致：香港交易及結算所有限公司 公司名稱: 河北建設集團股份有限公司 呈交日期: 2025年10月2日 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01727 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 461,383,500 | RMB | | | 1 RMB | | 461,383,500 | | 增加 / 減少 (-) | | | 0 | | | | RMB | | 0 | | 本月底結存 | | | 461,383,500 | RMB | | | 1 RMB | | 461,383,500 | | 2. 股份分類 | 普 ...

Core Viewpoint - Hebei Construction, known as the "first stock of Xiong'an," is facing a disappointing IPO with a subscription rate of only 0.99 times, raising concerns about its market reception in Hong Kong [1][2][8]. Company Overview - Hebei Construction primarily engages in construction contracting, accounting for over 95% of its revenue, and has been recognized as a significant player in the industry, ranking 366th in the "China Top 500 Enterprises" and 20th in the "Top 80 Chinese Contractors" [3][4]. - The company has established partnerships with the Xiong'an government to develop three companies aimed at the Xiong'an New Area, indicating its strategic involvement in major regional developments [4]. Financial Performance - In the first half of 2017, Hebei Construction reported revenues of 20.218 billion RMB and a net profit of 500 million RMB, suggesting a relatively strong financial position [5]. - The company's IPO will result in a total share capital of 1.733 billion shares, with an issue price of 4.46 HKD, leading to a market capitalization of 7.73 billion HKD [7]. Market Sentiment - The Hong Kong market is characterized by a cautious approach to stock pricing, with investors often requiring tangible evidence of performance before committing [6][8]. - Despite Hebei Construction's low price-to-earnings (PE) ratio of 6.45 and price-to-book (PB) ratio of 2.65, these valuations may not attract investors in a market where lower valuations are available [7][8]. Financial Structure and Risks - The company has a high debt ratio of approximately 95%, which is likely to deter mainstream investors in the Hong Kong market [12]. - The IPO proceeds will be allocated primarily to unfinished projects and public-private partnership (PPP) projects, which are often seen as financial black holes due to their long construction periods and delayed revenue generation [14][15]. - The cash flow situation appears challenging, with significant outflows reported in the first half of 2017, indicating potential difficulties in maintaining liquidity [16].

Core Points - Hebei Construction Group Co., Ltd. has been fined a total of 1,968,178.21 yuan by the Civil Aviation Administration of China, East China Region [1] - The company was also fined 4,114 yuan by the Southwest Region Administration on September 11, 2025 [2] - Additionally, on September 8, 2025, the company faced a fine of 185,855.73 yuan for not adhering to engineering design specifications during construction [2][3] Summary by Category Fines and Penalties - The total fine imposed on Hebei Construction Group amounts to 1,968,178.21 yuan [1] - A separate fine of 4,114 yuan was issued on September 11, 2025, for unspecified reasons [2] - The company was penalized 185,855.73 yuan for failing to follow engineering design drawings on a project in Zhuji City [2][3] Company Background - Hebei Construction Group was established from the merger of two central state-owned enterprises in 1964 and was restructured into a joint-stock company in 2017, subsequently listed on the Hong Kong Stock Exchange [6]

Market Overview - A-shares experienced slight fluctuations today, with technology growth stocks being relatively active, as the ChiNext Index and the Sci-Tech Innovation 50 both rose over 1%, reaching a three-and-a-half-year high [1] - The Shenzhen Component Index and CSI 300 also hit new highs, while the Shanghai Composite Index fluctuated around yesterday's closing level, with over 3,900 stocks declining and a total turnover of 2.39 trillion yuan [1] Sector Performance - Sectors such as new energy power, gaming, non-ferrous metals, and communication equipment saw significant gains, while precious metals, environmental protection equipment, professional chains, and ground military equipment experienced notable declines [1] Fund Flow Analysis - The computer industry attracted over 14.2 billion yuan in net inflow from major funds, while electric power equipment and communication sectors saw net inflows of over 9.4 billion yuan and 7.8 billion yuan, respectively [3] - Conversely, transportation faced a net outflow of over 2 billion yuan, with defense, real estate, and food and beverage sectors also experiencing net outflows exceeding 1 billion yuan [3] Market Outlook - Dongwu Securities noted that historical data suggests a style switch in the fourth quarter, with lower probabilities for previously leading sectors to continue their upward trend [3] - Investors are likely to take profits from previously strong sectors and shift towards defensive sectors to stabilize annual returns, with cyclical styles entering a trading window [3] - Pacific Securities indicated that market volatility is increasing as the holiday approaches, with a decline in the market's profit-making effect and overall risk appetite [3] New Energy Sector Insights - The new energy power sector showed collective strength, with the controllable nuclear fusion sector index reaching a historical high, and other power generation equipment indices surging over 4%, marking a ten-year high [3] - The wind power equipment sector also reached a two-and-a-half-year high, while photovoltaic equipment showed strong upward momentum [3] Industry Events - The "2025 New Power System Development Forum" was held in Hebei, focusing on the theme of "Green Development, Co-creating the Future," discussing innovative developments in new power systems [5] - The National Energy Administration emphasized the urgency of constructing a new power system, highlighting key actions outlined in the "Action Plan for Accelerating the Construction of a New Power System (2024-2027)" [5] Stock Performance - Companies such as Hanhua Huatong and Shanghai Electric saw significant stock price increases, with Shanghai Electric's trading volume exceeding 12 billion yuan [6] - However, some previously popular stocks experienced sharp declines, with Hangzhou Electric and others facing consecutive trading halts [7]

Company Information Provides essential details about Hebei Construction Group Corporation Limited, including its registration, contact information, and legal/audit advisors [Basic Information](index=3&type=section&id=Basic%20Information) Hebei Construction Group Corporation Limited is a non-state-owned construction group in China, with a board of directors and a supervisory board to be abolished in June 2025 - The company's legal name is Hebei Construction Group Corporation Limited, with its English name being Hebei Construction Group Corporation Limited[3](index=3&type=chunk) - The Board of Directors comprises executive, non-executive, and independent non-executive directors, with Mr. Li Baozhong serving as Chairman and Mr. Shang Jinfeng as President[3](index=3&type=chunk) - Following shareholder approval, the company will no longer have a Supervisory Board from **June 30, 2025**, and all supervisors will step down from that date[3](index=3&type=chunk) [Registration and Contact Information](index=5&type=section&id=Registration%20and%20Contact%20Information) The company's registered office and main business location in China are in Baoding, Hebei, with its Hong Kong office in Wan Chai, and provides investor relations contacts - The company's registered office and principal place of business in China are located at No. 125 Lugang Road, Jingxiu District, Baoding, Hebei Province, China[5](index=5&type=chunk) - The principal place of business in Hong Kong is located on the 40th Floor, Dah Sing Financial Centre, 248 Queen's Road East, Wan Chai, Hong Kong[5](index=5&type=chunk) - The company's stock short name and stock code are Hebei Construction (01727), and its H-share registrar is Tricor Investor Services Limited[5](index=5&type=chunk) [Legal and Audit Advisors](index=5&type=section&id=Legal%20and%20Audit%20Advisors) The company has appointed Clifford Chance as its Hong Kong legal advisor, Jia Yuan Law Offices as its PRC legal advisor, and Ernst & Young Hua Ming LLP as its auditor - The Hong Kong legal advisor is Clifford Chance, and the PRC legal advisor is Jia Yuan Law Offices[5](index=5&type=chunk) - The company's auditor is Ernst & Young Hua Ming LLP[5](index=5&type=chunk) Financial Summary Provides a concise overview of the company's key financial performance indicators for the reporting period [Key Financial Indicators](index=5&type=section&id=Key%20Financial%20Indicators) For the six months ended June 30, 2025, the company's revenue, net profit, and earnings per share all decreased year-on-year, reflecting operational challenges 2025 H1 Key Financial Indicators (Year-on-Year) | Indicator | June 30, 2025 | 2024 Same Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 7.908 