Financial Performance - The company's revenue for the year ended December 31, 2023, decreased by 67.55% to approximately RMB 61.37 million from RMB 189.11 million in 2022[10]. - The gross profit for 2023 was RMB 8.1 million, with a gross margin of 13.2%, compared to RMB 27.9 million and 14.8% in 2022[5]. - The net loss for 2023 was RMB 16.5 million, with a net profit margin of -26.9%, an improvement from a loss of RMB 975 million in 2022[5]. - The total equity as of December 31, 2023, was negative RMB 648 million, compared to negative RMB 631.5 million in 2022[6]. - Cash and cash equivalents at the end of the reporting period were approximately RMB 10.23 million, down from RMB 12.88 million as of December 31, 2022, primarily due to debt repayments and daily expenses[44]. - The company's annual loss decreased by 98.31% from approximately RMB 975 million to about RMB 16.5 million due to strict control over administrative expenses and improved collection of receivables[42]. - The group reported a net loss of approximately RMB 16,502,000 for the year ended December 31, 2023[196]. - As of December 31, 2023, the group's current liabilities and total liabilities were approximately RMB 699,259,000 and RMB 647,971,000, respectively[196]. - The group's borrowings amounted to approximately RMB 240,705,000, while cash and cash equivalents were about RMB 876,000 as of December 31, 2023[196]. Debt and Restructuring - The company plans to focus on debt restructuring and attract new investors to mitigate debt and liquidity risks[13]. - The company is actively communicating with creditors and investors to expedite the debt restructuring process[18]. - The company is undergoing a restructuring transaction involving debt restructuring and potential issuance of new shares to address its financial challenges[44]. - The company is undergoing a debt restructuring process, with a bankruptcy reorganization application submitted to the Shenzhen Intermediate People's Court on September 25, 2023[67]. - The company reported a total loan default amounting to approximately RMB 240.71 million from eight banks and one company, which has not been repaid or extended[84]. - The total amount of overdue loans from the 8 banks is approximately RMB 222.95 million, indicating a breach of loan agreement terms[101]. - The company is currently negotiating with creditors and potential investors to reduce debt levels and secure new funding to support operations[200]. - The auditors were unable to express an opinion on the financial statements due to significant uncertainties regarding the group's ability to continue as a going concern[195]. Business Strategy and Operations - The company aims to maintain project completion and delivery while implementing a cautious order strategy to select high-quality clients[14]. - The company intends to explore new business opportunities in the fields of renewable energy and technological innovation[19]. - The company is focusing on regional development and targeting niche markets, particularly in the Guangdong-Hong Kong-Macao Greater Bay Area, while enhancing its competitive edge through technology[68]. - The company is committed to managing and monitoring risks associated with its operations to ensure timely and effective measures are implemented[77]. - The company is exploring new business opportunities in the new energy and technology innovation sectors, transitioning from traditional construction decoration services[68]. Market and Industry Context - The decrease in revenue is attributed to the slowdown in the domestic economy and the increasing number of defaults in the real estate sector[41]. - The construction decoration industry is transitioning from a phase of rapid development to a phase of high-quality development, despite facing significant challenges[39]. - Future opportunities may arise as government policies towards the real estate sector begin to warm up[39]. - The construction decoration industry still has underlying market demand despite the current contraction[39]. Corporate Governance - The company maintained good corporate governance practices throughout the year ending December 31, 2023, fully adhering to applicable governance codes[149]. - The chairman and CEO roles were separated on October 20, 2023, with Mr. Wu Jianzhang appointed as CEO, enhancing operational efficiency[149]. - The board of directors is committed to providing effective and responsible leadership, with four committees established to oversee various aspects of the company's affairs[151]. - The supervisory board confirmed that the company's operations comply with Chinese company law and regulations, ensuring the protection of shareholders' rights[146]. - The company has adopted the corporate governance code principles and has complied with all applicable provisions, except for the separation of the chairman and CEO roles prior to October 20, 2023[149]. Employee and Workforce Management - Employee costs amounted to approximately RMB 6.29 million, down from RMB 8.7 million in the previous year, with a workforce reduced to 50 employees from 70[62]. - The group has a total of 50 employees as of December 31, 2023, with a breakdown including 18 in administrative management, 10 in project management, and 14 in accounting and finance[139]. - As of December 31, 2023, the workforce gender ratio is 42% male and 58% female, with the company committed to diversity and equal opportunity in hiring and promotion[177]. Risk Management - The company is facing significant financial risks, including interest rate risk, credit risk, and liquidity risk, exacerbated by the overall economic environment and the real estate sector[76]. - The company has established mechanisms to ensure the board receives independent viewpoints and opinions[158]. - The company has implemented cost-cutting measures, resulting in a G% reduction in operational expenses[25]. Shareholder Information - As of December 31, 2023, the company's share capital structure consists of 178,167,645 domestic shares (73.9%) and 62,763,000 H shares (26.1%), totaling 240,930,645 shares[90]. - The company did not recommend a final dividend for the year ending December 31, 2023, consistent with the previous year[91]. - The company has established a dividend policy that is contingent on profitability and other relevant factors, with no guarantee of dividend distribution[92]. - Major shareholders include Ningbo Meishan Free Trade Port Area Yinxing Investment Center with 12,580,645 domestic shares, representing 7.06% of the total shares[111]. Legal and Compliance - The group is involved in 124 lawsuits totaling approximately RMB 341.925 million, primarily related to bank debt defaults and disputes over labor and material payments[131]. - The group has estimated potential liabilities, including payables, interest, and penalties, of approximately RMB 50.57 million, which has been provisioned[131]. - The company has not reported any significant violations of applicable laws and regulations that would materially affect its business and operations as of December 31, 2023[80].

