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。 （股票代碼：2355） 董事會會議召開日期 寶業集團股份有限公司（「本公司」）之董事會（「董事會」）謹此宣佈，本公司將 於 2025 年 8 月 29 日（星期五）舉行董事會會議，藉以批准及公佈（其中包括） 本公司及其附屬公司截至 2025 年 6 月 30 日止六個月之中期業績等事項。 寶業集團股份有限公司 BAOYE GROUP COMPANY LIMITED * （於中華人民共和國註冊成立之股份有限公司） *僅供識別 承董事會命 寶業集團股份有限公司 主席 龐寶根 中華人民共和國 浙江 2025 年 8 月 15 日 於本公告刊發日期，董事會包括董事長兼非執行董事龐寶根先生，六名執行董事高林先生、 高君先生、金吉祥先生、徐鋼先生、王榮標先生及夏鋒先生，以及四名獨立非執行董事李旺 榮先生、梁靜女士、肖建木先生及馮征先生。 ...

Core Insights - The Shanghai real estate market saw a total of 4,711 new homes sold in June 2025, representing a month-on-month decrease of 0.98% compared to May [1] - In June, the Fengxian district recorded 100 new home registrations, with a total transaction area of 11,370 square meters and a transaction value of approximately 476.77 million yuan [1] Sales Performance - The top-selling properties in June included: - Xiangyu Jiangwan Yufu in Jinhui with 19 registrations, ranking first - China Railway Construction Xiyu in Xidu with 16 registrations, ranking second [5] - The detailed sales data for June includes: - Xiangyu Jiangwan Yufu: 19 units, 1,654 square meters, 59.78 million yuan - China Railway Construction Xiyu: 16 units, 1,648 square meters, 67.48 million yuan - Zhongjian Yujingyuan: 12 units, 1,459 square meters, 78.00 million yuan - Other notable properties include Shangjiangnan Jinghuimingting, Zhongjian Haiyuefu, and others with varying sales figures [6][7]

FF301 | 增加 / 減少 (-) | | | 0 | | RMB | | | 0 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 本月底結存 | | | 169,886,000 | RMB | RMB | 1 | | 169,886,000 | | 2. 股份分類 | 普通股 | 股份類別 | 其他類別 (請註明) | | 於香港聯交所上市 (註1) | | 否 | | | 證券代號 (如上市) | N/A | 說明 | 非上市股份 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 350,742,053 | RMB | | 1 RMB | | 350,742,053 | 致：香港交易及結算所有限公司 公司名稱: 寶業集團股份有限公司 (於中華人民共和國註冊成立之股份有限公司) 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 1. 股份分類 普通股 股份類別 H 於香港聯交所上市 (註1) 是 證券代號 (如上市) 02355 說明 法定/ ...

Core Insights - The smart building market in China is projected to reach a scale of 675.397 billion yuan in 2024, with segments including smart residential buildings at 232.752 billion yuan, smart public buildings at 156.376 billion yuan, and smart industrial buildings at 286.269 billion yuan [1][10] - The demand for smart buildings is driven by the application of smart technologies in new constructions and the intelligent renovation of existing buildings [10][12] - The global smart building market is expected to grow to 335.637 billion USD in 2024, with a year-on-year increase of 1.54% [8] Smart Building Industry Classification and Characteristics - Smart buildings integrate building equipment, office automation, and communication network systems to provide a safe, efficient, comfortable, and convenient environment [2][4] - The technological foundation of smart buildings includes building automation, communication automation, office automation, fire safety automation, and security automation [2] Current Development Status of the Smart Building Industry - The smart building sector has expanded from office buildings to residential areas, utilizing modern control technologies and integrating various systems [4][10] - The market is characterized by increasing competition, with both international brands and domestic companies actively participating [4][10] Smart Building Industry Development Trends - The future of smart buildings is focused on sustainable development technologies, with innovations in eco-friendly materials, advanced energy management, and the integration of AI and IoT [25] - The industry is expected to continue growing, driven by technological advancements that enhance efficiency and improve living quality [25] Smart Building Industry Competitive Landscape - Major international players like Johnson Controls, Honeywell, and Schneider dominate the high-end market, while domestic companies such as Huawei, Haier Smart Home, and Dashi Intelligent focus on mid to low-end markets [18][20] - The competition encompasses various dimensions, including technology, pricing, branding, and ecosystem development [18] Key Companies in the Smart Building Sector - Haier Smart Home reported a global revenue of 285.981 billion yuan in 2024, with a year-on-year growth of 4.29% [21] - Dashi Intelligent achieved a total revenue of 3.171 billion yuan in 2024, with significant contributions from its smart space solutions [23]