billion | - | Down 28% | | Net Profit | RMB 95 million | - | Down 21% | | Earnings Per Share | RMB 0.06 | - | Down 14% | Business Overview Presents an overview of the company's business operations, including new contracts, and performance across different construction segments [Company Profile and New Contracts](index=6&type=section&id=Company%20Profile%20and%20New%20Contracts) The company is a leading non-state-owned construction group in China, with a significant decrease in new contracts in H1 2025, and a shift towards infrastructure construction - The company is a leading non-state-owned construction group in China, primarily engaged in building construction, infrastructure construction, and specialized and other construction engineering contracting businesses[8](index=8&type=chunk)[10](index=10&type=chunk) 2025 H1 Newly Signed Contracts (Year-on-Year) | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Newly Signed Contracts | 8.039 | 13.960 | Down 42.41% | | Beijing-Tianjin-Hebei Region Share | 79.71% | 88.91% | Down 9.2 percentage points | | Other Regions Share | 20.29% | 11.09% | Up 9.2 percentage points | | Infrastructure Construction Share | 39.05% | 18.77% | Up 20.28 percentage points | | Building Construction Share | 40.38% | 55.98% | Down 15.6 percentage points | | Specialized and Other Construction Share | 20.57% | 25.25% | Down 4.68 percentage points | [Building Construction Business](index=7&type=section&id=Building%20Construction%20Business) The company provides general contracting services for residential, public, industrial, and commercial building projects, experiencing a significant decline in new contracts in H1 2025 - The company undertakes most building construction projects as a general contractor, responsible for major areas such as construction, foundation engineering, curtain walls, decoration, and fire protection engineering[11](index=11&type=chunk) 2025 H1 Building Construction Business Newly Signed Contracts (Year-on-Year) | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Newly Signed Contracts | 3.246 | 7.815 | Down 58.46% | | Residential Building Projects Share | 35.85% | 34.54% | Up 1.31 percentage points | | Public Building Projects Share | 51.27% | 46.87% | Up 4.4 percentage points | | Industrial Building Projects Share | 12.88% | 18.59% | Down 5.71 percentage points | | Commercial Building Projects Share | 0.00% | 0.00% | No change | [Infrastructure Construction Business](index=8&type=section&id=Infrastructure%20Construction%20Business) The company provides construction services for municipal and transportation infrastructure projects, with new contracts growing in H1 2025, particularly in municipal infrastructure - The company provides construction engineering contracting services for municipal and transportation infrastructure projects, including water supply, gas, urban pipelines, roads, bridges, and airport runway facilities[15](index=15&type=chunk) - Infrastructure construction clients are primarily local governments[15](index=15&type=chunk) 2025 H1 Infrastructure Construction Business Newly Signed Contracts (Year-on-Year) | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Newly Signed Contracts | 3.139 | 2.620 | Up 19.81% | | Municipal Infrastructure Construction Share | 77.22% | 62.43% | Up 14.79 percentage points | | Transportation Infrastructure Construction Share | 22.78% | 37.57% | Down 14.79 percentage points | [Specialized and Other Construction Engineering Contracting Business](index=8&type=section&id=Specialized%20and%20Other%20Construction%20Engineering%20Contracting%20Business) The company undertakes projects in specialized fields like M&E installation, steel structures, and decoration, with new contracts significantly decreasing in H1 2025, but new energy and water conservancy projects increasing - The company undertakes construction engineering contracting projects leveraging its qualifications and experience in specialized fields such as M&E installation, steel structure construction, and decoration and renovation[17](index=17&type=chunk) 2025 H1 Specialized and Other Construction Engineering Contracting Business Newly Signed Contracts (Year-on-Year) | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Newly Signed Contracts | 1.654 | 3.525 | Down 53.09% | | M&E Installation Share | 6.17% | 25.20% | Down 19.03 percentage points | | Steel Structure Share | 0.66% | 0.17% | Up 0.49 percentage points | | Decoration and Renovation Share | 12.52% | 5.25% | Up 7.27 percentage points | | New Energy Share | 55.99% | ╱ | New | | Water Conservancy and Hydropower Share | 12.33% | ╱ | New | | Other Construction Business Share | 12.33% | 69.38% | Down 57.05 percentage points | [Representative Engineering Projects](index=9&type=section&id=Representative%20Engineering%20Projects) The company highlights representative new, ongoing, and completed projects in H1 2025 across various business categories and regions, including transportation, municipal, residential, commercial, industrial, and new energy [Representative Newly Signed Contracts](index=9&type=section&id=Representative%20Newly%20Signed%20Contracts) Newly signed representative projects include road reconstruction, flood control, integrated health and wellness park, resettlement housing, and energy storage power station projects - Transportation infrastructure new projects include the design and construction general contracting for the reconstruction of S333 Haixing to Shunping Highway Anping Section, with a contract value of **RMB 584 million**, located in Hebei Province[20](index=20&type=chunk) - Municipal infrastructure new projects include the Baoding Flood Control and Drainage Project and the Lanshan Hot Spring Health and Wellness Rural Complex Project, with contract values of **RMB 584 million** and **RMB 500 million** respectively[20](index=20&type=chunk) - New energy new projects include the EPC general contracting for Antai (Baoding) New Energy Technology Co.'s 100MW/200MWh independent energy storage power station project (**RMB 357 million**) and Cixian's 200MW/400MWh shared energy storage power station project EPC general contracting (**RMB 570 million**), both located in Hebei Province[23](index=23&type=chunk) [Representative Ongoing Projects](index=11&type=section&id=Representative%20Ongoing%20Projects) Ongoing projects cover public buildings (e.g., Chinese Academy of Chinese Medical Sciences Guang'anmen Hospital Baoding Hospital), residential (e.g., Jinan Tianqiao Beihu Core Area), commercial (e.g., Hengbai International Plaza), industrial (e.g., Dangshan Economic Development Zone), transportation infrastructure (e.g., Yangzhou Taizhou International Airport), municipal infrastructure (e.g., Innovation Manufacturing Industrial Park), and specialized construction - Public building ongoing projects include the General Contracting Project for Guang'anmen Hospital Baoding Hospital of China Academy of Chinese Medical Sciences (**RMB 1.943 billion**) and Shunping County Hospital New Campus Construction Project (**RMB 607 million**), both located in Hebei Province[24](index=24&type=chunk) - Residential building ongoing projects include the General Contracting Project for Jinan Tianqiao District Beihu Core Area West Side Plot A South Zone (**RMB 1.097 billion**) and Hengshui Yongjin Peninsula Project Phase III and VI General Contracting Project (**RMB 745 million**)[28](index=28&type=chunk) - Transportation infrastructure ongoing projects include Yangzhou Taizhou International Airport Phase II Expansion Project Airfield Pavement Engineering Section 1 (**RMB 201 million**) and Hohhot New Airport Airfield Pavement Engineering (**RMB 488 million**)[31](index=31&type=chunk) - Municipal infrastructure ongoing projects include Innovation Manufacturing Industrial Park Infrastructure Construction Project EPC General Contracting (**RMB 1.362 billion**) and Baoding South Second Ring Road Pipeline and Supporting Municipal Infrastructure Upgrade Project EPC General Contracting (**RMB 881 million**)[33](index=33&type=chunk) [Representative Completed Projects](index=18&type=section&id=Representative%20Completed%20Projects) Completed projects include Knowledge City ZSCXN-B3-2 (Medical City), Botou Longtun New City Village Renovation Phase II, Knowledge City Fortune Plaza Phase I, and Chongqing Jiangbei International Airport T3B Terminal and Fourth Runway Airfield Pavement Project - Public building completed projects include Knowledge City ZSCXN-B3-2 (Medical City) Project (**RMB 1.26 billion**) and Xing'an League Third People's Hospital Relocation and New Construction Project (**RMB 336 million**)[36](index=36&type=chunk) - Residential building completed projects include Botou Longtun New City Village Renovation Phase II Project (**RMB 954 million**) and Changlingju Residential Project Phase II General Contracting (**RMB 423 million**)[36](index=36&type=chunk) - Transportation infrastructure completed projects include Chongqing Jiangbei International Airport T3B Terminal