[Announcement Information](index=1&type=section&id=%E5%85%AC%E5%91%8A%E4%BF%A1%E6%81%AF) This section provides fundamental information about Hebei Construction Group Corporation Limited, including its registration, listing details, and the composition of its Board of Directors [Company Basic Information](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) Hebei Construction Group Corporation Limited (Stock Code: 1727), registered in the PRC with H shares listed on HKEX, announces its unaudited consolidated interim results for the six months ended June 30, 2025 - Company name: Hebei Construction Group Corporation Limited, stock code: **1727**[2](index=2&type=chunk) - The company was incorporated in the People's Republic of China, and its H shares were listed on the Main Board of the Hong Kong Stock Exchange on December 15, 2017[2](index=2&type=chunk)[97](index=97&type=chunk) - This announcement presents the unaudited consolidated interim results for the six months ended June 30, 2025[2](index=2&type=chunk) [Board of Directors](index=1&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E6%88%90%E5%91%98) As of the announcement date, the Board comprises 5 executive directors, 1 non-executive director, and 3 independent non-executive directors - Executive Directors include Mr. Li Baozhong, Mr. Shang Jinfeng, Mr. Zhao Wensheng, Mr. Tian Wei, and Mr. Zhang Wenzhong[4](index=4&type=chunk) - Non-executive Director is Mr. Li Baoyuan[4](index=4&type=chunk) - Independent Non-executive Directors include Ms. Shen Lifeng, Ms. Chen Xin, and Mr. Chen Yisheng[4](index=4&type=chunk) [Financial Highlights](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) This section summarizes the company's key financial performance for the first half of 2025, highlighting significant year-on-year changes in revenue, net profit, and earnings per share [Key Financial Data for H1 2025](index=2&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E9%97%9C%E9%8D%B5%E8%B2%A1%E5%8B%99%E6%95%B8%E6%93%9A) For the six months ended June 30, 2025, the company's revenue, net profit, and EPS significantly decreased year-on-year by 28%, 21%, and 14% respectively 2025 H1 Financial Highlights (Year-on-Year) | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 7,908,202 | 11,015,171 | Down 28.21% | | Net Profit | 95,244 | 120,879 | Down 21.20% | | Earnings Per Share (RMB/share) | 0.06 | 0.07 | Down 14.29% | [Business Review](index=3&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) This section provides an overview of the company's core construction businesses, including new contract performance, segment distribution, and representative projects across various categories [Company Business Overview](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E6%A5%AD%E5%8B%99%E6%A6%82%E8%A7%88) The company is a leading non-state-owned construction group in China, with main revenue from building construction, infrastructure construction, and specialized and other construction engineering; new contracts in H1 2025 decreased by 42.41% to RMB 8.039 billion - The company is a leading non-state-owned construction group in China, primarily engaged in construction engineering contracting, including building construction, infrastructure construction, and specialized and other construction engineering contracting businesses[6](index=6&type=chunk)[8](index=8&type=chunk) 2025 H1 New Contract Value Overview | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | New Contract Value | 8.039 | 13.960 | Down 42.41% | New Contract Value Distribution by Region and Segment | Category | 2025 H1 Share | 2024 H1 Share | | :--- | :--- | :--- | | **By Region** | | | | Beijing-Tianjin-Hebei | 79.71% | 88.91% | | Others | 20.29% | 11.09% | | **By Segment** | | | | Building Construction Engineering | 40.38% | 55.98% | | Infrastructure Construction Engineering | 39.05% | 18.77% | | Specialized and Other Construction Engineering | 20.57% | 25.25% | [Building Construction Business](index=4&type=section&id=%E6%88%BF%E5%B1%8B%E5%BB%BA%E7%AF%89%E6%A5%AD%E5%8B%99) This business primarily provides general contracting services for residential, public, industrial, and commercial building projects, with new contracts in H1 2025 significantly down by 58.46% to RMB 3.246 billion - The company undertakes most building construction projects as a general contractor, responsible for all major aspects including construction, foundation engineering, curtain walls, decoration, and fire protection engineering[9](index=9&type=chunk) Building Construction Business New Contract Value | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | New Contract Value | 3.246 | 7.815 | Down 58.46% | Building Construction Business New Contract Value Distribution by Segment | Segment | 2025 H1 Share | 2024 H1 Share | | :--- | :--- | :--- | | Residential Building Engineering | 35.85% | 34.54% | | Public Building Engineering | 51.27% | 46.87% | | Industrial Building Engineering | 12.88% | 18.59% | | Commercial Building Engineering | 0.00% | 0.00% | [Infrastructure Construction Business](index=5&type=section&id=%E5%9F%BA%E7%A4%8E%E8%A8%AD%E6%96%BD%E5%BB%BA%E8%A8%AD%E6%A5%AD%E5%8B%99) This business primarily offers general contracting services for municipal and transportation infrastructure projects, with new contracts in H1 2025 increasing by 19.81% to RMB 3.139 billion - Business scope includes water supply and treatment, gas and heating, urban pipelines, landscaping, roads, bridges, and airport runway facilities[11](index=11&type=chunk) - Major clients are local governments, and the company undertakes most of these construction projects as a general contractor[11](index=11&type=chunk) Infrastructure Construction Business New Contract Value | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | New Contract Value | 3.139 | 2.620 | Up 19.81% | Infrastructure Construction Business New Contract Value Distribution by Segment | Segment | 2025 H1 Share | 2024 H1 Share | | :--- | :--- | :--- | | Municipal Infrastructure Construction Engineering | 77.22% | 62.43% | | Transportation Infrastructure Construction Engineering | 22.78% | 37.57% | [Specialized and Other Construction Engineering Contracting Business](index=6&type=section&id=%E5%B0%88%E6%A5%AD%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BB%BA%E7%AF%89%E5%B7%A5%E7%A8%8B%E6%89%BF%E5%8C%85%E6%A5%AD%E5%8B%99) This business leverages professional qualifications in M&E installation, steel structures, and decoration, with new contracts in H1 2025 decreasing by 53.09% to RMB 1.654 billion, but with significant growth in new energy and water conservancy - Business scope includes construction engineering contracting projects in specialized fields such as M&E installation, steel structure construction, and decoration and renovation[13](index=13&type=chunk) Specialized and Other Construction Engineering Contracting Business New Contract Value | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | New Contract Value | 1.654 | 3.525 | Down 53.09% | Specialized and Other Construction Engineering Contracting Business New Contract Value Distribution by Segment | Segment | 2025 H1 Share | 2024 H1 Share | | :--- | :--- | :--- | | M&E Installation | 6.17% | 25.20% | | Steel Structure | 0.66% | 0.17% | | Decoration and Renovation | 12.52% | 5.25% | | New Energy | 55.99% | – | | Water Conservancy and Hydropower | 12.33% | – | | Other Construction Businesses | 12.33% | 69.38% | [Representative Engineering Projects](index=7&type=section&id=%E4%BB%A3%E8%A1%A8%E6%80%A7%E5%B7%A5%E7%A8%8B%E9%A0%85%E7%9B%AE) The report lists representative new, ongoing, and completed projects in H1 2025 across various categories, showcasing the company's project execution capabilities in different regions and sectors - Representative new contracts include transportation infrastructure projects (e.g., S333 Haixing to Shunping Highway Anping Section Reconstruction Project), municipal infrastructure projects (e.g., Flood Control and Drainage Project – Baoding City Pipeline Network and Supporting Municipal Infrastructure Project), residential building projects, and new energy projects (e.g., Antai (Baoding) New Energy Technology Co., Ltd. New 100MW/200MWh Independent Energy Storage Power Station Project)[15](index=15&type=chunk)[17](index=17&type=chunk) - Representative ongoing projects cover public buildings (e.g., China Academy of Chinese Medical Sciences Guang'anmen Hospital Baoding Hospital EPC Project), residential buildings (e.g., Huangshanmudian Liangmachang Resettlement Housing Project in Pingfang Township, Chaoyang District), commercial buildings, industrial buildings, transportation infrastructure construction, municipal infrastructure, and specialized construction businesses like M&E installation and decoration[18](index=18&type=chunk)[20](index=20&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) - Representative completed projects include public buildings (e.g., Knowledge City ZSCXN-B3–2 (Medical City) Project), residential buildings (e.g., Botou City Longtun New City Urban Village Renovation Phase II Project), commercial buildings, industrial buildings, and transportation infrastructure construction (e.g., Chongqing Jiangbei International Airport T3B Terminal and Fourth Runway Project Airfield Engineering)[28](index=28&type=chunk) [Scientific Research Achievements and Awards](index=14&type=section&id=%E7%A7%91%E7%A0%94%E6%88%90%E6%9E%9C%E5%8F%8A%E7%8D%8E%E9%A0%85) This section highlights the company's scientific research progress and accolades in the first