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].

Financial Performance - For the six months ended June 30, 2023, the company reported 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 million, down RMB 69 million or 14.53% from RMB 475 million in the previous year[7]. - The gross profit margin improved to 18.8% from 15.3% year-on-year, with gross profit increasing to RMB 849 million from RMB 705 million[8]. - Other income and gains decreased to RMB 220 million from RMB 274 million year-on-year[8]. - Administrative expenses rose to RMB 419 million from RMB 347 million, reflecting an increase of 20.8%[8]. - Financial expenses decreased to RMB 147 million from RMB 164 million, a reduction of 10.4%[8]. - The company's net profit for the first half of 2023 was RMB 406 million, a decrease of RMB 69 million or 14.53% compared to RMB 475 million in the same period last year[22]. - The profit for the six months ended June 30, 2023, was RMB 405,666,000, a decrease of 14.6% compared to RMB 475,003,000 for the same period in 2022[69]. - Total comprehensive income for the period was RMB 402,966,000, down from RMB 475,606,000 in the previous year, reflecting a decline of 15.3%[70]. Revenue Segmentation - The company's revenue for the design, surveying, and consulting business segment reached RMB 2.26 billion in the first half of 2023, an increase of RMB 245 million or 12.16% compared to RMB 2.01 billion in the same period of 2022[11]. - The urban rail transit engineering segment generated revenue of RMB 1.59 billion, up RMB 133 million or 9.15% from RMB 1.45 billion year-on-year[11]. - The engineering contracting business segment reported revenue of RMB 2.26 billion, a decrease of RMB 339 million or 13.05% from RMB 2.60 billion in the previous year, primarily due to a reduction in overall project commencement[12]. - Revenue from customer contracts was RMB 4,514,151 thousand, with design, surveying, and consulting contributing RMB 2,258,378 thousand, and engineering contracting contributing RMB 2,255,773 thousand[97]. - Total customer contract revenue for the six months ended June 30, 2023, was RMB 4,514,151 thousand, compared to RMB 4,603,483 thousand for the same period in 2022, representing a decrease of approximately 1.9%[100]. Cash Flow and Investments - For the six months ended June 30, 2023, the net cash outflow from operating activities was RMB 1.263 billion, an increase from RMB 569 million in the same period of 2022[23]. - The net cash outflow from investing activities was RMB 263 million, primarily due to expenditures on fixed assets, intangible assets, and other long-term assets amounting to RMB 141 million[23]. - The net cash outflow from financing activities was RMB 397 million, mainly due to repayment of borrowings and interest expenses of approximately RMB 407 million[23]. - The company made a significant investment of RMB 2.15 billion in Yunnan Nanjing Rail Transit Investment Construction Co., accounting for 9.30% of the total assets as of June 30, 2023[29]. Market Strategy and Development - The company plans to continue expanding its market presence in the rail transit industry and strengthen its engineering contracting capabilities[7]. - The company is focused on high-quality development and aims to achieve its operational targets for the year[7]. - In the second half of 2023, the company aims to focus on expanding design consulting and strengthening engineering contracting while promoting new business development[34]. - The company aims to strengthen its design consulting services, focusing on key regions such as Beijing-Tianjin-Hebei and the Yangtze River Delta, while expanding into emerging markets like TOD integration and urban renewal[35]. - The company is committed to national expansion in the engineering construction market, targeting multiple billion-level projects in cities like Beijing and Guangzhou, ensuring efficient project execution[36]. Operational Efficiency and Cost Management - Selling and distribution expenses increased by RMB 69.7 million or 22.77% to RMB 375.8 million, driven by enhanced market expansion efforts[16]. - Administrative expenses rose by RMB 72.73 million or 20.99% to RMB 419.27 million, mainly due to increased R&D costs for smart design cloud platforms and BIM management systems[17]. - The company achieved a reduction in impairment losses on financial and contract assets by RMB 32.75 million or 18.66% to RMB 142.73 million, due to a supplementary agreement for the Zunyi PPP project[18]. - The company is committed to improving its internal controls and management systems to enhance operational efficiency and safeguard its information assets[38]. Shareholder and Governance - The interim report will be sent to H-share shareholders in September 2023 and will be available on the Hong Kong Stock Exchange website[1]. - The company does not plan to distribute interim profits or declare interim dividends for the current period[34]. - 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 has established a comprehensive corporate governance framework in compliance with relevant laws and regulations, enhancing shareholder and stakeholder interests[63]. - The company’s board of directors and supervisory board have not undergone any changes during the reporting period[54]. Financial Position and Assets - As of June 30, 2023, the total interest-bearing borrowings amounted to RMB 6.659 billion, with a debt-to-equity ratio of 93.32%[26]. - The company has pledged contract assets, trade receivables, and intangible assets as collateral for bank loans, with a net value of RMB 6.414 billion as of June 30, 2023[24]. - The company's total assets as of June 30, 2023, amounted to RMB 23,104,413 thousand, compared to RMB 22,957,754 thousand as of June 30, 2022[90][94]. - The total liabilities of the