Summary of Key Points Core Viewpoint - A total of 142 stocks reached their 52-week highs as of August 12, with notable performers including Yingmei Holdings (02028), Elite Group (01775), and Fuying Global Group (01620) achieving high rates of 164.89%, 84.78%, and 40.63% respectively [1]. Stock Performance - **Top Performers**: - Yingmei Holdings (02028) closed at 0.223 with a peak of 0.249, marking a 164.89% increase [1]. - Elite Group (01775) closed at 0.350 with a peak of 0.425, reflecting an 84.78% increase [1]. - Fuying Global Group (01620) closed at 0.180, reaching its peak at 0.180, showing a 40.63% increase [1]. - **Other Notable Stocks**: - Aoya Group (02425) increased by 34.36% [1]. - Fuyiy International Holdings (01470) saw a rise of 28.30% [1]. - Huajian Medical (01931) experienced a 27.58% increase [1]. 52-Week High Rankings - The ranking of stocks that reached their 52-week highs includes: - Yingmei Holdings (02028) at 164.89% [1]. - Elite Group (01775) at 84.78% [1]. - Fuying Global Group (01620) at 40.63% [1]. 52-Week Low Rankings - The report also highlights stocks that reached their 52-week lows, with notable declines including: - Jiadeng International Group (08153) at -15.25% [4]. - Kun Group (00924) at -12.86% [4]. - Zhongjia Guoxin (00899) at -10.00% [4].

董事會會議日期 中庆環境股份有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈，本公司 將於二零二五年八月二十一日（星期四）舉行董事會會議，藉以（其中包括）考慮及 批准本公司及其附屬公司截至二零二五年六月三十日止六個月之未經審核中期業 績及其發佈，以及建議派發中期股息（如有）。 承董事會命 中庆環境股份有限公司 主席兼非執行董事 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。 ZONQING Environmental Limited 中庆環境股份有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1855） 孫舉慶 香港，二零二五年八月十一日 於本公告日期，本公司董事會成員包括執行董事劉海濤先生（副主席）及王彥女士； 非執行董事孫舉慶先生（主席）、呂鴻雁女士及邵占廣先生；以及獨立非執行董事 高向農先生、尹軍先生及李國棟先生。 ...

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: 中庆环境股份有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01855 | 說明 | 普通股 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 30,000,000,000 | HKD | 0.000333333333 | HKD | | 10,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 30,000,000,000 | HKD | 0.000333333333 | HKD | | 10,000,000 | 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 FF ...

Financial Performance - For the fiscal year ending December 31, 2024, ZONQING Environmental Limited reported total revenue of approximately RMB 1,743.1 million, a decrease of 26.0% compared to RMB 2,355.5 million in 2023[8]. - The net profit for the year was approximately RMB 46.1 million, down 69.9% from RMB 153.2 million in the previous year[8]. - The gross profit decreased by 30.4% to RMB 314.0 million from RMB 450.8 million in 2023[8]. - The company achieved a basic and diluted earnings per share of RMB 0.05, a decline of 68.8% from RMB 0.16 in the previous year[8]. - Revenue decreased by approximately 26.0% or RMB 612.4 million from RMB 2,355.5 million in FY2023 to RMB 1,743.1 million in FY2024, primarily due to delays in government construction projects[27]. - The urban renewal services segment's revenue fell by approximately 31.8% or RMB 650.0 million from RMB 2,024.2 million in FY2023 to RMB 1,392.2 million in FY2024, attributed to project delays[28]. - The urban operation and maintenance services segment's revenue increased by approximately 12.1% or RMB 26.4 million from RMB 219.0 million in FY2023 to RMB 245.4 million in FY2024, driven by growth in new contracts[29]. - The urban planning and design services segment's revenue decreased by approximately 32.4% or RMB 36.4 million from RMB 112.3 million in FY2023 to RMB 75.9 million in FY2024, influenced by policy and macroeconomic conditions[30]. - Gross profit decreased by approximately 30.3% to RMB 314.0 million, with a gross margin decline from 19.1% to 18.0% due to increased market competition and lower service fees in new regions[33]. Income and Expenses - The company experienced a significant increase in other income, which rose by 48.2% to RMB 15.6 million compared to RMB 10.6 million in the prior year[8]. - Selling expenses surged by 83.1% to RMB 34.4 million, up from RMB 18.8 million in 2023[8]. - Administrative expenses decreased by approximately 10.3% to RMB 82.3 million, mainly due to reduced business volume and cost-saving management practices[36]. - Financing costs decreased by approximately 7.7% to RMB 60.1 million, primarily due to lower loan interest rates in response to national policies supporting business development[38]. - The share of losses from joint ventures increased from a profit of RMB 1.4 million to a loss of RMB 2.7 million, mainly due to increased expected credit loss provisions[41]. - The share of losses from a joint venture in tourism increased from RMB 4.4 million to RMB 24.9 million, driven by higher expected credit loss provisions[42]. Assets and Liabilities - Non-current assets remained relatively stable at RMB 483.7 million, a slight decrease of 0.1% from RMB 483.9 million in 2023[8]. - Current assets increased by 16.0% to RMB 3,899.9 million, compared to RMB 3,362.5 million in the previous year[8]. - The total equity attributable to shareholders increased by 3.3% to RMB 795.2 million from RMB 769.5 million in 2023[8]. - Current assets decreased by approximately 14.8% to RMB 321.4 million, partly due to slower customer payment speeds and outstanding payables[46]. - Trade receivables and notes increased by approximately 30.4% from RMB 1,765.1 million to RMB 2,301.7 million due to delays in collection influenced by the national economic environment[49]. - Trade payables and notes rose by approximately 13.6% from RMB 1,389.2 million to RMB 1,578.1 million, attributed to extended payment terms negotiated with suppliers due to customers' weakened repayment ability[52]. - The group's equity return rate decreased from 18.1% in the fiscal year 2023 to 6.0% in the fiscal year 2024, mainly due to a reduction in profit[60]. - The total asset return rate fell from 3.8% in the fiscal year 2023 to 1.1% in the fiscal year 2024, primarily due to decreased profit[61]. - The capital debt ratio increased from 1.0 to 1.1, driven by an increase in bank and other loans[63]. - The net debt-to-equity ratio rose from 0.7 to 1.0, also due to an increase in bank and other loans[64]. Business Operations and Strategy - The company made significant progress in expanding its cultural tourism business, particularly in key regions such as Sichuan, Guangdong, and Hainan[9]. - Revenue sources for fiscal year 2024 included urban renewal services (79.9%), urban operation and maintenance services (14.1%), urban planning and design services (4.3%), and cultural tourism (1.7%)[12]. - The cultural tourism segment generated revenue of approximately RMB 29.64 million with a gross profit of RMB 11.59 million, accounting for about 3.7% of total gross profit[14]. - The group plans to continue expanding its cultural tourism business and enhance service quality while implementing national development strategies, particularly in regions like Sichuan, Guangdong, and Hainan[16]. - The company is focused on digital transformation and improving operational management to achieve sustainable high-quality development[10]. - The company plans to expand its business in cities like Shenzhen, Guangzhou, Tianjin, and Chongqing, focusing on urban operation and maintenance as well as cultural tourism markets[26]. - The company expects to benefit from government debt policies, improving cash flow and reducing financial pressure in FY2025[24]. - The company is exploring acquisition opportunities to enhance its overall strength and diversify its business portfolio, although no specific plans for major investments or acquisitions have been disclosed[65]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to ensure integrity, transparency, and effective internal management[93]. - The board has established three committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee to oversee specific aspects of the company's affairs[106]. - The company has not identified any non-compliance with trading standards by directors since the listing date[95]. - The board is responsible for formulating the overall strategy and policies of the group, approving business plans, and assessing group performance[97]. - The company will continue to review and strengthen its corporate governance to ensure compliance with the corporate governance code[94]. - All independent non-executive directors have confirmed their independence according to the listing rules[99]. - The board has adopted a diversity policy, achieving a gender ratio of 6:2 among board members as of the 2024 fiscal year[103]. - The company’s internal audit department plays a crucial role in monitoring internal governance and assessing major risks[119]. Shareholder and Stakeholder Engagement - The company expresses gratitude to shareholders and partners for their support, emphasizing a commitment to creating greater value for stakeholders[10]. - The company has a policy for handling and disclosing inside information, requiring