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 61.37 million, a decrease of 67.55% compared to RMB 189.11 million in 2022[3] - Gross profit for the same period was RMB 8.09 million, down 71.00% from RMB 27.90 million in 2022, resulting in a gross margin of 13.18%[3] - The net loss for the year was RMB 16.50 million, a significant improvement of 98.31% compared to a net loss of RMB 975.00 million in 2022[3] - Basic and diluted loss per share was RMB 0.07, compared to RMB 4.05 in the previous year, reflecting a 98.27% reduction in loss per share[3] - Total revenue for the year ended December 31, 2023, was RMB 61,366 thousand, a decrease of 67.6% from RMB 189,111 thousand in 2022[25] - Loss attributable to owners of the company for the year ended December 31, 2023, was RMB 16,502 thousand, compared to a loss of RMB 975,004 thousand in 2022, representing a significant improvement[27] - The group’s revenue decreased by 67.55% from approximately RMB 1,891.1 million for the year ended December 31, 2022, to approximately RMB 613.7 million for the reporting period[43] - The group’s gross profit fell by 70.97% from approximately RMB 279 million for the year ended December 31, 2022, to approximately RMB 80.9 million for the reporting period, with a gross margin decline from 14.75% to 13.18%[43] - The net loss for the year decreased by 98.31% from approximately RMB 9,750 million for the year ended December 31, 2022, to approximately RMB 165 million for the reporting period[44] Assets and Liabilities - Total assets decreased to RMB 93.57 million in 2023 from RMB 126.87 million in 2022, representing a decline of 26.25%[7] - Current liabilities amounted to RMB 740.20 million, down from RMB 756.93 million in 2022, indicating a decrease of 2.20%[10] - The company’s total equity attributable to owners was negative at RMB 647.97 million, compared to negative RMB 631.47 million in 2022[10] - Trade receivables as of December 31, 2023, were RMB 758,468 thousand, down from RMB 789,074 thousand in 2022, with a net value of RMB 13,117 thousand after impairment provisions[29] - Trade payables as of December 31, 2023, were RMB 340,522 thousand, a decrease from RMB 413,983 thousand in 2022[31] - The total amount of overdue bank borrowings was RMB 222.95 million, including a debt default amount of approximately RMB 18.42 million and RMB 43.51 million from two separate court notifications[51] - The asset-liability ratio at the end of the reporting period was 792.53%, significantly up from 597.73% in 2022, primarily due to increased provisions for trade receivables and contract assets[53] Cash Flow and Financing - Cash and cash equivalents were reported at RMB 876,000, a decrease from RMB 1,006,000 in 2022[7] - Cash and cash equivalents at the end of the reporting period were approximately RMB 10.23 million, down from RMB 12.88 million as of December 31, 2022, primarily due to debt defaults and inability to secure new external financing[45] - The average effective interest rate for borrowings as of December 31, 2023, was 9.93%, up from 8.08% in 2022[34] - The group is actively seeking debt restructuring and new funding to improve liquidity and operational support[37] - The company plans to utilize proceeds from proposed share placements for debt restructuring to reduce liabilities[46] - The group has approximately RMB 9.35 million in bank deposits frozen by Chinese courts due to financial constraints and overdue bank loans[57] - The group has pledged fixed assets valued at approximately RMB 38.35 million as collateral for borrowings[52] - The company reported a loan default of approximately RMB 240.71 million from 8 banks, 1 company, and 3 individuals, which has not been repaid or extended[78] - A court in Shenzhen issued a notice for the auction of collateral assets valued at approximately RMB 30 million due to a debt default[80] Corporate Governance and Compliance - The company did not recommend any final dividend for the years ended December 31, 2023, and 2022[28] - The board of directors does not recommend the distribution of a final dividend for the year ending December 31, 2023[75] - The independent auditor's report indicated an inability to express an opinion on the financial statements due to insufficient audit evidence[35] - The company has fully complied with the corporate governance code, except for the separation of the roles of chairman and CEO until October 20, 2023[71] - The external auditor confirmed that the financial data for the year ending December 31, 2023, aligns with the audited consolidated financial statements[77] - The company has adopted the standard code of conduct for securities trading and confirmed compliance by all directors and supervisors during the reporting period[72] - The board of directors includes four executive directors, one non-executive director, and four independent non-executive directors[71] - The company has not identified any incidents of non-compliance with the standard code of conduct by employees who may have insider information[74] Operational Strategy - The company is actively seeking debt restructuring to reduce liabilities and financial costs while obtaining new funding to support operations[18] - The company is in communication with clients and suppliers to secure settlement support and prioritize payments for ongoing projects[18] - The construction and decoration industry is transitioning from a high-speed development phase to a high-quality development phase, presenting both challenges and opportunities[40] - The group plans to focus on regional development and niche markets, particularly in the medical and hotel sectors, while leveraging technology to enhance competitiveness[66] - The company is currently advancing projects related to share resumption, bankruptcy restructuring, and debt restructuring[71] Employment and Costs - Employee costs for the reporting period were approximately RMB 6.29 million, down from RMB 8.7 million in 2022, with a total of 50 employees[61] - The group has no capital expenditures during the reporting period, consistent with the previous year[55] - The group has no capital commitments as of the reporting period[56]

