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].

Financial Highlights [Consolidated Income Statement](index=2&type=section&id=Consolidated%20Income%20Statement) In the first half of 2023, the company achieved a significant turnaround, with net profit reaching RMB 43.5 million compared to a loss of RMB 68.3 million in the prior year, driven by a 149.1% increase in total revenue to RMB 910 million and a substantial 183.9% rise in gross profit Consolidated Income Statement Key Metrics (For the six months ended June 30) | Indicator | 2023 (RMB '000) | 2022 (RMB '000, Restated) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 909,819 | 365,267 | +149.1% | | Gross Profit | 145,934 | 51,393 | +183.9% | | Operating Profit/(Loss) | 75,986 | (47,308) | Turnaround to Profit | | Profit/(Loss) for the Period | 43,491 | (68,255) | Turnaround to Profit | | Profit/(Loss) Attributable to Equity Holders of the Company | 37,102 | (65,240) | Turnaround to Profit | | Basic Earnings/(Loss) Per Share (RMB cents) | 13 | (24) | Turnaround to Profit | [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2023, the company's total assets were RMB 3.70 billion, with total liabilities at RMB 3.04 billion, while net assets decreased to RMB 661 million from RMB 918 million at the end of 2022, primarily due to the consideration paid for the acquisition of Jilin Modern Zhongqing Consolidated Balance Sheet Key Metrics | Indicator | June 30, 2023 (RMB '000) | December 31, 2022 (RMB '000, Restated) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 487,997 | 493,793 | -1.2% | | Current Assets | 3,208,753 | 3,689,191 | -13.0% | | **Total Assets** | **3,696,750** | **4,182,984** | **-11.6%** | | Current Liabilities | 2,944,798 | 3,172,465 | -7.2% | | Non-current Liabilities | 91,082 | 92,509 | -1.5% | | **Total Liabilities** | **3,035,880** | **3,264,974** | **-7.0%** | | **Net Assets** | **660,870** | **918,010** | **-28.0%** | | Cash and Cash Equivalents | 131,057 | 220,233 | -40.5% | | Bank and Other Loans (Current + Non-current) | 819,420 | 1,053,713 | -22.2% | Notes to Financial Statements [Basis of Preparation and Accounting Policies](index=7&type=section&id=1.%20Basis%20of%20Preparation%20and%20Accounting%20Policies) This interim financial information is prepared in accordance with IAS 34, with comparative figures for 2022 restated due to the acquisition of Jilin Modern Zhongqing, a business combination under common control, and management has assessed the group's liquidity, deeming the going concern basis appropriate - Due to the acquisitions of Jilin Modern Zhongqing and Jilin Jinghe Design, these common control business combinations have been accounted for under merger accounting principles, and comparative figures for the corresponding period in 2022 have been restated accordingly[11](index=11&type=chunk) - Management has formulated multiple initiatives, including accelerating collections, negotiating payments, securing new financing, and obtaining financial support commitments from the controlling shareholder, to address liquidity needs and believes the Group has sufficient funds for continued operation[12](index=12&type=chunk)[13](index=13&type=chunk) [Revenue and Segment Reporting](index=9&type=section&id=3.%20Revenue%20and%20Segment%20Reporting) During the reporting period, the company's operations were categorized into three segments: Urban Renewal Construction Services, Urban Operation and Maintenance Services, and Design and Consulting Services, with total revenue of RMB 910 million, where Urban Renewal Construction Services served as the primary driver for both revenue and gross profit, contributing over 85% of revenue and nearly 80% of gross profit, achieving robust growth Revenue by Segment (For the six months ended June 30) | Segment | 2023 (RMB '000) | 2022 (RMB '000, Restated) | YoY Change | | :--- | :--- | :--- | :--- | | Urban Renewal Construction Services | 783,582 | 277,212 | +182.7% | | Urban Operation and Maintenance Services | 61,674 | 69,436 | -11.2% | | Design and Consulting Services | 64,563 | 18,619 | +246.8% | | **Total** | **909,819** | **365,267** | **+149.1%** | Gross Profit by Segment (For the six months ended June 30) | Segment | 2023 (RMB '000) | 2022 (RMB '000, Restated) | YoY Change | | :--- | :--- | :--- | :--- | | Urban Renewal Construction Services | 115,975 | 36,258 | +219.9% | | Urban Operation and Maintenance Services | 9,977 | 18,193 | -45.2% | | Design and Consulting Services | 19,982 | (3,058) | Turnaround to Profit | | **Total** | **145,934** | **51,393** | **+183.9%** | - All of the Group's revenue is derived from China, with no significant assets or operations outside of China[24](index=24&type=chunk) [Notes on Key Financial Items](index=13&type=section&id=Notes%20on%20Key%20Financial%20Items) This section details key items impacting profit and loss and financial position, including a decrease in finance costs due to reduced exchange losses, a significant over 200% year-on-year increase in R&D costs, and a long aging profile for trade receivables, with approximately 46% overdue by more than one year [Profit/(Loss) Before Tax](index=13&type=section&id=4.%20Profit%2F%28Loss%29%20Before%20Tax) Finance costs decreased by 11.0% year-on-year to RMB 32.33 million, primarily due to the absence of exchange losses on bank loans this period, while R&D costs significantly increased by 213% to RMB 54.42 million, reflecting increased investment in research and development - Finance costs decreased from RMB 36.30 million in the prior year to **RMB 32.33 million**, primarily due to no exchange losses on bank loans recorded in the current period[25](index=25&type=chunk) - Research and development costs significantly increased from RMB 17.38 million in the prior year to **RMB 54.42 million**, a year-on-year increase of **213%**[26](index=26&type=chunk) [Income Tax](index=14&type=section&id=5.%20Income%20Tax) The Group's income tax expense was RMB 2.59 million, compared to a tax credit of RMB 10.25 million in the prior year, a change primarily driven by the company's shift from loss to profit, with four Chinese subsidiaries recognized as high-tech enterprises enjoying a preferential 15% corporate income tax rate - Four of the Group's Chinese subsidiaries are recognized as high-tech enterprises, enjoying a preferential income tax rate of **15%** and a **100%** super deduction for R&D expenses[28](index=28&type=chunk) [Earnings/(Loss) Per Share](index=15&type=section&id=6.%20Earnings%2F%28Loss%29%20Per%20Share) Basic and diluted earnings per share for the first half of 2023 were RMB 13 cents, a significant improvement compared to a loss of RMB 24 cents per share in the prior year, with no potentially dilutive outstanding shares during the reporting period Earnings/(Loss) Per Share Calculation | Indicator | For the six months ended June 30, 2023 | For the six months ended June 30, 2022 (Restated) | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Equity Holders of the Company (RMB '000) | 37,102 | (65,240) | | Number of Ordinary Shares in Issue (shares) | 275,000,000 | 275,000,000 | | Basic and Diluted Earnings/(Loss) Per Share (RMB cents) | 13 | (24) | [Contract Assets and Liabilities](index=15&type=section&id=7.