company were RMB 15,968,967 thousand as of June 30, 2023, compared to RMB 16,379,327 thousand as of June 30, 2022[90][94]. - The net asset value increased to RMB 7,135,446,000 from RMB 6,997,448,000, showing an increase of 2.0%[72]. Industry Outlook - The construction industry is expected to see improved market conditions in 2023 compared to 2022, with a focus on high-quality development opportunities[42]. - Infrastructure investment growth accelerated in the first half of 2023 due to government policies, but the supply side remains weak due to local government debt cycles and stricter bond issuance[43]. - The urban rail transit market is expected to see increased construction tasks in the second half of 2023, particularly in major cities like Guangzhou and Shenzhen[47]. - The "14th Five-Year Plan" highlights the need for urban renewal and infrastructure upgrades, creating opportunities for the company in the construction sector[44]. Research and Development - The company plans to enhance its innovation capabilities by increasing R&D efforts, focusing on key technologies, and developing new products such as smart maintenance systems and seismic isolation products to improve market share[37]. - The company is advancing the construction of a national-level R&D platform for urban rail transit, achieving significant technological milestones in prefabricated construction techniques[41]. - The company’s research and development efforts are aligned with new infrastructure demands, enhancing its market competitiveness in urban planning and rail transit technology[50]. Employee and Workforce - The employee count increased to approximately 5,074, reflecting a 4.3% rise compared to the previous year[33]. - The company recognized a total employee benefit expense of RMB 1,004,860 thousand for the first half of 2023, compared to RMB 958,980 thousand for the same period in 2022, representing an increase of approximately 4.8%[106]. - Short-term employee benefits for the six months ended June 30, 2023, amounted to RMB 3,541 thousand, up from RMB 3,105 thousand in 2022, representing an increase of approximately 14%[170]. Risk Management - The company has established a credit control department to assess credit risk, ensuring that overdue balances are regularly reviewed by senior management[15]. - The company does not hold any collateral or other credit enhancement products for its trade receivables, maintaining a diversified customer base to mitigate credit risk[15].

Financial Performance - The company achieved a revenue of RMB 10.6 billion for the year ended December 31, 2022, representing a year-on-year increase of RMB 341 million, or 3.32%[24]. - Net profit for the same period was RMB 911 million, reflecting the company's ability to maintain profitability amidst market challenges[28]. - The gross profit for 2022 was RMB 1.84 billion, with a gross margin reflecting the company's operational efficiency[26]. - The company reported a pre-tax profit of RMB 1.03 billion, showing a solid performance in its core operations[26]. - The group's sales cost for the year ended December 31, 2022, was RMB 8.759 billion, an increase of RMB 374 million or 4.46% compared to the previous year[39]. - The group's gross profit for the year ended December 31, 2022, was RMB 1.841 billion, a decrease of RMB 33 million or 1.76%, with a gross margin of 17.37%, down from 18.27% in the previous year[40]. - Other income and gains for the year ended December 31, 2022, amounted to RMB 836.06 million, an increase of RMB 336.24 million or 67.27% compared to the previous year[41]. - Selling and distribution expenses for the year ended December 31, 2022, were RMB 775.8 million, an increase of RMB 20.2 million or 2.67% from the previous year[42]. - Administrative expenses for the year ended December 31, 2022, were RMB 878.27 million, an increase of RMB 23.21 million or 2.71% compared to the previous year, primarily due to increased R&D investment[43]. - Financial expenses for the year ended December 31, 2022, were RMB 320.41 million, an increase of RMB 36.80 million or 12.98% from the previous year, mainly due to an increase in average interest-bearing borrowings[46]. Business Segments - The design, surveying, and consulting business generated RMB 4.43 billion, accounting for 41.76% of total revenue, while the engineering contracting business contributed RMB 6.17 billion, or 58.24%[25]. - The design, surveying, and consulting segment generated revenue of RMB 4.43 billion, a slight increase of RMB 0.27 billion or 0.61% from RMB 4.40 billion in 2021[38]. - The engineering contracting segment reported revenue of RMB 6.17 billion, an increase of RMB 3.14 billion or 5.36% from RMB 5.86 billion in the previous year[38]. - The company secured nine overall design projects in cities such as Beijing and Shijiazhuang, solidifying its leading position in the rail transit design industry[36]. - The company has undertaken a total of 197 subway lines for overall design by the end of 2022, contributing to urban rail transit development[31]. Strategic Focus and Development Plans - The company plans to focus on integrating development and enhancing its competitive advantages in 2023, aligning with national and capital development strategies[28]. - The company aims to achieve high-quality development while ensuring customer and shareholder satisfaction in the coming year[28]. - The company has emphasized the importance of innovation and responsibility in its operational strategy moving forward[28]. - The company aims to implement its upgrade development goals in 2023, positioning itself for significant growth opportunities[31]. - The company is focused on expanding its engineering contracting business across multiple cities, including Beijing, Guangzhou, and Chongqing[38]. - The company aims to