half of 2025, including R&D investment, technology platform development, and intellectual property achievements [H1 2025 Scientific Research Progress](index=14&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E7%A7%91%E7%A0%94%E9%80%B2%E5%B1%95) In H1 2025, the company achieved notable progress in R&D projects, technology platform development, and intellectual property, accumulating **RMB 347 million** in R&D expenses for 2024 and obtaining **35 new patents** - Awarded **19 provincial construction industry scientific and technological progress awards**, **12 new technology application demonstration projects**, and **2 green construction technology demonstration projects**[29](index=29&type=chunk) - **9 achievements** were evaluated as domestically leading, **4 scientific and technological achievements** passed provincial construction association acceptance, and **3 achievements** were evaluated as domestically leading[29](index=29&type=chunk) - Accumulated **RMB 347 million** in R&D expenses for **300 enterprise-level scientific research projects** in 2024[29](index=29&type=chunk) - As of the end of June 2025, **35 new patents** were granted (including **8 invention patents**), and **21 new patent applications** were filed[29](index=29&type=chunk) [Future Outlook](index=15&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) This section outlines the company's strategic priorities and key initiatives for the second half of the year, focusing on sustainable development and enhancing shareholder value [Key Tasks for H2](index=15&type=section&id=%E4%B8%8B%E5%8D%8A%E5%B9%B4%E9%87%8D%E9%BB%9E%E5%B7%A5%E4%BD%9C) The company will continue to focus on building quality platforms, stimulating organizational vitality, improving project quality, and strengthening safety management in H2 to achieve sustainable development and shareholder returns - Continuously build high-quality enterprise platforms, leveraging the Group's **73 years of accumulated brand reputation, qualifications, performance, financial credit, and talent reserves**[31](index=31&type=chunk) - Continue to activate the vitality of all organizational levels, encouraging innovation and entrepreneurship across the industry value chain to identify new economic growth points[31](index=31&type=chunk) - Continuously improve project quality, deeply carry out special governance for common quality issues, promote quality management standardization, and actively create high-quality projects at all levels[32](index=32&type=chunk) - Maintain constant vigilance regarding production safety, continuously strengthen safety education and publicity, and ensure stable safety production throughout the year by strictly controlling the process[32](index=32&type=chunk) [Financial Performance Analysis](index=16&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E5%88%86%E6%9E%90) This section provides a detailed analysis of the company's financial performance for the first half of 2025, covering revenue, costs, expenses, and profit drivers [Revenue, Cost of Sales, and Gross Profit](index=16&type=section&id=%E7%87%9F%E6%A5%AD%E6%94%B6%E5%85%A5%E3%80%81%E7%87%9F%E6%A5%AD%E6%88%90%E6%9C%AC%E5%8F%8A%E6%AF%9B%E5%88%A9) H1 2025 revenue was **RMB 7.908 billion**, a decrease of approximately **RMB 3.107 billion (28%)** year-on-year, primarily due to reduced revenue from the construction engineering segment, project completions, and fewer new contracts - H1 2025 revenue was **RMB 7.908 billion**, a decrease of approximately **RMB 3.107 billion**, representing a **28% decline**[34](index=34&type=chunk)[5](index=5&type=chunk) - The decrease in revenue was mainly due to a **RMB 3.174 billion** decline in revenue from the construction engineering contracting segment, attributed to the completion of some large projects and a decrease in the contract value and number of newly undertaken projects[34](index=34&type=chunk)[35](index=35&type=chunk) Operating Performance of Construction Engineering Contracting Segment | 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** | [Administrative Expenses and R&D Expenses](index=17&type=section&id=%E7%AE%A1%E7%90%86%E8%B2%BB%E7%94%A8%E8%88%87%E7%A0%94%E7%99%BC%E8%B2%BB%E7%94%A8) H1 2025 administrative expenses decreased by **RMB 89.77 million** to **RMB 122 million**, primarily due to reduced staff costs; R&D expenses decreased by **RMB 5.25 million** to **RMB 27.97 million**, mainly due to fewer new projects - Administrative expenses were **RMB 122 million**, a decrease of **RMB 89.77 million** compared to H1 2024, mainly due to reduced staff salaries, welfare, and social insurance contributions[37](index=37&type=chunk) - R&D expenses were **RMB 27.97 million**, a decrease of **RMB 5.25 million** compared to H1 2024, primarily