Board approval for any announcements[120]. - The company’s shareholder communication policy is deemed sufficient and effective by the board[124]. - The company reported no dividend distribution for the fiscal year 2024[137]. - As of December 31, 2024, the company had no distributable reserves for shareholders, compared to zero in 2023[147]. - The company has adopted a dividend policy that depends on the availability of dividends from its subsidiaries, with future dividends subject to various factors including operational performance and cash flow[116]. Employee and Management Information - The group had a total of 799 employees as of December 31, 2024, with employee costs amounting to approximately RMB 173.4 million for the fiscal year 2024, compared to RMB 169.7 million in 2023[187]. - The total remuneration for senior management in the fiscal year 2024 is categorized into two levels: 5 members received between 0 – 400,000 RMB, and 3 members received between 400,000 – 800,000 RMB[115]. - All directors participated in continuous professional development to enhance their knowledge and skills for effective contributions to the board[98]. Related Party Transactions - The group entered into significant related party transactions in the fiscal year 2024, with total purchases amounting to approximately RMB 2,743,000, down from RMB 8,824,000 in 2023[194]. - The group provided guarantees for bank loans amounting to approximately RMB 642.7 million as of December 31, 2024, compared to RMB 393 million in 2023[194]. - The group established a new equipment usage framework agreement with Zhongqing Investment Group, with a maximum payment of RMB 600,000, RMB 700,000, and RMB 800,000 for the respective three years ending December 31, 2025[195]. - The group also entered into a new survey and design service framework agreement with Zhongqing Investment Group, with a maximum payment of RMB 20 million per year for three years, with RMB 1,874,000 recorded for the fiscal year 2024[196]. - The company entered into a new property leasing framework agreement with Zhongqing Investment Group, effective from January 1, 2023, to December 31, 2025, with a maximum payment of RMB 4,500,000, RMB 4,800,000, and RMB 4,800,000 for each respective year[198]. - For the year ending December 31, 2024, the transaction amount for property leasing is RMB 2,463,000, which is within the annual limit[198]. - A new framework agreement for landscaping and ecological restoration construction services was established with Zhongqing Investment Group, also effective from January 1, 2023, to December 31, 2025, with maximum payments of RMB 150,000,000, RMB 160,000,000, and RMB 170,000,000 for each respective year[199]. - The transaction amount for landscaping and ecological restoration services for the year ending December 31, 2024, is RMB 25,834,000, remaining below the annual limit[199]. - The company signed a framework agreement for construction project management services with Zhongqing Investment Group, with maximum payments of RMB 30,000,000, RMB 40,000,000, and RMB 40,000,000 for each respective year until December 31, 2025[200]. - The transaction amount for construction project management services for the year ending December 31, 2024, is RMB 5,433,000, which does not exceed the annual limit[200].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of RMB 1,743,092,000, a decrease of 26% compared to RMB 2,355,497,000 in the previous year[3]. - Gross profit for the same period was RMB 314,034,000, down 30% from RMB 450,848,000 in the prior year[3]. - Operating profit decreased to RMB 133,134,000, a decline of 45% from RMB 240,807,000 year-on-year[3]. - The net profit for the year was RMB 46,088,000, representing a 70% decrease from RMB 153,225,000 in the previous year[3]. - Basic and diluted earnings per share fell to RMB 5, down from RMB 16 in the previous year, indicating a 68.75% decline[3]. - The gross profit decreased by approximately 30.3% from RMB 450.8 million in fiscal year 2023 to RMB 314.0 million in fiscal year 2024, with the gross profit margin dropping from about 19.1% to 18.0%[67]. - The company reported a pre-tax profit of RMB 45,374,000 in 2024, a significant decrease from RMB 172,652,000 in 2023[39]. - The company incurred a tax expense of RMB (714,000) in 2024, compared to RMB 19,427,000 in 2023, reflecting a significant reduction in taxable income[39]. Assets and Liabilities - The company’s total assets as of December 31, 2024, were RMB 3,899,855,000, compared to RMB 3,362,493,000 in the previous year, reflecting an increase of 15.9%[5]. - Current liabilities increased to RMB 3,578,496,000 from RMB 2,985,285,000, marking a rise of 19.9%[5]. - The company reported a net cash position of RMB 122,779,000, down from RMB 210,405,000, indicating a decrease of 41.7%[5]. - The company’s non-current assets totaled RMB 483,674,000, slightly down from RMB 483,933,000, showing a marginal decrease of 0.05%[5]. - Trade receivables increased to RMB 2,710,091,000 in 2024 from RMB 2,052,208,000 in 2023, representing a growth of 31.9%[44]. - Total trade payables increased to RMB 1,578,145,000 in 2024 from RMB 1,389,181,000 in 2023, reflecting a growth of 13.6%[46]. - Bank loans and other borrowings amounted to RMB 884,661,000 in 2024, up from RMB 806,210,000 in 2023, indicating an increase of 9.7%[48]. - The provision for losses increased to RMB 408,413,000 in 2024 from RMB 287,409,000 in 2023, a rise of 42.1%[44]. Revenue Segmentation - The urban renewal services segment generated revenue of RMB 1,392,163,000 in 2024, down from RMB 2,024,246,000 in 2023, representing a decline of 31%[22]. - Revenue breakdown for fiscal year 2024: urban renewal services (79.9%), urban operation and maintenance services (14.1%), urban planning and design services (4.3%), and cultural tourism (1.7%)[51]. - Cultural tourism revenue for fiscal year 2024 was approximately RMB 29.64 million, contributing 1.7% to total revenue, with a gross profit of RMB 11.59 million, accounting for about 3.7% of total gross profit[51]. - The cultural tourism segment, newly introduced in 2024, contributed RMB 29,641,000 in revenue, indicating a diversification opportunity for stable cash flow[27]. Operational Highlights - The group submitted 912 bids in fiscal year 2024, an increase of 277 bids or approximately 43.62% compared to fiscal year 2023, with a bid success rate of 35.1%, down by about 3.12 percentage points[53]. - Major projects won in fiscal year 2024 include: Dongguan Tangxia Town Keyuan City Fitness Park (RMB 45.19 million), Sichuan Xingfu Bridge Station TOD development project (RMB 25.25 million), and Hainan Lingshui Lian International Education Innovation Pilot Zone greening service (RMB 15.09 million)[54]. - The group aims to expand its cultural tourism business in fiscal year 2025, focusing on improving service quality and enhancing bidding competitiveness, particularly in regions like Sichuan, Guangdong, and Hainan[53]. - The group has successfully launched the Shenlu Peak National Tourism Resort project and the Liaoyuan Rabbit Paradise project, enhancing service quality and market competitiveness through innovative product development and marketing[52]. Cost Management - Administrative expenses for 2024 were RMB 82,277,000, a decrease from RMB 91,667,000 in 2023, reflecting a cost control effort[32]. - Selling expenses rose by approximately 83.0% from RMB 18.8 million in fiscal year 2023 to RMB 34.4 million in fiscal year 2024, an increase of about RMB 15.6 million, driven by strategic marketing efforts and new cultural tourism business promotions[69]. - Financing costs for 2024 were RMB 60,129,000, slightly down from RMB 65,134,000 in 2023, indicating a reduction of 8%[32]. Future Outlook - The group anticipates obtaining new bank loans and refinancing totaling RMB 90,000,000 after December 31, 2024[11]. - Management plans to improve cash flow by accelerating accounts receivable invoicing and collection, actively participating in tenders, negotiating payment terms with suppliers, and reducing operating expenses[11]. - The company expects to bill RMB 471,056,000 in receivables after one year, down from RMB 513,436,000 in the previous year[43]. Risk Management - The group faces various financial risks, including credit risk, liquidity risk, interest rate risk, and foreign exchange risk, but currency risk is low due to operations primarily in RMB[104]. - The group has implemented policies to ensure sales are made to customers with appropriate credit records, indicating limited credit risk[105]. - The group regularly monitors its liquidity position to ensure sufficient cash reserves and compliance with loan covenants[107]. Corporate Governance - The audit committee consists of three independent non-executive directors, reviewing accounting standards and financial reporting matters[117]. - The board does not recommend the distribution of dividends for the fiscal year 2024[109].

