Core Viewpoint - Zhongyuan Jianye (09982) reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with a notable drop in both revenue and net profit attributable to shareholders [1][2] Financial Performance - The company's revenue for the year was 252 million yuan, representing a year-on-year decrease of 46.2% [1] - Net profit attributable to shareholders was 65.13 million yuan, down 67.2% compared to the previous year [1] - Basic earnings per share were reported at 1.72 cents [1] Project and Contract Activity - During the year, the company signed 31 new construction projects, with a total new contract area of 2.5172 million square meters, a decrease of 64.8% compared to the same period in 2023 [2] - The total contract sales amount for managed projects was 13.402 billion yuan, down 54.6% year-on-year [2] - The total sales area for managed projects was 2.174 million square meters, reflecting a year-on-year decrease of 53.3% [2] Project Management - As of December 31, 2024, the company managed 248 projects with a total managed area of 29.8697 million square meters [2] - The company focuses on the three- and four-tier markets in the Central Plains region, having entered a total of 136 counties and cities [2] - The breakdown of managed projects includes 215 projects within the province and 33 projects outside the province [2]

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was RMB 252.0 million, a decrease of 46.2% compared to 2023[4] - The net profit for the fiscal year was RMB 73.2 million, down 63.6% from 2023, resulting in a net profit margin of 29.1%[4] - Basic earnings per share for the year were RMB 1.72, a decline of 69.2% compared to the previous year[4] - Total comprehensive income for the year amounted to RMB 76.997 million, compared to RMB 200.186 million in 2023[8] - Other income for 2024 totaled RMB 20,864,000, a significant drop of approximately 71.7% compared to RMB 73,888,000 in 2023[33] - The group reported a profit before tax of RMB 247,219,000 for 2024, compared to RMB 93,765,000 in 2023, indicating a significant increase[41] - Net profit for the year was RMB 73.2 million, down 63.6% from RMB 201.2 million in 2023, primarily due to the decline in revenue[124] Revenue and Contracts - The group's revenue from customer contracts for real estate agency services decreased to RMB 252,026,000 in 2024 from RMB 468,377,000 in 2023, representing a decline of approximately 46.1%[28] - Revenue from projects in Henan Province accounted for 89.8% of total revenue, amounting to RMB 226.4 million, down 48.0% from RMB 435.1 million in 2023[118] - The nominal total amount of remaining performance obligations under existing contracts as of December 31, 2024, is RMB 1,895,815,000, down from RMB 2,146,122,000 in 2023, indicating a decrease of about 11.7%[29] - Contract liabilities related to real estate construction services decreased to RMB 222,259,000 in 2024 from RMB 309,936,000 in 2023, indicating a decline of about 28%[63] - The expected revenue to be recognized from contract liabilities within one year is RMB 138,390,000 in 2024, down from RMB 204,878,000 in 2023, a decrease of approximately 32.4%[64] Assets and Liabilities - The company's cash and cash equivalents increased to RMB 2,484.045 million from RMB 1,835.783 million in 2023[10] - Trade and other receivables decreased significantly to RMB 469.863 million from RMB 1,121.515 million in 2023[10] - The company's total assets less current liabilities stood at RMB 2,550.228 million, up from RMB 2,423.230 million in 2023[10] - The total lease liabilities as of December 31, 2024, were RMB 4,729,000, a decrease from RMB 7,846,000 in 2023, reflecting a reduction of about 39.5%[73] - The allowance for credit losses increased to RMB 180,186,000 in 2024 from RMB 134,042,000 in 2023, indicating a rise of approximately 34.4%[65] Taxation - The effective tax rate increased to 21.9% from 18.6% in 2023, an increase of 3.3 percentage points due to changes in the income structure of different tax rate companies[123] - The group recorded a tax expense of RMB 20,547,000 for 2024, down from RMB 45,982,000 in 2023, indicating a reduction in tax liabilities[41] - The group’s subsidiaries in mainland China are subject to a corporate income tax rate of 25%, except for one subsidiary benefiting from a reduced rate of 15%[41] Corporate Governance and Compliance - The company is committed to achieving high standards of corporate governance and has adhered to applicable corporate governance codes[147] - The financial statements comply with all applicable Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance[15] - The company has established an Audit Committee consisting of three independent non-executive directors[155] Employee and Operational Management - The group’s employee costs, including salaries and benefits, totaled RMB 101,467,000 in 2024, down from RMB 112,217,000 in 2023, representing a decrease of