expand its design consulting business, focusing on urban rail transit design and increasing market penetration in economically developed regions such as Beijing-Tianjin-Hebei and the Yangtze River Delta[61]. - In 2023, the company plans to enhance its engineering construction market expansion by implementing a national strategy and improving project performance and profitability[62]. Innovation and R&D - The company was awarded key national R&D projects and established a joint research center with Tsinghua University, enhancing its innovation capabilities[31]. - The company is actively promoting technological industrialization, focusing on key technology research in urban rail transit and smart construction platforms[64]. - The company is increasing R&D investment in core technologies for urban rail transit to strengthen its competitive position in a rapidly evolving market[119]. - The company focused on innovation and technology, successfully obtaining 180 patents and software copyrights, showcasing its comprehensive strength in the industry[114]. Financial Stability and Assets - Total assets as of December 31, 2022, were RMB 23.94 billion, a decrease from RMB 24.67 billion in 2021[26]. - Total liabilities decreased to RMB 16.95 billion from RMB 18.25 billion in the previous year, indicating improved financial stability[26]. - The group's asset-liability ratio as of December 31, 2022, was 70.78%[54]. - The group's net cash inflow from operating activities for the year ended December 31, 2022, was RMB 1.149 billion, attributed to improved cash flow management[50]. Market and Economic Environment - The company has identified significant opportunities in urban infrastructure development, as emphasized by national policies aimed at enhancing urban public transport and rail transit systems[69]. - The focus on infrastructure investment remains a key strategy for stabilizing the macro economy in 2023[78]. - In 2022, the national residential property sales area reached 1.11 billion square meters, a year-on-year decrease of 22.3%[80]. - The company is positioned to benefit from the loosening of real estate policies, which may positively impact the market in the coming years[80]. Corporate Governance and Management - The company has a strong team of supervisors with backgrounds in finance, engineering, and management, enhancing its governance structure[101]. - The management team is well-equipped to navigate the complexities of the market, leveraging their extensive experience and qualifications[102][103]. - The company is committed to maintaining high standards of corporate governance through the appointment of qualified supervisors[97][101]. - The Supervisory Board held three meetings in 2022, focusing on compliance and internal control supervision to enhance corporate governance[194]. Related Party Transactions - The company is committed to monitoring and managing related party transactions in compliance with Hong Kong listing rules[166]. - The company generated revenue of RMB 310 million from services provided to the Construction Group and its affiliates in 2022, against an annual cap of RMB 527 million[176]. - The actual expenditure incurred by the Construction Group and its affiliates for services provided by the company in 2022 was RMB 88 million, compared to an annual cap of RMB 2,142 million[176]. - Independent non-executive directors confirmed that the related party transactions were conducted in the ordinary course of business and on normal commercial terms[187]. Shareholder Information - The board proposed a final dividend of RMB 0.1898 per share, subject to shareholder approval on May 25, 2023[126]. - The company maintains a profit distribution policy prioritizing cash dividends, ensuring continuity and stability[129]. - Major shareholders included Chengjian Group with 571,031,118 shares, representing 59.44% of the domestic share capital and 42.34% of the total issued share capital[149]. - The company’s public float is currently approximately 23.70%, which does not meet the minimum public float requirement of 25% as per Hong Kong Listing Rules[189].

Financial Performance - The company achieved a revenue of RMB 10.6 billion for the year ended December 31, 2022, an increase of RMB 341 million or 3.32% compared to RMB 10.26 billion in 2021[2]. - Net profit for the year was RMB 911 million, up RMB 8 million or 0.89% from RMB 903 million in the previous year[5]. - The company's gross profit for 2022 was RMB 1.84 billion, compared to RMB 1.87 billion in 2021, reflecting a decrease of RMB 133 million[6]. - The gross profit for the group was RMB 1.841 billion, a decrease of RMB 33 million or 1.76% from RMB 1.874 billion in the previous year, resulting in a gross margin of 17.37%, down from 18.27% year-on-year[12]. - The company reported a net profit of RMB 911 million for the year ended December 31, 2022, an increase of RMB 8 million or 0.89% from RMB 903 million in the previous year[19]. - The net profit attributable to the parent company was RMB 972,251 thousand, up from RMB 920,641 thousand in 2021, representing a growth of 5.6%[51]. - The basic and diluted earnings per share for the year were RMB 0.72, compared to RMB 0.68 in the previous year, reflecting an increase of 5.9%[51]. - The company reported a profit for the year of RMB 972,251,000, contributing to a total comprehensive income of RMB 907,739,000 for the year ended December 31, 2022[57]. Revenue Segmentation - The design, surveying, and consulting business generated revenue of RMB 4.43 billion, a slight increase of RMB 27 million or 0.61% from RMB 4.40 billion in 2021[9]. - The engineering contracting business contributed RMB 6.17 billion, an increase from RMB 5.86 billion in the previous year[3]. - Total revenue for the year ended December 31, 2022, was RMB 10,599,845 