due to fewer new projects initiated[38](index=38&type=chunk) [Credit Impairment Losses and Asset Impairment Losses](index=17&type=section&id=%E4%BF%A1%E7%94%A8%E6%B8%9B%E5%80%BC%E6%90%8D%E5%A4%B1%E8%88%87%E8%B3%87%E7%94%A2%E6%B8%9B%E5%80%BC%E6%90%8D%E5%A4%B1) H1 2025 credit impairment losses increased by **RMB 15 million** to **RMB 92 million** due to bad debt provisions for high-risk clients; asset impairment losses reversed **RMB 68 million**, mainly due to decreased original value of contract assets from lower revenue - Credit impairment losses were **RMB 92 million**, an increase of **RMB 15 million** compared to H1 2024, mainly due to the Group's individual provision for bad debts for clients with significant default risks based on their operating conditions[39](index=39&type=chunk) - Asset impairment losses reversed **RMB 68 million**, compared to a reversal of **RMB 37 million** in H1 2024, primarily due to a decrease in the original value of contract assets resulting from lower revenue in the current period, leading to a reduction in newly provided bad debt provisions for contract assets[41](index=41&type=chunk) [Investment Income and Income Tax Expense](index=18&type=section&id=%E6%8A%95%E8%B3%87%E6%94%B6%E7%9B%8A%E8%88%87%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) H1 2025 investment income improved to **RMB 0.69 million** from a loss of **RMB 1.9 million** in H1 2024, driven by continuous profitability of associates and joint ventures; income tax expense decreased by **RMB 7 million** to **RMB 28 million** due to lower pre-tax profit - Investment income was **RMB 0.69 million**, compared to an investment loss of **RMB 1.9 million** in H1 2024, mainly due to the continuous profitability of strategically invested associates and joint ventures[42](index=42&type=chunk) - Income tax expense was **RMB 28 million**, a decrease of **RMB 7 million** compared to the prior year, primarily due to a reduction in pre-tax profit for the current period[43](index=43&type=chunk) [Net Profit](index=18&type=section&id=%E6%B7%A8%E5%88%A9%E6%BD%A4) Overall, H1 2025 net profit was **RMB 95 million**, a decrease of approximately **RMB 26 million** year-on-year - H1 2025 net profit was **RMB 95 million**, a decrease of approximately **RMB 26 million** compared to the prior year[44](index=44&type=chunk) [Liquidity, Financial Resources, and Capital Structure](index=18&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E6%94%BF%E4%BE%86%E6%BA%90%E5%92%8C%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) This section analyzes the company's cash position, funding strategies, changes in receivables and payables, and key financial ratios, providing insights into its financial health and capital management [Cash and Cash Equivalents and Financial Policy](index=18&type=section&id=%E8%B2%A8%E5%B9%A3%E8%B3%87%E9%87%91%E8%88%87%E8%B2%A1%E5%8B%99%E6%94%BF%E7%AD%96) As of June 30, 2025, cash and cash equivalents were **RMB 4.315 billion**, a decrease of **RMB 1.435 billion** from year-end 2024, mainly due to net cash outflow from operating activities; the company will fund operations through operating cash and interest-bearing borrowings - As of June 30, 2025, cash and cash equivalents were **RMB 4.315 billion**, a decrease of **RMB 1.435 billion** from year-end 2024, primarily due to net cash outflow from operating activities[46](index=46&type=chunk) - The company will fund its operations through cash generated from operating activities and interest-bearing borrowings, striving to maintain an optimal liquidity level to meet working capital requirements[47](index=47&type=chunk) [Receivables and Contract Assets/Liabilities](index=19&type=section&id=%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E8%88%87%E5%90%88%E5%90%8C%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5) Receivables financing decreased by **RMB 77 million** due to a preference for bank deposits; net accounts receivable decreased by **RMB 275 million**; net contract assets decreased by **RMB 1.674 billion**, mainly due to project settlements based on performance progress - Receivables financing was **RMB 29 million**, a decrease of **RMB 77 million** compared to year-end 2024, mainly because the Group preferred bank deposit settlements over bank acceptance bills issued by real estate enterprises during the reporting period[49](index=49&type=chunk) - Net accounts receivable was **RMB 7.052 billion**, a decrease of approximately **RMB 275 million** compared to year-end 2024[50](index=50&type=chunk) - Net contract assets were **RMB 39.467 billion**, a decrease of approximately **RMB 1.674 billion** compared to year-end 2024, primarily due to engineering settlements for related construction contracts based on performance