Financial Performance - The company reported a revenue of approximately RMB 22,338,716,000 for the year ending December 31, 2024, a decrease of about 15.6% compared to the previous year[28]. - The profit attributable to the company's owners was approximately RMB 409,907,000, representing a significant decline of about 53.9% year-over-year[28]. - Earnings per share (EPS) decreased to RMB 0.79, down approximately 53.3% from the previous year[28]. - Operating profit was approximately RMB 960.70 million, down 35.0% from RMB 1.48 billion in the previous year[44]. - Excluding the one-time compensation, operating profit and net profit attributable to owners decreased by 15.9% and 35.6%, respectively, primarily due to reduced revenue from property development and lower gross margins on recognized projects[44]. - The company reported a net profit attributable to owners of approximately RMB 409,907,000, a significant decrease of about 53.9% compared to the previous year[71]. - The company’s distributable reserves as of December 31, 2024, amount to RMB 1,300,880,000, an increase from RMB 1,151,372,000 in 2023, representing a growth of approximately 12.9%[167]. Assets and Liabilities - Total assets as of December 31, 2024, were RMB 45,202,576,000, while total liabilities were RMB 31,655,053,000[17]. - The debt ratio improved to approximately 2.3 as of December 31, 2024, down from 2.7 in 2023[70]. Cash Flow and Financial Health - The net cash ratio decreased to 49.1% in 2024 from 58.7% in 2023[18]. - Operating cash flow showed a net outflow of RMB 24,485,000 compared to a net inflow of RMB 1,431,117,000 in the previous year[18]. - Investment cash outflow increased to RMB (533,165,000) from RMB (221,879,000), reflecting higher deposits in fixed-term accounts[72]. - Financing cash outflow was RMB (870,425,000), a significant increase from last year's inflow of RMB 465,917,000, primarily due to increased loan repayments[72]. Revenue Segmentation - The construction segment generated revenue of RMB 14,135.01 million, down 12% from RMB 16,014.86 million in the previous year, with operating profit of RMB 524.09 million, a decline of 15%[49]. - The real estate development segment reported revenue of RMB 5,269.45 million, a significant drop of 28% from RMB 7,285.89 million, with operating profit falling 49% to RMB 435.79 million[51]. - The company reported a revenue of approximately RMB 2,542,462,000 from its construction materials business, a decrease of about 10% compared to the previous year, with an operating loss of approximately RMB 27,321,000, a significant decline of about 479%[61]. Dividend and Shareholder Returns - The company proposed a final dividend of RMB 0.12 per share for the year ending December 31, 2024[28]. - The company declared a dividend of RMB 0.12 per share for 2024, amounting to a total of RMB 62,475,366, which represents 15.2% of the annual profit of RMB 409,907,000[194]. Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange rules and has complied with all provisions except for the separation of the roles of Chairman and CEO, which is currently not adhered to[85]. - The board of directors consists of 11 members, including 1 non-executive director, 6 executive directors, and 4 independent non-executive directors, ensuring a balanced composition for effective decision-making[92]. - The company has established an ESG committee to enhance systematic management of ESG initiatives and assess related risks and opportunities[92]. - The board has established a risk management and internal control system to assess and manage risks associated with achieving strategic objectives[104]. Market and Strategic Focus - The company is focusing on land reserve enhancement plans in first-tier cities to ensure sustainable and stable development[28]. - The company aims to leverage sufficient cash flow as a foundation for business expansion amid ongoing industry adjustments[28]. - The company emphasized the importance of high-quality, low-energy housing in response to changing market demands and urbanization trends[30]. - The company aims to enhance housing quality by integrating technology and craftsmanship in its projects, focusing