and Fourth Runway Airfield Pavement Project Section 003 (**RMB 616 million**)[36](index=36&type=chunk) Scientific Research Achievements and Awards Highlights the company's advancements in technology, intellectual property, and recognition through various awards and demonstration projects [Technological Progress and Intellectual Property](index=19&type=section&id=Technological%20Progress%20and%20Intellectual%20Property) In H1 2025, the company achieved significant results in R&D projects, technology platform construction, and intellectual property, receiving multiple awards and new patents - The company was approved for **19 provincial construction industry scientific and technological progress awards**, **12 new technology application demonstration projects**, and **2 green construction technology demonstration projects**[37](index=37&type=chunk) - **9 scientific and technological achievements** were evaluated as leading domestically, and **4 scientific and technological achievements** passed provincial construction association acceptance, of which **3 achievements** were evaluated as leading domestically[37](index=37&type=chunk) - R&D expenses of **RMB 347 million** were aggregated for 300 enterprise-level scientific research projects in 2024[37](index=37&type=chunk) - As of the end of June 2025, the company had **35 new patents granted** (including 8 invention patents) and **21 new patent applications**[37](index=37&type=chunk) Future Outlook Outlines the company's strategic priorities for the second half of the year, focusing on platform building, organizational vitality, project quality, and safety [Strategic Focus](index=20&type=section&id=Strategic%20Focus) In the second half of the year, the company will focus on building high-quality platforms, activating organizational vitality, improving project quality, and ensuring production safety for sustainable development - In the second half of the year, the company will continuously build high-quality enterprise platforms, unleashing the value of resources such as brand reputation, qualifications, financial credit, and talent reserves[39](index=39&type=chunk) - The company will continue to activate the vitality of organizations at all levels, encouraging innovation and entrepreneurship along the industry chain to seek new economic growth points[39](index=39&type=chunk) - The company will continuously improve the quality of engineering projects, deeply carry out special rectification for common quality issues, promote quality management standardization, and strictly control special construction plans for hazardous projects[39](index=39&type=chunk) - The company will always maintain vigilance on production safety, strengthen safety education and publicity, and strictly control processes through various means to ensure stable safety performance throughout the year[40](index=40&type=chunk) Management Discussion and Analysis Provides management's perspective on the company's financial performance, liquidity, capital structure, and other significant financial information [Financial Review](index=21&type=section&id=Financial%20Review) In H1 2025, the company's operating revenue and net profit both decreased, primarily due to reduced construction contracting revenue, a sluggish real estate market, and the completion of some large projects [Operating Revenue, Operating Costs, and Gross Profit](index=21&type=section&id=Operating%20Revenue%2C%20Operating%20Costs%2C%20and%20Gross%20Profit) In H1 2025, total revenue decreased by approximately RMB 3.107 billion to RMB 7.908 billion, mainly due to a RMB 3.174 billion decrease in construction contracting revenue - Revenue for the six months ended June 30, 2025, decreased by approximately **RMB 3.107 billion** to **RMB 7.908 billion** compared to the same period last year[41](index=41&type=chunk) - Construction engineering contracting segment revenue decreased by **RMB 3.174 billion**, mainly due to the completion of some large projects and a decrease in contract value and number of newly undertaken projects[41](index=41&type=chunk)[42](index=42&type=chunk) Construction Engineering Contracting Segment Operating Performance (2025 H1 vs 2024 H1) | Segment | 2025 H1 Revenue (RMB billion) | 2025 H1 Gross Margin (%) | 2024 H1 Revenue (RMB billion) | 2024 H1 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Building Construction Business | 4.744 | 5.1 | 6.984 | 5.1 | | Infrastructure Construction Business | 2.218 | 7.8 | 3.099 | 7.1 | | Specialized and Other Construction Business | 0.672 | 5.5 | 0.725 | 5.4 | | **Total** | **7.634** | **5.9** | **10.808** | **5.7** | [Expenses and Impairment](index=22&type=section&id=Expenses%20and%20Impairment) In H1 2025, management and R&D expenses decreased, while credit impairment losses increased due to provisions for high-risk clients, and asset impairment reversals increased due to lower contract asset values - Management expenses were **RMB 122 million**, a decrease of **RMB 89.77 million** from the same period in 2024, mainly due to reduced staff salaries, benefits, and social insurance expenses[44](index=44&type=chunk) - R&D expenses were **RMB 27.97 million**, a decrease of **RMB 5.25 million** from the same period in 2024, mainly due to fewer new projects initiated[45](index=45&type=chunk) - Credit impairment losses were **RMB 92 million**, an increase of **RMB 15 million** from the same period in 2024, primarily due to individual bad debt provisions for clients with significant default risk[46](index=46&type=chunk) - Asset impairment losses reversed **RMB 68 million**, compared to a reversal of **RMB 37 million** in the same period in 2024, mainly due to a decrease in the original value of contract assets resulting from lower revenue in the current period, leading to lower new bad debt provisions for contract assets[48](index=48&type=chunk) [Investment Income and Income Tax](index=23&type=section&id=Investment%20Income%20and%20Income%20Tax) In H1 2025, investment income turned from loss to profit, driven by continuous profitability of strategic associate and joint ventures, while income tax expenses decreased due to lower pre-tax profit, resulting in a year-on-year decrease in net profit - Investment income was **RMB 0.69 million**, compared to an investment loss of **RMB 1.9 million** in the same period in 2024, mainly due to the continuous profitability of strategically invested associates and joint ventures[49](index=49&type=chunk) - Income tax expense was **RMB 28 million**, a decrease of **RMB 7 million** from the previous year, mainly due to lower pre-tax profit in the current period[50](index=50&type=chunk) - Net profit for H1 2025 was **RMB 95 million**, a decrease of approximately **RMB 26 million** from the previous year[51](index=51&type=chunk) [Liquidity, Financial Resources, and Capital Structure](index=23&type=section&id=Liquidity%2C%20Financial%20Resources%2C%20and%20Capital%20Structure) As of June 30, 2025, the company's cash and cash equivalents decreased, with a decline in monetary funds and accounts receivable financing, while accounts payable decreased and bills payable increased, reflecting adjustments in fund management and payment structure - As of June 30, 2025, cash and cash equivalents were approximately **RMB 3.896 billion**, a decrease from approximately **RMB 5.000 billion** as of December 31, 2024[52](index=52&type=chunk) - Monetary funds as of June 30, 2025, were **RMB 4.315 billion**, a decrease of **RMB 1.435 billion** from the end of 2024, mainly due to net cash outflow from operating activities[53](index=53&type=chunk) - Accounts receivable financing as of June 30, 2025, was **RMB 29 million**, a decrease of **RMB 77 million** from the end of 2024, mainly because the Group preferred bank deposit settlements over bank acceptance bills issued by real estate companies[56](index=56&type=chunk) - Accounts payable balance was **RMB 29.464 billion**, a decrease of **RMB 2.883 billion** (9%) from the end of 2024, mainly due to reduced procurement volume resulting from lower engineering volume in the current period[63](index=63&type=chunk) - Bills payable balance increased by **RMB 432 million** from the end of the previous year, mainly due to the Group enriching payment methods, adjusting payment structure, and increasing the proportion of bill payments[63](index=63&type=chunk) [Financial Ratios](index=26&type=section&id=Financial%20Ratios) As of June 30, 2025, the company's current ratio and quick ratio remained stable, the debt-to-capital ratio decreased, while return on assets and return on equity both declined Financial Ratios (June 30, 2025 vs December 31, 2024) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio (times) | 1.10 | 1.10 | | Quick Ratio (times) | 1.10 | 1.10 | | Debt-to-Capital Ratio | 91.5% | 94.8% | | Return on Assets (non-annualized) | 0.2% | 0.3% | | Return on Equity (non-annualized) | 1.5% | 2.5% | [Other Financial Information](index=26&type=section&id=Other%20Financial%20Information) During