[Company Information](index=2&type=section&id=Company%20Information) This section provides essential identification and contact details for Zonqing Environmental Co., Ltd., including its governance structure and external professional network [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) This section lists the board members of Zonqing Environmental Co., Ltd. and their roles in various committees, clarifying key personnel in the company's governance structure - The Chairman of the Board is Mr. Sun Juqing (Non-executive Director), and the Vice Chairman and CEO is Mr. Liu Haitao (Executive Director)[6](index=6&type=chunk) - The Audit Committee Chairman is Mr. Li Guodong, the Remuneration Committee Chairman is Mr. Yin Jun, and the Nomination Committee Chairman is Mr. Gao Xiangnong[6](index=6&type=chunk) [Professional Advisors and Banks](index=3&type=section&id=Professional%20Advisors%20and%20Banks) This section provides information on Zonqing Environmental Co., Ltd.'s external professional service providers, including auditors, legal advisors, and principal bankers, showcasing the company's external network - The company's auditor is KPMG[6](index=6&type=chunk) - Legal advisors are Messrs. Chow & Cheung, Solicitors and Commerce & Finance Law Offices (Beijing)[6](index=6&type=chunk) - Principal bankers include Bank of China (Hong Kong) Limited, China Everbright Bank Co., Ltd. Changchun Branch, China Merchants Bank Changchun Branch, and Industrial Bank Co., Ltd. Changchun Branch[6](index=6&type=chunk) [Company Contact Information](index=4&type=section&id=Company%20Contact%20Information) This section lists Zonqing Environmental Co., Ltd.'s key contact and identification information, including its head office, Hong Kong principal place of business, registered office, share registrar, stock code, and company website - The company's head office and principal place of business in China are located at 3/F, Zhongqing Building, 5888 Fuzhi Avenue, Jingyue High-tech Development Zone, Changchun City, Jilin Province, China[7](index=7&type=chunk) - The principal place of business in Hong Kong is Unit 18, 9/F, Block B, Ka Lok Industrial Centre, 491–501 Castle Peak Road, Tsuen Wan, Hong Kong[7](index=7&type=chunk) - The company's stock code is **1855**, and its website is www.zonqing.net[7](index=7&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the company's operational performance, financial position, liquidity, and capital structure, along with key developments and risks during the reporting period [Business Review and Outlook](index=5&type=section&id=Business%20Review%20and%20Outlook) In the first half of 2024, the Group expanded into urban park, road greening, and water ecological smart operation and maintenance businesses, securing new contracts worth **RMB 1,249.72 million** despite a challenging economic environment - The Group continued to strengthen its existing product lines, expanding into new and upgraded urban parks, urban road greening, and smart operation and maintenance services for water ecosystems, while firmly pursuing its national development strategy and deepening its presence in external markets[8](index=8&type=chunk) - In the first half of 2024, the Group submitted **344 bids**, achieved a successful bid rate of approximately **44.48%**, and secured new project contracts totaling approximately **RMB 1,249.72 million**[8](index=8&type=chunk) - Key successful bids included the 'Three Roads and Two Streams' Urban Improvement Project (Phase II) EPC (approximately **RMB 407.76 million**), the New Urbanization Construction Project (Phase I) Operation and Maintenance (Section II) (approximately **RMB 198.49 million**), and the Xiaokaiyuan Plot Resettlement Housing Project (approximately **RMB 110.16 million**)[8](index=8&type=chunk) - Jinghe Design Group Co., Ltd. passed the Changchun municipal-level enterprise technology center assessment; Zhongbang Ecological Environment and Changchun Urban Construction Maintenance Group Co., Ltd. obtained national-level 'Credit Star Certificates' (**7-star and 6-star**). In the first half, the Group obtained **2 invention patents, 5 utility model patents, 1 software copyright, 6 provincial construction methods, and 70 innovation achievements**[8](index=8&type=chunk) - The global economy is stabilizing but growth has not returned to pre-pandemic levels; China's GDP grew **5.0% year-on-year** in the first half, with **4.7% growth** in Q2, a slowdown from Q1[10](index=10&type=chunk) - The total output value of the construction industry reached **RMB 13,831.2 billion** in the first half, a **4.8% year-on-year increase**. Infrastructure investment (broad-based) grew **7.7% year-on-year**, but traditional infrastructure investment faces pressure, and local government fiscal pressure is gradually emerging[10](index=10&type=chunk) - Looking ahead to the second half, the Group will continue to leverage its integrated cultural, commercial, tourism, and industrial synergistic businesses, deepen its layout in cultural tourism operations, and consider upgrading qualifications and applying for national, provincial, and municipal excellent design and engineering awards[11](index=11&type=chunk) [Financial Review](index=7&type=section&id=Financial%20Review) In the first half of 2024, the Group's total revenue decreased by **14.7%** to **RMB 775.6 million**, while urban operation and maintenance services revenue significantly increased by **100.3%**, and gross profit rose by **20.1%** due to cost optimization Total Revenue Change | Indicator | H1 2024 (million RMB) | H1 2023 (million RMB) | Change (%) | | :--- | :-------------------------- | :-------------------------- | :------- | | Revenue | 775.6 | 909.8 | -14.7% | - The decrease in revenue was primarily due to fewer newly approved large contracts and slower project progress in the first half of 2024, influenced by external factors[12](index=12&type=chunk) Segment Revenue Change | Segment | H1 2024 (million RMB) | H1 2023 (million RMB) | Change (%) | | :--- | :-------------------------- | :-------------------------- | :------- | | Urban Renewal Construction Services | 613.0 | 783.6 | -21.8% | | Urban Operation and Maintenance Services | 123.6 | 61.7 | +100.3% | | Design and Consulting Services | 39.0 | 64.6 | -39.6% | - The growth in urban operation and maintenance services revenue was mainly due to the initial success of the Group's operational business transformation and further optimization of its operational business structure[14](index=14&type=chunk) Gross Profit Change | Indicator | H1 2024 (million RMB) | H1 2023 (million RMB) | Change (%) | | :--- | :-------------------------- | :-------------------------- | :------- | | Gross Profit | 175.4 | 145.9 | +20.1% | - The increase in gross profit was mainly due to higher gross profit margins for completed and ongoing projects in the first half of 2024 compared to the same period last year, as well as the company's continued implementation of lean management and supply chain optimization, leading to reduced costs[16](index=16&type=chunk) Selling Expenses Change | Indicator | H1 2024 (million RMB) | H1 2023 (million RMB) | Change (%) | | :--- | :-------------------------- | :-------------------------- | :------- | | Selling Expenses | 12.5 | 7.5 | +66.7% | - The increase in selling expenses was primarily due to the establishment of new external markets, leading to increased personnel and rental costs[18](index=18&type=chunk) Expected Credit Loss Change | Indicator | H1 2024 (million RMB) | H1 2023 (million RMB) | Change (%) | | :--- | :-------------------------- | :-------------------------- | :------- | | Impairment Loss | 60.0 | 24.4 | +145.9% | - The significant increase in impairment loss was mainly due to the slow turnover of trade and other receivables and contract assets in the first half of 2024[19](index=19&type=chunk) Finance Costs Change | Indicator | H1 2024 (million RMB) | H1 2023 (million RMB) | Change (%) | | :--- | :-------------------------- | :-------------------------- | :------- | | Finance Costs | 25.0 | 32.3 | -22.6% | - The decrease in finance costs was primarily due to the timely replacement of high-interest debt when market interest rates declined, effectively reducing financing costs[20](index=20&type=chunk) Share of Profit/Loss of Associates and Joint Ventures | Indicator | H1 2024 (million RMB) | H1 2023 (million RMB) | Change (million RMB) | | :--- | :-------------------------- | :-------------------------- | :------------------ | | Share of profit of associates | 0.4 | 0.9 | -0.5 | | Share of (loss)/profit of joint ventures | -0.3 (loss) | 1.5 (profit) | -1.8 | - The fluctuation in the share of profit or loss of joint ventures was mainly due to an increase in expected credit losses for that joint venture[22](index=22&type=chunk) [Liquidity and Capital Structure](index=9&type=section&id=Liquidity%20and%20Capital%20Structure) As of June 30, 2024, the Group's net current assets slightly increased, cash and cash equivalents significantly decreased, and total borrowings rose, leading to a capital gearing ratio increase from **1.05 times** to **1.08 times** Net Current Assets Change | Indicator | June 30, 2024 (million RMB) | Dec 31, 2023 (million RMB) | Change (%) | | :--- | :--------------------------- | :---------------------------- | :------- | | Net Current Assets | 386.8 | 377.2 | +2.6% | - The increase in net current assets was mainly due to an increase in contract assets[24](index=24&type=chunk) Cash and Cash Equivalents Change | Indicator | June 30, 2024 (million RMB) | Dec 31, 2023 (million RMB) | Change (%) | | :--- | :--------------------------- | :---------------------------- | :------- | | Cash and Cash Equivalents | 61.2 | 210.4 | -70.9% | Total Borrowings Change | Indicator | June 30, 2024 (million RMB) | Dec 31, 2023 (million RMB) | Change (%) | | :--- | :--------------------------- | :---------------------------- | :------- | | Total Borrowings | 856.3 | 806.3 | +6.2% | - Approximately **RMB 775.7 million** of borrowings are repayable within one year[25](index=25&type=chunk) Capital Gearing Ratio Change | Indicator | June 30, 2024 | Dec 31, 2023 | Change | | :--- | :------------ | :------------- | :--- | | Capital Gearing Ratio | 1.08 times | 1.05 times | +0.03 times | - The increase in the capital gearing ratio was mainly due to an increase in bank and other borrowings and a decrease in total equity due to dividend distribution[26](index=26&type=chunk) - As of June 30, 2024, the Group had not breached any loan covenants related to bank and other borrowings[25](index=25&type=chunk) [Material Matters and Risks](index=10&type=section&id=Material%20Matters%20and%20Risks) In the first half of 2024, the Group had no major acquisitions or disposals, nor significant future investment plans, while providing guarantees for joint ventures and