thousand, with contributions from the Design, Surveying, and Consulting segment at RMB 4,444,876 thousand and the Engineering Contracting segment at RMB 6,173,454 thousand[73]. - Revenue from external customers in the engineering contracting segment reached RMB 6,156,171 for the year ended December 31, 2022, compared to RMB 5,792,279 in 2021, reflecting an increase of about 6.30%[80]. - Customer contract revenue from external customers in the consulting segment was RMB 4,421,960 for the year ended December 31, 2022, compared to RMB 4,396,215 in 2021, showing a slight increase of approximately 0.59%[81]. Cost and Expenses - The group incurred a cost of sales of RMB 8.759 billion for the year ended December 31, 2022, up RMB 374 million or 4.46% from RMB 8.385 billion in the previous year, with the cost increase in line with revenue growth[11]. - Selling and distribution expenses rose to RMB 775.8 million, an increase of RMB 20.2 million or 2.67% from RMB 755.6 million in the previous year, driven by increased market expansion efforts[14]. - Administrative expenses increased to RMB 878.27 million, up RMB 23.21 million or 2.71% from RMB 855.06 million in the previous year, primarily due to increased R&D investments[15]. - Financial expenses were RMB 320.41 million, an increase of RMB 36.80 million or 12.98% from RMB 283.61 million in the previous year, mainly due to an increase in average interest-bearing borrowings[17]. - Research and development costs for the year ended December 31, 2022, were RMB 385,984,000, compared to RMB 355,681,000 in 2021, representing an increase of approximately 8.5%[87]. Assets and Liabilities - Total assets as of December 31, 2022, were RMB 23.94 billion, down from RMB 24.67 billion in 2021[4]. - Total liabilities decreased to RMB 16.95 billion from RMB 18.25 billion in the previous year[4]. - As of December 31, 2022, the total borrowings of the group amounted to RMB 6,903.76 million, a decrease from RMB 7,197.00 million in 2021, reflecting a reduction of approximately 4.07%[24]. - The company’s total liabilities decreased to RMB 10,968,014 thousand from RMB 12,920,290 thousand in the previous year[54]. - The company’s total assets as of December 31, 2022, were RMB 24,665,602, compared to RMB 21,361,732 in 2021, representing a growth of approximately 15.00%[1]. Cash Flow and Investments - The net cash inflow from operating activities was RMB 1.149 billion, significantly up from RMB 383.74 million in the previous year, attributed to improved cash flow management[20]. - The net cash flow from operating activities for the year ended December 31, 2022, was RMB 1,149,443 thousand, significantly higher than RMB 383,738 thousand in 2021, indicating a substantial increase of about 199%[60]. - The net cash flow used in investing activities for the year ended December 31, 2022, was RMB (323,426) thousand, an improvement compared to RMB (703,872) thousand in 2021, showing a reduction in cash outflow by approximately 54%[62]. - The net cash flow used in financing activities for the year ended December 31, 2022, was RMB (853,369) thousand, a decrease from RMB 1,017,715 thousand in 2021, indicating a change of about 184%[62]. - Capital expenditures for the year totaled RMB 264,345 thousand, including new property, plant, and equipment, intangible assets, and right-of-use assets[73]. Strategic Initiatives and Market Position - The company plans to continue expanding its design and consulting services, particularly in urban rail transit and municipal engineering[5]. - The company is focused on integrating industry resources and enhancing service capabilities to drive future growth[5]. - The company is actively fostering technological industrialization, with initiatives in smart design platforms and urban disaster prevention technologies[30]. - The company is focusing on urban renewal and TOD (Transit-Oriented Development) projects to enhance competitiveness in the traditional construction market[43]. - The company has established a strong competitive position in the water environment sector, leveraging big data and AI technologies to meet user needs[46]. Workforce and Corporate Governance - The workforce as of December 31, 2022, comprised approximately 4,946 employees, with 92% holding a bachelor's degree or higher, reflecting a highly educated workforce[33]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations during the reporting period[48]. - Management measures for 2023 include enhancing corporate governance and optimizing the ERP system to support sustainable growth[31]. Acquisitions and Subsidiaries - The company completed the acquisition of a subsidiary, Residential Institute, for a cash consideration of RMB 69,770 thousand, enhancing its market share in architectural design services[106]. - The company has a total of 14 subsidiaries, with significant equity stakes in each, including 100% ownership in several key entities such as Beijing Urban Construction Design Institute and Beijing Urban Construction Rail Transit Engineering Consulting Co., Ltd.[64]. - The company sold its stake in Beijing Urban Construction Intelligent Control Technology Co., Ltd., reducing its ownership from 60% to approximately 30.83%, resulting in a loss of control over the subsidiary[110]. Market Trends and Government Policies - The government has emphasized the importance of infrastructure development, aiming to stabilize economic growth and enhance urban transportation systems[34]. - The PPP model will continue to play a significant role in infrastructure construction, with an increasing integration of innovative financing models[40]. - The construction industry faced challenges in 2022, with a 22.3% year-on-year decline in national commercial housing sales area, totaling 1.11 billion square meters from January to October[43].

