远大住工公告，公司接获联交所函件，载列恢复买卖的指引。指引包括刊发所有尚未刊发的财务业绩、 进行独立法证调查、证明管理层及任何人士的诚信、能力及品格、进行内部控制检讨、证明公司已遵守 上市规则第13.24条等。公司必须符合复牌指引的所有规定，纠正导致其停牌的问题，并全面遵守上市 规则，达到联交所满意的程度，其证券方可恢复买卖。复牌前，公司必须公布复牌指引及18个月期限， 并在停牌期间公布季度更新。公司现正采取适当步骤以解决导致其停牌的问题，并全面遵守上市规则， 以达到联交所满意的程度，并将寻求尽快恢复其股份买卖。 ...

Financial Performance - The company reported a revenue of RMB 1.2 billion for the first half of 2024, representing a year-on-year increase of 15%[1]. - The company expects a revenue guidance of RMB 2.5 billion for the full year 2024, reflecting a projected growth of 10% compared to 2023[1]. - The company's revenue for the six months ended June 30, 2024, was RMB 844,435 thousand, a decrease of 10.1% compared to RMB 939,241 thousand for the same period in 2023[12]. - Revenue decreased by 10.1% from RMB 939.2 million for the six months ended June 30, 2023, to RMB 844.4 million for the six months ended June 30, 2024[14]. - The company reported a net loss of RMB 301,401 thousand for the six months ended June 30, 2024, compared to a net loss of RMB 104,994 thousand for the same period in 2023, indicating a significant increase in losses[105]. - The operating loss increased significantly to RMB 138,405 thousand from RMB 38,152 thousand in the previous year, reflecting a deterioration in operational performance[104]. - The company incurred a pre-tax loss of RMB 305,641 thousand, compared to a pre-tax loss of RMB 113,712 thousand in the prior year, marking an increase of approximately 168.5%[104]. - Basic and diluted loss per share for the period was RMB 0.62, compared to RMB 0.22 in the same period last year, indicating a worsening of financial performance[104]. - The company reported a gross profit for the same period of RMB 171,099 thousand, down from RMB 211,572 thousand in 2023, indicating a decline of about 19.1%[104]. - The company reported a decrease in retained earnings to RMB (261,902) thousand as of June 30, 2024, from RMB 34,427 thousand at the end of 2023[108]. Revenue Breakdown - Revenue from PC component manufacturing was RMB 766,851 thousand, with a gross profit of RMB 160,135 thousand and a gross margin of 20.9%[13]. - Revenue from digital EPC services was RMB 30,430 thousand, with a gross profit of RMB 9,508 thousand and a gross margin of 31.2%[13]. - Revenue from modular integrated product manufacturing increased by 58.0% from RMB 29.8 million to RMB 47.1 million[14]. - Revenue from digital EPC business decreased by 66.8% from RMB 91.7 million to RMB 30.4 million[14]. - Revenue from PC components sales was RMB 787,986 thousand, down 3.5% from RMB 817,063 thousand year-over-year[121]. - The EPC construction contract revenue dropped to RMB 9,295 thousand, a decline of 89.8% compared to RMB 91,734 thousand in the same period last year[121]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by the end of 2025[1]. - New product launches include a modular construction system that is expected to reduce construction time by 30%[1]. - The company aims to enhance its digital support systems across the entire construction industry chain, leveraging its technological capabilities[10]. - The company is focused on continuous innovation and R&D to drive the modernization of the construction industry in China[10]. - The company aims to transition from a construction enterprise to a "digital and product-oriented" technology enterprise, focusing on high-value innovative businesses[25]. Operational Efficiency - The gross profit margin improved to 35%, up from 30% in the previous year, indicating better cost management[1]. - The company has initiated a strategic partnership with local firms to establish joint factories, enhancing production capacity by 40%[1]. - The company is implementing a dual management strategy for joint factories to optimize operational efficiency[1]. - The company has invested in 58 joint factories, with 57 having production capacity and 6 achieving profitability[25]. Research and Development - Research and development investments increased by 18%, focusing on smart construction technologies and IoT applications[1]. - The total R&D expenses for the six months ended June 30, 2024, included RMB 287.42 million in employee compensation, RMB 306.31 million in testing and material costs, and RMB 22.69 million in depreciation and amortization[43]. - The company’s research and development expenses were RMB 40,594 thousand, compared to RMB 50,194 thousand in the previous year, indicating a reduction of about 19.1%[104]. Financial Position and Liquidity - The company's asset-liability ratio increased to 64.4%, compared to 63.9% in the previous year, reflecting a 0.5 percentage point rise[12]. - Cash and cash equivalents decreased from RMB 2,084 million as of June 30, 2023, to RMB 950 million as of June 30, 2024[53]. - The net cash generated from operating activities for the six months ended June 30, 2024, was RMB 166.993 million, a decrease of 47% compared to RMB 315.322 million for the same period in 2023[54]. - The company’s current liabilities net amount was RMB 806.1 million as of June 30, 2024, down from RMB 918.6 million as of December 31, 2023[59]. - The company has unutilized bank financing of RMB 2,213.8 million as of June 30, 2024, which can be accessed for operational funding needs[59]. Shareholder and Incentive Plans - The company has approved a long-term incentive plan that includes a total of 6,350,382 shares to be granted to 150 incentive targets, including three executive directors and two supervisors[191]. - The board of directors approved the stock option plan on July 6, 2023, allowing for the exercise of options under the plan[69]. - The incentive plan aims to attract, retain, and motivate directors and senior management to support the company's strategic goals[68]. - The company will not require incentive recipients to contribute funds for the purchase of restricted shares, as the cost will be covered by the company[69]. Legal and Compliance - The company established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[94]. - The company has no significant contingent liabilities during the reporting period[88]. - The company has engaged in related party transactions that are exempt from disclosure under the listing rules due to their low value[190].

