5,971,865 in 2022, representing a decrease of approximately 7.93%[79]. - Revenue from external customers in China for the year was RMB 10,273,989, slightly down from RMB 10,387,381 in 2022, indicating a decrease of about 1.09%[75]. Expenses and Costs - The company's administrative expenses increased to RMB 979 million from RMB 878 million in the previous year, reflecting a rise of 11.49%[6]. - Selling and distribution expenses increased by RMB 4 million or 5.13% to RMB 82 million, driven by enhanced market expansion efforts[15]. - The sales cost for the year was RMB 84.75 billion, a decrease of RMB 1.26 billion from RMB 86.01 billion in 2022[11]. - Interest income decreased to RMB 406,049,000 in 2023 from RMB 440,847,000 in 2022, a decline of approximately 7.8%[84]. - The company's total financial expenses decreased to RMB 290,799,000 in 2023 from RMB 320,405,000 in 2022, a reduction of approximately 9.2%[84]. Assets and Liabilities - Total assets as of December 31, 2023, were RMB 24.85 billion, while total liabilities were RMB 17.22 billion[4]. - The asset-liability ratio stood at 69.30% as of December 31, 2023[23]. - The company's total liabilities were RMB 11,997,939 thousand, compared to RMB 10,896,141 thousand in the previous year, indicating an increase of 10.1%[56]. - The company's total assets as of December 31, 2023, were RMB 23,861,833, compared to RMB 21,684,811 in 2022, indicating an increase of about 10.04%[73]. - Trade payables increased to RMB 5,913,938,000 in 2023 from RMB 5,384,583,000 in 2022, an increase of approximately 9.8%[94]. Strategic Initiatives and Future Plans - The company aims to continue expanding its market presence and enhancing its service offerings in urban infrastructure projects[5]. - The company plans to focus on expanding design consulting, strengthening engineering contracting, and actively developing new businesses in 2024[27]. - The company is actively pursuing strategic partnerships and investments to enhance its business development and strengthen its technical quality system[31]. - The company plans to accelerate the development of new business areas, including digital products and industrialized interior products, while also expanding into energy storage and smart operation services[30]. - The company is focusing on expanding its presence in potential markets such as tourism rail, urban renewal, and ecological environment projects[30]. Market Environment and Industry Trends - The market environment for the surveying and mapping industry is improving, with a focus on digital transformation and smart surveying as key development directions[38]. - The planning and design market is expected to gradually recover in 2024, with various urban renewal and ecological development projects being implemented[41]. - The Ministry of Natural Resources has issued guidelines to strengthen detailed planning work, promoting urban renewal and comprehensive land development[42]. - The construction industry is expected to see a growth rate of 5.5% to 6.5% in total output for 2024[44]. Corporate Governance and Compliance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations during the reporting period[49]. - The company adopted revised International Financial Reporting Standards for the first time in the current financial year, which are expected to impact annual financial statement disclosures[59]. - The audit committee has reviewed the annual performance and consolidated financial statements prepared in accordance with international financial reporting standards[52].

Financial Performance - For the six months ended June 30, 2023, the company achieved revenue of RMB 4.518 billion, a decrease of RMB 0.94 billion or 2.04% compared to RMB 4.612 billion in the same period last year[7]. - The net profit for the same period was RMB 406.66 million, down RMB 69.33 million or 14.53% from RMB 475.00 million year-on-year[8]. - The gross profit for the first half of 2023 was RMB 848.52 million, compared to RMB 705.29 million in the same period last year, indicating an increase in gross profit margin[8]. - The group's gross profit increased to RMB 848 million, up RMB 143 million or 20.28% from RMB 705 million year-on-year, with a gross margin improvement from 15.29% to 18.77%[14]. - The group's other income and gains decreased to RMB 220.12 million, down RMB 54.04 million or 19.71% from RMB 274.16 million in the previous year, mainly due to reduced interest income from PPP project financial asset models[15]. - The company's revenue for the six months ended June 30, 2023, was RMB 4,518,185 thousand, a slight decrease of 2.04% compared to RMB 4,612,123 thousand for the same period in 2022[67]. - The company reported a decrease in total comprehensive income to RMB 402,966 thousand, compared to RMB 475,606 thousand in the prior year[70]. - The profit for the period (restated) was RMB 484,099,000, contributing to a total comprehensive income of RMB 484,702,000 for the period[76]. Segment Performance - The design, surveying, and consulting business segment generated revenue of RMB 2.259 billion, an increase of RMB 244.36 million or 12.16% from RMB 2.015 billion in the previous year[11]. - The engineering contracting business segment reported revenue of RMB 2.258 billion, a decrease of RMB 338.30 million or 13.02% from RMB 2.597 billion in the same period last year[10]. - The urban rail transit engineering