香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 河北建設集團股份有限公司 HEBEI CONSTRUCTION GROUP CORPORATION LIMITED （於中華人民共和國註冊成立的股份有限公司） （股份代號：1727） 董事會會議日期 河 北 建 設 集 團 股 份 有 限 公 司（「本公司」）董 事 會（「董事會」）謹 此 公 佈，董 事 會 會 議將於2025年8月25日（星 期 一）舉 行，藉 以（其 中 包 括）考 慮 及 批 准 本 公 司 及 其 附 屬公司截至2025年6月30日 止 六 個 月 之 中 期 業 績 及 其 發 佈，並 考 慮 建 議 派 發 中 期 股 息（如 有）。 承董事會命 河北建設集團股份有限公司 董事長兼執行董事 李寶忠 中 國，河 北 2025年8月13日 於 本 公 告 日 期，執 行 董 事 為 李 寶 忠 先 生、商 金 峰 先 生、 ...

河北建设(01727)公布，公司于近期召开的职工代表大会上，选举田伟先生为公司第三届董事会职工代 表董事，其将继续担任执行董事的职位，任期与公司第三届董事会任期一致。 ...

智通财经APP讯，河北建设(01727)公布，公司于近期召开的职工代表大会上，选举田伟先生为公司第三 届董事会职工代表董事，其将继续担任执行董事的职位，任期与公司第三届董事会任期一致。 ...

截至月份: 2025年7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8月4日 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 | 普通股 | 股份類別 | | 其他類別 (請註明) | | 於香港聯交所上市 (註1 ...

Financial Performance - In 2024, the revenue was RMB 25.06 billion, a decrease of 25% compared to 2023[4] - In 2024, the net profit was RMB 1.59 billion, an increase of 1% compared to 2023[5] - The earnings per share for 2024 remained stable at RMB 0.10, unchanged from 2023[6] - The operating income for 2024 was RMB 25.06 billion, compared to RMB 33.49 billion in 2023[15] - The operating profit for 2024 was RMB 204.29 million, down from RMB 229.01 million in 2023[15] - The total comprehensive income for 2024 was RMB 163.25 million, an increase from RMB 39.20 million in 2023[18] - The company's main operating revenue for 2024 is RMB 25,058,949 thousand, down 25.2% from RMB 33,492,866 thousand in 2023[41] - The revenue from construction services in 2024 is RMB 15,452,299 thousand, a decrease of 24.9% from RMB 20,490,784 thousand in 2023[45] - In 2024, the total revenue decreased by approximately RMB 8.434 billion to RMB 25.059 billion, primarily due to a decline in the construction contracting segment's revenue by RMB 8.499 billion[76] Assets and Liabilities - As of December 31, 2024, total assets amounted to RMB 61.84 billion, down from RMB 64.89 billion in 2023[9] - Total liabilities as of December 31, 2024, were RMB 55.45 billion, a decrease from RMB 58.66 billion in 2023[12] - The company reported a decrease in contract assets from RMB 39.12 billion in 2023 to RMB 38.27 billion in 2024[9] - The long-term receivables amount to RMB 170,007 thousand for 2024, a decrease of 4.3% from RMB 177,569 thousand in 2023[32] - The total accounts payable for 2024 is RMB 32,346,648 thousand, a decrease of 6.2% from RMB 34,488,055 thousand in 2023[36] - As of December 31, 2024, cash and cash equivalents were approximately RMB 5 billion, down RMB 1.938 billion from the end of 2023[90] - Contract assets decreased to RMB 41.141 billion, down RMB 9.67 billion, primarily due to project settlement based on performance progress[98] - As of December 31, 2024, the carrying value of other equity instrument investments was RMB 531 million, a decrease of RMB 58 million from 2023, primarily due to fair value changes[99] - As of December 31, 2024, the group had interest-bearing borrowings of approximately RMB 6.056 billion, an increase from RMB 5.736 billion as of December 31, 2023[101] - Accounts payable as of December 31, 2024, amounted to RMB 32.347 billion, a decrease of RMB 2.141 billion (6%) compared to the end of 2023, mainly due to reduced procurement volume from decreased engineering work[101] Expenses and Costs - Research and development expenses for 2024 were RMB 121.20 million, down from RMB 148.14 million in 2023[15] - The total operating costs for 2024 amounted to RMB 24,220,003 thousand, a decrease of 25.2% compared to RMB 32,374,266 thousand in 2023[55] - Management expenses for 2024 were RMB 410 million, down RMB 118 million from 2023, mainly due to reduced salary costs[80] - R&D expenses decreased to RMB 121 million, a reduction of RMB 27 million, due to fewer new project initiations[81] Contracts and New Business - The new contract amount for 2024 was RMB 24.348 billion, down 23.8% from RMB 31.964 billion in 2023[65] - The uncompleted contract amount as of 2024 was RMB 52.724 billion, a decrease from RMB 59.849 billion in 2023[65] - The new contract amount from housing construction business in 2024 was RMB 14.310 billion, down from RMB 17.292 billion in 2023[68] - The new contract amount from infrastructure construction business in 2024 was RMB 4.548 billion, significantly lower than RMB 10.436 billion in 2023[70] - The new contract amount from professional and other construction engineering in 2024 was RMB 5.490 billion, an increase from RMB 4.236 billion in 2023[73] Tax and Dividends - The total tax payable for 2024 is RMB 882,346 thousand, a slight decrease from RMB 888,270 thousand in 2023[38] - The income tax expense for 2024 was RMB 44,552 thousand, a reduction of 35.5% from RMB 69,207 thousand in 2023[57] - The company plans not to declare any dividends for the year ending December 31, 2024[63] - The board recommended not to declare a final dividend for the year ended December 31, 2024[117] Management and Governance - The company’s management highlighted a focus on expanding its construction engineering contracting services in the residential and public utility sectors[65] - The company has adhered to all provisions of the Corporate Governance Code as of December 31, 2024, and has adopted the majority of the recommended best practices[120] - The company has appointed Ernst & Young Hua Ming as the auditor for the annual financial report under Chinese accounting standards for the year ending December 31, 2024[123] - The audit committee has reviewed the group's annual performance and the audited consolidated financial report prepared in accordance with Chinese accounting standards for the year ending December 31, 2024[124] Financial Ratios - The current ratio and quick ratio both improved to 1.10 in 2024 from 1.00 in 2023[104] - The debt-to-equity ratio increased to 94.8% in 2024 from 92.1% in 2023[104] - The return on assets (ROA) improved to 0.3% in 2024 from 0.2% in 2023, while the return on equity (ROE) slightly decreased to 2.5% from 2.6%[104] Acquisitions - The company successfully acquired 51% of Zhongwei Construction for RMB 51.51 million, completed on April 7, 2024[106] Future Plans - The company plans to enhance market development capabilities in 2025, focusing on regional and industry-specific strategies, particularly in Hebei province[116]

L-T 河北建設集團股份有限公司 HEBEI CONSTRUCTION GROUP CORPORATION LIMITED (於中華人民共和國註冊成立的股份有限公司) (股份代號：1727) ２０２４ 中期報告 TT 4 目 錄 公司資料 2 財務概要 4 業務概覽 5 管理層討論與分析 20 其他事項 27 股本變動及股東資料 30 董事、監事及高級管理人員情況 35 中 期 合 併 資 產 負 債 表（未 經 審 核） 36 中 期 合 併 利 潤 表（未 經 審 核） 38 中 期 合 併 所 有 者 權 益 變 動 表（未 經 審 核） 40 中 期 合 併 現 金 流 量 表（未 經 審 核） 42 公 司 資 產 負 債 表（未 經 審 核） 44 公 司 利 潤 表（未 經 審 核） 46 公 司 所 有 者 權 益 變 動 表（未 經 審 核） 47 公 司 現 金 流 量 表（未 經 審 核） 49 財務報表附註 51 釋 義 90 公司資料 2 下文載列本公司基本資料： | --- | --- | |--------------------------------------------- ...