Financial Performance - Revenue decreased by 10.1% from RMB 939.2 million for the six months ended June 30, 2023, to RMB 844.4 million for the six months ended June 30, 2024[15]. - Gross profit fell by 19.1% from RMB 211.6 million to RMB 171.1 million, with a gross margin decline from 22.5% to 20.3%[15]. - Operating loss increased by 262.8% from RMB 38.2 million to RMB 138.4 million[15]. - Net loss attributable to shareholders rose by 188.3% from RMB 102.8 million to RMB 296.3 million[15]. - The company reported a net loss of RMB 301,401 thousand for the six months ended June 30, 2024, compared to a net loss of RMB 104,994 thousand for the same period in 2023, indicating a significant increase in losses[106]. - Basic and diluted loss per share for the period was RMB 0.62, compared to RMB 0.22 in the same period last year, reflecting an increase of approximately 181.8%[105]. Revenue Breakdown - Revenue from the PC component manufacturing business decreased by 6.1% to RMB 766.9 million for the six months ended June 30, 2024, with a gross profit decline of 10.5% to RMB 160.1 million, resulting in a gross margin of 20.9%[22]. - Revenue from modular integrated product manufacturing increased by 58.0% to RMB 47.1 million, with gross profit rising to RMB 1.4 million, achieving a gross margin of 3.0%[24]. - Digital EPC business revenue fell by 66.8% to RMB 30.4 million, with gross profit decreasing by 70.7% to RMB 9.5 million, leading to a gross margin of 31.2%[25]. - Revenue from PC components manufacturing decreased by 6.1% from RMB 817.1 million to RMB 766.9 million, increasing its share of total revenue from 86.9% to 90.8%[34]. - Revenue from modular integrated product manufacturing increased by 58.0% from RMB 29.8 million to RMB 47.1 million, with its share of total revenue rising from 3.2% to 5.6%[35]. - Revenue from digital EPC decreased by 66.8% from RMB 91.7 million to RMB 30.4 million, reducing its share of total revenue from 9.8% to 3.6%[35]. Operational Highlights - The company is involved in the "Broad Union Plan," collaborating with local partners to establish joint factories for PC production[4]. - The company is focused on expanding its market presence through strategic partnerships and joint ventures[4]. - The company aims to build a digital support system for the entire construction industry chain, enhancing efficiency and reducing uncertainty in construction processes[9]. - The company has developed an industry-leading digital information system, PC-CPS, to enable large-scale continuous manufacturing of customized products[9]. - The production volume of PC components increased by 2.8% from 358,000 cubic meters to 368,000 cubic meters[20]. - The sales volume of PC components rose by 2.4% from 379,000 cubic meters to 388,000 cubic meters[20]. Financial Position - The company's total cash and cash equivalents decreased from RMB 208.4 million as of June 30, 2023, to RMB 95.0 million as of June 30, 2024[54]. - The company's period loss increased by 187.1% from RMB 105.0 million for the six months ended June 30, 2023, to RMB 301.4 million for the six months ended June 30, 2024[53]. - As of June 30, 2024, the net current liabilities of the company were RMB 806.1 million, a decrease from RMB 918.6 million as of December 31, 2023[60]. - The total borrowings of the company decreased to RMB 3,368.7 million as of June 30, 2024, from RMB 3,566.6 million as of December 31, 2023, representing a reduction of RMB 197.9 million[61]. - The company's total assets amounted to RMB 8,079,190 thousand, down from RMB 8,681,587 thousand, a decrease of approximately 6.9%[108]. - The company's cash and cash equivalents dropped to RMB 95,007 thousand from RMB 378,415 thousand, a significant decrease of approximately 74.9%[108]. Management and Governance - The company emphasizes the importance of corporate governance as per the Hong Kong Corporate Governance Code[4]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[95]. - The company confirmed compliance with the standards for securities trading by all directors and supervisors for the six months ended June 30, 2024[92]. - The management team has been engaged in the construction industrialization field since 1996, showcasing extensive experience[9]. - The company has appointed Zhang Jian as the General Manager while Hu Shengli resigned as Executive Director, Vice Chairman, and General Manager[94]. Investment and Future Plans - The company aims to transition from a construction enterprise to a "digital and product-oriented" technology company, focusing on high-value innovative businesses and reducing reliance on the real estate sector[26]. - The company plans to participate in the renovation of 50,000 old residential communities nationwide in 2024, focusing on cost reduction and asset value enhancement[28]. - The company is actively collaborating with upstream and downstream enterprises to establish standards for industrialized construction[9]. - The company plans to leverage digital EPC advantages to focus on the "two parks" (campus and industrial park) and urban renewal markets, enhancing competitiveness and influence in these areas[27]. - The company is actively expanding overseas markets and promoting the layout of production capacity abroad, aiming for "Yuan Da Intelligent Construction" to set sail internationally[26]. Shareholder Information - The total number of H-shares granted under the restricted stock incentive plan is capped at 3 million shares, representing 0.62% of the company's total issued shares as of the report date[70]. - The stock option incentive plan allows for a maximum of 7 million H-shares to be granted, which would represent 1.44% of the total issued shares if fully exercised[70]. - The fair value of H-shares granted to the top five highest-paid employees on July 6, 2023, totals RMB 407,559[74]. - The company aims to attract, retain, and incentivize directors and key personnel through the established incentive plans[70]. - The company has not conducted any share sales or profit distributions related to the 2021 medium to long-term incentive plan during the reporting period[73].

