[Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) During the reporting period, the company's operating revenue decreased by 6.6% year-on-year, net profit and net profit attributable to owners of the parent decreased by 21.9% and 29.3% respectively, basic earnings per share was RMB 0.05, and gross profit margin slightly increased to 10.7% | Indicator | Jan-Jun 2025 (RMB thousands) | Jan-Jun 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 5,614,375 | 6,012,233 | –6.6% | | Gross Profit | 598,678 | 601,753 | –0.5% | | Net Profit | 90,348 | 115,743 | –21.9% | | Net Profit Attributable to Owners of the Parent | 63,283 | 89,474 | –29.3% | | Gross Profit Margin | 10.7% | 10.0% | 7.0% | | Net Sales Margin | 1.6% | 1.9% | –15.8% | | Basic Earnings Per Share | 0.05 | 0.07 | –28.6% | [Interim Consolidated Financial Statements](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the unaudited consolidated balance sheet and income statement for the six months ended June 30, 2025, along with comparative data for the corresponding period or year-end of 2024, illustrating the Group's financial position and operating results [Interim Consolidated Balance Sheet](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E5%90%88%E4%BD%B5%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) As of June 30, 2025, the Group's total assets increased to RMB 25,143,796 thousand, with both current and non-current assets growing; total liabilities also increased, with both current and non-current liabilities rising; total equity attributable to owners of the parent amounted to RMB 2,840,790 thousand | Indicator | Jun 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Assets** | | | | Total Current Assets | 17,850,872 | 17,189,428 | | Total Non-current Assets | 7,292,924 | 6,934,733 | | **Total Assets** | **25,143,796** | **24,124,161** | | **Liabilities** | | | | Total Current Liabilities | 17,873,952 | 17,501,970 | | Total Non-current Liabilities | 3,866,496 | 3,278,835 | | **Total Liabilities** | **21,740,448** | **20,780,805** | | **Shareholders' Equity** | | | | Total Equity Attributable to Owners of the Parent | 2,840,790 | 2,764,218 | | Non-controlling Interests | 562,558 | 579,138 | | **Total Equity** | **3,403,348** | **3,343,356** | | **Total Liabilities and Shareholders' Equity** | **25,143,796** | **24,124,161** | [Interim Consolidated Income Statement](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E5%90%88%E4%BD%B5%E5%88%A9%E6%BD%A4%E8%A1%A8) For the six months ended June 30, 2025, the Group's operating revenue was RMB 5,614,375 thousand, a year-on-year decrease of 6.6%; net profit was RMB 90,348 thousand, a year-on-year decrease of 21.9%; and net profit attributable to owners of the parent was RMB 63,283 thousand, a year-on-year decrease of 29.3% | Indicator | Jan-Jun 2025 (RMB thousands) | Jan-Jun 2024 (RMB thousands) | | :--- | :--- | :--- | | Operating Revenue | 5,614,375 | 6,012,233 | | Cost of Sales | 5,015,697 | 5,410,480 | | Operating Profit | 103,649 | 113,632 | | Total Profit | 103,534 | 113,455 | | Income Tax Expense | 13,186 | –2,288 | | Net Profit | 90,348 | 115,743 | | Net Profit Attributable to Owners of the Parent | 63,283 | 89,474 | | Basic Earnings Per Share (RMB/share) | 0.05 | 0.07 | [Notes to the Financial Statements](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section details the basis of financial statement preparation, the composition and changes of key accounting items (such as accounts receivable, contract assets, accounts payable, employee benefits, taxes and fees), and specifics of operating revenue, costs, expenses, and income tax, along with applicable tax incentives [Company Information](index=6&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) Shanxi Installation Group Co., Ltd. was established in November 1989, restructured into a joint-stock company in 2021, and listed on the Main Board of the Hong Kong Stock Exchange (stock code: 2520) in November 2023; its primary business is construction, including professional industrial engineering, professional supporting engineering, other engineering contracting, and non-engineering businesses, with its ultimate controlling party being the State-owned Assets Supervision and Administration Commission of Shanxi Provincial People's Government - The company was listed on the Main Board of the Hong Kong Stock Exchange in November 2023, stock code **02520**[15](index=15&type=chunk) - The company's main business is construction, including professional industrial engineering, professional supporting engineering, other engineering contracting, and non-engineering businesses[15](index=15&type=chunk) - The ultimate controlling party is the State-owned Assets Supervision and Administration Commission of Shanxi Provincial People's Government[15](index=15&type=chunk) [Basis of Preparation of Financial Statements](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E7%9A%84%E7%B7%A8%E8%A3%BD%E5%9F%BA%E7%A4%8E) The financial statements are prepared in accordance with China Accounting Standards for Business Enterprises, complying with disclosure requirements of the China Securities Regulatory Commission and the Hong Kong Stock Exchange, on a going concern basis, using accrual accounting and historical cost measurement, with provisions for asset impairment - Financial statements are prepared in accordance with China Accounting Standards for Business Enterprises and comply with disclosure requirements of the China Securities Regulatory Commission and the Hong Kong Stock Exchange[17](index=17&type=chunk) - The statements are prepared on a going concern basis, using accrual accounting and historical cost measurement[18](index=18&type=chunk)[19](index=19&type=chunk) [Accounts Receivable](index=7&type=section&id=%E6%87%89%E6%94%B6%E8%B3%87%E6%AC%BE) As of June 30, 2025, the carrying value of accounts receivable increased to RMB 6,588,072 thousand from RMB 5,960,673 thousand on December 31, 2024; total impairment provision for bad debts was RMB 470,597 thousand, with an expected credit loss rate of 6.67%; accounts receivable within 1 year constituted the largest portion, but the loss rate for accounts over 5 years old was 100% | Indicator | Jun 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Carrying Value of Accounts Receivable | 6,588,072 | 5,960,673 | | Total Impairment Provision for Bad Debts | 470,597 | 443,672 | | Total Expected Credit Loss Rate | 6.67% | 6.93% | | Ageing | Jun 30, 2025 Carrying Amount (RMB thousands) | Jun 30, 2025 Impairment Provision (RMB thousands) | Jun 30, 2025 Expected Credit Loss Rate (%) | | :--- | :--- | :--- | :--- | | Within 1 year | 3,742,934 | 51,278 | 1.37 | | Over 5 years | 71,614 | 71,614 | 100.00 | [Contract Assets](index=8&type=section&id=%E5%90%88%E5%90%8C%E8%B3%87%E7%94%A2) As of June 30, 2025, total carrying value of contract assets increased to RMB 6,862,155 thousand from RMB 6,425,844 thousand on December 31, 2024, primarily comprising contract assets from construction contracts and retention money receivable | Item | Jun 30, 2025 Carrying Value (RMB thousands) | Dec 31, 2024 Carrying Value (RMB thousands) | | :--- | :--- | :--- | | Contract Assets from Construction Contracts | 7,388,956 | 6,766,924 | | Retention Money Receivable | 897,589 | 882,229 | | Receivables under Service Concession Arrangements | 3,469,631 | 3,357,395 | | Total | 6,862,155 | 6,425,844 | [Accounts Payable](index=9&type=section&id=%E6%87%89%E4%BB%98%E8%B3%87%E6%AC%BE) As of June 30, 2025, total accounts payable increased to RMB 10,131,027 thousand from RMB 9,492,423 thousand on December 31, 2024, with accounts payable within 1 year being the largest portion, while amounts for 1-2 years and over 3 years also significantly increased | Ageing | Jun 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 4,961,438 | 6,451,451 | | 1–2 years | 2,993,790 | 1,716,576 | | 2–3 years | 1,146,104 | 675,729 | | Over 3 years | 1,029,695 | 648,667 | | Total | 10,131,027 | 9,492,423 | [Employee Benefits Payable](index=9&type=section&id=%E6%87%89%E4%BB%98%E8%81%B7%E5%B7%A5%E8%96%AA%E9%85%AC) As of June 30, 2025, the closing balance of employee benefits payable was RMB 70,775 thousand, a decrease from RMB 82,075 thousand at the end of the previous year, with current period additions of RMB 325,650 thousand and reductions of RMB 336,950 thousand | Item | Balance at Previous Year-End (RMB thousands) | Current Period Additions (RMB thousands) | Current Period Reductions (RMB thousands) | Balance at Period-End (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Short-term