approximately 9.6%[35] - The company emphasizes the importance of providing comprehensive continuous training programs to enhance employees' business skills and risk management capabilities[146] - The company has adopted a performance-based employee compensation structure to reward employee performance and achievements[145] Market and Strategic Outlook - The macroeconomic environment in 2024 is expected to be challenging, with increased difficulty in stabilizing economic operations, but the government has implemented strong macro-control measures to boost economic recovery[100] - The company aims to enhance its brand influence in the Central Plains region through comprehensive real estate development and operational services[106] - The company plans to adopt innovative models for project management and service fee distribution to stimulate diverse cooperation[110] Shareholder Information - The board of directors did not recommend the distribution of a final dividend for the year[4] - The company will seek to restore trading of its shares as soon as possible[143] - The 2025 Annual General Meeting is scheduled for May 21, 2025[159]

Company Overview - As of June 30, 2024, the company managed projects across 136 counties and cities in 9 provinces, collaborating with 233 partners on 433 projects, with a cumulative planning GFA of approximately 54.48 million m²[20]. - The company was incorporated in the Cayman Islands on October 22, 2020, and its shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on May 31, 2021[16]. - As of June 30, 2024, the company has completed an overall contracted area of 1.39 million m², signing strategic cooperation agreements with 29 platform companies and 8 state-owned enterprises[44]. - The company has established a presence in 136 counties and cities in Greater Central China, focusing on third- and fourth-tier markets[95]. Market Position and Performance - The company achieved a repeat cooperation rate of 61% and served over 500,000 property owners, indicating strong market presence and customer retention[20]. - The average selling price of projects managed by the company is 10% higher than that of competitors, reflecting its brand advantage and effective management capabilities[20]. - The project management industry saw a cumulative contracted area of 83.45 million m² in the first half of 2024, representing a year-on-year increase of 3%[41]. - The concentration rate of the top 5 enterprises in the project management industry is 50%, while the top 10 enterprises maintain a concentration rate of 70%[42]. - The project management market is becoming increasingly competitive, with the TOP 10 enterprises maintaining a concentration rate of 70%[85]. Financial Performance - Revenue for the first half of 2024 decreased to RMB 146,238,000, a decline of 61.8% compared to RMB 382,402,000 in 2023[66]. - Net profit for the same period fell to RMB 48,326,000, down 74.7% from RMB 191,388,000 in 2023[66]. - The net profit margin decreased to 33.0%, down from 50.0% in the previous year, representing a decline of 17.0%[66]. - The Group's revenue for the period was RMB 146.2 million, representing a year-on-year decrease of 61.8% compared to RMB 382.4 million in the same period of 2023[120]. - The decline in revenue was attributed to lower service fees due to the ongoing downturn in the domestic real estate market and a lesser increase in new project developments compared to the decrease in completed projects[120]. Project Management and Development - The project management business is primarily conducted through wholly-owned subsidiaries, focusing on commercial project management while expanding into government and capital project management[17]. - The company has cumulatively contracted 25 government project management projects, with a total contracted area of 3.5933 million m², including 4 projects of 340,000 m² contracted outside Henan Province[44]. - The company is focusing on promoting government project management, with three major business models: traditional government project management, joint venture platform model, and equity trading model[25]. - The company aims to build a cooperation platform that achieves a win-win situation for all parties through synergistic development, fulfilling its corporate mission of "building quality lives for the people of Central China"[32]. Strategic Initiatives - The company continues to explore new strategies for market expansion and technological advancements in project management services[17]. - The company has established a new project management trust system called CCMGT Project Management C Platform, aimed at enhancing cooperation models and creating value for stakeholders[27]. - The company plans to innovate its business model and optimize investment mechanisms to enhance competitiveness in traditional and new project areas[54][56]. - The company aims to enhance operational efficiency by optimising