Investment Rating - Maintained "Buy" rating with a revised target price of HK$2.90, equivalent to 10.8x/8.0x/5.8x 2024/2025/2026 EV/EBITDA [10][16] Core Views - 2023 revenue was RMB 2.201 billion, down 1.4% YoY, with PC component manufacturing revenue at RMB 1.913 billion, down 5.5% YoY [2] - 2023 gross margin improved to 24.3%, up 7.6 percentage points, while expense ratio decreased to 33.9%, down 4.4 percentage points [2] - 2023 net operating cash flow increased to RMB 580 million, up from RMB 423 million in 2022, with combined net operating and investment cash flow at RMB 476 million [21] - 2023 new contract value reached RMB 2.969 billion, up 25.3% YoY, driven by a 35.9% increase in PC component manufacturing contracts [11] Financial Performance - 2023 net loss narrowed to RMB 389 million from RMB 808 million in 2022, with basic EPS improving to RMB -0.815 from RMB -1.677 [29] - 2024/2025/2026 EPS forecasts revised to RMB -0.217/RMB 0.037/RMB 0.393, respectively [10] - 2023 accounts receivable decreased by 5.8% to RMB 2.628 billion, with impairment losses down 95.3% to RMB 4 million [21] Business Highlights - Digital EPC revenue surged 871.3% YoY to RMB 160 million in 2023, reflecting strong growth in digital construction solutions [2] - The company implemented over ten digital full-assembly projects, including Beijing University of Chinese Medicine and Changde Economic Development Zone [11] - Expanded international market presence with over 300 overseas client engagements and 40+ projects in design and contract stages, including successful deployments of customized "Magic Cube" building products in Saudi Arabia and Los Angeles [11] Industry and Market Performance - The stock price declined 52.9% over the past year, underperforming the Hang Seng Index by 34.1 percentage points [3] - Average share price over the past year ranged between HK$2.3 and HK$2.7 [3] Future Outlook - Revenue is expected to grow to RMB 3.875 billion by 2026, with net profit projected to reach RMB 187 million [29] - The company continues to focus on integrating digital technology with its CPS+ intelligent management platform to enhance efficiency in smart construction solutions [11]

Corporate Governance - The company’s annual performance for the year ending December 31, 2023, has been reviewed by the Audit Committee[12] - The company aims to maintain a female board member ratio of over 20% within the next three years to ensure board diversity[17] - The company’s board consists of 11 members, with 2 being female, indicating a commitment to diversity[17] - The company’s internal control and risk management systems are designed to reasonably and effectively manage various risks faced by the business[27] - The company’s board is responsible for maintaining sufficient internal control systems and risk management frameworks, reviewing their effectiveness annually[27] - The company’s strategic committee held one meeting during the reporting period to discuss relevant matters[23] - The company’s management is responsible for daily operations and implementing the objectives and strategies delegated by the board[8] - The company’s remuneration and nomination committees have held meetings to discuss compensation policies and director nomination standards[20][15] - The company’s board is committed to promoting a culture of open and constructive discussion among directors[2] - The company’s directors are elected by shareholders for a term of three years, with the possibility of re-election[3] Financial Performance - For the year ended December 31, 2023, the net cash generated from operating activities was RMB 579.7 million, an increase from RMB 423.1 million in 2022, primarily due to adjustments for non-cash items and changes in working capital[81][83] - The net cash used in investing activities for the year ended December 31, 2023, was RMB 103.9 million, mainly attributed to purchases of property, plant, and equipment totaling RMB 214.1 million[85] - The net cash used in financing activities for the year ended December 31, 2023, was RMB 456.4 million, primarily due to loan repayments of RMB 2,522.8 million and interest payments of RMB 133.3 million[86] - As of December 31, 2023, the total borrowings amounted to RMB 3,566.6 million, an increase of RMB 109.8 million from RMB 3,456.8 million in 2022[88] - The company's cash and cash equivalents increased to RMB 378.4 million at the end of 2023, compared to RMB 359.0 million at the end of 2022[81] - The net current liabilities decreased from RMB 1,207.4 million at the end of 2022 to RMB 918.6 million at the end of 2023[87] - The company expects to generate net cash inflows from operating activities in the next 12 months, supported by measures to improve cash flow and reduce costs[87] - Capital expenditures decreased significantly from RMB 599.5 million for the year ended December 31, 2022, to RMB 231.9 million for the year ended December 31, 2023[89] - The company had unutilized bank financing of RMB 2,137.2 million as of December 31, 2023, which can be accessed to meet further working capital needs[87] - The company reported a loss of RMB 409.0 million before tax adjustments for the year ended December 31, 2023[83] - Financial expenses increased by 10.1% from RMB 109.2 million for the year ended December 31, 2022, to RMB 120.1 million for the year ended December 31, 2023, primarily due to reduced exchange gains and decreased interest income[103] - The company's share of losses from associates increased by 80.5% from RMB 43.2 million for the year ended December 31, 2022, to RMB 78.0 million for the year ended December 31, 2023, impacted by the overall decline in profitability in the real estate sector[108] - Annual losses decreased by 51.6% from RMB 809.1 million for the year ended December 31, 2022, to RMB 391.4 million for the year ended December 31, 2023[112] - The company recorded a loss of RMB 51.4 million from the sale of five joint ventures classified as financial assets measured at fair value for the year ended December 31, 2023[110] - Interest income decreased from RMB 9.125 million for the year ended December 31, 2022, to RMB 7.066 million for the year ended December 31, 2023[104] - The company did not sell any subsidiaries for the year ended December 31, 2023, while it recorded a gain of RMB 2.1 million from the sale of a subsidiary for the year ended December 31, 2022[109] - The company reported a net exchange loss of RMB 1,000 for the year ended December 31, 2023, compared to a gain of RMB 3.775 million for the year ended December 31, 2022[104] - The interest expense on bank loans and other borrowings was RMB 132.856 million for the year ended December 31, 2023, slightly up from RMB 132.132 million for the year ended December 31, 2022[104] - Deferred tax assets were RMB 17.6 million for the year ended December 31, 2023, down from RMB 23.8 million for the year ended December 31, 2022[111] - The company recorded a capitalized interest expense of RMB 16.559 million for the year ended December 31, 2023, compared to RMB 19.945 million for the year ended December 31, 2022[104] - As of December 31, 2023, the company's cash and cash equivalents balance was RMB 378.4 million, an increase from RMB 359.0 million as of December 31, 2022, representing a growth of 5.4%[115] - General and administrative expenses increased by 4.7% to RMB 268.4 million for the year ended December 31, 2023, compared to RMB 256.4 million for the year ended December 31, 2022, accounting for 12.2% of total revenue, up from 11.5%[121] - Research and development expenses decreased by 9.7% to RMB 166.5 million for the year ended December 31, 2023, down from RMB 184.4 million for the year ended December 31, 2022[124] - Trade and other receivables and contract assets impairment losses decreased by 94.4% to RMB 4.2 million for the year ended December 31, 2023, from RMB 75.8 million for the year ended December 31, 2022, due to improved receivables[126] - The company recorded a fair value change loss of RMB 74.0 million for the year ended December 31, 2023, significantly reduced from RMB 365.3 million for the year ended December 31, 2022[135] - The company did not engage in any significant acquisitions during the year ended December 31, 2023[118] - The company did not have any significant investments or capital asset purchases approved by the board as of December 31, 2023[117] - Research and development expenses capitalized amounted to RMB 62.8 million