[Announcement Information](index=1&type=section&id=Announcement%20Information) Hebei Construction Group Co., Ltd. released its unaudited interim consolidated results for the six months ended June 30, 2024 - Hebei Construction Group Co., Ltd. announced its unaudited interim consolidated results for the six months ended June 30, 2024[1](index=1&type=chunk) - The company's stock code is 1727, and the announcement date is August 26, 2024[1](index=1&type=chunk) [Financial Highlights](index=2&type=section&id=Financial%20Highlights) This section provides an overview of the company's key financial metrics for the first half of 2024, including revenue, net profit, and earnings per share 2024 H1 Financial Highlights | Indicator | June 30, 2024 (RMB) | Same Period 2023 (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 11.015 billion yuan | (Not provided) | Decreased by 26% | | Net Profit | 121 million yuan | (Not provided) | Increased by 9% | | Earnings Per Share | 0.07 yuan | 0.07 yuan | Unchanged | [Business Review](index=3&type=section&id=Business%20Review) This section reviews the company's construction engineering contracting business, including new contracts, in-progress, and completed projects - The company primarily engages in construction engineering contracting, including building construction, infrastructure construction, and specialized and other construction engineering[4](index=4&type=chunk) 2024 H1 New Contract Value Overview | Indicator | 2024 (RMB billion yuan) | 2023 (RMB billion yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | New Contract Value | 13.960 | 14.335 | Decreased by 2.62% | | Beijing-Tianjin-Hebei Region Share | 88.91% | 91.24% | Decreased by 2.33 percentage points | | Other Regions Share | 11.09% | 8.76% | Increased by 2.33 percentage points | [Company Business Overview](index=3&type=section&id=Company%20Business%20Overview) The company is a leading non-state-owned construction group in China, with core businesses in building construction, infrastructure construction, and specialized and other construction engineering 2024 H1 New Contract Value by Business Segment | Business Segment | 2024 Share | 2023 Share | Change | | :--- | :--- | :--- | :--- | | Building Construction Engineering | 55.98% | 53.54% | Increased by 2.44 percentage points | | Infrastructure Construction Engineering | 18.77% | 32.21% | Decreased by 13.44 percentage points | | Specialized and Other Construction Engineering | 25.25% | 14.25% | Increased by 11.00 percentage points | [Building Construction Business](index=4&type=section&id=Building%20Construction%20Business) The company primarily provides services as a general contractor for residential, public, industrial, and commercial building projects - The company acts as a general contractor, responsible for all major aspects of building construction projects, including construction, foundation, curtain wall, decoration, and fire protection engineering[7](index=7&type=chunk) New Contract Value and Segment Share for Building Construction Business | Indicator | 2024 (RMB billion yuan) | 2023 (RMB billion yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | New Contract Value | 7.815 | 7.675 | Increased by 1.82% | | Residential Building Engineering Share | 34.54% | 27.18% | Increased by 7.36 percentage points | | Public Building Engineering Share | 46.87% | 50.97% | Decreased by 4.10 percentage points | | Industrial Building Engineering Share | 18.59% | 21.74% | Decreased by 3.15 percentage points | | Commercial Building Engineering Share | 0.00% | 0.11% | Decreased by 0.11 percentage points | [Infrastructure Construction Business](index=4&type=section&id=Infrastructure%20Construction%20Business) The company provides construction engineering contracting services for municipal and transportation infrastructure projects, primarily for local governments - The infrastructure construction business primarily serves municipal and transportation projects, with local governments as main clients[8](index=8&type=chunk) New Contract Value and Segment Share for Infrastructure Construction Business | Indicator | 2024 (RMB billion yuan) | 2023 (RMB billion yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | New Contract Value | 2.620 | 4.617 | Decreased by 43.25% | | Municipal Infrastructure Construction Engineering Share | 62.43% | 69.91% | Decreased by 7.48 percentage points | | Transportation Infrastructure Construction Engineering Share | 37.57% | 30.09% | Increased by 7.48 percentage points | [Specialized and Other Construction Engineering Contracting Business](index=5&type=section&id=Specialized%20and%20Other%20Construction%20Engineering%20Contracting%20Business) The company undertakes projects with professional qualifications in mechanical and electrical installation, steel structure construction, and decoration - The specialized and other construction engineering contracting business covers areas such as mechanical and electrical installation, steel structure construction, and decoration[9](index=9&type=chunk) New Contract Value and Segment Share for Specialized and Other Construction Engineering Contracting Business | Indicator | 2024 (RMB billion yuan) | 2023 (RMB billion yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | New Contract Value | 3.525 | 2.042 | Increased by 72.62% | | Mechanical and Electrical Installation Share | 25.20% | 35.37% | Decreased by 10.17 percentage points | | Steel Structure Share | 0.17% | 4.10% | Decreased by 3.93 percentage points | | Decoration and Renovation Share | 5.25% | 23.73% | Decreased by 18.48 percentage points | | Other Construction Business Share | 69.38% | 36.79% | Increased by 32.59 percentage points | [Representative New Contracts](index=6&type=section&id=Representative%20New%20Contracts) This section highlights key new contracts signed in H1 2024, primarily in Hebei Province, across various construction types - Representative new contracts are mainly concentrated in Hebei Province, including residential buildings, public buildings, mechanical and electrical installations, and water conservancy and hydropower projects[10](index=10&type=chunk) - The EPC general contract for the North China Electric Power University Science and Technology Industrial Park supporting infrastructure project has a contract value of **RMB 1.370 billion**[10](index=10&type=chunk) [Representative Projects Under Construction](index=7&type=section&id=Representative%20Projects%20Under%20Construction) This section showcases various ongoing projects across multiple provinces and construction types, including public, residential, and infrastructure - Projects under construction are widely distributed in Hebei Province and other provinces and cities, including Xinjiang, Inner Mongolia, Beijing, Shandong, Jiangsu, Tibet, Anhui, Heilongjiang, Chongqing, Qinghai, Guizhou, and Zhejiang[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) - The China Academy of Chinese Medical Sciences Guang'anmen Hospital Baoding Hospital project has an executed contract value of **RMB 1.943 billion**, the largest among the listed projects[11](index=11&type=chunk) - The EPC general contract for the Innovation Manufacturing Industrial Park Infrastructure Project has an executed contract value of **RMB 1.362 billion**[16](index=16&type=chunk) [Representative Completed