%20Contract%20Assets%20and%20Liabilities) As of the period end, net contract assets decreased to RMB 922 million from RMB 1.056 billion at the beginning of the year, and contract liabilities also decreased to RMB 429 million from RMB 583 million, with all contract liabilities expected to be recognized as revenue within one year Contract Assets and Liabilities Balances | Item | June 30, 2023 (RMB '000) | December 31, 2022 (RMB '000, Restated) | | :--- | :--- | :--- | | Contract Assets (net of loss allowance) | 922,096 | 1,055,709 | | Contract Liabilities | 428,885 | 583,036 | [Trade and Bills Receivables](index=17&type=section&id=8.%20Trade%20and%20Bills%20Receivables) As of the period end, net trade and bills receivables were RMB 1.556 billion, largely consistent with the beginning of the year, but aging analysis reveals approximately 46% (RMB 716 million) are over one year old, indicating collection pressure Trade and Bills Receivables Aging Analysis (Net of loss allowance) | Aging | June 30, 2023 (RMB '000) | Percentage | | :--- | :--- | :--- | | Within 1 year | 839,774 | 54.0% | | 1 to 2 years | 363,983 | 23.4% | | 2 to 3 years | 151,629 | 9.7% | | Over 3 years | 200,962 | 12.9% | | **Total** | **1,556,348** | **100.0%** | [Trade and Bills Payables](index=18&type=section&id=9.%20Trade%20and%20Bills%20Payables) As of the period end, total trade and bills payables were RMB 1.131 billion, a decrease from RMB 1.237 billion at the beginning of the year, with approximately 46% (RMB 526 million) of payables aged over one year Trade and Bills Payables Aging Analysis | Aging | June 30, 2023 (RMB '000) | Percentage | | :--- | :--- | :--- | | Within 1 year | 605,664 | 53.5% | | 1 to 3 years | 362,525 | 32.1% | | Over 3 years | 163,283 | 14.4% | | **Total** | **1,131,472** | **100.0%** | [Dividends](index=19&type=section&id=10.%20Dividends) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2023 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2023 (H1 2022: Nil)[41](index=41&type=chunk) Management Discussion and Analysis [Business Review](index=20&type=section&id=Business%20Review) In the first half of 2023, the Group significantly expanded its business, securing new contracts totaling RMB 2,209 million, a 1278.9% year-on-year increase, successfully winning several large projects exceeding RMB 100 million, particularly achieving new breakthroughs in the Changchun area, while its subsidiaries received multiple industry awards for quality engineering - In the first half of 2023, the Group submitted **272 bids**, with a successful bid rate of approximately **41.54%**, securing new project contracts worth approximately **RMB 2,209 million**[43](index=43&type=chunk) - Major projects won include: Changchun New Area Urban Improvement Project (approx. **RMB 752 million**), Jingyuetan Scenic Area Infrastructure Project (approx. **RMB 459 million**), and Yitong River Basin Ecological Restoration Project (approx. **RMB 524 million**)[43](index=43&type=chunk)[46](index=46&type=chunk) - Subsidiaries including Jinghe Design Group, Zhongbang Ecological Environment, and Changchun Urban Construction Maintenance received multiple provincial and national quality engineering awards and corporate honors during the reporting period[44](index=44&type=chunk) [Outlook](index=22&type=section&id=Outlook) Looking ahead, the Group will capitalize on national policy opportunities in the "14th Five-Year Plan," urban renewal, and cultural tourism integration, leveraging its "culture, commerce, tourism, and engineering integrated" synergistic advantage, while consolidating its Changchun base, planning to expand into national markets like Tianjin, Chongqing, and Beijing, and extending into full-process consulting services to achieve sustained healthy development - The Group will leverage national policy support for cultural tourism, urban renewal, and infrastructure construction, especially the investment from local government special bonds, to expand its business[46](index=46&type=chunk) - Strategic priorities include: leveraging the "culture, commerce, tourism, and engineering integrated" synergistic business advantage, consolidating the Changchun market while expanding into national cities such as Tianjin, Chongqing, Beijing, Shandong, and Guangzhou, and planning to jointly explore markets with partners[47](index=47&type=chunk) - The company will continue to upgrade qualifications, stabilize and enhance corporate credit, and actively apply for various outstanding design and engineering awards, laying a solid foundation for performance growth[47](index=47&type=chunk) [Financial Review](index=24&type=section&id=Financial%20Review) The Group demonstrated strong financial performance, with total revenue increasing by 149.1% to RMB 910 million and gross profit rising by 183.8% to RMB 146 million, primarily driven by the Urban Renewal Construction Services segment, which saw revenue growth of 182.7%, attributed to a low base effect from COVID-19 lockdowns in the prior year and an increase in newly approved large contracts this period Revenue Performance by Segment (For the six months ended June 30) | Segment | 2023 Revenue (RMB million) | 2022 Revenue (RMB million, Restated) | YoY Change | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Urban Renewal Construction Services | 783.6 | 277.2 | +182.7% | Increase in newly approved large contracts | | Urban Operation and Maintenance Services | 61.7 | 69.4 | -11.1% | A large-scale environmental sanitation project expired in 2022 | | Design and Consulting Services | 64.6 | 18.6 | +247.3% | Undertaking newly approved large consulting projects | - The significant overall revenue growth was primarily due to: (i) a lower base in H1 2022 caused by COVID-19 lockdowns in Changchun; and (ii) an increase in newly approved contracts in H1 2023[48](index=48&type=chunk) - Administrative expenses increased by **12.5%**, mainly due to increased intermediary fees related to the acquisition of Jilin Modern Zhongqing[55](index=55&type=chunk) - Finance costs decreased by **11.0%**, primarily because no net exchange losses on bank loans were recorded in the first half of 2023[56](index=56&type=chunk) [Liquidity and Capital Structure](index=27&type=section&id=Liquidity%20and%20Capital%20Structure) As of the period end, the Group held cash and cash equivalents of RMB 131 million, while net current assets significantly decreased from RMB 517 million to RMB 264 million due to the consideration paid for the acquisition of Jilin Modern Zhongqing, and the gearing ratio slightly increased from 1.1 times to 1.2 times due to a reduction in total equity Liquidity and Capital Structure Key Metrics | Indicator | June 30, 2023 | December 31, 2022 (Restated) | | :--- | :--- | :--- | | Cash and Cash Equivalents (RMB million) | 131.1 | 220.2 | | Total Borrowings (RMB million) | 819.4 | 1,053.7 | | Net Current Assets (RMB million) | 264.0 | 516.7 | | Gearing Ratio (Borrowings/Total Equity) | 1.2 times | 1.1 times | - The decrease in net current assets was primarily due to the payment of consideration to Zhongqing Investment for the