Employee Benefits | 78,536 | 282,167 | 293,596 | 67,107 | | — Defined Contribution Plans Post-employment Benefits | 319 | 41,693 | 41,564 | 448 | | Termination Benefits | 3,220 | 1,790 | 1,790 | 3,220 | | Total | 82,075 | 325,650 | 336,950 | 70,775 | [Taxes Payable](index=10&type=section&id=%E6%87%89%E4%BA%A4%E7%A8%85%E8%B2%BB) As of June 30, 2025, total taxes payable decreased to RMB 51,667 thousand from RMB 57,554 thousand on December 31, 2024, with corporate income tax and urban maintenance and construction tax decreasing, while VAT and individual income tax increased | Tax Item | Jun 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Corporate Income Tax | 15,347 | 26,497 | | Value-Added Tax | 16,432 | 11,532 | | Individual Income Tax | 13,325 | 12,490 | | Urban Maintenance and Construction Tax | 2,125 | 2,293 | | Total | 51,667 | 57,554 | [Other Payables](index=10&type=section&id=%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE) As of June 30, 2025, total other payables decreased to RMB 522,992 thousand from RMB 583,394 thousand on December 31, 2024, with dividends payable remaining unchanged, while other payables (such as deposits received, amounts due to related parties, and amounts due to staff) varied | Item | Jun 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Dividends Payable | 71,678 | 71,678 | | Other Payables | 451,314 | 511,716 | | Total | 522,992 | 583,394 | [Operating Revenue and Cost of Sales](index=11&type=section&id=%E7%87%9F%E6%A5%AD%E6%94%B6%E5%85%A5%E5%92%8C%E7%87%9F%E6%A5%AD%E6%88%90%E6%9C%AC) For January-June 2025, the Group's operating revenue was RMB 5,614,375 thousand and cost of sales was RMB 5,015,697 thousand, both decreasing year-on-year; main business revenue accounted for the majority, with professional industrial engineering revenue being the highest, but professional supporting engineering and other engineering revenues significantly decreased year-on-year; revenue recognition primarily occurs over time | Item | Jan-Jun 2025 Revenue (RMB thousands) | Jan-Jun 2025 Cost (RMB thousands) | Jan-Jun 2024 Revenue (RMB thousands) | Jan-Jun 2024 Cost (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 5,588,041 | 5,005,369 | 6,000,273 | 5,408,819 | | Other Businesses | 26,334 | 10,328 | 11,960 | 1,661 | | Total | 5,614,375 | 5,015,697 | 6,012,233 | 5,410,480 | | Main Type | Jan-Jun 2025 Revenue (RMB thousands) | Jan-Jun 2024 Revenue (RMB thousands) | | :--- | :--- | :--- | | Professional Industrial Engineering | 4,069,822 | 3,996,675 | | Professional Supporting Engineering | 534,251 | 749,831 | | Other Engineering | 499,658 | 753,022 | | Non-engineering Business | 484,310 | 500,745 | - Revenue recognition primarily occurs over time, amounting to **RMB 5,103,731 thousand** for January-June 2025[39](index=39&type=chunk) [Taxes and Surcharges](index=12&type=section&id=%E7%A8%85%E9%87%91%E5%8F%8A%E9%99%84%E5%8A%A0) For January-June 2025, total taxes and surcharges were RMB 14,559 thousand, an 11.6% increase year-on-year, primarily due to higher stamp duty and urban maintenance and construction tax | Item | Jan-Jun 2025 (RMB thousands) | Jan-Jun 2024 (RMB thousands) | | :--- | :--- | :--- | | Property Tax | 2,182 | 3,552 | | Stamp Duty | 3,666 | 2,481 | | Urban Maintenance and Construction Tax | 4,423 | 3,430 | | Education Surcharge | 3,040 | 2,776 | | Total | 14,559 | 13,047 | [Finance Costs](index=13&type=section&id=%E8%B2%A1%E5%8B%99%E8%B2%BB%E7%94%A8) For January-June 2025, finance costs were RMB 38,729 thousand, a significant 37.9% decrease year-on-year, primarily due to reduced interest expenses on bank borrowings | Item | Jan-Jun 2025 (RMB thousands) | Jan-Jun 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest Expense | 173,971 | 197,531 | | Less: Interest Capitalized | 1,455 | 10,453 | | Bank Deposit Interest Income | 8,685 | 9,553 | | PPP Project Interest Income | 127,771 | 114,864 | | Total | 38,729 | 62,394 | - Finance costs decreased by **37.9%** year-on-year, primarily due to reduced interest expenses on bank borrowings[94](index=94&type=chunk) [Income Tax Expense](index=13&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) For January-June 2025, income tax expense was RMB 13,186 thousand, a substantial increase from RMB -2,288 thousand in the prior year, primarily due to higher current income tax expense | Item | Jan-Jun 2025 (RMB thousands) | Jan-Jun 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Income Tax Calculated According to Tax Laws and Regulations | 18,123 | 4,418 | | Deferred Income Tax Expense | –4,937 | –6,706 | | Total | 13,186 | –2,288 | - Income tax expense increased by **RMB 15,474 thousand** year-on-year, primarily due to higher current income tax expense[102](index=102&type=chunk) [Tax Incentives and Approvals](index=14&type=section&id=%E7%A8%85%E6%94%B6%E5%84%AA%E6%83%A0%E5%8F%8A%E6%89%B9%E6%96%87) The company and several subsidiaries (e.g., Shanxi Shan'an Lantian Energy Saving Technology, Gaoping Xinyangtian Photovoltaic Power Generation) obtained High-Tech Enterprise certificates, enjoying a 15% preferential corporate income tax rate; additionally, the company benefits from a 100% super deduction for R&D expenses (200% for intangible asset amortization) - The company and several subsidiaries obtained High-Tech Enterprise certificates, enjoying a **15%** preferential corporate income tax rate[47](index=47&type=chunk) - The company enjoys a super deduction for R&D expenses at **100%** (intangible asset amortization at **200%**)[48](index=48&type=chunk) [Dividends](index=15&type=section&id=%E8%82%A1%E6%81%AF) For the six months ended June 30, 2025, the company had no proposed interim dividends - For the six months ended June 30, 2025, no interim dividends were proposed[49](index=49&type=chunk) [Earnings Per Share](index=15&type=section&id=%E6%AF%8F%E8%82%A1%E6%94%B6%E7%9B%8A) For January-June 2025, both basic and diluted earnings per share were RMB 0.05, a decrease from RMB 0.07 in the prior year | Item | Jan-Jun 2025 | Jan-Jun 2024 | | :--- | :--- | :--- | | Consolidated Net Profit Attributable to Owners of Ordinary Shares of the Parent (thousands) | 63,283 | 89,474 | | Weighted Average Number of Ordinary Shares Outstanding of the Parent (thousands) | 1,373,486 | 1,373,486 | | Basic Earnings Per Share | 0.05 | 0.07 | [Applicable Tax Incentives for Small and Micro Enterprises](index=15&type=section&id=%E9%81%A9%E7%94%A8%E5%B0%8F%E5%BE%AE%E4%BC%81%E6%A5%AD%E7%A8%85%E6%94%B6%E5%84%AA%E6%83%A0) Some of the company's subsidiaries (e.g., Chongqing Shan'an Construction Engineering Co., Ltd.) are eligible for tax incentives for small and micro enterprises, calculating taxable income at 25% and paying corporate income tax at a 20% rate - Some subsidiaries are eligible for tax incentives for small and micro enterprises, calculating taxable income at **25%** and paying corporate income tax at a **20%** rate[51](index=51&type=chunk) [Segment Information](index=16&type=section&id=%E5%88%86%E9%83%A8%E4%BF%A1%E6%81%AF) The Group's operating businesses are divided into construction engineering contracting and non-engineering segments based on internal management requirements; this section discloses each segment's operating revenue, costs, profit, assets, and liabilities, noting the company's low reliance on any single customer [Segment Profit or Loss, Assets and Liabilities](index=16&type=section&id=%E5%88%86%E9%83%A8%E5%88%A9%E6%BD%A4%E6%88%96%E8%99%A7%E6%90%8D%E3%80%81%E8%B3%87%E7%94%A2%E5%8F%8A%E8%B2%A0%E5%82%B5) In H1 2025, the construction engineering contracting segment reported operating revenue of RMB 5,243,585 thousand and operating profit of RMB 82,458 thousand; the non-engineering segment reported operating revenue of RMB 596,664 thousand and operating profit of RMB 109,953 thousand, with construction engineering segment's revenue and profit decreasing, while non-engineering segment's profit increased | Segment | Jan-Jun 2025 Operating Revenue (RMB thousands) | Jan-Jun 2025 Operating Profit (RMB thousands) | Jan-Jun 2024 Operating Revenue (RMB thousands) | Jan-Jun 2024 Operating Profit (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Construction Engineering Contracting Segment | 5,243,585 | 82,458 | 5,590,701 | 12,600 | | Non-engineering Segment | 596,664 | 109,953 | 595,887 | 100,089 | | Total | 5,614,375 | 103,649 | 6,012,233 | 113,632 | | Segment | Jun 30, 2025 Total Assets (RMB thousands) | Jun 30, 2025 Total Liabilities (RMB thousands) | Dec 31, 2024 Total Assets (RMB thousands) | Dec 31, 2024 Total Liabilities (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Construction Engineering Contracting Segment | 20,614,809 | 18,338,065 | 21,111,357 | 18,964,806 | | Non-engineering Segment | 8,454,332 | 5,908,412 | 8,640,990 | 6,207,312 | | Total | 25,143,796 | 21,740,448 | 25,786,513 | 22,525,394 | [Reliance on Major Customers](index=17&type=section&id=%E5%B0%8D%E4%B8%BB%E8%A6%81%E5%AE%A2%E6%88%B6%E7%9A%84%E4%BE%9D%E8%B3%B4%E7%A8%8B%E5%BA%A6) As of June 30, 2025, no single customer accounted for more than 10% of total revenue, indicating a diversified customer base and low reliance on any single customer - As of June 30, 2025, no single customer accounted for **10%** or more of total revenue[56](index=56&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section comprehensively reviews the Group's H1 2025 operating performance, analyzes market performance, strategic layout, and future development directions of each business segment, provides in-depth interpretation of financial conditions, and discusses policy, market, environmental, and compliance risks, along with the talent development system [Overall Performance Summary](index=18&type=section&id=%E6%95%B4%E9%AB%94%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A6%81) In H1 2025, the Group focused on its 'Quality Empowerment Year' goal, steadily enhancing comprehensive strength, deepening reforms, executing effective market expansion strategies, and improving internal controls, achieving operating revenue of RMB 5,614,375 thousand and profit of RMB 90,348 thousand; new contract value in the new energy sector exceeded RMB 8 billion, with successful implementation of several major projects - In H1 2025, the Group focused on its "Quality Empowerment Year" goal, achieving operating revenue of **RMB 5,614,375 thousand** and profit of **RMB 90,348 thousand**[57](index=57&type=chunk) - New contract value in the new energy sector exceeded **RMB 8 billion**, with successful implementation of Shanxi Airport New Energy Zero-Carbon Airport Project and Changzhi High-tech Zone Green Power Direct Supply Project, among others[57](index=57&type=chunk) [Business Operations Analysis](index=18&type=section&id=%E6%A5%AD%E5%8B%99%E9%81%8B%E7%90%86%E5%88%86%E6%9E%90) The Group made progress in professional industrial engineering, professional supporting engineering, and overseas businesses; professional industrial engineering focused on new energy and chemical sectors, securing several major new contracts; professional supporting engineering actively expanded into clean heating, solid waste disposal, distributed photovoltaic, and water environment governance; overseas business continued to deepen presence in Asia and Africa, with new contract value exceeding RMB 800 million, and expanded cooperation with internationally renowned enterprises [China Professional Industrial Engineering](index=22&type=section&id=%E4%B8%AD%E5%9C%8B%E5%B0%88%E6%A5%AD%E5%B7%A5%E6%A5%AD%E5%B7%A5%E7%A8%8B) China's professional industrial engineering market experienced robust growth, driven by strong development in the new energy and chemical industries; the Group actively participated in wind power, photovoltaic, energy storage, and hydrogen energy projects, and made progress in coal chemical, natural gas chemical, petrochemical, and fine chemical sectors, with the petrochemical industry engineering market size expected to continue expanding [New Energy Industry Engineering](index=22&type=section&id=%E6%96%B0%E8%83%BD%E6%BA%90%E7%94%A2%E6%A5%AD%E5%B7%A5%E7%A8%8B) In H1 2025, China's new energy industry (wind, solar, storage, hydrogen, vehicles) rapidly developed; national wind power added 51.39 GW of grid-connected capacity, with cumulative capacity reaching 573 GW, a 22.7% year-on-year increase; photovoltaic added 212 GW of grid-connected capacity, with cumulative installed capacity of approximately 1,100 GW, a 54.1% year-on-year increase; new energy storage installed capacity grew rapidly, and Shanxi Province designated hydrogen energy as a leading future industry, planning to accelerate wind and photovoltaic project construction - In H1 2025, national wind power added **51.39 GW** of grid-connected capacity, with cumulative capacity reaching **573 GW**, a **22.7%** year-on-year increase[65](index=65&type=chunk) - In H1 2025, national photovoltaic added **212 GW** of grid-connected capacity, with cumulative installed capacity of approximately **1,100 GW**, a **54.1%** year-on-year increase[65](index=65&type=chunk) - Shanxi Province designated hydrogen energy as one of the **7** leading future industries, planning to achieve over **50%** new energy and clean energy installed capacity by 2025[68](index=68&type=chunk) - On January 1, 2025, China's first Energy Law officially came into effect, explicitly including hydrogen energy and green certificates, supporting the development of new energy storage[69](index=69&type=chunk) [Chemical Industry Engineering](index=24&type=section&id=%E5%8C%96%E5%B7%A5%E7%94%A2%E6%A5%AD%E5%B7%A5%E7%A8%8B) China's chemical industry engineering encompasses coal chemical, natural gas chemical, petrochemical, and fine chemical sectors; coal chemical capacity continued to expand in 2024, with total methanol output reaching 70 million tons and extending to high-end products; natural gas chemical and petrochemical industries are transitioning towards high-end refinement and low-carbon sustainable development; fine chemicals are accelerating deployment in high-performance materials; by 2027, China's petrochemical industry engineering market size is projected to reach RMB 2,688.4 billion, with Shanxi Province reaching RMB 103.1 billion - In 2024, China's coal chemical total capacity continued to expand, with total methanol output reaching **70 million tons**, accounting for over **50%** of the global total[70](index=70&type=chunk) - The petrochemical industry is shifting from bulk commodity capacity expansion to high-end refinement, with refining-chemical integration and downstream industrial chain extension as core pathways[71](index=71&type=chunk) - By 2027, China's petrochemical industry engineering market size is projected to reach **RMB 2,688.4 billion**, with Shanxi Province reaching **RMB 103.1 billion**[71](index=71&type=chunk) [China Professional Supporting Engineering](index=26&type=section&id=%E4%B8%AD%E5%9C%8B%E5%B0%88%E6%A5%AD%E9%85%8D%E5%A5%97%E5%B7%A5%E7%A8%8B) China's professional supporting engineering market continues to grow, driven by urbanization and sustained government investment in infrastructure; Shanxi Province faces significant development potential in clean heating, solid waste disposal, distributed photovoltaic, and water environment governance, with accelerating policy support and project construction [Clean Heating](index=26&type=section&id=%E6%B8%85%E6%BD%94%E4%BE%9B%E7%86%B1) Urbanization drives expanding heating market demand, with clean energy heating, industrial waste heat centralized heating, smart heating, and pipeline network upgrades being key future development areas for the heating industry, offering significant economic and environmental benefits - Urbanization drives heating demand, with clean energy heating, industrial waste heat centralized heating, smart heating, and pipeline network upgrades as key future development areas[73](index=73&type=chunk) [Solid Waste Disposal](index=27&type=section&id=%E5%9B%BA%E5%BB%A2%E8%99%95%E7%BD%AE) China's annual construction waste generation exceeds 2 billion tons, with a recycling rate of only 10%-30%, significantly lower than developed countries; the Ministry of Housing and Urban-Rural Development aims for over 50% recycling rate by 2027; with improved legal standards and technological breakthroughs, construction waste recycling will enter a period of rapid, large-scale development, alongside the rapid growth of new solid waste disposal methods - China's annual construction waste generation exceeds **2 billion tons**, with a recycling rate of only **10%-30%**[74](index=74&type=chunk) - The Ministry of Housing and Urban-Rural Development aims for the average recycling rate of construction waste in prefecture-level and above cities nationwide to reach over **50%** by 2027[74](index=74&type=chunk) [Distributed Photovoltaic](index=27&type=section&id=%E5%88%86%E4%BD%88%E5%BC%8F%E5%85%89%E4%BC%8F) Developing renewable energy is a crucial global strategy for energy transition and climate change; the National Energy Administration issued the 'Measures for the Administration of Distributed Photovoltaic Power Generation Development