on the development of "good houses"[65]. Community and Social Responsibility - The group made charitable donations totaling RMB 11,594,000 in the current year, compared to RMB 5,281,000 in 2023, reflecting a significant increase[177]. - The company’s total charitable donations increased by 119% year-over-year from 2023 to 2024[177]. Leadership and Management - The company’s founder, Mr. Pang Baogen, has extensive experience in the construction industry and has led various national-level projects[150]. - The company has a strong leadership team with extensive experience in engineering and management, including several high-ranking engineers and industry leaders[151][152][153][154][155][156]. - The leadership team has a proven track record in financial management and corporate governance, with members holding significant positions in other publicly listed companies[155][156]. Shareholder Engagement - The company emphasizes timely and accurate information disclosure to build market confidence, maintaining effective communication with investors through various channels[142]. - The company has a dedicated investor relations department to enhance communication with shareholders, investors, analysts, and financial media[142]. - The company has adopted multiple mechanisms to encourage shareholder participation in meetings, including allowing proxy voting for those unable to attend[142].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of RMB 22,338,716, a decrease of 15.5% from RMB 26,479,305 in 2023[4] - The gross profit for the year was RMB 1,741,682, down 20.9% from RMB 2,203,933 in the previous year[4] - Operating profit decreased to RMB 960,704, representing a decline of 35.0% compared to RMB 1,478,759 in 2023[4] - The net profit for the year was RMB 894,380, an increase of 78.2% from RMB 501,243 in 2023[4] - Basic earnings per share rose to RMB 1.69, compared to RMB 0.79 in the previous year[4] - The company reported a total comprehensive income of RMB 498,322 for the year, down from RMB 1,185,265 in 2023[6] - Total revenue for the year ended December 31, 2024, was RMB 25,593,450,000, a decrease from RMB 29,527,945,000 in 2023, representing a decline of approximately 13.3%[17] - Operating profit for the group was RMB 960,704,000, down from RMB 1,478,759,000 in the previous year, indicating a decrease of about 35%[17] - Profit attributable to owners was approximately RMB 409,907,000, a significant decline of about 53.9% from RMB 889,256,000 in 2023, with earnings per share of RMB 0.79, down about 53.3% from RMB 1.69[55] Assets and Liabilities - Total assets decreased to RMB 45,202,576 from RMB 48,514,157, reflecting a decline of 6.8%[9] - The total assets of the group as of December 31, 2024, amounted to RMB 45,202,576,000, compared to RMB 48,514,157,000 in 2023, reflecting a reduction of approximately 4.8%[10] - The total liabilities of the group decreased to RMB 31,655,053,000 in 2024 from RMB 35,510,228,000 in 2023, a decline of approximately 10.8%[10] - The group maintained a net cash position with a net cash ratio of 49.1% as of December 31, 2024, down from 58.7% in 2023[83] - The total debt ratio was approximately 2.3 as of December 31, 2024, compared to 2.7 in 2023[82] Revenue Breakdown - The construction segment generated revenue of RMB 15,536,750,000, while the property development segment contributed RMB 5,269,450,000, and the construction materials segment accounted for RMB 4,005,388,000[17] - Revenue from construction engineering services for 2024 was RMB 14,135,006, a decrease of 11.7% from RMB 16,014,859 in 2023[19] - Total revenue from property sales in 2024 was RMB 5,269,450, down 27.7% from RMB 7,285,893 in 2023[19] - The company reported a revenue of approximately RMB 2,542,462,000 for its construction materials business, a decrease of about 10% year-on-year, with an operating loss of RMB 27,321,000[74] Cash Flow and Expenses - Cash outflow from operating activities was approximately RMB 24.5 million in 2024, a decrease of RMB 1.46 billion compared to a net cash inflow of RMB 1.43 billion in 2023[87] - The group’s financial costs net amount was approximately RMB 14.8 million in 2024, compared to a net financial income of RMB 4.6 million in 2023[89] - The group’s administrative expenses