Company Information [Company Overview](index=1&type=section&id=Company%20Overview) Zhongtian Construction (Hunan) Group Co., Ltd. is an investment holding company incorporated in the Cayman Islands, primarily engaged in construction services in China, listed on the HKEX Main Board since March 30, 2023 - The company was incorporated in the Cayman Islands on **March 27, 2020**, primarily providing construction services in China[9](index=9&type=chunk) - The company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since **March 30, 2023**[9](index=9&type=chunk) Financial Highlights [2025 H1 Performance Overview](index=1&type=section&id=2025%20H1%20Performance%20Overview) In H1 2025, the Group's revenue slightly decreased by 2.8% to RMB 346.6 million, while gross profit margin improved to 11.3%, and loss attributable to owners narrowed to RMB 18.4 million H1 2025 Key Financial Indicators | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 346.6 | 356.5 | -2.8% | | Gross Profit | 39.1 | 38.7 | +1.0% | | Gross Profit Margin | 11.3% | 10.9% | +0.4 percentage points | | Loss Attributable to Owners of the Company | (18.4) | (21.6) | Loss narrowed by 14.8% | | Basic Loss Per Share (RMB cents) | (3.19) | (4.25)* | Loss narrowed by 25.0% | - The Board decided not to declare an interim dividend for the six months ended June 30, 2025[4](index=4&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In H1 2025, the Group reported revenue of RMB 346,554 thousand, gross profit of RMB 39,072 thousand, and a total comprehensive loss of RMB 19,533 thousand, with loss attributable to owners at RMB 18,397 thousand Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 346,554 | 356,507 | | Cost of Sales | (307,482) | (317,772) | | Gross Profit | 39,072 | 38,735 | | Loss Before Income Tax | (21,532) | (26,843) | | Income Tax Credit | 1,999 | 4,130 | | Loss and Total Comprehensive Income for the Period | (19,533) | (22,713) | | Loss for the Period Attributable to Owners of the Company | (18,397) | (21,551) | | Basic Loss Per Share (RMB cents) | (3.19) | (4.25)* | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's net current assets were RMB 441,428 thousand, total assets less current liabilities were RMB 480,665 thousand, and net assets were RMB 479,106 thousand Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 39,237 | 36,240 | | Current Assets | 2,302,921 | 2,203,394 | | Current Liabilities | 1,861,493 | 1,738,050 | | Net Current Assets | 441,428 | 465,344 | | Total Assets Less Current Liabilities | 480,665 | 501,584 | | Non-current Liabilities | 1,559 | 3,921 | | Net Assets | 479,106 | 497,663 | | Total Equity | 479,106 | 497,663 | Notes to the Condensed Consolidated Financial Statements [General Information](index=5&type=section&id=General%20Information) The Company is an investment holding company incorporated in the Cayman Islands, primarily engaged in construction services in China, listed on the HKEX Main Board since March 30, 2023 - The company was incorporated in the Cayman Islands on **March 27, 2020**, primarily providing construction services in China[9](index=9&type=chunk) - The company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since **March 30, 2023**[9](index=9&type=chunk) [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) The unaudited condensed consolidated interim financial information is prepared in accordance with HKAS 34 and Listing Rules, using consistent accounting policies with the 2024 annual report - The financial information is prepared in accordance with **HKAS 34** and the **Listing Rules**[10](index=10&type=chunk) - Accounting policies consistent with the **2024 annual report** are adopted, except for new or revised HKFRSs[10](index=10&type=chunk) [Adoption of HKFRSs](index=6&type=section&id=Adoption%20of%20HKFRSs) The Group adopted new and revised standards effective January 1, 2025, including amendments to HKAS 21, which had no material impact on reported results or financial position - New and revised standards effective **January 1, 2025**, including amendments to HKAS 21, have been adopted[13](index=13&type=chunk) - These amendments have no material impact on the Group's reported results or financial position for current and prior reporting periods[13](index=13&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) The Group primarily provides construction services in China, with management reviewing business operations as a single operating segment, and all revenue and non-current assets located in China - Management reviews business operations as a single operating segment, with the main operating entities located in China[14](index=14&type=chunk) - All revenue and non-current assets for H1 2025 and H1 2024 were generated and located in China[14](index=14&type=chunk)[15](index=15&type=chunk) [Operating Segment Information](index=7&type=section&id=Operating%20Segment%20Information) The chief operating decision maker (Executive Directors) reviews business operations as a single segment to allocate resources and assess performance - The chief operating decision maker reviews business operations as a single operating segment[14](index=14&type=chunk) [Major Customers Information](index=7&type=section&id=Major%20Customers%20Information) In H1 2025, Customer B contributed RMB 71,798 thousand, exceeding 10% of total revenue, compared to Customer A in H1 2024 Major Customer Revenue Contribution (Over 10% of Total Revenue) | Customer | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Customer A | Not applicable | 35,883 | | Customer B | 71,798 | Not applicable | [Revenue](index=8&type=section&id=Revenue) Total revenue for H1 2025 was approximately RMB 346.6 million, a 2.8% decrease year-on-year, primarily from construction contracts, with growth in civil and municipal engineering but significant decline in prefabricated steel structure and other specialized contracting Total Revenue and Year-on-year Change | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 346,554 | 356,507 | -2.8% | [Revenue Composition](index=8&type=section&id=Revenue%20Composition) Construction contract revenue forms the majority, with civil and municipal engineering growing by 7.2% and 16.8% respectively, while prefabricated steel structure and other specialized contracting revenue declined over 50% Construction Contract Revenue Breakdown | Construction Contract Type | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Civil Engineering | 204,101 | 190,329 | +7.2% | | Municipal Engineering | 103,602 | 88,683 | +16.8% | | Foundation Engineering | 4,199 | 4,289 | -2.1% | | Prefabricated Steel Structure Engineering | 13,808 | 29,433 | -53.1% | | Other Specialized Contracting | 20,017 | 42,138 | -52.5% | | **Total Construction Contract Revenue** | **345,727** | **354,872** | **-2.6%** | | Revenue from Provision of Construction Machinery and Equipment | 827 | 1,635 | -49.4% | [Geographical Information](index=9&type=section&id=Geographical%20Information) Hunan Province remains the primary revenue source but saw a decrease, while Jiangxi Province experienced significant growth, and Hainan Province's revenue declined Geographical Revenue Distribution | Region | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Hunan | 193,324 | 257,348 | | Hainan | 30,721 | 50,168 | | Jiangxi | 71,798 | 15,164 | | Others | 50,711 | 33,827 | | **Total** | **346,554** | **356,507** | [Other Income and Net Other Gains](index=9&type=section&id=Other%20Income%20and%20Net%20Other%20Gains) Other income and net other gains decreased to RMB 0.3 million in H1 2025, mainly due to reduced government grants Other Income and Net Other Gains | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Income from Bank Deposits | 349 | 85 | | Government Grants | 8 | 507 | | Gain on Disposal of Property, Plant and Equipment | 32 | 1 | | Others | (84) | (2) | | **Total** | **305** | **591** | [Finance Costs](index=10&type=section&id=Finance%20Costs) Finance costs decreased to RMB 2.2 million in H1 2025, primarily due to a reduction in average borrowings and partial repayment of loans Finance Costs Components | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Expense on Lease Liabilities | 36 | 39 | | Interest Expense on Borrowings | 2,121 | 2,702 | | **Total** | **2,157** | **2,741** | [Loss Before Income Tax](index=10&type=section&id=Loss%20Before%20Income%20Tax) Loss before income tax narrowed to RMB 21.5 million in H1 2025 from RMB 26.8 million in the prior year, driven by changes in inventory costs, depreciation, R&D, and short-term lease expenses Key Components of Loss Before Income Tax | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Inventories | 93,849 | 145,446 | | Depreciation of Owned Property, Plant