and Construction' to regulate and promote high-quality distributed photovoltaic development; Shanxi Province plans to reach approximately 10 GW of total installed capacity for distributed renewable energy by 2025 - The National Energy Administration issued the "Measures for the Administration of Distributed Photovoltaic Power Generation Development and Construction" to promote high-quality development[76](index=76&type=chunk) - Shanxi Province plans to reach approximately **10 GW** of total installed capacity for distributed renewable energy by 2025[76](index=76&type=chunk) [Water Environment Governance](index=28&type=section&id=%E6%B0%B4%E7%92%B0%E5%A2%83%E6%B2%BB%E7%90%86) The General Office of the CPC Central Committee and the General Office of the State Council issued 'Opinions on Comprehensively Advancing River Protection and Governance,' aiming by 2035 for a complete flood control and disaster reduction system, enhanced water supply security, and overall improvement in ecological environmental quality; Shanxi Province also plans to construct 50 township-level and 650 village-level standardized drinking water sources by 2025, indicating immense future potential in urban and rural water supply, watershed management, industrial wastewater treatment, and reclaimed water reuse projects - The "Opinions on Comprehensively Advancing River Protection and Governance" aim to achieve comprehensive improvements in flood control, water supply security, and ecological environment by **2035**[77](index=77&type=chunk) - Shanxi Province plans to construct **50** township-level and **650** village-level standardized drinking water sources by 2025[77](index=77&type=chunk) [Overseas Construction Market](index=29&type=section&id=%E6%B5%B7%E5%A4%96%E5%BB%BA%E7%AF%89%E5%B8%82%E5%A0%B4) In H1 2025, China's overseas contracted engineering business completed operating revenue of RMB 561.21 billion, a 9.3% year-on-year increase, with new contract value of RMB 933.19 billion, a 13.7% increase; despite high global investment risks, Chinese enterprises enhanced their international influence by adjusting strategies, optimizing investment structures, and seizing green energy transition and digital transformation trends - In H1 2025, China's overseas contracted engineering business completed operating revenue of **RMB 561.21 billion**, a **9.3%** year-on-year increase[78](index=78&type=chunk) - New contract value increased by **13.7%** to **RMB 933.19 billion**[78](index=78&type=chunk) - Chinese enterprises are enhancing international influence by adjusting strategies, optimizing investment structures, and seizing green energy transition and digital transformation trends[79](index=79&type=chunk) [Financial Performance Analysis](index=30&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E5%88%86%E6%9E%90) In H1 2025, the Group's operating revenue decreased by 6.6% year-on-year, mainly due to reduced revenue from professional supporting engineering and other engineering; cost of sales decreased in line with revenue; gross profit margin slightly increased to 10.7%; various expenses (selling, administrative, R&D) showed changes, finance costs significantly decreased, and net profit decreased by 21.9% year-on-year [Operating Revenue](index=30&type=section&id=%E7%87%9F%E6%A5%AD%E6%94%B6%E5%85%A5) H1 2025 operating revenue was RMB 5,614,375 thousand, a 6.6% year-on-year decrease, primarily due to reduced revenue from professional supporting engineering (-28.8%) and other engineering (-33.6%); professional industrial engineering revenue slightly increased by 1.8%, while non-engineering business revenue decreased by 3.3% | Main Type | Jan-Jun 2025 (RMB thousands) | Jan-Jun 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 5,614,375 | 6,012,233 | –397,858 | –6.6% | | Professional Industrial Engineering | 4,069,822 | 3,996,675 | 73,147 | 1.8% | | Professional Supporting Engineering | 534,251 | 749,831 | –215,580 | –28.8% | | Other Engineering | 499,658 | 753,022 | –253,364 | –33.6% | | Non-engineering Business | 484,310 | 500,745 | –16,435 | –3.3% | [Cost of Sales](index=32&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) H1 2025 cost of sales was RMB 5,015,697 thousand, a 7.3% year-on-year decrease, primarily corresponding to the reduction in operating revenue - H1 2025 cost of sales was **RMB 5,015,697 thousand**, a **7.3%** year-on-year decrease, primarily due to reduced revenue[88](index=88&type=chunk) [Gross Profit and Gross Profit Margin](index=32&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) H1 2025 gross profit was RMB 598,678 thousand, a slight 0.5% year-on-year decrease; gross profit margin was 10.7%, an increase from 10.0% in the prior year, mainly due to improved gross profit margins in professional supporting engineering and other engineering | Indicator | Jan-Jun 2025 (RMB thousands) | Jan-Jun 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 598,678 | 601,753 | –0.5% | | Gross Profit Margin | 10.7% | 10.0% | 7.0% | - Gross profit margin increased primarily due to improved gross profit margins in professional supporting engineering and other engineering[89](index=89&type=chunk) [Taxes and Surcharges](index=32&type=section&id=%E7%A8%85%E9%87%91%E5%8F%8A%E9%99%84%E5%8A%A0) H1 2025 taxes and surcharges were RMB 14,559 thousand, an 11.6% year-on-year increase, primarily due to higher stamp duty and urban maintenance and construction tax - H1 2025 taxes and surcharges were **RMB 14,559 thousand**, an **11.6%** year-on-year increase, primarily due to higher stamp duty and urban maintenance and construction tax[90](index=90&type=chunk) [Selling Expenses](index=32&type=section&id=%E9%8A%B7%E5%94%AE%E8%B2%BB%E7%94%A8) H1 2025 selling expenses were RMB 650 thousand, a slight 1.1% year-on-year increase - H1 2025 selling expenses were **RMB 650 thousand**, a slight **1.1%** year-on-year increase[91](index=91&type=chunk) [Administrative Expenses](index=33&type=section&id=%E7%AE%A1%E7%90%86%E8%B2%BB%E7%94%A8) H1 2025 administrative expenses were RMB 230,110 thousand, a 2.4% year-on-year increase, primarily due to higher employee benefits expenses - H1 2025 administrative expenses were **RMB 230,110 thousand**, a **2.4%** year-on-year increase, primarily due to higher employee benefits expenses[92](index=92&type=chunk) [Research and Development Expenses](index=33&type=section&id=%E7%A0%94%E7%99%BC%E8%B2%BB%E7%94%A8) H1 2025 research and development expenses were RMB 172,876 thousand, a substantial 27.6% year-on-year increase, primarily due to a higher number of R&D projects and increased investment - H1 2025 research and development expenses were **RMB 172,876 thousand**, a **27.6%** year-on-year increase, primarily due to a higher number of R&D projects and increased investment[93](index=93&type=chunk) [Finance Costs](index=33&type=section&id=%E8%B2%A1%E5%8B%99%E8%B2%BB%E7%94%A8) H1 2025 finance costs were RMB 38,729 thousand, a 37.9% year-on-year decrease, primarily due to reduced interest expenses on bank borrowings - H1 2025 finance costs were **RMB 38,729 thousand**, a **37.9%** year-on-year decrease, primarily due to reduced interest expenses on bank borrowings[94](index=94&type=chunk) [Other Income](index=33&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A) H1 2025 other income was RMB 3,033 thousand, a 17.8% year-on-year decrease, mainly comprising government grants and individual income tax handling fee refunds - H1 2025 other income was **RMB 3,033 thousand**, a **17.8%** year-on-year decrease[95](index=95&type=chunk) [Investment Income](index=33&type=section&id=%E6%8A%95%E8%B3%87%E6%94%B6%E7%9B%8A) H1 2025 investment income was RMB -2,228 thousand, a decrease of RMB 1,523 thousand from RMB -705 thousand in the prior year, primarily due to a reduced share of profits from associates - H1 2025 investment income was **RMB -2,228 thousand**, a year-on-year decrease of **RMB 1,523 thousand**, primarily due to a reduced share of profits from associates[96](index=96&type=chunk) [Fair Value Change Income](index=34&type=section&id=%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%AE%8A%E5%8B%95%E6%94%B6%E7%9B%8A) H1 2025 fair value change income was RMB 1,025 thousand, an increase of RMB 1,549 thousand from RMB -524 thousand in the prior year, primarily due to the revaluation gain on investment properties - H1 2025 fair value change income was **RMB 1,025 thousand**, a year-on-year increase of **RMB 1,549 thousand**, primarily due to the revaluation gain on investment properties[97](index=97&type=chunk) [Credit Impairment