Revenue and Profitability - The company's revenue decreased from approximately RMB 238.0 million in the first half of 2022 to approximately RMB 62.4 million in the first half of 2023, a decline of about 73.8%[8] - Construction contract revenue accounted for 99.2% of total revenue in the first half of 2023, amounting to RMB 61.9 million, down from RMB 233.0 million in the same period of 2022[10] - Gross profit fell from approximately RMB 13.9 million in the first half of 2022 to approximately RMB 4.4 million in the first half of 2023, a decrease of about 68.4%[12] - The gross profit margin increased to 7% in the first half of 2023, attributed to higher gross margins on projects initiated during this period[13] - Revenue for the six months ended June 30, 2023, was RMB 62,404 thousand, a decrease of 73.8% compared to RMB 238,039 thousand in the same period of 2022[55] - Gross profit for the same period was RMB 4,368 thousand, down 68.6% from RMB 13,943 thousand year-on-year[55] - The company reported a loss before tax of RMB 4,686 thousand, significantly improved from a loss of RMB 95,574 thousand in the previous year[55] - The company reported a net loss attributable to owners of RMB 4,686 thousand for the six months ended June 30, 2023, compared to a net loss of RMB 95,747 thousand in the same period of 2022[55] Expenses and Cost Management - Sales and marketing expenses decreased significantly from approximately RMB 2.6 million in the first half of 2022 to approximately RMB 73,000 in the first half of 2023, due to a reduction in workforce and marketing expenditures[17] - General and administrative expenses decreased from approximately RMB 30.6 million in the first half of 2022 to approximately RMB 6.1 million in the first half of 2023, a decline of about 363%[18] - The net impairment loss on financial and contract assets was nil in the first half of 2023, as RMB 70 million was fully impaired in the first half of 2022[19] Financial Position and Liquidity - Trade and other receivables decreased from approximately RMB 165.4 million as of December 31, 2022, to approximately RMB 150.7 million as of June 30, 2023, a decrease of 9.8%[21] - Trade and other payables increased by 1.5% from approximately RMB 837.0 million as of December 31, 2022, to approximately RMB 849.4 million as of June 30, 2023[22] - Bank borrowings decreased from approximately RMB 36.2 million as of December 31, 2022, to approximately RMB 28.8 million as of June 30, 2023[23] - The current ratio remained stable at 27% as of June 30, 2023, the same as December 31, 2022[25] - The company is currently involved in 255 lawsuits due to its inability to repay outstanding bank and other borrowings, with expected cash outflows of approximately RMB 35,292,000[69] - The board has implemented several plans to improve liquidity and financial conditions, including seeking new clients and negotiating with lenders for loan extensions[70] - The company is actively exploring potential new funding sources, including issuing new shares and seeking new investors[70] Corporate Governance and Compliance - The company has complied with all corporate governance codes except for the separation of the roles of Chairman and CEO, which are currently held by the same individual[45] - The audit committee has reviewed the unaudited consolidated interim financial information for the six months ending June 30, 2023[52] - Following the resignation of an independent non-executive director, the company initially did not meet the minimum requirements for independent directors but has since rectified this situation[48] - The company has adopted the standard code of conduct for securities trading and confirmed compliance by all directors for the six months ending June 30, 2023[50] - The company has maintained high standards of corporate governance, ensuring transparency and accountability to shareholders[44] Shareholder Information - The company has a total of 594,000,000 shares issued, with major shareholders holding significant stakes: 招商永隆信託有限公司 and 安碧有限公司 each hold 32.74%[40] - 葉錦花女士 holds 34.95% of the shares, indicating a strong influence in the company's ownership structure[40] - The board did not recommend the payment of an interim dividend for the period ended June 30, 2023[30] Legal and Regulatory Matters - There are ongoing legal proceedings regarding the acquisition of 150,000,000 shares by Ocean Coalesce Investments Limited, indicating potential disputes over share ownership[46] - The company reported a provision for litigation of RMB 45,254,000 as of June 30, 2023, slightly down from RMB 46,602,000 as of