Projects](index=14&type=section&id=Representative%20Completed%20Projects) This section lists representative completed projects, including university buildings, urban renewal, and industrial parks, with varying contract values - Completed projects cover public buildings, residential buildings, industrial buildings, municipal infrastructure construction, and other construction businesses[18](index=18&type=chunk) - The China Western (Guangyuan) Green Home Furnishing Industrial City Start-up Zone Construction Project has an executed contract value of **RMB 1.050 billion**[18](index=18&type=chunk) [Scientific Research Achievements and Awards](index=15&type=section&id=Scientific%20Research%20Achievements%20and%20Awards) This section provides an overview of the company's technological advancements, platform development, and intellectual property achievements in H1 2024 - In the first half of 2024, the company's scientific and technological work achieved significant progress in research and development, platform construction, and intellectual property[20](index=20&type=chunk) - Eight construction science and technology plan projects and 15 new technology application demonstration projects were approved by the Hebei Provincial Department of Housing and Urban-Rural Development, along with five science and technology plan projects by the Hebei Provincial Construction Industry Association[20](index=20&type=chunk) - The company received one 2023 Hebei Provincial Science and Technology Cooperation Award and 28 2024 Hebei Provincial Construction Industry Science and Technology Progress Awards, including three first prizes[20](index=20&type=chunk) - As of the end of June 2024, 70 new patents were authorized (including 4 invention patents), and 32 new patent applications were filed[20](index=20&type=chunk) [Future Outlook](index=16&type=section&id=Future%20Outlook) This section outlines the company's strategic focus on strengthening organization, enhancing cash flow, expanding markets, fostering innovation, and improving project quality - The company will focus on strengthening organizational construction and various system operations to continuously increase cash flow sufficiency and navigate economic cycles[22](index=22&type=chunk) - It will continue to intensify regional and industry market development, strictly control market entry, and ensure high-quality projects[22](index=22&type=chunk) - The company will vigorously promote innovative and entrepreneurial organizations, explore new upstream and downstream areas, and support young talent in unleashing their creativity[22](index=22&type=chunk) - It will continuously improve project delivery quality, standardize construction site safety production and VIS image building, and actively strive for high-quality projects at all levels[22](index=22&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) This section provides a detailed analysis of the company's financial performance, including revenue, costs, profits, and key financial positions - In the first half of 2024, the company's revenue decreased by **RMB 3.933 billion** to **RMB 11.015 billion**, primarily due to a decline in revenue from the construction engineering contracting segment[23](index=23&type=chunk) - Net profit increased by approximately **RMB 9.69 million** to **RMB 121 million**[34](index=34&type=chunk) 2024 H1 Financial Ratios | Indicator | June 30, 2024 | December 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Current Ratio (times) | 1.1 | 1.0 | Increased by 0.1 | | Quick Ratio (times) | 1.1 | 1.0 | Increased by 0.1 | | Gearing Ratio | 93.5% | 92.1% | Increased by 1.4 percentage points | | Return on Assets (non-annualized) | 0.2% | 0.2% | Unchanged | | Return on Equity (non-annualized) | 1.9% | 2.6% | Decreased by 0.7 percentage points | [Revenue, Cost of Sales, and Gross Profit](index=17&type=section&id=Revenue%2C%20Cost%20of%20Sales%2C%20and%20Gross%20Profit) H1 2024 revenue decreased, primarily due to a decline in the construction engineering contracting segment, impacting all major business lines - The decrease of **RMB 3.894 billion** in revenue from the construction engineering contracting segment was the main reason for the overall revenue decline[23](index=23&type=chunk) Operating Performance of Construction Engineering Contracting Segment (H1 2024 vs H1 2023) | Business | 2024 Revenue (RMB billion yuan) | 2024 Cost (RMB billion yuan) | 2024 Gross Margin (%) | 2023 Revenue (RMB billion yuan) | 2023 Cost (RMB billion yuan) | 2023 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Building Construction | 6.984 | 6.628 | 5.1 | 9.430 | 8.985 | 4.7 | | Infrastructure Construction | 3.099 | 2.880 | 7.1 | 4.109 | 3.846 | 6.4 | | Specialized and Other Construction | 0.725 | 0.686 | 5.4 | 1.163 | 1.109 | 4.6 | | **Total** | **10.808** | **10.194** | **5.7** | **14.702** | **13.940** | **5.2** | - Building construction business revenue decreased by **RMB 2.446 billion**, affected by a sluggish real estate market and slower project progress[24](index=24&type=chunk) - Infrastructure construction business revenue decreased by **RMB 1.010 billion**, mainly due to slower growth in infrastructure investment and fewer new contracts signed[24](index=24&type=chunk) - Specialized and other construction business revenue decreased by **RMB 438 million** due to fewer new projects[25](index=25&type=chunk) [Selling Expenses](index=18&type=section&id=Selling%20Expenses) Selling expenses for H1 2024 were RMB 0.97 million, showing a minor increase year-on-year Selling Expenses | Indicator | Jan-Jun 2024 (RMB million yuan) | Same Period 2023 (RMB million yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Selling Expenses | 0.97 | (Not provided) | Minor increase | [Administrative Expenses](index=18&type=section&id=Administrative%20Expenses) Administrative expenses decreased in H1 2024, mainly due to reduced staff remuneration, benefits, and social insurance Administrative Expenses | Indicator | H1 2024 (RMB million yuan) | Same Period 2023 (RMB million yuan) | Year-on-Year Change (RMB million yuan) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 212 | (Not provided) | Decreased by 67.57 | - The decrease in administrative expenses was primarily attributable to reduced staff remuneration, benefits, and social insurance expenses[27](index=27&type=chunk) [Research and Development Expenses](index=18&type=section&id=Research%20and%20Development%20Expenses) R&D expenses decreased in H1 2024, primarily due to fewer new R&D projects initiated Research and Development Expenses | Indicator | H1 2024 (RMB million yuan) | Same Period 2023 (RMB million yuan) | Year-on-Year Change (RMB million yuan) | | :--- | :--- | :--- | :--- | | R&D Expenses | 33.22 | (Not provided) | Decreased by 36.10 | - The decrease in R&D expenses was mainly due to fewer new R&D projects initiated during the reporting period[28](index=28&type=chunk) [Credit Impairment Losses](index=18&type=section&id=Credit%20Impairment%20Losses) Credit impairment losses decreased in H1 2024, mainly due to reduced bad debt provisions for high-risk customers Credit Impairment Losses | Indicator | Jan-Jun 2024 (RMB million yuan) | Same Period 2023 (RMB million yuan) | Year-on-Year Change (RMB million yuan) | | :--- | :--- | :--- | :--- | | Credit Impairment Losses | 