Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 146.2 million, a decrease of 61.8% compared to the same period in 2023[4] - Net profit for the same period was RMB 48.3 million, down 74.7% year-on-year, with a net profit margin of 33.0%[4] - Basic earnings per share for the period were RMB 1.20, a decrease of RMB 4.44 compared to the previous year[4] - Total comprehensive income for the period was RMB 50.6 million, compared to RMB 207.2 million in the same period last year[8] - The group reported a pre-tax profit of RMB 29,388,000 for the six months ended June 30, 2024, down from RMB 52,874,000 in the same period of 2023, indicating a decrease of 44.5%[30] - Other net income for the period was RMB 13.2 million, down from RMB 17.4 million in 2023, primarily due to reduced interest income from third-party loans[74] - Net profit for the period was RMB 48.3 million, a decline of 74.7% compared to RMB 191.4 million in the same period of 2023, mainly due to the drop in revenue[77] Cash and Receivables - Cash and cash equivalents as of June 30, 2024, amounted to RMB 2,222.1 million, an increase from RMB 1,835.8 million at the end of 2023[12] - Trade and other receivables decreased to RMB 722.2 million from RMB 1,121.5 million at the end of 2023[12] - Trade receivables and notes receivable as of June 30, 2024, amounted to RMB 442,013,000, an increase from RMB 396,496,000 as of December 31, 2023[38] - Other receivables primarily included interest-bearing advances to third parties amounting to RMB 285,000,000 as of June 30, 2024, down from RMB 747,953,000 as of December 31, 2023[39] - Trade and other receivables decreased by 35.6% to RMB 722.2 million from RMB 1,121.5 million as of December 31, 2023, due to a reduction in third-party loans[79] Liabilities and Equity - Current liabilities decreased to RMB 565.6 million from RMB 702.3 million at the end of 2023[13] - Total equity attributable to equity shareholders of the company increased to RMB 2,515.0 million from RMB 2,416.5 million at the end of 2023[15] - Contract liabilities decreased by 18.8% to RMB 251.7 million from RMB 309.9 million as of December 31, 2023, reflecting a reduction in received payments[82] Operational Highlights - The company signed a total of 433 projects with a cumulative signed area of 54,478,724 square meters, achieving contract sales of 7.2 billion yuan and a sales area of 1,183,521 square meters in the first half of 2024[47] - The company signed 15 new construction projects during the period, with a total contract area of 1,385,900 square meters, a decrease of 73.5% compared to the same period in 2023[58] - The contract sales amount for projects under management was 7,172 million yuan, a year-on-year decrease of 45.2%, with a contract sales area of 1,183,521 square meters, down 42.8% year-on-year[58] - As of June 30, 2024, the company had 262 projects under management, with a total construction area of 31,619,915 square meters[58] Market Conditions - The real estate market is experiencing downward pressure, with a year-on-year reduction in real estate investment, sales performance, and project commencement rates[48] - In the first half of 2024, local governments issued 341 policy relaxations across 222 provinces and cities to stimulate the real estate market, including lowering down payment ratios to 15% and removing mortgage rate limits[50] - The number of construction enterprises has exceeded 90, with 70 subsidiaries from the top 200 real estate companies, indicating increased competition in the construction market[52] Strategic Initiatives - The company is focusing on the third and fourth-tier markets by providing comprehensive real estate development and operational services, enhancing brand influence[55] - The successful implementation of the city partner model has facilitated collaboration among member enterprises to promote urbanization and social progress in the Central Plains region[56] - The company aims to enhance competitiveness through innovation and strategic development, focusing on management, product, and investment expansion[61] - The company plans to optimize its investment and development mechanism, enhancing employee engagement in project acquisition[64] - The company is committed to improving its full-process management to ensure profitability and risk control for each project[65] Corporate Governance - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2024[4] - The group has not adopted any new standards or interpretations that are not yet effective during the current accounting period[23] - The audit committee has reviewed the interim results for the six months ending June 30, 2024[112] - The chairman of the board is Mr. Hu Baosen, with executive directors including Mr. Hu Bing, Mr. Chen Aiguo, and Mr. Duan Juwei[119] Future Outlook - The company anticipates a transformation in the construction industry towards high-quality development, potentially creating a new market worth over 100 billion yuan[69] - The company will continue to respond to national policies and market demands, promoting standardization and leading the construction industry towards high-quality development[69]

Financial Performance - For the year ended December 31, 2023, revenue was RMB 468.4 million, a decrease of 22.7% compared to 2022[4] - Net profit for the year was RMB 201.2 million, down 33.8% from 2022, with a net profit margin of 43.0%[4] - Basic earnings per share for the year were RMB 5.59, compared to RMB 9.25 in 2022[5] - Total comprehensive income for the year was RMB 200.186 million, down from RMB 304.325 million in 2022[7] - The pre-tax profit for 2023 was RMB 247,219,000, down 38.7% from RMB 403,562,000 in 2022[42] - The company's income tax expense for 2023 was RMB 45,982,000, a decrease of 53.8% from RMB 99,662,000 in 2022[41] - The effective tax rate for the year was 18.6%, down from 24.7% in 2022, mainly due to a one-time withholding tax on dividends from a subsidiary[117] - Other income increased significantly to RMB 73,888,000 in 2023 from RMB 35,565,000 in 2022, representing a growth of 73.8%[34] Assets and Liabilities - Cash and cash equivalents as of December 31, 2023, were RMB 1,835.783 million, an increase from RMB 1,564.617 million in 2022[8] - Total assets as of December 31, 2023, were RMB 3,082.641 million, compared to RMB 2,650.766 million in 2022[8] - The company reported a decrease in trade and other receivables to RMB 1,121.515 million from RMB 661.121 million in 2022[8] - Trade and other payables totaled RMB 300,361,000 in 2023, up from RMB 116,201,000 in 2022, indicating a significant increase of 158.5%[72] - Lease liabilities as of December 31, 2023, were RMB 7,846,000, compared to RMB 3,098,000 in 2022, marking