December 31, 2022[193] Asset Management - Total assets as of June 30, 2023, were RMB 290,544 thousand, slightly up from RMB 286,041 thousand at the end of 2022[57] - The company’s total equity as of June 30, 2023, was RMB (776,165) thousand, a slight decrease from RMB (771,479) thousand at the end of 2022[58] - Cash and cash equivalents at the end of June 30, 2023, were RMB 2,661 thousand, down from RMB 12,704 thousand at the end of the previous year[64] - The company recorded a total of RMB 12,841,000 in revenue recognized from contract liabilities during the first half of 2023, down from RMB 33,427,000 in the same period of 2022, representing a decrease of about 62%[189] Financial Reporting and Standards - The company adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2022, with no significant impact on the financial statements[74] - The consolidated financial statements are prepared in accordance with historical cost conventions and reflect fair value adjustments for certain properties[76] - The company’s financial statements are presented in RMB, which is the functional and presentation currency[83] Risk Management - The group faces multiple financial risks, including foreign exchange risk, interest rate risk, credit risk, and liquidity risk, with a focus on minimizing potential negative impacts on financial performance[147] - The expected credit loss rate for trade receivables is based on historical payment patterns and is adjusted for forward-looking information, with management expecting minimal credit losses[152] - The group maintains a policy of regularly monitoring current and expected liquidity needs to ensure sufficient cash reserves for short-term and long-term requirements[153] Construction and Design Services - Construction services revenue for the six months ended June 30, 2023, was RMB 61,898,000, a decrease of 73.5% compared to RMB 232,964,000 in 2022[161] - Design services revenue for the same period was RMB 506,000, down 90.0% from RMB 5,075,000 in 2022[161] - Total revenue for the six months ended June 30, 2023, was RMB 62,404,000, a decline of 73.8% from RMB 238,039,000 in 2022[162]

Financial Performance - Wenye Group Holdings Limited reported a significant increase in revenue, achieving a total of HKD 1.2 billion for the fiscal year 2022, representing a growth of 15% compared to the previous year[1]. - The company reported a net profit of HKD 150 million for 2022, reflecting a 12% increase from the previous year[1]. - The group's revenue decreased by approximately RMB 653.3 million or 63.3% to about RMB 378.1 million for the year ended December 31, 2022, compared to approximately RMB 1,031.4 million for the year ended December 31, 2021[11]. - Revenue dropped from approximately RMB 1,031.4 million for the year ended December 31, 2021, to approximately RMB 378.1 million for the year ended December 31, 2022, representing a decline of about RMB 653.3 million or 63.3%[28][30]. - Gross profit decreased from approximately RMB 77.7 million in 2021 to approximately RMB 23.7 million in 2022, a decline of about 69.5%, with the gross margin slightly decreasing from 7.5% to 6.3%[32]. - The company's other income for the year ended December 31, 2022, was approximately RMB 3.2 million, primarily from rental income and government grants[33]. - The net loss for the year decreased from approximately RMB 1,206.2 million in 2021 to approximately RMB 193.6 million in 2022, a reduction of about 83.9%[39]. - The company's current ratio as of December 31, 2022, was 27.1%, down from 47.0% in 2021, indicating a significant decrease in liquidity[44]. - For the year ended December 31, 2022, the company's revenue was RMB 378.119 million, a decrease of 63.4% compared to RMB 1,031.361 million in 2021[53]. - The company reported a pre-tax loss of RMB 193.417 million for 2022, improving from a loss of RMB 1,162.866 million in 2021[53]. - Total assets as of December 31, 2022, were RMB 300.980 million, down from RMB 567.801 million in 2021, representing a decline of 47.1%[54]. - Total liabilities decreased to RMB 1,072.459 million in 2022 from RMB 1,147.687 million in 2021, a reduction of 6.5%[54]. Market Expansion and Strategy - Future outlook indicates a projected revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies[1]. - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share within the next two years[1]. - Wenye Group is exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[1]. - The company plans to expand into high-speed rail, airports, hospitals, and hotels, and leverage the "Belt and Road" initiative for overseas business growth[29]. - The