the reporting period, the company had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures, nor any major investments. Contingent liabilities primarily arose from pending litigation, and RMB exchange rate fluctuations had minimal impact - During the reporting period, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures, nor did it hold any major investments[66](index=66&type=chunk)[67](index=67&type=chunk) - As of June 30, 2025, contingent liabilities arising from pending litigation or arbitration amounted to **RMB 35 million**[68](index=68&type=chunk) - The Group's vast majority of business and bank loans are transacted in RMB, thus posing no significant foreign exchange fluctuation risk, and currently has no hedging policy[70](index=70&type=chunk) - As of June 30, 2025, the Group had **6,403 full-time employees**, a decrease from 6,940 as of December 31, 2024[71](index=71&type=chunk) Other Matters Covers various corporate governance and operational aspects, including issued share capital, corporate governance practices, securities dealings by directors, amendments to articles of association, continuing connected transactions, share repurchases, dividend distribution, and post-balance sheet events [Issued Share Capital](index=28&type=section&id=Issued%20Share%20Capital) As of June 30, 2025, the company's total share capital was RMB 1,761,383,500, with no changes during the reporting period - As of June 30, 2025, the total share capital of the Company was **RMB 1,761,383,500**, divided into 1,761,383,500 shares with a par value of RMB 1.00 per share[75](index=75&type=chunk) - There were no changes in the Company's share capital during the reporting period[75](index=75&type=chunk) [Corporate Governance Practices](index=28&type=section&id=Corporate%20Governance%20Practices) The company is committed to maintaining high corporate governance standards, has established an effective corporate oversight structure, and complied with all code provisions of the Corporate Governance Code during the reporting period - The Company is committed to achieving and maintaining a high level of corporate governance, having established an effective corporate oversight structure and continuously striving to improve its internal controls and corporate governance mechanisms[76](index=76&type=chunk) - During the reporting period, the Company complied with all code provisions of the Corporate Governance Code and adopted most of its recommended best practices[76](index=76&type=chunk) [Securities Transactions by Directors and Supervisors](index=28&type=section&id=Securities%20Transactions%20by%20Directors%20and%20Supervisors) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as the code of conduct for securities dealings by directors and supervisors, who confirmed compliance during the reporting period - The Company has adopted Appendix C3 of the Listing Rules, "Model Code for Securities Transactions by Directors of Listed Issuers," as the code of conduct for securities transactions by directors and supervisors of the Company[77](index=77&type=chunk) - All directors and supervisors confirmed their compliance with the required standards set out in the Model Code during the reporting period[77](index=77&type=chunk) [Amendments to Articles of Association](index=28&type=section&id=Amendments%20to%20Articles%20of%20Association) The Board of Directors reviewed and approved the proposal to abolish the Supervisory Board and amend the Articles of Association, which became effective upon shareholder approval on June 30, 2025 - On May 26, 2025, the Board of Directors reviewed and approved the proposal to abolish the Supervisory Board and amend the Articles of Association[78](index=78&type=chunk) - The aforementioned proposal was approved by a special resolution at the Shareholders' Meeting held on **June 30, 2025**, and the revised Articles of Association became effective from that date[78](index=78&type=chunk) [Continuing Connected Transactions](index=29&type=section&id=Continuing%20Connected%20Transactions) The company renewed several continuing connected transaction framework agreements, including labor subcontracting with Baoding Tianli and property leasing, commodity procurement, and property services with Zhongming Real Estate, setting annual caps for 2026-2027 - The Company entered into a new labor subcontracting framework agreement with Baoding Tianli, with annual caps of **RMB 2.2 billion** for both 2026 and 2027[80](index=80&type=chunk) - The Company entered into a new property leasing framework agreement with Zhongming Real Estate, with annual caps for rent and other fees paid by the Group to Zhongming Real Estate and its associates set at **RMB 5.6 million**[81](index=81&type=chunk) - The Company entered into a new commodity procurement framework agreement with Zhongming Real Estate, with annual caps for total payments for goods by the Group to Zhongming Real Estate and its associates set at **RMB 10 million**[83](index=83&type=chunk) [Share Repurchases, Sales, or Redemptions](index=30&type=section&id=Share%20Repurchases%2C%20Sales%2C%20or%20Redemptions) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, nor did they hold any treasury shares - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[85](index=85&type=chunk) - As of the end of the reporting period, neither the Company nor any of its subsidiaries held any treasury shares[85](index=85&type=chunk) [Dividend Distribution](index=30&type=section&id=Dividend%20Distribution) The Board of Directors does not recommend the payment of a final dividend for 2024 or an interim dividend for 2025, to safeguard the company's continuous stable operations and the long-term interests of all shareholders - According to the "2024 Profit Distribution Plan" approved by shareholders at the 2024 Annual General Meeting held on **June 30, 2025**, the Company will not distribute a final dividend for the year ended December 31, 2024[86](index=86&type=chunk) - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[87](index=87&type=chunk) [Significant Post-Balance Sheet Events](index=30&type=section&id=Significant%20Post-Balance%20Sheet%20Events) From June 30, 2025, to the latest practicable date, no significant post-balance sheet events occurred for the Group - From June 30, 2025, to the latest practicable date, no significant post-balance sheet events occurred for the Group, other than those disclosed in this interim report[88](index=88&type=chunk) [Audit Committee Review](index=30&type=section&id=Audit%20Committee%20Review) The company's Audit Committee has reviewed and confirmed the Group's interim results announcement, interim report, and unaudited interim financial statements for the six months ended June 30, 2025 - The Company's Audit Committee has reviewed and confirmed the Group's interim results announcement, 2025 interim report, and unaudited interim financial statements prepared in accordance with China Accounting Standards for Business Enterprises for the six months ended June 30, 2025[89](index=89&type=chunk) Share Capital Changes and Shareholder Information Details the company's share capital structure, historical changes, and shareholdings of directors, senior management, and major shareholders [Share Capital and Changes in Share Capital](index=31&type=section&id=Share%20Capital%20and%20Changes%20in%20Share%20Capital) The company's H-shares were listed on the HKEX main board on December 15, 2017, with an increase in H-shares on January 5, 2018, due to partial exercise of the over-allotment option - The Company's H-shares were listed on the main board of the Stock Exchange on **December 15, 2017**[90](index=90&type=chunk) - On **January 5, 2018**, the over-allotment option was partially exercised, allotting **28,049,500 H-shares**, increasing the share capital to **1,761,383,500 shares**[90](index=90&type=chunk) - As of June 30, 2025, the Company's total issued share capital was **RMB 1,761,383,500**, comprising 1,300,000,000 domestic shares and 461,383,500 H-shares[90](index=90&type=chunk) [Shareholdings of Directors and Chief Executive](index=31&type=section&id=Shareholdings%20of%20Directors%20and%20Chief%20Executive) As of June 30, 2025, Mr. Li Baoyuan indirectly held 1,300,000,000 domestic shares, representing 73.80% of the total issued share capital, through controlled corporations Interests and Short Positions of Directors and Chief Executive in Company Shares (June 30, 2025) | Name of Director and Chief Executive | Capacity | Number of Shares Share Class | Nature of Interest | Approximate Percentage of Total Issued Share Capital of the Company | | :--- | :--- | :--- | :--- | :--- | | Mr. Li Baoyuan | Interest in controlled corporation | 1,300,000,000 Domestic Shares | Long position | 73.80% | Interests and Short Positions of Directors and Chief Executive in Shares of Associated Corporations (June 30, 2025) | Name of Director and Chief Executive | Name of Associated Corporation | Capacity | Number of Ordinary Shares