an increase of 153.5%[74] - Current tax liabilities decreased from RMB 104,234,000 in 2022 to RMB 88,198,000 in 2023, a reduction of 15.4%[75] - Deferred tax assets rose to RMB 28,485,000 in 2023 from RMB 17,934,000 in 2022, reflecting an increase of 58.5%[78] Shareholder Information - The board did not recommend a final dividend for the year ended December 31, 2023[4] - The company declared an interim dividend of HKD 3.74 per ordinary share for the six months ended June 30, 2023, compared to HKD 5.81 in the previous year[86] - The total issued share capital increased to 3,691,302,120 shares in 2023 from 3,289,706,120 shares in 2022, representing an increase of 12.2%[81] - The company issued 343,140,000 shares in May 2023, raising a total of RMB 247,330,000[81] - The company distributed a total of RMB 88.6 million in dividends during the year[130] Operational Highlights - The company operates primarily in Henan Province and other provinces in the People's Republic of China, providing real estate agency services[12] - The group operates solely in China, with all revenue and non-current assets generated from its business activities in the region[33] - The company has a total of 877 full-time employees, including 499 assigned to project companies for real estate development[144] - The company has engaged in various lease agreements for properties used as offices and employee accommodations, with initial lease terms typically ranging from 2 to 5 years[51] - The company has provided loans to existing clients for the purpose of purchasing and developing land in Central China, aligning with its "Central China Strategy"[132] Market Conditions - The real estate market in China faced significant pressure in 2023, with nearly 70% of the top 100 real estate companies experiencing a decline in performance[89] - The government implemented policies to support home purchases, including lowering down payment ratios and interest rates[89] - The overall recovery trend in the Chinese economy remains uncertain, with structural differentiation across various sectors and industries[88] Strategic Initiatives - The company launched the "Zhongyuan Construction 3.0 Agency Model" in September 2023 to enhance competitiveness and adapt to market trends[93] - Zhongyuan Construction aims to enhance its product competitiveness and transform product strength into marketing strength through innovation and upgrading of its product system[104] - The company plans to focus on government construction and expand into provincial markets, strengthening cooperation with government platform companies[102] Compliance and Governance - The audit committee, consisting of three independent non-executive directors, has reviewed the group's audited consolidated financial statements for the year[151] - The company has confirmed compliance with all applicable corporate governance codes during the year[151] - The company has established a high level of corporate governance standards to protect stakeholders' interests[150]

Business Expansion and Performance - As of June 30, 2023, the Group has expanded its business to 124 counties and cities across 8 provinces, with a cumulative planning GFA exceeding 50 million m² and total sales amounting to approximately RMB 170 billion[8]. - The Company recorded nearly 401 projects with a cumulative delivery of over 100,000 units, serving more than 400,000 owners, achieving a repetitive cooperation rate of 68% with 207 partners[8]. - The overall performance of the real estate market in Henan Province improved due to relaxed property market policies, aiding in the restoration of market expectations[20]. - In the first half of the year, the company achieved contract sales of RMB 13.1 billion, with a construction area of approximately 2.071 million square meters, maintaining a leading position in the industry[29]. - The Group achieved revenue of RMB 382.4 million for the six months ended June 30, 2023, representing a year-on-year increase of 1.1% compared to RMB 378.1 million in the same period of 2022[79]. - The total contracted area completed by the Company reached 5.24 million square meters, a significant increase of 369% year-on-year, with 21 government project management projects totaling 3.08 million square meters[99]. - The Company delivered 49 batches of approximately 30,000 units, totaling 3.78 million square meters, which is a 199% year-on-year increase, with 24 batches delivered ahead of schedule[100]. - The Group's revenue from projects in Henan Province accounted for 93.7% of total revenue, while projects outside Henan contributed 6.3%[79]. Financial Performance - Revenue for the first half of 2023 was RMB 382.4 million, a slight increase of 1.1% compared to RMB 378.1 million in the same period last year[60]. - Net profit decreased by 6.5% to RMB 191.4 million from RMB 204.6 million year-on-year, with a net profit margin of 50.0%, down from 54.1%[60]. - Total cash and cash equivalents as of June 30, 2023, were RMB 1,655,482,000, reflecting a 5.8% increase from RMB 1,564,617,000 as of December 31, 2022[138]. - Total assets increased by 17.8% to RMB 3,171,807,000 as of June 30, 2023, compared to RMB 2,693,436,000 as of December 31, 2022[138]. - Total liabilities rose by 20.4% to RMB 621,092,000 as of June 30, 2023, from RMB 515,644,000 as of December 31, 2022[138]. - The net proceeds from the subscription of shares amounted to approximately HK$274,069,150, intended to strengthen the financial position and expand the shareholder base[174]. - The Company maintained a net cash position with a gearing ratio of nil as of June 30, 2023, indicating no borrowings[186]. Market Trends and Future Outlook - In the first half of 2023, the real estate market showed initial improvement but faced a downturn in the second quarter due to unmet demand and insufficient policy support[20]. - The real estate sector is expected to recover in the second half of 2023, with over 70 real estate enterprises anticipated to develop project management businesses[30]. - The project management market is expected to exhibit tremendous potential, particularly in government project management and capital project management[142]. - The real estate industry is expected to see increased competition with over 70 brand enterprises entering the project management sector[101]. Strategic Initiatives and Innovations - The Company plans to enhance its business model by increasing government project management efforts and improving product control capabilities[24]. - The Company aims to provide construction services to small and medium-sized developers, enhancing their management experience and operational efficiency[25]. - The Company plans to enhance