group aims to expand its marketing network nationwide, focusing on high-end projects such as star-rated hotels and iconic public buildings[26]. Research and Development - The company is investing HKD 50 million in research and development for new technologies aimed at enhancing user experience and operational efficiency[1]. - The group obtained 5 invention patents in China during the year, emphasizing its commitment to research and innovation[21]. - The group plans to optimize resources and develop in green, technology, and smart building decoration sectors, while introducing financial services for growth acceleration[26]. Corporate Governance - The company is committed to maintaining high standards of corporate governance, with relevant information detailed in the corporate governance report[140]. - The company has adhered to the Corporate Governance Code since its listing, except for the separation of the roles of Chairman and CEO, which is currently held by Mr. Fan[144]. - The board consists of eight directors, including two executive directors, three non-executive directors, and three independent non-executive directors[151]. - The company has adopted a standard code for securities trading, ensuring all directors complied with the required standards during the reporting period[146]. - The board has delegated certain responsibilities to committees, which guide and supervise management in strategy formulation and performance monitoring[150]. Employee and Remuneration - The group had a total of 141 employees as of December 31, 2022, down from 178 employees as of December 31, 2021[129]. - Employee costs for the year amounted to approximately RMB 20.7 million, a decrease from RMB 36.9 million in the previous year[129]. - The remuneration committee held two meetings during the reporting period to consider and recommend remuneration schemes for directors, with nine directors earning between HKD 0 and HKD 1,000,000[180]. - The company aims to avoid any form of harassment or discrimination in the workplace, promoting equal treatment for all employees regardless of age, gender, race, or other factors[184]. Risk Management - The company has established a high-level risk management and internal control system to protect shareholder investments and company interests[192]. - The risk assessment procedures consider both internal risks (e.g., employee ethics, financial status) and external risks (e.g., economic and legal developments)[193]. - The board has reviewed the effectiveness of the risk management and internal control systems and confirmed their adequacy and effectiveness[195]. Shareholder Information - The company did not recommend a final dividend for the year ended December 31, 2022[48]. - The group has a dividend policy that states dividends will be paid based on profitability and other relevant factors, but there is no guarantee of dividend payments[75]. - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting[197]. - Shareholders can propose independent resolutions at the general meeting, and all resolutions will be voted on according to the Listing Rules[196].

Financial Performance - The company's revenue decreased from approximately RMB 662.6 million in the first half of 2021 to approximately RMB 238.0 million in the first half of 2022, a decline of about 64%[14]. - Construction contract revenue accounted for 97.8% of total revenue in the first half of 2022, amounting to RMB 233.0 million, down from RMB 657.6 million in the same period of 2021[14]. - The group's gross profit decreased from approximately RMB 80.7 million in the first half of 2021 to approximately RMB 13.9 million in the first half of 2022, a reduction of RMB 66.8 million, with a gross margin of 5.9% in the first half of 2022[16]. - The group's net profit decreased by 463.9% from approximately RMB 26.3 million in the first half of 2021 to a loss of approximately RMB 95.7 million in the first half of 2022, primarily due to reduced revenue and increased impairment losses[22]. - Revenue for the six months ended June 30, 2022, was RMB 238,039 thousand, a decrease of 64% compared to RMB 662,590 thousand in 2021[55]. - Gross profit for the same period was RMB 13,943 thousand, down 83% from RMB 80,715 thousand in 2021[55]. - The company reported a net loss of RMB 95,747 thousand for the six months ended June 30, 2022, compared to a profit of RMB 26,257 thousand in 2021[55]. Cost Management - The cost of sales decreased from approximately RMB 581.9 million in the first half of 2021 to approximately RMB 224.1 million in the first half of 2022, a reduction of about 61.5%[15]. - Sales