Financial Performance - In 2024, the company's revenue was RMB 1,748,321, a decrease of 7.0% compared to RMB 1,879,443 in 2023[15]. - Gross profit for 2024 was RMB 131,341, reflecting a decline from RMB 141,406 in 2023, resulting in a gross margin of 7.5%[15][19]. - Profit before tax decreased to RMB 36,576 in 2024, down 16.5% from RMB 43,793 in 2023[15]. - The profit for the year attributable to owners of the company was RMB 27,313, a decrease of 11.5% compared to RMB 30,745 in 2023[15]. - The Group's revenue for the year was approximately RMB 1,748.3 million, a decrease of about 7.0% compared to the previous year, with revenue contributions from landscaping construction (5.6%), municipal engineering (46.4%), construction engineering (45.2%), and others (2.8%)[51]. - Revenue from the landscape construction segment fell by 47.9% to RMB 97.5 million, attributed to a decrease in the number of projects[77]. - The municipal works construction segment saw a revenue increase of 17.4% to RMB 811.7 million, driven by a rise in the number of projects[78]. - Revenue from the building works segment decreased by 16.1% to RMB 790.7 million, mainly due to a reduction in project numbers[79]. - The Group's revenue from the others segment decreased by 17.4% or RMB 10.2 million, from RMB 58.7 million last year to RMB 48.5 million this year[80]. - Gross profit decreased by 7.1% or RMB 10.1 million, from RMB 141.4 million last year to RMB 131.3 million this year, with a stable gross profit margin of approximately 7.5%[87]. Assets and Liabilities - Total assets as of 2024 were RMB 2,157,090, a decrease from RMB 2,325,983 in 2023[17]. - Total liabilities decreased to RMB 1,152,661 in 2024, down from RMB 1,348,926 in 2023, indicating improved financial stability[17]. - The company's equity attributable to owners increased to RMB 998,283 in 2024, up from RMB 970,970 in 2023[17]. - The Group's net current assets decreased by 2.8% or RMB 27.0 million, from RMB 961.5 million as of December 31, 2023, to RMB 934.5 million as of December 31, 2024, primarily due to a decrease in trade and other receivables[97][99]. - Trade and other receivables decreased by 39.8% or RMB 245.2 million, from RMB 616.4 million as of December 31, 2023, to RMB 371.2 million as of December 31, 2024, due to increased efforts in receivables collection[102]. - Trade payables decreased by 5.1% or RMB 20.8 million from RMB 406.6 million in 2023 to RMB 385.8 million in 2024, attributed to a decrease in revenue[117]. Market and Industry Trends - The construction sector continued to play a key role in stabilizing growth and promoting transformation amidst challenges in the market[21]. - The total output value of the national construction industry reached RMB 32.7 trillion in 2024, an increase of 3.9% year-on-year[31]. - The added value of the construction industry for the year was RMB 9.0 trillion, reflecting a growth of 3.8% compared to the previous year[31]. - The total profits of qualified general contracting and specialized contracting construction enterprises nationwide were RMB 751.3 billion, a decrease of 9.8% over the previous year[33]. - National fixed asset investment increased by 3.2% in 2024, with infrastructure investment growing by 4.4%[34]. - The construction industry in 2024 showed characteristics of stabilizing growth in infrastructure, weak recovery in real estate, and transformation driven by technology, with state-owned enterprises performing prominently[66]. Strategic Focus and Innovation - The company focused on "innovation-driven and green development," aiming to enhance operational efficiency and explore new growth points in emerging fields[21][22]. - The Group is actively expanding into strategic emerging fields such as water conservancy projects and new energy infrastructure[25]. - The Group achieved significant technological advancements in smart construction and water conservancy, applying big data, IoT, and AI to engineering projects, enhancing project quality and market competitiveness[44][46]. - The new "construction industry+" model, integrating smart construction and smart building, has emerged as a new path for enterprise transformation[40][42]. - The Group aims to enhance management efficiency and optimize business structure to maintain competitiveness in the market[71]. - The focus on green and digital transformation aligns with the national "dual carbon" goals and sustainable development initiatives[71]. Management and Governance - Mr. Peng YH was appointed as an executive director and CEO of the Company on March 15, 2017, and has over 20 years of experience in the landscape and public work construction industry[169]. - Mr. Peng DS, the founder of the Group, has been responsible for business development and quality control since its establishment in January 2001[169]. - The Group's management team includes Mr. Tong Tai Alex, who has been the CFO since December 2015, overseeing financial management and regulatory compliance[186]. - The Group's executive team is supported by independent directors with extensive backgrounds in law and finance, enhancing governance and strategic oversight[177][179]. - The Company aims to leverage its experienced management team to drive future growth and operational efficiency[169]. Financial Risks and Management - The Group is exposed to various financial risks including credit risk, liquidity risk, and interest rate risk[146]. - The Group's credit risk is primarily from trade and other receivables, and cash and bank balances[154]. - The Group's policy is to regularly monitor liquidity requirements to maintain sufficient cash reserves[156]. - The management emphasizes the importance of risk management in evaluating material risk exposures, including investment, interest rate, and liquidity risks[54].