acquisition of Jilin Modern Zhongqing[61](index=61&type=chunk) [Significant Acquisitions and Investments](index=27&type=section&id=Significant%20Acquisitions%20and%20Investments) During the reporting period, the Group completed a significant acquisition of an 87.5% equity interest in Jilin Modern Zhongqing on June 30, 2023, with no other major acquisitions, disposals, or significant investment matters - Apart from the acquisition of an **87.5%** equity interest in Jilin Modern Zhongqing completed on June 30, 2023, the Group had no other significant acquisitions or disposals in the first half of 2023[64](index=64&type=chunk) [Contingent Liabilities](index=28&type=section&id=Contingent%20Liabilities) As of the period end, the Group had contingent liabilities primarily from providing financial guarantees for bank loans of its joint venture, Tianjun Tourism, and associate, Changchun Xianbang, with the total unamortized balance of issued financial guarantees amounting to approximately RMB 30.1 million as of June 30, 2023 - The Group provided guarantees for bank loans of its joint venture, Tianjun Tourism, with an outstanding loan balance of **RMB 330 million**, and the Group's unamortized guarantee balance was **RMB 20.171 million**[66](index=66&type=chunk) - The Group provided guarantees for bank loans of its associate, Changchun Xianbang, with an outstanding loan balance of **RMB 170 million**, and the Group's unamortized guarantee balance was **RMB 9.879 million**[66](index=66&type=chunk) Other Information [Dividend Policy](index=29&type=section&id=Dividend%20Policy) The Board of Directors has recommended not to declare an interim dividend for the first half of 2023 - The Board of Directors recommends no interim dividend for the first half of 2023 (H1 2022: Nil)[69](index=69&type=chunk) [Employee and Remuneration Policy](index=29&type=section&id=Employee%20and%20Remuneration%20Policy) As of June 30, 2023, the Group had 844 employees, and the company has established a remuneration committee and a systematic remuneration management policy to ensure fairness and transparency in its compensation system - As of June 30, 2023, the Group had **844 employees**[70](index=70&type=chunk) [Corporate Governance](index=30&type=section&id=Corporate%20Governance) The company has adopted the Corporate Governance Code in Appendix 14 of the Listing Rules, and its audit committee, comprising three independent non-executive directors, has reviewed the unaudited interim results for the current period - The company's audit committee, composed of three independent non-executive directors, has reviewed the Group's unaudited interim results and interim financial report for the six months ended June 30, 2023[73](index=73&type=chunk)

Financial Performance - Revenue for the year ended December 31, 2022, was RMB 653,441 thousand, a decrease of 30.2% from RMB 936,595 thousand in 2021[23] - Gross profit decreased by 36.6% to RMB 134,004 thousand from RMB 211,230 thousand in the previous year[23] - The company reported a loss before tax of RMB 124,560 thousand, compared to a profit of RMB 37,006 thousand in 2021, representing a decline of 436.6%[23] - Net loss for the year was RMB 106,004 thousand, a significant decrease from a profit of RMB 33,410 thousand in 2021, marking a decline of 417.3%[23] - Basic and diluted loss per share was RMB (39), compared to earnings of RMB 12 in the previous year, reflecting a decrease of 425.0%[23] - The company’s revenue for the fiscal year 2022 decreased by approximately 30.2% to RMB 653.4 million from RMB 936.6 million in the fiscal year 2021, primarily due to the impact of COVID-19 lockdowns in Changchun[37] Assets and Liabilities - Non-current assets increased slightly by 1.6% to RMB 391,990 thousand from RMB 385,865 thousand in 2021[23] - Current assets rose by 3.2% to RMB 2,058,323 thousand, compared to RMB 1,993,922 thousand in the previous year[23] - Current liabilities increased by 12.3% to RMB 1,951,668 thousand from RMB 1,738,198 thousand in 2021[23] - Total equity decreased by 19.4% to RMB 486,950 thousand from RMB 604,077 thousand in the previous year[23] Revenue Sources - The main sources of revenue in fiscal year 2022 were landscaping (approximately 75.9%), ecological restoration (11.1%), and others (13.0%) of total revenue[26] - The landscaping segment's revenue fell by approximately 29.7% to RMB 496.1 million in fiscal year 2022 from RMB 705.4 million in fiscal year 2021, largely due to pandemic-related construction delays[39] - The revenue from the ecological restoration segment decreased by approximately 51.7% from RMB 150.6 million in FY2021 to RMB 72.8 million in FY2022, primarily due to COVID-19 lockdowns in Changchun[40] - The revenue from other segments increased by approximately 5.0% from RMB 80.6 million in FY2021 to RMB 84.6 million in FY2022, attributed to more projects won and completed[41] Project Bidding and Success - The company submitted 403 bids in fiscal year 2022, an increase of 27.5% from the previous year, with a bid success rate of 19.6%, up by 6 percentage points[26] - The total value of successful bids increased from approximately RMB 443.9 million in fiscal year 2021 to about RMB 1,053.2 million in fiscal year 2022[26] - The number of completed projects in the fiscal year 2022 was 71, with 287 ongoing projects at year-end, reflecting an increase in total project numbers due to a higher bid success rate[38] Employee and Operational Management - As of December 31, 2022, the company had 555 employees, with a total employee cost of RMB 121.7 million for the fiscal year[28] - The company emphasizes continuous professional development for its employees, focusing on enhancing technical capabilities and skills[30] - The company aims to enhance its core competitiveness through continuous technological innovation and expand its municipal business operations[36] - The company will continue to strengthen its operational capabilities and talent training to support its strategic objectives in 2023[36] Financial Risks and Credit Management - The group faces various business risks, including economic conditions and changes in local government spending, which could significantly impact performance[69] - Financial risks include credit risk, liquidity risk, interest rate risk, and foreign exchange risk, with a low currency risk due to operations primarily in RMB[72] - The group has implemented policies to ensure sales are made to customers with appropriate credit records, resulting in limited credit risk[73] Corporate Governance - The company has adopted the corporate governance code as outlined in Appendix 14 of the Listing Rules, except for the provision C.2.1, which states that the roles of Chairman and CEO should be separate[89] - The board consists of eight members, including two executive directors, three non-executive directors, and three independent non-executive directors[91] - The company emphasizes high standards of corporate governance to ensure integrity, transparency, and effective internal management measures[89] - The board is responsible for leading and monitoring the company, formulating overall strategies, and approving