Financial Performance - The company's revenue decreased by 58.23% from approximately RMB 1,048.3 million for the six months ended June 30, 2022, to approximately RMB 437.9 million for the six months ended June 30, 2023[8]. - Gross profit fell by 71.33% from approximately RMB 242.8 million to approximately RMB 69.6 million, with the gross margin declining from 23.16% to 15.89%[8]. - The company reported a profit of approximately RMB 642.4 million for the six months ended June 30, 2023, primarily due to the clearance of unnecessary payables and reversal of over-provisioned impairment losses[9]. - The company reported a revenue of RMB 43.79 million for the six months ended June 30, 2023, a decrease of 58% compared to RMB 104.83 million in the same period of 2022[59]. - The gross profit for the same period was RMB 6.96 million, down from RMB 24.28 million, indicating a significant decline in profitability[59]. - The company incurred an operating loss of RMB 76.88 million, compared to an operating loss of RMB 83.48 million in the previous year, showing some improvement[59]. - The net loss for the period was RMB 64.24 million, a decrease from a net loss of RMB 91.76 million in the prior year[59]. - The company reported a net loss attributable to shareholders of RMB 64,243,000 for the six months ended June 30, 2023, compared to a loss of RMB 91,764,000 in the same period of 2022, indicating an improvement[168]. - The basic loss per share improved to RMB 0.27 for the first half of 2023 from RMB 0.38 in the same period of 2022[168]. Cash Flow and Liquidity - Cash and cash equivalents decreased from approximately RMB 128.8 million as of December 31, 2022, to approximately RMB 82.8 million as of June 30, 2023, due to debt defaults and inability to secure new external financing[11]. - The company reported a net cash inflow from operating activities of RMB 727,000, down from RMB 1,904,000, representing a decline of approximately 62%[64]. - Cash and cash equivalents decreased to RMB 431 thousand as of June 30, 2023, from RMB 1,006 thousand as of December 31, 2022[182]. - The company is currently in discussions with creditors and potential investors for debt restructuring to reduce debt levels and secure new funding[73]. - The group is actively seeking new financing channels and plans to implement measures to control administrative expenses to conserve cash flow[73]. - The company has maintained a liquidity policy to monitor current and expected liquidity requirements, ensuring sufficient cash reserves and committed funding from banks[146]. Debt and Liabilities - As of June 30, 2023, the group's borrowings amounted to approximately RMB 240.27 million, with a weighted average effective annual interest rate of 9.42%[14]. - The debt-to-asset ratio increased to 652.08% as of June 30, 2023, compared to 597.73% on December 31, 2022, primarily due to increased provisions for trade receivables and contract assets[17]. - The company has outstanding loans totaling approximately RMB 229.37 million that have matured and remain unpaid as of June 30, 2023[49]. - The company has violated loan agreement terms with eight banks and has not received waivers for these defaults, leading to demands for immediate repayment[49]. - The company is undergoing bankruptcy restructuring, with a court application submitted on September 25, 2023, due to its inability to meet financial obligations[51]. - The total liabilities as of June 30, 2023, were RMB 644,085 thousand, down from RMB 746,343 thousand at the end of 2022, indicating a decrease of approximately 13.7%[147]. Assets and Equity - Total assets decreased from RMB 126,870,000 to RMB 102,743,000, a decline of approximately 19% year-over-year[61]. - The total equity attributable to owners decreased from RMB (631,469,000) to RMB (567,226,000), reflecting an improvement of about 10% in the loss position[62]. - The company’s total issued and paid-up capital remained unchanged at RMB 564,001 thousand as of June 30, 2023[183]. - The company’s contract assets decreased to RMB 2,892 thousand as of June 30, 2023, from RMB 5,524 thousand as of December 31, 2022[197]. Shareholder Information - As of June 30, 2023, the company had a total of 240,930,645 shares issued, including 178,167,645 domestic shares and 62,763,000 H shares[34]. - Director Ye Yujing holds 67,694,000 shares, representing 37.99% of the relevant shares and 28.10% of the total share capital[33]. - Major shareholder Ningbo Meishan Free Trade Port Zone Yanxiang Investment Center owns 12,580,645 shares, accounting for 7.06% of the relevant shares and 5.22% of the total share capital[35]. - The company has a significant concentration of ownership among its directors and major shareholders, indicating potential governance implications[35]. - The total number of shares held by the top five shareholders represents a substantial portion of the company's equity, highlighting the influence of major stakeholders[35]. Corporate Governance - The company has maintained good corporate governance practices and has fully complied with applicable corporate governance codes, except for the separation of the roles of Chairman and CEO, which has not been implemented as of October 20, 2023[41]. - The audit committee, consisting of three independent non-executive directors, has reviewed the group's accounting principles and discussed risk management and internal controls for the six months ending June 30, 2023[44]. - The company is committed to maintaining high standards of business ethics and corporate governance to achieve long-term business goals[41]. - The company has confirmed that all directors and supervisors have adhered to the securities trading standard code during the six months ending June 30, 2023[40]. Market and Industry Outlook - The construction and decoration industry is transitioning from a high-speed development phase to a high-quality development phase, presenting both challenges and opportunities[6]. - The group is actively responding to national policies aimed at stimulating economic recovery, focusing on high-quality customer selection and leveraging technology in its construction decoration business[27]. - The group aims to optimize engineering management processes to enhance efficiency and risk control in response to changes in national industry management conditions[28]. - The group is exploring new business opportunities in renewable energy and technology innovation sectors while developing its core business[30]. Operational Highlights - The company has not reported any new product launches or technological advancements during this period[63]. - The company has not indicated any plans for market expansion or acquisitions in the near future[63]. - The company has established a partnership structure with various stakeholders, including limited partnerships and investment management companies, to enhance its investment capabilities[3]. Risk Management - The company faces multiple financial risks, including market risk, credit risk, and liquidity risk, with a focus on minimizing potential negative impacts on financial performance[134]. - As of June 30, 2023, the company has not established any hedging policies for foreign exchange risk, as most operations and bank borrowings are denominated in RMB[135]. - The company has not entered into any interest rate swaps to hedge against interest rate risk, which primarily arises from borrowings[138]. - The company applies a simplified approach to measure expected credit losses for trade receivables and contract assets, in accordance with HKFRS 9[140].