Interested | Nature of Interest | Approximate Percentage of Issued Share Capital of Associated Corporation | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Li Baoyuan | Qianbao Investment | Beneficial owner | 45,000,000 | Long position | 90.00% | | Mr. Li Baoyuan | Zhongru Investment | Interest in controlled corporation | 289,500,000 | Long position | 100.00% | | Mr. Li Baozhong | Qianbao Investment | Beneficial owner | 5,000,000 | Long position | 10.00% | | Mr. Shang Jinfeng | Zhongru Investment | Beneficial owner | 5,000,000 | Long position | 1.73% | | Mr. Zhao Wensheng | Zhongru Investment | Beneficial owner | 3,000,000 | Long position | 1.04% | | Mr. Tian Wei | Zhongru Investment | Beneficial owner | 3,000,000 | Long position | 1.04% | | Mr. Zhang Wenzhong | Zhongru Investment | Beneficial owner | 3,000,000 | Long position | 1.04% | [Directors' Rights to Acquire Shares or Debentures](index=34&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares%20or%20Debentures) As of June 30, 2025, no rights to acquire shares or debentures of the company were granted to any director, their spouse, or children under 18, nor were any such rights exercised - As of June 30, 2025, no rights to acquire benefits through the purchase of shares or debentures of the Company were granted to any director or their respective spouses or children under the age of 18, nor were any such rights exercised by them[98](index=98&type=chunk) [Major Shareholder Holdings](index=34&type=section&id=Major%20Shareholder%20Holdings) As of June 30, 2025, Zhongru Investment held 1,202,500,000 domestic shares, representing 68.27% of the total issued share capital, while Qianbao Investment held a combined 73.81% through controlled corporations and beneficial ownership Interests and Short Positions of Major Shareholders in Company Shares and Related Shares (June 30, 2025) | Shareholder Name | Capacity | Number of Shares Interested | Share Class | Nature of Interest | Approximate Percentage of Holding in Relevant Share Class | Approximate Percentage of Total Issued Share Capital of the Company | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhongru Investment | Beneficial owner | 1,202,500,000 | Domestic Shares | Long position | 92.50% | 68.27% | | Qianbao Investment | Interest in controlled corporation | 1,202,500,000 | Domestic Shares | Long position | 92.50% | 68.27% | | Qianbao Investment | Beneficial owner | 97,500,000 | Domestic Shares | Long position | 7.50% | 5.54% | Directors, Supervisors, and Senior Management Information Provides details on the composition of the Board of Directors and senior management, as well as changes in their appointments [Composition of Directors and Senior Management](index=35&type=section&id=Composition%20of%20Directors%20and%20Senior%20Management) As of the latest practicable date, the company's Board of Directors comprises 9 directors, including 5 executive, 1 non-executive, and 3 independent non-executive directors, with 7 senior management personnel - The Company's Board of Directors consists of **9 directors**, including 5 executive directors (Mr. Li Baozhong, Mr. Shang Jinfeng, Mr. Zhao Wensheng, Mr. Zhang Wenzhong, and Mr. Tian Wei), 1 non-executive director (Mr. Li Baoyuan), and 3 independent non-executive directors (Ms. Shen Lifeng, Ms. Chen Xin, and Mr. Chen Yisheng)[100](index=100&type=chunk) - The Company has **7 senior management personnel**, including Mr. Shang Jinfeng (President), Mr. Zhao Wensheng (Vice President, Chief Accountant, and Financial Controller), etc[100](index=100&type=chunk) [Changes in Appointments of Directors, Supervisors, and Senior Management](index=35&type=section&id=Changes%20in%20Appointments%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) Mr. Tian Wei was elected as an employee representative director and continues as an executive director. The Supervisory Board was abolished on June 30, 2025, with all supervisors stepping down - Mr. Tian Wei was elected as an employee representative director of the Company's third Board of Directors and will continue to serve as an executive director[101](index=101&type=chunk) - Following shareholder approval to abolish the Supervisory Board, the Company will no longer have a Supervisory Board from **June 30, 2025**, and all supervisors will step down from that date[102](index=102&type=chunk) - There were no changes in the Company's senior management during the reporting period[103](index=103&type=chunk) Financial Statements Presents the unaudited interim consolidated and company-level financial statements, including balance sheets, income statements, statements of changes in equity, and cash flow statements [Interim Consolidated Balance Sheet (Unaudited)](index=36&type=section&id=Interim%20Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's total consolidated assets were RMB 58,379,226 thousand, a decrease from the end of 2024, with both current assets and liabilities decreasing, and owners' equity slightly increasing Interim Consolidated Balance Sheet Summary (June 30, 2025 vs December 31, 2024) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Assets | 58,379,226 | 61,835,035 | | Total Current Assets | 51,974,532 | 55,394,965 | | Total Non-Current Assets | 6,404,694 | 6,440,070 | | Total Liabilities | 51,906,801 | 55,445,089 | | Total Current Liabilities | 48,916,624 | 52,260,750 | | Total Non-Current Liabilities | 2,990,177 | 3,184,339 | | Total Owners' Equity | 6,472,425 | 6,389,946 | [Interim Consolidated Income Statement (Unaudited)](index=38&type=section&id=Interim%20Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the company's consolidated operating revenue was RMB 7,908,202 thousand, and net profit was RMB 95,244 thousand, both decreasing year-on-year, with earnings per share at RMB 0.06 Interim Consolidated Income Statement Summary (2025 H1 vs 2024 H1) | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Operating Revenue | 7,908,202 | 11,015,171 | | Operating Costs | 7,403,489 | 10,365,625 | | Operating Profit | 122,653 | 157,082 | | Net Profit | 95,244 | 120,879 | | Net Profit Attributable to Parent Company Owners | 104,611 | 126,889 | | Basic and Diluted Earnings Per Share (RMB/share) | 0.06 | 0.07 | [Interim Consolidated Statement of Changes in Owners' Equity (Unaudited)](index=39&type=section&id=Interim%20Consolidated%20Statement%20of%20Changes%20in%20Owners'%20Equity) For the six months ended June 30, 2025, the company's total consolidated owners' equity was RMB 6,472,425 thousand, an increase from the beginning of the period, primarily influenced by total comprehensive income Interim Consolidated Statement of Changes in Owners' Equity Summary (2025 H1) | Indicator | Beginning Balance (RMB thousand) | Change for the Period (RMB thousand) | Ending Balance (RMB thousand) | | :--- | :--- | :--- | :--- | | Total Equity Attributable to Parent Company Shareholders | 6,221,833 | 91,846 | 6,313,679 | | Minority Interests | 168,113 | (9,367) | 158,746 | | Total Owners' Equity | 6,389,946 | 82,479 | 6,472,425 | [Interim Consolidated Cash Flow Statement (Unaudited)](index=41&type=section&id=Interim%20Consolidated%20Cash%20Flow%20Statement) For the six months ended June 30, 2025, the company reported a net cash outflow from operating activities of RMB 760,670 thousand, a net cash inflow from investing activities of RMB 11,984 thousand, and a net cash outflow from financing activities of RMB 355,190 thousand, resulting in a net decrease in cash and cash equivalents Interim Consolidated Cash Flow Statement Summary (2025 H1 vs 2024 H1) | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | (760,670) | (1,729,142) | | Net Cash Flow from Investing Activities | 11,984 | 37,046 | | Net Cash Flow from Financing Activities | (355,190) | 4,274 | | Net Increase in Cash and Cash Equivalents | (1,103,768) | (1,687,803) | | Cash and Cash Equivalents at End of Period | 3,895,937 | 4,839,883 | [Company Balance Sheet (Unaudited)](index=43&type=section&id=Company%20Balance%20Sheet) As of June 30, 2025, the company's total assets were RMB 44,413,565 thousand, a decrease from the end of 2024, with both current assets and liabilities decreasing, and owners' equity slightly increasing Company Balance Sheet Summary (June 30, 2025 vs December 31, 2024) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Assets | 44,413,565 | 47,946,954 | | Total Current Assets | 39,128,331 | 42,629,245 | | Total Non-Current Assets | 5,285,234 | 5,317,709 | | Total Liabilities | 38,108,694 | 41,730,300 | | Total Current Liabilities | 37,988,829 | 41,560,040 | | Total Non-Current Liabilities | 119,865 | 170,260 | | Total Owners' Equity | 6,304,871 | 6,216,654 | [Company Income Statement (Unaudited)](index=45&type=section&id=Company%20Income%20Statement) For the six months ended June 30, 2025, the company's operating revenue was RMB 5,182,812 thousand, and net profit was RMB 101,590 thousand, both decreasing year-on-year Company Income Statement Summary (2025 H1 vs 2024 H1) | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Operating