progress[52](index=52&type=chunk) [Borrowings and Accounts Payable](index=20&type=section&id=%E5%80%9F%E8%B2%B8%E8%88%87%E6%87%89%E4%BB%98%E8%B3%B4%E6%AC%BE) As of June 30, 2025, total interest-bearing borrowings were approximately **RMB 5.920 billion**, a slight decrease; accounts payable decreased by **RMB 2.883 billion** due to reduced project volume; bills payable increased by **RMB 432 million** due to adjusted payment structure - As of June 30, 2025, interest-bearing borrowings were approximately **RMB 5.920 billion** (December 31, 2024: approximately **RMB 6.056 billion**)[54](index=54&type=chunk) - Accounts payable balance was **RMB 29.464 billion**, a decrease of **RMB 2.883 billion (9%)** compared to year-end 2024, mainly due to a decrease in procurement volume resulting from reduced project volume in the current period[55](index=55&type=chunk) - Bills payable balance increased by **RMB 432 million** compared to the prior year-end, primarily because the Group diversified its payment methods, adjusted its payment structure, and increased the proportion of bill payments[55](index=55&type=chunk) [Financial Ratios](index=21&type=section&id=%E8%B2%A1%E5%8B%99%E6%AF%94%E7%8E%87) As of June 30, 2025, both current and quick ratios remained at **1.10x**; the gearing ratio decreased from **94.8%** at year-end 2024 to **91.5%**; return on assets and return on equity both declined Key Financial Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio (x) | 1.10 | 1.10 | | Quick Ratio (x) | 1.10 | 1.10 | | Gearing Ratio | 91.5% | 94.8% | | Return on Assets (Non-annualized) | 0.2% | 0.3% | | Return on Equity (Non-annualized) | 1.5% | 2.5% | [Other Information](index=21&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers other important aspects of the company's operations, including material events, contingent liabilities, exchange rate risks, subsequent events, dividend policy, and corporate governance practices [Material Matters and Contingent Liabilities](index=21&type=section&id=%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85%E8%88%87%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) During the reporting period, the company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures, nor any significant investments; as of June 30, 2025, contingent liabilities from pending litigation or arbitration amounted to **RMB 35 million** - During the reporting period, the company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[59](index=59&type=chunk) - As of June 30, 2025, the company held no significant investments[60](index=60&type=chunk) - As of June 30, 2025, the company's contingent liabilities arising from pending litigation or arbitration amounted to **RMB 35 million**[61](index=61&type=chunk) [Exchange Rate Risk and Subsequent Events](index=22&type=section&id=%E5%8C%AF%E7%8E%87%E9%A2%A8%E9%9A%AA%E8%88%87%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) The company's business and bank loans are primarily denominated in RMB, posing no significant foreign exchange risk, and currently, there is no hedging policy; as of the announcement date, there are no material subsequent events - The company's vast majority of business and all bank loans are transacted in RMB, thus posing no significant foreign exchange fluctuation risk, and currently, there is no hedging policy against foreign exchange risk[63](index=63&type=chunk) - As of the date of this announcement, the company has no material subsequent events[64](index=64&type=chunk) [Dividends and Corporate Governance](index=22&type=section&id=%E8%82%A1%E6%81%AF%E8%88%87%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Board does not recommend an interim dividend for H1 2025; the company is committed to maintaining high corporate governance standards, with an effective framework and compliance with the Corporate Governance Code - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[65](index=65&type=chunk)[94](index=94&type=chunk) - The company is committed to achieving and maintaining a high level of corporate governance, has established an effective corporate governance structure, and strives to continuously improve its internal controls and corporate governance mechanisms[66](index=66&type=chunk) - During the reporting period, the company complied with all code provisions of the Corporate Governance Code[66](index=66&type=chunk) - The Audit Committee has reviewed and confirmed the Group's interim results announcement and unaudited interim financial statements for the six months ended June 30, 2025[69](index=69&type=chunk) [Notes to Interim Consolidated Financial Statements](index=24&type=section&id=%E4%B8%AD%E6%9C%9F%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes to the interim consolidated financial statements, including