76.76 | (Not provided) | Decreased by 10.28 | - The decrease in credit impairment losses was primarily due to a reduction in bad debt provisions for customers with significant default risks during the period[29](index=29&type=chunk) [Asset Impairment Losses](index=18&type=section&id=Asset%20Impairment%20Losses) Asset impairment loss reversals increased in H1 2024, primarily due to lower original contract asset values from decreased revenue Asset Impairment Losses | Indicator | Jan-Jun 2024 (RMB million yuan) | Same Period 2023 (RMB million yuan) | Year-on-Year Change (RMB million yuan) | | :--- | :--- | :--- | :--- | | Asset Impairment Loss Reversal | 36.78 | 9.67 | Increased by 27.11 | - The increase in asset impairment loss reversals was mainly due to a decrease in the original value of contract assets resulting from lower revenue, which in turn reduced the new provision for bad debts on contract assets[30](index=30&type=chunk) [Investment Losses](index=19&type=section&id=Investment%20Losses) Investment losses decreased in H1 2024, mainly due to reduced losses from long-term equity investments accounted for using the equity method Investment Losses | Indicator | Jan-Jun 2024 (RMB million yuan) | Same Period 2023 (RMB million yuan) | Year-on-Year Change (RMB million yuan) | | :--- | :--- | :--- | :--- | | Investment Losses | 1.90 | 8.38 | Decreased by 6.48 | - The decrease in investment losses was primarily due to a reduction in losses from long-term equity investments accounted for using the equity method[32](index=32&type=chunk) [Income Tax Expense](index=19&type=section&id=Income%20Tax%20Expense) Income tax expense decreased in H1 2024, primarily due to some subsidiaries utilizing prior year deductible losses Income Tax Expense | Indicator | Jan-Jun 2024 (RMB million yuan) | Same Period 2023 (RMB million yuan) | Year-on-Year Change (RMB million yuan) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 35.09 | 45.78 | Decreased by 10.69 | - The decrease in income tax expense was mainly due to certain subsidiaries utilizing deductible losses from previous years[33](index=33&type=chunk) [Net Profit](index=19&type=section&id=Net%20Profit) Net profit for H1 2024 increased to RMB 121 million, up by approximately RMB 9.69 million year-on-year Net Profit | Indicator | H1 2024 (RMB million yuan) | Same Period 2023 (RMB million yuan) | Year-on-Year Change (RMB million yuan) | | :--- | :--- | :--- | :--- | | Net Profit | 121 | (Not provided) | Increased by 9.69 | [Liquidity, Financial Resources, and Capital Structure](index=19&type=section&id=Liquidity%2C%20Financial%20Resources%2C%20and%20Capital%20Structure) The Group primarily funds operations through cash generated from operating activities and interest-bearing borrowings - The Group primarily funds its operations through cash generated from operating activities and interest-bearing borrowings[34](index=34&type=chunk) Cash and Cash Equivalents | Indicator | June 30, 2024 (RMB billion yuan) | December 31, 2023 (RMB billion yuan) | Change (RMB billion yuan) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 4.840 | 6.528 | Decreased by 1.688 | [Cash and Bank Balances](index=19&type=section&id=Cash%20and%20Bank%20Balances) Cash and bank balances decreased as of June 30, 2024, primarily due to net cash outflow from operating activities Cash and Bank Balances | Indicator | June 30, 2024 (RMB billion yuan) | December 31, 2023 (RMB billion yuan) | Change (RMB billion yuan) | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 6.143 | 7.689 | Decreased by 1.546 | - The decrease in cash and bank balances was primarily due to net cash outflow from operating activities[35](index=35&type=chunk) [Financial Policy](index=19&type=section&id=Financial%20Policy) The Group regularly monitors cash flow and balances to maintain optimal liquidity for operations and growth strategies - The Group regularly monitors cash flow and cash balances, striving to maintain optimal liquidity levels to support operations and growth strategies[36](index=36&type=chunk) - In the future, the Group intends to continue funding its operations through cash generated from operating activities and interest-bearing borrowings[36](index=36&type=chunk) [Long-term Equity Investments](index=19&type=section&id=Long-term%20Equity%20Investments) Long-term equity investments decreased as of June 30, 2024, mainly due to the disposal of an investment in Rongcheng County Hengda Construction Investment Co., Ltd Long-term Equity Investments | Indicator | June 30, 2024 (RMB million yuan) | December 31, 2023 (RMB million yuan) | Change (RMB million yuan) | | :--- | :--- | :--- | :--- | | Long-term Equity Investments | 470 | 501 | Decreased by 30.77 | - The decrease in long-term equity investments was primarily due to the disposal of the long-term equity investment in Rongcheng County Hengda Construction Investment Co., Ltd. during the period[37](index=37&type=chunk) [Accounts Receivable and Long-term Receivables](index=20&type=section&id=Accounts%20Receivable%20and%20Long-term%20Receivables) Net accounts receivable decreased as of June 30, 2024, while long-term receivables (including current portion) showed a minor decrease Accounts Receivable and Long-term Receivables | Indicator | June 30, 2024 (RMB billion yuan/million yuan) | December 31, 2023 (RMB billion yuan/million yuan) | Change (RMB billion yuan/million yuan) | | :--- | :--- | :--- | :--- | | Net Accounts Receivable | 7.164 | 7.479 | Decreased by 314 million yuan | | Long-term Receivables (incl. current portion) | 219 | 222 | Decreased by 2.58 million yuan | [Other Receivables](index=20&type=section&id=Other%20Receivables) Other receivables increased as of June 30, 2024, with a minor overall change Other Receivables | Indicator | June 30, 2024 (RMB billion yuan) | December 31, 2023 (RMB billion yuan) | Change (RMB billion yuan) | | :--- | :--- | :--- | :--- | | Other Receivables Balance | 2.408 | 2.298 | Increased by 0.110 | [Contract Assets and Contract Liabilities for Construction Services](index=20&type=section&id=Contract%20Assets%20and%20Contract%20Liabilities%20for%20Construction%20Services) Net contract assets decreased due to lower revenue, while contract liabilities increased due to new projects with advance payments Contract Assets and Contract Liabilities | Indicator | June 30, 2024 (RMB billion yuan) | December 31, 2023 (RMB billion yuan) | Change (RMB billion yuan) | | :--- | :--- | :--- | :--- | | Net Contract Assets | 40.494 | 42.108 | Decreased by 1.614 | | Contract Liabilities | 6.937 | 6.704 | Increased by 0.233 | - The decrease in contract assets was primarily due to lower revenue during the reporting period[41](index=41&type=chunk) - The increase in contract liabilities was mainly due to new projects undertaken during the period that received advance payments for engineering work[41](index=41&type=chunk) [Investments in Other Equity Instruments](index=20&type=section&id=Investments%20in%20Other%20Equity%20Instruments) Carrying value of investments in other equity instruments increased due to fair value appreciation from market conditions Investments in Other Equity Instruments | Indicator | June 30, 2024 (RMB million yuan) | December 31, 2023 (RMB million yuan) | Change (RMB million yuan) | | :--- | :--- | :--- | :--- | | Carrying Value of