Revenue | 5,182,812 | 7,951,540 | | Operating Costs | 4,853,732 | 7,531,011 | | Operating Profit | 116,434 | 114,709 | | Net Profit | 101,590 | 106,448 | | Total Comprehensive Income | 88,217 | 116,102 | [Company Statement of Changes in Owners' Equity (Unaudited)](index=46&type=section&id=Company%20Statement%20of%20Changes%20in%20Owners'%20Equity) For the six months ended June 30, 2025, the company's total owners' equity was RMB 6,304,871 thousand, an increase from the beginning of the period, primarily influenced by total comprehensive income Company Statement of Changes in Owners' Equity Summary (2025 H1) | Indicator | Beginning Balance (RMB thousand) | Change for the Period (RMB thousand) | Ending Balance (RMB thousand) | | :--- | :--- | :--- | :--- | | Total Owners' Equity | 6,216,654 | 88,217 | 6,304,871 | [Company Cash Flow Statement (Unaudited)](index=48&type=section&id=Company%20Cash%20Flow%20Statement) For the six months ended June 30, 2025, the company reported a net cash outflow from operating activities of RMB 376,905 thousand, a net cash inflow from investing activities of RMB 14,626 thousand, and a net cash outflow from financing activities of RMB 85,824 thousand, resulting in a net decrease in cash and cash equivalents Company Cash Flow Statement Summary (2025 H1 vs 2024 H1) | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | (376,905) | (2,358,614) | | Net Cash Flow from Investing Activities | 14,626 | 17,032 | | Net Cash Flow from Financing Activities | (85,824) | (81,372) | | Net Increase in Cash and Cash Equivalents | (447,995) | (2,422,935) | | Cash and Cash Equivalents at End of Period | 2,560,280 | 3,197,317 | Notes to Financial Statements Provides detailed explanations and breakdowns for various items presented in the financial statements, including accounting policies, changes in consolidation scope, and specific account analyses [General Information](index=51&type=section&id=General%20Information) Hebei Construction Group Corporation Limited, formerly Hebei Construction Group Co., Ltd., was restructured in 1997, completed its shareholding reform in 2017, and listed its H-shares on December 15, 2017, with its ultimate parent company being Qianbao Investment Co., Ltd - Hebei Construction Group Corporation Limited, formerly Hebei Construction Group Co., Ltd., was restructured and established on **September 29, 1997**[134](index=134&type=chunk) - The Company completed the initial public offering of H-shares to overseas investors on **December 15, 2017**, and exercised the over-allotment option on **January 5, 2018**, issuing a total of **461,383,500 H-shares**[135](index=135&type=chunk) - The Group's principal operating activity is general contracting for construction projects, and its ultimate parent company is Qianbao Investment Co., Ltd., established in China[136](index=136&type=chunk) [Basis of Preparation of Financial Statements](index=52&type=section&id=Basis%20of%20Preparation%20of%20Financial%20Statements) These financial statements are prepared in accordance with "Accounting Standard for Business Enterprises No. 32 – Interim Financial Reporting" issued by the Ministry of Finance and the disclosure requirements of the Hong Kong Stock Exchange Listing Rules, presented on a going concern basis - These financial statements are prepared in accordance with "Accounting Standard for Business Enterprises No. 32 – Interim Financial Reporting" issued by the Ministry of Finance and the disclosure requirements of the Listing Rules of The Stock Exchange of Hong Kong Limited[137](index=137&type=chunk) - These financial statements are presented on a going concern basis[138](index=138&type=chunk) [Changes in Accounting Policies and Accounting Estimates](index=52&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Accounting%20Estimates) The accounting policies and estimates adopted in these financial statements are consistent with those in the 2024 annual financial statements, with no significant changes during the reporting period - The accounting policies and accounting estimates adopted in these financial statements are consistent with those in the 2024 annual financial statements[139](index=139&type=chunk) [Changes in Consolidation Scope](index=52&type=section&id=Changes%20in%20Consolidation%20Scope) During the current period, the company established 5 new subsidiaries, deregistered 2 subsidiaries, and transferred 100% equity of 1 subsidiary, with the remaining scope of consolidated financial statements consistent with the previous year - The Company established **Hebei Wangzhu Construction Engineering Co., Ltd., Hebei Construction Group (Xiong'an) Construction Development Co., Ltd., Tianjin Tianzheng Construction Engineering Co., Ltd., Jiangsu Zhengrui Construction Engineering Co., Ltd., and Hebei Xiongheng Baocheng Construction Engineering Co., Ltd.** in the current period[140](index=140&type=chunk) - The Company's subsidiaries, **Hebei Bainac产能基地有限责任公司 and Hebei Tuopu Construction Engineering Co., Ltd.**, were deregistered in the current period[140](index=140&type=chunk) - The Company transferred **100% equity of Beijing Tianjia Construction Engineering Co., Ltd.** in the current period and no longer consolidates it as a subsidiary thereafter[140](index=140&type=chunk) [Notes to Major Items in Consolidated Financial Statements](index=53&type=section&id=Notes%20to%20Major%20Items%20in%20Consolidated%20Financial%20Statements) This section provides detailed explanations for major items in the consolidated financial statements, including aging analysis of accounts receivable and long-term receivables, changes in long-term equity investments and fixed assets, aging analysis of accounts payable, composition and timing of revenue recognition, details of credit impairment losses and asset impairment losses, income tax expenses, earnings per share calculation, and assets with restricted ownership [Accounts Receivable and Long-term Receivables](index=53&type=section&id=Accounts%20Receivable%20and%20Long-term%20Receivables) The Group's accounts receivable primarily consist of engineering contracting receivables, with credit terms typically 1 to 3 months. Long-term receivables mainly relate to build-operate-transfer water supply services - The Group's accounts receivable primarily consist of engineering contracting receivables, with credit terms typically **1 to 3 months**, and are non-interest bearing[141](index=141&type=chunk) Accounts Receivable Aging Analysis (June 30, 2025 vs December 31, 2024) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 6,509,814 | 6,294,717 | | 1 to 2 years | 813,467 | 1,156,111 | | 2 to 3 years | 501,549 | 501,379 | | Over 3 years | 933,635 | 987,408 | | **Total** | **8,758,465** | **8,939,615** | | Less: Provision for bad debts on accounts receivable | 1,706,471 | 1,612,871 | | **Net Value** | **7,051,994** | **7,326,744** | - The Group's long-term receivables primarily consist of receivables from build-operate-transfer water supply services, to be repaid in installments over **1 to 25 years**[144](index=144&type=chunk) [Long-term Equity Investments](index=55&type=section&id=Long-term%20Equity%20Investments) In H1 2025, the Group increased its long-term equity investment in Baoding City Agricultural Investment Construction Engineering Co., Ltd. by RMB 221 thousand, with no disposals during the same period - For the period from January 1 to June 30, 2025, the Group increased its long-term equity investment in Baoding City Agricultural Investment Construction Engineering Co., Ltd. by **RMB 221 thousand**[147](index=147&type=chunk) - For the period from January 1 to June 30, 2025, the Group had no disposals of long-term equity investments[147](index=147&type=chunk) [Fixed Assets](index=55&type=section&id=Fixed%20Assets) In H1 2025, the Group acquired fixed assets with an original cost of RMB 1,833 thousand and disposed of fixed assets with a book value of RMB 1,589 thousand, resulting in an asset disposal loss of RMB 65 thousand - For the period from January 1 to June 30, 2025, the Group acquired fixed assets with an original cost of **RMB 1,833 thousand**[148](index=148&type=chunk) - For the period from January 1 to June 30, 2025, the Group disposed of fixed assets with a book value of **RMB 1,589 thousand**, resulting in an asset disposal loss of **RMB 65 thousand**[148](index=148&type=chunk) [Accounts Payable](index=56&type=section&id=Accounts%20Payable) Accounts payable are non-interest bearing. As of June 30, 2025, total accounts payable amounted to RMB 29,463,558 thousand, with the highest proportion being within 1 year - Accounts payable are non-interest bearing[149](index=149&type=chunk) Accounts Payable Aging Analysis (June 30, 2025 vs December 31, 2024) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 18,318,232 | 20,640,524 | | 1 to 2 years | 8,526,684 | 8,877,374 | | 2 to 3 years | 1,551,425 | 1,521,756 | | Over 3 years | 1,067,217 | 1,306,994 | | **Total** | **29,463,558** | **32,346,648** | [Operating