the balance sheet, income statement, and specific accounting policies and analyses [Interim Consolidated Balance Sheet](index=24&type=section&id=%E4%B8%AD%E6%9C%9F%E5%90%88%E4%BD%B5%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) As of June 30, 2025, total assets were **RMB 58.379 billion**, a decrease of approximately **RMB 3.456 billion** from year-end 2024; both current assets and liabilities decreased, while total equity attributable to owners slightly increased Summary of Interim Consolidated Balance Sheet | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Total Current Assets | 51,974,532 | 55,394,965 | (3,420,433) | | Total Non-current Assets | 6,404,694 | 6,440,070 | (35,376) | | **Total Assets** | **58,379,226** | **61,835,035** | **(3,455,809)** | | Total Current Liabilities | 48,916,624 | 52,260,750 | (3,344,126) | | Total Non-current Liabilities | 2,990,177 | 3,184,339 | (194,162) | | **Total Liabilities** | **51,906,801** | **55,445,089** | **(3,538,288)** | | Total Equity Attributable to Owners of Parent | 6,313,679 | 6,221,833 | 91,846 | | Non-controlling Interests | 158,746 | 168,113 | (9,367) | | **Total Equity** | **6,472,425** | **6,389,946** | **82,479** | [Interim Consolidated Income Statement](index=26&type=section&id=%E4%B8%AD%E6%9C%9F%E5%90%88%E4%BD%B5%E5%88%A9%E6%BD%A4%E8%A1%A8) H1 2025 operating revenue was **RMB 7.908 billion**, net profit was **RMB 95.24 million**, net profit attributable to owners was **RMB 104.61 million**, and basic EPS was **RMB 0.06**, all showing year-on-year decreases Summary of Interim Consolidated Income Statement | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Year-on-Year Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Operating Revenue | 7,908,202 | 11,015,171 | (3,106,969) | | Cost of Sales | 7,403,489 | 10,365,625 | (2,962,136) | | Operating Profit | 122,653 | 157,082 | (34,429) | | Total Profit | 123,188 | 155,973 | (32,785) | | Income Tax Expense | 27,944 | 35,094 | (7,150) | | **Net Profit** | **95,244** | **120,879** | **(25,635)** | | Net Profit Attributable to Owners of Parent | 104,611 | 126,889 | (22,278) | | Basic and Diluted Earnings Per Share (RMB/share) | 0.06 | 0.07 | (0.01) | [Notes to Financial Statements](index=28&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) The notes detail the basis of financial statement preparation, aging analysis of accounts and long-term receivables/payables, revenue composition and recognition, and calculation methods for income tax and EPS - 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**[77](index=77&type=chunk) Aging Analysis of Accounts Receivable | 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 (before impairment provision)** | **8,758,465** | **8,939,615** | | Less: Provision for bad debts on accounts receivable | 1,706,471 | 1,612,871 | | **Total (Net Value)** | **7,051,994** | **7,326,744** | Aging Analysis of Accounts Payable | 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** | Composition of Operating Revenue | 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 is primarily recognized over time (construction services, sewage and reclaimed water treatment), with some recognized at a point in time (sale of goods)[86](index=86&type=chunk)[87](index=87&type=chunk) [Definitions](index=35&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms and abbreviations used in the report, including currencies, company entities, accounting standards, regulatory bodies, and share types, to ensure clear understanding of the report content [Definitions of Key Terms](index=35&type=section&id=%E9%97%9C%E9%8D%B5%E8%A1%93%E8%AA%9E%E5%AE%9A%E7%BE%A9) This section provides definitions for key terms and abbreviations used in the report, including currencies, company entities, accounting standards, regulatory bodies, and share types, to ensure clear understanding of the report content - Currencies used in the report include **Hong Kong Dollars (HKD)**, the lawful currency of Hong Kong, and **Renminbi (RMB)**, the lawful currency of the PRC[96](index=96&type=chunk)[98](index=98&type=chunk) - Definitions are provided for the Company (Hebei Construction Group Corporation Limited), the Group (the Company and its subsidiaries), H shares, and other entities and share types[97](index=97&type=chunk) - References are made to **China Accounting Standards for Business Enterprises**, the **Listing Rules**, the **Corporate Governance Code**, and other regulatory and accounting standards[97](index=97&type=chunk)[98](index=98&type=chunk)

格隆汇8月13日丨河北建设(01727.HK)公告，董事会会议将于2025年8月25日(星期一)举行，藉以(其中包 括)考虑及批准公司及其附属公司截至2025年6月30日止6个月中期业绩及其发布，并考虑建议派发中期 股息(如有)。 河北建设(01727.HK)拟8月25日举行董事会会议以审批中期业绩 河北建设(01727.HK)建议取消监事会 相关事件 ...

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]