decreased to approximately RMB 755.6 million in 2024, down from RMB 816.9 million in 2023, a reduction of about RMB 61.2 million[88] - The group’s sales and promotion costs were approximately RMB 160.1 million in 2024, down from RMB 201.3 million in 2023, a decrease of about RMB 41.2 million[86] Investments and Projects - The group is currently developing several projects, including Baoye Four Seasons Garden with a planned construction area of approximately 650,000 square meters[63] - The company acquired the "Baoye Yunxi Li" project with a total transaction price of RMB 511,036,354 and a land area of 262,862 square meters, holding a 60% equity stake[66] - The "Baoye Puyuan" project in Wuhan was obtained for RMB 1,199,900,000, covering approximately 45,582 square meters, with 7 out of 9 residential buildings already on sale[66] - The "Baoye Qinyuan" project in Yichang was acquired for RMB 455,100,000, with a total land area of 73,405 square meters and a planned building area of 196,596 square meters, with the first phase expected to start sales in November 2023[67] Market Conditions and Strategy - The domestic economic growth slowed to 5.0%, influenced by weak consumer demand and a challenging real estate market[56] - The company emphasizes long-term value creation amidst a challenging market environment, focusing on sustainable growth rather than short-term gains[55] - The construction industry is expected to recover fully only when the financial chain improves and the transition between old and new driving forces is achieved[77] Governance and Compliance - The company will publish its 2024 Environmental, Social, and Governance report on the Hong Kong Stock Exchange and its website in April 2025[108] - The consolidated financial statements for the year ending December 31, 2024, have been audited by PwC, confirming consistency with the reported figures[111] - The annual report for the year ending December 31, 2024, will be sent to shareholders and published on the Hong Kong Stock Exchange and the company's website[112] Employee and Management Information - The total number of employees as of December 31, 2024, was 6,172, a decrease from 6,413 in 2023, with employee welfare expenses reaching RMB 4,543,856,000[102] - The gender ratio of employees as of December 31, 2024, was approximately 68.97% male and 31.03% female, with ongoing efforts to improve female representation[103] - The company has appointed Mr. Pang Baogen as the Chairman and he will continue to contribute to the overall strategic planning of the company[107]

Financial Performance - Revenue for the first half of 2024 was RMB 12,770,676, a decrease of 10.8% compared to RMB 14,324,646 in the same period of 2023[5] - Profit attributable to owners of the company was RMB 373,845, down 47.9% from RMB 704,675 in the first half of 2023[5] - Earnings per share decreased to RMB 0.72 from RMB 1.34 in the same period last year[5] - Operating profit for the same period was approximately RMB 624.43 million, a significant decline of about 44% year-on-year[12] - The company reported a net loss from financial assets and contract assets impairment of RMB 84,511 thousand, an improvement from RMB 96,581 thousand in the previous year[79] - Total comprehensive income for the period was RMB 320,313 thousand, significantly lower than RMB 927,531 thousand in the same period last year[80] - The total income tax expense for the six months ended June 30, 2024, was RMB 248,146,000, a decrease of 48% from RMB 473,086,000 in the same period of 2023[22] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 46,649,084, a decrease from RMB 47,534,995 as of June 30, 2023[5] - Total liabilities decreased to RMB 33,315,550 from RMB 34,786,753 in the previous year[5] - The company's equity totaled RMB 13,333,534 thousand as of June 30, 2024, compared to RMB 13,003,929 thousand at the end of 2023[78] - The company reported cash and cash equivalents of RMB 8,899,761 thousand, down from RMB 9,432,353 thousand[78] - The company’s total liabilities as of June 30, 2024, were RMB 6,823,213 thousand, reflecting a slight decrease from RMB 6,828,635 thousand as of December 31, 2023[116] Cash Flow - Operating cash flow showed a net outflow of RMB 144,049 compared to an inflow of RMB 164,744 in the first