associates' bank loans totaling approximately **RMB 34.7 million** - The Group had no material acquisitions or disposals of subsidiaries, associates, and joint ventures in the first half of 2024[27](index=27&type=chunk) - As of June 30, 2024, the Group provided guarantees for bank loans granted to Tianjun Tourism, a joint venture, with an outstanding balance of **RMB 23,275,000**[28](index=28&type=chunk) - As of June 30, 2024, the Group provided guarantees for bank loans granted to Changchun Xianbang, an associate, with an outstanding balance of **RMB 11,413,000**[29](index=29&type=chunk) - The total financial guarantees issued were approximately **RMB 34.7 million** (June 30, 2024) and approximately **RMB 37.0 million** (December 31, 2023)[30](index=30&type=chunk) - As of the date of this report, the Group had no specific plans for any material investments or capital assets[31](index=31&type=chunk) - Given that the Group's operations are primarily located in China and denominated in RMB, currency risk is minimal[31](index=31&type=chunk) [Other Information](index=11&type=section&id=Other%20Information) This section covers dividend policy, employee information, equity disclosures for directors and major shareholders, and the company's corporate governance and compliance practices [Dividends and Employees](index=11&type=section&id=Dividends%20and%20Employees) The Board recommended no interim dividend for the first half of 2024, and as of June 30, 2024, the Group had **849 employees** with established remuneration and welfare policies reviewed by the Remuneration Committee - The Directors recommended no interim dividend for the first half of 2024 (first half of 2023: nil)[31](index=31&type=chunk) - As of June 30, 2024, the Group had **849 employees**[31](index=31&type=chunk) - The Group has formulated a 'Remuneration Management Policy' and welfare system, with the Remuneration Committee reviewing the remuneration policies and structures for directors, senior management, and employees[31](index=31&type=chunk) [Equity Disclosure](index=12&type=section&id=Equity%20Disclosure) This section details the share interests of directors and major shareholders in the company and its associated corporations as of June 30, 2024, confirming the company maintained sufficient public float Directors' Long Positions in Shares | Director Name | Nature of Interest | Related Company | Number of Shares Held/Interested | Approximate % of Issued Share Capital | | :--------- | :----------- | :------------------- | :----------------------- | :----------------------- | | Mr. Sun Juqing | Spouse's Interest | Zhongqing International Investment Co., Ltd. | 181,202,166 | 65.89% | | Mr. Liu Haitao | Controlled Corporation Interest | Zhongbang International Investment Co., Ltd. | 14,054,104 | 5.11% | Directors' Long Positions in Ordinary Shares of Associated Corporations | Director Name | Name of Associated Corporation | Capacity | Long/Short Position | Number of Shares Held in Associated Corporation | % of Shareholding | | :--------- | :----------- | :--------- | :-------- | :----------------------- | :--------- | | Mr. Sun Juqing | Zhongqing International | Beneficial Owner | Long | 62 | 62% | | Mr. Liu Haitao | Zhongqing International | Beneficial Owner | Long | 5 | 5% | | Mr. Liu Haitao | Zhongbang International | Beneficial Owner | Long | 6,011 | 60.11% | | Mr. Shao Zhangguang | Zhongqing International | Beneficial Owner | Long | 5 | 5% | Major Shareholders' Interests and Short Positions in Shares and Underlying Shares | Shareholder Name/Name | Nature of Interest | Long/Short Position | Number of Shares | Approximate % of Issued Share Capital | | :------------- | :----------- | :-------- | :---------- | :----------------------- | | Zhongqing International | Beneficial Owner | Long | 181,202,166 | 65.89% | | Ms. Zhao Hongyu | Controlled Corporation Interest | Long | 181,202,166 | 65.89% | | Mr. Sun Juqing | Spouse's Interest | Long | 181,202,166 | 65.89% | | Zhongbang International | Beneficial Owner | Long | 14,054,104 | 5.11% | | Mr. Liu Haitao | Controlled Corporation Interest | Long | 14,054,104 | 5.11% | | Ms. Wang Tiannv | Spouse's Interest | Long | 14,054,104 | 5.11% | - In the first half of 2024, the Company maintained a sufficient public float as required by the Listing Rules[40](index=40&type=chunk) [Corporate Governance and Compliance](index=14&type=section&id=Corporate%20Governance%20and%20Compliance) This section outlines Zonqing Environmental Co., Ltd.'s corporate governance practices, including business demarcation with controlling shareholders, shareholder rights protection, EGM mechanisms, director nomination procedures, share option scheme, securities trading compliance, post-reporting period share subdivision, and compliance with the Corporate Governance Code - The municipal construction businesses carried out by the Group and Zhongqing Investment Group are distinguishable in terms of geographical location and nature of services provided, with no material conflicts of interest[40](index=40&type=chunk) - To protect shareholders' interests and rights, all substantially separate matters should be proposed as separate resolutions at general meetings, and all resolutions will be voted on by poll[41](index=41&type=chunk) - Shareholders holding not less than one-tenth of the voting rights in the Company's share capital have the right to request the Board to convene an extraordinary general meeting at any time[42](index=42&type=chunk) - Shareholders intending to nominate a person for election as a director at a general meeting must submit a written notice and relevant information to the company within the prescribed period[44](index=44&type=chunk) - The Company has adopted a share option scheme to provide incentives to individuals who contribute to the company, but no share options have been granted under the scheme since its listing up to June 30, 2024[45](index=45&type=chunk) - In the first half of 2024, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[46](index=46&type=chunk) - Material related party transactions entered into by the Group in the first half of 2024 are set out in Note 19 and have complied with the disclosure requirements of Chapter 14A of the Listing Rules[48](index=48&type=chunk) - The Board implemented a share subdivision, effective August 1, 2024, whereby every existing issued and unissued share of **HKD 0.001** par value in the Company's share capital was subdivided into **three (3) subdivided shares** of **HKD 0.0003** par value each[50](index=50&type=chunk) - The Company has adopted the Corporate Governance Code in Appendix C1 of the Listing Rules and will continue to review and strengthen its corporate governance[51](index=51&type=chunk) - The Group's unaudited interim results for the six months ended June 30, 2024, have been reviewed by the Audit Committee[52](index=52&type=chunk) [Consolidated Statement of Profit or Loss](index=18&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) In the first half of 2024, Zonqing Environmental Co., Ltd.'s revenue decreased by **14.7%** to **RMB 775.6 million**, while gross profit increased by **20.1%** to **RMB 175.4 million**, with profit for the period remaining stable at **RMB 43.4 million** Key Data from Consolidated Statement of Profit or Loss | Indicator | H1 2024 (thousand RMB) | H1 2023 (thousand RMB) | Change (%) | | :--- | :------------------------ | :------------------------ | :------- | | Revenue | 775,648 | 909,819 | -14.7% | | Cost of sales | (600,287) | (763,885) | -21.4% | | Gross Profit | 175,361 | 145,934 | +20.1% | | Operating Profit | 72,036 | 75,986 | -5.2% | | Profit before tax | 47,141 | 46,077 | +2.3% | | Profit for the period | 43,412 | 43,491 | -0.2% | | Profit attributable to equity holders of the Company | 34,259 | 37,102 | -7.7% | | Earnings per share (RMB cents) | 12 | 13 | -7.7% | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=19&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In the first half of 2024, Zonqing Environmental Co., Ltd.'s profit for the period was **RMB 43.4 million**, and total comprehensive income was **RMB 43.9 million**, an increase from **RMB 40.3 million** in the prior period, mainly due to a net change from loss to gain in fair value reserve for equity investments at fair value through other comprehensive income Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | H1 2024 (thousand RMB) | H1 2023 (thousand RMB) | Change (%) | | :--- | :------------------------ | :------------------------ | :------- | | Profit for the period | 43,412 | 43,491 | -0.2% | | Other comprehensive income for the period | 504 | (3,182) | +115.8% | | Total comprehensive income for the period | 43,916 | 40,309 | +8.9% | - Among other comprehensive income, the net change in fair value reserve for equity investments at fair value through other comprehensive income shifted from a loss of **RMB 4,272 thousand** in the first half of 2023 to a gain of **RMB 66 thousand** in the first half of 2024[56](index=56&type=chunk) [Consolidated Statement of Financial Position](index=20&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, Zonqing Environmental Co., Ltd.'s total assets slightly decreased, but net current assets increased, with significant increases in intangible assets and right-of-use assets, and total equity growing to **RMB 793.8 million** Key Data from Consolidated Statement of Financial Position | Indicator | June 30, 2024 (thousand RMB) | Dec 31, 2023 (thousand RMB) | Change (%) | | :--- | :------------------------- | :-------------------------- | :------- | | Non-current assets | 504,745 | 483,933 | +4.3% | | Current assets | 3,352,217 | 3,362,493 | -0.3% | | Current liabilities | 2,965,388 | 2,985,285 | -0.7% | | Net current assets | 386,829 | 377,208 | +2.6% | | Non-current liabilities | 97,736 | 91,672 | +6.6% | | Total Equity | 793,838 | 769,469 | +3.2% | - Intangible assets increased from **RMB 1,938 thousand** to **RMB 7,703 thousand**, and right-of-use assets increased from **RMB 7,871 thousand** to **RMB 15,324 thousand**[57](index=57&type=chunk) - Contract assets increased from **RMB 1,118,463 thousand** to **RMB 1,376,653 thousand**, while cash and cash equivalents decreased from **RMB 210,405 thousand** to **RMB 61,190 thousand**[58](index=58&type=chunk) - Bank and other borrowings (current portion) increased from **RMB 726,263 thousand** to **RMB 775,700 thousand**[59](index=59&type=chunk) [Consolidated Statement of Changes in Equity](index=22&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2024, Zonqing Environmental Co., Ltd.'s total equity increased from **RMB 769.5 million** at the beginning of the period to **RMB 793.8 million**, with profit for the period at **RMB 43.4 million** and total comprehensive income at **RMB 43.9 million** Change in Total Equity | Indicator | Jan 1, 2024 (thousand