business plans[91] Shareholder Engagement and Dividends - The company reported no dividends for the fiscal year 2022[119] - As of December 31, 2022, the company had no distributable reserves for shareholders, compared to zero in 2021[125] - Shareholders have the right to request a special general meeting if they hold at least 10% of the voting shares, which must be held within two months of the request[113] Environmental, Social, and Governance (ESG) Initiatives - The company has committed to environmental policies aimed at minimizing its impact on natural resources[123] - This is the third Environmental, Social, and Governance (ESG) report released by Zhongqing Environment Holdings Limited, detailing management policies and practices in ESG areas[200] Related Party Transactions - The group entered into significant related party transactions, including purchasing goods worth approximately RMB 491,000 from related parties, down from RMB 1.14 million in the previous year[169] - The board confirmed compliance with the Listing Rules Chapter 14A regarding continuing connected transactions, and a certified public accountant has been engaged to report on these transactions[179]

Financial Performance - For the fiscal year ended December 31, 2022, the total revenue was RMB 653,441 thousand, a decrease of 30.3% compared to RMB 936,595 thousand in the previous year[2] - The gross profit for the fiscal year was RMB 134,004 thousand, down 36.5% from RMB 211,230 thousand in the prior year[2] - The net loss for the year was RMB 106,004 thousand, compared to a profit of RMB 33,410 thousand in the previous year, representing a significant decline[3] - Revenue from landscaping services decreased to RMB 496,081,000 in 2022 from RMB 705,371,000 in 2021, representing a decline of approximately 29.6%[18] - Revenue from ecological restoration services also saw a decline, falling to RMB 72,779,000 in 2022 from RMB 150,607,000 in 2021, a decrease of about 51.7%[18] - Other income for 2022 was RMB 7,087 thousand, significantly lower than RMB 23,402 thousand in 2021, marking a decrease of around 69.7%[28] - The gross profit for the landscaping segment in 2022 was RMB 134,004 thousand, down from RMB 211,230 thousand in 2021, indicating a decrease of about 36.5%[26] - The ecological restoration segment generated a gross profit of RMB 15,438 thousand in 2022, compared to RMB 20,050 thousand in 2021, reflecting a decline of approximately 23.5%[24] - The company's revenue for the fiscal year 2022 was approximately RMB 653.4 million, a decrease of about 30.2% compared to the fiscal year 2021[61] - The company's gross profit declined by approximately 36.6% from RMB 211.2 million in FY2021 to RMB 134.0 million in FY2022, reflecting the overall revenue decrease[72] Assets and Liabilities - The company reported a decrease in total assets from RMB 1,993,922 thousand in 2021 to RMB 2,058,323 thousand in 2022, an increase of 3.2%[6] - The current assets net value decreased from RMB 255,724 thousand in 2021 to RMB 106,655 thousand in 2022, a decline of 58.3%[7] - The total equity attributable to shareholders decreased from RMB 594,627 thousand in 2021 to RMB 480,213 thousand in 2022, a drop of 19.3%[8] - The company's total liabilities were RMB 1,738.2 million, with current liabilities at RMB 943.4 million[57] - Trade receivables amounted to RMB 1,107,341,000 in 2022, compared to RMB 1,021,689,000 in 2021[46] - The company's trade payables decreased to RMB 785,538,000 in 2022 from RMB 943,446,000 in 2021[47] - The debt-to-equity ratio increased from 0.9 in 2021 to 1.4 in 2022 due to an increase in bank and other loans[94] - The net debt-to-equity ratio rose from 0.8 in 2021 to 1.1 in 2022, also due to increased borrowings[95] Cash Flow and Financing - The company incurred financing costs of RMB 40,311 thousand, compared to RMB 38,007 thousand in the previous year, an increase of 6.1%[2] - 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[11] - The company is in discussions with banks to renew short-term bank loans and/or secure additional bank financing to address liquidity needs[12] - The group has received a commitment from its controlling shareholder, Zhongqing Investment, to provide necessary financial support, including the renewal of short-term loans[12] - The company has fully utilized its bank financing as of December 31, 2022, with no covenants breached[54] - Total borrowings increased from RMB 504.6 million in 2021 to RMB 663.2 million in 2022, with all bank financing utilized as of December 31, 2022[88] Operational Strategy and Future Plans - The company plans to focus on environmental restoration and related projects, aiming for market expansion in the coming fiscal year[9] - The company plans to focus on new infrastructure projects, urban renewal, and major infrastructure developments in 2023, aligning with government policies to boost economic growth[65] - The company aims to enhance its market presence and operational efficiency by pursuing a dual strategy of full-process consulting and general contracting[66] - The government plans to issue RMB 3.8 trillion in special bonds to support infrastructure projects in 2023, which is expected to benefit the company's business[65] - The company will continue to expand its business in smart city construction, smart tourism, and smart water management projects in the new infrastructure sector[66] Risk Management and Governance - The overall risk management plan focuses on minimizing potential adverse impacts on financial performance due to market unpredictability[101] - The company has adopted the corporate governance code as per the listing rules, except for the provision C.2.1 regarding the separation of roles between the Chairman and CEO[112] - The audit committee consists of three independent non-executive directors, who have reviewed the accounting standards and financial reporting matters for the fiscal year 2022[113] Employee and Operational Metrics - The group has a total of 555 employees as of December 31, 2022, with a compensation committee established to review the compensation policies[110] - The company submitted 403 bids in fiscal year 2022, an increase of 87 bids or approximately 27.5% from the previous year, with a bid success rate of 19.6%, up by 6 percentage points[61] - The total value of successful bids increased from approximately RMB 443.9 million in fiscal year 2021 to approximately RMB 1,053.2 million in fiscal year 2022[61] Taxation and Compliance - The company benefited from a preferential tax rate of 15% for certain subsidiaries in China, unchanged from 2021[35] - The current tax expense for 2022 was RMB 5,446 thousand, down from RMB 13,875 thousand in 2021, representing a decrease of approximately 60.7%[33] - Income tax expense decreased from RMB 3.6 million in FY2021 to a tax benefit of RMB -18.6 million in FY2022, mainly due to increased expected credit losses[79]