half of 2023[6] - Cash outflow from investing activities totaled RMB (275,767) thousand, compared to RMB (24,922) thousand in the prior year, highlighting increased investment expenditures[83] - Financing activities resulted in a net cash outflow of RMB (114,092) thousand, contrasting with a net inflow of RMB 315,383 thousand in the same period last year, indicating a shift in financing strategy[83] Business Segments - The construction segment achieved revenue of approximately RMB 8,596.30 million, an increase of about 4% year-on-year, while operating profit decreased by approximately 33%[15] - The real estate development segment reported revenue of approximately RMB 3,002.24 million, a significant decline of about 38% year-on-year, with operating profit down approximately 57%[17] - The construction materials business achieved revenue of approximately RMB 1,001,350,000 for the six months ended June 30, 2024, a decrease of about 10% compared to the same period last year[26] Market Environment - The company anticipates facing a more challenging market environment in the future due to increased competition and macroeconomic adjustments[16] - The real estate sector is facing significant downward pressure, with ongoing government support policies aimed at stabilizing the market and promoting inventory reduction[29] Corporate Governance - The board of directors consists of 11 members, including 6 executive directors and 4 independent non-executive directors, ensuring a diverse composition for effective governance[48] - The company has maintained compliance with corporate governance codes and regulations since its listing, aiming to enhance corporate value and ensure sustainable development[50] - The audit committee, composed of 3 independent non-executive directors, held 2 meetings to discuss accounting policies and internal audit work[52] Shareholder Information - The board of directors resolved not to declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[44] - Major shareholders include Wu Xueqin and Zhu Yicai, each holding 29,304,000 H shares, representing approximately 17.24% of the issued H shares and 5.63% of the total registered capital[60] Employee Information - Employee benefits expenses for the six months ended June 30, 2024, amounted to approximately RMB 2,363,570,000, an increase from RMB 2,251,063,000 in the same period of 2023[67] - The company employed 6,236 employees as of June 30, 2024, a decrease from 6,445 employees a year earlier[67] Risk Management - The company has not made any significant changes to its risk management policies since the end of last year, maintaining a consistent approach to financial risk management[89] - The company anticipates challenges in the construction industry due to high external risks and pressure on domestic economic growth, emphasizing a focus on quality and steady growth[28]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 12,770,676 thousand, a decrease of 10.8% compared to RMB 14,324,646 thousand for the same period in 2023[2] - Gross profit for the same period was RMB 965,277 thousand, down 18.5% from RMB 1,185,552 thousand in 2023[2] - Operating profit decreased significantly to RMB 640,867 thousand, compared to RMB 1,183,295 thousand in the previous year, reflecting a decline of 45.9%[2] - Net profit attributable to the owners of the company was RMB 373,845 thousand, a decrease of 47.9% from RMB 704,675 thousand in 2023[2] - Basic and diluted earnings per share were RMB 0.72, down from RMB 1.34 in the same period last year[2] - Total comprehensive income for the period was RMB 320,313 thousand, a decline of 65.5% compared to RMB 927,531 thousand in 2023[3] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 46,649,084 thousand, down from RMB 48,514,157 thousand at the end of 2023[5] - Total liabilities decreased to RMB 33,315,550 thousand from RMB 35,510,228 thousand at the end of 2023[5] - The group’s total liabilities decreased to RMB 17,631,768,000 as of June 30, 2024, from RMB 17,762,483,000 at December 31, 2023, reflecting a decline of 0.74%[26] Financial Losses - The company reported a significant increase in financial asset losses, with net losses of RMB 624,434 thousand compared to gains of RMB 96,581 thousand in the previous year[2] - The group