RMB) | June 30, 2024 (thousand RMB) | Change (thousand RMB) | | :--- | :------------------------ | :------------------------ | :---------------- | | Total Equity | 769,469 | 793,838 | +24,369 | - Profit for the period was **RMB 43,412 thousand**, other comprehensive income was **RMB 504 thousand**, and total comprehensive income was **RMB 43,916 thousand**[64](index=64&type=chunk) - Dividends paid by the Company for shares amounted to **RMB (19,747) thousand**[64](index=64&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=24&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In the first half of 2024, Zonqing Environmental Co., Ltd.'s net cash used in operating activities significantly increased to **RMB 182.8 million**, net cash used in investing activities was **RMB 36.4 million**, and net cash generated from financing activities was **RMB 69.9 million**, resulting in a decrease in cash and cash equivalents to **RMB 61.2 million** at period-end Cash Flow Overview | Activity Type | H1 2024 (thousand RMB) | H1 2023 (thousand RMB) | Change (thousand RMB) | | :------- | :------------------------ | :------------------------ | :---------------- | | Net cash used in operating activities | (182,791) | (29,602) | -153,189 | | Net cash (used in)/generated from investing activities | (36,366) | 200,226 | -236,592 | | Net cash generated from/(used in) financing activities | 69,938 | (259,805) | +329,743 | | Net decrease in cash and cash equivalents | (149,219) | (89,181) | -60,038 | | Cash and cash equivalents at June 30 | 61,190 | 131,057 | -69,867 | - The significant increase in net cash used in operating activities was mainly due to cash used in operations increasing from **RMB (23,113) thousand** to **RMB (147,797) thousand**, and income tax paid increasing from **RMB (6,489) thousand** to **RMB (34,994) thousand**[65](index=65&type=chunk) - Cash outflows from investing activities primarily included payments for advances to related parties of **RMB (154,842) thousand**, payments for advances to third parties of **RMB (15,009) thousand**, and payments for loans granted to a joint venture of **RMB (23,493) thousand**[65](index=65&type=chunk) - Cash inflows from financing activities primarily originated from proceeds from bank and other borrowings of **RMB 1,051,220 thousand** and proceeds from advances from related parties of **RMB 39,502 thousand**[65](index=65&type=chunk) [Notes to the Unaudited Interim Financial Report](index=25&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) This section provides detailed explanatory notes to the unaudited interim financial statements, covering accounting policies, segment information, financial instrument disclosures, and related party transactions [Company and Basis of Preparation](index=25&type=section&id=Company%20and%20Basis%20of%20Preparation) This section outlines Zonqing Environmental Co., Ltd.'s registration, listing, principal business activities, ultimate controlling parties, and the basis of preparation for the interim financial report, including adopted accounting policy amendments - Zonqing Environmental Co., Ltd. was incorporated in the Cayman Islands on March 8, 2019, and listed on The Stock Exchange of Hong Kong Limited on January 6, 2021[66](index=66&type=chunk) - The Group is principally engaged in construction and maintenance services for landscaping, ecological restoration, and public works projects, provision of environmental sanitation services, and other related projects, and is ultimately controlled by Mr. Sun Juqing and Ms. Zhao Hongyu[66](index=66&type=chunk) - The interim financial report has been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and International Accounting Standard 34 'Interim Financial Reporting'[67](index=67&type=chunk) - The Group has applied amendments to IAS 1 regarding classification of liabilities, IFRS 16 regarding lease liabilities in a sale and leaseback, and IAS 7 and IFRS 7 regarding disclosure of supplier finance arrangements[69](index=69&type=chunk)[70](index=70&type=chunk) - In June 2023, the Group acquired an **87.5% equity interest** in Jilin Modern Zhongqing for a consideration of **RMB 305,756,000**, expanding its business into the municipal construction sector[67](index=67&type=chunk) [Operating Performance Analysis](index=27&type=section&id=Operating%20Performance%20Analysis) This section analyzes the Group's revenue composition, segment results, profit before tax sources, income tax calculation, and earnings per share, highlighting a decrease in total revenue but significant growth in urban operation and maintenance services revenue - The Group manages its business through three reportable segments: urban renewal construction services, urban operation and maintenance services, and design and consulting services[71](index=71&type=chunk) Revenue Breakdown by Major Product or Service | Segment | H1 2024 (thousand RMB) | H1 2023 (thousand RMB) | | :--- | :------------------------ | :------------------------ | | Urban Renewal Construction Services Revenue | 613,016 | 783,582 | | Urban Operation and Maintenance Services Revenue | 123,617 | 61,674 | | Design and Consulting Services Revenue | 39,015 | 64,563 | | **Total** | **775,648** | **909,819** | Gross Profit by Reportable Segment | Segment | H1 2024 (thousand RMB) | H1 2023 (thousand RMB) | | :--- | :------------------------ | :------------------------ | | Urban Renewal Construction Services | 143,449 | 115,975 | | Urban Operation and Maintenance Services | 28,045 | 9,977 | | Design and Consulting Services | 3,867 | 19,982 | | **Total Gross Profit** | **175,361** | **145,934** | Finance Costs | Item | H1 2024 (thousand RMB) | H1 2023 (thousand RMB) | | :--- | :------------------------ | :------------------------ | | Interest on bank and other borrowings and related party loans | 24,847 | 32,224 | | Interest on lease liabilities | 113 | 105 | | **Total** | **24,960** | **32,329** | - Research and development costs in the first half of 2024 were **RMB 36,677 thousand**, a decrease from **RMB 54,418 thousand** in the first half of 2023[81](index=81&type=chunk) - Four of the Group's subsidiaries established in China have obtained approval from tax authorities to pay tax at a preferential rate of **15%** as high-tech enterprises and enjoy an additional **100% deductible tax credit** for eligible R&D costs[84](index=84&type=chunk) - Basic earnings per share were calculated based on profit attributable to equity holders of the Company of **RMB 34,259,000** and **275,000,000 ordinary shares** issued during the interim period, amounting to **RMB 12 cents**[85](index=85&type=chunk) - For the six months ended June 30, 2024 and 2023, there were no outstanding potentially dilutive shares, thus diluted earnings per share were the same as basic earnings per share[86](index=86&type=chunk) [Notes to the Statement of Financial Position](index=33&type=section&id=Notes%20to%20the%20Statement%20of%20Financial%20Position) This section details the Group's contract assets and liabilities, trade receivables and payables, cash and cash equivalents, accrued expenses and other payables, bank and other borrowings, and deferred tax assets and liabilities as of June 30, 2024 Contract Assets | Item | June 30, 2024 (thousand RMB) | Dec 31, 2023 (thousand RMB) | | :--- | :------------------------- | :-------------------------- | | Contract Assets | 1,376,653 | 1,118,463 | - The increase in contract assets was mainly due to amounts due from third parties increasing from **RMB 1,201,777 thousand** to **RMB 1,455,722 thousand**[87](index=87&type=chunk) Contract Liabilities | Item | June 30, 2024 (thousand RMB) | Dec 31, 2023 (thousand RMB) | | :--- | :------------------------- | :-------------------------- | | Contract Liabilities | 555,845 | 602,071 | - The decrease in contract liabilities was mainly due to amounts due to third parties decreasing from **RMB 549,741 thousand** to **RMB 504,721 thousand**[89](index=89&type=chunk) Trade Receivables and Bills Receivable | Item | June 30, 2024 (thousand RMB) | Dec 31, 2023 (thousand RMB) | | :--- | :------------------------- | :-------------------------- | | Trade Receivables and Bills Receivable | 1,644,050 | 1,765,115 | Ageing Analysis of Trade Receivables and Bills Receivable (Net of Loss Allowance) | Ageing | June 30, 2024 (thousand RMB) | Dec 31, 2023 (thousand RMB) | | :--- | :------------------------- | :-------------------------- | | Within 1 year | 707,380 | 927,684 | | 1 to 2 years | 333,151 | 265,083 | | 2 to 3 years | 326,344 | 346,694 | | 3 to 4 years | 123,423 | 102,359 | | 4 to 5 years | 56,365 | 31,098 | | Over 5 years | 97,387 | 92,197 | | **Total** | **1,644,050** | **1,765,115** | Cash and Cash Equivalents | Item | June 30, 2024 (thousand RMB) | Dec 31, 2023 (thousand RMB) | | :--- | :------------------------- | :-------------------------- | | Cash and Cash Equivalents | 61,190 | 210,405 | | Restricted bank deposits | 14,846 | 20,346 | - Restricted bank deposits are primarily deposits pledged as security for bills issued and bank loans obtained by the Group[94](index=94&type=chunk) Trade Payables and Bills Payable | Item | June 30, 2024 (thousand RMB) | Dec 31, 2023 (thousand RMB) | | :--- | :------------------------- | :-------------------------- | | Trade Payables and Bills Payable | 1,354,125 | 1,389,181 | Ageing Analysis of Trade Payables and Bills Payable | Ageing | June 30, 2024 (thousand RMB) | Dec 31, 2023 (thousand RMB) | | :--- | :------------------------- | :-------------------------- | | Within 1 year | 718,606 | 1,078,377 | | 1 to 3 years | 454,224 | 190,745 | | Over 3 years | 181,295 | 120,059 | | **Total** | **1,354,125** | **1,389,181** | Accrued Expenses and Other Payables | Item | June 30, 2024 (thousand RMB) | Dec 31, 2023 (thousand RMB) | | :--- | :------------------------- | :-------------------------- | | Accrued Expenses and Other Payables | 245,526 | 211,540 | Bank and Other Borrowings | Item | June 30, 2024 (thousand RMB) | Dec 31, 2023 (thousand RMB) | | :--- | :------------------------- | :-------------------------- | | Total Bank and Other Borrowings | 856,256 | 806,210 | | Repayable within 1 year or on demand | 775,700 | 726,263 | | Repayable after 1 year but within 2 years | 78,734 | 78,135 | | Repayable after 2 years but within 5 years | 1,822 | 1,812 | - Certain bank loans of the Group are secured by trade receivables and contract assets (**RMB 65,416 thousand**) and bank deposits (**RMB 10,000 thousand**)[103](index=103&type=chunk) - As of June 30, 2024, no covenants related to bank loans were breached[106](index=106&type=chunk) Deferred Tax Assets and Liabilities | Item | June 30, 2024 (thousand RMB) | Dec 31, 2023 (thousand RMB) | | :--- | :------------------------- | :-------------------------- | | Net Deferred Tax Assets | 103,671 | 93,921 | | Net Deferred Tax Liabilities | (9,865) | (10,476) | - As of June 30, 2024, the issued and fully paid ordinary shares were **275,000,000 shares** with a par value of **HKD 0.001** each[109](index=109&type=chunk) - The Directors did not recommend the payment of a dividend for the six months ended June 30, 2024. For the six months ended June 30, 2024, a final dividend of **RMB 19,747,000** was declared for the year ended December 31, 2023[111](index=111&type=chunk) [Financial Instruments and Commitments](index=43&type=section&id=Financial%20Instruments%20and%20Commitments) This section describes the Group's fair value measurement methods for financial instruments, primarily involving Level 3 valuations for other equity investments, and discloses capital commitments and contingent liabilities, including bank loan guarantees for joint ventures and associates - The fair value of the Group's financial instruments measured on a recurring basis at the end of the reporting period, primarily other equity investments, is categorized under **Level 3 valuation**[113](index=113&type=chunk) - Valuation techniques for other equity investments include the market comparable company approach (discount for lack of marketability: **20.5%**) and the discounted cash flow method (discount rates: **7% and 9.3%**)[114](index=114&type=chunk) Fair Value Changes of Unlisted Equity Securities | Item | H1 2024 (thousand RMB) | H1 2023 (thousand RMB) | | :--- | :------------------------ | :------------------------ | | As at January 1 | 70,141 | 75,622 | | Net unrealized gain/(loss) recognized in other comprehensive income during the period | 78 | (4,186) | | As at June 30 | 70,219 | 71,436 | - As of June 30, 2024, authorized but not contracted capital commitments amounted to **RMB 12,304 thousand**[118](index=118&type=chunk) - The Group has issued guarantees for bank loans granted to Tianjun Tourism, a joint venture, with an outstanding balance of **RMB 23,275,000** as of June 30, 2024[119](index=119&type=chunk) - The Group has issued guarantees for bank loans granted to Changchun Xianbang, an associate, with an outstanding balance of **RMB 11,413,000** as of June 30, 2024[120](index=120&type=chunk) [Material Related Party Transactions](index=46&type=section&id=Material%20Related%20Party%20Transactions) This section details significant related party transactions between the Group and key management personnel, Zhongqing Investment and its subsidiaries, joint ventures, associates, and companies managed by Zhongqing Investment's key management personnel, including service provision, goods purchases, loan transactions, and financial guarantees Key Management Personnel Remuneration | Item | H1 2024 (thousand RMB) | H1 2023 (thousand RMB) | | :--- | :------------------------ | :------------------------ | | Salaries and other emoluments | 6,045 | 3,762 | | Defined contribution retirement plan contributions | 509 | 282 | | **Total** | **6,554** | **4,044** | - Transactions with Zhongqing Investment and its subsidiaries, joint ventures, and associates include providing construction, surveying, design, technical consulting, and other services (**RMB 27,675 thousand**), receiving services (**RMB 433 thousand**), purchasing goods (**RMB 1,712 thousand**), and significant loan and advance transactions[123](index=123&type=chunk) - Transactions with a joint venture primarily involved income from financial guarantees issued of **RMB 1,225 thousand** and loans granted to a related party of **RMB 23,493 thousand**[124](index=124&type=chunk) - Transactions with an associate primarily involved providing construction services of **RMB 9,271 thousand**, loans granted to a related party of **RMB 5,840 thousand**, and income from financial guarantees issued of **RMB 1,087 thousand**[124](index=124&type=chunk) - Transactions with companies managed by key management personnel of Zhongqing Investment included providing other services (**RMB 8,120 thousand**) and purchasing goods (**RMB 17,365 thousand**)[126](index=126&type=chunk) - All advances to and from related parties are unsecured, interest-free, and have no fixed repayment terms. All loans from and to related parties are unsecured and have fixed repayment terms[130](index=130&type=chunk) [Non-Adjusting Events After the Reporting Period](index=50&type=section&id=Non-Adjusting%20Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, the Board implemented a share subdivision, effective August 1, 2024, splitting each share of **HKD 0.001** par value into three subdivided shares of **HKD 0.0003** par value each - Effective August 1, 2024, every existing issued and unissued share of **HKD 0.001** par value in the Company's share capital was subdivided into **three (3) subdivided shares** of **HKD 0.0003** par value each[132](index=132&type=chunk) - Following the share subdivision, the Company's authorized share capital became **HKD 10,000,000**, divided into **30,000,000,000 subdivided shares**, of which **825,000,000 subdivided shares** are issued and fully paid[132](index=132&type=chunk) [Definitions and Glossary of Technical Terms](index=50&type=section&id=Definitions%20and%20Glossary%20of%20Technical%20Terms) This chapter provides definitions for key terms and technical vocabulary used throughout the report, ensuring a clear understanding of the content for readers - Provides clear definitions for commonly used terms in the report such as 'first half of 2023', 'first half of 2024', 'Articles of Association', 'Board', 'Corporate Governance Code', 'Controlling Shareholder', 'Listing Rules', 'RMB', 'Shares', 'Stock Exchange', 'Ultimate Controlling Shareholder', and 'Zhongqing Investment'[134](index=134&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk)

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 775,648,000, a decrease of 14.7% compared to RMB 909,819,000 for the same period in 2023[2] - Gross profit increased to RMB 175,361,000, up 20.1% from RMB 145,934,000 year-on-year[2] - Operating profit for the period was RMB 72,036,000, slightly down from RMB 75,986,000 in the previous year[2] - Net profit attributable to equity shareholders was RMB 34,259,000, compared to RMB 37,102,000 in the same period last year, reflecting a decrease of 7.4%[2] - Basic and diluted earnings per share were RMB 12, down from RMB 13 in the previous year[2] - Total comprehensive income for the period was RMB 43,916,000, an increase from RMB 40,309,000 in the prior year[5] - The company reported a net income before tax of RMB 47,141,000 for the six months ended June 30, 2024, slightly up from RMB 46,077,000 in the same period of 2023, reflecting a growth of 2.3%[23] - The financing costs decreased to RMB 24,960,000 in the first half of 2024 from RMB 32,329,000 in the same period of 2023, a reduction of approximately 22.7%[25] - Research and development expenses were RMB 36,677,000 for the six months ended June 30, 2024, down from RMB 54,418,000 in the same period of 2023, representing a decrease of about 32.6%[26] - The total administrative expenses decreased to RMB 38,017,000 in the first half of 2024 from RMB 42,299,000 in the same period of 2023, a decline of about 10.7%[23] - The company’s income tax expense for the six months ended June 30, 2024, was RMB 3,729,000, compared to RMB 2,586,000 for the same period in 2023, reflecting an increase of approximately 44.1%[27] Revenue Breakdown - Revenue from urban renewal construction services was RMB 613,016,000, down 21.8% from RMB 783,582,000 in the previous year[18] - Urban operation and maintenance services revenue increased significantly to RMB 123,617,000, up 100.3% from RMB 61,674,000 in the prior year[18] - Revenue from design and consulting services decreased to RMB 39,015,000, down 39.8% from RMB 64,563,000 in the previous year[18] - The group's revenue decreased by approximately 14.7% from RMB 909.8 million in H1 2023 to RMB 775.6 million in H1 2024, primarily due to a reduction in newly approved large contracts and slower project progress[49] - Revenue from the urban renewal construction services segment fell by about 21.8% from RMB 783.6 million in H1 2023 to RMB 613.0 million in H1 2024, attributed to fewer new large contracts and a decline in average contract value[50] - The urban operation and maintenance services segment saw a revenue increase of approximately 100.3%, rising from RMB 61.7 million in H1 2023 to RMB 123.6 million in H1 2024, due to successful operational business transformation[51] Assets and Liabilities - Non-current assets as of June 30, 2024, amounted to RMB 504,745,000, compared to RMB 483,933,000 at the end of 2023[6] - Current assets decreased to RMB 3,352,217,000 from RMB 3,362,493,000 at the end of 2023[8] - Total liabilities were RMB 2,965,388,000, slightly down from RMB 2,985,285,000 at the end of 2023[10] - Total equity increased to RMB 793,838,000 from RMB 769,469,000 at the end of 2023[12] - The company’s contract assets amounted to RMB 1,376,653,000 as of June 30, 2024, an increase from RMB 1,118,463,000 as of December 31, 2023, indicating a growth of approximately 23.1%[31] - The net current assets of the group rose by approximately 2.6% or RMB 9.6 million from approximately RMB 377.2 million on December 31, 2023, to approximately RMB 386.8 million on June 30, 2024, primarily due to an increase in contract assets[63] - As of June 30, 2024, trade receivables amounted to RMB 1,644.05 million, with an expected collection within one year[40] - Trade payables totaled RMB 1,354.13 million as of June 30, 2024, with all expected to be settled within one year[42] Strategic Initiatives - The company aims to enhance its integrated business model in cultural tourism and continue pursuing quality improvements in infrastructure projects[48] - The company plans to maintain a customer-centric approach and focus on sustainable development while actively seeking opportunities for qualification upgrades and project awards[48] - The company continues to focus on high-quality development and actively responds to challenges while seizing opportunities for growth[47] - The company maintains a strong bidding capability and continues to integrate qualifications to enhance its competitive advantage in the market[44] Innovation and Development - The company obtained 2 invention patents and 5 utility model patents in the first half of 2024, reflecting ongoing innovation efforts[45] - The share of profits from joint ventures decreased by approximately 55.5% from RMB 0.9 million in H1 2023 to RMB 0.4 million in H1 2024, reflecting challenges in joint venture performance[60] - Expected credit loss impairment for trade and other receivables was approximately RMB 60.0 million in H1 2024, up from RMB 24.4 million in H1 2023, due to slower turnover of receivables[57] Corporate Governance - The audit committee reviewed the unaudited interim results and financial report for the six months ended June 30, 2024[76] - The board of directors includes executive directors Liu Haitao (Vice Chairman) and Wang Yan, as well as non-executive and independent directors[78] - The company declared a final dividend of RMB 0.071 per share for the fiscal year ending December 31, 2023, totaling RMB 19.75 million[43] - The group had 849 employees as of June 30, 2024, and has established a systematic compensation policy to ensure transparency and fairness[71] Market Conditions - The company's revenue growth in the first half of 2024 was impacted by a complex domestic and international environment, with China's GDP growing by 5.0% year-on-year[47] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures in the first half of 2024[66] - The group has no specific plans for significant investments or capital assets as of the announcement date[70] Financial Ratios - The debt-to-equity ratio increased from 1.05 times on December 31, 2023, to 1.08 times on June 30, 2024, mainly due to an increase in bank loans and a decrease in total equity due to dividends[65] - As of June 30, 2024, the group had cash and cash equivalents of approximately RMB 61.2 million, a decrease from approximately RMB 210.4 million on December 31, 2023[64] - The company has not identified any need for reclassification of liabilities as current or non-current following the adoption of new accounting standards[15]