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 1,748,321 thousand, a decrease of 7.0% from RMB 1,879,443 thousand in 2023[2] - Gross profit for the year was RMB 131,341 thousand, down 7.1% from RMB 141,406 thousand in the previous year[3] - Net profit attributable to owners of the company was RMB 27,313 thousand, a decline of 11.8% compared to RMB 30,745 thousand in 2023[3] - Basic and diluted earnings per share decreased to RMB 4.4 from RMB 5.0, reflecting a 12.0% drop[3] - The company reported an operating profit of RMB 58,478 thousand, down 18.2% from RMB 71,494 thousand in the previous year[3] - Other income and gains increased to RMB 24,399 thousand from RMB 18,793 thousand, a growth of 29.0%[3] - The total segment profit for 2024 was RMB 131,341 thousand, down from RMB 141,406 thousand in 2023, indicating a decrease of about 7%[13] - The company reported a basic and diluted earnings per share of RMB 27,313 thousand for 2024, down from RMB 30,745 thousand in 2023, a decrease of approximately 8%[17] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 2,157,090 thousand, down from RMB 2,325,983 thousand in 2023, representing a decrease of 7.2%[4] - Current liabilities decreased to RMB 1,152,661 thousand from RMB 1,348,926 thousand, a reduction of 14.5%[5] - The total liabilities for the company as of the end of 2024 were RMB 1,679,558 thousand, compared to RMB 1,799,817 thousand in 2023, showing a decrease of about 7%[17] Cash Flow and Expenditures - The company’s cash and cash equivalents increased to RMB 439,665 thousand from RMB 416,098 thousand, reflecting a growth of 5.7%[4] - Cash and cash equivalents increased to RMB 272.7 million from RMB 252.6 million year-on-year, with a current ratio of 1.8 and a debt ratio of 0.5[46] - Capital expenditures related to property, plant, and equipment totaled RMB 8.0 million for the year[48] Trade Receivables and Provisions - Trade receivables decreased to RMB 214,407 thousand in 2024 from RMB 301,138 thousand in 2023, a decline of approximately 29%[18] - The provision for trade receivables increased to RMB 88,723 thousand in 2024 from RMB 75,702 thousand in 2023, indicating a rise of about 17%[18] - Trade receivables overdue for 0 to 90 days decreased to RMB 34.5 million from RMB 41.8 million, while those overdue for more than 3 years decreased to RMB 8.5 million from RMB 45.8 million[47] Expenses - Material costs for 2024 amounted to RMB 759,511 thousand, compared to RMB 909,275 thousand in 2023, reflecting a reduction of approximately 16%[12] - Employee costs remained relatively stable at RMB 543,100 thousand in 2024, slightly down from RMB 537,915 thousand in 2023[12] - Research and development expenses increased significantly to RMB 7,593 thousand in 2024, compared to only RMB 376 thousand in 2023, marking an increase of over 1900%[17] - Administrative expenses increased slightly by 1.3% to RMB 62.6 million from RMB 61.8 million last year[42] - Financing costs decreased by 17.9% to RMB 22.9 million from RMB 27.9 million last year, primarily due to lower interest rates and average borrowings[43] - Income tax expense for 2024 was RMB 9,204 thousand, down from RMB 13,610 thousand in 2023, reflecting a decrease of approximately 32%[14] - Income tax expenses decreased by 32.4% to RMB 9.2 million from RMB 13.6 million last year, mainly due to a reduction in pre-tax profits and an increase in non-taxable income[44] Market and Industry Insights - In 2024, the total output value of the construction industry in China reached RMB 32.7 trillion, an increase of 3.9% year-on-year, despite a 10.6% decline in the construction area of residential buildings[21] - The profit of qualified general and specialized contracting construction enterprises in 2024 was RMB 751.3 billion, a decrease of 9.8% compared to the previous year[22] - The number of construction enterprises in China reached 152,000 in June 2024, an increase of 8.7% year-on-year, indicating intensified market competition[22] - The construction business activity index in December 2024 was 53.2%, reflecting a 3.5% month-on-month increase, indicating resilience in the construction sector[24] - National investment in water conservancy construction is expected to exceed RMB 1.3 trillion in 2024, marking a historical high and providing strong support for the construction market[27] - The construction industry is experiencing a digital transformation, with significant advancements in smart construction technologies, improving efficiency and addressing labor shortages[25] - The average profit of state-owned enterprises in the construction sector was RMB 366.9 billion in 2024, down 8.7% from the previous year[22] - Infrastructure investment in 2024 grew by 4.4%, becoming a key driver for the construction industry's growth[23] - The construction industry is focusing on green and smart development, with leading enterprises enhancing market concentration through resource integration and technological innovation[26] - The construction sector's employment figures decreased by 11.9% from the end of 2018, highlighting ongoing labor challenges amidst a growing number of enterprises[23] Business Segments - The group's revenue for the year was approximately RMB 1,748.3 million, a decrease of about 7.0% compared to last year, primarily driven by declines in the landscaping, construction, and other segments[29] - The revenue breakdown by business segments is as follows: landscaping construction (5.6%), municipal engineering (46.4%), construction engineering (45.2%), and others (2.8%)[29] - The municipal engineering segment saw an increase in revenue of 17.4% or RMB 120.4 million, reaching RMB 811.7 million, attributed to an increase in project numbers[36] - The landscaping construction segment's revenue decreased by 47.9% or RMB 89.6 million to RMB 97.5 million, mainly due to a reduction in project numbers[35] - The construction engineering segment's revenue decreased by 16.1% or RMB 151.7 million to RMB 790.7 million, also due to a decrease in project numbers[37] - The group's gross profit remained stable at RMB 141.4 million, with a gross margin of approximately 7.5%[40] - Other income increased by 30.0% or RMB 5.6 million to RMB 24.4 million, mainly due to revenue generated from franchise rights[41] Future Outlook and Strategy - In 2025, the total scale of infrastructure investment in China is expected to reach RMB 12.8 trillion, with at least RMB 2 trillion allocated for digital infrastructure[33] - The company plans to focus on traditional infrastructure while exploring new growth points in water conservancy construction and technological innovation[33] - The company aims to enhance its business structure and management efficiency to maintain a competitive edge in the market[33] Governance and Miscellaneous - The company does not recommend any dividend distribution for the year[56] - There have been no significant changes in the company's financial position or business since the last annual report[57] - The remaining net proceeds of