and Equipment | 1,144 | 2,325 | | Research and Development Costs | 8,986 | 9,352 | | Short-term Lease Expenses — Machinery and Equipment | 31,303 | 19,120 | [Income Tax Credit](index=11&type=section&id=Income%20Tax%20Credit) Income tax credit decreased to RMB 2.0 million in H1 2025 from RMB 4.1 million in the prior year, with some subsidiaries enjoying preferential tax rates as high-tech or small-profit enterprises Income Tax Credit | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | PRC Enterprise Income Tax (Current Period) | 1,732 | 527 | | Deferred Tax | (3,731) | (4,657) | | **Total** | **(1,999)** | **(4,130)** | - One subsidiary is certified as a high-tech enterprise, enjoying a **15% preferential enterprise income tax rate**[28](index=28&type=chunk)[53](index=53&type=chunk) - Two subsidiaries qualify as small-profit enterprises, entitled to preferential tax rates[28](index=28&type=chunk) [Dividends](index=11&type=section&id=Dividends) No dividends were paid or declared by the Company for H1 2025 or H1 2024 - No dividends were paid or declared by the Company for H1 2025 and H1 2024[29](index=29&type=chunk) [Loss Per Share](index=12&type=section&id=Loss%20Per%20Share) Basic loss per share narrowed to RMB 3.19 cents in H1 2025 from RMB 4.25 cents in H1 2024, with diluted loss per share being the same due to no potential dilutive ordinary shares Loss Per Share Data | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss for the Period Attributable to Owners of the Company (RMB thousand) | (18,397) | (21,551) | | Weighted Average Number of Shares in Issue | 576,000,000 | 507,342,000* | | Basic Loss Per Share (RMB cents) | (3.19) | (4.25)* | - Diluted loss per share is the same as basic loss per share for H1 2025 due to no outstanding potential dilutive ordinary shares[31](index=31&type=chunk) [Trade and Bills Receivables and Other Receivables](index=13&type=section&id=Trade%20and%20Bills%20Receivables%20and%20Other%20Receivables) As of June 30, 2025, net trade and bills receivables were RMB 329,573 thousand, a decrease from December 31, 2024, while prepayments significantly increased Summary of Trade and Bills Receivables and Other Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 377,050 | 448,472 | | Bills Receivables | 1,061 | 725 | | Impairment Allowance | (48,538) | (35,224) | | **Net Trade and Bills Receivables** | **329,573** | **413,973** | | Prepayments | 206,630 | 26,780 | | **Total** | **624,038** | **528,494** | Trade Receivables Aging Analysis (Net of Impairment Losses) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 days | 40,709 | 144,887 | | 91 to 180 days | 25,322 | 11,999 | | 181 to 365 days | 62,821 | 64,941 | | 1 to 2 years | 94,756 | 107,476 | | 2 to 3 years | 64,442 | 53,407 | | Over 3 years | 40,485 | 30,587 | | **Total** | **328,535** | **413,297** | [Trade Payables](index=14&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables increased to RMB 1,089,101 thousand, with a significant portion aged over one year Trade Payables Summary | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables — Third Parties | 1,055,899 | 945,415 | | Trade Payables — Related Parties | 33,202 | 39,891 | | **Total** | **1,089,101** | **985,306** | Trade Payables Aging Analysis | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 days | 86,078 | 226,489 | | 91 to 180 days | 66,952 | 35,362 | | 181 to 365 days | 249,734 | 262,185 | | 1 to 2 years | 534,396 | 353,674 | | Over 2 years | 151,941 | 107,596 | | **Total** | **1,089,101** | **985,306** | [Borrowings](index=15&type=section&id=Borrowings) As of June 30, 2025, total interest-bearing borrowings decreased by 17.5% to approximately RMB 93.3 million, mostly current liabilities, with some financial covenant breaches waived by banks Borrowings Composition | Borrowing Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Borrowings | 92,727 | 110,261 | | Non-current Borrowings | 622 | 2,800 | | **Total** | **93,349** | **113,061** | - The Group failed to comply with certain financial covenants for bank borrowings totaling **RMB 73.5 million**, but waivers were obtained from the banks after the reporting period[37](index=37&type=chunk) Pledged Assets for Borrowings | Pledged Assets | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Property, Plant and Equipment | 5,019 | 5,022 | | Trade and Bills Receivables | — | 33,750 | | Investment Properties | 8,782 | 6,934 | | Bank Deposits | — | 5,000 | | Intangible Assets | — | 38 | Business Review and Future Outlook [Business Review](index=18&type=section&id=Business%20Review) In H1 2025, the Group operated in a challenging market with a slight revenue decrease, but civil and municipal engineering grew, and gross profit margin improved due to cost control and project selection - Operated in a challenging market environment with a continued downturn in China's real estate sector and a slow economic recovery[38](index=38&type=chunk) - Total revenue slightly decreased by **2.8%** year-on-year to approximately **RMB 346.6 million**, with a narrower decline compared to the previous year[38](index=38&type=chunk) - Revenue from civil engineering and municipal engineering recorded mid-single-digit and double-digit growth, respectively, while prefabricated steel structure engineering and other specialized contracting revenue significantly declined[38](index=38&type=chunk) - Gross profit margin slightly increased to approximately **11.3%** (H1 2024: approximately 10.9%), primarily due to a focus on cost control and stringent project selection[39](index=39&type=chunk) [Future Outlook and Strategies](index=18&type=section&id=Future%20Outlook%20and%20Strategies) The Group anticipates continued pressure in China's construction industry and will maintain a cautious strategy focusing on resilient segments, risk management, cost discipline, liquidity, and exploring new opportunities for long-term growth - China's construction industry is expected to remain under pressure, with intense competition for new projects and liquidity management as a key challenge[40](index=40&type=chunk) - Strategies include prioritizing civil engineering and municipal engineering projects; strengthening project selection criteria, focusing on clients with strong credit profiles; strict control over administrative expenses to enhance operational efficiency; prudent working capital management and accelerating receivables collection; and evaluating potential growth areas such as urban renewal, infrastructure upgrades, and green building initiatives[41](index=41&type=chunk)[42](index=42&type=chunk) Financial Performance Analysis [Revenue Analysis](index=20&type=section&id=Revenue%20Analysis) Total revenue for H1 2025 was approximately RMB 346.6 million, a 2.8% year-on-year decrease, with a narrower decline indicating business stabilization - Revenue for H1 2025 was approximately **RMB 346.6 million**, a decrease of approximately **2.8%** compared to H1 2024[43](index=43&type=chunk) - The decrease was significantly narrower than in H1 2024, indicating a gradual stabilization of business operations[43](index=43&type=chunk) [Construction Contract Revenue](index=20&type=section&id=Construction%20Contract%20Revenue) Construction contract revenue was approximately RMB 345.7 million. Civil and municipal engineering revenue grew by 7.2% and 16.8%, while prefabricated steel structure and other specialized contracting revenue significantly declined by 53.1% and 52.5% Construction Contract Revenue Breakdown and Changes | Construction Contract Type | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Civil Engineering | 204.1 | 190.3 | +7.2% | | Municipal Engineering | 103.6 | 88.7 | +16.8% | | Prefabricated Steel Structure Engineering | 13.8 | 29.4 | -53.1% | | Other Specialized Contracting | 20.0 | 42.1 | -52.5% | [Revenue from Provision of Construction Machinery and Equipment](index=21&type=section&id=Revenue%20from%20Provision%20of%20Construction%20Machinery%20and%20Equipment) Revenue from providing construction machinery and equipment decreased from approximately RMB 1.6 million in H1 2024 to RMB 0.8 million in H1 2025 Revenue from Provision of Construction Machinery and Equipment | Item | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Revenue from Provision of Construction Machinery and Equipment | 0.8 | 1.6 | [Cost of Sales and Gross Profit](index=21&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) Cost of sales decreased by 3.2% to RMB 307.5 million, aligning with revenue reduction, while gross profit slightly increased to RMB 39.1 million, and gross profit margin rose to 11.3%, reflecting improved project mix and cost management Cost of Sales and Gross Profit | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Cost of Sales | 307.5 | 317.8 | -3.2% | | Gross Profit | 39.1 | 38.7 | +1.0% | | Gross Profit Margin | 11.3% | 10.9% | +0.4 percentage points | - The decrease in cost of sales was primarily due to reduced material costs and subcontracting expenses resulting from the contraction of prefabricated steel structure and other specialized contracting projects[47](index=47&type=chunk) [Analysis of Other Income and Expenses](index=21&type=section&id=Analysis%20of%20Other%20Income%20and%20Expenses) Other income and net other gains decreased due to reduced government subsidies, administrative and other expenses remained stable, impairment of financial and contract assets remained stable, and finance costs decreased due to lower average borrowings - Other income and net other gains decreased to **RMB 0.3 million**, mainly due to a reduction in government subsidies[49](index=49&type=chunk) - Administrative and other expenses remained relatively stable at **RMB 34.5 million**[50](index=50&type=chunk) - Net impairment of financial and contract assets remained stable at **RMB 24.3 million**[51](index=51&type=chunk) - Finance costs decreased to **RMB 2.2 million**, primarily due to a reduction in average borrowings and partial repayment of certain borrowings[52](index=52&type=chunk) [Net Loss Analysis](index=22&type=section&id=Net%20Loss%20Analysis) Loss attributable to owners narrowed to RMB 18.4 million in H1 2025, an improvement of approximately 14.6%, primarily due to reduced impairment expenses and finance costs Loss Attributable to Owners of the Company | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | (18.4) | (21.6) | Loss narrowed by 14.6% | - The narrowing of the loss was mainly due to reduced impairment expenses and finance costs[54](index=54&type=chunk) Liquidity and Capital Structure [Liquidity and Financial Resources](index=22&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, net current assets were approximately RMB 441.4 million, current ratio slightly decreased to 1.24, and cash and cash equivalents increased by 25.0% to RMB 40.7 million, still reflecting working capital pressure Liquidity Indicators | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Net Current Assets | 441.4 | 465.3 | -5.1% | | Current Ratio | 1.24 | 1.27 | -0.03 | | Cash and Cash Equivalents | 40.7 | 32.5 | +25.0% | - The increase in cash was mainly due to improved operating cash inflow and tighter control over capital expenditure, but the cash balance remains at a relatively modest level, reflecting ongoing working capital pressure[55](index=55&type=chunk) - The Group will continue to strengthen receivables collection and actively manage contract assets to enhance liquidity[55](index=55&type=chunk) [Funding and Treasury Policy](index=23&type=section&id=Funding%20and%20Treasury%20Policy) The Group maintains a prudent funding and treasury policy, keeping surplus funds in licensed banks and closely monitoring liquidity to meet funding needs - The Group maintains a prudent funding and treasury policy, with surplus funds held as cash deposits in licensed banks[57](index=57&type=chunk) - The Board closely monitors the Group's liquidity position to ensure funding needs are met[57](index=57&type=chunk) [Capital Commitments](index=23&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's capital commitments for property, plant, and equipment acquisition were approximately RMB 14.5 million, consistent with December 31, 2024 Capital Commitments | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Acquisition of Property, Plant and Equipment | 14.5 | 14.5 | [Gearing Ratio](index=25&type=section&id=Gearing%20Ratio) As of June 30, 2025, the gearing ratio (total interest-bearing debt divided by total equity) decreased to approximately 19.5% from 23.0% at December 31, 2024, reflecting debt reduction and a sound capital structure approach Gearing Ratio | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 19.5% | 23.0% | [Pledge of Assets](index=25&type=section&id=Pledge%20of%20Assets) Details of assets pledged by the Group to secure borrowings are provided in Note 14 to the condensed consolidated financial statements, primarily including property, plant, and equipment, and investment properties - Details of assets pledged by the Group to secure borrowings are contained in Note 14 to the condensed consolidated financial statements[65](index=65&type=chunk) [Use of Proceeds from Global Offering](index=25&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) Net proceeds from the global offering were approximately RMB 76.6 million, with RMB 65.1 million utilized by H1 2025 for project pre-expenses, technology center working capital, and general corporate purposes, and the remaining RMB 11.5 million expected for machinery and equipment by December 2025 Use and Application of Proceeds from Global Offering | Purpose | Intended Use (RMB million) | Utilized in H1 2025 (RMB million) | Unutilized as of June 30, 2025 (RMB million) | Estimated Timeline for Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | | Funding pre-expenses for three ongoing projects | 38.3 | 38.3 | — | Not applicable | | Purchasing and/or replacing construction machinery and equipment | 15.3 | 3.8 | 11.5 | Before December 2025 | | Funding establishment and operation of a technology center | 15.3 | 15.3 | — | Not applicable | | Working capital and general corporate purposes | 7.7 | 7.7 | — | Not applicable | | **Total** | **76.6** | **65.1** | **11.5** | | Employees and Remuneration [Employees and Remuneration Policy](index=23&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 335 staff with total staff costs of approximately RMB 10.9 million, utilizing an appraisal system for salary reviews and bonuses, alongside various benefits and training Employees and Staff Costs | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of Employees | 335 | 295 | | Total Staff Costs (RMB million) | 10.9 | 14.8 | - An appraisal system is used for salary reviews and bonus determination, along with various additional benefits and training opportunities[59](index=59&type=chunk) - A share option scheme was adopted on March 10, 2023, but no share options have been granted from the listing date up to June 30, 2025[60](index=60&type=chunk) Investment and Asset Plans [Future Plans for Material Investments and Capital Assets](index=24&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) Except for disclosures in the prospectus and June 7, 2024 announcement, the Group had no other future plans for material investments and capital assets as of June 30, 2025 - Except for information disclosed in the prospectus and the announcement dated June 7, 2024, the Group had no other future plans for material investments and capital assets as of June 30, 2025[61](index=61&type=chunk) [Material Investments, Acquisitions and Disposals](index=26&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) In H1 2025, the Group did not hold any material investments or undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - In H1 2025, the Group did not hold any material investments or undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[69](index=69&type=chunk) Risk Management [Contingent Liabilities](index=24&type=section&id=Contingent%20Liabilities) Except for certain outstanding litigations and claims arising in the ordinary course of business, the Group had no material contingent liabilities as of June 30, 2025 - Except for certain outstanding litigations and claims arising in the ordinary course of business, the Group had no material contingent liabilities as of June 30, 2025[62](index=62&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=Foreign%20Exchange%20Risk) The Group's assets, liabilities, and transactions are primarily denominated in RMB, with no foreign exchange contracts to hedge fluctuations, and directors consider foreign exchange risk to be minimal - The Group's assets, liabilities, and transactions are primarily denominated in RMB[63](index=63&type=chunk) - No foreign exchange contracts have been entered into to hedge against exchange rate fluctuations, and the Directors consider foreign exchange risk to be minimal[63](index=63&type=chunk) Share Capital and Dividends [Share Transactions](index=25&type=section&id=Share%20Transactions) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities in H1 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities in H1 2025[66](index=66&type=chunk) [Interim Dividend](index=26&type=section&id=Interim%20Dividend) The Board does not recommend an interim dividend for H1 2025, consistent with H1 2024 - The Board does not recommend an interim dividend for H1 2025 (H1 2024: nil)[70](index=70&type=chunk) Corporate Governance [Audit Committee](index=26&type=section&id=Audit%20Committee) The Audit Committee, established on March 10, 2023, comprises three independent non-executive directors, advising on auditor appointment, financial statement review, internal control, and risk management, and has reviewed H1 2025 interim financial information - The Audit Committee was established on **March 10, 2023**, and comprises three independent non-executive directors[71](index=71&type=chunk) - Its primary responsibilities include advising on the appointment of external auditors, reviewing financial statements, and overseeing financial reporting procedures, internal control, and risk management systems[71](index=71&type=chunk) - The Audit Committee has reviewed the unaudited condensed consolidated interim financial information for H1 2025[72](index=72&type=chunk) [Corporate Governance Practices](index=27&type=section&id=Corporate%20Governance%20Practices) The Board is committed to high standards of corporate governance and adopted and complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during H1 2025 - The Board is committed to achieving high standards of corporate governance and adopted and complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules during H1 2025[73](index=73&type=chunk) [Model Code for Securities Transactions](index=27&type=section&id=Model%20Code%20for%20Securities%20Transactions) The Company adopted the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules, with all directors confirming compliance during H1 2025 - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[74](index=74&type=chunk) - All Directors confirmed their compliance with the required standards of dealing as set out in the Model Code throughout H1 2025[74](index=74&type=chunk) Other Important Information [Significant Events After H1 2025](index=27&type=section&id=Significant%20Events%20After%20H1%202025) The Directors noted no significant events concerning the Group's business or financial performance after June 30, 2025 - The Directors noted no significant events concerning the Group's business or financial performance after June 30, 2025[75](index=75&type=chunk) [Interim Report Publication](index=27&type=section&id=Interim%20Report%20Publication) The H1 2025 interim report will be dispatched to shareholders and published on the HKEX and Company websites in due course - The H1 2025 interim report will be dispatched to shareholders and published on the HKEX website and the Company's website in due course[76](index=76&type=chunk) [Acknowledgements and Board Composition](index=28&type=section&id=Acknowledgements%20and%20Board%20Composition) The Board extends gratitude to management, staff, shareholders, business partners, and professionals for their support, with the Board comprising four executive and three independent non-executive directors as of the announcement date - The Board extends its sincere gratitude to the Group's management and all staff for their efforts and contributions, as well as to shareholders, business partners, and other professionals for their support[77](index=77&type=chunk) - The Board comprises Mr. Yang Zhongjie (Chairman and Executive Director); Mr. Liu Xiaohong, Mr. Chen Weiwu, and Mr. Min Shixiong (Executive Directors); and Dr. Liu Jianlong, Ms. Deng Jianhua, and Mr. Liu Guohui (Independent Non-executive Directors)[80](index=80&type=chunk)

格隆汇8月19日丨中天湖南集团(02433.HK)公告，公司将于2025年8月29日(星期五)召开董事会会议，以 (其中包括)审议及批准公司及其附属公司截至2025年6月30日止6个月未经审核中期业绩及刊发中期业绩 公告，并审议派付中期股息(如有)。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因 依賴該等內容而引致的任何損失承擔任何責任。 中天建設（湖南）集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2433） 董事會會議通告 中天建設（湖南）集團有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣 佈，本公司將於2025年8月29日（星期五）召開董事會會議，以（其中包括）審議 及批准本公司及其附屬公司截至2025年6月30日止六個月之未經審核中期業績 （「中期業績」）及刊發中期業績公告，並審議派付中期股息（如有）。 Zhongtian Construction (Hunan) Group Limited 董事長兼執行董事 承董事會命 Zhongtian Construction (Hunan) Group Limited 楊中杰 中天建設（湖南）集團有限公司 香港，2025年8月19日 於本公告日期，董事會包括董事長兼執行董事楊中杰先生；執行董事劉小紅先生、陳衛武先 生及閔世雄先生；及獨立非執行董事劉建龍博士、鄧建華 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中天建設（湖南）集團有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02433 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | HKD | | 0.01 | HKD | | 50,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 5,000,000,000 | HKD | | 0.01 | HKD | | 50,000,000 | 本月底法定/ ...

Financial Performance - For the fiscal year 2024, the company's revenue was approximately RMB 930.8 million, a significant decrease of 52.3% compared to RMB 1,952.1 million in fiscal year 2023[10]. - The company recorded a net loss of approximately RMB 26.4 million in fiscal year 2024, compared to a net profit of approximately RMB 46.0 million in fiscal year 2023[11]. - Gross profit decreased from approximately RMB 212.6 million in fiscal year 2023 to approximately RMB 71.0 million in fiscal year 2024, representing a decline of about 66.7%[21]. - The gross profit margin for fiscal year 2024 was approximately 7.6%, down from 10.9% in fiscal year 2023[11]. - Revenue from construction contracts decreased by approximately RMB 1,021.3 million or 52.3% to about RMB 930.8 million in FY2024 from approximately RMB 1,952.1 million in FY2023[22]. - Revenue from civil construction projects fell by approximately RMB 445.5 million or 45.7% to about RMB 529.3 million in FY2024 from approximately RMB 974.8 million in FY2023[23]. - Revenue from municipal engineering dropped by approximately RMB 335.6 million or 54.3% to about RMB 282.8 million in FY2024 from approximately RMB 618.4 million in FY2023[24]. - Revenue from prefabricated steel structure engineering decreased by approximately RMB 230.0 million or 86.7% to about RMB 35.2 million in FY2024 from approximately RMB 265.2 million in FY2023[26]. - Trade receivables and other receivables increased from approximately RMB 453.5 million on December 31, 2023, to about RMB 528.5 million on December 31, 2024, due to customer payment delays[37]. - Cash and cash equivalents were approximately RMB 32.5 million as of December 31, 2024, down from approximately RMB 59.6 million in fiscal year 2023[18]. - Cash and cash equivalents decreased from approximately RMB 59.6 million on December 31, 2023, to about RMB 32.5 million on December 31, 2024, primarily due to cash outflows related to working capital needs[38]. Cost Management - The company managed to reduce administrative and other expenses from approximately RMB 125.5 million in fiscal year 2023 to approximately RMB 74.0 million in fiscal year 2024[12]. - The company maintained a stable debt-to-equity ratio of 23.0% as of December 31, 2024, reflecting prudent financial management in a challenging market[40]. Strategic Focus - The company plans to focus on strategic cooperation and regional diversification while continuing to invest in technology and talent development[19]. - The company aims to enhance operational efficiency and maintain compliance with regulatory requirements to ensure project quality and safety[15]. - The outlook for the construction and real estate industry in China remains volatile, but the company sees selective opportunities in infrastructure development and urban renewal projects[17]. Corporate Governance - The company adopted the corporate governance code as per the listing rules since its listing date in the fiscal year 2023, ensuring compliance until December 31, 2024[65]. - The board consists of four executive directors and three independent non-executive directors, with independent directors exceeding one-third of the board[67]. - The company has received annual confirmation letters from all independent non-executive directors regarding their independence, confirming no circumstances affecting their independence[71]. - The company has established mechanisms to ensure a strong independent element within the board, with at least three independent non-executive directors[77]. - The board is responsible for leading and controlling the company, overseeing business strategies and performance[74]. - The company has set guidelines for employees regarding the trading of its securities, ensuring compliance with the standard code[66]. - The nomination committee is responsible for reviewing board composition and monitoring the appointment and re-election of directors[76]. - The board of directors held three meetings and one annual general meeting in the fiscal year 2024, with all directors attending all meetings[83]. - The audit committee conducted two meetings to review accounting standards, internal audit effectiveness, and financial performance for the six months ending June 30, 2024, and the year ending December 31, 2024[92]. - The remuneration