Financial Performance - Revenue for the year ended December 31, 2023, reached RMB 2,355,497 thousand, a 111.0% increase from RMB 1,116,442 thousand in 2022[8] - Gross profit increased by 132.7% to RMB 450,848 thousand, compared to RMB 193,752 thousand in the previous year[8] - Profit before tax was RMB 172,652 thousand, a significant turnaround from a loss of RMB 114,749 thousand in 2022, representing a 250.5% change[8] - Net profit for the year was RMB 153,225 thousand, compared to a loss of RMB 96,688 thousand in the prior year, marking a 258.5% improvement[8] - Basic and diluted earnings per share increased to RMB 49, up from a loss of RMB 35 in 2022, reflecting a 240% change[8] - Total comprehensive income for the year amounted to RMB 148,903 thousand, a substantial increase from a loss of RMB 87,170 thousand in the previous year, representing a 270.8% change[8] Revenue Breakdown - The revenue breakdown for fiscal year 2023 shows that urban renewal construction services accounted for approximately 85.9%, urban operation services for 9.3%, and design and consulting services for 4.8% of total revenue[10] - The revenue from the urban renewal construction services segment rose by approximately 134.4% from about RMB 863.7 million in the fiscal year 2022 to approximately RMB 2,024.2 million in the fiscal year 2023, driven by an increase in newly approved contract value[25] - The urban operation and maintenance services segment's revenue increased by approximately 47.5% from about RMB 148.4 million in the fiscal year 2022 to approximately RMB 219.0 million in the fiscal year 2023, also due to an increase in newly approved contract value[26] - The revenue from the design and consulting services segment increased from approximately RMB 104.4 million in FY2022 to approximately RMB 112.3 million in FY2023, representing a growth of about 7.6% or approximately RMB 7.9 million[27] Assets and Liabilities - Non-current assets decreased by 2.0% to RMB 483,933 thousand from RMB 493,793 thousand in 2022[8] - Current assets decreased by 8.9% to RMB 3,362,493 thousand, down from RMB 3,689,191 thousand in the previous year[8] - Current liabilities decreased by 5.9% to RMB 2,985,285 thousand, compared to RMB 3,172,460 thousand in 2022[8] - Total equity decreased by 16.2% to RMB 769,469 thousand from RMB 918,015 thousand in the previous year[8] Employee and Operational Management - Employee costs for the fiscal year 2023 amounted to approximately RMB 169.7 million, with a total of 899 employees as of December 31, 2023[13] - The company has a total of 899 employees across various departments, with the largest number in the construction and engineering department at 480 employees[14] - The company has established a training program to enhance employee skills and technical expertise, with a focus on construction techniques and workflows[18] - The company emphasizes risk management as crucial for operational efficiency, with no significant internal control deficiencies reported for the fiscal year 2023[12] Market Strategy and Expansion - The company plans to deepen customer value creation and enhance core market competitiveness through digitalization and innovation, aiming for greater breakthroughs in the cultural tourism project sector nationwide in 2024[9] - The company is focusing on expanding its market presence nationally while solidifying its base in Changchun, particularly in urban maintenance and ecological restoration projects[10][11] - The company plans to expand its market presence in Guangdong Province through the acquisition of Guangdong Fengyue Construction Engineering Co., Ltd., obtaining a first-class qualification for municipal public engineering construction[22] Corporate Governance - The company has adopted and complies with the corporate governance code as stated in Appendix C1 of the listing rules, ensuring effective accountability and transparency[64] - The board consists of eight members, including two executive directors, three non-executive directors, and three independent non-executive directors, all of whom are committed to continuous professional development[67] - The company emphasizes high standards of corporate governance to ensure integrity and effective internal management measures[64] - The management team includes experienced professionals with extensive backgrounds in engineering and finance, contributing to the company's strategic direction[62] Risk Management and Compliance - The company’s overall risk management plan focuses on minimizing potential adverse impacts from industry and market unpredictability[179] - The company has not reported any significant violations of applicable laws and regulations during the fiscal year 2023[105] - The independent non-executive directors confirmed that the controlling shareholder has complied with the non-competition agreement since the listing date, with no violations reported[184] Environmental, Social, and Governance (ESG) - The report covers the group's environmental, social, and governance (ESG) management policies and practices for the fiscal year 2023[189] - The company recognizes the increasing environmental regulatory requirements and sustainable development trends as both opportunities and challenges for its operations[193] - Key ESG issues identified include research and development innovation, employee development, and training, which are prioritized for sustainable development[197] - The company aims to improve its governance and risk management levels while enhancing its environmental and social responsibility management[195] Financial Guarantees and Debt - As of December 31, 2023, the group provided a financial guarantee for a bank loan of RMB 310,000,000 for Tianjun Travel, with a remaining balance of RMB 315,000,000[48] - The expected credit loss for the financial guarantee issued for Tianjun Travel as of December 31, 2023, is RMB 5,289,000[48] - The group also provided a financial guarantee for a bank loan of RMB 330,000,000 for Changchun Xianbang, with a remaining balance of RMB 136,150,000 as of December 31, 2023[49] - The expected credit loss for the financial guarantee issued for Changchun Xianbang as of December 31, 2023, is RMB 3,412,000[49] Shareholder Information - The proposed final dividend for the year ended December 31, 2023, is RMB 0.071 per share, with a payout ratio of approximately 14.5%[50] - The company has no distributable reserves available for distribution to shareholders as of December 31, 2023[109] - The company will hold its annual general meeting on June 14, 2024, to approve the proposed final dividend[102]

Financial Performance - Revenue for the fiscal year ended December 31, 2023, was RMB 2,355,497, an increase of 111.1% compared to RMB 1,116,442 in 2022[2] - Gross profit for the fiscal year was RMB 450,848, representing a gross margin of approximately 19.1%, up from RMB 193,752 in 2022[2] - Operating profit for the year was RMB 240,807, a significant recovery from an operating loss of RMB 41,803 in the previous year[2] - Net profit attributable to equity shareholders was RMB 135,206, compared to a loss of RMB 96,343 in 2022, marking a turnaround[2] - Earnings per share for the year was RMB 49, compared to a loss per share of RMB 35 in the previous year[2] - Total comprehensive income for the year was RMB 148,903, compared to a loss of RMB 87,170 in 2022[4] - The pre-tax profit for the year ended December 31, 2023, was RMB 172,652,000, compared to a loss of RMB 114,749,000 in 2022[32] - The gross profit for the reportable segments totaled RMB 450,848 thousand in 2023, compared to RMB 193,752 thousand in 2022, reflecting a growth of 132.5%[24] - The gross profit margin improved to 19.1% in fiscal year 2023 from 17.4% in 2022, while the net profit margin turned positive at 6.5% compared to a loss margin of -8.7% in 2022[85] Assets and Liabilities - Current assets decreased to RMB 3,362,493 from RMB 3,689,191 in the previous year, reflecting a decline of approximately 8.8%[6] - Total liabilities decreased to RMB 2,985,285 from RMB 3,172,460, indicating a reduction of about 5.9%[6] - The company's net assets decreased to RMB 769,469 from RMB 918,015, a decline of approximately 16.2%[7] - The company's contract assets decreased to RMB 1,118,463,000 in 2023 from RMB 1,055,709,000 in 2022, showing a decline of approximately 5.9%[37] - Total bank and other loans decreased to RMB 806,210 thousand in 2023 from RMB 1,053,713 thousand in 2022, a decline of 23.5%[44] - The total amount of trade receivables and contract assets as of December 31, 2023, includes 16.7% from the group's largest debtor and 54.1% from the top five debtors[95] Acquisitions and Investments - The company acquired 100% equity of Jilin Jinghe Design Engineering Co., Ltd. for RMB 12,207,000 and a third-party acquisition for RMB 378,000 in July 2022[10] - In June 2023, the company purchased 87.5% equity of Jilin Modern Zhongqing Urban Construction Co., Ltd. for RMB 305,756,000, with payment completed in July 2023[10] - The company completed the acquisition of Jilin Modern Zhongqing, which is expected to enhance its operational capabilities and expand its service offerings[21] - The group plans to expand into the Guangdong market through the acquisition of Guangdong Fengyue Construction Engineering Co., Ltd., obtaining a first-class qualification for municipal public engineering construction[61] Revenue Sources and Growth - Revenue sources for fiscal year 2023 were primarily from urban renewal