Revenue](index=57&type=section&id=Operating%20Revenue) In H1 2025, the company's operating revenue was RMB 7,908,202 thousand, primarily from construction engineering contracting. Revenue recognition mainly occurs over a period, with most revenue from customers within China Operating Revenue Composition (2025 H1 vs 2024 H1) | Revenue Type | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Principal Business Revenue | 7,633,670 | 10,808,378 | | Other Business Revenue | 274,532 | 206,793 | | **Total** | **7,908,202** | **11,015,171** | Operating Revenue from Customer Contracts by Product Type and Region (2025 H1) | Category | Construction (RMB thousand) | Other (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | | Building Construction Projects | 4,743,764 | – | 4,743,764 | | Infrastructure Construction Projects | 2,025,200 | 192,644 | 2,217,844 | | Specialized and Other Construction Projects | 672,062 | – | 672,062 | | Sales of Goods and Other | 175,046 | 89,898 | 264,944 | | Sewage and Reclaimed Water Treatment | – | 8,136 | 8,136 | | **Total** | **7,616,072** | **290,678** | **7,906,750** | | Principal Operating Region (China) | 7,616,072 | 290,678 | 7,906,750 | | Revenue Recognition Timing (Over a period) | 7,441,026 | 192,658 | 7,633,684 | - Performance obligations for construction services are satisfied over time, with contract payments typically due within **90 days** after invoicing[156](index=156&type=chunk) [Credit Impairment Losses](index=61&type=section&id=Credit%20Impairment%20Losses) In H1 2025, the company's total credit impairment losses amounted to RMB (91,884) thousand, primarily from bad debt losses on accounts receivable Credit Impairment Losses Composition (2025 H1 vs 2024 H1) | Loss Type | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Bad Debt Losses on Accounts Receivable | (93,600) | (76,100) | | Bad Debt Losses on Other Receivables | 1,416 | (663) | | Bad Debt Losses on Long-term Receivables | 300 | – | | **Total** | **(91,884)** | **(76,763)** | [Asset Impairment Losses](index=61&type=section&id=Asset%20Impairment%20Losses) In H1 2025, the company reversed asset impairment losses of RMB 67,821 thousand, mainly from contract asset impairment losses Asset Impairment Losses Composition (2025 H1 vs 2024 H1) | Loss Type | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Contract Asset Impairment Losses | 67,821 | 36,784 | [Income Tax Expenses](index=62&type=section&id=Income%20Tax%20Expenses) In H1 2025, the company's income tax expenses were RMB 27,944 thousand, a decrease from the previous year, primarily comprising current income tax expenses and deferred income tax expenses Income Tax Expenses Composition (2025 H1 vs 2024 H1) | Expense Type | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Current Income Tax Expense | 45,473 | 57,793 | | Deferred Income Tax Expense | (17,529) | (22,699) | | **Total** | **27,944** | **35,094** | [Profit Distribution](index=62&type=section&id=Profit%20Distribution) In H1 2025, the Group did not implement any profit distribution - For the period from January 1 to June 30, 2025, the Group did not implement any profit distribution[163](index=163&type=chunk) [Earnings Per Share](index=62&type=section&id=Earnings%20Per%20Share) In H1 2025, the company's basic earnings per share were RMB 0.06, a decrease from the previous year. Diluted earnings per share equal basic earnings per share as the Group has no dilutive potential ordinary shares Earnings Per Share (2025 H1 vs 2024 H1) | Indicator | 2025 H1 (RMB/share) | 2024 H1 (RMB/share) | | :--- | :--- | :--- | | Basic Earnings Per Share (Continuing Operations) | 0.06 | 0.07 | | Current Net Profit Attributable to Ordinary Shareholders of the Company (RMB thousand) | 104,611 | 126,889 | | Weighted Average Number of Ordinary Shares Outstanding of the Company | 1,761,383,500 | 1,761,383,500 | - The Group has no dilutive potential ordinary shares, therefore, diluted earnings per share are equal to basic earnings per share[166](index=166&type=chunk) [Assets with Restricted Ownership](index=63&type=section&id=Assets%20with%20Restricted%20Ownership) As of June 30, 2025, the Group's total assets with restricted ownership amounted to RMB 3,618,599 thousand, primarily including monetary funds, contract assets, long-term receivables, investment properties, fixed assets, and intangible assets, pledged or mortgaged for borrowings or as guarantees Assets with Restricted Ownership (June 30, 2025 vs December 31, 2024) | Asset Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Monetary Funds | 419,295 | 750,657 | | Accounts Receivable | – | 129,374 | | Contract Assets | 2,492,187 | 2,491,704 | | Long-term Receivables (including those due within one year) | 204,190 | 208,702 | | Investment Properties | 91,600 | 91,000 | | Fixed Assets | 322,339 | 409,274 | | Intangible Assets | 88,988 | 91,626 | | **Total** | **3,618,599** | **4,172,337** | - As of June 30, 2025, the Group pledged contract assets with a carrying value of **RMB 2,492,187,000** and long-term receivables of **RMB 204,190,000** to obtain long-term borrowings of **RMB 2,098,504,000**[169](index=169&type=chunk) - As of June 30, 2025, the Group's restricted monetary funds included **RMB 251,199,000** frozen for judicial and other reasons, **RMB 68,596,000** for bill guarantees, and **RMB 99,500,000** for letter of credit guarantees[170](index=170&type=chunk) [Segment Reporting](index=65&type=section&id=Segment%20Reporting) The Group is divided into two reporting segments: construction engineering contracting and other. In H1 2025, the construction engineering contracting segment generated external transaction revenue of RMB 7,616,072 thousand, and the other segment generated RMB 292,130 thousand [Operating Segments](index=65&type=section&id=Operating%20Segments) In H1 2025, the construction engineering contracting segment contributed the majority of external transaction revenue and a total profit of RMB 221,904 thousand, while the "other" segment, including service concession arrangements, reported a total loss of RMB 98,673 thousand - The Group has **2 reporting segments**: the construction engineering contracting segment primarily engages in general contracting and subcontracting of construction projects; the "other" segment primarily includes the Group's service concession arrangements and other services[172](index=172&type=chunk)[174](index=174&type=chunk) Operating Segment Performance (2025 H1) | Indicator | Construction Engineering Contracting (RMB thousand) | Other (RMB thousand) | Adjustments and Eliminations (RMB thousand) | Consolidated (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | External Transaction Revenue | 7,616,072 | 292,130 | – | 7,908,202 | | Investment Income from Joint Ventures and Associates | 704 | – | – | 704 | | Credit Impairment Losses | 42,901 | 48,983 | – | 91,884 | | Asset Impairment Losses | (80,361) | 12,540 | – | (67,821) | | Depreciation and Amortization Expenses | 20,325 | 14,682 | – | 35,007 | | Total Profit | 221,904 | (98,673) | (43) | 123,188 | [Other Information](index=66&type=section&id=Other%20Information) The Group's revenue primarily originates from customers within China, and all non-current assets are located in mainland China. During the reporting period, there was no single customer accounting for more than 10% of consolidated revenue - The Group's revenue primarily originates from customers within China, thus no more detailed geographical segment information is required[176](index=176&type=chunk) - All non-current assets held by the Group are located in mainland China[177](index=177&type=chunk) - During the reporting period, the Group had no single customer accounting for more than **10%** of consolidated revenue[178](index=178&type=chunk) [Fair Value](index=67&type=section&id=Fair%20Value) This section discloses assets and liabilities measured at fair value, including financial assets held for trading, accounts receivable financing, other equity instrument investments, and investment properties, detailing valuation techniques and inputs, especially for Level 3 fair value measurements [Assets and Liabilities Measured at Fair Value](index=67&type=section&id=Assets%20and%20Liabilities%20Measured%20at%20Fair%20Value) As of June 30, 2025, the Group's total recurring fair value measurements amounted to RMB 743,801 thousand, primarily comprising other equity instrument investments and investment properties Assets and Liabilities Measured at Fair Value (June 30, 2025) | Asset Type | Level 1 (RMB thousand) | Level 2 (RMB thousand) | Level 3 (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 2,560 | – | – | 2,560 | | Accounts Receivable Financing | – | 28,822 | – | 28,822 | | Other Equity Instrument Investments | 46,765 | – | 466,254 | 513,019 | | Investment Properties | – | – | 199,400 | 199,400 | | **Total** | **49,325** | **28,822** | **665,654** | **743,801** | [Valuation Techniques and Inputs for Fair Value