communication with suppliers and establish a Purchasing Alliance to secure demand and improve procurement efficiency, aiming for significant cost reductions[72]. - The Company aims to establish a trustworthy project management service platform by innovating business models and enhancing management practices[31]. - The company plans to enhance its competitive edge through product innovation and optimization of services, focusing on customer satisfaction[30]. - The Company aims to enhance its competitiveness in government project management by exploring innovative investment models and introducing capital companies for financial support[151]. - The company plans to establish a design supply chain resource integration platform to improve product standardization and cost efficiency[159]. Recognition and Awards - The Group has been recognized as one of the "2023 China Outstanding Companies for Real Estate Project Management Operations" and "2023 TOP 5 China Real Estate Project Management Companies in terms of Overall Strengths"[8]. - The company was recognized as one of the "2023 Outstanding Project Management Operation Enterprises" for its strong business operations and delivery capabilities[49]. - The company received recognition as a "2023 Excellent Enterprise in Real Estate Agency Operations" in China, reflecting its strong delivery capabilities and customer reputation[150]. Risk Management and Financial Controls - The company will implement full-cycle risk control measures to ensure product quality throughout the project process[67]. - The Company conducted credit risk assessments prior to granting loans, focusing on historical settlement records and past cooperation with customers[194]. - The loans are unguaranteed and unsecured, with the Company expecting to benefit from project management contracts as a result of these loans[190]. - The Company has adopted comprehensive treasury policies and internal control measures to manage financial resources effectively[185].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 382.4 million, an increase of 1.1% compared to RMB 378.1 million in the same period of 2022[12]. - Net profit for the same period was RMB 191.4 million, a decrease of 6.5% from RMB 204.6 million in 2022, resulting in a net profit margin of 50.0%[12]. - Basic earnings per share for the period were RMB 5.64, down RMB 0.58 from RMB 6.22 in the previous year[12]. - Total comprehensive income for the period was RMB 207.2 million, compared to RMB 203.9 million in the same period last year[16]. - The group reported a pre-tax profit of RMB 52,874,000 for the six months ended June 30, 2023, compared to RMB 60,769,000 in the same period of 2022, indicating a decrease of 13.9%[34]. - Other net income for the period was RMB 17.4 million, down from RMB 23.0 million in 2022[22]. - The group reported a net loss from foreign exchange of RMB 17,679,000 for the six months ended June 30, 2023, compared to a gain of RMB 431,000 in the same period of 2022[55]. - Personnel costs for the six months ended June 30, 2023, were RMB 69,526,000, compared to RMB 67,121,000 in 2022, indicating an increase of 3.6%[34][57]. - Personnel costs amounted to RMB 67.1 million, a decrease of 3.5% from RMB 69.5 million in the same period of 2022, attributed to organizational restructuring and a reduction in employee numbers[114]. - Other operating expenses were RMB 40.4 million, an increase of 24.5% from RMB 32.5 million in the same period of 2022, mainly due to increased travel expenses post-pandemic[115]. Assets and Liabilities - Cash and cash equivalents as of June 30, 2023, amounted to RMB 1,655.5 million, an increase from RMB 1,564.6 million in 2022[24]. - The total assets less current liabilities as of June 30, 2023, were RMB 2,558.2 million, compared to RMB 2,178.6 million in the previous year[24]. - Total assets as of June 30, 2023, amounted to RMB 2,550,715,000, up from RMB 2,177,792,000 as of December 31, 2022, representing an increase of 17.0%[46]. - The company's trade and other receivables increased significantly to RMB 1,047.9 million from RMB 661.1 million in the previous year[24]. - As of June 30, 2023, trade receivables and notes receivable (net of loss provisions) were RMB 152,359,000, slightly down from RMB 155,404,000 as of December 31, 2022[91]. - Trade and other payables increased by 86.4% to RMB 216.6 million as of June 30, 2023, compared to RMB 116.2 million at the end of 2022[150]. - Contract liabilities decreased by 6.5% to RMB 273.1 million as of June 30, 2023, from RMB 292.0 million at the end of 2022[151]. - The group recorded a loan loss provision of approximately RMB 17.9 million, which is considered not significant by the board[160]. - The group has no significant borrowings and primarily focuses on its operations in China, thus facing minimal foreign exchange risk[162]. - As of June 30, 2023, the debt-to-equity ratio is zero[181]. Dividends and Shareholder Information - The company declared an interim dividend of HKD 3.74 per share for the period[12]. - The board has declared an interim dividend of HKD 3.74 per ordinary share, which is yet to be recognized as a liability[96]. - A mid-term dividend of HKD 3.74 per share will be paid on or around December 29, 2023[192]. - The company will suspend share registration from December 14 to December 18, 2023, for dividend eligibility[192]. Business Operations and Strategy - The company signed 40 new construction projects during the period, representing a year-on-year increase of 344.4%, with a new contract building area of 5,238,200 square meters, up 369.1%[78]. - The total contract sales amount for projects under management reached RMB 13.1 billion, an increase of 18.9% year-on-year, with a contract sales area of 2,070,595 square meters, up 14.2%[78]. - As of June 30, 2023, the company had 278 projects under management, with a total building area of 33,460,230 square meters[78]. - The company plans to explore innovative business development models, including "urban operation, area development, and first and second-tier linkage (investment)" to promote the expansion of the construction agency business[80]. - The company aims to enhance product presentation capabilities through comprehensive risk control measures throughout the project lifecycle[82]. - The company aims to enhance service management levels and implement a "6321" product delivery capability, focusing on risk assessment and quality improvement[106][109]. - The company is building a design supply chain integration platform to seek quality design resources for collaborative value creation[109]. - The company has observed a significant market potential in the construction agency sector, particularly in government