and marketing expenses decreased by 44.9% from approximately RMB 4.7 million in the first half of 2021 to approximately RMB 2.6 million in the first half of 2022, primarily due to reduced employee numbers and marketing expenses caused by the COVID-19 pandemic[19]. - General and administrative expenses increased by approximately 44.2% from RMB 16.9 million in the first half of 2021 to RMB 30.6 million in the first half of 2022, mainly due to an increase in R&D expenses of approximately RMB 15.2 million[20]. Impairment and Losses - Financial and contract asset impairment losses increased by 293.8% from approximately RMB 17.8 million in the first half of 2021 to approximately RMB 70.1 million in the first half of 2022[21]. - The group's net other losses in the first half of 2022 included impairment losses of RMB 1.1 million and gains from the sale of subsidiaries of RMB 0.96 million, compared to RMB 2.5 million in other losses in the first half of 2021[18]. Cash Flow and Liquidity - The company plans to enhance cash management and improve liquidity by monitoring accounts receivable and recovering overdue payments[9]. - The net cash flow from operating activities was RMB 41,819 thousand for the six months ended June 30, 2022, compared to RMB 17,587 thousand in 2021[62]. - Cash and cash equivalents decreased to RMB 12,704 thousand as of June 30, 2022, from RMB 60,893 thousand at the beginning of the year[64]. - The company incurred financial asset impairment losses of RMB 70,122 thousand, significantly higher than RMB 17,756 thousand in 2021[62]. Shareholder Information - The company reported a total of 594,000,000 shares issued as of the report date[8]. - The major shareholder, China Merchants Yonglong Trust Co., Ltd., holds 32.74% of the issued share capital, equating to 194,467,150 shares[42]. - Fanshaozhou Holdings, a significant stakeholder, owns 29.48% of the issued shares, totaling 175,117,150 shares[42]. - Ms. Ye Jin Hua holds 34.95% of the shares, which amounts to 207,599,150 shares[42]. - Wenye Elite Holdings possesses 12.12% of the shares, corresponding to 72,000,000 shares[42]. Corporate Governance - The company has adhered to all corporate governance codes, with the exception of the separation of the roles of Chairman and CEO[46][47]. - The audit committee reviewed the unaudited consolidated interim financial information for the six months ending June 30, 2022[53]. - The company plans to continue enhancing its corporate governance practices to ensure compliance with the governance code[47]. Market and Operational Strategy - The ongoing macro-control policies in China's real estate sector continue to significantly impact the company's operations and financial performance[8]. - The company is focusing on digitalization and precise management to mitigate adverse effects and promote sustainable development[8]. - The establishment of overseas companies is planned to increase the company's reputation and revenue in international markets, aligned with China's "Belt and Road" initiative[12]. - The company intends to provide services to more clients in the commercial, infrastructure, and public building sectors to improve competitiveness and management standards[8]. Legal and Financial Risks - The company is involved in 255 lawsuits due to inability to repay outstanding bank and other borrowings, with expected cash outflows of approximately RMB 35,292,000[69]. - The company is actively seeking new clients and negotiating extensions for overdue bank loans and other borrowings[70]. - The company is exploring potential new funding sources, including new share issuance and funds from potential investors[70]. Asset Management - Total assets decreased to RMB 396,467 thousand as of June 30, 2022, from RMB 538,761 thousand at the end of 2021[57]. - Trade and other receivables decreased by 13.5% from approximately RMB 229.3 million on December 31, 2021, to approximately RMB 202.0 million on June 30, 2022[23]. - The company reported a total of RMB 152,228,000 in contract assets after provisions as of June 30, 2022, down from RMB 220,175,000 as of December 31, 2021, a decrease of about 30.9%[180]. Financial Reporting and Standards - The company adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2022, with no significant impact on the financial statements[73]. - The consolidated financial statements are prepared in accordance with historical cost convention and modified for fair value adjustments[74]. - The functional and presentation currency of the group is Renminbi, reflecting the primary economic environment in which the company operates[81].