Investments in Other Equity Instruments | 594 | 589 | Increased by 5.40 | - The increase was primarily due to the fair value appreciation of some investments in other equity instruments held, influenced by market conditions[42](index=42&type=chunk) [Borrowings](index=20&type=section&id=Borrowings) Interest-bearing borrowings slightly increased as of June 30, 2024 Interest-bearing Borrowings | Indicator | June 30, 2024 (RMB billion yuan) | December 31, 2023 (RMB billion yuan) | Change (RMB billion yuan) | | :--- | :--- | :--- | :--- | | Interest-bearing Borrowings | 5.941 | 5.736 | Increased by 0.205 | [Bills Payable and Accounts Payable](index=20&type=section&id=Bills%20Payable%20and%20Accounts%20Payable) Accounts payable decreased due to lower project volumes and increased cash payments, while bills payable increased due to higher proportion of bill payments Bills Payable and Accounts Payable | Indicator | June 30, 2024 (RMB billion yuan) | December 31, 2023 (RMB billion yuan) | Change (RMB billion yuan) | | :--- | :--- | :--- | :--- | | Accounts Payable Balance | 30.776 | 34.488 | Decreased by 3.712 | | Bills Payable Balance | 1.219 | 1.036 | Increased by 0.184 | - The decrease in accounts payable was mainly due to lower project volumes and an increased proportion of cash payments for major materials and subcontracting[43](index=43&type=chunk) - The increase in bills payable was primarily due to the Group increasing the proportion of payments made via bills[43](index=43&type=chunk) [Capital Expenditures](index=21&type=section&id=Capital%20Expenditures) Capital expenditures decreased in H1 2024, primarily due to no significant purchases of fixed assets or construction in progress Capital Expenditures | Indicator | H1 2024 (RMB million yuan) | Same Period 2023 (RMB million yuan) | Change (RMB million yuan) | | :--- | :--- | :--- | :--- | | Capital Expenditures | 15 | (Not provided) | Decreased by 36 | - The decrease in capital expenditures was mainly due to no significant purchases of fixed assets or construction in progress during the reporting period[44](index=44&type=chunk) [Capital Commitments](index=21&type=section&id=Capital%20Commitments) The Group had no significant capital commitments as of June 30, 2024 - As of June 30, 2024, the Group had no significant capital commitments[44](index=44&type=chunk) [Financial Ratios](index=21&type=section&id=Financial%20Ratios) As of June 30, 2024, current and quick ratios both increased, while the gearing ratio slightly rose and return on equity decreased 2024 H1 Financial Ratios | Indicator | June 30, 2024 | December 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Current Ratio (times) | 1.1 | 1.0 | Increased by 0.1 | | Quick Ratio (times) | 1.1 | 1.0 | Increased by 0.1 | | Gearing Ratio | 93.5% | 92.1% | Increased by 1.4 percentage points | | Return on Assets (non-annualized) | 0.2% | 0.2% | Unchanged | | Return on Equity (non-annualized) | 1.9% | 2.6% | Decreased by 0.7 percentage points | [Significant Acquisitions or Disposals](index=21&type=section&id=Significant%20Acquisitions%20or%20Disposals) The Group had no significant acquisitions or disposals during the reporting period - The Group had no significant acquisitions or disposals during the reporting period[45](index=45&type=chunk) [Contingent Liabilities](index=21&type=section&id=Contingent%20Liabilities) Contingent liabilities include bank credit financing guarantees to third parties and contingent liabilities from pending litigations or arbitrations Contingent Liabilities | Type | Amount (RMB million yuan) | | :--- | :--- | | Bank credit financing guarantees to third parties | 655 | | Contingent liabilities from pending litigations or arbitrations | 44 | [RMB Exchange Rate Fluctuations and Exchange Risk](index=22&type=section&id=RMB%20Exchange%20Rate%20Fluctuations%20and%20Exchange%20Risk) The Group has no significant foreign exchange fluctuation risk as most business and bank loans are transacted in RMB, with no hedging policy in place - The Group's vast majority of business and all bank loans are transacted in RMB, thus there is no significant foreign exchange fluctuation risk[48](index=48&type=chunk) - The Group currently has no hedging policy against foreign exchange risk[48](index=48&type=chunk) [Significant Subsequent Events](index=22&type=section&id=Significant%20Subsequent%20Events) The Group had no significant subsequent events as of the announcement date - As of the date of this announcement, the Group had no significant subsequent events[48](index=48&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) This section covers dividend policy, corporate governance, securities dealings by directors and supervisors, share transactions, and audit committee review - The Board does not recommend an interim dividend for the first half of 2024[48](index=48&type=chunk) - The company is committed to maintaining high corporate governance standards, complies with the Corporate Governance Code, and has reviewed its interim results[48](index=48&type=chunk) [Dividends](index=22&type=section&id=Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2024 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[48](index=48&type=chunk) [Corporate Governance Practices](index=22&type=section&id=Corporate%20Governance%20Practices) The company is committed to high corporate governance standards and has complied with all code provisions of the Corporate Governance Code - The company is committed to achieving and maintaining a high level of corporate governance and has established an effective corporate governance structure[48](index=48&type=chunk) - For the six months ended June 30, 2024, the company has complied with all code provisions of the Corporate Governance Code[48](index=48&type=chunk) [Securities Transactions by Directors and Supervisors](index=23&type=section&id=Securities%20Transactions%20by%20Directors%20and%20Supervisors) The company adopted the Model Code for securities transactions by directors and supervisors, and all confirmed compliance during the period - The company has adopted the Model Code as the code of conduct for directors and supervisors in dealing in the company's securities[50](index=50&type=chunk) - All directors and supervisors confirmed compliance with the required standards set out in the Model Code during the reporting period[50](index=50&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period, and held no treasury shares - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[51](index=51&type=chunk) - As of the end of the reporting period, neither the company nor its subsidiaries held any treasury shares[51](index=51&type=chunk) [Audit Committee Review of Interim Results](index=23&type=section&id=Audit%20Committee%20Review%20of%20Interim%20Results) The Audit Committee reviewed and confirmed the Group's interim results announcement and unaudited interim financial statements - The company's Audit Committee has reviewed and confirmed the Group's interim results announcement and unaudited interim financial statements for the six months ended June 30, 2024[52](index=52&type=chunk) - The Audit Committee members include Ms. Shen Lifeng (Chairperson), Mr. Li Baoyuan, Ms. Chen Xin, and Mr. Chen Yisheng[52](index=52&type=chunk) [Interim Consolidated Statement of Financial