committee is responsible for advising on the remuneration policies for directors and senior management, and evaluating their performance[93]. - The company encourages directors to participate in relevant courses to enhance their knowledge and effectiveness in fulfilling their responsibilities[86]. - The company has established three committees: the audit committee, nomination committee, and remuneration committee, with clear written terms of reference[87]. - The audit committee consists of three members, including an independent non-executive director with appropriate accounting or financial management expertise[89]. - The company provides competitive remuneration packages to attract and retain high-quality employees, aligning with market standards[96]. - All directors have the right to access board documents and seek independent professional advice when necessary[85]. - The board has conducted an annual review of the mechanisms in place and believes they have been adequately implemented[81]. - The company held one meeting of the remuneration committee in the fiscal year 2024 to review and recommend compensation for directors and senior management[97]. - The nomination committee consists of three members, including the chairman of the board, and is responsible for recommending appointments and removals of directors[98][99]. - The company adopted a board diversity policy, ensuring that candidates are selected based on various diversity criteria, including gender, age, and professional experience[105]. - The board has reviewed its corporate governance policies and practices, ensuring compliance with legal and regulatory requirements[109]. - Directors are responsible for preparing the company's financial statements for the year ending December 31, 2024[110]. Shareholder Relations - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and understanding of business performance and strategy[121]. - The company has adopted a shareholder communication policy deemed sufficient and effective for the fiscal year ending December 31, 2024[131]. - The company’s website serves as a platform for shareholders to access corporate information and updates on governance and board composition[135]. Related Party Transactions - The construction service framework agreement with Hunan Hengji Real Estate, Wuguang Investment, and Hangxiao Technology has annual caps for construction service fees of RMB 390.5 million for FY2023, RMB 366 million for FY2024, and RMB 386 million for FY2025[167]. - The procurement framework agreement with Fangge Intelligent and Hangxiao Technology has annual caps for procurement of RMB 160 million for FY2023, FY2024, and FY2025[170]. - For FY2024, the expected payments to Hangxiao Technology under the procurement framework agreement are approximately RMB 42.07 million, down from RMB 111.41 million in FY2023[171]. - The company has confirmed that the annual caps for related party transactions are fair and reasonable for shareholders[175]. - Independent non-executive directors have reviewed the non-exempt continuing connected transactions and confirmed they are conducted in the ordinary course of business and on normal commercial terms[174]. - The company holds approximately 85.82% equity in Hunan Hengji Real Estate, which is primarily engaged in real estate development[167]. - The company holds 70% equity in Hunan Fangge Intelligent Energy-saving Technology, which provides auxiliary construction services and software[168]. - The company holds 68.29% equity in Hunan Zhongtian Hangxiao Steel Structure Technology, which specializes in steel structure design and manufacturing[168]. - The construction service framework agreements are set to expire on December 31, 2025[167]. - The company has complied with the disclosure requirements under the Listing Rules regarding related party transactions[176]. Stock Options and Shareholding - The stock option plan was adopted on March 10, 2023, allowing for a total of 48,000,000 shares to be issued, representing 10% of the total shares outstanding at the time of listing[179]. - The unexercised stock options available under the plan as of January 1, 2024, amount to 48,000,000 options, which is approximately 8.3% of the company's issued share capital[184]. - The maximum number of stock options that can be granted to service providers is capped at 4,800,000 shares, representing 1% of the total shares outstanding[183]. - The stock options can be exercised within a period determined by the board, not exceeding ten years from the offer date[186]. - The vesting period for stock options will be at least 12 months, with the possibility of shorter vesting periods at the board's discretion[187]. - The stock option plan will remain effective for a period of ten years from the adoption date, expiring on March 9, 2033[190]. - The company has maintained a public float of at least 25% of its issued shares since the listing date, in compliance with exchange regulations[193]. - As of December 31, 2024, ZT (A) holds approximately 46.35% of the company's shares, totaling 266,965,000 shares[198]. - The company's top five customers accounted for approximately 25.6% of total revenue in FY2024, down from 35.9% in FY2023[200]. - The largest single customer contributed about 8.06% of total revenue in FY2024, compared to 9.7% in FY2023[200]. - The top five suppliers represented approximately 22.7% of total purchases in FY2024, an increase from 19.5% in FY2023[200]. - The largest single supplier accounted for about 7.2% of total purchases in FY2024, up from 6.0% in FY2023[200]. - Mr. Yang holds a controlled interest in ZT (E) Limited with 13,164,000 shares, representing 2.29% of the company[194]. - Mr. Liu has a controlled interest in ZT (F) Limited with 3,376,000 shares, representing 0.59% of the company[194]. - Mr. Chen holds a controlled interest in ZT (H) Limited with 1,770,000 shares, representing 0.31% of the company[194]. - Mr. Min has a controlled interest in ZT (K) Limited with 812,000 shares, representing 0.14% of the company[194]. - ZT (A) is owned by 79 individual shareholders, including 12 directors or senior management members who collectively hold about 49.04%[198]. Miscellaneous - The company has no significant future investment or capital asset plans beyond those disclosed in previous announcements[43]. - As of December 31, 2024, the group employed 345 employees in China, an increase from 324 employees in 2023, with total employee costs for FY2024 approximately RMB 23.9 million compared to RMB 24.8 million in FY2023[48]. - The group made retirement plan contributions of approximately RMB 5.79 million in FY2024, up from RMB 5.45 million in FY2023[49]. - The group announced a placement of 96 million shares to raise approximately HKD 15.6 million, with a net amount of about HKD 15.2 million after expenses[53][55]. - The proceeds from the placement were fully utilized for preliminary expenses related to cultural exhibition projects and general working capital[56]. - In FY2024, the group sold a non-wholly owned subsidiary for approximately RMB 2.6 million, with no other significant investments or acquisitions reported[57]. - The board did not recommend any final dividend for the year ending December 31, 2024, consistent with the previous year[61]. - No significant events affecting the group's business or financial performance were noted after December 31, 2024[62]. - The annual general meeting is scheduled for June 27, 2025, with a suspension of share transfer registration from June 24 to June 27, 2025[63]. - The company recorded a distribution reserve of approximately RMB 66,989,000 as of December 31, 2024, compared to RMB 76,983,000 in 2023[154]. - The company was listed on the main board of the Stock Exchange on March 30, 2023[141]. - The company has not experienced any significant disputes with suppliers, customers, or stakeholders during the fiscal year 2024[149]. - The company has complied with relevant laws and regulations, with no significant violations reported in the fiscal year 2024[148]. - The company’s main business remains unchanged in the fiscal year 2024, focusing on engineering contracting in China[137]. - The company’s financial performance and business review for the fiscal year 2024 are detailed in the management discussion and analysis section of the annual report[146]. - The company has undergone a restructuring process in preparation for its listing, as detailed in the prospectus[140]. - The company’s headquarters and main operating location are situated in Zhuzhou, Hunan Province, China[138]. - The board is committed to balancing shareholder interests with prudent capital management when considering dividend payments[145].