Financial Performance - In 2022, the company reported a revenue of RMB 189.1 million, a significant decline of 65.9% compared to RMB 554.5 million in 2021[5] - The gross profit for 2022 was RMB 27.9 million, with a gross margin of 14.8%, an increase from 13.0% in 2021[5] - The company incurred a net loss of RMB 975 million in 2022, compared to a loss of RMB 578.1 million in 2021, resulting in a net profit margin of -515.6%[5] - The group's revenue decreased by 65.90% from approximately RMB 554.51 million for the year ended December 31, 2021, to approximately RMB 189.11 million for the year ended December 31, 2022[39] - Gross profit fell by 61.41% from approximately RMB 72.29 million to approximately RMB 27.90 million, while the gross margin improved from 13.04% to 14.75%[39] - The net loss increased by 68.65% from approximately RMB 578.11 million to approximately RMB 975.00 million due to increased customer defaults in the real estate sector[40] Assets and Liabilities - Total assets decreased to RMB 126.9 million in 2022 from RMB 1,293.4 million in 2021, indicating a liquidity crisis[6] - Cash and cash equivalents decreased from approximately RMB 33.21 million to approximately RMB 12.88 million, primarily due to loan repayments and inability to secure new external financing[42] - Trade receivables dropped significantly from approximately RMB 647.11 million to approximately RMB 37.21 million, reflecting increased customer defaults[43] - Contract assets decreased from approximately RMB 415.66 million to approximately RMB 5.52 million, also due to increased customer defaults[43] - The debt-to-asset ratio surged to 597.73% from 73.43%, primarily due to further provisions made for trade receivables and contract assets[48] - As of December 31, 2022, the group had bank borrowings of approximately RMB 241.57 million, with a weighted average interest rate of 8.08%[45] - The group has outstanding bank loans totaling approximately RMB 229.37 million that have not been repaid as of the report date, involving 8 banks[105] Business Strategy and Operations - The company aims to focus on core business areas and explore new opportunities in renewable energy and technology innovation sectors[12][17] - The company plans to optimize project management processes to enhance efficiency and risk control[14] - The company intends to restructure its debt and attract new investors to mitigate financial risks[12] - The company will prioritize project completion and delivery while adopting a cautious order strategy[15] - The company aims to strengthen its talent pool by recruiting industry professionals to enhance management capabilities[16] - The company is committed to providing international first-class green decoration services while addressing debt and liquidity risks[18] - The company is actively responding to national policies to stimulate economic recovery, focusing on high-quality clients and leveraging technology to enhance competitiveness in the construction decoration industry[59] - The group plans to implement various measures to control administrative expenses to conserve cash flow[197] Corporate Governance - The company emphasizes the importance of corporate governance and strategic planning in its operations[21][22] - The company has a strategic committee and a remuneration committee to guide its strategic development and governance[22][24] - The board of directors includes several key members, with significant shareholdings, including 37.99% and 28.10% held by the chairman and CEO[111] - The company has established a governance framework ensuring that more than one-third of the board consists of independent non-executive directors, providing independent and objective opinions[159] - The audit committee is responsible for reviewing the financial reporting procedures and internal control systems, ensuring compliance with accounting principles[170] - The company has appointed a new CEO, Mr. Wu Jianzhang, effective October 20, 2023, following the resignation of Mr. Ye Yujing[150] Legal and Compliance Issues - The company has experienced an increase in litigation cases, impacting its operational capabilities[38] - As of December 31, 2022, the group was involved in 128 lawsuits with a total claim amount of approximately RMB 302.85 million, primarily related to bank debt defaults and disputes over labor and material payments[132] - The group has made provisions of approximately RMB 31.48 million for potential liabilities, interest, and penalties related to the lawsuits[132] - The auditor was unable to express an opinion on the group's financial statements for the year ended December 31, 2022, due to the limitations in obtaining sufficient appropriate audit evidence[200] Market Conditions - The construction and decoration industry in China faced significant challenges in 2022 due to the ongoing COVID-19 pandemic and tightening regulatory policies, leading to a slowdown in economic growth[37] - Despite the challenges, there remains significant growth potential in the construction decoration industry, supported by market demand and potential policy improvements from the government[37] - The group faces cyclical demand for its services, directly related to real estate development and construction activity levels in China, which are sensitive to economic fluctuations[70] Employee and Shareholder Information - As of December 31, 2022, the group had 70 employees, a decrease from 214 employees as of December 31, 2021, with employee costs amounting to approximately RMB 13.7 million compared to RMB 22.6 million in the previous year[56] - The total percentage of shares held by the top five shareholders is approximately 54.67%[116] - The workforce gender ratio was 46% male and 54% female, with no measurable targets set for gender diversity[176] Future Outlook - The company aims to become a leading international green decoration service provider, focusing on debt restructuring and attracting new investors to mitigate debt and liquidity risks[58] - The effectiveness of the going concern assumption in the financial statements is contingent upon the success of the measures being taken, which are subject to significant uncertainties[198]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 GUANGDONG ADWAY CONSTRUCTION (GROUP) HOLDINGS COMPANY LIMITED* 廣 東 愛 得 威 建 設（ 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：6189） 截至2023年6月30日止六個月之 中期業績公告 財務摘要 （除另有說明外，以人民幣百萬元表示） 截至6月30日止六個月 2023年 2022年 變動 （未經審核）（未經審核） 收益 43.79 104.83 -58.23% 毛利 6.96 24.28 -71.33% 毛利率 15.89% 23.16% -31.39% ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 GUANGDONG ADWAY CONSTRUCTION (GROUP) HOLDINGS COMPANY LIMITED* 廣 東 愛 得 威 建 設（ 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：6189） 截至2022年12月31日止年度之 年度業績公告 財務摘要 （除另有說明外，以人民幣百萬元表示） 截至12月31日止年度 2022年 2021年 變動 收益 189.11 554.51 –65.90% 毛利 27.90 72.29 –61.41% 毛利率 14.75% 13.04% 13.15% ...