reported a net loss from financial assets and contract assets impairment of RMB 84,511 for the six months ended June 30, 2024[12] Revenue Segmentation - The construction segment generated revenue of approximately RMB 8,596,299,000, an increase of about 4% year-on-year, while operating profit decreased by about 33% to RMB 324,535,000[31] - The real estate development segment reported revenue of approximately RMB 3,002,236,000, a substantial decrease of about 38%, with operating profit declining by about 57% to RMB 320,526,000[33] - The company reported a revenue of approximately RMB 1,001,350,000 for the building materials business for the six months ending June 30, 2024, a decrease of about 10% compared to the same period last year[41] Cash Flow and Expenses - Cash outflow from operating activities was approximately RMB 144,049,000, an increase in cash outflow of about RMB 308,793,000 compared to the same period last year[49] - Cash outflow from investing activities was approximately RMB 275,767,000, an increase of about RMB 250,845,000 compared to the same period last year[49] - Administrative expenses for the six months ended June 30, 2024, were approximately RMB 340,359,000, a decrease of about 9% from RMB 375,704,000 in the same period last year[50] Employee and Governance - As of June 30, 2024, the group employed 6,236 employees, a decrease from 6,445 employees as of June 30, 2023[62] - Employee welfare expenses reached approximately RMB 2,363,570,000 for the six months ended June 30, 2024, compared to RMB 2,251,063,000 for the same period in 2023, reflecting an increase of about 5%[62] - The group has adhered to all corporate governance codes as per the listing rules, with a noted deviation regarding the separation of roles between the Chairman and the CEO[63] Strategic Focus and Market Conditions - The company anticipates facing a more challenging market environment in the construction sector due to intensified competition and economic adjustments[32] - The company emphasizes the importance of high-quality real estate development, shifting focus from quantity to quality in response to market demands[44] - The company is committed to maintaining healthy and stable growth, focusing on high-quality project execution and actively expanding its business scope[43] Projects and Developments - The company has ongoing development projects with a total area of approximately 1,050,000 square meters for Baoye Four Seasons Garden, located in Zhejiang Province, with a planned construction area of about 650,000 square meters[34] - The company is actively selling remaining units in various projects, including Baoye Four Seasons Garden and Baoye Puyuan, with good sales momentum reported[37][38] Financial Management - The company maintains a stable cash flow and has a good credit rating, recognized as an AAA-rated enterprise by the People's Bank of China, which facilitates financing and allows the company to benefit from favorable bank lending rates[47] - As of June 30, 2024, the company had unused bank credit facilities amounting to approximately RMB 7 billion[47] - The company reported net financial income of approximately RMB 1,062,000 for the six months ended June 30, 2024, a decrease of about RMB 5,676,000 compared to RMB 6,738,000 in the same period last year[51]

Financial Performance - The construction materials business achieved a revenue of approximately RMB 2,839,348,000, representing a year-on-year growth of about 22%[8]. - The operating profit significantly decreased to approximately RMB 7,212,000, down about 95% compared to the previous year[8]. - The company reported a net profit attributable to shareholders of approximately RMB 889,256,000, an increase of about 26.2% year-on-year[17]. - The return on equity for shareholders increased by approximately 14% compared to the previous year[17]. - The group achieved a revenue of approximately RMB 26,479,305,000 for the year ending December 31, 2023, representing an increase of about 8.4% compared to RMB 24,425,350,000 in 2022[32]. - Operating profit reached approximately RMB 1,478,759,000, a significant increase of about 37.0% from RMB 1,079,165,000 in the previous year[32]. - Profit attributable to owners of the company was approximately RMB 889,256,000, up by