its organisational structure, streamlining management levels, and strengthening cross-departmental collaboration[109]. Human Resources and Employee Development - The Group had 751 full-time employees, including 417 assigned to property development projects[187]. - The company emphasizes a performance-based compensation structure to incentivize employee performance and optimize the existing compensation system according to market standards[192]. - The company provides comprehensive ongoing training to enhance employees' business skills and risk management capabilities, supporting sustainable development[192]. Financial Position and Cash Management - Total cash and cash equivalents increased by 21.0% to RMB 2,222,083,000 from RMB 1,835,783,000 at the end of 2023[68]. - The company reported a nil gearing ratio as of June 30, 2024, indicating no borrowings[157]. - The company has other debtors amounting to RMB 391.4 million, primarily consisting of advances to third parties, including loans of RMB 100 million each to two strategic customers[158]. - The company maintained a cash and cash equivalents position of RMB 2,222.1 million as of June 30, 2024, compared to RMB 1,835.8 million as of December 31, 2023[156]. Challenges and Market Conditions - The real estate market is facing challenges with shrinking land transactions and declining sales, leading to liquidity constraints for some enterprises, making project management a viable option for risk mitigation[37]. - In the first half of 2024, 341 policy relaxations were implemented across 222 provinces and cities to stimulate the real estate market[81]. - The real estate financing coordination mechanism has been established, with nearly one trillion dollars approved for financing white-listed projects[81]. Awards and Recognition - The Company received six major awards in project management, including recognition as a top performer in government project management[50][51]. - The company received multiple awards in 2024, including being ranked fourth among China's outstanding listed real estate enterprises in project management operation[89].

Company Overview - As of December 31, 2023, Central China Management Company Limited (CCMGT) managed projects across 134 counties and cities, collaborating with 223 partners on 418 projects, totaling a planned capacity area of approximately 53.09 million square meters[19]. - The company was incorporated in the Cayman Islands on October 22, 2020, and its shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on May 31, 2021[17]. - The total number of projects under management as of December 31, 2023, was 264, with an aggregate GFA of 31,690,340 sq.m.[158]. Business Performance - Revenue for the year ended December 31, 2023, was RMB 468,377,000, a decrease of 22.7% compared to RMB 605,679,000 in 2022[128]. - Net profit for 2023 was RMB 201,237,000, down 33.8% from RMB 303,900,000 in 2022, resulting in a net profit margin of 43.0%, down from 50.2%[128]. - The company achieved a high net profit margin and quality development despite the challenges in the real estate market in 2022[44]. - The company's contracted sales from sales on behalf of partners reached RMB 29.5 billion in 2023, a 38% increase from 2022, with a contracted sales gross floor area of 4.66 million sq.m.[106]. - The overall signed area for the company in 2023 was 7.16 million sq.m., representing a 113% year-on-year growth compared to 2022, including 22 government projects totaling 3.26 million sq.m.[105]. Market Position and Strategy - CCMGT's average selling price for projects is 10% higher than that of its competitors, reflecting its brand strength and market positioning[19]. - The company has established strategic partnerships with 27 governmental platform companies and 8 state-owned enterprises in Henan, enhancing its government project management capabilities[20]. - The project management business has become a "second growth curve" for many real estate developers, with the top 5 companies accounting for 47% of new contracts in 2023[141]. - The company aims to achieve future project management revenue levels of RMB 50 billion to 100 billion, driven by increased demand for government and capital project management[117]. - The company plans to enhance its cooperation with government platform companies and establish expansion offices in out-of-province markets to improve operational efficiency[168]. Awards and Recognition - CCMGT was recognized as one of the 2023 China Outstanding Project Management Operation Real Estate Companies for its strong business operations and innovative business model[40]. - CCMGT was recognized as one of the Top 5 Project Management Service Providers in China for its comprehensive strength in August 2023[51]. - The company ranked second in the 2023 Top 10 Brands of China Real Estate Project Management Enterprises, reflecting its strong brand presence[54]. - The company received