Financial Performance - For the six months ended June 30, 2022, the company achieved revenue of RMB 4.466 billion, a decrease of RMB 356 million or 7.38% compared to RMB 4.822 billion in the same period last year[11]. - The net profit for the same period was RMB 487 million, an increase of RMB 87 million or 21.75% from RMB 400 million in the previous year[11]. - The engineering contracting segment reported revenue of RMB 2.451 billion, down RMB 619 million or 20.19% from RMB 3.069 billion in the previous year[15]. - The group reported a pre-tax profit of RMB 537 million, an increase from RMB 443 million year-on-year[12]. - Gross profit for the group was RMB 707 million, a decrease of RMB 175 million or 19.84% year-on-year, with a comprehensive gross margin dropping from 18.29% to 15.83%[21]. - The company reported a net profit of RMB 487 million for the six months ended June 30, 2022, an increase of RMB 87 million or 21.75% compared to the previous year[29]. - The profit for the period was RMB 496,550,000, contributing to a total comprehensive income of RMB 497,153,000[100]. - The net profit for the period was RMB 410,010,000, contributing to a total comprehensive income of RMB 407,906,000 after accounting for other comprehensive losses[102]. Revenue Segmentation - The design, surveying, and consulting segment generated revenue of RMB 2.015 billion, up RMB 262 million or 14.95% from RMB 1.753 billion year-on-year[16]. - The urban rail transit engineering segment contributed RMB 1.453 billion, an increase of RMB 770 million or 5.60% compared to RMB 1.376 billion last year[16]. - The industrial and civil construction and municipal engineering segment saw revenue growth of RMB 1.85 billion, a 49.07% increase from RMB 377 million year-on-year, primarily due to the acquisition of Beijing Residential Building Design Institute[16]. - Revenue from design, surveying, and consulting services was RMB 2,011,022 thousand, an increase of 5.7% from RMB 1,902,889 thousand in 2021[126]. - Revenue from engineering contracting was RMB 2,448,801 thousand, a decrease of 7.1% from RMB 2,635,929 thousand in 2021[126]. Cost and Expenses - The group's total sales cost for the same period was RMB 3.759 billion, down RMB 181 million or 4.59% year-on-year, primarily due to a decline in business revenue[18]. - Financial expenses for the period were RMB 163 million, an increase from RMB 128 million in the previous year[12]. - The group’s administrative expenses decreased by RMB 65.53 million or 16.22% year-on-year to RMB 338.38 million, attributed to enhanced cost control measures[24]. - Employee benefit expenses totaled RMB 894,846,000 for the six months ended June 30, 2022, down 7.6% from RMB 968,560,000 in the same period of 2021[134]. Cash Flow and Liquidity - The net cash outflow from operating activities was RMB 539.57 million, an improvement from RMB 814.24 million in the same period last year[31]. - The group’s cash and cash equivalents amounted to RMB 3.104 billion as of June 30, 2022, indicating a healthy liquidity position[34]. - The company experienced a net decrease in cash and cash equivalents of RMB 1,050,791 thousand, compared to a decrease of RMB 962,912 thousand in the same period last year, highlighting cash flow challenges[105]. - The total cash and cash equivalents at the end of the period were RMB 3,103,629 thousand, up from RMB 2,573,530 thousand at the end of June 2021, reflecting a strong liquidity position[105]. Debt and Financing - As of June 30, 2022, the group had interest-bearing borrowings of RMB 7.192 billion, with a debt-to-equity ratio of 109.20%[34]. - The group’s bank loans include secured loans of RMB 5,293.3 million and unsecured loans of RMB 118.6 million, with lease liabilities amounting to RMB 1,485.9 million[36]. - The company’s total borrowings due within one year increased to RMB 2,073,547 thousand from RMB 1,667,501 thousand year-over-year[186]. - The company’s long-term bank loans (secured) amounted to RMB 3,354,000 thousand with interest rates ranging from 4.41% to 5.11%[186]. Strategic Initiatives - The company plans to expand its business footprint into dozens of cities domestically and internationally, enhancing its brand influence in urban construction design[15]. - The company is focusing on maintaining its leading position in urban rail transit design and is actively pursuing new business opportunities[16]. - The company aims to enhance its investment-driven strategy and promote new products like the "City Simulation" data platform and "Non-Contact Security Check" technology[49]. - The company plans to continue expanding its market presence and developing new technologies to enhance service offerings[130]. Market and Industry Trends - The geographic information industry in China had a total output value of RMB 689 billion in 2020, with a year-on-year growth of 6.4%[56]. - The infrastructure investment market is expected to gain further momentum in the second half of 2022 due to continued fiscal and monetary policy support from the government[57]. - The application of big data in urban rail transit planning and governance has increased significantly, with a focus on enhancing social governance capabilities[64]. - The company is actively participating in the development of smart city projects, which are expected to significantly boost the surveying and mapping industry[56]. Governance and Compliance - The company appointed Mr. Pei Hongwei as the chairman of the third board of directors effective March 11, 2022[74]. - The company has established a governance system comprising the shareholders' meeting, board of directors, supervisory board, and senior management, ensuring compliance with relevant laws and regulations[86]. - The company confirmed compliance with the securities trading code by all directors and supervisors during the reporting period[78]. - The audit committee has reviewed the interim report and the unaudited financial statements for the six months ending June 30, 2022[88]. Shareholder Information - Major shareholders include Chengjian Group with 571,031,118 shares, representing 59.44% of the issued domestic shares and 42.34% of the total issued share capital[80]. - The company’s public float currently stands at 23.69%, which does not meet the minimum public float requirement of 25% as per Hong Kong listing rules[89]. - The total number of shares held by major shareholders reflects a significant concentration of ownership, indicating potential influence over corporate decisions[80][82].