approximately HKD 167.4 million are expected to be utilized by the end of 2026[55] - The annual report will be published on the company's website and the Hong Kong Stock Exchange website at an appropriate time[65] - The board expresses gratitude to customers, shareholders, and employees for their long-term support and hard work[66] - The board of directors includes executive directors and independent non-executive directors, ensuring diverse governance[67]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 1,098,008, representing a 6.7% increase from RMB 1,029,221 in the same period of 2023[7] - Gross profit for the same period was RMB 62,042, an 8.0% increase from RMB 57,465 in 2023[7] - Profit for the period attributable to owners of the Company was RMB 15,697, up 18.1% from RMB 13,296 in 2023[7] - The total comprehensive income for the period was RMB 15,785,000, compared to RMB 13,244,000 in the same period last year, representing an increase of about 19.2%[113] - Earnings per share for the period were 2.5 RMB cents, an increase from 2.1 RMB cents in 2023, reflecting a growth of approximately 19%[113] - Profit from operations was RMB 33,437,000, up from RMB 31,333,000 in 2023, which is an increase of about 6.7%[113] - Profit before tax for the period was RMB 18,718,000, slightly down from RMB 18,984,000 in 2023, showing a decrease of approximately 1.4%[113] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 2,178,833, a decrease of 6.3% from RMB 2,325,983 as of December 31, 2023[7] - Total liabilities decreased by 12.1% to RMB 1,185,991 from RMB 1,348,926[7] - Current liabilities decreased from RMB 1,246,384,000 to RMB 1,185,635,000, a reduction of about 4.9%[115] - Total equity increased from RMB 977,057,000 to RMB 992,842,000, marking a growth of about 1.6%[115] - Non-current assets dropped significantly from RMB 118,121,000 to RMB 68,940,000, a decrease of about 41.6%[114] Cash Flow - Cash and cash equivalents increased by 6.5% to RMB 268,872 from RMB 252,572[7] - Net cash generated from operating activities for the six months ended June 30, 2024, was RMB 67,000, compared to a net cash used of RMB 38,612,000 in the same period of 2023[119] - The net cash generated from investing activities increased significantly to RMB 111,362,000, up from RMB 28,030,000 in the previous year[119] - The company reported a net increase in cash and cash equivalents of RMB 16,300,000, compared to RMB 10,118,000 in the same period of 2023[119] Revenue Segmentation - The Group's business revenue sources included landscaping construction (3.1%), municipal works construction (38.2%), building works (56.4%), and others (2.3%)[22] - Revenue from the municipal works construction segment increased by 5.8% or RMB22.9 million to RMB419.5 million, driven by an increase in the number of projects[35] - Revenue from the building works segment rose by 22.8% or RMB114.9 million to RMB619.3 million, attributed to an increase in average contract sums[36] - Revenue from the landscape construction segment decreased by 66.8% or RMB69.1 million to RMB34.4 million, primarily due to a decline in average contract sums[33] Expenses and Costs - Cost of services rendered increased by 6.7% or RMB64.4 million to RMB1,032.4 million, in line with revenue fluctuations[41] - Administrative expenses rose by 3.9% or RMB1.2 million to RMB31.9 million for the six months ended June 30, 2024[44] - Finance costs increased by 10.9% or RMB1.3 million to RMB13.2 million, mainly due to interest expenses related to a public-private partnership project[45] - The Group's administrative and other operating expenses included an impairment loss of RMB 31,855,000, compared to RMB 30,676,000 in the previous year, indicating a slight increase of about 3.8%[113] Market and Economic Conditions - The company noted that the global economic growth is stabilizing after four years of turbulence, but growth levels remain below pre-2020 levels[9] - The construction industry is generally in a downward trend, but there are still development opportunities in related infrastructure construction[9] - In the first half of 2024, the national construction industry's total output value was RMB13.83 trillion, with a year-on-year increase of 4.8%, marking a decline in growth rate for four consecutive years since 2020[10] Corporate Governance and Compliance - The company has complied with the corporate governance code provisions for the six months ended June 30, 2024, except for the absence of the chairman at the annual general meeting[78] - The company has adopted the Model Code for securities transactions, with all directors confirming compliance during the reporting period[85] - The Group has established an Audit Committee to oversee financial reporting and internal control procedures[99] Strategic Initiatives - The Group plans to focus on traditional infrastructure construction, technological innovation, and water conservancy construction as new growth points[27] - The company acquired construction licenses for various projects at a total consideration of RMB103.1 million (HK$120.2 million) to enhance its capabilities in municipal projects[74] - A strategic investment in design firms in the Yangtze River Delta was made for HK$7.5 million, with HK$83.9 million remaining for future investments[73] Shareholding and Ownership - Mr. Peng YH holds 451,170,000 shares, representing approximately 72.95% of the company's shareholding[87] - Mr. Peng TB and Mr. Peng DS each hold 452,994,000 shares, representing approximately 73.24% of the company's shareholding[87] - Vast Base has a beneficial interest in 226,170,000 shares, accounting for approximately 36.57% of the total shareholding[93] Future Outlook - The company provided a positive outlook for the next quarter, projecting revenue growth of B% based on current market trends[187] - Future guidance indicates a commitment to sustainable practices, with plans to reduce carbon emissions by J% over the next five years[188]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 1,098,008 thousand, representing an increase of 6.7% compared to RMB 1,029,221 thousand for the same period in 2023[1][2] - Gross profit for the same period was RMB 62,042 thousand, up 8.8% from RMB 57,465 thousand in the previous year[1][2] - Net profit attributable to the owners of the company increased to RMB 15,697 thousand, a rise of 18.1% from RMB 13,296 thousand in the prior