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]