about 26.2% from RMB 704,777,000 in 2022, with earnings per share increasing to RMB 1.69 from RMB 1.30, a rise of about 30.0%[32]. - The company's revenue for 2023 was RMB 24,799 million, a decrease of 1.9% compared to RMB 25,275 million in 2022[48]. - Earnings per share for 2023 was RMB 1.52, reflecting an increase of 7.8% from RMB 1.41 in 2022[49]. Cash Flow and Financial Position - The net cash ratio stood at 58.7%, indicating a strong cash position[17]. - The financing activities generated a net cash inflow of approximately RMB 465,917,000, a significant increase compared to a net cash outflow of RMB 1,802,707,000 in the previous year[18]. - The company reported a net cash inflow from operating activities of RMB 1,431,117,000 for the year ending December 31, 2023, compared to RMB 1,303,545,000 in 2022, reflecting a growth in operational efficiency[164]. - The total cash and cash equivalents increased by RMB 1,675,155,000 in 2023, a significant recovery from a decrease of RMB 88,581,000 in the previous year[164]. - The net cash position increased to RMB 7,391,848,000, up from RMB 6,422,599,000 in the previous year, representing a growth of about 15.1%[189]. - Operating cash inflow reached RMB 1,431,117,000, a significant increase from RMB 1,303,545,000 in 2022, representing a growth of approximately 9.8%[119]. Construction and Project Development - The company is currently in the construction phase for several projects, including the Baoye Peacock City in Wuhan, which has seen over half of its sales completed[5]. - New orders for the construction business totaled RMB 16.64 billion in 2023, a decline of about 20.4% from RMB 20.91 billion in 2022, reflecting a cautious approach to project risk assessment[40]. - The construction business generated revenue of approximately RMB 16,014,859,000, a decrease of about 7% year-on-year, while operating profit surged by approximately 92% due to a one-time compensation of RMB 337,020,000 from government land acquisition[40]. - The company has ongoing projects with a total development area of 1,500,000 square meters, with a 100% ownership in several key projects[153]. - The company plans to expand its market presence with new projects in cities like Hangzhou and Wuhan, focusing on residential and commercial buildings[153]. Risk Management and Governance - The group established a risk management and internal control system led by the board, including an audit committee and internal audit functions, to ensure effective oversight[30]. - The company has successfully completed the independent evaluation of its risk management and internal control systems, confirming their effectiveness as of December 31, 2023[53]. - The company emphasizes that "healthy growth is more important than performance," focusing on financial safety during market contractions[82]. - The board consists of 11 members, including 1 non-executive director and 6 executive directors, ensuring a balanced composition for effective leadership and independent decision-making[170]. - The company has adhered to the corporate governance code since its listing, with a commitment to high efficiency, transparency, and sustainable development[169]. Market Strategy and Future Outlook - The group is focusing on expanding government investment projects amid challenges in the real estate market and overall economic growth[40]. - Future strategies include optimizing policies to enhance consumer confidence in the real estate market, particularly in first and second-tier cities[82]. - The company is exploring new business opportunities in emerging sectors such as healthcare, elderly care, urban renewal, and transportation[184]. - The company plans to continue its focus on quality and technology in real estate, shifting from rapid growth to a more sustainable development model[161]. - The company is committed to enhancing its ESG initiatives, aiming for sustainable development in its construction practices[151]. Awards and Recognition - The group received 60 awards for its projects during the year, maintaining a leading position in the construction industry in Zhejiang Province[41]. - The company has received multiple awards for its construction projects, including the Luban Award for the Shaoxing Public Security Bureau project[42].