Losses](index=34&type=section&id=%E4%BF%A1%E7%94%A8%E6%B8%9B%E5%80%BC%E6%90%8D%E5%A4%B1) H1 2025 credit impairment losses were RMB -23,946 thousand, a decrease of RMB 10,752 thousand from RMB -34,698 thousand in the prior year, reflecting changes in expected credit loss provisions - H1 2025 credit impairment losses were **RMB -23,946 thousand**, a year-on-year decrease of **RMB 10,752 thousand**[98](index=98&type=chunk) [Asset Impairment Losses](index=34&type=section&id=%E8%B3%87%E7%94%A2%E6%B8%9B%E5%80%BC%E6%90%8D%E5%A4%B1) H1 2025 asset impairment losses were RMB -16,424 thousand, a decrease of RMB 6,116 thousand from RMB -22,540 thousand in the prior year - H1 2025 asset impairment losses were **RMB -16,424 thousand**, a year-on-year decrease of **RMB 6,116 thousand**[99](index=99&type=chunk) [Total Profit](index=34&type=section&id=%E5%88%A9%E6%BD%A4%E7%B8%BD%E9%A1%8D) H1 2025 total profit was RMB 103,534 thousand, an 8.7% year-on-year decrease, primarily due to reduced construction engineering revenue - H1 2025 total profit was **RMB 103,534 thousand**, an **8.7%** year-on-year decrease, primarily due to reduced construction engineering revenue[100](index=100&type=chunk) [Income Tax Expense](index=34&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) H1 2025 income tax expense was RMB 13,186 thousand, an increase of RMB 15,474 thousand from RMB -2,288 thousand in the prior year, primarily due to higher current income tax expense - H1 2025 income tax expense was **RMB 13,186 thousand**, a year-on-year increase of **RMB 15,474 thousand**, primarily due to higher current income tax expense[102](index=102&type=chunk) [Net Profit](index=35&type=section&id=%E6%B7%A8%E5%88%A9%E6%BD%A4) H1 2025 net profit was RMB 90,348 thousand, a 21.9% year-on-year decrease - H1 2025 net profit was **RMB 90,348 thousand**, a **21.9%** year-on-year decrease[103](index=103&type=chunk) [Total Comprehensive Income Attributable to Owners of the Parent](index=35&type=section&id=%E6%AD%B8%E5%B1%AC%E6%96%BC%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%B1%E7%9A%84%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E7%B8%BD%E9%A1%8D) H1 2025 total comprehensive income attributable to owners of the parent was RMB 64,586 thousand, a year-on-year decrease of RMB 20,656 thousand - H1 2025 total comprehensive income attributable to owners of the parent was **RMB 64,586 thousand**, a year-on-year decrease of **RMB 20,656 thousand**[104](index=104&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E8%88%87%E8%B3%87%E9%87%91%E4%BE%86%E6%BA%90) As of June 30, 2025, the Group's net current assets were RMB -23,080 thousand, with a current ratio of 1.0; cash and bank balances were approximately RMB 2,240,848 thousand; total borrowings increased to RMB 6,282,674 thousand, primarily to supplement cash for daily operating activities; the Board believes the Group has sufficient working capital and has secured funding support commitments from its controlling shareholder, Shanxi Construction Investment | Indicator | Jun 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Current Assets | –23,080 | –312,542 | | Current Ratio | 1.0 | 1.0 | | Cash and Bank Balances | 2,240,848 | 2,626,837 | | Total Borrowings | 6,282,674 | 6,118,923 | - Controlling shareholder Shanxi Construction Investment committed to providing continuous financial support for the Group's operations[106](index=106&type=chunk) [Capital Expenditure](index=36&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) As of June 30, 2025, the Group's total contracted but not yet incurred capital expenditure was RMB 2,127,303 thousand, a significant increase from December 31, 2024, primarily related to engineering and equity investments - As of June 30, 2025, total contracted but not yet incurred capital expenditure was **RMB 2,127,303 thousand**, an increase from December 31, 2024[107](index=107&type=chunk) [Capital Gearing Ratio and Quick Ratio](index=36&type=section&id=%E8%B3%87%E6%9C%AC%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87%E5%8F%8A%E9%80%9F%E5%8B%95%E6%AF%94%E7%8E%87) As of June 30, 2025, the capital gearing ratio was 55.92%, an increase from 53.96% on December 31, 2024, while the quick ratio remained at 1.0 | Indicator | Jun 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Capital Gearing Ratio | 55.92% | 53.96% | | Quick Ratio | 1.0 | 1.0 | [Contingent Liabilities](index=36&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[109](index=109&type=chunk) [Long-term Equity Investments](index=36&type=section&id=%E9%95%B7%E6%9C%9F%E8%82%A1%E6%AC%8A%E6%8A%95%E8%B3%87) As of June 30, 2025, long-term equity investments were RMB 266,779 thousand, a 26.9% increase from December 31, 2024, primarily due to increased investments in associates; no single investment accounted for 5% or more of total assets - As of June 30, 2025, long-term equity investments were **RMB 266,779 thousand**, a **26.9%** year-on-year increase, primarily due to increased investments in associates[110](index=110&type=chunk) [Major Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=36&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E4%BC%81%E6%A5%AD%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD) As of June 30, 2025, the Group had not undertaken any major acquisitions or disposals - As of June 30, 2025, the Group had not undertaken any major acquisitions or disposals[112](index=112&type=chunk) [Discussion and Analysis of Future Development](index=37&type=section&id=%E6%9C%AA%E4%BE%86%E7%99%BC%E5%B1%95%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) The company designated 2025 as the 'Quality Empowerment Year,' committed to steady progress, optimizing market layout, expanding into new energy and chemical engineering markets, deepening low-carbon environmental transformation, and actively developing overseas markets; concurrently, the company identified potential risks including policy regulation, market, environmental compliance, and listed company governance compliance [Future Outlook](index=37&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) The company designated 2025 as the 'Quality Empowerment Year,' committed to steady progress, optimizing market layout, and expanding its presence through government-enterprise collaboration, investment-driven initiatives, and equity partnerships; it will enhance 'specialization' and 'going global' development, focusing on new energy and chemical engineering, expanding into energy storage, offshore wind power, hydrogen-ammonia-alcohol, and strengthening overseas project management and market expansion - **2025** is designated as the "Quality Empowerment Year," focusing on steady progress, optimizing market layout, and expanding cooperation with high-quality resource partners[113](index=113&type=chunk)[114](index=114&type=chunk) - Focus on new energy and chemical engineering, expanding into specialized markets such as energy storage, offshore wind power, and hydrogen-ammonia-alcohol[114](index=114&type=chunk) - Strengthen full-process management of ongoing overseas projects and steadfastly expand overseas markets, leveraging specialized expertise[114](index=114&type=chunk) - Expand into new businesses like low-carbon environmental protection and integrated clean energy, ensuring successful replication of experiences in clean heating, solid waste disposal, water environment governance, and distributed energy[115](index=115&type=chunk) [Potential Risks](index=38&type=section&id=%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%B0%8D%E7%9A%84%E9%A2%A8%E9%9A%AA) The company faces risks including policy and regulatory risks (government policy changes affecting the engineering industry), market risks (reforms by major customers and suppliers, foreign exchange and interest rate fluctuations), environmental compliance risks (pollutant emission and treatment standards, environmental crime penalties), and listed company governance compliance risks (non-compliance with information disclosure and decision-making procedures potentially leading to regulatory penalties) - **Policy and regulatory risks**: Government policy changes may impact business and financial performance[115](index=115&type=chunk)[116](index=116&type=chunk) - **Market risks**: Reforms by major customers and suppliers, as well as foreign exchange and interest rate fluctuations, may have an impact[117](index=117&type=chunk) - **Environmental compliance risks**: Compliance with various national and local environmental laws and regulations is required, with violations potentially leading