for the year ended December 31, 2023, representing 37.7% of total R&D expenses[124] - The company utilized restricted bank deposits of RMB 192.4 million as of December 31, 2023, compared to RMB 312.9 million as of December 31, 2022[133] - The company did not enter into any off-balance sheet arrangements as of December 31, 2023[134] Business Operations and Market Outlook - The company's business and future growth prospects rely on the development of the Chinese construction industry, with revenue primarily coming from prefabricated construction, which is expected to continue but is subject to structural changes and market preferences[31] - The company faces risks related to bidding for PC component manufacturing contracts, including the possibility of not being invited to bid or winning contracts due to increased competition, which could impact financial performance and business outlook[32] - Since 2016, the prefabricated construction industry has experienced explosive growth due to strong support from national and local policies, leading to increased demand for PC production equipment, primarily driven by the success of the "Yuan Da Union" plan[33] - The demand for PC production equipment may slow down as the company completes its strategic layout of joint factories across the country, with reduced procurement needs for new equipment following rapid growth[33] - The company is focused on building a digital support system for the entire construction industry chain, aiming for large-scale continuous manufacturing of customized products[156] - The company aims to upgrade traditional construction methods to a modern manufacturing model through digitalization and information technology[156] - The company has developed an industry-leading software and hardware technology for the prefabricated construction industry, implementing a full-process digital information system[156] - The company is committed to creating construction industry standards by integrating upstream and downstream related enterprises[156] - The company is focused on the development and application of innovative technologies in the prefabricated construction industry[156] - The company aims to guide the operational implementation of real space through data-driven methods[156] - The company is exploring market expansion opportunities and potential mergers and acquisitions to enhance its competitive position[156] Revenue and Profitability - Revenue from the PC component manufacturing business decreased by 5.5% from RMB 2,023.8 million for the year ended December 31, 2022, to RMB 1,913.3 million for the year ended December 31, 2023[169] - Gross profit increased by 43.5% from RMB 373.3 million for the year ended December 31, 2022, to RMB 535.8 million for the year ended December 31, 2023; gross margin rose from 16.7% to 24.3%[170] - The gross profit of the digital EPC business surged by 18620.8% from RMB 0.2 million to RMB 35.9 million, with gross margin increasing from 1.2% to 22.4%[171] - Operating loss decreased by 73.0% from RMB 317.3 million to RMB 85.5 million for the year ended December 31, 2023[173] - Net cash generated from operating activities grew by 37.0% from RMB 423.1 million to RMB 579.7 million[174] - New contracts signed for the PC component manufacturing business increased by 35.9% from RMB 1,949.8 million to RMB 2,649.6 million[176] - New contracts for the modular integrated product manufacturing business declined by 64.3% from RMB 228.5 million to RMB 81.5 million[177] - The number of PC components produced slightly decreased by 0.2% from 845,000 cubic meters to 843,000 cubic meters[179] - The company aims to fully transform into a digital, zero-carbon, and intelligent construction technology service enterprise in 2024[180] - New contracts for the digital EPC business amounted to RMB 238.3 million, representing a year-on-year growth of 24.8%[185] - Revenue decreased by 1.4% from RMB 2,232.3 million for the year ended December 31, 2022, to RMB 2,201.1 million for the year ended December 31, 2023[195] - Modular integrated product manufacturing revenue declined by 37.4% from RMB 129.1 million for the year ended December 31, 2022, to RMB 80.8 million for the year ended December 31, 2023[196] - Gross profit for PC component manufacturing increased by 36.4% from RMB 362.9 million for the year ended December 31, 2022, to RMB 495.0 million for the year ended December 31, 2023, with gross margin rising from 17.9% to 25.9%[197] - Net loss decreased by 51.6% from RMB 809.1 million for the year ended December 31, 2022, to RMB 391.4 million for the year ended December 31, 2023[200] - The company reported a net loss attributable to equity shareholders of RMB 389.1 million for the year ended December 31, 2023, compared to RMB 808.1 million in the previous year[192] - The asset-liability ratio was 63.3% as of December 31, 2023, compared to 64.2% as of December 31, 2022[192] - Operating loss improved from RMB 317.3 million in the previous year to RMB 85.5 million for the year ended December 31, 2023[192] - The company aims to enhance its market expansion strategies and product development in the upcoming fiscal year[195] - Future outlook includes a focus on improving operational efficiency and exploring potential mergers and acquisitions to strengthen market position[195] - The company is committed to advancing new technologies in modular construction to drive growth and innovation[195]

Financial Performance - The total revenue for the company reached RMB 4,345,000, with core services contributing RMB 4,195,000 and non-core services contributing RMB 150,000[2]. - Total revenue for the year ended December 31, 2023, was RMB 2,201,110 thousand, a decrease from RMB 2,232,285 thousand in 2022[88]. - Gross profit for the same period was RMB 535,823 thousand, compared to RMB 373,325 thousand in 2022, indicating an improvement in profitability[88]. - The company reported a net loss of RMB 391,439 thousand for the year, an improvement from a net loss of RMB 809,071 thousand in 2022[88]. - The asset-liability ratio decreased to 63.3% in 2023 from 64.2% in 2022, reflecting improved financial stability[88]. - Cash generated from operating activities increased by 37.0% to RMB 579.7 million for the year ended December 31, 2023[114]. - The total assets amounted to RMB 8,681.6 million as of December 31, 2023, compared to RMB 9,423.4 million as of December 31, 2022[109]. - The total liabilities were RMB 5,496.1 million as of December 31, 2023, compared to RMB 6,053.1 million as of December 31, 2022[109]. - The net current liabilities as of December 31, 2023, were RMB 918.6 million, down from RMB 1,207.4 million as of December 31, 2022[166]. - The company recorded a net cash inflow from operating activities, which included adjustments for non-cash items and changes in working capital[187]. Revenue Breakdown - Revenue from modular integrated product manufacturing decreased by 37.4% from RMB 129.1 million in 2022 to RMB 80.8 million in 2023, accounting for 3.7% of total revenue[45]. - Digital EPC business revenue increased by 871.3% from RMB 16.5 million in 2022 to RMB 160.4 million in 2023, representing 7.3% of total revenue[45]. - The revenue from the PC component manufacturing business decreased by 5.5% from RMB 2,023.8 million for the year ended December 31, 2022, to RMB 1,913.3 million for the year ended December 31, 2023[140]. - The gross profit from the digital EPC business surged by 18,620.8% from RMB 0.2 million for the year ended December 31, 2022, to RMB 35.9 million for the year ended December 31, 2023, with a gross margin increase from 1.2% to 22.4%[198]. - The gross profit from the PC component manufacturing business increased by 36.4% from RMB 362.9 million for the year ended December 31, 2022, to RMB 495.0 million for the year ended December 31, 2023, with a gross margin increase from 17.9% to 25.9%[197]. ESG and Sustainability - The company emphasizes sustainable development and focuses on ESG-related risks and opportunities that could significantly impact its operations[21]. - The board of directors is responsible for ESG matters, leading the review and decision-making processes related to ESG strategies and policies[21]. - The annual report period covers from January 1, 2023, to December 31, 2023, marking the fifth issuance of the ESG report[10]. - The company is dedicated to addressing environmental and social issues, reflecting a responsible attitude in its reporting[11]. - The