Revenue and Profitability - For the year ending December 31, 2023, the construction business achieved a revenue of approximately RMB 16,014,859,000, a decrease of about 7% compared to the previous year[14]. - The real estate development segment generated revenue of RMB 7,285,893,000, representing a substantial increase of 63% compared to RMB 4,469,934,000 in 2022[12]. - The total revenue for the group reached RMB 26,479,305,000, an increase of 8% from RMB 24,425,350,000 in the previous year[12]. - The group reported a total of RMB 1,478,759,000 in operating profit for the year, a 37% increase from RMB 1,079,165,000 in 2022[12]. - The gross profit for the year was RMB 2,203,933,000, up from RMB 1,799,828,000 in the previous year, indicating a growth of about 22.4%[49]. - The net profit for the year reached RMB 894,380,000, compared to RMB 721,405,000 in 2022, representing an increase of approximately 24%[50]. - The company’s operating profit was RMB 1,478,759,000, significantly higher than the previous year's operating profit of RMB 1,079,165,000[49]. - The company reported a net profit attributable to shareholders of approximately RMB 889,256,000, representing a year-on-year growth of about 26.2%[26]. Financial Position - As of December 31, 2023, accounts payable amounted to RMB 10,761,627,000, an increase from RMB 9,732,569,000 in 2022[6]. - The net cash ratio stood at 58.7% as of December 31, 2023, indicating a strong cash position[26]. - The net cash inflow from operating activities was RMB 1,431,117,000, an increase from RMB 1,303,545,000 in the previous year[27]. - The company’s total liabilities decreased to RMB 7,128,853,000 in 2023 from RMB 7,317,784,000 in 2022, a reduction of about 2.6%[122]. - Total assets as of December 31, 2023, amounted to RMB 48,514,157 thousand, a decrease from RMB 48,820,484 thousand in 2022, representing a decline of approximately 0.63%[52]. - Total equity increased to RMB 13,003,929 thousand in December 2023, up from RMB 11,854,595 thousand in December 2022, representing a growth of 9.7%[72]. - The company reported total liabilities of RMB 5,560,800,000 for 2023, compared to RMB 5,332,120,000 in 2022[158]. Operational Management - The group maintains a cautious approach towards new land reserves, focusing on stable operations and innovative management strategies in the evolving real estate market[19]. - The group emphasizes the importance of financial stability and operational management in the current challenging market environment[11]. - The company has a diverse customer base, which mitigates credit risk associated with trade receivables[2]. - The company is focusing on industrialized construction as a key strategy for future development[156]. - The group has established a centralized financial settlement center to manage and allocate funds effectively, aiming to reduce financial costs and risks[188]. Market and Project Development - The company plans to explore new opportunities in emerging sectors such as healthcare, elderly care, urban renewal, and transportation[21]. - The company has ongoing projects with a total development area of approximately 1,500,000 square meters across various locations, indicating a strong pipeline for future revenue[143]. - The company is actively expanding its market presence through new project acquisitions and ongoing sales efforts[155]. - Major projects undertaken in 2023 include the Zhejiang Modern Textile Technology Innovation Center and the Tianjin Beichen District Heating Infrastructure EPC Project[170]. - The company acquired the Fengyue project in Hangzhou for a total price of RMB 334,760,000, with a total construction area of approximately 49,497 square meters, expected to be delivered in the second half of 2024[145]. Expenses and Taxation - Sales and marketing expenses for the year amounted to approximately RMB 201,276,000, an increase of about RMB 58,232,000 compared to RMB 143,044,000 in 2022[29]. - The company’s effective tax rate increased due to higher income tax and land value tax, totaling RMB 681,866,000 for the year[49]. - Current income tax expense for the year was RMB 776,950 thousand, significantly higher than RMB 464,916 thousand in 2022, an increase of 67.0%[85]. - The company has made adequate provisions for land appreciation tax amounting to approximately RMB 340,883,000 as of December 31, 2023[196]. Cash Flow and Investments - The company recorded a net cash outflow from investing activities of approximately RMB 221,879,000, a significant increase in cash outflow compared to the previous year's net inflow of RMB 410,581,000[28]. - Cash and cash equivalents increased to RMB 9,432,353 thousand in 2023, up from RMB 7,748,703 thousand in 2022, indicating a growth of 21.7%[52]. - The company reported interest income from investment financial assets of RMB 193,734 thousand in 2023, up from RMB 176,047 thousand in 2022, marking an increase of about 10%[111]. - The company recognized other income from subsidiaries totaling RMB 337,020 thousand for land compensation in 2023[84]. Employee and Human Resources - Employee benefits expenses amounted to RMB 4,858,986,000 for the year, reflecting the company's commitment to human resource management[35]. - The company employed 6,413 staff members as of December 31, 2023, a decrease from 6,560 employees in the previous year[35].