Project Bids and Contracts - In the first half of 2022, the company submitted 128 bids with a success rate of approximately 17.2%, resulting in new project contracts worth approximately RMB 160.2 million[9] - The company won the bid for the Changchun Shuangyang District Shixi River Phase III landscape and urban street greening project with a bid price of approximately RMB 111.6 million[9] - In July 2022, the company successfully won a public works project with a contract amount of approximately RMB 25.2 million, leveraging its existing second-level qualification for municipal public engineering contracting[11] - The successful bid rate for new contracts dropped to approximately 17.2% in the first half of 2022, with new contract amounts totaling RMB 160.2 million, compared to a 20.0% success rate and RMB 287.8 million in the first half of 2021[14] - The company maintains its bidding capabilities while actively pursuing external project contracts[9] Revenue and Financial Performance - The company's revenue decreased by approximately 37.2% from RMB 362.1 million in the first half of 2021 to RMB 227.3 million in the first half of 2022, primarily due to the impact of COVID-19 lockdowns in Changchun[14] - The landscaping segment's revenue fell by about 26.4% from RMB 265.2 million in the first half of 2021 to RMB 195.3 million in the first half of 2022, mainly due to reduced construction periods caused by lockdowns[17] - The ecological restoration segment's revenue plummeted by approximately 72.6% from RMB 90.0 million in the first half of 2021 to RMB 24.7 million in the first half of 2022, attributed to fewer new contracts and completed large projects[18] - The company's gross profit decreased by approximately 53.7% from RMB 81.2 million in the first half of 2021 to RMB 37.6 million in the first half of 2022, with the gross margin dropping from about 22.4% to 16.5%[20] - The company reported a net loss of RMB 41,524 thousand for the six months ended June 30, 2022, compared to a profit of RMB 16,487 thousand in the prior year[70] Cost Management and Expenses - Administrative expenses decreased by approximately 30.6% from RMB 32.0 million in the first half of 2021 to RMB 22.2 million in the first half of 2022, due to a reduction in employee numbers and decreased operational costs during lockdowns[24] - Financing costs increased by approximately 13.3% from RMB 17.3 million in H1 2021 to RMB 19.6 million in H1 2022, primarily due to an increase in bank and other loan amounts[25] - The company plans to improve cash flow by accelerating invoicing and collection of trade receivables, actively participating in tenders, negotiating payment terms with suppliers, and reducing operating expenses[80] Corporate Strategy and Future Plans - The company plans to expand its ecological and smart business lines and aims to establish branches in Beijing, Shandong, and Guangzhou[11] - The company aims to enhance its credit rating to AAA and apply for national and provincial design awards to improve its design qualifications[11] - The company is committed to becoming a leading brand in ecological environment construction and cultural tourism industry operations, focusing on a comprehensive transformation driven by "design + operation"[13] - The company plans to focus on market expansion and new product development to improve future performance[69] - The company is in discussions with banks to renew short-term loans and secure additional financing[80] Shareholder and Governance Information - The board of directors recommended not to declare an interim dividend for the first half of 2022[41] - The company has adopted the corporate governance code as per the listing rules, ensuring the separation of roles between the chairman and the CEO[66] - The company emphasizes the importance of good corporate governance elements in its management structure and internal controls[66] - Shareholders must submit written notices for nominations at least seven days before the relevant meeting date[58] Impacts of COVID-19 - The COVID-19 pandemic has caused project delays and a reduction in new contracts, impacting the company's operational and financial conditions[142] - The company has implemented emergency measures to mitigate the impact of COVID-19, including reassessing suppliers and subcontractors, and negotiating payment extensions to improve cash management[142] - As of June 30, 2022, the company recorded additional impairment losses on contract assets and trade receivables due to the pandemic's effect on clients' repayment capabilities[142] - The company remains optimistic about controlling the pandemic and is closely monitoring the situation to take necessary emergency measures[142] Investments and Acquisitions - Acquired 20% equity in Tianjin Nankang for approximately RMB 4.72 million and completed the acquisition of 97% equity in Jilin Province Jinghe Design Engineering Co., Ltd. in July 2022[32] - The company completed the acquisition of 97% equity in Jilin Jinghe Design in July 2022, which has since become a subsidiary[65] - The remaining 3% equity of Jilin Jinghe Design was acquired for approximately RMB 0.38 million, equivalent to 3% of the net asset value as of December 31, 2020[65] Market Presence and User Engagement - The company plans to expand its market presence by entering three new provinces in China by the end of 2022, aiming for a market share increase of 5%[147] - User data showed an increase in active users, with a total of 1.2 million new users acquired in the last quarter, representing a growth rate of 20%[147] - Customer satisfaction ratings improved, with a reported increase of 12% in positive feedback from users in the latest survey[147] Financial Position and Assets - Net current assets decreased by approximately 20.0% from RMB 248.3 million as of December 31, 2021, to RMB 198.7 million as of June 30, 2022, primarily due to a loss of RMB 41.5 million in H1 2022[29] - Cash and cash equivalents decreased from approximately RMB 46.7 million as of December 31, 2021, to RMB 29.8 million as of June 30, 2022[29] - The company's total equity attributable to equity shareholders was RMB 545,935 thousand, down from RMB 585,311 thousand at the end of 2021[74] - The company reported a significant increase in impairment losses on trade and other receivables and contract assets, amounting to RMB 46,269 thousand compared to RMB 13,399 thousand in the previous year[69] Compliance and Audit - The interim financial report for the six months ended June 30, 2022, was reviewed by KPMG and approved by the company's audit committee[68] - The financial report has been reviewed and found to comply with International Accounting Standard 34, with no significant issues identified[145]