greenhouse gas emissions totaled 10,377.23 tons of CO2 equivalent in 2023, a reduction from 12,885.92 tons in 2022[33]. - The density of greenhouse gas emissions improved to 123.14 tons of CO2 equivalent per ten thousand cubic meters of production in 2023, compared to 152.50 tons in 2022[33]. - The company aims for 100% compliance in pollutant discharge and solid waste disposal[31]. - The company has implemented various internal management systems for environmental protection and pollution control[31]. - The company has established a top-down ESG governance structure to enhance ESG management standards[51]. Strategic Initiatives and Market Focus - The company aims to transition from a construction enterprise to a "digital and product-oriented" technology company, focusing on high-value innovative businesses[70]. - The government has emphasized the need for stable and healthy development in the real estate market, which the company plans to align with in its strategic initiatives[69]. - The company is actively exploring new materials and products to drive innovation and expand into overseas markets[70]. - The company plans to focus on integrated building market needs, including apartments, rural villas, and wellness tourism[70]. - The cultural tourism and self-built villa sectors are identified as new growth drivers for the company, aligning with national rural revitalization efforts[73]. - The company has successfully shifted its focus away from heavy reliance on the real estate sector, exploring new growth areas such as affordable housing construction and rural revitalization[150]. - The company has signed cooperation memorandums and strategic agreements with countries including the United States, New Zealand, and Turkey, and has implemented projects in Saudi Arabia and California[153]. Operational Efficiency and Innovations - The company is committed to intelligent construction innovations, building a diverse technical system including prefabricated and modular construction[15]. - The company aims to achieve digital transformation in the prefabricated construction sector through close cooperation with partners[17]. - The company has implemented a digital construction strategy, enhancing its capabilities in smart construction solutions[82]. - More than 10 digital prefabricated projects have been successfully implemented, including student dormitories and medical equipment industrial parks[82]. - The CPS+ intelligent integration management platform has been upgraded to enhance the overall capability of smart construction solutions[82]. - The company has implemented a strategy to enhance employee welfare and improve working conditions[63]. - Customer satisfaction and product quality are key performance indicators for the company, reflecting its commitment to service excellence[62]. Product Development and Market Demand - The company has launched various products including rural housing, cultural tourism villas, and multi-layer apartments, aiming for standardized construction to reduce costs and enhance profitability[71]. - There is an annual demand for 5 million new rural houses in China, with the cultural tourism industry market size reaching RMB 4.91 trillion in 2023, a year-on-year growth of 75.49%[73]. - The company has developed a full-assembly green villa product series, covering 13 provinces, 59 cities, and 163 towns across the country[74]. - The company’s self-developed ultra-high-performance concrete is 5-7 times stronger than traditional reinforced concrete, with a weight reduction of 70% and a lifespan exceeding 100 years[79]. - Over the past year, the company has hosted over 300 overseas clients, with more than 40 projects entering the design and contract phase[79]. - The company aims to expand its overseas market presence by leveraging its large-scale production and digital management capabilities[80]. - The company’s products have successfully entered markets in Saudi Arabia and California, with plans for further regional expansion[79]. - The company emphasizes the importance of not only entering overseas markets but also ensuring sustainable and effective operations abroad[80].

Financial Performance - Other income decreased by 51.3% from RMB 16.9 million for the six months ended June 30, 2022, to RMB 8.3 million for the six months ended June 30, 2023, primarily due to losses from the sale of investment properties[2]. - The company reported a loss of RMB 6.845 million from the sale of investment properties for the six months ended June 30, 2023, with no such loss reported in the previous period[3]. - The total loss for the period decreased by 68.3% from RMB 331.0 million for the six months ended June 30, 2022, to RMB 105.0 million for the six months ended June 30, 2023[25]. - The company reported a net loss of RMB 104,994 thousand for the six months ended June 30, 2023, compared to a net loss of RMB 331,032 thousand for the same period in 2022, indicating a significant improvement[126]. - The total comprehensive loss for the period was RMB 101,544 thousand, down from RMB 331,032 thousand in the previous year, reflecting a reduction in losses[126]. - The company's revenue for the six months ended June 30, 2023, was RMB 939.2 million, a decrease of 2.1% from RMB 959.6 million in the same period of 2022[140]. - Total revenue for the group for the six months ended June 30, 2023, was RMB 939,241 thousand, down from RMB 959,621 thousand in 2022, reflecting a decrease of 2.5%[183]. - The reported loss for the group was RMB (4,792) thousand, a significant improvement compared to a loss of RMB (133,300) thousand in the same period of 2022[194]. Expenses and Cost Management - Sales and marketing expenses decreased by 11.7% from RMB 118.6 million for the six months ended June 30, 2022, to RMB 104.6 million for the six months ended June 30, 2023, representing 11.1% of total revenue[5]. - General and administrative expenses decreased by 38.1% from RMB 191.2 million for the six months ended June 30, 2022, to RMB 118.3 million for the six months ended June 30, 2023, accounting for 12.6% of total revenue[8]. - Research and development expenses decreased by 6.7% from RMB 83.5 million for the six months ended June 30, 2022, to RMB 77.9 million for the six months ended June 30, 2023[12]. - Financial expenses decreased by 9.1% from RMB 62.5 million for the six months ended June 30, 2022, to RMB 56.8 million for the six months ended June 30, 2023, mainly due to increased capitalized interest[14]. - The company's total salary expenses decreased by 17.1% to RMB 170.0 million for the six months ended June 30, 2023, down from RMB 205.1 million for the same period in 2022[52]. - Employee costs, including salaries, wages, bonuses, and other benefits, totaled RMB 159,823 thousand for the six months ended June 30, 2023, down from RMB 193,087 thousand in the same period of 2022, representing a decrease of 17.16%[199]. Cash Flow and Liquidity - Cash and cash equivalents decreased from RMB 347.2 million as of June 30, 2022, to RMB 208.4 million as of June 30, 2023[26]. - Net cash generated from operating activities was RMB 315.3 million for the six months ended June 30, 2023, compared to RMB 178.0 million for the same period in 2022[27]. - The net cash generated from operating activities reached RMB 315,322 thousand for the six months ended June 30, 2023[174]. - The net cash used in investing activities was RMB 104.6 million, mainly attributed to purchases of properties, plants, and equipment amounting to RMB 140.6 million[41]. - The net cash used in financing activities was RMB 361.4 million, primarily due to loan proceeds of RMB 854.3 million and repayment of borrowings totaling RMB 1,112.6 million[41]. - The company had unutilized bank financing of RMB 1,773.4 million as of June 30, 2023, to support further operational funding needs[36]. - The company had cash and cash equivalents of RMB 208,361 thousand as of June 30, 2023, down from RMB 347,249 thousand at the end of the previous period[173]. Assets and Liabilities - The company's non-current assets totaled RMB 5,619,389 thousand as of June 30, 2023, slightly down from RMB 5,668,912 thousand at the end of 2022[128]. - Current assets decreased to RMB 3,438,667 thousand from RMB 3,754,494 thousand at the end of 2022, indicating a decline in liquidity[128]. - The company's total assets amounted to RMB 9,058,056 thousand as of June 30, 2023, down from RMB 9,423,406 thousand at the end of 