Financial Performance - In the fiscal year 2024, the revenue from construction contracts decreased by approximately RMB 1,021.3 million or 52.3% to about RMB 930.8 million compared to RMB 1,952.1 million in fiscal year 2023[3] - The overall gross profit margin declined from approximately 10.9% in fiscal year 2023 to about 7.6% in fiscal year 2024[3] - The net loss for fiscal year 2024 was approximately RMB 26.4 million, compared to a net profit of approximately RMB 46.0 million in fiscal year 2023[3] - Total revenue for the year ended December 31, 2024, was RMB 930,801 thousand, a decrease of 52.4% from RMB 1,952,122 thousand in 2023[25] - The gross profit for the fiscal year 2024 was approximately RMB 71.0 million, down approximately 66.7% from RMB 212.6 million in fiscal year 2023, resulting in a gross margin of about 7.6%[40] - The company's pre-tax loss for the fiscal year 2024 was RMB 25,389 thousand, compared to a profit of RMB 45,277 thousand in fiscal year 2023[32] - The basic and diluted loss per share for fiscal year 2024 was RMB 4.69, compared to earnings per share of RMB 9.60 in fiscal year 2023[4] Revenue Breakdown - Revenue from civil construction projects was RMB 529,287 thousand, down 45.8% from RMB 974,816 thousand in 2023[25] - Revenue from municipal engineering decreased by 54.4% to RMB 282,795 thousand from RMB 618,360 thousand in 2023[25] - Revenue from prefabricated steel structure engineering dropped by approximately RMB 230.0 million or 86.7% to about RMB 35.2 million in fiscal year 2024, mainly due to the nearing completion of a significant project[45] - Revenue from civil construction projects fell by approximately RMB 445.5 million or 45.7% to about RMB 529.3 million in fiscal year 2024, primarily due to the completion of major projects in fiscal year 2023[42] - Revenue from municipal engineering decreased by approximately RMB 335.6 million or 54.3% to about RMB 282.8 million in fiscal year 2024, attributed to the completion of large projects[43] Assets and Liabilities - The total assets less current liabilities amounted to RMB 501.6 million in fiscal year 2024, down from RMB 520.0 million in fiscal year 2023[5] - Trade receivables increased to RMB 448,472 thousand in 2024 from RMB 384,027 thousand in 2023, with third-party receivables rising to RMB 408,375 thousand[34] - Trade payables increased to RMB 985,306 thousand in 2024 from RMB 808,587 thousand in 2023, with third-party payables rising to RMB 945,415 thousand[38] - The company's current ratio slightly decreased from approximately 1.32 as of December 31, 2023, to about 1.27 as of December 31, 2024, indicating a slight reduction in short-term liquidity[56] Cash and Financing - The company had cash and cash equivalents of approximately RMB 32.5 million as of December 31, 2024, compared to RMB 59.6 million in the previous year[5] - The company successfully recovered no less than approximately RMB 220 million from trade receivables and contract assets after the reporting date[9] - The company has obtained bank loans of approximately RMB 15 million after the reporting date[9] - The unused bank and credit facilities totaled approximately RMB 11 million as of the announcement date[9] - Interest expenses on borrowings decreased to RMB 5,247 thousand in 2024 from RMB 7,775 thousand in 2023, a reduction of 32.5%[27] - Financial costs decreased from approximately RMB 7.8 million in fiscal year 2023 to about RMB 5.3 million in fiscal year 2024, primarily due to reduced borrowings[52] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules since its listing date and will continue to comply until December 31, 2024[76] - The audit committee was established on March 10, 2023, and is composed of three independent non-executive directors, responsible for overseeing financial reporting and internal controls[78] - The consolidated financial statements for the fiscal year 2024 have been reviewed and approved by the audit committee, ensuring compliance with applicable accounting standards[79] Dividends and Shareholder Information - The company did not declare or pay any dividends for both fiscal years 2024 and 2023[30] - The board does not recommend any final dividend for the year ending December 31, 2024, consistent with the previous year[84] - The annual general meeting is scheduled for June 27, 2025, with a suspension of share transfer registration from June 24 to June 27, 2025[86] Future Plans and Investments - The company plans to use RMB 38.3 million for preliminary expenses related to three ongoing projects, with an additional RMB 15.3 million allocated for purchasing or replacing construction machinery and equipment[70] - The company announced a placement of 96,000,000 shares to raise approximately HKD 15.6 million, with a net amount of about HKD 15.2 million expected to be used for new project expenses and general working capital[72] - The company sold a non-wholly owned subsidiary for approximately RMB 2.6 million during fiscal year 2024, with no other significant investments or acquisitions reported[74] Risk Management - The company has not entered into any foreign exchange contracts to hedge against currency fluctuations, and considers the impact of foreign exchange risk to be minimal[75] - The company has no significant contingent liabilities as of December 31, 2024, aside from ongoing litigation and claims arising from normal business operations[66]

Financial Performance - For the six months ended June 30, 2024, the group's unaudited revenue was approximately RMB 356.5 million, a decrease of about 47.7% compared to approximately RMB 681.4 million for the same period in 2023[1] - The group's gross profit fell from approximately RMB 79.5 million for the six months ended June 30, 2023, to approximately RMB 38.7 million, with a gross profit margin decreasing from about 11.7% to approximately 10.9%[1] - The loss attributable to the owners of the company for the six months ended June 30, 2024, was approximately RMB 22.7 million, compared to a profit of RMB 18.8 million for the same period in 2023[1] - Basic loss per share for the six months ended June 30, 2024, was approximately RMB 4.23, compared to earnings of RMB 4.27 per share for the same period in 2023[1] - Revenue for the six months ended June 30, 2024, was RMB 356,507 thousand, a decrease of 47.6% compared to RMB 681,356 thousand for the same period in 2023[15] - The company reported a net loss attributable to equity holders of RMB (21,551) thousand for the six months ended June 30, 2024, compared to a profit of RMB 18,824 thousand for the same period in 2023[23] - The company incurred research and development costs of RMB 9,352 thousand, a decrease of 48.0% from RMB 17,987 thousand in the previous year[19] - The company's revenue decreased significantly by approximately 47.7% from about RMB 681.4 million in the first half of 2023 to about RMB 356.5 million in the first half of 2024 due to reduced investment in construction projects by both private and public sectors[33] Revenue Breakdown - Revenue from civil construction projects was RMB 190,329 thousand, down 40.5% from RMB 320,311 thousand in the previous year[13] - Revenue from construction contracts in the first half of 2024 decreased by approximately RMB 323.3 million or 47.7% to about RMB 354.9 million compared to approximately RMB 678.2 million in the same period of 2023[34] - Revenue from civil engineering projects fell by approximately RMB 130.0 million or 40.6% to RMB 190.3 million in the first half of 2024, primarily due to the completion of major phases of projects in Hainan[35] - Revenue from municipal engineering dropped by approximately RMB 155.2 million or 63.6% to RMB 88.7 million, mainly due to the completion of several significant projects in 2023[36] - Revenue from foundation engineering decreased by approximately RMB 3.4 million or 44% to about RMB 4.3 million, as most foundation works are ancillary to civil or municipal projects[37] - Revenue from prefabricated steel structure engineering fell to approximately RMB 29.4 million, down from about RMB 91.3 million, due to reduced income from the project entering the later construction phase[38] - Revenue from other specialized contracting increased by approximately 180.9% to about RMB 42.1 million, attributed to the acquisition of 17 decoration and renovation projects[39] Dividends and Shareholder Returns - The board of directors decided not to declare an interim dividend for the six months ended June 30, 2024, consistent with the previous period[1] - The company did not declare or pay any dividends for the six months ended June 30, 2024, and 2023[22] - The board did not recommend the payment of an interim dividend for the first half of 2024, consistent with the