three awards for its leading brand status in project management, government project management, and green project management in September 2023[66]. - CCMGT received multiple awards in 2023, including recognition as one of China's Top 5 Project Management Service Providers[149]. Project Management and Operations - CCMGT's core business remains traditional commercial project management, which has a high business share and strong profit realization potential[20]. - The project management business is primarily conducted through its wholly-owned subsidiaries, indicating a streamlined operational structure[18]. - The company has independent capital, construction, and management capabilities, positioning itself for large-scale and professional development in the industry[18]. - The company has a mature marketing and management team, contributing to its competitive advantage in project execution[19]. - The company launched the "3.0 Project Management Model — CCMGT Project Management C Platform" on September 24, 2023, to enhance competitiveness and integrate the entire industrial chain[107]. Financial Health - Total cash and cash equivalents increased by 17.3% to RMB 1,835,783,000 as of December 31, 2023, compared to RMB 1,564,617,000 in 2022[130]. - Total assets rose by 16.0% to RMB 3,125,571,000 in 2023, up from RMB 2,693,436,000 in 2022[130]. - Total liabilities increased by 37.0% to RMB 706,356,000 in 2023, compared to RMB 515,644,000 in 2022[130]. - Personnel costs decreased by 8.8% to RMB 112.2 million from RMB 123.1 million in 2022, attributed to strict cost control measures[191]. - Other income increased to RMB 73.9 million, up 107.8% from RMB 35.6 million in 2022, primarily due to higher interest income on advances to third parties[188]. Future Outlook - The company aims to contribute to urban construction and upgrading in China, fulfilling its corporate mission of "Building quality lives for the people of Central China"[26]. - The company plans to emphasize "change" and "innovation" in its operational strategies for 2024[164]. - CCMGT aims to expand its services to small- and medium-sized developers in Henan to improve project management standards[163]. - The company is focusing on a joint venture platform model to enhance cooperation with partners and government[101]. - The external environment remains complex and uncertain, impacting market confidence and demand recovery[92].

Impairment Losses - Trade receivables impairment loss for 2023 amounted to RMB 95,096 thousand, a significant increase from RMB 17,287 thousand in 2022, representing a growth of 451.5%[5] - Total impairment losses for contracts and other receivables reached RMB 111,529 thousand in 2023, compared to RMB 36,633 thousand in 2022, indicating a rise of 204.5%[5] - The provision for impairment losses on other receivables increased from RMB 9,075 thousand in 2022 to RMB 12,536 thousand in 2023[15] - The impairment losses recognized during the year amounted to RMB 3,461 thousand in 2023, down from RMB 7,180 thousand in 2022[15] Expected Credit Losses - The expected credit loss rate for trade receivables within 6 months is 25.63%, with a total book value of RMB 258,833 thousand and a provision of RMB 66,328 thousand[8] - The expected credit loss rate for trade receivables over 1 year is 59.22%, with a total book value of RMB 21,905 thousand and a provision of RMB 12,972 thousand[8] - The total provision for expected credit losses for trade receivables and contract assets increased from RMB 69,161 thousand at the beginning of 2022 to RMB 177,229 thousand by the end of 2023[10] - The expected credit loss rate for contract assets in 2023 is 25.63%, with a total book value of RMB 168,530 thousand and a provision of RMB 43,187 thousand[8] - The expected credit loss rate for other receivables is assessed at 1.46% for 2023, compared to 1.80% for 2022[13] Credit Risk - The company has not identified any significant concentration of credit risk in its trade receivables and contract assets[6] - The company’s credit risk primarily arises from trade and other receivables, with limited risk from cash and cash equivalents due to counterparties being banks and financial institutions with good credit ratings[6] - The company’s management believes that the credit quality of receivables has not significantly changed, and no impairment provision is necessary for overdue but non-impaired receivables[9] - The company believes there is no inherent significant credit risk associated with the outstanding deposits and prepayments[13] Trade Receivables Overview - The total book value of trade receivables in 2023 was RMB 396,496 thousand, with total provisions amounting to RMB 134,042 thousand[8] - The total balance of other receivables as of December 31, 2023, is RMB 857,396 thousand, with a provision for expected credit losses of RMB 12,536 thousand[13]

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].