2022[128]. - The group’s total assets as of June 30, 2023, were RMB 7,248,464 thousand, compared to RMB 7,464,355 thousand as of December 31, 2022[191]. - The company’s current liabilities amounted to RMB 1,511,154 thousand as of June 30, 2023[173]. - The total borrowings increased from RMB 3,456.8 million as of December 31, 2022, to RMB 3,538.2 million as of June 30, 2023, an increase of RMB 81.4 million[37]. - Short-term borrowings increased to RMB 2,954,056 thousand from RMB 2,611,283 thousand at the end of 2022, indicating a rise in financial leverage[128]. - The group reported a total liability of RMB 2,390,711 thousand as of June 30, 2023, compared to RMB 2,638,024 thousand at the end of 2022[191]. Investment and Development - The company plans to continue investing in research and development for existing businesses, modular integrated products, and digital EPC[12]. - The company plans to accelerate the progress of existing PC component manufacturing contracts and improve the collection of sales receivables[36]. - The company has signed contracts for capital commitments totaling RMB 178.14 million as of June 30, 2023, down from RMB 427.203 million in the previous year[62]. - The company plans to establish a wholly-owned regional production center in key strategic areas, with an allocation of HKD 410.97 million, of which HKD 13.46 million has been used[115]. - Research and development for smart equipment business has been allocated 5.09% of the net proceeds, totaling HKD 56.56 million, with no funds utilized yet[115]. Shareholder and Corporate Actions - The board approved the grant of a total of 6,350,382 H-shares to 150 incentive recipients, including four executive directors and other senior management members, on July 6, 2023[90]. - The company decided not to declare any interim dividend for the six months ended June 30, 2023, as of August 31, 2023[108]. - The company has not engaged in any purchase, sale, or redemption of its H shares during the six-month period ending June 30, 2023[113]. - The company’s total issued shares include 18,600,000 shares (3.81%) held by Daxin Investment and 25,404,000 shares (5.21%) held by Yuan Zhifu Hai[155]. Market and Operational Insights - The gross profit from the PC component manufacturing business increased by 2.4% from RMB 174.8 million for the six months ended June 30, 2022, to RMB 178.9 million for the six months ended June 30, 2023, with a gross margin rising from 19.6% to 21.9%[107]. - The gross profit from the PC manufacturing business dropped 97.4% to RMB 0.2 million for the six months ended June 30, 2023, with a gross margin of 30.7%[130]. - The modular integrated products manufacturing business reported a gross loss of RMB 0.04 million, with a gross margin of -0.1% for the same period, primarily due to decreased revenue and high fixed cost allocation[130]. - The digital EPC business achieved a gross profit of RMB 32.5 million with a gross margin of 35.4% for the six months ended June 30, 2023[130]. - Revenue from PC component sales for the six months ended June 30, 2023, was RMB 817,063 thousand, a decrease of 8.6% from RMB 893,508 thousand in the same period of 2022[183]. - Revenue from PC production equipment sales significantly decreased to RMB 648 thousand from RMB 28,702 thousand, representing a decline of 97.8%[183].

Financial Performance - Revenue for the six months ended June 30, 2023, decreased by 2.1% to RMB 939.2 million from RMB 959.6 million for the same period in 2022[83]. - The gross profit for the six months ended June 30, 2023, was RMB 211.6 million, compared to RMB 182.9 million for the same period in 2022, reflecting an increase of 15.7%[80]. - Operating loss for the six months ended June 30, 2023, improved to RMB 38.2 million from RMB 162.9 million for the same period in 2022[80]. - The company reported a net loss attributable to shareholders of RMB 102.8 million for the six months ended June 30, 2023, compared to a loss of RMB 327.7 million for the same period in 2022[80]. - The company reported a pre-tax loss of RMB (113,712) thousand for the first half of 2023, an improvement from a loss of RMB (340,313) thousand in the same period of 2022[165]. - The company reported a net loss of RMB 104,994 thousand for the six months ended June 30, 2023[146]. Cash Flow and Liquidity - Net cash generated from operating activities was RMB 315,322 thousand, an increase of 77.1% compared to RMB 178,012 thousand in the prior year[138]. - The net cash used in investing activities was RMB 104,593 thousand, a decrease from RMB 329,178 thousand in the same period of 2022[146]. - The company had unused bank financing of RMB 1,773,412 thousand as of June 30, 2023, indicating sufficient liquidity for future operational needs[147]. - Cash and cash equivalents decreased to RMB 208,361 thousand as of June 30, 2023, down from RMB 347,249 thousand at the beginning of the year[146]. - The company implemented strict monitoring of investment activity expenditures to manage cash flow effectively[147]. Capital Expenditures and Commitments - Capital expenditures decreased from RMB 392.0 million for the six months ended June 30, 2022, to RMB 154.1 million for the six months ended June 30, 2023, representing a decline of approximately 60.7%[2]. - The company had signed contracts for capital commitments totaling RMB 178.1 million as of June 30, 2023, down from RMB 427.2 million as of June 30, 2022[16]. Debt and Liabilities - The company's current ratio decreased from 0.9 as of June 30, 2022, to 0.7 as of June 30, 2023[20]. - The debt-to-equity ratio increased to 108.2% as of June 30, 2023, compared to 82.5% as of June 30, 2022[20]. - Total liabilities increased to RMB 2,390,711 thousand as of June 30, 2023, compared to RMB 2,638,024 thousand at the end of 2022[161]. - The company’s total liabilities as of June 30, 2023, were RMB 2,418,438 thousand, compared to RMB 2,421,818 thousand at the end of 2022, reflecting a marginal decrease of about 0.1%[183]. Shareholder Information - Major shareholder Yuan Da Suzuki holds 91,776,660 shares, representing approximately 18.82% of the total issued shares of the company[105]. - The total number of shares held by major shareholders indicates a strong control over the company's equity structure, with significant percentages held by a few entities[105]. - The company has disclosed that there are no other individuals with significant shareholdings as of June 30, 2023[117]. Operational Efficiency - The total payroll expenses decreased by 17.1% from RMB 205.1 million for the six months ended June 30, 2022, to RMB 170.0 million for the six months ended June 30, 2023[7]. - The company has achieved a direct cost reduction of 5.45% compared to the previous year through enhanced production quality and efficiency in its projects[74]. - The company recorded a significant decrease in impairment losses on trade and other receivables, with a loss of RMB 3,205 thousand in 2023 compared to RMB 63,292 thousand in 2022, indicating a reduction of approximately 94.9%[60]. Strategic Initiatives - The company aims to achieve zero digital EPC project breakthroughs across all direct-operated companies in the second half of the year, focusing on key areas such as "Two Parks Construction" and "Digital Housing"[68]. - The company plans to apply for 50 patent submissions and aims to solidify its leading capabilities in the prefabricated construction sector[73]. - The company plans to continue focusing on market expansion and new product development to drive future growth[135]. Market Presence and Product Development - The company launched new villa products themed around traditional Chinese culture, significantly reducing product weight and transportation costs by over 70%[70]. - The company has signed memorandums of understanding and strategic agreements with multiple countries, including the USA and New Zealand, to expand its overseas market presence[71]. - The revenue from digital EPC services, a new business segment, was RMB 91.7 million for the six months ended June 30, 2023[86]. Asset Management - The fair value of investment properties decreased to RMB 197,107 thousand as of June 30, 2023, down from RMB 224,536 thousand at the end of 2022, reflecting a decline of about 12.2%[180]. - The carrying value of certain land use rights was RMB 119,722 thousand as of June 30, 2023, down from RMB 121,195 thousand at the end of 2022, with some rights pledged as collateral for bank loans[194].