year[1][2] - Basic and diluted earnings per share for the period were RMB 2.5, compared to RMB 2.1 for the same period last year, reflecting a 19% increase[2] - Operating profit for the six months was RMB 33,437 thousand, an increase of 6.7% from RMB 31,333 thousand in the previous year[2] - Total segment profit for the six months ended June 30, 2024, was RMB 62,042,000, an increase of 7.5% from RMB 57,465,000 in 2023[9] - Interest income rose to RMB 1,320,000 from RMB 931,000, reflecting a 42% increase year-over-year[9] - The company reported a net profit of RMB 15,697,000 for the six months ended June 30, 2024, compared to RMB 13,296,000 in 2023, representing a growth of 18.1%[16] Assets and Liabilities - The total assets as of June 30, 2024, were RMB 2,178,833 thousand, down from RMB 2,325,983 thousand as of December 31, 2023[3][4] - Current liabilities totaled RMB 1,185,635 thousand, a decrease from RMB 1,246,384 thousand at the end of the previous year[4] - Non-current assets decreased to RMB 68,940 thousand from RMB 118,121 thousand as of December 31, 2023, indicating a significant reduction[3] - The company reported a decrease in trade and other receivables to RMB 608,954 thousand from RMB 616,393 thousand[3] - Contract assets decreased to RMB 1,126,041,000 from RMB 1,175,371,000, a decline of 4.2%[11] - Trade receivables decreased to RMB 226,750,000 from RMB 304,924,000, a reduction of 25.6%[17] - The company recognized contract liabilities of RMB 29,978,000, down from RMB 66,733,000, a decrease of 55.1%[11] - The company's cash and cash equivalents stood at RMB 268.9 million as of June 30, 2024, compared to RMB 252.6 million at the end of the previous year[38] - The current ratio remained stable at 1.8, while the debt ratio improved to 0.6 from 0.7[38] - As of June 30, 2024, the company's debt-to-equity ratio is 0.6[39] Expenses - The company’s employee costs decreased to RMB 20,830,000 from RMB 22,255,000, a decline of 6.4%[15] - The company’s research and development expenses decreased to RMB 86,000 from RMB 198,000, a reduction of 56.6%[15] - Administrative expenses rose slightly by 3.9% to RMB 31.9 million, while financial costs increased by 10.9% to RMB 13.2 million[36][37] - The income tax expense decreased by 49.1% to RMB 2.9 million, primarily due to a decline in taxable profits compared to the previous year[38] Revenue Sources and Segments - The company's revenue sources for the first half of 2024 were 3.1% from landscaping, 38.2% from municipal engineering, 56.4% from construction engineering, and 2.3% from other sources[25] - The municipal construction segment's revenue grew by 5.8% to RMB 419.5 million, while the construction engineering segment's revenue surged by 22.8% to RMB 619.3 million[31][32] - The landscaping construction segment experienced a significant decline of 66.8%, with revenue dropping to RMB 34.4 million from RMB 103.5 million[30] Future Outlook and Investments - The company plans to focus on traditional infrastructure, technological innovation, and water conservancy construction as new growth points moving forward[28] - The total planned investment in water conservancy during the 14th Five-Year Plan period is expected to exceed RMB 5.2 trillion, with RMB 3.6 trillion already completed by mid-2024[28] - The company’s management emphasizes the importance of infrastructure investment, which grew by 5.4% year-on-year, supporting the construction industry amidst challenges in the real estate sector[23] - The company’s management remains optimistic about future growth opportunities in the water resources sector, with water conservancy construction investment reaching RMB 569 billion in the first half of 2024, a historical high[25] Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the absence of the chairman at the annual general meeting held on June 13, 2024[44] - The company does not recommend the distribution of an interim dividend for the six months ended June 30, 2024[43] Capital and Financing - The total bank borrowings as of June 30, 2024, amount to RMB 580.7 million, with an average annual interest rate of 4.03%[39] - The net proceeds from the company's fundraising activities amount to HKD 315.3 million, with HKD 147.9 million already utilized[40] - The company has acquired multiple construction permits at a total cost of RMB 103.1 million (HKD 120.2 million)[40] - The remaining net proceeds of approximately HKD 167.4 million are currently held in bank deposits and are expected to be utilized by the end of 2025[42] Operational Achievements - The company completed 38,000 water conservancy projects in the first half of 2024, a year-on-year increase of 23%[25] - The company achieved a significant milestone by obtaining a new invention patent and being recognized as a demonstration base for college student employment practices in Ningbo[26] - The company has successfully participated in the drafting of the "Technical Regulations for Construction of High-rise Prefabricated Steel Structures" as a main drafter[26] - The construction industry business activity index was reported at 51.2% in July 2024, indicating a slight decline but remaining above the critical point[24]

Financial Performance - In 2023, the company's revenue was RMB 1,879,443,000, a decrease of 6.9% compared to RMB 2,018,348,000 in 2022[11]. - Gross profit for 2023 was RMB 141,406,000, slightly up from RMB 139,568,000 in 2022, resulting in a gross margin of 7.5%[11][15]. - Profit before tax for the year was RMB 43,793,000, down from RMB 46,958,000 in 2022, indicating a decline of 4.6%[11]. - The profit attributable to owners of the company for 2023 was RMB 30,745,000, compared to RMB 33,173,000 in 2022, reflecting a decrease of 7.5%[11]. - The Group's revenue decreased by 6.9% or RMB138.9 million from RMB2,018.3 million last year to RMB1,879.4 million for the Year[62]. - Revenue from the landscape construction segment decreased by 54.0% or RMB219.6 million, from RMB406.7 million last year to RMB187.1 million for the Year[67]. - Revenue from the municipal works construction segment decreased by 13.3% or RMB106.0 million, from RMB797.3 million last year to RMB691.3 million for the Year[68]. - Revenue from the building works segment increased by 21.6% or RMB167.3 million, from RMB775.1 million last year to RMB942.4 million for the Year[69]. - Revenue from the others segment increased by 49.7% or RMB19.5 million, from