Company Overview - The group reported a comprehensive financial statement for the year ending December 31, 2021, highlighting its status as a construction decoration service provider in Shenzhen, China[12]. - The group has approximately 30 years of operational history and holds several top-level construction qualifications and licenses in the Chinese construction industry[12]. - The group was listed on the main board of the Hong Kong Stock Exchange on January 14, 2020[12]. - The group is headquartered in Shenzhen, Guangdong Province, China, with a major operational location in Hong Kong[6][7]. - The group's main business involves providing indoor and outdoor architectural decoration and design services, covering various types of buildings[79]. Market Position and Strategy - The group has established a strong market presence in the construction decoration sector, leveraging its extensive experience and qualifications[12]. - The group aims to expand its market reach and enhance its service offerings in the construction industry[12]. - The group aims to capture growth opportunities post-pandemic by maintaining traditional channels and actively seizing emerging channel opportunities[14]. - The domestic construction decoration market is expected to rebound strongly after the pandemic, despite temporary setbacks due to COVID-19[16]. - The construction decoration industry in China continues to show significant growth potential, driven by rapid urbanization and ongoing demand for renovation throughout the lifecycle of buildings[17]. Financial Performance - The group's revenue decreased from approximately RMB 1,247.6 million for the year ended December 31, 2020, to approximately RMB 1,031.4 million for the year ended December 31, 2021, a decline of about RMB 216.2 million or 17.3%[13]. - Gross profit fell from approximately RMB 148.6 million to approximately RMB 77.7 million, a decrease of about 47.7%, with the gross margin dropping from 11.9% to 7.5%[34]. - The company recorded a net loss of approximately RMB 1,206.2 million for the year ended December 31, 2021, compared to a profit of approximately RMB 21.1 million in the previous year, marking a decline of 5,816.6%[41]. - The company incurred a loss before tax of RMB (1,162.9) million in 2021, compared to a profit of RMB 32.5 million in 2020[61]. - Total assets decreased to RMB 567.8 million in 2021 from RMB 1,952.7 million in 2020, indicating a significant reduction of approximately 70.9%[62]. Research and Development - The group is focused on research and development to innovate new products and technologies in the construction decoration field[12]. - The group emphasizes the importance of research and development to enhance its innovation capabilities and construction techniques[21]. - The company plans to implement an industry internet-based SaaS service platform in 2022 to enhance organizational efficiency and address industry pain points[30]. - The company is investing G million in R&D for new technologies, aiming to launch H new products in the next 12 months[67]. Corporate Governance - The group is committed to maintaining high standards of corporate governance and compliance with regulatory requirements[12]. - The group has a diverse board of directors with various expertise, ensuring effective oversight and strategic direction[4]. - The board is responsible for leading and controlling the company, overseeing business strategies and performance[156]. - The board consists of eight directors, including two executive directors, three non-executive directors, and three independent non-executive directors[159]. - All directors have confirmed their independence in accordance with the listing rules, ensuring compliance with governance standards[162]. Risk Management - The company has implemented a risk management and internal control system, which was reviewed for effectiveness during the fiscal year[182]. - The company has established a high-level risk management and internal control system to protect shareholder investments and company interests[199]. - The risk management system aims to minimize and prevent a range of strategic, business, financial, and legal risks[199]. - Identified risks are evaluated based on their likelihood of occurrence and potential impact on business operations[200]. Awards and Recognition - The group received two Guangdong Province Construction Decoration Industry Science and Technology Innovation Achievement Awards and four Chinese utility model patents in the current year[22]. - The group has been recognized with multiple awards for its construction quality and design capabilities, including the 2021-2022 China Construction Engineering Decoration Award[23]. Employee and Management Information - The group had a total employee cost of approximately RMB 36.9 million in 2021, down from RMB 40.5 million in 2020[137]. - The group employed 178 employees as of December 31, 2021, a decrease from 366 employees in 2020[137]. - The company has provided liability insurance for all directors and senior management to minimize risks[174]. - The company encourages all directors to engage in ongoing professional development to enhance their knowledge and skills[172]. Financial Position and Capital Management - The group raised a net amount of HKD 107.4 million from its listing on January 14, 2020, after deducting related listing expenses[20]. - As of December 31, 2021, the group's cash and cash equivalents were approximately RMB 22.7 million, a decrease from RMB 56.9 million in 2020[47]. - The current ratio decreased to 47.0% in 2021 from 140.5% in 2020, while the debt-to-equity ratio changed from 23.2% in 2020 to (27.4%) in 2021[47]. - The group plans to allocate 61.2% of the net proceeds for capital needs and cash flow, which amounts to HKD 80.2 million[87]. Dividend Policy - The group did not recommend a final dividend for the year ended December 31, 2021[52]. - The company adopted a dividend policy on December 21, 2019, which allows the board to declare dividends based on the group's profits[191]. - The board will consider various factors when recommending any dividend payout ratio, including the group's actual and expected financial performance and shareholder equity[193].