Financial Performance - The company achieved a revenue of RMB 10.488 billion for the year ended December 31, 2021, representing an increase of RMB 503 million or 5.04% compared to the previous year[24]. - Net profit for the same period was RMB 834 million, indicating a stable performance in key operational metrics[28]. - The gross profit for 2021 was RMB 2.010 billion, compared to RMB 1.897 billion in 2020, showing an improvement in profitability[26]. - The net profit for the year was RMB 833.4 million, an increase of RMB 26 million or 3.22% compared to RMB 808 million in the previous year[53]. - The company reported a significant increase in revenue, achieving a total of 39 billion yuan in 2021, marking a year-on-year growth of 15%[109]. - The company reported a net profit margin of 12% for Q3 2023, an improvement from 10% in the previous quarter[92]. Revenue Breakdown - The revenue breakdown shows that design, surveying, and consulting services contributed RMB 4.102 billion (39.12%), while engineering contracting accounted for RMB 6.386 billion (60.88%) of total revenue[25]. - The design, surveying, and consulting segment generated revenue of RMB 4.102 billion, an increase of RMB 0.435 billion or 11.86% from RMB 3.667 billion in 2020[41]. - The engineering contracting business generated revenue of RMB 6.386 billion, a slight increase from RMB 6.318 billion in the previous year[38]. - The engineering contracting segment achieved revenue of RMB 6.386 billion for the year ended December 31, 2021, an increase of RMB 68 million or 1.08% compared to RMB 6.318 billion in the previous year[44]. Assets and Liabilities - Total assets as of December 31, 2021, were RMB 24.228 billion, up from RMB 21.060 billion in 2020, reflecting a growth in asset base[26]. - Total liabilities increased to RMB 17.876 billion from RMB 15.311 billion in the previous year, indicating a rise in financial obligations[26]. - As of December 31, 2021, the group had interest-bearing bank and other borrowings of RMB 7.182 billion, with a debt-to-equity ratio of 113.07%[59]. - The group's cash and cash equivalents amounted to RMB 4.086 billion, indicating a strong liquidity position[59]. Strategic Focus and Development - The company plans to maintain strategic focus and enhance execution in 2022, aiming for high-quality development aligned with national and capital city development strategies[28]. - The company emphasizes the importance of adapting to new development patterns and seizing opportunities amid challenges[28]. - The company aims to innovate and drive growth by focusing on new technologies in transportation, energy efficiency, and digital engineering[69]. - The company has identified new business opportunities in urban renewal, smart engineering, and ecological restoration, aiming to tap into these markets[68]. Market Expansion and Opportunities - The company plans to expand its engineering construction market by targeting key areas outside Beijing, increasing marketing efforts in regions like the Greater Bay Area and Wuhan[67]. - The urban rail transit industry is anticipated to see continued growth, supported by government special bonds and PPP projects, enhancing infrastructure investment[86]. - The international rail transit projects are increasing, particularly in Southeast Asia and the Middle East, with a shift towards PPP construction models[87]. - The company is leveraging its existing project advantages in local resources to expand its market presence in key regions like Beijing, Yangtze River Delta, and Greater Bay Area[85]. Governance and Management - The company has a strong governance structure with independent directors possessing significant expertise in finance and law, enhancing oversight and strategic direction[104]. - The company emphasizes the importance of independent oversight in its governance framework, which is critical for maintaining investor confidence[106]. - The board's composition reflects a commitment to diversity and expertise, which is essential for navigating complex market conditions[102]. - The company continues to strengthen its governance practices by appointing qualified individuals to key positions, enhancing overall corporate performance[101]. Research and Development - The company is investing 50 million in R&D for new technologies aimed at enhancing user experience and operational efficiency[94]. - The company has filed for 111 patents and software copyrights, demonstrating its commitment to research and development[124]. - The company aims to enhance its competitiveness and innovation by focusing on integrated service offerings in urban construction, aligning with its "14th Five-Year Plan" development strategy[124]. Related Party Transactions - The company confirmed that all related party transactions complied with the disclosure requirements of Hong Kong Listing Rules Chapter 14A[198]. - Independent non-executive directors reviewed the ongoing related party transactions and confirmed they were conducted under normal business terms and in the overall interest of shareholders[198]. - The pricing for services is determined based on government pricing, guided pricing, or market pricing principles, ensuring fairness and reasonableness[195].