Financial Performance - Revenue from PC component manufacturing decreased by 24.9% to RMB 2,023.8 million for the year ended December 31, 2022, compared to RMB 2,694.5 million for the year ended December 31, 2021[13]. - Revenue for the year ended December 31, 2022, was RMB 2,232.3 million, a decrease from RMB 3,058.6 million in 2021, representing a decline of 27%[25]. - Revenue from the PC production equipment manufacturing dropped 77.7% from RMB 282.1 million in 2021 to RMB 62.9 million in 2022, accounting for only 2.8% of total revenue[26]. - Revenue decreased by 27.0% from RMB 3,058.6 million in the year ended December 31, 2021, to RMB 2,232.3 million in the year ended December 31, 2022[50]. - The company recorded a net loss of RMB 809.1 million for the year ended December 31, 2022, compared to a profit of RMB 31.5 million for the year ended December 31, 2021[73]. - The company recorded a fair value change loss of RMB 365.3 million for the year ended December 31, 2022, compared to a loss of RMB 2.0 million for the year ended December 31, 2021[67]. - The share of losses from associates increased by 63.3% from RMB 26.5 million for the year ended December 31, 2021, to RMB 43.2 million for the year ended December 31, 2022[67]. - The company reported a net cash outflow from operating activities of RMB 423.1 million for the year ended December 31, 2022, down from RMB 807.3 million for the year ended December 31, 2021[75]. - The total cash and cash equivalents decreased from RMB 540.7 million as of December 31, 2021, to RMB 359.0 million as of December 31, 2022[74]. - The asset-liability ratio increased to 64.2% as of December 31, 2022, up from 57.0% in 2021[131]. Gross Profit and Margins - Gross profit from PC component manufacturing fell by 50.7% to RMB 362.9 million, with a gross margin decline from 27.3% to 17.9%[13]. - Gross profit declined by 56.3% from RMB 855.2 million to RMB 373.3 million, with a gross margin decrease from 28.0% to 16.7%[56]. - Gross profit fell to RMB 373.3 million in 2022, down from RMB 855.2 million in 2021[131]. Operational Efficiency and Strategy - The company aims to enhance operational efficiency through standardized components and a diversified product application strategy[21]. - The management has implemented a comprehensive budgeting approach to align annual operational goals with performance assessments[16]. - A new incentive mechanism has been introduced to enhance cash conversion cycles and operational performance[17]. - The company aims to stabilize its core PC business and maintain its leading market share in 2023 through strategic collaborations and management model restructuring[41]. - The company is focusing on digital EPC business development as part of its strategic initiatives[14]. - The company plans to establish an EPC-CPS intelligent construction information management platform in 2023 to enhance project lifecycle management through digitalization[24]. - The company aims to enhance brand value through a "three-step" strategy from 2023 to 2025, focusing on precision actions to establish its brand as synonymous with prefabricated buildings[43]. - The company is committed to advancing its technology in the prefabricated building sector and developing an intelligent construction management platform[46]. - The company aims to implement comprehensive budget management in 2023 to address long-term issues in the real estate industry, emphasizing the profitability of its PC business as a cash cow[170]. Research and Development - Research and development expenses for the year were RMB 126.5 million, contributing to an operating loss of RMB 317.3 million[25]. - Research and development expenses totaled RMB 109.15 million, down from RMB 138.28 million in the previous year[66]. - The company plans to apply for no less than 120 patents in 2023, focusing on enhancing core competitiveness in product quality and cost efficiency[198]. - The establishment of a technology committee to define and manage the group's technology development strategy and standards[198]. - The company is advancing the development of a digital management system for the EPC-CPS full-process[198]. Market and Product Development - The company plans to expand its rural self-built housing market, addressing core issues such as quality and ecological damage[19]. - The "Yuan Da Mo Fang" (BOX modular building) product has been delivered to 22 cities, covering applications in culture, public services, office, and healthcare[20]. - The company launched new products such as the "Magic Cube Station" and "Wild Luxury Homestay," which are mobile and quickly deployable camping solutions[42]. - The company is focusing on the campus and industrial park dormitory market to drive the second growth curve of its main business[173]. - The company is integrating its original PC, EPC, and product business units into a larger market to enhance efficiency and service quality[171]. - The company is leveraging government policies and financial tools to provide high-value-added services to clients[173]. - The company is focusing on green construction and intelligent manufacturing as part of its strategic initiatives[197]. Employee and Operational Metrics - Total employee count as of December 31, 2022, was 2,866, with total salary expenses decreasing by 6.6% to RMB 417.7 million from RMB 447.1 million in the previous year[107]. - The utilization rate of production lines dropped to 41.6% in 2022 from 54.3% in 2021, primarily due to industry adjustments and the impact of COVID-19[111]. - The company experienced significant losses for the first time since its establishment, attributed to macroeconomic pressures and uncertainties in the real estate market[113]. Contracts and Revenue Streams - The company signed contracts worth RMB 2,140.8 million in the PC component manufacturing business in 2022, with uncompleted contracts totaling RMB 4,503.3 million[36]. - New contracts for modular integrated product manufacturing increased by 48.2% to RMB 228.5 million from RMB 154.2 million year-over-year[109]. - New contracts signed in the PC component manufacturing business dropped by 56.7% to RMB 2,140.8 million in 2022 from RMB 4,946.8 million in 2021[139]. - The modular integrated product manufacturing business achieved new contracts worth RMB 228.5 million and generated revenue of RMB 129.1 million in 2022[36]. - The modular integrated product business's uncompleted contracts increased by 144.9% to RMB 150.6 million in 2022[139]. Cash Flow and Financing - The total cash used in investing activities for the year ended December 31, 2022, was RMB 463.9 million, mainly attributed to the purchase of properties, plants, and equipment amounting to RMB 369.8 million[99]. - The net cash used in financing activities for the year ended December 31, 2022, was RMB 144.6 million, primarily due to loan repayments of RMB 1,367.0 million[100]. - As of December 31, 2022, the total borrowings increased to RMB 3,456.8 million from RMB 2,890.5 million as of December 31, 2021, reflecting an increase of RMB 566.4 million[102]. - The company has secured unused bank financing of RMB 1,322,004 thousand as of December 31, 2022, to support its operational cash flow needs[101]. - The company expects additional cash inflow from the sale of investment properties, with a sales contract amounting to RMB 30,349 thousand already established[101].