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，並明確表示概不就因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致的任何損失承擔任何責任。 Wenye Group Holdings Limited 文 業 集 團 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1802） 截至2023年6月30日止六個月的 中期業績公告 中期業績 文業集團控股有限公司（「本公司」）董事會（「董事會」）謹此宣佈本公司及其附 屬公司（統稱「本集團」）截至2023年6月30日止期間（「2023年上半年」）的未經審 核簡明綜合中期業績，連同截至2022年6月30日止期間（「2022年上半年」）的比 較數字。 財務摘要 截至6月30日止六個月 2023年 2022年 人民幣千元 人民幣千元 （未經審核）（未經審核） ...

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，並明確表示概不就因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致的任何損失承擔任何責任。 Wenye Group Holdings Limited 文 業 集 團 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1802） 截至2022年12月31日止年度的 年度業績公告 末期業績 文業集團控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈本公 司及其附屬公司（統稱「本集團」）截至2022年12月31日止年度的經審核綜合業績， 連同截至2021年12月31日止年度的比較數字。 財務摘要 2022年 2021年 人民幣千元 人民幣千元 收益 378,119 1,031,361 毛利率 6.3% 7.5% ...

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，並明確表示概不就因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致的任何損失承擔任何責任。 Wenye Group Holdings Limited 文 業 集 團 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1802） 截至2022年6月30日止六個月的 中期業績公告 中期業績 文業集團控股有限公司（「本公司」）董事會（「董事會」）謹此宣佈本公司及其附 屬公司（統稱「本集團」）截至2022年6月30日止期間（「2022年上半年」）的未經審 核簡明綜合中期業績，連同截至2021年6月30日止期間（「2021年上半年」）的比 較數字。 財務摘要 截至6月30日止六個月 2022年 2021年 人民幣千元 人民幣千元 （未經審核）（未經審核） ...

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，並明確表示概不就因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致的任何損失承擔任何責任。 Wenye Group Holdings Limited 文 業 集 團 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1802） 截至2021年12月31日止年度的 年度業績公告 末期業績 文業集團控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈本公 司及其附屬公司（統稱「本集團」）截至2021年12月31日止年度的經審核綜合業績， 連同截至2020年12月31日止年度的比較數字。 財務摘要 2021年 2020年 人民幣千元 人民幣千元 收益 1,031,361 1,247,561 毛利率 7.5% 11.9% ...

Financial Performance - The company's revenue for the year ended December 31, 2021, was RMB 1,149,569,000, a decrease of 7.85% compared to RMB 1,247,561,000 in 2020[7] - The gross profit margin for 2021 was 10.77%, down from 11.9% in 2020[7] - The net loss attributable to the owners of the company for 2021 was RMB 59,893,000, compared to a profit of RMB 21,069,000 in 2020[9] - Total revenue for construction services in 2021 was RMB 1,133,212,000, a decrease of 7.4% from RMB 1,224,256,000 in 2020[27] - Total revenue for design services in 2021 was RMB 16,357,000, down 29.8% from RMB 23,305,000 in 2020[27] - Total operating expenses in 2021 amounted to RMB 1,070,963,000, a decrease of 8.1% from RMB 1,165,895,000 in 2020[28] - Basic loss per share for 2021 was RMB (0.1), compared to earnings of RMB 0.04 per share in 2020[34] - The effective tax rate for 2021 was 28%, consistent with the rate in 2020[30] - No dividends were proposed for the year ended December 31, 2021, same as in 2020[31] - The company reported a net financial and contract asset impairment loss of RMB 96,000,000 in 2021, compared to RMB 44,312,000 in 2020[9] - Other income recorded for the year ended December 31, 2021, was approximately RMB 3.7 million, down from RMB 14.3 million in 2020[59] - The company reported a net loss of approximately RMB 60.0 million for the year ended December 31, 2021, compared to a profit of approximately RMB 21.1 million in 2020[65] Assets and Liabilities - The company's total assets as of December 31, 2021, were RMB 1,793,728,000, a decrease from RMB 1,952,677,000 in 2020[12] - The total equity attributable to the owners of the company decreased to RMB 566,398,000 in 2021 from RMB 625,804,000 in 2020[12] - The company's cash and cash equivalents as of December 31, 2021, were RMB 33,727,000, down from RMB 56,856,000 in 2020[12] - As of December 31, 2021, trade receivables amounted to RMB 836.8 million, down from RMB 1,019.8 million in 2020, with a net amount of RMB 538.8 million after impairment provisions[37] - The net amount of warranty receivables was RMB 98.9 million in 2021, a decrease from RMB 107.7 million in 2020[37] - Trade and other receivables decreased from approximately RMB 991.2 million in 2020 to approximately RMB 680.3 million in 2021, a decline of about 31.4%[67] - Trade payables were RMB 677.3 million in 2021, down from RMB 844.6 million in 2020[47] - Trade