to fines or administrative penalties[118](index=118&type=chunk) - **Listed company governance compliance risks**: Information disclosure and decision-making procedures must strictly adhere to the Listing Rules, otherwise regulatory penalties may be incurred[119](index=119&type=chunk) [Employees](index=40&type=section&id=%E5%83%B1%E5%93%A1) As of June 30, 2025, the Group had 3,605 full-time employees, with staff costs of approximately RMB 336 million; the company established career development paths, research and assistance mechanisms, innovative talent cultivation methods, enhanced training effectiveness, upgraded its cloud learning platform, and built a learning roadmap for project management personnel to foster employee development and optimize human resources - As of June 30, 2025, the Group had **3,605** full-time employees, with staff costs of approximately **RMB 336 million**[120](index=120&type=chunk) - Established career development paths, research and assistance mechanisms, innovative talent cultivation methods, enhanced training effectiveness, and upgraded its cloud learning platform[120](index=120&type=chunk) [Use of Proceeds from H Share Listing](index=41&type=section&id=H%E8%82%A1%E4%B8%8A%E5%B8%82%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The net proceeds from the company's H share listing totaled approximately HKD 738.5 million; as of the end of the reporting period, approximately HKD 491.3 million remained unutilized; the Board has approved a change in the use of unutilized net proceeds, pending shareholder approval; funds are primarily allocated for centralized/distributed photovoltaic projects, wind power projects, equity investments in new energy projects, clean heating, distributed energy, water treatment, solid waste disposal, project company registered capital, construction costs for service concession projects, new energy upstream and downstream manufacturing industry projects, and working capital - Net proceeds from H share listing totaled approximately **HKD 738.5 million**[121](index=121&type=chunk) - As of the end of the reporting period, approximately **HKD 491.3 million** remained unutilized[125](index=125&type=chunk) - The Board has approved a change in the use of unutilized net proceeds, pending shareholder approval[125](index=125&type=chunk) | Project | Proposed Net Proceeds Allocation (Million HKD) | Unutilized Net Proceeds as of Jan 1, 2025 (Million HKD) | Actual Use During Reporting Period (Million HKD) | Unutilized Net Proceeds at Period-End (Million HKD) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | | Future Centralized Photovoltaic Projects | 147.6 | 142.0 | — | 142.0 | Before end of 2026 | | Investment in Existing and Future Distributed Photovoltaic Projects | 73.9 | 73.9 | — | 73.9 | Before end of 2026 | | Funding Future Investments in Domestic or Overseas Wind Power Projects | 73.9 | 73.9 | 33.4 | 40.5 | Before end of 2027 | | Future Equity Investments and/or Construction of Other New Energy Projects | 73.9 | 57.7 | 40.4 | 17.3 | Before end of 2027 | | Existing and Future Clean Heating Projects | 29.5 | 27.7 | 15.8 | 11.9 | Before end of 2027 | | Future Distributed Energy Projects | 36.9 | 36.9 | — | 36.9 | Before end of 2027 | | Existing Water Treatment Projects | 36.9 | 36.9 | 14.9 | 22.0 | Before end of 2027 | | Future Solid Waste Disposal Projects | 29.5 | 24.1 | 8.8 | 15.3 | Before end of 2027 | | Paid-up Registered Capital for Project Companies and Construction Costs for Existing Service Concession Projects | 22.2 | 22.2 | — | 22.2 | Before end of 2025 | | Payment for Equipment Construction Costs for Existing Service Concession Projects | 36.9 | 0.5 | — | 0.5 | Before end of 2025 | | Current and Future Service Concession Projects | 44.3 | 44.3 | — | 44.3 | Before end of 2025 | | Funding New Energy Upstream and Downstream Manufacturing Industry Projects | 73.9 | 73.9 | 13.0 | 60.9 | Before end of 2026 | | Working Capital and Other General Corporate Purposes | 59.1 | 7.7 | 4.1 | 3.6 | Before end of 2027 | | **Total** | **738.5** | **621.7** | **130.4** | **491.3** | | [Corporate Governance and Other Information](index=43&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) The company is committed to maintaining high standards of corporate governance, complying with the Corporate Governance Code in Appendix C1 and the Model Code in Appendix C3 of the Listing Rules; the Audit Committee has reviewed the interim results; there were no significant post-reporting period events; this results announcement has been published on the HKEX and company websites, and the interim report will be dispatched to shareholders in due course [Compliance with Corporate Governance Code](index=43&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company has adopted the principles and code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules and believes it has complied with all code provisions and substantially met most recommended best practices during the reporting period - The company has adopted and complied with the principles and code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules[126](index=126&type=chunk) [Standard Code for Securities Transactions](index=43&type=section&id=%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted the Model Code in Appendix C3 of the Listing Rules as the code of conduct for directors, supervisors, and senior management in dealing with the company's securities, and confirms that all directors complied with this code during the reporting period - The company has adopted the Model Code in Appendix C3 of the Listing Rules as the code of conduct for directors, supervisors, and senior management in dealing with the company's securities, and confirms that all directors complied during the reporting period[127](index=127&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=43&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B3%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[128](index=128&type=chunk) [Audit Committee Review of Interim Results](index=44&type=section&id=%E5%AF%A9%E8%A8%88%E5%A7%94%E5%93%A1%E6%9C%83%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) The Audit Committee, comprising three members, has reviewed the Group's unaudited interim results for the reporting period with management - The Audit Committee has reviewed the Group's unaudited interim results for the reporting period with management[130](index=130&type=chunk) [Post-Reporting Period Events](index=44&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Except for disclosed matters, there have been no significant events subsequent to the reporting period up to the announcement date that would materially affect the Group's operations and financial performance - Except for disclosed matters, there have been no significant events subsequent to the reporting period up to the announcement date that would materially affect the Group's operations and financial performance[131](index=131&type=chunk) [Publication of Interim Results and Interim Report](index=44&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This results announcement has been published on the Hong Kong Stock Exchange website and the company's website; the 2025 interim report, containing all required information, will be dispatched to shareholders and published in due course - This results announcement has been published on the Hong Kong Stock Exchange website and the company's website[132](index=132&type=chunk)

| 序号 | 股东名称 | | 持股比例 ÷ | 认缴出资额(万元) ÷ | 认缴出资日期 ÷ | 间接待股比例 | 首次持股日期 ÷ | | --- | --- | --- | --- | --- | --- | --- | --- | | | 山西山安立德环保科技有限公司 | | 43.00% | 2184.83 | | | 2025-08-08 | | | 国有企业 | 大股东 | | | | | | | 2 | 山西省安装集团股份有限公司 | | 42.00% | 2134.02 | | 43% ହିଁ | 2025-08-08 | | | 国有企业 被执行人 山西安装 (02520.HK) 港 | | | | | | | | | 天津市龙津节能科技有限公司 | | 15.00% | 762.15 | | | 2025-08-08 | 企查查APP显示，近日，宁武山安立德再生资源利用有限公司成立，法定代表人为赵文婧，注册资本为5081万元，经营范围包含：建设工程施工；固体废物 治理；再生资源销售；再生资源加工；资源再生利用技术研发等。企查查股权穿透显示，该公司由山西山安立德环保科技有限公司、山西安装 ...

格隆汇8月15日丨山西安装(02520.HK)宣布，谨定于2025年8月27日（星期三）举行董事会会议，以审议 并批准本集团截至2025年6月30日止的六个月中期业绩以作刊发的用及处理其他事项，包括建议派付中 期股息（如有）。 ...

董事會會議日期 山西省安裝集團股份有限公司（「本公司」及其附屬公司「本集團」）董事會（「董事會」） 玆通告謹定於2025年8月27日（星期三）舉行董事會會議，以審議並批准本集團截至 2025年6月30日止之六個月中期業績以作刊發之用及處理其他事項，包括建議派付 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。 Shanxi Installation Group Co., Ltd. 山西省安裝集團股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2520） 截至本公告日期，本公司董事會由以下成員組成：(i)執行董事任銳先生及張琰先 生；(ii)非執行董事徐官師先生、張宏杰先生、慕建偉先生及馮成先生；及(iii)獨立 非執行董事王景明先生、吳秋生教授、單婥然女士及郭禾先生。 承董事會命 山西省安裝集團股份有限公司 董事長兼執行董事 任銳先生 中國山西，2025年8月15日 ...