Position](index=24&type=section&id=Interim%20Consolidated%20Statement%20of%20Financial%20Position) This section presents the Group's consolidated financial position, including total assets, liabilities, and equity, as of June 30, 2024 Interim Consolidated Statement of Financial Position Key Data (RMB thousand yuan) | Item | June 30, 2024 | December 31, 2023 | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total Current Assets | 55,123,491 | 58,298,210 | -3,174,719 | | Total Non-current Assets | 6,532,017 | 6,587,387 | -55,370 | | **Total Assets** | **61,655,508** | **64,885,597** | **-3,230,089** | | **Liabilities** | | | | | Total Current Liabilities | 52,098,989 | 55,795,695 | -3,696,706 | | Total Non-current Liabilities | 3,201,036 | 2,862,046 | +338,990 | | **Total Liabilities** | **55,300,025** | **58,657,741** | **-3,357,716** | | **Equity** | | | | | Total Equity Attributable to Owners of the Parent | 6,180,966 | 6,047,329 | +133,637 | | Non-controlling Interests | 174,517 | 180,527 | -6,010 | | **Total Equity** | **6,355,483** | **6,227,856** | **+127,627** | [Interim Consolidated Statement of Profit or Loss](index=26&type=section&id=Interim%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This section presents the Group's consolidated financial performance, including revenue, costs, and net profit, for the six months ended June 30, 2024 Interim Consolidated Statement of Profit or Loss Key Data (RMB thousand yuan) | Item | Jan-Jun 2024 | Jan-Jun 2023 | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 11,015,171 | 14,948,567 | -3,933,396 | | Cost of Sales | 10,365,625 | 14,145,504 | -3,779,879 | | Selling Expenses | 967 | 488 | +479 | | Administrative Expenses | 212,043 | 279,616 | -67,573 | | Research and Development Expenses | 33,224 | 69,325 | -36,101 | | Finance Costs | 178,624 | 180,874 | -2,250 | | Investment Income | (1,900) | (8,382) | +6,482 | | Credit Impairment Losses | (76,763) | (87,044) | +10,281 | | Asset Impairment Losses | 36,784 | 9,672 | +27,112 | | Operating Profit | 157,082 | 157,071 | +11 | | Total Profit | 155,973 | 156,976 | -1,003 | | Income Tax Expense | 35,094 | 45,785 | -10,691 | | **Net Profit** | **120,879** | **111,191** | **+9,688** | | Net Profit Attributable to Owners of the Parent | 126,889 | 116,796 | +10,093 | | Basic and Diluted Earnings Per Share (yuan/share) | 0.07 | 0.07 | Unchanged | [Notes to the Financial Statements](index=28&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed explanations and breakdowns for various items in the financial statements - The 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 Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[58](index=58&type=chunk) [Basis of Preparation of Financial Statements](index=28&type=section&id=Basis%20of%20Preparation%20of%20Financial%20Statements) The financial statements are prepared in accordance with CAS 32 and HKEX Listing Rules, presented on a going concern basis - The 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 Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[58](index=58&type=chunk) - These financial statements are presented on a going concern basis[58](index=58&type=chunk) [Accounts Receivable and Long-term Receivables](index=28&type=section&id=Accounts%20Receivable%20and%20Long-term%20Receivables) Accounts receivable primarily from construction contracts with 1-3 month credit terms, and long-term receivables from BOT water supply services - Accounts receivable primarily consists of receivables from construction contracting business, with credit terms typically ranging from 1 to 3 months and no interest charged[59](index=59&type=chunk) Accounts Receivable Aging Analysis (RMB thousand yuan) | Aging | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Within 1 year | 5,695,664 | 6,323,895 | | 1 to 2 years | 1,434,845 | 1,246,093 | | 2 to 3 years | 719,675 | 668,913 | | Over 3 years | 837,989 | 687,655 | | **Total** | **8,688,173** | **8,926,556** | | Less: Provision for bad debts on accounts receivable | 1,523,683 | 1,447,583 | | **Total** | **7,164,490** | **7,478,973** | - Long-term receivables primarily represent receivables from build-operate-transfer (BOT) water supply services, which will be settled in installments over a period of 1 to 25 years[61](index=61&type=chunk) [Accounts Payable](index=29&type=section&id=Accounts%20Payable) Accounts payable are non-interest bearing, with the majority due within one year - Accounts payable are non-interest bearing, with the aging period calculated from the date of purchase recognition[63](index=63&type=chunk) Accounts Payable Aging Analysis (RMB thousand yuan) | Aging | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Within 1 year | 20,779,256 | 23,269,785 | | 1 to 2 years | 6,641,392 | 8,134,270 | | 2 to 3 years | 1,785,633 | 1,714,512 | | Over 3 years | 1,569,888 | 1,369,488 | | **Total** | **30,776,169** | **34,488,055** | [Operating Revenue](index=30&type=section&id=Operating%20Revenue) H1 2024 operating revenue was RMB 11.015 billion, primarily from construction engineering contracts in mainland China Operating Revenue Composition (RMB thousand yuan) | Item | Jan-Jun 2024 | Jan-Jun 2023 | | :--- | :--- | :--- | | Principal Business Revenue | 10,808,378 | 14,702,101 | | Other Business Revenue | 206,793 | 246,466 | | **Total** | **11,015,171** | **14,948,567** | - Revenue from contracts with customers primarily originates from building construction engineering, infrastructure construction engineering, and specialized and other construction engineering[67](index=67&type=chunk) - The main operating region is China (excluding Hong Kong, Macau, and Taiwan), with revenue recognized primarily over a period of time[67](index=67&type=chunk) [Income Tax Expense](index=33&type=section&id=Income%20Tax%20Expense) H1 2024 income tax expense was RMB 35.09 million, calculated at 25% of estimated taxable income in China Income Tax Expense Composition (RMB thousand yuan) | Item | Jan-Jun 2024 | Jan-Jun 2023 | | :--- | :--- | :--- | | Current Income Tax Expense | 57,793 | 71,214 | | Deferred Income Tax Expense | (22,699) | (25,429) | | **Total** | **35,094** | **45,785** | - The Group's income tax is accrued at 25% of the estimated taxable income derived within China[73](index=73&type=chunk) [Earnings Per Share](index=33&type=section&id=Earnings%20Per%20Share) Basic and diluted EPS for H1 2024 remained at RMB 0.07, calculated based on net profit attributable to ordinary shareholders Earnings Per Share (yuan/share) | Indicator | Jan-Jun 2024 | Jan-Jun 2023 | | :--- | :--- | :--- | | Basic Earnings Per Share (continuing operations) | 0.07 | 0.07 | - Net profit attributable to ordinary shareholders of the company was **RMB 126,889 thousand**, and the weighted average number of ordinary shares outstanding was 1,761,383,500 shares[76](index=76&type=chunk) - The Group has no dilutive potential ordinary shares, therefore, diluted earnings per share are equal to basic earnings per share[76](index=76&type=chunk) [Dividends](index=34&type=section&id=Dividends) No interim dividend was proposed for the six months ended June 30, 2024 - No interim dividend was proposed for the six months ended June 30, 2024[77](index=77&type=chunk) [Definitions](index=35&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used throughout the report - This section provides definitions for key terms and abbreviations used in the report[78](index=78&type=chunk)[79](index=79&type=chunk) - "The Company" refers to Hebei Construction Group Co., Ltd., whose H shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on December 15, 2017 (stock code: 1727)[78](index=78&type=chunk) - "Reporting Period" refers to the six-month period from January 1, 2024, to June 30, 2024[79](index=79&type=chunk)