and other payables decreased by 9.8% from approximately RMB 1,034.8 million in 2020 to approximately RMB 933.4 million in 2021[68] - Bank borrowings as of December 31, 2021, were approximately RMB 102.3 million, down from RMB 161.3 million in 2020, with a weighted average interest rate of approximately 5.54%[69] - The current ratio improved slightly from 1.41 in 2020 to 1.45 in 2021, while the debt-to-equity ratio decreased from 23.2% to 17.8%[72] Business Operations and Challenges - The company faced significant limitations in collecting necessary documents due to COVID-19 related travel restrictions[4] - The company faced challenges due to the ongoing COVID-19 pandemic and strict government measures, as well as a cooling real estate market impacting the decoration industry[50] - The number of new projects undertaken in 2021 totaled 233, with a total contract value of RMB 1,060.09 million, indicating a significant decline compared to the previous year[51] - The aging analysis of trade receivables showed that RMB 648.7 million was classified as unbilled revenue as of December 31, 2021[38] - The company reported a maximum credit risk of RMB 680.3 million for trade and other receivables as of December 31, 2021[37] Future Plans and Governance - The company expects to publish its audited annual results for 2021 by the end of April 2022[5] - The company plans to announce further updates at an appropriate time regarding its audited financial results[5] - The company is evaluating the financial impact of adopting new accounting standards and amendments that will take effect in the future[22] - The company has not reported any significant impact from the adoption of new accounting standards that took effect on January 1, 2021[19] - The company plans to reshape its business model and enhance digital transformation in 2022, aiming for significant growth in performance through innovative platforms and services[53] - The company fully complied with the corporate governance code, with a noted deviation regarding the separation of the roles of Chairman and CEO[85][87] - The audit committee reviewed the unaudited consolidated financial statements for the year ended December 31, 2021[92] - The company plans to publish its audited annual results by April 30, 2022, following the completion of the audit process[93] Capital Allocation - The net proceeds from the global offering amounted to approximately HKD 107.4 million, fully utilized by December 31, 2021[82] - The capital allocation from the net proceeds included 61.2% for capital needs and cash flow, 8.1% for hiring more project managers and designers, and 20.9% for enhancing existing branches[82]

Revenue and Profitability - The company's revenue increased from approximately RMB 301.7 million in the first half of 2020 to approximately RMB 662.6 million in the first half of 2021, representing a growth of about 119.6%[9] - The construction contract revenue accounted for 99.2% of total revenue in the first half of 2021, amounting to RMB 657.6 million, compared to RMB 292.8 million or 97.1% in the same period of 2020[13] - The group's net profit increased by 217.2% from approximately RMB -22.4 million in the first half of 2020 to approximately RMB 26.3 million in the first half of 2021, primarily due to a significant recovery from COVID-19 impacts and reduced general and administrative expenses[25] - Gross profit increased from approximately RMB 37.2 million in the first half of 2020 to approximately RMB 80.7 million in the first half of 2021, with a gross margin of 12.18%[17] - Operating profit for the six months was RMB 41,860 thousand, a significant recovery from an operating loss of RMB 18,474 thousand in the previous year[70] - Net profit for the period was RMB 26,257 thousand, compared to a net loss of RMB 22,408 thousand in 2020, marking a turnaround in profitability[72] Costs and Expenses - The group's sales cost rose from approximately RMB 264.6 million in the first half of 2020 to approximately RMB 581.9 million in the first half of 2021, an increase of about 119.9%[16] - General and administrative expenses decreased by approximately 46.4% from RMB 31.5 million in the first half of 2020 