Financial Performance - The company's revenue decreased by 58.7% from approximately RMB 254.6 million in the first half of 2021 to approximately RMB 105.1 million in the first half of 2022[16]. - The main business revenue fell by 58.8% from approximately RMB 254.2 million in the first half of 2021 to approximately RMB 104.8 million in the first half of 2022, primarily due to financial constraints[16]. - The company's gross profit decreased by 44.2% from approximately RMB 43.6 million in the first half of 2021 to approximately RMB 24.3 million in the first half of 2022[16]. - The net loss for the first half of 2022 was approximately RMB 91.8 million, compared to a net profit of approximately RMB 4.1 million in the first half of 2021[17]. - Total operating revenue for the first half of 2022 was RMB 105,067,299.21, a decrease of 58.8% compared to RMB 254,635,619.10 in the same period last year[77]. - The total profit for the first half of 2022 was a loss of RMB 91,764,250.80, compared to a profit of RMB 5,192,877.14 in the same period last year[77]. - Basic and diluted earnings per share for the first half of 2022 were both RMB -0.38, compared to RMB 0.02 in the same period last year[79]. - The company reported a significant increase in credit impairment losses, amounting to RMB -118,576,465.96, compared to RMB -41,782,614.42 in the previous year[77]. Cash Flow and Liquidity - As of June 30, 2022, the company's cash and cash equivalents decreased to approximately RMB 14.1 million from RMB 33.2 million as of December 31, 2021, primarily due to business contraction and inability to secure external financing[18]. - Cash flow from operating activities generated a net cash inflow of RMB 1,903,312.29, significantly lower than RMB 21,144,949.21 in the same period last year[82]. - Cash flow from investing activities resulted in a net cash outflow of RMB 11,925.00, compared to a net inflow of RMB 3,470,636.85 in the previous year[83]. - Cash flow from financing activities showed a net cash outflow of RMB 8,477,201.71, compared to a net outflow of RMB 102,465,420.80 in the same period last year[83]. - The total current assets decreased from RMB 1,228.99 million at the end of the previous year to RMB 996.17 million as of June 30, 2022, representing a decline of approximately 19%[66]. - The group is in ongoing communication with banks to avoid extreme measures regarding the overdue loans, but expects that the debt default situation may not improve by the end of 2022[64]. Assets and Liabilities - Accounts receivable decreased from approximately RMB 647.0 million as of December 31, 2021, to approximately RMB 495.3 million as of June 30, 2022, due to enhanced collection efforts and increased bad debt provisions[19]. - Total liabilities decreased from RMB 949.75 million to RMB 804.99 million, a decline of approximately 15%[68]. - The company's debt-to-asset ratio increased to 76% from 73% as of December 31, 2021, primarily due to significant credit impairment losses and asset impairments[25]. - The total equity attributable to the parent company decreased from RMB 346,765,842.65 to RMB 257,762,346.16, a decline of approximately 25.6%[75]. - The company reported a significant increase in special reserves from RMB 131,626.07 to RMB 1,723,274.79, an increase of approximately 1205.5%[75]. Corporate Governance and Compliance - The company has maintained good corporate governance practices and processes throughout the six months ending June 30, 2022[55]. - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions, except for the separation of the roles of chairman and CEO[57]. - The company is required to inform the market of all material information for shareholders and investors to evaluate its condition[40]. - The company is under pressure to remedy the issues or face potential delisting after the 18-month suspension period[37]. Strategic Initiatives - The company aims to focus on high-quality development in the industrial, infrastructure, and public building sectors in 2022[11]. - The company plans to optimize project management processes to enhance management quality and efficiency[12]. - The company intends to deepen comprehensive governance and seek strategic investors to address funding challenges[15]. - The company is negotiating with several financial institutions to obtain new financing sources or restructure cash loans[103]. Operational Challenges - The company has faced significant operational challenges, including multiple lawsuits and judicial freezes on some bank accounts, raising doubts about its ability to continue as a going concern[102]. - The company has been involved in significant losses in 2020 and 2021, which have continued into 2022[102]. - The company is actively communicating with banks to extend loan maturities and provide sufficient asset collateral and guarantees from related parties[103]. Employee and Workforce - As of June 30, 2022, the company had 175 employees, down from 214 employees as of December 31, 2021, with employee costs amounting to approximately RMB 8.7 million for the six months ended June 30, 2022[32].