Financial Performance - In 2023, the company achieved a revenue of RMB 33.493 billion, a decrease of 16% compared to 2022[24] - The net profit for 2023 was RMB 158 million, down 50% from the previous year[24] - The earnings per share for 2023 was RMB 0.10, reflecting a decline of 47% year-over-year[24] - Total revenue for 2023 was RMB 172.92 billion, a decrease of 38.9% from RMB 282.95 billion in 2022[29] - The company reported a significant drop in residential construction revenue from RMB 90.80 billion in 2022 to RMB 36.26 billion in 2023[29] - The revenue from the housing construction business was RMB 20.491 billion, with a gross margin of 4.2%, compared to RMB 26.204 billion and a gross margin of 3.2% in 2022[85] - The infrastructure construction business revenue decreased by RMB 346 million, attributed to the completion of several large-scale projects during the reporting period[87] - In 2023, the company's total revenue decreased by approximately RMB 6.513 billion to RMB 33.493 billion, primarily due to a decline in revenue from the construction engineering contracting segment by RMB 6.193 billion[84] Contracts and Projects - The total new contracts signed in 2023 amounted to RMB 31.964 billion, compared to RMB 43.732 billion in the previous year[26] - New contracts signed in 2023 totaled RMB 319.64 billion, down 26.9% from RMB 437.32 billion in 2022[40] - The housing construction segment generated RMB 172.92 billion in new contracts, representing 54.10% of total new contracts, down from 64.70% in 2022[40] - Infrastructure construction contracts amounted to RMB 104.36 billion, a decrease from RMB 116.93 billion in 2022[42] - New contracts in the transportation infrastructure sector increased to RMB 22.14 billion in 2023, up from RMB 11.39 billion in 2022[61] - The company secured major contracts including RMB 5.61 billion for the Dongwangcaozhuang renovation project in Hebei Province[46] - The total contract amount for the innovative manufacturing industrial park infrastructure project reached RMB 13.62 billion[54] - The company secured a significant contract for the construction of the Baoding City South Second Ring Road network, valued at RMB 8.81 billion[49] - The company is actively involved in the construction of the Beijing New Airport Administrative Complex with a contract value of RMB 6.35 billion[69] Market and Strategic Focus - The company aims to leverage the recovery of the Chinese economy and the opportunities in the Beijing-Tianjin-Hebei region for future growth[8] - The company is focusing on expanding its infrastructure and public construction projects to enhance revenue stability[42] - The company is focusing on expanding its market presence and enhancing its technological capabilities through new projects and innovations[80] - The company aims to strengthen market development in key cities such as Xiong'an New Area, Shijiazhuang, and Tangshan in 2024[81] - The company is exploring partnerships with local governments to secure more public works contracts, targeting a 30% increase in such projects[199] Awards and Recognition - The company won multiple awards, including 2 national decoration awards and 1 provincial quality engineering award[15] - The company has received 104 provincial-level quality engineering awards, indicating a strong commitment to quality in its projects[77] - The company has been recognized with 34 provincial construction industry technology advancement awards, showcasing its commitment to innovation[77] Research and Development - A total of 191 new patents were applied for in 2023, with 152 patents granted, including 11 invention patents, bringing the total effective patents to 1,238[96] - Research and development expenses for 2023 were RMB 148 million, a decrease of RMB 20 million compared to 2022, indicating stable R&D investment[129] - New technology development initiatives are underway, with an investment of 500 million RMB allocated for R&D in sustainable construction methods[199] Financial Position and Capital Structure - As of December 31, 2023, cash and cash equivalents amounted to approximately RMB 7.689 billion, a decrease of RMB 1.434 billion from the end of 2022[111] - The net value of accounts receivable as of December 31, 2023, was RMB 7.48 billion, a slight decrease of approximately RMB 33.7 million compared to the end of 2022[136] - The company's long-term equity investments as of December 31, 2023, were RMB 501 million, a decrease of RMB 15 million from the end of 2022[113] - The net value of contract assets as of December 31, 2023, was RMB 42.108 billion, a decrease of approximately RMB 809 million due to project progress[116] - The company provided guarantees resulting in contingent liabilities of RMB 678 million as of December 31, 2023[124] - The capital debt ratio improved to 92.1% as of December 31, 2023, down from 97.1% at the end of 2022[139] - The return on assets (ROA) was 0.2% for the year ending December 31, 2023, compared to 0.5% in the previous year[139] - The return on equity (ROE) decreased to 2.6% in 2023 from 5.2% in 2022[139] Human Resources - The total number of full-time employees decreased to 8,128 as of December 31, 2023, down from 9,104 a year earlier[142] Future Outlook - Future outlook indicates a targeted revenue growth of 10% for the next fiscal year, driven by increased infrastructure investments[199] - The company plans to pursue strategic acquisitions to enhance its capabilities, with a budget of 1 billion RMB earmarked for potential targets in the next year[199] - Overall, the company remains committed to its long-term growth strategy, emphasizing innovation and market expansion as key drivers[199]

Financial Performance - In 2023, the company's revenue was RMB 33.493 billion, a decrease of 16% compared to 2022[4] - The net profit for 2023 was RMB 158 million, down 50% from the previous year[4] - Earnings per share for 2023 were RMB 0.10, reflecting a decline of 47% year-over-year[4] - Total operating income for 2023 was RMB 33,492,866,000, down 16.5% from RMB 40,006,018,000 in 2022[35] - The total comprehensive income attributable to the parent company for 2023 was RMB 52,527,000, significantly lower than RMB 301,109,000 in 2022, marking an 82.5% decrease[13] - Total revenue for 2023 reached RMB 33,471,799 thousand, a decrease from RMB 39,969,607 thousand in 2022, representing a decline of approximately 16.4%[40] - The company reported a gross profit margin of approximately 5.36% for 2023, compared to 5.93% in 2022[11] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 64.886 billion, down from RMB 67.632 billion in 2022[6] - Current assets totaled RMB 58.298 billion, a decrease from RMB 61.126 billion in the previous year[6] - The company's total liabilities were RMB 58.658 billion, down from RMB 61.464 billion in 2022[9] - The total liabilities, including accounts payable, were RMB 34,488,055,000 in 2023, down