and capital construction projects[101]. - The company is focusing on standardizing construction costs through product standardization to improve controllable cost ratios[109]. - The group aims to enhance its business model and service management to provide better construction services and value creation for partners[111]. - The group plans to continue expanding its business boundaries and service scope in the rapidly growing construction industry[111]. - The group has established a procurement alliance to lock in demand early and promote collective procurement, aiming for greater cost reduction and efficiency[110]. - The company aims to enhance its competitive edge by exploring innovative investment models and a "package contract" fee structure, particularly for government projects[133]. - The company is focused on strengthening its brand and project marketing through improved customer relationship management systems[135]. - The company plans to accelerate the construction of a centralized supplier database to achieve cost savings of RMB 30 per square meter by year-end[139]. - The company believes that the subscription project will enhance its long-term development and expand its government construction business scale[154]. Corporate Governance and Compliance - The company has complied with all applicable corporate governance codes during the reporting period[170]. - The audit committee consists of three independent non-executive directors, ensuring adherence to corporate governance standards[191]. - The company has established a performance-based employee compensation structure to enhance employee motivation and retention[168]. - The company emphasizes comprehensive ongoing training for employees to enhance business skills and risk management capabilities[187]. - The company has conducted credit risk assessments based on internal policies prior to granting the loans[184]. - All loans provided to existing clients have been repaid on time, indicating a stable financial relationship[184]. - The group has no significant asset pledges or major acquisitions during the reporting period[164][165].

Board Composition and Diversity - The Board comprises eight members, including one female Director, with a balanced mix of knowledge and skills across various aspects of the real estate industry[11]. - The Group aims to enhance gender diversity at all levels, with a current target of increasing the proportion of female members on the Board over time[14]. - The Company has adopted a board diversity policy effective from May 12, 2021, to improve board efficiency[12]. - The Company has established measurable targets for board diversity, which are regularly reviewed to ensure effectiveness[16]. - The Board consists of three executive Directors and five non-executive Directors, ensuring a balance of skills and experience appropriate for the business requirements[95]. - The Group has three independent non-executive Directors with diverse industry backgrounds, including accounting and property development[11]. Employee and Training Information - As of December 31, 2022, the Group's full-time employees consist of approximately 71.6% male and 28.4% female[15]. - The Group employed a total of 912 full-time employees as of December 31, 2022[124]. - The Group provided various training programs to enhance employees' skills and capabilities[123]. - The Group has established a performance-based compensation structure to reward employees[122]. - The Group operates a Mandatory Provident Fund Scheme for all its employees in Hong Kong, with contributions based on a percentage of employees' basic salaries[184]. Corporate Governance and Compliance - The Company has adhered to high corporate governance standards, complying with all applicable code provisions under the Corporate Governance Code during the year[88]. - The Group's commitment to corporate governance includes monitoring and evaluating the company's culture and ethics[90]. - The Company has a clear anti-corruption policy to support anti-corruption laws and promote a culture of integrity internally[90]. - The Group has implemented a whistleblowing policy to allow employees and other contacts to raise concerns about possible irregularities anonymously[90]. - The Company has adopted the Model Code for Securities Transactions by Directors, confirming compliance with the required standards for the year[94]. Financial Performance and Analysis - The Group's revenue analysis for the year is detailed in the consolidated financial statements, indicating a focus on real estate agency services primarily in Henan and other provinces in China[87]. - The total audit services fee amounted to RMB 2,200,000, while non-audit services were RMB 144,000, leading to a total of RMB 2,344,000 for the year[54]. - As of December 31, 2022, the Group did not hold any significant investments, indicating a focus on core operations[112]. - The Group recorded an impairment loss of approximately RMB 9.0 million for loans during the Year, which the directors considered not significant[144]. - The Group had no significant borrowings during the Year[148]. Shareholder Communication and Meetings - The Company emphasizes maintaining good communication with shareholders to enhance transparency and understanding of its status and development[61]. - The Company holds annual general meetings to facilitate communication between directors and shareholders, ensuring transparency in operations[62]. - The Chairman of the Board will propose separate resolutions for each issue at the annual general meetings, with voting results posted on the Company and Stock Exchange websites[62]. - The Nomination Committee's chairman will attend the annual general meeting to address shareholder questions regarding Director nominations[10]. Related Party Transactions - The Group's related party transactions comply with Chapter 14A of the Listing Rules[198]. - The Group's auditor issued an unqualified opinion on the continuing connected transactions for the year[199]. - The Board ensures that transactions are conducted on terms that are fair and reasonable for shareholders[197]. - The Group's property management services are based on normal commercial terms after arm's length negotiations[195]. Significant Events and Future Outlook - No significant events affecting the Group occurred after the reporting period up to the date of the annual report[113]. - The company has no significant events subsequent to December 31, 2022, that would materially affect its operating and financial performance[177]. - The Company is proposing to amend its existing Articles of Association, with details provided in the circular for the 2023 AGM dated April 21, 2023[59].