RMB39.2 million last year to RMB58.7 million for the Year[70]. - The cost of services rendered decreased by 7.5% or RMB139.6 million from RMB1,871.0 million last year to RMB1,731.4 million for the Year[71]. - The Group's gross profit increased by 1.3% or RMB1.8 million from RMB139.6 million last year to RMB141.4 million for the Year, with a gross profit margin increase from 6.9% to 7.5%[78]. - Other income, gains, and losses decreased by 30.1% or RMB8.1 million from RMB26.9 million last year to RMB18.8 million for the Year[79]. - Administrative expenses increased by 3.3% or RMB2.0 million from RMB59.8 million last year to RMB61.8 million for the Year[80]. - Finance costs increased by 17.2% or RMB4.1 million from RMB23.8 million last year to RMB27.9 million for the Year[81]. - The group's income tax expense slightly decreased by 2.2% or RMB 0.3 million from RMB 13.9 million last year to RMB 13.6 million this year[87]. Assets and Liabilities - Total assets increased to RMB 2,325,983,000 in 2023, up from RMB 2,288,592,000 in 2022, marking a growth of 1.6%[13]. - Total liabilities slightly increased to RMB 1,348,926,000 in 2023 from RMB 1,341,718,000 in 2022, showing a marginal rise of 0.5%[13]. - The company's total equity reached RMB 977,057,000 in 2023, an increase from RMB 946,874,000 in 2022, representing a growth of 3.2%[13]. - The net current assets increased by 1.7% or RMB 16.2 million from RMB 945.3 million as of December 31, 2022, to RMB 961.5 million as of December 31, 2023, primarily due to increased bank and cash balances[92]. - Trade and other receivables decreased by 16.7% or RMB 123.2 million from RMB 739.6 million as of December 31, 2022, to RMB 616.4 million as of December 31, 2023, due to enhanced collection efforts[97]. - Contract assets increased from RMB 1,107.2 million in 2022 to RMB 1,175.4 million in 2023, indicating more high contract value projects in progress[110]. - Trade payables increased by 13.0% or RMB46.7 million from RMB359.9 million as of December 31, 2022, to RMB406.6 million as of December 31, 2023, due to the Group slowing down payments to maintain better liquidity[115]. - Average turnover days of trade payables increased from 67.2 days in 2022 to 80.8 days in 2023, primarily due to the aforementioned slow-down of payments[117]. - Total bank borrowings as of December 31, 2023, were RMB675.7 million, with an average interest rate of 4.38% per annum[126]. - Current ratio remained unchanged at 1.8 as of December 31, 2023, compared to December 31, 2022[140]. - Gearing ratio remained stable at 0.7 as of December 31, 2023, compared to the previous year[141]. - Net debt to equity ratio decreased from 0.5 as of December 31, 2022, to 0.4 as of December 31, 2023, due to an increase in year-end cash and cash equivalents[142]. Market and Industry Trends - In 2023, the total output value of the construction industry in China reached RMB 31.6 trillion, a year-on-year increase of 5.8%[26]. - The incremental value of the construction industry for the full year was RMB 8.6 trillion, representing a year-on-year increase of 7.1%[26]. - The profits of construction enterprises with qualification grades were RMB 832.6 billion, a slight increase of 0.2% year-on-year[29]. - The newly signed contracts of the top eight state-owned construction enterprises totaled RMB 16.7 trillion in 2023, marking a year-on-year increase of 8.0%[29]. - The business activity index of the construction industry for December 2023 was 56.9%, indicating steady growth and expansion[30]. - National investment in water conservancy construction in 2023 amounted to nearly RMB 1.2 trillion, reaching a new high in investment amount and scale[35]. - The construction industry is undergoing digital transformation, optimizing processes and improving efficiency through intelligent construction technologies[34]. Strategic Goals and Future Plans - The company aims to enhance business scale and profitability in 2024, focusing on high-quality and sustainable development[20]. - The chairman highlighted the importance of adapting to the economic recovery trends and government policies to drive future growth[18][19]. - The Group plans to closely follow national strategic planning and industrial policies to continue its development and construction projects in the future[57]. - The Central Government plans to invest RMB 700.0 billion in new investment growth points focused on new infrastructure in 2024, with an emphasis on flood control and disaster relief projects[56]. - The Ningbo region aims to invest RMB 150.0 billion in public infrastructure construction, which will remain a key investment direction for China in the future[56]. Innovation and Development - Chanhigh Construction registered three new invention patents and six utility model patents in the construction category[40]. - The Group introduced three new construction-related invention patents and six utility model patents, focusing on quality engineering and standardized construction sites[42]. - The Group's operational management team has been optimizing structures and enhancing efficiency to achieve relatively good operational results despite challenging market conditions[55]. Human Resources - The Group had a total of 545 employees as of December 31, 2023, with employee benefits expenses amounting to RMB 45.0 million for the year[46]. - Mr. Peng Daosheng, the founder and executive director, has over 20 years of experience in the construction industry[176]. - Mr. Peng Tianbin serves as the executive director and chairman of the company[177]. - Ms. Wang Sufen, a non-executive director, has over 20 years of experience in trade and established Ningbo Yinzhou Tianbin Trading Co., Ltd. in October 1994[178]. - Mr. Fan Rong, an independent non-executive director, has been a member of the Chinese Institute of Certified Public Accountants since 1995[179]. - Mr. Tong Tai Alex, the chief financial officer, has approximately 15 years of experience in an international CPA firm before joining the group in December 2015[189]. - Mr. Jiang Libo, the general manager of Chanhigh Construction, has been with the company since September 2007 and holds multiple leadership roles in various associations[190]. - Mr. Yang Jiannan, head of the quality control department, oversees production quality and construction safety since joining the group in August 2010[195]. - Mr. Wang Yuexi is the vice chairman in charge of the administrative department, joined the Group in February 2019[199]. - Mr. Tong Tai Alex has been the company secretary since June 25, 2016[200].