construction services (85.9%), urban operation services (9.3%), and design and consulting services (4.8%)[56] - The revenue from urban renewal construction services reached RMB 2,024,246 thousand in 2023, a remarkable increase of 134.0% from RMB 863,659 thousand in 2022[18] - The urban operation and maintenance services segment's revenue increased by approximately 47.5% from RMB 148.4 million in FY2022 to RMB 219.0 million in FY2023, also due to new contract approvals[65] Expenses and Costs - Employee costs decreased to RMB 169,734,000 in 2023 from RMB 173,243,000 in 2022, representing a reduction of approximately 2.9%[29] - Research and development expenses significantly increased to RMB 85,542,000 in 2023, up from RMB 44,198,000 in 2022, marking an increase of approximately 93.6%[30] - Administrative expenses increased by approximately 5.6% from RMB 86.8 million in FY2022 to RMB 91.7 million in FY2023, primarily due to increased tax expenses related to higher operating income[69] - Financing costs decreased by approximately 6.7% from RMB 69.9 million in FY2022 to RMB 65.1 million in FY2023, due to lower interest expenses[71] Credit and Receivables - Trade receivables and notes impairment losses were RMB 115,539 thousand in 2023, compared to RMB 66,795 thousand in 2022, showing an increase of 73.0%[27] - The aging analysis shows that trade receivables due within one year rose to RMB 927,684 thousand in 2023 from RMB 735,224 thousand in 2022, a growth of 26.1%[40] - Expected credit loss provisions decreased from RMB 138.5 million in FY2022 to RMB 110.1 million in FY2023, attributed to improved cash collection and reduced loss rates[70] Governance and Compliance - The company has adopted the corporate governance code as outlined in Appendix C1 of the listing rules[103] - The audit committee consists of three independent non-executive directors, with Mr. Li Guodong as the chairman[104] - The financial statements for the fiscal year ending December 31, 2023, have been reviewed by the auditors, KPMG[105] Future Outlook and Strategy - The central government's economic work meeting emphasized a favorable outlook for economic recovery in 2024, focusing on stability and progress in the construction industry[60] - The group aims to enhance its operational efficiency and effectiveness through risk management, with no significant internal control deficiencies reported for fiscal year 2023[59] - The company plans to expand its integrated cultural and tourism business and enhance operational management through digitalization, targeting new markets in cities like Shenzhen, Guangzhou, and Chongqing[62]

Business Performance - In the first half of 2023, the company submitted 272 bids with a success rate of approximately 41.54%, resulting in new project contracts worth approximately RMB 2,209.03 million[17]. - Major projects won include the construction of infrastructure for the Jingyuetan Scenic Area in Changchun, with a bid price of approximately RMB 459.48 million, and the PPP project for urban enhancement in Changchun New Area, with a bid price of approximately RMB 751.90 million[17]. - The total new project contract amount for the first half of 2023 was RMB 2,209.0 million, a significant increase of 1,278.9% compared to RMB 160.2 million in the same period of 2022[21]. - The group's revenue increased by approximately 149.1% from RMB 365.3 million in the first half of 2022 to approximately RMB 909.8 million in the first half of 2023[23]. - Revenue for the six months ended June 30, 2023, was RMB 909,819 thousand, a significant increase from RMB 365,267 thousand in the same period of 2022, representing a growth of approximately 149.5%[62]. - The revenue from the urban renewal construction services segment rose by about 182.7% from RMB 277.2 million in the first half of 2022 to approximately RMB 783.6 million in the first half of 2023[24]. - The revenue from the design and consulting services segment increased by approximately 247.3% from RMB 18.6 million in the first half of 2022 to approximately RMB 64.6 million in the first half of 2023[26]. - The group's gross profit rose by approximately 183.8% from RMB 51.4 million in the first half of 2022 to approximately RMB 145.9 million in the first half of 2023[27]. - Gross profit for the same period was RMB 145,934 thousand, compared to RMB 51,393 thousand in 2022, indicating a gross margin improvement[62]. Awards and Recognition - The company received several industry awards, including the first prize for landscape and ecological environment design at the National Excellent Survey and Design Awards[18]. - The company has been recognized as a "Specialized, Refined, Characteristic, and Innovative" small and medium-sized enterprise in Jilin Province for 2023[18]. - The company has won multiple awards for construction safety and quality, enhancing its reputation in the industry[19]. Financial Management - The company has not encountered any significant internal control deficiencies in financial reporting during the first half of 2023[20]. - The company is focusing on risk management, evaluating major risks such as investment risk, interest rate risk, and liquidity risk[20]. - Financing costs decreased by approximately 11.0% from RMB 36.3 million in the first half of 2022 to approximately RMB 32.3 million in the first half of 2023[29]. - Other net income decreased by approximately 8.5% from RMB 4.7 million in the first half of 2022 to approximately RMB 4.3 million in the first half of 2023[28]. - Administrative expenses increased by approximately 12.5% from RMB 37.6 million in the first half of 2022 to approximately RMB 42.3 million in the first half of 2023, mainly due to increased intermediary fees related to the acquisition of Jilin Modern Zhongqing[28]. - The group's share of profits from joint ventures decreased by approximately 42.2% from RMB 1.6 million in the first half of 2022 to about RMB 0.9 million in the first half of 2023[30]. - The group's share of profits from a joint venture decreased by approximately 57.1% from RMB 3.5 million in the first half of 2022 to about RMB 1.5 million in the first half of 2023[31]. - Income tax increased from a loss of approximately RMB 10.3 million in the first half of 2022 to a profit of about RMB 2.6 million in the first half of 2023, indicating a turnaround in profitability[32]. Asset and Liability Management - Current assets decreased by approximately 48.9% from RMB 516.7 million as of December 31, 2022, to about RMB 264.0 million as of June 30, 2023[33]. - Cash and cash equivalents decreased from approximately RMB 220.2 million as of December 31, 2022, to about RMB 131.1 million as of June 30, 2023[33]. - The debt-to-equity ratio increased from 1.1 times as of December 31, 2022, to 1.2 times as of June 30, 2023, primarily due to the acquisition of Jilin Modern Zhongqing[34]. - The group completed the acquisition of 87.5% equity in Jilin Modern Zhongqing on June 30, 2023, with no other significant acquisitions or disposals reported in the first half of 2023[35]. - The group provided guarantees for bank loans amounting to RMB 330 million for both Tianjiao Tourism and Changchun Xianbang, with outstanding balances of RMB 330 million and RMB 170.35 million respectively as of June 30, 2023[37][38]. - As of June 30, 2023, the financial guarantees issued by the group amounted to approximately RMB 30.1 million, down from RMB 31.8 million as of December 31, 2022[39]. - The group has no specific plans for significant investments or capital assets as of the report date[40]. - The group did not declare an interim dividend for the first half of 2023, consistent with the previous year[40]. - The company’s total equity attributable to shareholders was RMB 903,447,000 as of June 30, 2023[84]. - The company’s total liabilities as of June 30, 2023, included deferred tax liabilities amounting to RMB (12,072,000), compared to RMB (12,762,000) as of December 31, 2022, showing a reduction of approximately 5.4%[177]. Corporate Governance - The compensation committee, consisting of three independent non-executive directors, has been established to review the compensation policies for directors and senior management[40]. - The company has adopted the corporate governance code as outlined in the listing rules and will continue to enhance its corporate governance practices[59]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim results for the six months ended June 30, 2023[61]. - The company has established a code of conduct for directors regarding securities trading, ensuring compliance since the listing date[58]. - The company has implemented independent resolutions for shareholder matters to protect shareholder rights[50]. - The company has maintained compliance with all loan covenants as of June 30, 2023, with no violations reported[165]. Future Plans and Strategies - The company is committed to expanding its presence in external markets while solidifying its base in Changchun[17]. - The group plans to expand its operations to cities including Tianjin, Chongqing, Beijing, Shandong, and Guangzhou, aiming for national market development[22]. - The company aims to continue its strategic expansion and development of new technologies in the environmental sector[17]. - The company plans to expand its services in ecological restoration and public engineering projects, aiming for increased market share[99]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its service offerings[99]. - The company plans to improve cash flow by expediting invoicing and collection of trade receivables, actively participating in tenders, negotiating payment terms with suppliers, and reducing operating expenses[104]. Research and Development - Research and development costs surged to RMB 54,418 thousand, compared to RMB 17,378 thousand, reflecting a growth of 213.5%[125]. - The company has invested in new technologies for environmental services, enhancing operational efficiency and service delivery[99]. Shareholder Information - Major shareholders include Zhongqing International, holding 181,202,166 shares, representing approximately 65.89% of the issued share capital[47]. - Liu Haitao holds 14,054,104 shares in Zhongbang International, accounting for approximately 5.11% of the issued share capital[47]. - No arrangements were made during the first half of 2023 that would allow directors or key executives to acquire any interests in the company's shares[45]. - The company maintains sufficient public float as per listing rules in the first half of 2023[49]. - No share options have been granted under the share option plan since the company's listing, with 27,500,000 options available for grant as of June 30, 2023[54]. - The company did not declare any interim dividends for the six months ended June 30, 2023, consistent with the previous year where no dividends were declared[171][172].