Financial Performance - For the year ended December 31, 2022, the company's revenue was RMB 605.7 million, a decrease of 53.5% compared to RMB 1,301.4 million in 2021[5] - The net profit for the year was RMB 303.5 million, down 60.6% from RMB 770.2 million in 2021, resulting in a net profit margin of 50.1%[5] - Basic earnings per share for the year were RMB 9.23, compared to RMB 24.39 in 2021[2] - The company reported a pre-tax profit of RMB 403.6 million, down from RMB 1,012.9 million in the previous year[2] - Total comprehensive income for the year was RMB 303.5 million, reflecting a significant decline from the previous year's figure[3] - The company experienced an impairment loss of RMB 36.6 million, compared to RMB 15.5 million in 2021, indicating increased financial strain[2] - Personnel costs for the year amounted to RMB 123.1 million, a decrease of 37.5% compared to RMB 196.9 million in 2021, primarily due to organizational restructuring and a reduction in employee numbers[39] - Other operating expenses were RMB 58.7 million, down 18.9% from RMB 72.3 million in 2021, attributed to reduced business development expenses due to the pandemic and market factors[40] - Income tax for the year was RMB 100.1 million, a decrease of 58.8% from RMB 242.7 million in 2021, with an effective tax rate of 24.8%, up 0.8 percentage points from 24.0% in 2021[41] - The company reported interest income from financial assets measured at amortized cost of RMB 25,085 thousand in 2022, down from RMB 33,043 thousand in 2021, representing a decrease of approximately 24%[77] Assets and Liabilities - The total assets decreased to RMB 2,650.8 million from RMB 2,844.5 million in the previous year[20] - Current liabilities decreased to RMB 514.9 million from RMB 573.8 million in 2021, showing some improvement in liquidity[20] - The company's equity attributable to shareholders decreased to RMB 2,177.9 million from RMB 2,319.6 million in the previous year[20] - Trade and other receivables as of December 31, 2022, were RMB 661.1 million, an increase of 16.4% from RMB 568.2 million in 2021, mainly due to an increase in third-party advances[44] - Contract assets as of December 31, 2022, were RMB 425.0 million, up 41.4% from RMB 300.5 million in 2021, reflecting a decrease in contract sales due to the pandemic and real estate market impact[45] - Contract liabilities as of December 31, 2022, were RMB 292.0 million, a decrease of 25.8% from RMB 393.2 million in 2021, primarily due to a reduction in advance payments received[47] - Cash and cash equivalents decreased to RMB 1,564,617,000 in 2022 from RMB 1,975,806,000 in 2021, a reduction of about 20.8%[149] - The total trade and other payables decreased to RMB 116,201,000 in 2022 from RMB 128,258,000 in 2021, a decline of about 9.4%[150] - The company's financial assets measured at amortized cost increased to RMB 652,705,000 in 2022 from RMB 563,541,000 in 2021, representing a growth of approximately 15.8%[116] Strategic Initiatives - The company aims to strengthen its operations in provincial markets, particularly in the Central and Northern regions, to replicate successful experiences[30] - The company is committed to enhancing internal control and compliance standards to ensure sustainable business development[33] - The company plans to optimize its business model structure and enhance product and service capabilities to maintain its core competitiveness in project management[34] - The company aims to enhance project efficiency and individual performance through a "whole process refinement" management approach[70] - The company plans to optimize supplier resource libraries and design management evaluation mechanisms to improve project efficiency and quality control[70] - The company aims to strengthen its brand image and customer service levels through strategic investments and operational improvements[55] - The company plans to enhance project management capabilities and improve internal management to ensure healthy business development in 2023[169] Market Conditions - The real estate policy in 2023 is expected to enter a period of comprehensive relaxation, promoting a stable transition to high-quality development in the industry[34] - The real estate development investment in China decreased by 10.0% year-on-year in 2022, with commodity housing sales area dropping by 24.3%[167] - The company has experienced a decline in the real estate market, with significant downward pressure on property prices in most Chinese cities[189] - The company's financial environment is tightening, with a 25.9% decrease in funds available for real estate development enterprises[167] Corporate Governance - The company established an audit committee consisting of three independent non-executive directors[62] - The financial figures in the preliminary announcement were consistent with the audited consolidated financial statements, confirming accuracy[63] - The company has implemented a performance-based employee compensation structure to enhance employee motivation and retention[188] - The company recognizes the importance of providing comprehensive training programs to improve employee skills and risk management capabilities[199] Shareholder Returns - The company proposed a final dividend of HKD 0.027 per ordinary share for the year[5] - The company declared a total dividend payout of RMB 440.2 million during the year[194] - The board has proposed a final dividend of HKD 0.027 per ordinary share for the year ending December 31, 2022[159] Employee and Operational Metrics - The company had a total of 912 full-time employees as of December 31, 2022, including 557 assigned to related project companies for real estate development[56] - The company reported a loss from continuing operations of RMB 271,000 in 2022 compared to RMB 509,000 in 2021, showing an improvement in performance[131] - The company has signed strategic cooperation agreements with 14 government platform companies and 8 state-owned enterprises, covering a total contracted construction area of 2.01 million square meters for government projects[161] - In 2022, the company signed 30 new construction projects, increasing the contracted construction area by 3,367,056 square meters[176] - The total contracted sales amount for projects under management reached RMB 21.317 billion, with a contracted sales construction area of 3,498,418 square meters[176] - As of December 31, 2022, the company had 266 projects under management, with a total construction area of approximately 31,710,028 square meters[176] - In 2022, the company delivered 64 projects, totaling 32,391 units and a total construction area of 4.3 million square meters, with an increase in early deliveries by 1.3%[176]