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 1,879,443 thousand, a decrease of 6.9% from RMB 2,018,348 thousand in 2022[2] - Gross profit for the year was RMB 141,406 thousand, slightly up from RMB 139,568 thousand in the previous year, indicating a gross margin improvement[4] - Net profit attributable to owners of the company decreased to RMB 30,745 thousand from RMB 33,173 thousand, reflecting a decline of 7.3%[4] - The company reported a basic and diluted earnings per share of RMB 5.0, down from RMB 5.4 in 2022, representing a decrease of 7.4%[4] - Total segment profit for the reporting period was RMB 141,406,000, compared to RMB 139,568,000 in the previous year, reflecting an increase of approximately 1.2%[13] - The pre-tax consolidated profit was RMB 43,793,000, down from RMB 46,958,000, representing a decline of about 6.5%[13] - Basic and diluted earnings per share were RMB 30,745,000, down from RMB 33,173,000, indicating a decrease of approximately 7.3%[20] Assets and Liabilities - The total assets as of December 31, 2023, amounted to RMB 2,325,983 thousand, compared to RMB 2,288,592 thousand in 2022, showing an increase of 1.6%[5] - Current assets increased to RMB 2,207,862 thousand from RMB 2,180,976 thousand, reflecting a growth of 1.2%[5] - The company’s non-current assets totaled RMB 118,121 thousand, up from RMB 107,616 thousand, marking an increase of 9.7%[5] - The company’s total equity increased to RMB 977,057 thousand from RMB 946,874 thousand, representing a growth of 3.2%[5] - The group had a current ratio of 1.8 and a debt ratio of 0.7 as of December 31, 2023[54] Revenue Breakdown - The landscaping segment's revenue fell by 54.0% or RMB 219.6 million to RMB 187.1 million, attributed to a decrease in project numbers[42] - The municipal engineering segment's revenue decreased by 13.3% or RMB 106.0 million to RMB 691.3 million, mainly due to a decline in average contract value[43] - The construction segment's revenue increased by 21.6% or RMB 167.3 million to RMB 942.4 million, driven by an increase in project numbers[44] - The other segment's revenue rose by 49.7% or RMB 19.5 million to RMB 58.7 million, due to increases in average contract value and project numbers[45] - The group's revenue decreased by 6.9% from RMB 2,018.3 million last year to RMB 1,879.4 million this year, primarily due to declines in the landscaping and municipal engineering segments[40] Expenses and Costs - The company’s financial costs rose to RMB 27,937 thousand from RMB 23,760 thousand, an increase of 17.8%[4] - Research and development expenses were reduced to RMB 376,000 from RMB 1,447,000, a decrease of approximately 74.0%[13] - Administrative expenses slightly increased by 3.3% or RMB 2.0 million to RMB 61.8 million this year[50] - Financing costs rose by 17.2% or RMB 4.1 million to RMB 27.9 million, primarily due to a decrease in capitalized interest[51] Market and Industry Insights - The construction industry in China achieved a total output value of RMB 31.6 trillion in 2023, growing by 5.8% year-on-year, while the added value of the construction industry reached RMB 8.6 trillion, an increase of 7.1%[28] - The number of construction enterprises increased by 10.5% year-on-year to 158,000, intensifying market competition[29] - The construction business activity index for December 2023 was 56.9%, indicating stable growth and remaining in a high prosperity range[31] - National water conservancy construction investment reached nearly RMB 1.2 trillion in 2023, setting a historical record for investment scale[34] - In 2024, the central budget investment is expected to allocate RMB 700 billion primarily for new infrastructure projects[37] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and has complied with its provisions during the year, except for the absence of the chairman at the annual general meeting due to unforeseen circumstances[66] - The company has established a compliance code for securities trading, which all directors confirmed adherence to during the year[68] - An audit committee consisting of three independent non-executive directors has reviewed the group's accounting policies and discussed audit, risk management, and financial reporting matters[72] - The financial information provided does not constitute the audited consolidated financial statements for the year but represents an excerpt of the accounts[73] - The annual report will be sent to shareholders and published on the company's website at an appropriate time[74] Acknowledgments and Future Plans - The company received multiple honors, including recognition as a top service enterprise in Ningbo and several provincial and national awards for quality engineering[35] - The company plans to follow national strategic planning and industry policies to enhance its operational efficiency and market presence[38] - The board expresses gratitude to customers, shareholders, and employees for their support and hard work[76] - The annual general meeting is scheduled for June 13, 2024, with a suspension of share transfer registration from June 6 to June 13, 2024[70][71]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 1,029,221,000, representing a 22.9% increase compared to RMB 837,241,000 in the same period of 2022[10]. - Profit before tax increased to RMB 18,984,000, a significant rise of 194.0% from RMB 6,458,000 in the previous year[10]. - Profit for the period attributable to owners of the Company was RMB 13,296,000, up 178.7% from RMB 4,770,000 in 2022[10]. - Revenue increased by 22.9% to RMB 1,029.2 million for the six months ended June 30, 2023, compared to RMB 837.2 million for the same period in 2022[47]. - Total comprehensive income for the period was RMB 13,244,000, compared to RMB 4,727,000 in the same period last year, marking an increase of 179%[155]. - Earnings per share attributable to owners of the Company increased to 10 RMB cents, up from 2.1 RMB cents in the previous year[155]. - Profit from operations rose significantly to RMB 31,333,000, representing a 69% increase from RMB 18,549,000 in the previous year[155]. - Gross profit for the period was RMB 57,465,000, a slight decrease of 2.2% compared to RMB 58,759,000 in 2022[155]. - Total profits of reportable segments for