previous year[69] Assets and Liabilities - As of June 30, 2024, total current liabilities were RMB 2,200.2 million, an increase from RMB 2,009.0 million as of December 31, 2023[4] - Trade receivables and other receivables increased to RMB 611.1 million as of June 30, 2024, from RMB 453.5 million as of December 31, 2023[4] - Contract assets rose to RMB 1,517.6 million as of June 30, 2024, compared to RMB 1,476.0 million as of December 31, 2023[4] - Non-current assets, including property, plant, and equipment, decreased to RMB 39.9 million as of June 30, 2024, from RMB 28.1 million as of December 31, 2023[4] - The company's total equity attributable to owners was RMB 494.1 million as of June 30, 2024, down from RMB 501.8 million as of December 31, 2023[4] - As of June 30, 2024, the group's net current assets were approximately RMB 472.1 million, a decrease from RMB 491.8 million as of December 31, 2023[51] - The current ratio decreased from approximately 1.32 on December 31, 2023, to approximately 1.27 on June 30, 2024, due to an increase in trade payables and accrued expenses totaling approximately RMB 210.1 million, which outpaced the increase in trade receivables of approximately RMB 199.1 million[51] - Total debt slightly increased from approximately RMB 114.4 million as of December 31, 2023, to approximately RMB 115.3 million as of June 30, 2024[51] - The debt-to-equity ratio rose from approximately 22.7% on December 31, 2023, to approximately 23.2% on June 30, 2024, primarily due to a 2% decrease in equity resulting from net losses during the period[51][60] Operational Challenges - The company faced significant challenges in the construction market due to a continuous decline in the real estate market and economic recession in China[32] - The company has adapted to the changing business environment by prioritizing resources in less affected sectors[32] Financing and Capital Management - The total available undrawn bank credit was approximately RMB 10.8 million, a decrease from about RMB 90 million in 2023[30] - The company’s interest expenses on borrowings decreased to RMB 2,702 thousand from RMB 4,054 thousand in the previous year[18] - The group maintained a prudent financing and treasury policy, closely monitoring liquidity to meet funding needs[52] - As of June 30, 2024, the group had no foreign exchange contracts to hedge against currency fluctuations, and the impact of foreign exchange risk was considered minimal[59] Corporate Governance - The audit committee was established on March 10, 2023, to oversee financial reporting, internal controls, and risk management[70] - The interim financial results for the first half of 2024 were reviewed by the audit committee, which agreed with the accounting policies adopted by the company[71] - The company has adopted corporate governance practices in compliance with the Hong Kong Stock Exchange's listing rules[72] Miscellaneous - As of June 30, 2024, the group had no significant contingent liabilities apart from ongoing litigation and claims arising from normal business operations[58] - There were no significant matters related to the company's business or financial performance noted after June 30, 2024[74]

Financial Performance - In the fiscal year 2023, the company's revenue was approximately RMB 1,952.1 million, an increase of about RMB 61.5 million or 3.3% compared to RMB 1,890.7 million in the fiscal year 2022[9]. - The net profit for fiscal year 2023 was approximately RMB 46.0 million, a decrease of about RMB 19.5 million or 29.8% from the previous year, primarily due to significant increases in financial and contract asset impairments totaling approximately RMB 14.8 million[9]. - The gross profit rose from approximately RMB 206.6 million in fiscal year 2022 to about RMB 216.2 million in fiscal year 2023, representing a year-on-year growth of approximately 4.4%[17]. - The revenue from construction contracts increased by approximately RMB 62.8 million or 3.3% to about RMB 1,944.2 million in fiscal year 2023, primarily driven by a significant revenue increase of approximately RMB 58.2 million or 896.5% from specialized construction projects[18]. - Revenue from civil construction projects surged by approximately RMB 116.9 million or 13.6% to RMB 974.8 million in fiscal year 2023, largely due to the resumption of the Dongfang City New Home (Phase II) project[19]. - The revenue from municipal engineering decreased by approximately RMB 116.7 million or 15.9% to RMB 618.4 million in fiscal year 2023, mainly due to the completion of key projects[21]. - The gross profit margin improved slightly from approximately 10.9% in fiscal year 2022 to about 11.1% in fiscal year 2023, with civil construction projects' gross margin increasing to approximately 11.8%[29]. Expenses and Impairments - The company incurred listing expenses of RMB 4.0 million in fiscal year 2023 due to its successful listing on the Hong Kong Stock Exchange[9]. - Administrative expenses increased by approximately RMB 11.4 million due to inflationary pressures and investments in operational efficiency and infrastructure[9]. - Administrative expenses rose from approximately RMB 117.5 million to about RMB 129.0 million, driven by increased research and operational costs[30]. - Financial and contract asset impairment increased significantly by approximately RMB 14.8 million or 582.3% to RMB 17.4 million in fiscal year 2023[32]. Market and Industry Context - The construction industry faced challenges in 2023, with real estate development investment in China decreasing by 9.6% and new construction project areas declining by 20.4%[8]. - The company remains cautiously optimistic about future market trends and is adjusting its strategies to respond to changing conditions[13]. Strategic Focus and Future Plans - The company is focused on enhancing project management capabilities, adopting innovative technologies, and improving safety practices to boost operational efficiency and customer satisfaction[12]. - Future strategies include cautious financial management and exploring growth opportunities while maintaining a rigorous approach to operational efficiency and cost optimization[13]. - The company aims to strengthen its market position and drive sustainable long-term growth despite the challenges faced in fiscal year 2023[13]. Shareholder and Corporate Governance - The company does not recommend any final dividend for the year ending December 31, 2023[56]. - The annual general meeting is scheduled for May 28, 2024, with a suspension of share transfer registration from May 23 to May 28, 2024[58]. - The audit committee was established on March 10, 2023, to oversee financial reporting and risk management processes[53]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of the company's affairs[83]. - The company ensures that at least one-third of the board members are independent non-executive directors, in compliance with listing rules[76]. - The company provides ongoing professional development for directors to enhance their knowledge and skills, ensuring they can effectively fulfill their responsibilities[89]. Risk Management and Compliance - The board is responsible for evaluating the nature and extent of risks acceptable in achieving strategic objectives, with an effective risk management and internal control system in place[119]. - The company has adhered to all relevant laws and regulations, with no major violations reported in the fiscal year 2023[152]. Employee and Board Diversity - The gender ratio of employees, including senior management, is approximately 237:52 as of December 31, 2023, indicating a commitment to gender diversity[112]. - The company has adopted a board diversity policy, ensuring at least one female board member, with plans to potentially increase this in the next five years[108]. Transactions and Agreements - The company has entered into non-exempt continuing connected transactions under the construction service framework agreement, which requires compliance with the listing rules[170]. - The procurement framework agreement with Fangge Intelligent and Hangxiao Technology has an annual cap of RMB 160 million for the fiscal years 2023, 2024, and 2025[175]. - The company has confirmed compliance with the listing rules regarding the disclosure of non-exempt continuing connected transactions[181]. Stock Options and Remuneration - The company has adopted a stock option plan on March 10, 2023, to reward directors and eligible participants[165]. - The stock option plan allows for a total of 48 million shares to be issued, representing 10% of the company's issued share capital[188]. - The remuneration policy includes fixed salaries and variable compensation linked to company performance[100].