Financial Performance - In 2021, the company's revenue was RMB 554.4 million, a decrease of 39.1% compared to RMB 910.6 million in 2020[8] - The gross profit for 2021 was RMB 72.8 million, resulting in a gross margin of 13.1%, down from 16.7% in 2020[8] - The net loss for the year was RMB 578.1 million, with a net profit margin of -104.1%, compared to a loss of RMB 331.7 million in 2020[8] - The total assets decreased to RMB 1,293.4 million in 2021 from RMB 2,153.0 million in 2020, reflecting a significant reduction in both non-current and current assets[9] - The total equity decreased to RMB 343.7 million in 2021 from RMB 950.1 million in 2020, indicating a significant decline in shareholder equity[9] - Revenue decreased by 39.0% from approximately RMB 910.6 million in 2020 to approximately RMB 555.4 million in 2021, primarily due to reduced industry order demand and the ongoing impact of the COVID-19 pandemic[50] - Gross profit fell by 52.1% from approximately RMB 151.9 million in 2020 to approximately RMB 72.8 million in 2021, with the gross margin declining from 16.7% to 13.1%[51] - The net loss for 2021 was approximately RMB 578.1 million, an increase of 67.7 percentage points compared to a net loss of approximately RMB 331.7 million in 2020, representing -104.1% of recorded revenue[53] Strategic Focus and Future Plans - The company plans to focus on infrastructure and healthcare markets in 2022, aiming for high-quality development[18] - Marketing strategies will shift from scale to quality, with a focus on evaluating customer payment capabilities to reduce risk[19] - The company aims to optimize project management processes to enhance efficiency and quality[20] - Continued investment in green materials and smart home technology is expected to drive future growth[16] - The company has provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion RMB[27] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[27] - A strategic acquisition of a local competitor is in progress, which is anticipated to enhance the company's service offerings and increase revenue by 5%[27] - The company is investing 50 million RMB in research and development to innovate sustainable building materials[27] Operational Challenges - The construction decoration industry is facing significant pressure due to the ongoing impact of the COVID-19 pandemic and macroeconomic controls, yet it still has substantial market demand for high-quality development[41] - The company aims to enhance its competitiveness and management level to pursue stable development and healthy cash flow amidst industry challenges[41] - The construction decoration industry is transitioning from reliance on real estate clients to focusing on industrial and public building clients[41] - The company faced significant business decline since the second half of 2021, primarily due to the impact of the real estate industry and ongoing bank loan contractions, leading to cash flow pressures and severe employee turnover[177] Legal and Compliance Issues - As of December 31, 2021, the company was involved in ongoing litigation amounting to approximately RMB 38.1 million, with an estimated potential liability of RMB 18.7 million recognized as a provision[64] - The group was involved in 34 lawsuits totaling approximately RMB 38.1 million, primarily related to labor and material payment disputes[134] - As of December 31, 2021, the group had approximately RMB 13.5 million in bank deposits frozen by Chinese courts, with estimated liabilities of about RMB 18.7 million[134] Corporate Governance - The company has maintained good corporate governance practices and processes throughout the year ending December 31, 2021[143] - The board of directors consists of independent non-executive directors, ensuring more than one-third of the board is independent[151] - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions, except for the separation of the roles of chairman and CEO[143] - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Strategic Committee to oversee various aspects of the business[145] Risk Management - The company is exposed to financial risks including interest rate risk, credit risk, and liquidity risk, and regularly assesses these risks to implement appropriate measures[78] - The company has established appropriate internal control and risk management policies to ensure assets are not misappropriated and comply with relevant regulations[186] - An internal control risk management team has been formed to improve the effectiveness of risk management systems, focusing on business continuity and cash flow management[187] Employee and Compensation - The group had 214 employees and incurred employee costs of approximately RMB 24.8 million[127] - Total compensation for directors, supervisors, and the CEO for the year ended December 31, 2021, amounted to RMB 2,351,000, compared to RMB 2,439,000 for the previous year, reflecting a decrease of approximately 3.6%[87] - The highest-paid individuals in the group received a total of RMB 647,000 in compensation for the year ended December 31, 2021, which is an increase of 143.3% from RMB 266,000 in 2020[88] Environmental, Social, and Governance (ESG) - The sixth Environmental, Social, and Governance (ESG) report was published, detailing policies and practices in environmental protection, working environment, and community engagement for the year ending December 31, 2021[199] - The company is committed to minimizing adverse environmental impacts and has established an environmental management system certified by ISO 14001[200] - The annual costs for compliance with applicable environmental laws and regulations are not significant, and future compliance costs are also expected to remain low[200]

Financial Performance - The company's revenue increased by 59.2% from approximately RMB 159.9 million for the six months ended June 30, 2020, to approximately RMB 254.6 million for the six months ended June 30, 2021[16]. - The main business revenue rose by 59.1% from approximately RMB 159.8 million to approximately RMB 254.2 million during the same period, indicating a recovery from the adverse impacts of COVID-19[16]. - The net profit for the six months ended June 30, 2021, was approximately RMB 4.1 million, a turnaround from a net loss of RMB 21.5 million for the same period in 2020, representing 1.6% of recorded revenue[17]. - Total operating revenue for the first half of 2021 reached RMB 254,635,619.10, a significant increase of 59.2% compared to RMB 159,916,692.35 in the same period of 2020[67]. - The company reported a net profit of RMB 4,066,300.06, recovering from a net loss of RMB 21,467,148.13 in the first half of 2020[68]. - Operating profit for the first half of 2021 was RMB 5,975,689.19, compared to an operating loss of RMB 38,214,010.74 