segment contributed RMB 1.586 billion in revenue, reflecting a growth of RMB 133 million or 9.15% compared to RMB 1.453 billion in the previous year[11]. - Revenue from the design, surveying, and consulting segment was RMB 2,258,378, an increase from RMB 2,011,022 in the previous year, reflecting a growth of about 12.3%[97]. - Revenue from the engineering contracting segment was RMB 2,255,773, down from RMB 2,592,461, indicating a decrease of approximately 12.9%[97]. Expenses and Financial Management - The financial expenses for the period were RMB 147.45 million, a decrease from RMB 164.40 million in the previous year, indicating improved financial management[8]. - Selling and distribution expenses rose to RMB 375.8 million, an increase of RMB 69.7 million or 22.77% compared to RMB 306.1 million in the previous year, driven by increased market expansion efforts[16]. - Administrative expenses increased to RMB 4.1927 billion, up RMB 727.3 million or 20.99% from RMB 3.4654 billion year-on-year, primarily due to increased R&D costs for smart design cloud platforms and other technology[17]. - The group's financial assets and contract asset impairment losses decreased to RMB 142.73 million, down RMB 32.75 million or 18.66% from RMB 175.48 million in the previous year[18]. - The company's financial expenses for the period were RMB 164,398, which included interest expenses of RMB 141,332[93]. Cash Flow and Liquidity - The group's net cash outflow from operating activities was RMB 1.263 billion, significantly higher than RMB 569.15 million in the previous year, mainly due to reduced operating receipts and increased payments[23]. - Cash flow from operating activities showed a net outflow of RMB 1,263,036,000 for the six months ended June 30, 2023, compared to an outflow of RMB 569,151,000 for the same period in 2022[78]. - The cash and cash equivalents at the end of the period decreased to RMB 2,325,039 thousand from RMB 3,178,030 thousand, a decline of approximately 26.83%[79]. - The company’s cash and bank balances decreased to RMB 2,240,045,000 as of June 30, 2023, from RMB 4,221,255,000 as of December 31, 2022[143]. Debt and Equity - As of June 30, 2023, the group had interest-bearing borrowings of RMB 6.659 billion, with a debt-to-equity ratio of 93.32%[26]. - The total borrowings of the group amounted to RMB 6,658.96 million, a decrease of 3.54% from RMB 6,903.76 million as of December 31, 2022[27]. - The group’s bank borrowings included secured loans of RMB 5,004.82 million and unsecured loans of RMB 131.98 million as of June 30, 2023[27]. - The company’s total liabilities decreased from RMB 6,903,758 to RMB 6,658,955, a reduction of approximately 3.5%[157]. - The company’s long-term bank loans amounted to RMB 4,434,760, with an interest rate range of 3.00%-5.11%[154]. Market and Strategic Initiatives - The company plans to continue expanding its market presence in the rail transit sector and enhance its engineering contracting capabilities[9]. - The company is actively participating in the PPP market, with infrastructure investment growth significantly boosted by government policies, despite challenges in project approvals and financing[43]. - The company is committed to digital transformation, integrating digital technologies into traditional industries to support smart construction initiatives[42]. - The company is focusing on technological innovation in rail transit, leveraging research platforms and patented technologies to enhance market application of innovations[50]. - The company plans to focus on expanding its design consulting services in key regions such as Beijing-Tianjin-Hebei and the Yangtze River Delta[35]. Corporate Governance - The company has established a comprehensive corporate governance framework, including various rules and regulations to ensure effective oversight and decision-making[63]. - The company has maintained compliance with applicable regulatory laws and corporate governance codes throughout the reporting period[63]. - There were no changes in the board of directors and supervisory board during the reporting period[54]. - The company did not authorize any directors, supervisors, or senior executives to purchase any shares or debt securities during the reporting period[62]. Shareholder Information - As of June 30, 2023, the major shareholder, Chengjian Group, holds 571,031,118 shares, representing 59.44% of the issued domestic shares and approximately 42.34% of the total issued share capital[58]. - The company's public float currently stands at 23.70%, which does not meet the minimum public float requirement of 25% as per Hong Kong listing rules[66]. - The company is actively taking feasible measures to restore the public float level[66]. - The company declared a dividend of RMB 255,978 thousand for the year-end 2022, impacting retained earnings[75]. Future Outlook - The company anticipates an increase in construction tasks in the second half of 2023, particularly in the Greater Bay Area, with significant projects planned for cities like Guangzhou and Shenzhen[47]. - The overall construction market is expected to see a gradual increase in project tenders, particularly in urban rail transit, which is a key focus area for future development[47]. - The company is committed to driving core technology breakthroughs and product innovation to explore new markets and expand its business scope[50].