Financial Performance - The company's revenue for the year ended December 31, 2021, was RMB 896,747,000, a decrease of 10.5% compared to RMB 1,001,427,000 in 2020[24] - Gross profit for the same period was RMB 191,798,000, down 19.6% from RMB 238,432,000 in the previous year[24] - Net profit for the year was RMB 28,382,000, representing a decline of 58.8% from RMB 68,941,000 in the prior year[24] - Total comprehensive income for the year was RMB 31,219,000, down 56.3% from RMB 71,381,000 in 2020[24] - Basic and diluted earnings per share were RMB 0.10, a decrease from RMB 0.31 in the previous year[24] - The company's profit before tax decreased by 68.4% to RMB 31,415,000 from RMB 99,352,000 in 2020[24] - The gross profit margin declined from approximately 23.8% in fiscal year 2020 to about 21.4% in fiscal year 2021[50] - The net profit margin fell from 6.9% in 2020 to 3.1% in 2021, primarily due to reduced earnings[78] Market Conditions - In the fiscal year 2021, the overall domestic construction market experienced a slowdown, with the GDP growth rate at 8.1%, declining to 4.9% in Q3 and further to 4.0% in Q4[26] - The landscaping industry faces short-term challenges due to stricter regulations on special bonds and a sluggish real estate market, leading to increased competition[28][30] - The overall profit margin in the construction industry has declined, and the number of construction enterprises continues to increase, intensifying market competition[27] - The landscaping market in China is projected to reach approximately RMB 596.9 billion by 2024, with a compound annual growth rate of about 2.9% from 2019 to 2024[27] Business Development - The company has made significant progress in developing markets outside Jilin Province, securing new projects in regions such as Liaoning, Inner Mongolia, Tianjin, Chongqing, and Sichuan[25] - The company plans to enhance its qualifications through acquisitions and upgrades, focusing on obtaining Class I qualifications for municipal public engineering construction and Class A qualifications for architectural design by 2022[25] - The company is actively developing new products based on smart infrastructure and cultural tourism projects, laying the foundation for future growth[25] - The company aims to enhance its core competitiveness through continuous technological innovation and expand its market presence in ecological governance[44] - The company plans to focus on new infrastructure projects, new urbanization, and major infrastructure developments as key market opportunities[43] Employee and Management - Employee costs for the fiscal year 2021 amounted to RMB 108.1 million, with a total of 469 employees as of December 31, 2021[37] - The group has focused on continuous professional development for employees, providing regular training to enhance skills and technical expertise[39] - The management team has extensive experience in the construction industry, with key executives holding over 20 years of management experience[99][100] - The company has a strong management team with diverse backgrounds in finance, engineering, and construction, enhancing its operational capabilities[103] - The company is committed to enhancing its corporate governance practices to comply with the corporate governance code[108] Risk Management - The group is committed to risk management, evaluating major risks such as investment and liquidity risks, with no significant internal control deficiencies reported[36] - The group faces various business risks, including economic conditions and changes in local government spending, which could impact demand for landscaping and ecological restoration projects[87] - The company has implemented policies to ensure sales are made to customers with appropriate credit records, limiting credit risk exposure[91] - The group regularly monitors its liquidity position to maintain sufficient cash reserves and comply with loan covenants[92] Corporate Governance - The company is committed to maintaining high governance standards with a diverse board composition, including independent directors with extensive industry experience[104] - The company has adopted the corporate governance code as per the listing rules, ensuring accountability and transparency in internal management practices[108] - The board includes members with significant experience in municipal engineering and environmental projects, aligning with the company's strategic focus[104] - The company has a structured internal control system to maintain high standards of corporate governance[108] Financial Position - Non-current assets increased by 4.7% to RMB 383,441,000 from RMB 366,237,000 in 2020[24] - Current assets rose by 10.0% to RMB 1,869,412,000 compared to RMB 1,699,903,000 in the previous year[24] - The company's net asset value increased by 22.9% to RMB 594,761,000 from RMB 483,810,000 in 2020[24] - The total debt as of December 31, 2021, was approximately RMB 504.6 million, an increase from RMB 480.0 million in 2020[76] - The current ratio improved from 1.1 in 2020 to 1.2 in 2021, indicating better short-term liquidity[79] Shareholder Engagement - The company aims to maintain transparency and continuous dialogue with shareholders through effective communication[130] - The company did not recommend the payment of dividends for the fiscal year 2021[137] - As of December 31, 2021, the company had no reserves available for distribution to shareholders, compared to zero reserves in 2020[143] Stock Option Plan - The stock option plan aims to provide incentives to contributors to the company and its subsidiaries[147] - The stock option plan is effective from the date of shareholder approval until the tenth anniversary of the listing date, allowing for a maximum of 27,500,000 shares to be issued, which is 10% of the total shares issued post-listing[150][161] - The plan allows for the granting of stock options to full-time or part-time employees, consultants, and other qualified participants as determined by the board[147] - The company has not granted any stock options under the plan since its establishment[148]

Company Information The report provides fundamental company information, including details on board members, committees, auditors, legal counsel, principal bankers, and share registrar - The report provides fundamental company information, including details on board members, committee compositions, auditors, legal advisors, principal bankers, and share registrar[4](index=4&type=chunk)[6](index=6&type=chunk) Management Discussion and Analysis [Business Review and Outlook](index=5&type=section&id=Business%20Review%20and%20Outlook) In H1 2021, group revenue slightly increased by **1.2% to RMB 362.1 million**, driven by landscape and ecological restoration, with new qualifications and major project wins increasing bid value by **RMB 268.8 million**, and future growth expected from national environmental policies and expanded qualifications [Business Review](index=5&type=section&id=Business%20Review) H1 2021 revenue reached **RMB 362.1 million**, a **1.2% increase**, with landscape and ecological restoration as primary contributors, alongside securing three new qualifications and winning major projects that boosted total bid value by **RMB 268.8 million** H1 2021 Business Overview | Metric | Value | | :--- | :--- | | Total Revenue | Approximately RMB 362.1 million | | Revenue Y-o-Y Growth | Approximately 1.2% | | Landscape Business Revenue Share | 73.2% | | Ecological Restoration Business Revenue Share | 24.8% | | Bid Value Y-o-Y Growth | Approximately RMB 268.8 million | - The Group obtained three new enterprise qualifications in building construction, hydraulic and hydropower engineering, and urban road lighting engineering during the period, which will facilitate future business undertakings[7](index=7&type=chunk) - The Group