to RMB 16.9 million in the first half of 2021, mainly due to the absence of listing expenses in 2021[22] - Financial and contract asset impairment losses decreased by 19.7% from RMB 22.1 million in the first half of 2020 to RMB 17.8 million in the first half of 2021, attributed to the recovery of overdue trade receivables[23] Financial Position - Total assets as of June 30, 2021, were RMB 1,904,690 thousand, slightly down from RMB 1,952,677 thousand at the end of 2020[74] - Total equity increased to RMB 652,547 thousand from RMB 625,804 thousand at the end of 2020, reflecting a positive change in the company's financial position[76] - The group's current ratio improved to 1.46 as of June 30, 2021, compared to 1.41 as of December 31, 2020[34] - The debt-to-equity ratio decreased to 20.4% as of June 30, 2021, from 23.2% as of December 31, 2020, primarily due to an increase in cash and cash equivalents and a decrease in short-term bank borrowings[35] Cash Flow and Financing - Operating cash flow for the six months ended June 30, 2021, was RMB 17,587 thousand, compared to a net cash outflow of RMB 100,326 thousand for the previous period[82] - Cash flow from investing activities resulted in a net inflow of RMB 603 thousand, contrasting with a net outflow of RMB 970 thousand in the prior period[82] - Financing activities showed a net cash outflow of RMB 14,549 thousand, while the previous period had a net inflow of RMB 111,478 thousand[82] - The company reported a significant increase in bank and other borrowings, with RMB 74,389 thousand received during the first half of 2021, compared to RMB 212,917 thousand in the previous period[82] Shareholder Information - The largest shareholder, Mr. Fanshaozhou, holds 29.28% of the issued share capital, amounting to 173,905,150 shares[53] - The largest shareholder, China Merchants Yonglong Trust Co., Ltd., holds 193,255,150 shares, representing approximately 32.53% of the issued share capital[57] - Ms. Ye Jin Hua holds 233,497,150 shares, which is approximately 39.31% of the issued share capital[57] - The company did not declare any dividends for the six months ended June 30, 2021, consistent with 2020[113] Business Operations and Strategy - The group signed contracts for 129 projects during the reporting period, with a total value (including VAT) of approximately RMB 704.2 million, including 19 projects valued over RMB 5 million and 11 projects over RMB 20 million[9] - The company plans to enhance building construction management and gradually adopt big data systems for digital management[14] - The group aims to transition from "engineering construction" to "engineering intelligent manufacturing" through the implementation of smart management[14] - The company operates primarily in the indoor and outdoor architectural decoration and design services sector in China[100] Employee and Management Information - Employee benefits expenses, including director remuneration, were approximately RMB 19.1 million for the first half of 2021, compared to RMB 20.3 million in the same period of 2020[51] - The company employed a total of 362 employees as of June 30, 2021, down from 375 employees a year earlier[51] - The remuneration for key management personnel for the six months ended June 30, 2021, was RMB 1,181,000, a decrease from RMB 1,268,000 for the same period in 2020[135] Compliance and Governance - The company has complied with all provisions of the corporate governance code during the reporting period, with some deviations noted[61] - The roles of Chairman and CEO are not separated, with Mr. Fan serving in both capacities, which the board believes ensures effective leadership[62] - The audit committee reviewed the unaudited interim report for the six months ended June 30, 2021, and had no differing opinions[68] Risks and Liabilities - The group has a significant contingent liability amounting to approximately RMB 9,622,000 claimed by construction workers against a subsidiary, with a court ruling requiring payment of approximately RMB 9,347,000[137] - The subsidiary believes it should not bear any obligation for the claims due to the absence of a contractual agreement with the construction workers[137]