in the same period last year[67]. Cost and Expenses - The gross profit increased by 40.2% from approximately RMB 31.1 million to approximately RMB 43.6 million, although the gross profit margin decreased from 19.5% to 17.1% due to intensified competition[16]. - Total operating costs amounted to RMB 249,865,845.47, up 46.5% from RMB 170,453,153.53 year-on-year[67]. - Research and development expenses increased to RMB 9,539,901.34, a rise of 85.5% from RMB 5,147,061.14 in the previous year[67]. - The company experienced a significant reduction in tax expenses, reporting RMB 1,126,577.08 compared to a tax benefit of RMB 11,541,420.99 in the previous year[67]. - The company recorded a decrease in financial expenses to RMB 10.85 million from RMB 14.76 million, indicating improved cost management[70]. Assets and Liabilities - As of June 30, 2021, the company's total assets amounted to RMB 1,959,665,743.46, a decrease from RMB 2,152,753,222.28 at the end of the previous year, representing a decline of approximately 8.97%[56]. - The company's current assets totaled RMB 1,796,016,665.74, down from RMB 1,984,711,060.50, indicating a decrease of about 9.47% year-over-year[56]. - The company's current liabilities were RMB 1,019,789,096.64, a reduction from RMB 1,199,590,684.72, reflecting a decrease of approximately 15.03%[58]. - Total liabilities as of June 30, 2021, were RMB 1,031,246,276.23, down from RMB 1,211,777,299.99, indicating a reduction of about 14.89%[65]. - The debt-to-asset ratio remained stable at 21% as of June 30, 2021, consistent with December 31, 2020[24]. Cash Flow - Cash and cash equivalents decreased from RMB 159.5 million as of December 31, 2020, to RMB 66.1 million as of June 30, 2021, primarily due to fewer bank loans obtained during the period[20]. - Cash flow from operating activities generated a net amount of RMB 21.14 million, a recovery from a negative cash flow of RMB 74.87 million in the same period last year[72]. - Total cash inflow from financing activities was RMB 58,399,875.00, down 77.5% from RMB 259,250,000.00 in the previous year[76]. - Cash outflow for purchasing goods and services was RMB 503,561,047.23, a decrease of 10.5% compared to RMB 562,403,316.66 last year[76]. Shareholder Information - The ownership structure shows that Ye Yujing holds 37.99% of the company's shares, while Ye Xiujin holds 8.70%[39]. - Major shareholders hold approximately 7.06% and 5.22% of the total share capital, with Ningbo Meishan Free Trade Port Zone Yixiang Investment Center (Limited Partnership) owning 12,580,645 shares[41]. - The total number of issued shares is 240,930,645, which is used to calculate the ownership percentages[40]. - The company has a significant concentration of ownership, with several entities holding over 9% of the shares[41]. Corporate Governance - The company maintained good corporate governance practices throughout the reporting period, adhering to all relevant codes except for the separation of the roles of Chairman and CEO[53]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim results for the six months ended June 30, 2021, with no objections raised regarding the accounting policies adopted[54]. - The financial report has been approved by the company's board of directors, ensuring its credibility and compliance with regulatory requirements[93]. Strategic Initiatives - The company aims to focus on niche markets, particularly in the healthcare and hotel sectors, and plans to establish a business unit for the Greater Bay Area[11]. - The company is committed to optimizing project management processes and enhancing management quality and efficiency through innovation and centralized procurement[13]. - The company plans to strengthen its talent reserve and enhance team cohesion and communication capabilities[14]. Changes in Management - The company has undergone changes in its board of directors, with Mr. Ye Niangting resigning as an executive director effective June 11, 2021[44]. - Mr. Zuli resigned as a supervisor due to personal career development reasons, effective at the conclusion of the annual general meeting[46]. - The company has appointed Mr. Li Rui as a supervisor, effective upon the conclusion of the annual general meeting[47]. Accounting Policies - The company changed its accounting standards from Hong Kong Financial Reporting Standards to Chinese Accounting Standards, effective January 4, 2021[35]. - The accounting policies and estimates comply with the accounting standards issued by the Ministry of Finance, ensuring a true and complete reflection of the company's financial status[98]. - The financial statements are prepared in accordance with significant accounting policies, including adjustments to capital reserves and retained earnings when acquiring minority stakes in subsidiaries[111].

Financial Performance - The company's revenue for 2020 was RMB 910.6 million, a decrease of 41% compared to RMB 1,543.0 million in 2019[7] - The gross profit for 2020 was RMB 151.9 million, with a gross margin of 16.7%, an increase from 16.0% in 2019[7] - The net loss for 2020 was RMB 331.7 million, resulting in a net profit margin of -36.4%[7] - The company's revenue decreased by 41.0% from approximately RMB 1,543.0 million in 2019 to approximately RMB 910.6 million in 2020[49] - The gross profit fell by 38.4% from approximately RMB 246.4 million in 2019 to approximately RMB 151.9 million in 2020, while the gross profit margin increased from 16.0% to 16.7%[49] - The net loss for 2020 was approximately RMB 331.7 million, a significant decline of 816.5% compared to a net profit of approximately RMB 46.3 million in 2019, representing -36.4% of recorded revenue[51] Assets and Liabilities - Non-current assets increased to RMB 168.0 million in 2020 from RMB 111.1 million in 2019[8] - Current assets decreased to RMB 1,984.7 million in 2020 from RMB 2,673.5 million in 2019[8] - Total equity decreased to RMB 950.1 million in 2020 from RMB 1,278.3 million in 2019[8] - As of December 31, 2020, the company had cash and cash equivalents of approximately RMB 159.5 million, down from RMB 266.9 million in 2019[52] - Accounts receivable decreased significantly from RMB 1,234.5 million as of December 31, 2019, to RMB 607.8 million as of December 31, 2020, primarily due to a substantial increase in impairment provisions[53] - Contract assets declined from RMB 1,001.2 million as of December 31, 2019, to RMB 962.5 million as of December 31, 2020, influenced by the timing of customer progress report sign-offs and increased impairment provisions[54] - Accounts payable decreased from RMB 688.4 million as of December 31, 2019, to RMB 512.3 million as of December 31, 2020, due to a decline in operating revenue and procurement costs[56] - Bank borrowings amounted to RMB 364.3 million as of