Customer and Supplier Concentration - The top five customers accounted for 11.6% of the total revenue, with the largest customer contributing 2.6%[1] - The top five suppliers represented 15.5% of the total purchase amount, with the largest supplier accounting for 4.0%[2] Financial Performance - The company reported a net loss of RMB 809.1 million for the year ended December 31, 2022, compared to a net profit of RMB 31.5 million for the year ended December 31, 2021[176] - Revenue decreased by 27.0% from RMB 3,058.6 million for the year ended December 31, 2021, to RMB 2,232.3 million for the year ended December 31, 2022[195] - Operating loss shifted from a profit of RMB 157.6 million for the year ended December 31, 2021, to a loss of RMB 317.3 million for the year ended December 31, 2022, representing a decline of 301.3%[196] - The company's net loss attributable to shareholders for the year ended December 31, 2022, was RMB 808.1 million, compared to a profit of RMB 32.4 million in the previous year[196] - The asset-liability ratio increased to 64.2% as of December 31, 2022, compared to 57.0% as of December 31, 2021[200] Revenue and Contracts - The revenue from the PC production equipment manufacturing business decreased by 77.7% from RMB 282.1 million for the year ended December 31, 2021, to RMB 62.9 million for the year ended December 31, 2022[43] - The new contracts signed in the PC components manufacturing business decreased by 56.7% to RMB 2,140.8 million in 2022 from RMB 4,946.8 million in 2021[177] - The unfinished contracts in the PC components manufacturing business decreased by 30.2% to RMB 4,503.3 million as of December 31, 2022, compared to RMB 6,448.2 million in 2021[177] - Revenue from modular integrated product manufacturing increased by 57.4% from RMB 82.0 million for the year ended December 31, 2021, to RMB 129.1 million for the year ended December 31, 2022[175] - The new contracts signed in the modular integrated products manufacturing business increased by 154.2% to RMB 228.5 million in 2022[177] - The unfinished contracts in the modular integrated products manufacturing business grew by 144.9% to RMB 150.6 million as of December 31, 2022, from RMB 61.5 million in 2021[178] Corporate Governance - The company has established an audit committee in compliance with Hong Kong Listing Rules, ensuring proper review of accounting principles and practices[98] - The company has maintained at least 25% of its total issued shares held by the public, meeting the minimum public float requirement under Hong Kong Listing Rules[99] - The company has not changed auditors in the past three years, ensuring continuity in financial oversight[100] - The group is committed to maintaining high levels of corporate governance to protect shareholder interests and enhance corporate value[103] - The company has implemented internal policies to ensure independent viewpoints and opinions are obtained for board decisions[105] - The company has adopted the Corporate Governance Code and has been in compliance with all applicable provisions during the reporting period[136] - The board consists of 11 directors, including 6 executive directors, 1 non-executive director, and 4 independent non-executive directors[123] - The company emphasizes a healthy corporate culture as the core of good corporate governance, promoting values of legality, morality, and responsibility[121] Management and Strategy - The company appointed Hu Shengli as the new General Manager effective December 12, 2022, following the resignation of Tang Fen[13] - The company has established a main business decision committee to ensure stable operations and dynamic balance[44] - The company is focused on expanding both domestic and overseas markets, with 7.04% of the proceeds allocated for this purpose[30] - The company aims to achieve a green building completion rate of 100% for new urban constructions by 2025, with modular buildings accounting for 30%[42] - The core goal for 2023 is to maintain and solidify the company's leading position in the PC market[62] - The company plans to establish strategic alliances with quality state-owned enterprises and suppliers to enhance order quality and supply chain resources[62] - A technology committee will be formed to define and manage the group's technology development strategy, with a goal to apply for at least 120 patents in 2023[63] Research and Development - The company aims to develop and expand its smart equipment business, allocating 5.09% of the proceeds for research and development in this area[30] - The company is also investing 4.41% of the proceeds to develop and create an intelligent assembly building industry service platform[30] - The company is focused on continuous innovation to address customer technical pain points and provide innovative product and technical solutions[63] - The company is actively involved in research and development of new products and technologies to meet evolving market demands[190] Employee and Stakeholder Relations - The company encourages employees to actively explore new projects and models beneficial for the enterprise's sustainability[42] - The company is focused on maintaining strong relationships with its stakeholders and ensuring compliance with relevant regulations[76] - The company has implemented a long-term incentive plan to attract and retain key personnel, approved on September 28 and October 22, 2021[50] - The total number of H-share stock options granted under the incentive plan will not exceed 7 million shares[67] Legal and Compliance - As of December 31, 2022, the group had no significant legal proceedings or arbitrations pending that could threaten its operations[96] - The company has arranged appropriate insurance for potential legal claims against directors, supervisors, and senior management due to their positions[111] - The company has arranged appropriate liability insurance for directors against legal actions[138] Charitable Contributions - The group reported a total charitable donation of RMB 0.8 million for the reporting period, an increase from RMB 0.4 million in 2021[95]