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 FF301 截至月份: 2025年7月31日 狀態: 新提交 呈交日期: 2025年8月5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) | 02520 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 373,486,000 | RMB | | 1 | RMB | | 373,486,000 | | 增加 / 減少 (-) | | | | | | | RMB | | | | 本月底結存 | | | 373,486,000 | RMB | | 1 | RMB | | 373,486,000 | | 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 ...

Group 1 - Shanxi Installation has appointed a new chairman, Ren Rui, following the resignation of Wang Limin due to work adjustments [1] - Ren Rui has over ten years of experience with Shanxi Installation, having held various positions since joining in June 2014 [1] - Wang Limin, who has been with the company for over 30 years, will take on a new role as Deputy General Manager of Shanxi Construction Investment Group [1] Group 2 - Shanxi Installation is a subsidiary of Shanxi Construction Investment Group, specializing in professional industrial engineering, supporting engineering, and other non-engineering services [2] - The company provides integrated professional system services throughout the entire lifecycle of engineering projects [2] - Shanxi Installation became the first listed company in the domestic professional industrial engineering and installation sector on November 22, 2023, and has maintained annual revenue exceeding 10 billion yuan [4]

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 12,242,889 thousand, representing an increase from RMB 10,971,109 thousand in 2023, but a decrease from RMB 12,844,822 thousand in 2022[17]. - Gross profit for 2024 was RMB 1,520,400 thousand, with a gross margin of 12.4%, down from 12.8% in 2023 and 14.3% in 2022[17]. - Net profit attributable to equity holders of the company was RMB 153,412 thousand in 2024, slightly down from RMB 154,942 thousand in 2023[17]. - Total assets increased to RMB 24,124,161 thousand in 2024, compared to RMB 23,522,431 thousand in 2023[17]. - Total liabilities rose to RMB 20,780,805 thousand in 2024, up from RMB 20,396,627 thousand in 2023[17]. - The equity-to-debt ratio improved to 53.96% in 2024 from 55.27% in 2023, indicating a stronger capital structure[17]. - The company's total profit for 2024 was RMB 224.8 million, a slight decrease of 0.16% from RMB 225.1 million in the previous year[59]. - Net profit increased by 1.93% to RMB 209.5 million in 2024, compared to RMB 205.6 million in the same period last year[61]. - The company's capital expenditure as of December 31, 2024, was RMB 1,261.8 million, significantly higher than RMB 297.1 million as of December 31, 2023[63]. Market Expansion and Contracts - In 2024, the company secured new contracts worth RMB 16.857 billion, representing a 3.87% increase compared to 2023, enhancing its market competitiveness[11]. - The company aims to expand its market presence in overseas and "Belt and Road" clean energy projects, while maintaining its traditional strengths in chemical and municipal sectors[16]. - The foreign contracting engineering business completed an operating revenue of RMB 781.02 billion from January to September 2024, representing a year-on-year growth of 2.1%[33]. - New signed contracts in the foreign contracting engineering sector reached RMB 1,220.58 billion, reflecting a growth of 23.8%[33]. - The company secured the largest single contract for a 400 MW wind power hydrogen production project in Xinjiang, marking a significant milestone in its renewable energy initiatives[35]. Innovation and Technology - The company launched 211 technology projects in 2024, emphasizing innovation and digital transformation[15]. - The company has initiated 15 technology breakthroughs in the hydrogen energy sector, including a project on the chemical depolymerization of discarded wind turbine blades[12]. - The company is advancing its research capabilities by collaborating with universities and enhancing its project and talent management mechanisms to boost innovation[86]. - The company is implementing a high-speed information technology transformation to improve data quality and management efficiency, addressing issues like data silos[87]. Cost Management and Efficiency - The company has achieved a reduction in comprehensive financing costs from 5.51% to 5.02%, supporting green project construction with lower-cost funding[13]. - The company has implemented a project management model that has led to cost reductions and increased efficiency, resulting in higher customer satisfaction[14]. - The company's sales cost for 2024 was RMB 10,722.5 million, an increase of 12.02% from RMB 9,571.9 million in 2023, reflecting the rise in revenue scale and corresponding cost inputs[45]. - The company has successfully reduced operational costs by 10% through efficiency improvements, contributing to higher profit margins[9]. Governance and Compliance - The company emphasizes the importance of compliance with regulatory requirements, including information disclosure and decision-making processes, to avoid penalties from regulatory bodies[78]. - The company aims to strengthen its governance structure and management responsibilities, focusing on performance evaluation and the establishment of exit standards for underperforming personnel[80]. - The company has established a robust mechanism for independent directors to provide independent opinions and judgments on development and business strategies[144]. - The company has complied with the Corporate Governance Code throughout the fiscal year ending December 31, 2024[140]. Human Resources and Talent Management - The company is focused on a comprehensive talent management system, promoting a dynamic environment for talent cultivation and retention[88]. - The company is committed to diversity and equal opportunity in hiring, training, and professional development[193]. - Approximately 27.0% of the company's full-time employees, including senior management, are women as of December 31, 2024[193]. - The company aims to enhance gender diversity at all levels, including encouraging current board members to nominate female candidates[195]. Environmental and Social Responsibility - The company is focusing on the development of green energy and asset value services as part of its dual-driven model for value creation[16]. - The company has successfully obtained the first batch of green power certificates and achieved an EPC installed capacity of 2.5 GW in the renewable energy sector[35]. - The company has entered the green hydrogen production sector and is expanding into renewable energy projects in Southeast Asia and Africa, including significant contracts in Indonesia and Kazakhstan[37]. Risk Management - The company faces significant risks related to policy regulation, market fluctuations, and environmental compliance, which could impact its operational and financial performance[76][77]. - The company has established effective comprehensive risk management systems to enhance risk prevention and management levels[187]. - The company conducts annual risk assessments to evaluate the risk situation for the following year[188].

3月27日，山西建筑行业首个上市公司山西安装集团发布了2024年度业绩报告。 公告显示，截至2024年12月31日止年度业绩，该集团取得营业收入人民币122.43亿元（单位下同），同比增加11.59%；归属于母公司股东的净利润1.53亿 元，同比减少0.99%；每股基本盈利0.11元，拟分派股息每10股股份0.04537元。 据公开信息显示，2024年，山西安装集团以超450亿元的合同签订额，保持了高质量发展的稳健态势。其中，在山西市场新签合同额超164亿元，并拿下多 个重要项目。 例如，以山西天星煤气化有限公司年产101万吨焦炭及8万吨LNG新能源项目、浮山县污水处理厂提质改造项目、全国一体化算力网络国家枢纽节点山西 枢纽（太原）项目、长治高新区新材料产业基地项目为代表的121个项目先后落地山西。 除了山西市场外，山西安装集团新签项目遍布全国26个省，合同额达260.45亿元。宝看了位于新疆的明阳拉萨市尼木县50MW光储牧光互补光伏发电总承 包项目，位于中原的郑州航空港经济综合实验区绿轴印象项目，位于辽东地区的阜新恒久安泰电解液项目等。 | 財務摘要 | | | | | --- | --- | --- | ...