Economic Environment - For the six months ended June 30, 2022, the Group faced increasing economic pressure due to demand contraction, supply shocks, and weakening expectations amid COVID-19 outbreaks [20]. - The international situation has become more complex, with rising risks of stagflation affecting the global economy [20]. - The Group's performance is impacted by external instability and uncertainty, which have increased during the reporting period [20]. - The overall results declined in the first half of 2022 due to factors such as the pandemic resurgence and liquidity risks in the real estate industry, but the Group expects a recovery in the second half [75]. Financial Performance - Revenue for the first half of 2022 was RMB 378,149,000, a decrease of 40.4% compared to RMB 634,829,000 in the same period of 2021 [56]. - Net profit for the first half of 2022 was RMB 204,359,000, down 43.6% from RMB 362,423,000 in the first half of 2021 [56]. - Net profit margin decreased to 54.0% in the first half of 2022 from 57.1% in the same period of 2021, a decline of 5.4 percentage points [56]. - Revenue for the six months ended June 30, 2022, was RMB 378,149, a decrease of 40.4% compared to RMB 634,829 in the same period of 2021 [199]. - Profit for the period was RMB 204,359, down 43.5% from RMB 362,423 in the prior year [199]. - Basic and diluted earnings per share decreased to 6.21 RMB cents from 11.99 RMB cents, reflecting a decline of 48.2% [199]. Project Management and Operations - The Group's project management business is primarily conducted through its wholly-owned subsidiaries, focusing on commercial, government, and capital project management [15]. - The Group aims to contribute to urbanization in China by sharing resources, risks, and benefits with partners, fulfilling its mission of "Building quality lives for the people of Central China" [15]. - The Group continues to adapt its strategies in response to the evolving economic landscape and market conditions [20]. - The Group's operational focus includes special management consulting services, enhancing its competitive edge in the market [15]. - The Group signed strategic cooperation agreements with 12 government platform enterprises and reached strategic cooperation intentions with eight state-owned enterprises, successfully implementing one management consulting project [37]. - The Group aims to enhance its core competitiveness and expand its market share in China's project management market while maintaining its leading position in Henan [82]. Market Conditions - The real estate industry is expected to remain under pressure, with over 40 branded real estate companies engaged in project management, intensifying competition [45]. - The Ministry of Housing and Urban-Rural Development set a target of 2.4 million units of government-subsidized rental homes for 2022, which will support the growth in government project management [46]. - The project management industry is transitioning to focus on management benefits, with increasing demand from small and medium enterprises for project management services [69]. - Nearly 500 local policy optimizations were implemented in the first half of 2022, marking a record high for the same period in history, aimed at easing the burden on home buyers and providing relief to businesses [64]. Strategic Initiatives - The Group aims to strengthen its competitive barriers and consolidate its development foundation in the Greater Central China region through enhanced management capabilities [52]. - The "Greater Central China" strategy has led to the establishment of four urban companies in Shanxi, Xinjiang, Hainan, and Tianjin, expanding the Group's project management coverage to six provinces and autonomous regions outside Henan [81]. - In the second half of 2022, the Group plans to focus on government project management and capital project management to promote business diversification and achieve substantial results [87]. - The Group will explore new business models for "problematic property relief" to enhance risk resistance and ensure sustainable business development [75]. Organizational Changes - The Group adapted to industry changes by restructuring its management from five levels to three levels, enhancing resource sharing and management efficiency [29]. - The Group will optimize its organizational structure to establish a three-level flat management system to improve operational efficiency and project management quality [88]. - Personnel costs decreased by 24.7% to RMB 69.5 million from RMB 92.4 million in the same period of 2021, attributed to a reduction in the number of employees due to organizational restructuring [105]. Shareholder Information - The total issued shares as of June 30, 2022, were 3,289,706,120 shares with a nominal value of HK$0.01 per share [12]. - The approximate percentage of the interest in the Company's issued share capital held by Mr. Wu Po Sum is 62.79%, amounting to 2,065,631,867 shares [150]. - The total number of shares repurchased from April to June 2022 was 4,192,000, with a total consideration of approximately HK$4,975,853 [170]. - The company has complied with all applicable code provisions under the Corporate Governance Code during the reporting period [167]. Governance and Compliance - The company has emphasized high corporate governance standards to safeguard stakeholder interests [166]. - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as its code of conduct [170]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim consolidated financial statements for the period [179][182]. - KPMG conducted a review of the interim financial report and found no issues that would indicate non-compliance with accounting standards [191][195].