from RMB 36,587,127,000 in 2022[30] - The capital debt ratio improved to 92.1% in 2023 from 97.1% in 2022[110] - Cash and cash equivalents as of December 31, 2023, were approximately RMB 6.528 billion, down from RMB 8.488 billion at the end of 2022[94] Equity and Investments - The total equity attributable to shareholders increased to RMB 6.047 billion from RMB 5.995 billion in 2022[9] - Long-term equity investments decreased by RMB 15 million to RMB 501 million as of December 31, 2023[98] - The company successfully acquired 51% of Zhongwei Construction Engineering Co., Ltd. for RMB 51.51 million, with the agreement signed on March 19, 2024[112] Revenue Sources - Revenue from housing construction projects was RMB 20,490,784 thousand in 2023, down from RMB 26,203,970 thousand in 2022, a decrease of about 22.0%[40] - Infrastructure construction revenue was RMB 9,683,182 thousand in 2023, compared to RMB 10,029,152 thousand in 2022, reflecting a decline of approximately 3.4%[40] - The company recognized revenue of RMB 4,829,215 thousand from contract liabilities in 2023, an increase from RMB 4,594,190 thousand in 2022, representing a growth of about 5.1%[44] Expenses - Research and development expenses for 2023 were RMB 148 million, slightly down from RMB 150 million in 2022[11] - Management expenses for 2023 were RMB 528 million, a reduction of RMB 43 million from 2022, primarily due to lower salary expenses[84] - The company’s income tax expenses for 2023 were RMB 833,807,000, an increase of 17.4% from RMB 709,929,000 in 2022[31] Contracts and Projects - The new contract amount for 2023 was RMB 31.964 billion, a decrease of 27.0% from RMB 43.732 billion in 2022[65] - The uncompleted contract amount as of 2023 was RMB 59.849 billion, down from RMB 69.722 billion in the previous year, representing a decline of 14.5%[65] - The new contracts in the housing construction segment amounted to RMB 17.292 billion in 2023, a significant drop of 38.9% from RMB 28.295 billion in 2022[69] - The infrastructure construction segment secured new contracts worth RMB 10.436 billion, down 10.5% from RMB 11.693 billion in 2022[71] Future Outlook and Strategy - The company anticipates 2024 to be a critical year for achieving its "14th Five-Year Plan" goals, focusing on healthy development amidst global economic challenges[113] - The company aims to enhance market development in key cities such as Xiong'an New Area, Shijiazhuang, and Tangshan in 2024[124] - The company will continue to focus on safety production and improve project site management standards[124] - The company emphasizes the importance of innovation and efficiency improvement in its operations[125] Governance and Compliance - The company has adhered to all corporate governance codes and regulations as of December 31, 2023[127] - The company has appointed Ernst & Young as its auditor for the financial year ending December 31, 2023[130] Dividends - The company plans not to distribute dividends for the year ending December 31, 2023[63] - The board recommends not to declare a final dividend for the year ending December 31, 2023[125]

Financial Performance - For the period from January 1, 2023, to June 30, 2023, the company reported a revenue of RMB 1,341,190,000, representing an increase from RMB 1,322,986,000 in the same period of 2022, reflecting a growth of approximately 1.4%[27] - The company’s cash flow from operating activities for the first half of 2023 was RMB 1,357,694,000, compared to RMB 1,335,809,000 in the same period of 2022, showing a slight increase[27] - Total revenue for the first half of 2023 was RMB 149.49 billion, a decrease of 9.9% compared to RMB 165.00 billion in the same period of 2022[198] - Net profit for the first half of 2023 was RMB 1.11 billion, down 27.9% from RMB 1.54 billion in the same period of 2022[198] - Earnings per share for the first half of 2023 were RMB 0.07, a decrease of RMB 0.02 compared to RMB 0.09 in the same period of 2022[198] Liabilities and Borrowings - The company’s fixed-rate long-term borrowings increased to RMB 1,607,008,000 as of June 30, 2023, compared to RMB 1,480,547,000 at the end of 2022, marking an increase of about 8.6%[14] - The company’s total liabilities increased to RMB 1,515,885,000 as of June 30, 2023, compared to RMB 1,435,906,000 at the end of 2022, reflecting a growth of approximately 5.6%[14] - As of June 30, 2023, the group provided guarantees for bank loans amounting to RMB 698,191,000, a decrease from RMB 718,941,000 as of December 31, 2022[1] Related Party Transactions - The company provided engineering construction services to related parties amounting to RMB 40,119,000 during the first half of 2023, up from RMB 22,573,000 in the same period of 2022, indicating an increase of approximately 77.5%[35] - The company’s related party transactions included significant contracts with Baoding Zhicheng Real Estate Development Co., amounting to RMB 14,752,000 in the first half of 2023, compared to RMB 7,058,000 in the same period of 2022, indicating a growth of approximately 108.5%[36] - The total receivables from related parties as of June 30, 2023, amounted to RMB 181,198,000, an increase from RMB 156,049,000 as of December 31, 2022[143] Project and Contract Updates - The company has ongoing projects in various sectors, including construction and real estate, which are expected to drive future revenue growth[36] - The company has ongoing contracts in various projects, including RMB 7.68 billion for the construction of the Second Hospital of Hebei Medical University and RMB 4.32 billion for the Cangzhou Vocational Education Park project[166] - The company has ongoing projects with a total contract value of RMB 9.54 billion for the Botou Longtun New City renovation project and RMB 6.12 billion for the Hengshui Yongjin Peninsula project, both located in Hebei Province[78] Technology and Innovation - The company received 2 awards for technological advancement from the Hebei Provincial Government in 2022, including key research on concrete damage mechanisms and frost prevention technology for cold region traffic tunnels[67] - As of June 30, 2023, the company has granted 49 new patents, including 2 invention patents, and filed 62 new patent applications, with 13 being invention patents[69] - The group achieved notable progress in technology development and intellectual property applications during the first half of 2023[133] Management and Governance - The company’s board approved the financial statements on August 28, 2023, indicating a commitment to transparency and governance[167] - The company is committed to maintaining high corporate governance standards as outlined in the Corporate Governance Code[169] - The company has appointed new directors and supervisors effective June 26, 2023, to strengthen its leadership team[173] Market and Strategic Focus - The company is actively exploring market expansion opportunities and new technology developments to enhance its competitive position in the industry[36] - The company is focused on expanding its market presence through strategic projects in Hebei Province and Inner Mongolia, enhancing its operational footprint[166] - The company continues to focus on municipal and transportation infrastructure projects, which are primarily contracted by local governments[193]