successfully bid for several major projects, including Changchun Beihu Science and Technology Development Zone Landscape Greening Project (**RMB 107.6 million**), Lianhuashan Road Greening Project (**RMB 113.6 million**), and Hangzhou Huangjinfan Ecological Landscape Project (**RMB 36 million**)[7](index=7&type=chunk) [Risk Management](index=5&type=section&id=Risk%20Management) Management assists the Board in assessing significant risks, including investment, interest rate, and liquidity, and implements corresponding risk management and internal control measures, with no material internal control deficiencies in financial reporting during the period - The Group had no material internal control deficiencies in financial reporting during H1 2021[8](index=8&type=chunk) [Outlook](index=6&type=section&id=Outlook) Benefiting from national policies like the '14th Five-Year Plan' and carbon neutrality goals, the ecological and environmental protection sector offers broad prospects, with the Group planning to acquire Grade I municipal public works construction qualification to expand its business scope and enhance competitiveness - The national '14th Five-Year Plan' and carbon peak and neutrality targets provide a favorable policy environment for the Group[10](index=10&type=chunk) - The Group plans to acquire Grade I municipal public works construction general contracting qualification in H2, and considers Grade II highway engineering construction general contracting qualification to expand municipal and highway engineering services[10](index=10&type=chunk) [Financial Review](index=7&type=section&id=Financial%20Review) In H1 2021, revenue slightly increased by **1.2% to RMB 362.1 million**, but gross profit decreased by **7.2% to RMB 81.2 million**, with gross margin falling to **22.4%**; income tax expense significantly reduced by **54.3%** due to high-tech enterprise status, while net current assets grew by **50.5%** and gearing ratio decreased to **0.9** [Operating Results](index=7&type=section&id=Operating%20Results) H1 2021 revenue was **RMB 362.1 million**, up **1.2%**, with landscape revenue growing **42.2%** while ecological restoration and other businesses declined; gross profit fell **7.2% to RMB 81.2 million**, with gross margin at **22.4%**, primarily due to reduced contribution from high-margin 'other' businesses, and income tax decreased **54.3%** due to tax incentives H1 2021 Segment Revenue (RMB million) | Business Segment | H1 2021 | H1 2020 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Landscape | 265.2 | 186.5 | +42.2% | | Ecological Restoration | 90.0 | 144.8 | -37.8% | | Other | 6.9 | 26.6 | -74.1% | | **Total** | **362.1** | **357.9** | **+1.2%** | - Gross profit decreased by **7.2%** from **RMB 87.5 million** to **RMB 81.2 million**, with gross margin falling from **24.5%** to **22.4%**, primarily due to reduced contribution from higher-margin 'other' businesses[17](index=17&type=chunk) - Income tax expense decreased by **54.3%** from **RMB 7 million** to **RMB 3.2 million**, mainly because subsidiary Zhongbang Landscape was recognized as a high-tech enterprise, enjoying a **15%** preferential tax rate[24](index=24&type=chunk) [Assets and Liabilities](index=10&type=section&id=Assets%20and%20Liabilities) As of June 30, 2021, net current assets increased by **50.5% to RMB 265 million**, driven by listing proceeds and profitability; total borrowings were approximately **RMB 518 million**, with the gearing ratio decreasing from **1.0 to 0.9**, and significant financial guarantees provided for PPP projects of associates and joint ventures resulted in high contingent liabilities - Net current assets increased by **50.5%** from **RMB 176 million** at year-end 2020 to **RMB 265 million**[26](index=26&type=chunk) - The gearing ratio (bank and other borrowings/total equity) decreased from **1.0** at year-end 2020 to **0.9**[28](index=28&type=chunk) - The Group provided guarantees for bank loans of joint venture Tianjun Tourism (loan balance **RMB 375 million**) and associate Changchun Xianbang (loan balance **RMB 224 million**)[30](index=30&type=chunk)[31](index=31&type=chunk) [Investments and Financing](index=10&type=section&id=Investments%20and%20Financing) During the reporting period, the Group had no significant acquisitions, disposals, or major investments, but entered into a forward foreign exchange contract of approximately **USD 7.59 million** in July 2021 to hedge foreign exchange risk from USD loans - The Group had no significant acquisitions, disposals, or major investments during H1 2021[29](index=29&type=chunk) - To mitigate exchange rate risk from USD loans, the Group entered into a RMB/USD forward foreign exchange contract totaling approximately **USD 7.59 million** in July 2021[33](index=33&type=chunk) [Use of Proceeds from Listing](index=11&type=section&id=Use%20of%20Proceeds%20from%20Listing) The company listed on January 6, 2021, with net proceeds of approximately **HKD 54.7 million**; as of the reporting date, **HKD 17.8 million** was utilized for regional design offices, bank loan repayment, and working capital, with the remaining **HKD 36.9 million** expected to be used as planned by end of 2022 Use of Proceeds from Listing (HKD million) | Purpose | Allocated Amount | Amount Utilized | Unutilized Amount | | :--- | :--- | :--- | :--- | | Establishment of regional design offices | 8.1 | 3.5 | 4.6 | | Pre-construction costs for Changchun Zoo project | 13.0 | 1.8 | 11.2 | | Investment in Ulanhot Tianjiao Tianjun | 14.3 | — | 14.3 | | Purchase of ERP system | 4.0 | 0.1 | 3.9 | | Repayment of bank loans | 9.8 | 9.8 | — | | General working capital | 5.5 | 2.6 | 2.9 | | **Total** | **54.7** | **17.8** | **36.9** | Other Information [Dividends, Employees and Remuneration Policy](index=12&type=section&id=Dividends%2C%20Employees%20and%20Remuneration%20Policy) The Board recommended no interim dividend for 2021; as of June 30, 2021, the Group had **504 employees** and established a systematic remuneration management policy and welfare system, with a remuneration committee reviewing related policies - The Directors recommended no interim dividend for H1 2021[37](index=37&type=chunk) - As of June 30, 2021, the Group had **504 employees**[38](index=38&type=chunk) [Directors' and Major Shareholders' Interests](index=13&type=section&id=Directors%27%20and%20Major%20Shareholders%27%20Interests) The report details the interests and short positions of directors, chief executives, and major shareholders in the company and its associated corporations as of June 30, 2021, with controlling shareholder Zhongqing International holding **65.89%** and Zhongbang International holding **5.11%** of the shares Major Shareholder Holdings | Shareholder Name | Nature of Interest | Number of Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Zhongqing International | Beneficial owner | 181,202,166 | 65.89% | | Zhongbang International | Beneficial owner | 14,054,104 | 5.11% | [Corporate Governance and Compliance](index=15&type=section&id=Corporate%20Governance%20and%20Compliance) The company maintained sufficient public float and disclosed limited potential competing