Financial Performance - In the fiscal year 2023, Zhongtian Construction reported revenue from construction contracts of approximately RMB 1,944.2 million, an increase of about RMB 62.8 million or 3.3% compared to RMB 1,881.4 million in fiscal year 2022[3]. - The overall gross profit margin remained relatively stable at approximately 11.1% for fiscal year 2023, compared to 10.9% in fiscal year 2022[3]. - The net profit for fiscal year 2023 decreased by approximately RMB 19.5 million compared to fiscal year 2022[4]. - Total comprehensive income for the year was RMB 45.99 million, down from RMB 65.49 million in the previous year[6]. - Basic and diluted earnings per share for the company were RMB 10.04, a decrease from RMB 17.91 in the previous year[6]. - Total revenue for the year ended December 31, 2023, was RMB 1,952,122 thousand, an increase of 3.3% from RMB 1,890,660 thousand in 2022[25]. - The company reported a pre-tax profit of RMB 45,277 thousand for 2023, down 29.8% from RMB 64,471 thousand in 2022[36]. - Basic earnings per share for 2023 were RMB 10.04, compared to RMB 17.91 in 2022, reflecting a decrease of 43.7%[36]. - The gross profit for fiscal year 2023 rose to approximately RMB 216.2 million, reflecting a year-on-year increase of about 4.4% from RMB 206.6 million in fiscal year 2022[46]. - The gross margin and net margin for fiscal year 2023 were approximately 11.1% and 2.4%, respectively[46]. Revenue Breakdown - Revenue from civil construction projects was RMB 974,816 thousand, up 13.6% from RMB 857,897 thousand in 2022[25]. - Revenue from construction contracts increased by approximately RMB 62.8 million or 3.3% to RMB 1,944.2 million in fiscal year 2023, primarily driven by a significant increase in revenue from specialized construction projects[47]. - Revenue from civil construction projects surged by approximately RMB 116.9 million or 13.6% to RMB 974.8 million, largely due to the resumption of the Dongfang City New Home Phase II project[49]. - Revenue from municipal engineering decreased by approximately RMB 116.7 million or 15.9% to RMB 618.4 million, mainly due to the completion of major projects[50]. Assets and Liabilities - Total assets as of December 31, 2023, were RMB 2,009.02 million, an increase from RMB 1,744.02 million in 2022[8]. - The company's equity attributable to owners increased to RMB 501.82 million in 2023 from RMB 349.81 million in 2022[9]. - The company reported a significant increase in contract assets, rising to RMB 1,476.03 million in 2023 from RMB 1,127.15 million in 2022[8]. - Trade receivables as of December 31, 2023, amounted to RMB 384,027 thousand, an increase from RMB 363,027 thousand in 2022[38]. - The company's current assets net value as of December 31, 2023, was approximately RMB 491.8 million, improving the current ratio from 1.24 in 2022 to 1.32 in 2023[72]. - Total debt decreased slightly from approximately RMB 140.1 million as of December 31, 2022, to RMB 116.2 million as of December 31, 2023, with a debt-to-equity ratio dropping from 39.0% to 22.7%[73]. Expenses - Administrative expenses rose to RMB 128.98 million in 2023, compared to RMB 117.55 million in 2022[6]. - Financial costs increased slightly to RMB 7.79 million in 2023 from RMB 7.41 million in 2022[6]. - The company incurred a total of RMB 727,921 thousand in cost of goods sold for the year, compared to RMB 715,675 thousand in 2022[29]. - The company's total labor and subcontracting costs increased by approximately 12.3% compared to fiscal year 2022, attributed to the labor-intensive nature of projects in the later stages of development[56]. - The company incurred listing expenses of approximately RMB 10.2 million in fiscal year 2023, up from RMB 6.2 million in fiscal year 2022[60]. - The company's research costs for 2023 were RMB 63,660 thousand, an increase from RMB 61,821 thousand in 2022[29]. Tax and Dividends - The company’s income tax expense for the year was RMB 6,857 thousand, compared to RMB 8,243 thousand in 2022[33]. - The company does not recommend declaring any final dividend for the fiscal year ended December 31, 2023[100]. - The company did not declare or pay any dividends during the year, compared to no dividends declared in 2022[34]. Other Information - The company has no significant contingent liabilities as of December 31, 2023, apart from ongoing litigation and claims arising in the normal course of business[82]. - The company has no major investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the fiscal year 2023[87]. - The company plans to utilize the remaining unutilized proceeds of RMB 18.2 million for purchasing and/or replacing construction machinery and equipment, expected to be completed by December 2024[86]. - The board of directors confirmed that the company maintained sufficient public float as required by the listing rules as of the fiscal year 2023 and up to the announcement date[98]. - The company has not identified any significant matters related to its business or financial performance after December 31, 2023[101]. - The company has not entered into any foreign exchange contracts to hedge against currency fluctuations as of December 31, 2023, and considers the foreign exchange risk to be minimal[89]. - The annual general meeting is scheduled for May 28, 2024, with a suspension of share transfer registration from May 23 to May 28, 2024[102]. - The annual performance announcement will be published on the Hong Kong Stock Exchange and the company's website, with the full annual report for the year ending December 31, 2023 to be sent to shareholders in due course[104]. - The board of directors includes the chairman and executive director Yang Zhongjie, along with other executive and independent non-executive directors[105].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 681,356 thousand, a decrease of 10.1% compared to RMB 758,279 thousand in the same period of 2022[5] - Gross profit for the same period was RMB 79,487 thousand, down 4.0% from RMB 83,111 thousand in 2022[5] - Profit before tax decreased to RMB 21,952 thousand, a decline of 20.8% from RMB 27,703 thousand in the previous year[5] - Net profit attributable to the owners of the company was RMB 18,824 thousand, down 20.5% from RMB 23,604 thousand in 2022[5] - Basic and diluted earnings per share for the period were RMB 4.47, compared to RMB 6.56 in the same period last year[5] Assets and Liabilities - Total assets as of June 30, 2023, were RMB 1,887,947 thousand, an increase from RMB 1,744,024 thousand at the end of 2022[8] - Current liabilities amounted to RMB 1,422,941 thousand, slightly up from RMB 1,404,586 thousand at the end of 2022[8] - The company's equity attributable to owners increased to RMB 485,012 thousand from RMB 359,731 thousand at the end of 2022[9] - Cash and cash equivalents decreased to RMB 71,596 thousand from RMB 151,661 thousand at the end of 2022[8] - The company reported a significant increase in contract assets to RMB 1,259,334 thousand, up from RMB 1,127,150 thousand at the end of 2022, indicating potential growth in future revenues[8] Cash Flow - Operating cash flow for the six months ended June 30, 2023, was RMB (178,362) thousand, a decrease from RMB (106,289) thousand in the same period of 2022, representing a decline of approximately 67.7%[14] - Cash flow from investment activities showed a net inflow of RMB 107,030 thousand, compared to a net outflow of RMB (240) thousand in the previous year[17] - The company’s financing activities resulted in a net cash outflow of RMB (8,733) thousand, compared to a net inflow of RMB 59,109 thousand in the same period of 2022[17] - Total cash and cash equivalents decreased to RMB 71,596 thousand at the end of June 2023, down from RMB 151,661 thousand at the beginning of the period, a reduction of approximately 52.8%[17] Revenue Breakdown - Revenue from civil construction projects was RMB 320,311,000, down 9.8% from RMB 355,068,000 in 2022[33] - Revenue from construction contracts decreased to approximately RMB 678.2 million in the first half of 2023, down RMB 76.5 million or 10.1% from RMB 754.7 million in the first half of 2022[78] - Revenue from municipal engineering fell to RMB 243.9 million, down RMB 22.2 million or 8.3% from RMB 266.1 million in the first half of 2022[82] - Revenue from foundation engineering significantly decreased by RMB 9.3 million or 55.0% to approximately RMB 7.7 million in the first half of 2023[83] - Other specialized contracting revenue increased to approximately RMB 15.0 million, up from RMB 3.4 million in the first half of 2022[85] Expenses and Costs - Financial costs increased to RMB 4,054 thousand in the first half of 2023, compared to RMB 2,436 thousand in the same period of 2022, marking an increase of approximately 66.5%[14] - Administrative expenses decreased from approximately RMB 46.2 million to approximately RMB 37.2 million in the first half of 2023, mainly due to a reduction in R&D costs by approximately RMB 5.2 million and a decrease in employee discretionary bonuses leading to a reduction in salaries and other benefits by approximately RMB 2.6 million[92] - Listing expenses for the first half of 2023 amounted to approximately RMB 11.0 million, compared to RMB 4.0 million in the same period of 2022[93] Shareholder Information - The company did not declare or pay any dividends for the six months ended June 30, 2023[51] - The authorized share capital increased to RMB 45,000,000 as of June 30, 2023, from RMB 342,000 as of December 31, 2022, representing a significant increase of 13,125%[71] - The company issued 120,000,000 new shares at a price of HKD 1.18 per share, raising approximately RMB 125,215,000, with RMB 1,061,000 allocated to share capital[72] Corporate Governance - The company has adopted and complied with the corporate governance code as per the listing rules since its listing date[132] - The company has established guidelines for employees regarding the trading of its securities, adhering to the standards set forth in the code of conduct[135] - The company has a non-competition agreement with its controlling shareholder, ZT (A), effective from March 17, 2023[138] Other Financial Metrics - The company reported a decrease in inventory by RMB 291 thousand, contrasting with a decrease of RMB 2,311 thousand in the previous year[14] - The company’s contract liabilities increased by RMB 33,307 thousand, up from RMB 7,111 thousand in the same period of 2022, indicating a growth of approximately 368.5%[14] - The total amount of unfulfilled performance obligations was RMB 1,880,885,000 as of June 30, 2023, compared to RMB 1,304,590,000 at the end of 2022[39]