December 31, 2020, down from RMB 401.9 million as of December 31, 2019, with no inter-company loans reported[57] - The debt-to-asset ratio increased to 21% as of December 31, 2020, from 11% as of December 31, 2019, primarily due to a decrease in cash and cash equivalents[58] - Capital expenditures decreased from RMB 0.4 million for the year ended December 31, 2019, to RMB 0.3 million for the year ended December 31, 2020, as the company focused on controlling capital spending[59] Strategic Focus and Future Plans - The company plans to focus on innovation and enhance engineering management in 2021[17] - The company aims to expand its market presence in the Greater Bay Area and new regions[20] - The company will continue to develop its strengths in green medical and smart home technology[20] - The strategic focus will remain on integrating industry, finance, technology, and branding to enhance competitive advantages[20] - The company plans to focus on the healthcare and hotel sectors, establishing a business unit for the Greater Bay Area to enhance competitive positioning[45] - The company aims to optimize project management processes to improve efficiency and leverage centralized procurement for better quality assurance[46] - The company aims to enhance competitiveness by focusing on niche markets, particularly in the healthcare and hotel sectors, and expanding in the Guangdong-Hong Kong-Macao Greater Bay Area[68] - The company plans to optimize project management processes and improve management quality and efficiency through innovation and centralized procurement[69] Corporate Governance and Leadership - The company has a significant leadership team, including the founder and CEO, who has been in the role since April 10, 2012[21] - The company has a diverse board of directors with expertise in finance, construction, and project management[26][27] - The company has a strong emphasis on corporate governance and strategic planning, with key executives providing insights into business strategies[22] - The company has been recognized for its contributions to the construction industry, with awards for outstanding entrepreneurs and project managers[21] - The company has a significant shareholding structure, with key executives holding substantial stakes in the business[24] - The company has established partnerships and collaborations to enhance its investment and operational capabilities in the market[26] - The board consists of five executive directors, one non-executive director, and three independent non-executive directors, ensuring a diverse leadership structure[146] - The board has established four committees: audit, remuneration, nomination, and strategic committees, each with defined responsibilities[152] - The company has fully complied with the corporate governance code, with the exception of the separation of the roles of Chairman and CEO, which are currently held by the same individual[145] Risk Management - Financial risks include interest rate risk, credit risk, and liquidity risk, with management regularly meeting to analyze and formulate measures to manage these risks[83] - The company has implemented risk assessment procedures to ensure the effectiveness of internal controls related to project management and revenue recognition[101] - The supervisory board has confirmed that the company's operations comply with relevant laws and regulations, and the internal control system is comprehensive[142] - The board has confirmed the effectiveness of the internal control and risk management systems, identifying areas for improvement but no significant issues found[177] Employee and Social Responsibility - The group contributed a total of RMB 210,000 to various organizations for COVID-19 relief efforts during the year ending December 31, 2020, compared to RMB 21,000 in 2019[194] - The group has established a safety management system certified by OHSAS 18001, ensuring a safe working environment for employees[193] - The group employs a structured recruitment process through a dedicated recruitment website and partnerships with professional institutions[190] - The group has a union in place to protect employee rights and facilitate management decision-making[190] - The group emphasizes regular training for employees to enhance their skills and technical expertise[190] - As of December 31, 2020, the total number of employees in the group was 335, with 116 in project management and 24 in R&D[190] Shareholder Information - The company has a competitive compensation system for its management team, regularly reviewing and updating it to ensure market competitiveness[99] - The total remuneration for directors, supervisors, and the CEO for the year ended December 31, 2020, amounted to RMB 2,439,000[88] - The total number of issued shares is 240,930,645 as of December 31, 2020[123] - Major shareholders include Ningbo Meishan Free Trade Port Area Yixiang Investment Center holding 12,580,645 shares (7.06% of total shares) and Shenzhen Qianhai Xingwang Investment Management Co., Ltd. holding 22,580,645 shares (12.67% of total shares)[119] - The ownership structure indicates that Shenzhen Qianhai Xingwang Investment Management controls the shares held by Ningbo Yixiang, with significant stakes held by various partners[121] - The company has a diverse shareholder base, with multiple entities holding significant percentages of shares, including 9.54% held by Shenzhen Tongchuang Weiye Asset Management Co., Ltd.[119] Compliance and Audit - The new auditor, Lixin, was appointed on January 4, 2021, following the resignation of PwC, with the change approved by shareholders on March 5, 2021[94] - The auditor, Lixin CPA, has been appointed to audit the consolidated financial statements for the year ending December 31, 2020[139] - The audit committee reviewed the consolidated financial statements for the year ended December 31, 2020, and assessed the effectiveness of internal audit functions[156] - The company has adopted measures to ensure compliance with the non-competition agreement with controlling shareholders, which prohibits them from engaging in direct or indirect competition with the company's main business[136] Environmental Management - The company has implemented an environmental management system and obtained ISO 14001 certification to mitigate adverse environmental impacts[189] - The company is committed to complying with applicable environmental laws and regulations, with no significant compliance costs expected in the future[189] - The report covers the group's performance in fulfilling environmental and social responsibilities from January 1 to December 31, 2020[196] - The group adheres to the ESG reporting guidelines set forth by the Hong Kong Stock Exchange, ensuring transparency and accountability in its operations[197]