Business Expansion and Strategy - The Group managed 261 projects across 119 cities and counties in 7 provinces, with a total gross floor area of 30,974,377 square meters[14]. - The Group's business has expanded to cover the Greater Central China region, with Zhengzhou as the center, providing significant market opportunities for growth[13]. - The Group aims to enhance its core competitiveness and increase market share in China's project management market while maintaining a leading position in Henan[13]. - The Group's main business focuses on commercial project management, with plans to expand into government project management and special management consulting services[12]. - The Group's strategy includes continuous improvement and expansion beyond Henan to solidify its position in the project management industry[13]. - The Group's strategic focus includes expanding into the Greater Central China region, centered around Zhengzhou, within a 500-kilometer radius[15]. - The Group initiated the "Greater Central China" strategy to expand project management business within a 500-kilometre radius of Zhengzhou, aligning with national development strategies[86]. - The Group plans to deepen market research in regions outside Henan, particularly in Greater Central China, to develop replicable experiences and establish management standards tailored to local markets[96]. - The Group aims to diversify its business model by developing comprehensive project management capabilities across various property categories within five years[100]. - The Group's future strategies include cultivating quality partners and enhancing brand marketing efforts outside Henan[97]. Financial Performance - Revenue for the year was RMB 1.3 billion, reflecting a year-on-year growth of 13.0%, while net profit increased by 13.0% to RMB 770 million, maintaining a net profit margin of 59.2%[44]. - The Group's core net profit for the year was RMB 784,938 thousand, marking a 13.9% increase from the previous year[62]. - The Group achieved revenue of RMB1,301.4 million for the year, representing a 13.0% increase from RMB1,152.1 million in 2020, primarily due to an increase in the number of projects under management and total contracted GFA[113]. - Contracted sales for projects under the Group's management amounted to RMB 40,275 million, representing a year-on-year increase of 17.4%[68]. - The company's revenue for the year was RMB 1,301.4 million, an increase of 13.0% compared to RMB 1,152.1 million in 2020[114]. - Projects in Henan Province contributed RMB 1,208.0 million, accounting for 92.8% of total revenue, while projects outside Henan Province increased significantly by 137.3% to RMB 93.4 million[115]. - Total cash and cash equivalents increased by 413.7% to RMB 1,975,806 thousand, while total assets rose by 72.8% to RMB 2,895,031 thousand[65]. - Total equity surged by 130.3% to RMB 2,319,629 thousand, indicating strong financial health and growth[65]. Awards and Recognition - The Group was recognized as one of the "Outstanding Companies in China for Real Estate Project Management Operations" by China Index Academy on March 18, 2021[18]. - The Company was awarded "Listed Enterprises of the Year 2021" by Bloomberg Businessweek in November 2021, highlighting its business strength and corporate development strategy[20]. - The Group received the "Most Promising IPOs in 2021" award at the 17th China Real Estate & Finance Annual Forum held on December 16, 2021[26]. - The Group was honored as a "2021 Leading Brand of China Real Estate Agent-Construction Companies" on September 15, 2021, reflecting its increased brand value[33]. - The Group has received a total of six awards in 2021, including four from capital markets and two from the industry[22]. - The Group was recognized as one of the "Outstanding Companies in China for Real Estate Project Management Operations in 2021" by China Index Academy, highlighting its asset-light business model[84]. Project Management and Operations - The Group's project management business is primarily conducted through its wholly-owned subsidiaries, including Henan Zhongyuan Central China City Development Co., Ltd.[12]. - The Group contracted 87 new projects in 2021, representing an 8.8% year-on-year increase, with newly contracted GFA rising 16.7% to 10,021,905 sq. m[46]. - The penetration rate of the project management industry in China was 4.8% in 2021, indicating significant growth potential compared to the 20% to 30% rates in the US and Europe[50]. - The Group's management projects included six government project management projects with a contracted GFA of 790,000 sq.m as of December 31, 2021[71]. - Continuous efforts will be made to improve project effectiveness and efficiency through the implementation of "full process refined project management" practices[101]. - The Group will actively explore digital and intelligent construction to enhance management efficiency and customer service levels[102]. - The project management industry is expected to have a promising outlook with high net profit margins, contrasting with the limitations faced by the traditional real estate sector[109]. Corporate Governance - The Company has complied with all applicable code provisions under the Corporate Governance Code from the Listing Date to December 31, 2021[173]. - The Board consists of two executive Directors and five non-executive Directors, with three being independent, ensuring a balanced composition of skills and experience[176]. - The Board is responsible for maximizing the Group's financial performance and making decisions in the best interests of the Group and its Shareholders[193]. - Independent professional advice can be sought by Directors at the Group's expense, although no such advice was sought during 2021[191]. - The independent non-executive Directors provide sufficient checks and balances to safeguard the interests of the Group and its Shareholders[190]. - All Directors have entered into service contracts or letters of appointment for a specific term of 3 years[184]. Employee and Operational Costs - Personnel costs increased by 16.9% to RMB 196.9 million from RMB 168.5 million in 2020, driven by a rise in the number of employees[118]. - Other operating expenses surged by 87.7% to RMB 72.3 million from RMB 38.5 million in 2020, attributed to increased business activities and fewer travel restrictions[121]. - As of 31 December 2021, the Group had 1,238 full-time employees, including 774 assigned to project companies[161].