Financial Performance - For the six months ended June 30, 2021, the company achieved revenue of RMB 4.82 billion, an increase of RMB 0.49 billion or 11.18% compared to RMB 4.34 billion in the same period last year[8]. - The net profit for the same period was RMB 400 million, up RMB 43 million or 12.04% from RMB 357 million in the previous year[8]. - The gross profit margin for the first half of 2021 was approximately 18.3%, compared to 17.9% in the same period last year[9]. - Gross profit for the same period was RMB 882 million, up RMB 106 million or 13.66%, with a gross margin increase from 17.89% to 18.29%[16]. - The total comprehensive income for the period was RMB 398,203 thousand, compared to RMB 355,055 thousand in the previous year, reflecting a growth of 12.1%[79]. - The company's profit for the period was RMB 400,307 thousand, compared to RMB 357,032 thousand in the previous year, indicating a year-over-year increase of around 12.1%[95]. Revenue Breakdown - The design, surveying, and consulting business segment generated revenue of RMB 1.75 billion, a 17.81% increase from RMB 1.49 billion year-on-year[11]. - The engineering contracting business segment reported revenue of RMB 3.07 billion, reflecting a growth of RMB 0.22 billion or 7.72% compared to RMB 2.85 billion in the previous year[14]. - The urban rail transit engineering segment's revenue was RMB 1.38 billion, up 20.28% from RMB 1.14 billion in the same period last year[12]. - Revenue from design, surveying, and consulting services was RMB 1,751,330 thousand, up from RMB 1,485,580 thousand in 2020, reflecting a growth of about 17.9%[100]. - Engineering contracting revenue increased to RMB 3,004,657 thousand from RMB 2,846,444 thousand, marking a rise of approximately 5.5%[100]. Expenses and Costs - The total operating expenses increased to RMB 576 million, up from RMB 461 million in the previous year, primarily due to higher administrative and financial costs[9]. - The group's sales cost for the six months ended June 30, 2021, was RMB 3.94 billion, an increase of RMB 379 million or 10.64% compared to the same period last year[15]. - Selling and distribution expenses rose to RMB 424 million, an increase of RMB 116 million or 37.71%, driven by enhanced market expansion efforts[18]. - Administrative expenses increased to RMB 403.91 million, up RMB 73.13 million or 22.11%, mainly due to increased R&D investments[19]. - The total employee benefit expenses for the six months ended June 30, 2021, were RMB 902,837 thousand, compared to RMB 717,664 thousand in the same period of 2020, representing a rise of approximately 25.8%[107]. Cash Flow and Liquidity - The net cash outflow from operating activities was RMB 814.24 million, with total cash outflows for purchases and services amounting to RMB 4.76 billion[25]. - The total cash and cash equivalents at the end of the period was RMB 2,568,462,000, down from RMB 2,966,973,000 at the end of June 2020, reflecting a decrease of approximately 13.4%[86]. - The net cash flow used in operating activities for the six months ended June 30, 2021, was RMB (814,244,000), compared to RMB (493,572,000) for the same period in 2020, indicating a significant increase in cash outflow[85]. - The financing activities generated a net cash flow of RMB 287,358,000 for the six months ended June 30, 2021, a significant increase from RMB 10,588,000 in the same period of 2020[86]. Debt and Borrowings - As of June 30, 2021, the group had interest-bearing borrowings of RMB 5.79 billion, with a debt-to-equity ratio of 97.80%[29]. - The total borrowings as of June 30, 2021, were RMB 5.79 billion, an increase from RMB 5.30 billion as of December 31, 2020[30]. - The company reported a non-current portion of borrowings of RMB 5,250,980 thousand, an increase from RMB 4,971,816 thousand as of December 31, 2020[149]. - The total interest-bearing bank and other borrowings reached RMB 6,032,807 thousand, an increase of 9.1% from RMB 5,530,369 thousand on December 31, 2020[149]. Investments and Projects - The company invested RMB 1.73 billion in Yunnan Nanjing Rail Transit Investment Construction Co., accounting for 8.1% of total assets as of June 30, 2021[32]. - The company has won contracts totaling RMB 12.94 billion, with RMB 2.753 billion from design, surveying, and consulting services, and RMB 10.187 billion from general contracting projects[37]. - The company secured two major design and consulting projects for urban rail transit, including the Zhengzhou K2 line and the Hangzhou to Deqing intercity railway[45]. - The company won a PPP project for the Chongqing suburban railway, marking a significant innovation in the rail transit investment and construction sector[46]. Shareholder Information - As of June 30, 2021, Wang Hanjun and Li Guoqing each hold 48,000 H shares, representing approximately 0.01% of the total issued H share capital[56]. - Beijing Urban Construction Group holds 571,031,118 shares, accounting for 59.44% of the total issued domestic share capital[63]. - The company's public float is currently at 23.69%, which does not meet the minimum public float requirement of 25% as per Hong Kong listing rules[71]. - The major shareholders include Amundi Ireland Ltd with 81,494,000 H shares (6.04% of total issued shares) and Beijing Infrastructure Investment Co., Ltd. with 68,222,000 H shares (5.06% of total issued shares)[65]. Corporate Governance - The company has established a robust corporate governance framework, adhering to applicable regulatory laws and guidelines[68]. - The board of directors has undergone changes, with the appointment of Shi Huaxin as a non-executive director[58]. - The board and supervisory board members have confirmed compliance with the securities trading code during the reporting period[61]. - The company has not authorized any directors or senior management to purchase shares or debt securities during the reporting period[57]. Market and Strategic Focus - The company is actively expanding into new railway markets, including medium and low-capacity rail transit and intercity railways, contributing to steady revenue growth[10]. - The company plans to enhance market expansion by focusing on new railway markets and integrating resources for urban construction projects[39]. - The company is focusing on innovation by developing core technologies in new transportation, green construction, and digital engineering[42]. - The company is adapting to new external conditions and market requirements through technological and business model innovations[53].