the six months ended June 30, 2023, were RMB 57,465,000, a decrease of 2.2% from RMB 58,759,000 in the same period of 2022[187]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 2,322,769,000, reflecting a 1.5% increase from RMB 2,288,592,000 at the end of 2022[12]. - Current liabilities increased to RMB 1,257,649,000, compared to RMB 1,235,716,000 at the end of 2022[159]. - Non-current liabilities remained stable at RMB 105,002,000, slightly down from RMB 106,002,000 at the end of 2022[159]. - Receivables included in "Trade and other receivables" decreased to RMB 274,173,000 as of June 30, 2023, from RMB 297,416,000 as of December 31, 2022, a decline of 7.8%[193]. - Contract assets increased to RMB 1,117,401,000 as of June 30, 2023, from RMB 1,107,154,000 as of December 31, 2022, showing a growth of 0.2%[193]. - Contract liabilities decreased to RMB 82,949,000 as of June 30, 2023, from RMB 100,731,000 as of December 31, 2022, a reduction of 17.7%[193]. Cash Flow - For the six months ended June 30, 2023, net cash used in operating activities was RMB (38,612,000), an improvement from RMB (57,767,000) in the same period of 2022, representing a decrease of approximately 33%[164]. - The company generated net cash from investing activities of RMB 28,030,000 for the six months ended June 30, 2023, compared to a cash outflow of RMB (19,874,000) in the prior year[164]. - Total cash at banks and on hand at the end of the period was RMB 275,223,000, an increase from RMB 243,884,000 at the end of June 2022, reflecting a growth of approximately 13%[164]. Revenue Segmentation - The sources of business revenue were landscaping construction (10.1%), municipal works construction (38.5%), building works (49.0%), and others (2.4%) for the six months ended June 30, 2023[34]. - Revenue from municipal works construction segment rose by 44.1% to RMB 396.6 million, up from RMB 275.3 million in the previous year[55]. - Revenue from building works segment increased by 38.3% to RMB 504.4 million, compared to RMB 364.7 million for the same period last year[56]. - Revenue from landscape construction segment decreased by 42.6% to RMB 103.5 million, down from RMB 180.2 million in the previous year[54]. - Revenue from agency services included in the "Others" segment was RMB 3,543,000 for the six months ended June 30, 2023, up from RMB 1,276,000 in the same period of 2022, reflecting an increase of approximately 177%[182]. Industry Insights - The construction industry in China saw a total output value of RMB 13.2 trillion in the first half of 2023, a year-on-year increase of 5.9%[16]. - Investment in infrastructure increased by 7.2% year-on-year, providing crucial support for the construction industry's growth[16]. - The investment in the railway transportation sector rose by 20.5%, indicating strong growth in this area[17]. - The business activity index of the construction industry remained at a high level, with a civil engineering construction index of 63.9% and a new order index of 56% in April 2023, indicating continued expansion[20]. - The State's infrastructure investment is expected to reach RMB 3.8 trillion in 2023, supported by policy-based financial instruments[36]. - The digital transformation of the construction industry is expected to enhance competitive advantages in project development through integration with new-generation information technology[30]. - The business activity expectations index for the construction industry remains optimistic, indicating strong confidence in market recovery[21]. Corporate Governance and Compliance - The Group has complied with corporate governance standards, except for the absence of the Board chairman at the annual general meeting[107]. - The Group's policy includes regular monitoring of current and expected liquidity needs to ensure sufficient cash reserves[95]. - The Group faces limited credit risk due to sales policies ensuring transactions with customers having appropriate credit records[93]. - The Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2023, have been reviewed by the Auditor and the Audit Committee, with no disagreements on accounting policies[140]. - The independent review concluded that there are no significant matters that would indicate the interim financial information is not prepared in accordance with IAS 34[151]. Employee and Operational Insights - The Group's employee benefits expense for the six months ended June 30, 2023, was RMB 22.3 million[112]. - The Group has 555 full-time employees as of June 30, 2023[112]. - The Group aims to adjust its operational model to lower costs and increase cash flow in response to ongoing economic pressures[42]. - The Group plans to leverage supply chain management resilience and seek new growth points to navigate current challenges[45]. Future Outlook - The "14th Five-Year Plan" outlines significant potential for the construction industry through integration with advanced manufacturing and information technology[23]. - Planned investment in water conservancy during the "14th Five-year Plan" period is RMB 5.2 trillion, representing a 57% increase from the previous plan[41]. - The construction of water conservancy infrastructure is emphasized as a long-term strategic initiative, contributing to high-quality development in the sector[27].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 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。 CHANHIGH HOLDINGS LIMITED 滄 海 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：2017） 截至二零二三年六月三十日止六個月 未經審核中期業績公告 財務摘要 截至六月三十日止六個月 二零二三年 二零二二年 人民幣千元 人民幣千元 （未經審核） （未經審核） 收入 1,029,221 837,241 毛利 57,465 58,759 期內溢利 13,244 4,727 ...