Financial Performance - The financial highlights indicate significant growth in revenue, with a year-on-year increase of 20% in the first half of 2021[5] - Operating revenue for the period was RMB 634.8 million, reflecting a year-on-year increase of 32.0%[40] - Net profit for the period reached RMB 362.4 million, marking a year-on-year increase of 20.0%[40] - Core net profit for the period was RMB 380.0 million, a year-on-year increase of 25.6%[40] - Contracted sales for the period amounted to RMB 16.8 billion, representing a year-on-year increase of 30.0%[40] - Revenue for the six months ended June 30 amounted to RMB 634.8 million, a year-on-year increase of 32.0% compared to RMB 480.9 million in the same period of 2020[101] - Revenue from projects in Henan province was RMB 596.2 million, accounting for 93.9% of total revenue, while projects outside Henan generated RMB 38.6 million, representing 6.1% of total revenue, with the latter showing a significant increase of 307.8%[103] Project Management and Development - As of June 30, 2021, the Group managed 250 projects with a total gross floor area (GFA) of 30.08 million sq.m., representing a 17.8% increase compared to the end of 2020[25] - The number of projects managed outside Henan reached 22, with a GFA of 2.25 million sq.m., marking a significant 70.3% increase from the end of 2020[25] - Newly contracted GFA during the first half of 2021 was 5.73 million sq.m., a year-on-year increase of 21.5%[44] - During the first half of 2021, 52 project management contracts were signed, with a newly contracted GFA of 5,733,600 sq.m, representing a year-on-year increase of 21.5%[77][78] - The Group plans to enhance product capabilities through innovation and standardized management mechanisms, promoting product iteration and improving customer satisfaction management[91] Market Expansion and Strategy - Future outlook suggests a targeted revenue growth of 25% for the next fiscal year, driven by market expansion strategies[5] - Market expansion efforts include entering three new provinces in China, aiming to increase market share by 10%[5] - The Group aims to expand its business to cover the Greater Central China region within a radius of 500 kilometers from Zhengzhou, enhancing its market share in China's project management market[22] - The Group plans to expand its presence in the Greater Central China region, having already entered Hebei, Anhui, Shaanxi, and Shanxi provinces, with plans to enter three additional provinces in the second half of 2021[78][82] Corporate Governance and Management - The company plans to enhance its corporate governance practices to align with international standards, ensuring transparency and accountability[5] - The Group's management philosophy emphasizes "ensuring that every partner is satisfied, every project is a success, and cooperation is sustainable" to maximize shareholder value[27] - The Group will implement a classified and streamlined partner management mechanism to improve partner satisfaction[91] - The management has established a performance-based compensation structure to reward employees[151] Financial Position and Liquidity - The cash flow statement indicates a strong liquidity position, with cash reserves of HK$1.2 billion as of the reporting date[6] - Total cash and cash equivalents as of June 30, 2021, were RMB 2.22 billion, up from RMB 384.6 million at the end of 2020[52] - The gearing ratio was nil as of June 30, 2021, indicating no borrowings[141] - The Group had no significant borrowings during the period[142] - The Group did not have any significant contingent liabilities or capital commitments[146] Employee and Training Initiatives - The Group recognizes the importance of providing comprehensive training programs to improve employees' business skills[151] - Personnel costs remain the largest cost item for the Group, primarily consisting of base salary, bonuses, and social insurance[106] - During the period, the Group's personnel cost amounted to RMB 92.4 million, representing an increase of 88.8% compared to RMB 48.9 million for the corresponding period in 2020[20] Industry Outlook - The project management industry penetration in China is expected to reach 4.8% in 2021, with potential growth up to 5.2 times compared to the 20%-30% penetration in the US and Europe[65][66] - The urbanization rate of the Greater Central China region is 57.4%, which is 6.5 percentage points lower than the national average of 63.9%, indicating significant market opportunities[77][78] - The urbanization rate of China's resident population is projected to reach 65% by 2025, presenting significant opportunities for government project management in real estate[90] - The project management market for public housing and urban renovation is expected to see remarkable growth due to government-led initiatives[69][70] Shareholder Information - The approximate percentage of interest in the Company's issued share capital held by Mr. Wu Po Sum is 62.42%[168] - The total number of shares issued by the Company as of June 30, 2021, is 3,295,288,120[180]