Measurement](index=68&type=section&id=Valuation%20Techniques%20and%20Inputs%20for%20Fair%20Value%20Measurement) In H1 2025, there were no changes in the valuation processes, techniques, or input levels for fair value measurements. Unlisted equity investments are valued using the listed company comparable method, and investment properties using the discounted cash flow method - For the period from January 1 to June 30, 2025, there were no changes in the valuation processes, valuation techniques, or input levels for fair value measurements[180](index=180&type=chunk) Overview of Significant Unobservable Inputs for Level 3 Fair Value Measurements (June 30, 2025) | Asset Type | Valuation Technique | Unobservable Input | Range (Weighted Average) | | :--- | :--- | :--- | :--- | | Unlisted Equity Investments (Baoding City Commercial Bank Co., Ltd.) | Listed Company Comparable Method | Price-to-Book Ratio (Peer Median) | 0.6–0.9 | | | | Liquidity Discount | 30% | | Investment Properties (Darunfa Supermarket) | Discounted Cash Flow Method | Capitalization Rate | 6.5% | | | | Annual Market Rent (per square meter) | 100–116 | | Investment Properties (Qingyuan Green Industrial Park) | Discounted Cash Flow Method | Capitalization Rate | 6.00% | | | | Annual Market Rent (per square meter) | 17–19 | [Transfers Between Levels of Recurring Fair Value Measurements](index=69&type=section&id=Transfers%20Between%20Levels%20of%20Recurring%20Fair%20Value%20Measurements) In H1 2025, there were no transfers between levels for assets and liabilities subject to recurring fair value measurements - For the period from January 1 to June 30, 2025, there were no transfers between levels for assets and liabilities subject to recurring fair value measurements[182](index=182&type=chunk) [Financial Assets and Liabilities Not Measured at Fair Value](index=69&type=section&id=Financial%20Assets%20and%20Liabilities%20Not%20Measured%20at%20Fair%20Value) As of June 30, 2025, the carrying value of fixed-rate long-term borrowings was RMB 1,785,828 thousand, with a fair value of RMB 1,765,358 thousand Financial Assets and Liabilities Not Measured at Fair Value (June 30, 2025) | Financial Liability | Carrying Value (RMB thousand) | Fair Value (RMB thousand) | Inputs Used for Fair Value Disclosure (Level 2) (RMB thousand) | | :--- | :--- | :--- | :--- | | Fixed-rate Long-term Borrowings | 1,785,828 | 1,765,358 | 1,765,358 | - For the period from January 1 to June 30, 2025, there were no changes in the valuation techniques and input levels for fair value measurements[183](index=183&type=chunk) [Related Party Relationships and Transactions](index=70&type=section&id=Related%20Party%20Relationships%20and%20Transactions) This section details the Group's related party relationships and major transactions, including acceptance and provision of services, leasing, guarantees, and key management personnel compensation, along with balances of related party receivables and payables [Related Party Relationships](index=70&type=section&id=Related%20Party%20Relationships) The Group's related parties include its ultimate holding company Qianbao Investment, parent company Zhongru Investment, various associates, joint ventures, and other entities under common control - Qianbao Investment Co., Ltd. is the Group's ultimate holding company, and Zhongru Investment Co., Ltd. is the parent company[184](index=184&type=chunk) - Related parties also include various associates (e.g., Jianwei County Yizong Liangheng Project Management Co., Ltd.), joint ventures (e.g., Qinhuangdao Yuanyi Road Construction Management Co., Ltd.), and other entities under common control (e.g., Zhongming Real Estate Group Co., Ltd., Baoding Tianli Labor Co., Ltd.)[184](index=184&type=chunk)[185](index=185&type=chunk) [Major Transactions Between the Group and Related Parties](index=72&type=section&id=Major%20Transactions%20Between%20the%20Group%20and%20Related%20Parties) In H1 2025, the Group accepted services of RMB 706,925 thousand from related parties, primarily Baoding Tianli Labor Co., Ltd., and provided services of RMB 71,438 thousand, mainly to Xi'an Zhongyuan Real Estate Development Co., Ltd Services Accepted from Related Parties (2025 H1 vs 2024 H1) | Related Party | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Baoding Tianli Labor Co., Ltd. | 700,363 | 1,146,953 | | Hebei Zhongcheng Property Services Co., Ltd. | 3,179 | 3,403 | | **Total** | **706,925** | **1,154,231** | Services Provided to Related Parties (2025 H1 vs 2024 H1) | Related Party | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Xi'an Zhongyuan Real Estate Development Co., Ltd. | 28,908 | 18,243 | | Hebei Baocang Expressway Co., Ltd. | 21,539 | – | | Zhongyuan Environmental Protection | 12,639 | 11,942 | | **Total** | **71,438** | **63,316** | - The Group provided a guarantee to Qinhuangdao Yuanyi Road Construction Management Co., Ltd. for **RMB 600 million**, with an actual guarantee liability of **RMB 509.75 million**[189](index=189&type=chunk) - The Group received multiple guarantees from Zhongming Real Estate Group Co., Ltd. and Zhongcheng Real Estate Development Co., Ltd., with guarantee amounts ranging from **RMB 10 million to RMB 200 million**[190](index=190&type=chunk) - Key management personnel compensation for H1 2025 was **RMB 2.934 million**[192](index=192&type=chunk) [Balances of Related Party Receivables and Payables](index=77&type=section&id=Balances%20of%20Related%20Party%20Receivables%20and%20Payables) As of June 30, 2025, the Group's total related party accounts receivable were RMB 150,882 thousand, contract assets RMB 470,391 thousand, and other receivables RMB 67,518 thousand. Total related party accounts payable were RMB 1,069,486 thousand, other payables RMB 73,340 thousand, and contract liabilities RMB 93,734 thousand Related Party Accounts Receivable Balances (June 30, 2025) | Related Party | Book Balance (RMB thousand) | Provision for Bad Debts (RMB thousand) | | :--- | :--- | :--- | | Huailai Zhongcheng Real Estate Development Co., Ltd. | 71,127 | 1,347 | | Baoding Zhucheng Real Estate Development Co., Ltd. | 23,738 | 914 | | Baoding City Taiji Real Estate Development Co., Ltd. | 30,872 | 398 | | Chengde Bishu Cultural Industrial Park Co., Ltd. | 26,682 | 344 | | **Total** | **150,882** | **3,003*

Core Points - Hebei Construction Group Co., Ltd. was fined ¥185,855.73 for not following engineering design drawings during construction [1] - The violation occurred on May 16, 2025, in the urban sewage treatment project in Zhuji City [1] - The company has a historical background dating back to 1952 and was listed on the Hong Kong H-share main board in December 2017 [1] Company Overview - Hebei Construction Group was formed from the merger of two central state-owned enterprises in 1964 [1] - The company was officially established as Hebei Construction Group Co., Ltd. in 1997 and renamed to its current name in 2017 [1] - The registered capital of the company is ¥176,138.35 million [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 河北建設集團股份有限公司 呈交日期: 2025年9月3日 第 1 頁 共 10 頁 v 1.1.1 FF301 FF301 II. 已發行股份及/或庫存股份變動 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01727 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 461,383,500 | RMB | | | 1 RMB | | 461,383,500 | | 增加 / 減少 (-) | | | 0 | | | | RMB | | 0 | | 本月底結存 | | | 461,383,50 ...

Group 1 - The core viewpoint of the article is that Hebei Construction (01727) reported a significant decline in both revenue and net profit for the first half of 2025 compared to the same period in 2024 [1] - The company's revenue for the first half of 2025 was RMB 7.908 billion, representing a 28% decrease from the previous year [1] - The net profit for the same period was RMB 95 million, which is a 21% decline compared to 2024 [1] - Earnings per share for the company stood at RMB 0.06 [1] Group 2 - The decrease in revenue is primarily attributed to a drop in income from the construction contracting segment, which fell by RMB 3.174 billion [1]

Core Insights - Hebei Construction (01727) reported a mid-year performance for 2025, with revenue of RMB 7.908 billion, representing a 28% decrease compared to the same period in 2024 [1] - The net profit was RMB 95 million, down 21% from the previous year [1] - Earnings per share stood at RMB 0.06 [1] Revenue Breakdown - The decline in revenue was primarily attributed to a decrease of RMB 3.174 billion in the construction contracting segment [1]

Core Viewpoint - Hebei Construction (01727.HK) reported a significant decline in revenue and net profit for the six months ending June 30, 2025, compared to the same period in 2024 [1] Financial Performance - Revenue for the six months ending June 30, 2025, was RMB 7.908 billion, representing a 28% decrease compared to the same period in 2024 [1] - Net profit for the same period was RMB 950 million, down 21% from 2024 [1] - Earnings per share for the six months ending June 30, 2025, were RMB 0.06, reflecting a 14% decline compared to the previous year [1]