Financial Performance - Operating revenue for the year ended December 31, 2024, was RMB 12,242,889 thousand, an increase of RMB 1,271,780 thousand or 11.6% compared to RMB 10,971,109 thousand in 2023[3] - Gross profit for the same period was RMB 1,520,400 thousand, up by RMB 121,175 thousand, resulting in a gross margin of 12.4%, down from 12.8% in 2023[3] - Net profit attributable to shareholders of the parent company was RMB 153,412 thousand, a decrease of RMB 1,530 thousand compared to RMB 154,942 thousand in 2023[3] - The total comprehensive income for the year was RMB 211,795 thousand, slightly up from RMB 208,080 thousand in 2023[14] - The company reported a basic earnings per share of RMB 0.11, down from RMB 0.15 in the previous year[12] - The company achieved a profit before tax of RMB 224,752 thousand in 2024, slightly down from RMB 225,123 thousand in 2023[46] - The total profit for 2024 was RMB 224.8 million, a decrease of 0.16% from RMB 225.1 million in the previous year[97] - Net profit for 2024 increased by 1.93% to RMB 209.5 million, compared to RMB 205.6 million in the previous year[99] Revenue Breakdown - Main business revenue was RMB 12,199,170 thousand, up 11.5% from RMB 10,940,343 thousand in 2023[37] - Revenue from the main business segment of professional industrial engineering was RMB 9,091,213 thousand, a 42.7% increase from RMB 6,371,536 thousand in 2023[39] - Revenue from overseas operations was RMB 281,292 thousand in 2024, a decline of 47.1% from RMB 531,202 thousand in 2023[41] - Total operating revenue for the construction contracting segment was RMB 11,458,172,000, while the non-engineering segment generated RMB 1,262,477,000, totaling RMB 12,242,889,000[55] - Revenue from professional supporting engineering decreased by 59.69% to RMB 904.4 million in 2024 from RMB 2,243.3 million in 2023, attributed to reduced income from projects in the later stages of construction[80] Expenses and Liabilities - Operating costs for 2024 were RMB 10,722,490 thousand, representing an increase of 12.0% from RMB 9,571,884 thousand in 2023[37] - Research and development expenses increased to RMB 593,406 thousand, up from RMB 443,205 thousand in 2023, reflecting a focus on innovation[12] - The company reported a total tax expense of RMB 57,554 thousand in 2024, down 11.4% from RMB 64,854 thousand in 2023[7] - The company's financial expenses increased by 6.14% to RMB 102.3 million in 2024 from RMB 96.4 million in 2023, mainly due to an increase in loan principal[91] - The company reported accounts receivable of RMB 6,404,345 thousand in 2024, with a bad debt provision of RMB 443,672 thousand, resulting in a loss rate of 6.93%[22] - Total liabilities increased to RMB 20,780,805 thousand from RMB 20,396,627 thousand in 2023, indicating a rise in financial obligations[8] Assets and Capital - Total assets as of December 31, 2024, amounted to RMB 24,124,161 thousand, an increase from RMB 23,522,431 thousand in 2023[6] - The company’s cash and cash equivalents stood at RMB 2,626,837 thousand, a slight decrease from RMB 2,636,546 thousand in 2023[6] - The company's capital expenditure commitments as of December 31, 2024, totaled RMB 1,261.8 million, significantly up from RMB 297.08 million as of December 31, 2023[104] - The debt-to-capital ratio as of December 31, 2024, was 53.9%, a decrease from 55.3% as of December 31, 2023[105] Dividends - The company declared a dividend of RMB 0.04537 per share for every 10 shares, including tax[3] - The proposed final dividend for the year ending December 31, 2024, is RMB 0.04537 per share, totaling approximately RMB 6,233,000, pending shareholder approval[51] - The final dividend is subject to approval at the company's annual general meeting, scheduled for June 4, 2025[135] Strategic Focus and Development - The company plans to adopt Chinese accounting standards for financial reporting starting from the 2024 semi-annual report, aiming to enhance efficiency and reduce disclosure costs[18] - The company is actively exploring multiple development models, including equity cooperation and resource sharing, to enhance its position in the new energy sector, with a total of 300 MW of new energy indicators acquired throughout the year[59] - The company is committed to transforming into a low-carbon project operator, with ongoing investments in waste treatment and resource utilization projects, aligning with the green development strategy[62] - The company aims to strengthen its professional sectors by leveraging its petrochemical qualifications and expanding into the chemical market, focusing on municipal projects and renewable energy, particularly in photovoltaic and wind power[112] Risks and Compliance - The company faces significant operational risks due to reliance on the overall economic situation in China and changes in government policies affecting the engineering industry[122] - Market risks include uncertainties arising from major customers and suppliers, as well as foreign exchange and interest rate risks[123] - Compliance with environmental regulations is critical, with potential penalties for severe environmental violations that could impact operations[124] Corporate Governance - The company adheres to strict corporate governance standards to enhance shareholder value and maintain transparency[128] - The audit committee has reviewed the group's accounting principles and policies, confirming that the annual performance has been prepared in accordance with applicable accounting standards[132]

Financial Performance - For the first half of 2024, the company achieved a revenue of RMB 6,127 million and a profit of RMB 116 million[8]. - For the six months ended June 30, 2024, the company's revenue was RMB 6,127.1 million, an increase of 16.4% compared to RMB 5,265.0 million in the same period last year, primarily due to the peak construction period of power engineering projects in the professional industrial engineering segment[29]. - The company's net profit for the same period was RMB 115.7 million, an increase of 5.0% compared to RMB 110.2 million in the previous year[48]. - Gross profit for the six months ended June 30, 2024, was RMB 716.6 million, a decrease of 10.7% from RMB 802.9 million in the previous year, with a gross margin of 11.7%, down from 15.3%[31]. - The company's total comprehensive income for the first half of 2024 was RMB 111,510,565.42, slightly up from RMB 111,366,274.56 in the first half of 2023[107]. - The basic earnings per share for the first half of 2024 decreased to RMB 0.07 from RMB 0.08 in the same period of 2023[107]. Market Expansion and Projects - The company successfully secured projects in the professional industrial engineering sector, including a 50,000 kW distributed wind power project and various photovoltaic projects totaling over 100 MW each[9]. - In the professional supporting engineering sector, the company won contracts for multiple heating network expansion and renovation projects in Taiyuan and surrounding areas[11]. - The company is actively pursuing new investment projects in clean heating, solid waste disposal, and water environment governance, with significant progress in various initiatives[12]. - The company has maintained a focus on international expansion, successfully winning a coal preparation plant project in Indonesia as part of its "Big Overseas" strategy[11]. - The company aims to enhance quality and efficiency in 2024, focusing on transformation and market expansion in new energy and chemical engineering sectors[61]. - The company plans to strengthen its overseas project management and enhance delivery quality to support the "Belt and Road" initiative[62]. Financial Position and Assets - As of June 30, 2024, the company's cash and bank balances amounted to approximately RMB 3,044.2 million, up from RMB 2,636.5 million as of December 31, 2023[52]. - The company's borrowings increased to RMB 6,951.7 million as of June 30, 2024, compared to RMB 5,951.8 million at the end of 2023, primarily to supplement cash for daily operations[52]. - Total current assets increased to ¥19.12 billion as of June 30, 2024, up from ¥17.06 billion at the end of 2023, representing a growth of approximately 12.06%[97]. - Total liabilities rose to ¥22.53 billion as of June 30, 2024, compared to ¥20.40 billion at the end of 2023, indicating an increase of about 10.45%[99]. - The company's total assets at the end of the reporting period were RMB 2,548,531,975.35, up from RMB 1,697,116,619.30 at the end of the first half of 2023, reflecting a growth of 50.3%[116]. Research and Development - Research and development expenses for the six months ended June 30, 2024, were RMB 135.5 million, a decrease of 26.9% from RMB 185.3 million in the previous year, due to a reduction in the number of R&D projects[37]. - Research and development expenses for the first half of 2024 were RMB 135,481,163.57, down 26.9% from RMB 185,265,736.38 in the same period of 2023[105]. Shareholder Information - Major shareholders include Shanxi Construction Investment holding 980 million shares (100% of the relevant category), representing 72.81% of the company's issued share capital[72]. - The total number of shares held by major shareholders indicates a concentrated ownership structure, with significant stakes held by a few entities[72]. - The company has no other known shareholders holding 5% or more of the issued share capital, apart from those disclosed[75]. Cash Flow and Financing Activities - Cash flow from operating activities generated a net inflow of RMB 54,642,597.96 in the first half of 2024, compared to RMB 48,875,083.71 in the same period of 2023, an increase of 11.5%[114]. - Cash flow from financing activities showed a net inflow of RMB 549,097,403.83 in the first half of 2024, compared to RMB 615,234,624.76 in the same period of 2023, a decrease of 10.7%[116]. - Net cash flow from financing activities improved significantly to RMB 749,811,913.46, compared to RMB 161,129,853.64 in the first half of 2023[121]. Risks and Challenges - The company faces significant operational risks related to changes in government policies affecting the construction industry[65]. - Market risks include uncertainties from major customers and suppliers, as well as foreign exchange and interest rate risks[66]. Corporate Governance - The company has adopted corporate governance codes to maintain high levels of accountability and transparency, ensuring compliance with applicable regulations[84]. - The audit committee has reviewed the unaudited mid-year report for 2024, confirming compliance with accounting standards and adequate disclosure[86]. Future Plans and Allocations - The company plans to allocate a total of RMB 738.5 million for various projects, with RMB 688.0 million remaining unutilized as of June 30, 2024[82]. - RMB 147.6 million is designated for future centralized photovoltaic projects, expected to be utilized by the end of 2025[79]. - The company aims to fund future investments in clean heating projects with RMB 29.5 million, expected to be used by the end of 2026[79].