Financial Performance - In 2022, the company's revenue reached RMB 2,018,348,000, representing a year-on-year increase of 14.1% from RMB 1,768,762,000 in 2021[12]. - The gross profit for 2022 was RMB 139,568,000, with a gross margin of 6.9%, down from 8.8% in 2021[12][16]. - Profit before tax increased to RMB 46,958,000, a growth of 19.2% compared to RMB 39,394,000 in 2021[12]. - The profit for the year attributable to owners of the company was RMB 33,173,000, up from RMB 31,410,000 in 2021, marking a growth of 5.6%[12]. - The Group's annual revenue for the year was approximately RMB 2,018.3 million, representing an increase of approximately 14.1% compared to 2021[50]. - The Group's revenue increased by 14.1% or RMB249.5 million from RMB1,768.8 million last year to RMB2,018.3 million for the Year[73]. - The municipal works construction segment's revenue increased by 39.8% or RMB227.1 million, despite a 36.2% decrease in the number of projects[78]. - The building works segment's revenue rose by 47.5% or RMB249.5 million, with a 22.0% decrease in the number of projects[78]. - Revenue from the municipal works construction segment rose by 39.8% to RMB 797.3 million, an increase of RMB 227.1 million compared to the previous year[83]. - Revenue from the building works segment increased by 47.5% to RMB 775.1 million, an increase of RMB 249.5 million compared to the previous year[84]. - Revenue from the landscape construction segment decreased by 33.4% to RMB 406.7 million, a decrease of RMB 204.4 million compared to the previous year[82]. Assets and Liabilities - Total assets as of December 31, 2022, were RMB 2,288,592,000, slightly down from RMB 2,290,208,000 in 2021[14]. - Total liabilities decreased to RMB 1,341,718,000 from RMB 1,376,433,000 in 2021, indicating improved financial stability[14]. - The Group's net current assets increased by 9.3% to RMB 945.3 million, primarily due to business growth and improved cash collection efforts[106]. - Trade and other receivables decreased by 8.1% or RMB 65.4 million from RMB 805.0 million as of December 31, 2021, to RMB 739.6 million as of December 31, 2022, primarily due to increased efforts in receivables collection[111]. - Trade payables increased by 9.3% or RMB 30.7 million from RMB 329.2 million as of December 31, 2021, to RMB 359.9 million as of December 31, 2022, due to business growth[126]. - The total trade and bills receivables as of December 31, 2022, amounted to RMB 252.8 million, down from RMB 449.7 million in 2021[113]. - The allowance for bad and doubtful debts for trade receivables increased from RMB 42.8 million in 2021 to RMB 79.3 million in 2022[110]. - As of December 31, 2022, the Group's bank borrowings amounted to RMB 666,002,000, a decrease from RMB 688,796,000 in 2021[134]. Operational Insights - The company emphasized the importance of technological innovations in construction, aiming for sustainable development and transformation in the industry[21]. - The company is focused on optimizing its corporate structure and strengthening internal management to achieve sustainable growth[21]. - The digital transformation of the construction industry is expected to stimulate new markets and improve construction efficiency through intelligent construction technologies[40]. - The "14th Five-Year Plan" emphasizes the integration of advanced manufacturing and information technology, indicating significant potential for development in the construction sector[41]. - The Group's business model focuses on high-quality project creation and standardized work sites, emphasizing project quality management and technological innovations[53]. - The construction of water conservancy infrastructure is a key focus, aligning with national objectives to stimulate new markets[45]. - The Group plans to focus on traditional infrastructure construction and water conservancy as new growth points, leveraging scientific and technological innovation[72]. Market and Industry Trends - The construction industry is expected to play a greater role in the national economy in 2023, driven by government policies and economic recovery efforts[20]. - The total output value of the construction industry in China reached RMB 31.2 trillion in 2022, representing a year-on-year increase of 6.5%[29]. - The incremental value of the construction industry for the full year amounted to RMB 8.3383 trillion, reflecting a year-on-year increase of 5.5%[29]. - Profits of construction enterprises with qualification grades were RMB 836.9 billion, a decrease of 1.2% compared to the previous year, while state-owned enterprises saw profits of RMB 392.2 billion, an increase of 8.4%[32]. - The number of standalone construction enterprises increased to 144,000, representing a year-on-year growth of 11.6%[34]. - The business activity index of the construction industry in December was 54.4%, indicating steady growth, with the civil engineering construction index at 57.1%[37]. - The construction industry employed 51.84 million people, a year-on-year decrease of 1.9%[33]. - Total investment in real estate for the year decreased by 10%[33]. Risk Management and Governance - The Group's risk management framework evaluates material risks including investment, interest rate, and liquidity risks to ensure effective operational management[55]. - The Group's credit risk primarily arises from trade and other receivables, as well as cash and bank balances[168]. - The Group has implemented policies to ensure sales are made to customers with appropriate credit records, minimizing credit risk concentration[168]. - The Group regularly monitors current and expected liquidity requirements to maintain sufficient cash reserves for short and long-term needs[172]. - The Group has no significant credit risk concentration and has established a team to determine credit limits and approvals[168]. - The management team is responsible for overall management, corporate policy making, and strategic planning of the Group's operations[177]. Leadership and Experience - The Group's executive directors have extensive experience in the landscape and public work construction industry, with over 20 years of experience each[186]. - Ms. Wang Sufen, a non-executive director, has over 20 years of experience in the trading business, enhancing the Group's strategic decision-making[188]. - Mr. Fan Rong has been an independent non-executive Director since March 15, 2017, and is a member of the Chinese Institute of Certified Public Accountants since 1995[193]. - Mr. Shi Weixing, appointed as an independent non-executive Director on March 15, 2017, holds a doctorate degree in engineering from Tongji University[195]. - Mr. Yang Zhongkai has served as an independent non-executive Director since March 15, 2017, and is currently the Chairman of partners conference at King & Ray Law Firm[196].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 CHANHIGH HOLDINGS LIMITED 滄 海 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：2017） 截至二零二二年十二月三十一日止年度 全年業績公告及建議修訂公司組織章程大綱及細則 財務摘要 二零二二年 二零二一年 人民幣千元 人民幣千元 收入 2,018,348 1,768,762 毛利 139,568 154,998 年內溢利及全面收益總額 33,099 31,300 以下人士應佔年內溢利╱（虧損）及全面收益總額： 本公司擁有人 33,173 31,410 非控股權益 (74) (110) ...