businesses; a deviation from the Corporate Governance Code exists with the Chairman and CEO roles combined, and post-reporting period, related party transactions and company secretary change occurred, with the interim financial report reviewed by KPMG - The roles of Chairman and Chief Executive Officer are held concurrently by Mr. Liu Haitao, which deviates from Code Provision A.2.1 of the Corporate Governance Code[62](index=62&type=chunk) - Post-reporting event: To hedge the currency risk of USD loans, the Group entered into a forward foreign exchange contract with China Everbright Bank on July 30, 2021, with a maximum amount of **USD 7,592,263.02**[59](index=59&type=chunk) - The 2021 interim financial report was not audited but was reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[63](index=63&type=chunk) Condensed Consolidated Financial Statements [Consolidated Statement of Profit or Loss](index=19&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2021, revenue was **RMB 362.1 million**, a slight increase, but gross profit decreased to **RMB 81.2 million**; profit for the period was **RMB 16.49 million**, a **22.6%** decrease from **RMB 21.32 million** in the prior year, with profit attributable to equity holders at **RMB 16.33 million** Consolidated Statement of Profit or Loss Summary (RMB thousand) | Item | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Revenue | 362,073 | 357,885 | | Gross Profit | 81,197 | 87,505 | | Operating Profit | 31,789 | 43,084 | | Profit Before Tax | 19,681 | 28,276 | | **Profit for the Period** | **16,487** | **21,315** | | Profit attributable to equity holders of the Company | 16,331 | 21,189 | [Consolidated Statement of Financial Position](index=21&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2021, total assets were **RMB 2.107 billion**, total liabilities **RMB 1.527 billion**, and total equity **RMB 580 million**, representing a **20%** increase from year-end 2020, primarily due to listing proceeds and period profit, with net current assets at **RMB 265 million** Consolidated Statement of Financial Position Summary (RMB thousand) | Item | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Non-current Assets | 377,746 | 366,237 | | Current Assets | 1,729,405 | 1,699,903 | | **Total Assets** | **2,107,151** | **2,066,140** | | Current Liabilities | 1,464,022 | 1,523,553 | | Non-current Liabilities | 62,661 | 58,777 | | **Total Liabilities** | **1,526,683** | **1,582,330** | | **Total Equity** | **580,468** | **483,810** | [Condensed Consolidated Statement of Cash Flows](index=25&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In H1 2021, net cash outflow from operating activities was **RMB 96.34 million**, an increase from the prior year; net cash inflow from investing activities was **RMB 2.67 million**, and from financing activities was **RMB 53.35 million**, mainly from new loans and listing proceeds, resulting in period-end cash and cash equivalents of **RMB 104 million**, a decrease of **RMB 40.31 million** from year-start Condensed Consolidated Statement of Cash Flows Summary (RMB thousand) | Item | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | (96,339) | (73,989) | | Net cash generated from investing activities | 2,674 | 37,145 | | Net cash generated from financing activities | 53,354 | 165 | | **Net decrease in cash and cash equivalents** | **(40,311)** | **(36,679)** | | Cash and cash equivalents at beginning of period | 143,997 | 73,615 | | **Cash and cash equivalents at end of period** | **103,681** | **36,941** | Notes to the Financial Statements [Note 4 Revenue and Segment Reporting](index=27&type=section&id=Note%204%20Revenue%20and%20Segment%20Reporting) The Group operates in three segments: landscape, ecological restoration, and other; in H1 2021, the landscape segment contributed most of the gross profit increase, reaching **RMB 58 million**, while ecological restoration gross profit was **RMB 21.37 million**, and the 'other' segment's gross profit significantly declined to **RMB 1.84 million**, with most revenue (**RMB 361 million**) recognized over time H1 2021 Segment Gross Profit (RMB thousand) | Segment | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Landscape | 57,989 | 34,999 | | Ecological Restoration | 21,367 | 34,446 | | Other | 1,841 | 18,060 | | **Total** | **81,197** | **87,505** | [Note 11 Trade and Bills Receivables](index=36&type=section&id=Note%2011%20Trade%20and%20Bills%20Receivables) As of June 30, 2021, total trade and bills receivables (net of loss allowance) significantly increased to **RMB 868 million** from **RMB 697 million** at year-start; receivables within one year accounted for approximately **57%**, while those over one year were **43%**, indicating collection pressure Trade and Bills Receivables Aging Analysis (RMB thousand) | Aging | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Within 1 year | 494,992 | 340,653 | | 1 to 2 years | 163,422 | 141,379 | | Over 2 years | 209,302 | 214,970 | | **Total** | **867,716** | **697,002** | [Note 15 Bank and Other Borrowings](index=40&type=section&id=Note%2015%20Bank%20and%20Other%20Borrowings) As of June 30, 2021, total bank and other borrowings were **RMB 518 million**, with **RMB 468 million** due within one year; most loans were guaranteed by third parties or secured by trade receivables and contract assets, and unused bank facilities totaled **RMB 143 million** at period-end - Total bank and other borrowings amounted to **RMB 517.6 million**, of which **RMB 467.6 million** is repayable within one year[113](index=113&type=chunk)[115](index=115&type=chunk) - The Group's bank borrowings are primarily guaranteed by third parties (some with counter-guarantees from related parties) and secured by trade receivables and contract assets[113](index=113&type=chunk)[116](index=116&type=chunk) [Note 21 Significant Related Party Transactions](index=47&type=section&id=Note%2021%20Significant%20Related%20Party%20Transactions) During the period, the Group engaged in multiple transactions with related parties, including the controlling shareholder Zhongqing Investment and its associates, joint ventures, and associates; key transactions involved providing construction services to and obtaining guarantees from related parties, with significant outstanding balances indicating close business ties - The Group provided construction services generating **RMB 4.21 million** in revenue from joint ventures and **RMB 7.19 million** from associates[139](index=139&type=chunk)[140](index=140&type=chunk) - As of period-end, contract assets and trade receivables due from Zhongqing Investment and its associates totaled approximately **RMB 184 million**[143](index=143&type=chunk) Review Report [KPMG Review Report](index=52&type=section&id=KPMG%20Review%20Report) KPMG reviewed the interim financial report in accordance with Hong Kong Standard on Review Engagements, and based on the review, found no matters leading them to believe the report was not prepared in all material respects in accordance with IAS 34 'Interim Financial Reporting' - KPMG issued an unqualified review report on the interim financial report[149](index=149&type=chunk)