Financial Performance - For the year ended December 31, 2020, the company achieved revenue of RMB 9.985 billion, an increase of RMB 1.571 billion or 18.67% compared to the previous year[11]. - Net profit for the same period was RMB 808 million, reflecting a steady improvement in key operational indicators[15]. - The engineering contracting business contributed RMB 6.318 billion, accounting for 63.28% of total revenue, while the design, surveying, and consulting business generated RMB 3.667 billion, representing 36.72%[12]. - The gross profit for 2020 was RMB 1.897 billion, compared to RMB 1.679 billion in 2019, indicating a positive trend in profitability[13]. - The company’s net profit for the year was RMB 807.55 million, compared to RMB 665.58 million in 2019, reflecting a growth of 21.27%[23]. - The group reported a net profit of RMB 808 million for the year, an increase of RMB 142 million or 21.32% compared to RMB 666 million in the previous year[42]. - The group achieved a gross profit of RMB 1.897 billion, up RMB 218 million or 12.98% from RMB 1.679 billion in the previous year, with a slight decrease in gross margin from 19.95% to 19.00%[34]. Assets and Liabilities - Total assets as of December 31, 2020, were RMB 21.060 billion, up from RMB 20.459 billion in 2019[13]. - The company's total liabilities decreased slightly to RMB 15.311 billion from RMB 15.362 billion in the previous year[13]. - As of December 31, 2020, the company's net current assets amounted to RMB 1,865 million, with cash and cash equivalents at RMB 3,534 million, indicating a strong liquidity position[46]. - The total borrowings of the company as of December 31, 2020, were RMB 5,300,455 thousand, an increase from RMB 4,922,131 thousand as of December 31, 2019, reflecting a year-over-year growth of approximately 7.7%[47]. - The company's debt-to-equity ratio was 92.21% as of December 31, 2020, indicating a high level of leverage[46]. Strategic Initiatives - The company aims to leverage its advantages in the entire rail transit industry chain to enhance its comprehensive strength moving forward[15]. - The strategic focus for 2021 includes actively seizing opportunities and promoting innovation in line with the "14th Five-Year Plan"[15]. - The company plans to continue leveraging its full licensing advantages to expand new construction agency businesses[24]. - The company aims to enhance its design leadership and collaborative industrial development in the upcoming "14th Five-Year Plan" period[18]. - The company plans to enhance its design consulting services and expand its engineering contracting capabilities as part of its strategic initiatives for 2021[50]. - The company aims to strengthen its core metro business and expand its market share in the tram sector as part of its growth strategy[52]. Market Expansion and Contracts - The company secured contracts worth RMB 10.327 billion in the domestic urban rail transit sector by December 31, 2020, with RMB 4.967 billion from design, surveying, and consulting services, and RMB 5.360 billion from engineering contracting[56]. - The company expanded its market presence by winning contracts for seven urban rail transit design projects in cities like Chongqing and Xuzhou[26]. - The company has secured numerous EPC projects in cities such as Beijing, Anqing, and Sanya, with a record contract amount for civil construction projects in Jiangxi Province[62]. - The company is focusing on high-quality development in the PPP sector, with new opportunities arising from the recovery of the economy post-COVID-19[61]. Innovation and Technology - The company initiated 65 innovation projects with a research investment exceeding RMB 100 million, receiving multiple national and provincial awards[24]. - The company is focusing on innovation and the development of new products, including a new light rail train control system, to capture emerging market opportunities[53]. - The company has developed innovative technologies, including a 3D laser scanning technology that has gained wide market recognition[94]. - The company is committed to enhancing its technological capabilities and developing new operational capacities in PPP projects[102]. Governance and Management - The company has a diverse management team with extensive experience in engineering, finance, and project management across various sectors[82][83][84][85][86]. - The management team includes professionals with advanced degrees and qualifications in engineering, finance, and law, enhancing the company's strategic capabilities[82][83][84][85][86]. - The company has established a governance framework that meets the principles and code provisions of the Corporate Governance Code[167]. - The board of directors consists of 15 members, including 8 non-executive directors and 4 independent non-executive directors[171]. - The company provides ongoing training for directors to ensure they are updated on business operations and regulatory changes[175]. Risk Management - The company intends to implement a comprehensive risk management system to ensure project safety and efficiency[52]. - The company is enhancing its risk management strategies to mitigate potential foreign exchange risks associated with international operations[100]. - The internal control framework is based on the company's internal control manual, focusing on five key elements: internal environment, risk assessment, control activities, information and communication, and internal supervision[194]. - The internal audit department supervises the establishment and implementation of the internal control system, ensuring compliance and effectiveness[195]. Related Party Transactions - The company emphasizes strict compliance with Hong Kong listing rules regarding related party transactions[138]. - The company confirmed compliance with the disclosure requirements of the Hong Kong Listing Rules regarding related party transactions[153]. - Independent non-executive directors reviewed ongoing related party transactions and confirmed they were conducted under normal business terms[154]. - The company has a continuous related party transaction with the City Construction Group, which holds a 42.34% stake in the company[144]. Employee Development - In 2020, the company established a training system aligned with its development strategy, offering over 200 online courses to enhance employee skills during the pandemic[58]. - The company has established a comprehensive training program for new employees, integrating onboarding training, university courses, expert mentoring, and guidance[58]. - The company has implemented a "first internal, then external" recruitment mechanism to effectively address talent needs[57]. Shareholder Relations - The company plans to distribute a final dividend of RMB 0.1568 per share, subject to shareholder approval on May 28, 2021[107]. - The company maintains a profit distribution policy prioritizing cash dividends, ensuring continuity and stability in returns to shareholders[109]. - The company has a clear policy for dividend payments to domestic and foreign shareholders, with payments made in RMB or foreign currency as applicable[109].