公司代码：600629 公司简称：华建集团 华东建筑集团股份有限公司 2019 年半年度报告 2019 年半年度报告 无。 六、 前瞻性陈述的风险声明 1 / 165 2019 年半年度报告 重要提示 五、 经董事会审议的报告期利润分配预案或公积金转增股本预案 √适用 □不适用 本报告中所涉及的未来计划、发展战略等前瞻性描述不构成公司对投资者的实质承诺，敬请 投资者注意投资风险。 七、 是否存在被控股股东及其关联方非经营性占用资金情况 否 八、 是否存在违反规定决策程序对外提供担保的情况？ 九、 重大风险提示 公司已在本报告中描述了可能存在的风险，敬请查阅第四节"经营情况讨论与分析"中"其 他披露事项"。 十、 其他 □适用 √不适用 2 / 165 一、 本公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实、准确、完 整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、 公司全体董事出席董事会会议。 三、 本半年度报告未经审计。 四、 公司负责人秦宝华、主管会计工作负责人吴峰宇及会计机构负责人（会计主管人员）何静声 明：保证半年度报告中财务报告的真实、准确、完整。 ...

[Definitions](index=4&type=section&id=Section%201%20Definitions) This chapter defines and explains common terms used in the report, including regulatory bodies, exchanges, company names, subsidiary names, and currency units, to ensure clarity and consistency of the report content - Defined regulatory bodies such as the China Securities Regulatory Commission, Shanghai Stock Exchange, and Shanghai State-owned Assets Supervision and Administration Commission[11](index=11&type=chunk) - Clarified that "Company", "the Company", and "Huajian Group" all refer to East China Architectural Design & Research Institute Co., Ltd[11](index=11&type=chunk) - Listed the full names and abbreviations of major subsidiaries and related parties, such as East China Design Institute, Shanghai Institute, and Modern Construction Consulting[11](index=11&type=chunk) [Company Profile and Key Financial Indicators](index=4&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) This chapter provides Huajian Group's basic information, contact details, registered and office addresses, information disclosure media, and details the company's key accounting data and financial indicators for the past three years, along with quarterly financial data for 2018, reflecting its financial performance and operational overview during the reporting period - The company's legal representative is Qin Baohua, stock abbreviation is "Huajian Group", stock code is **600629**, listed on the Shanghai Stock Exchange[13](index=13&type=chunk)[17](index=17&type=chunk) Key Accounting Data for the Past Three Years (Consolidated Statements) | Key Accounting Data | 2018 (CNY) | 2017 (CNY) | Period-on-Year Change (%) | 2016 (CNY) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 5,958,919,916.66 | 5,289,745,002.50 | 12.65 | 4,550,810,980.01 | | Net Profit Attributable to Shareholders of Listed Company | 263,540,732.70 | 256,411,168.89 | 2.78 | 241,396,227.63 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains and Losses) | 216,674,164.86 | 215,535,400.69 | 0.53 | 178,024,916.12 | | Net Cash Flow from Operating Activities | 338,073,328.56 | 407,213,953.73 | -16.98 | 174,562,406.83 | | Net Assets Attributable to Shareholders of Listed Company (Period-End) | 2,697,690,239.18 | 2,482,114,202.98 | 8.69 | 1,004,627,679.90 | | Total Assets (Period-End) | 8,484,849,666.81 | 7,403,521,911.15 | 14.61 | 4,838,575,387.50 | Key Financial Indicators for the Past Three Years (Consolidated Statements) | Key Financial Indicators | 2018 | 2017 | Period-on-Year Change (%) | 2016 | | :--- | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.6098 | 0.6195 | -1.57 | 0.6723 | | Diluted Earnings Per Share (CNY/share) | 0.6098 | 0.6195 | -1.57 | 0.6723 | | Basic Earnings Per Share (Excluding Non-Recurring Gains and Losses) (CNY/share) | 0.5013 | 0.5207 | -3.73 | 0.4958 | | Weighted Average Return on Net Assets (%) | 10.18 | 12.48 | decrease of 2.30 percentage points | 27.71 | | Weighted Average Return on Net Assets (Excluding Non-Recurring Gains and Losses) (%) | 8.37 | 10.49 | decrease of 2.12 percentage points | 20.43 | - The company's 2018 quarterly financial data shows significant growth in operating revenue and net cash flow from operating activities in the **fourth quarter**[23](index=23&type=chunk) 2018 Quarterly Key Financial Data (Consolidated Statements) | Indicator | Q1 (Jan-Mar) (CNY) | Q2 (Apr-Jun) (CNY) | Q3 (Jul-Sep) (CNY) | Q4 (Oct-Dec) (CNY) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,291,947,639.57 | 1,535,554,917.17 | 1,436,786,480.57 | 1,694,630,879.35 | | Net Profit Attributable to Shareholders of Listed Company | 71,138,198.99 | 76,512,501.95 | 60,331,921.50 | 55,558,110.26 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains and Losses) | 47,924,634.81 | 72,174,311.58 | 43,148,679.77 | 53,426,538.70 | | Net Cash Flow from Operating Activities | -446,888,951.73 | -43,007,611.44 | 54,611,823.51 | 773,358,068.22 | Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | 2018 Amount (CNY) | 2017 Amount (CNY) | 2016 Amount (CNY) | | :--- | :--- | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | 5,345,334.19 | 1,881,799.70 | 2,091,678.79 | | Government Subsidies Included in Current Profit and Loss (Excluding those closely related to the company's business and enjoyed at fixed or quantitative standards) | 53,282,727.50 | 49,202,830.41 | 75,658,053.17 | | Other Non-Operating Income and Expenses Apart from the Above | 1,590,585.74 | 1,711,704.67 | 2,018,208.39 | | Impact on Minority Interests | -3,360,667.00 | -3,035,995.66 | -3,351,491.35 | | Income Tax Impact | -9,991,412.59 | -8,884,570.92 | -13,045,137.49 | | Total | 46,866,567.84 | 40,875,768.20 | 63,371,311.51 | Items Measured at Fair Value | Item Name | Beginning Balance (CNY) | Ending Balance (CNY) | Current Period Change (CNY) | | :--- | :--- | :--- | :--- | | Available-for-Sale Financial Assets - Available-for-Sale Equity Instruments | 6,679,912.64 | 7,277,293.41 | 597,380.77 | [Company Business Overview](index=8&type=section&id=Section%203%20Company%20Business%20Overview) This chapter outlines Huajian Group's main businesses, operating model, industry conditions, and core competencies during the reporting period, positioning itself as a comprehensive solution provider with engineering design consulting at its core, covering architecture, planning, municipal, and water conservancy sectors, securing business through bidding and direct client engagement, and demonstrating significant advantages in brand, talent, technological R&D, and market presence [Main Business, Operating Model, and Industry Overview](index=8&type=section&id=1%E3%80%81Main%20Business%2C%20Operating%20Model%20and%20Industry%20Overview%20during%20the%20Reporting%20Period) The company's main business focuses on engineering design consulting, providing high-quality integrated solutions for urban construction across architecture, planning, municipal, and water conservancy sectors, primarily operating through bidding and direct client engagement, while facing new demands from a stable yet changing economy, high-quality development, upgraded urban construction methods, and accelerated technological iteration, leading to intensified market competition and declining profit margins - The company's main business centers on engineering design consulting, providing high-quality integrated solutions for urban construction, covering architecture, planning, municipal, and water conservancy sectors, and actively engaging in engineering survey, planning and design, engineering design, municipal design, water conservancy engineering design, landscape architecture design, construction decoration design, historical building protection and utilization design, architectural acoustics design, whole-process project management, construction engineering contracting (EPC), engineering supervision, construction engineering investment control, technology consulting, and project planning[28](index=28&type=chunk) - The company generally undertakes business through two modes: bidding (public and invited tenders) and direct client engagement[29](index=29&type=chunk) - The industry faces new requirements such as a stable yet changing economy, high-quality development, continuous deepening of national reforms, upgrading of urban construction methods, and building a beautiful China[30](index=30&type=chunk) - From an investment environment perspective, fixed asset investment growth has slowed, investment structure has optimized, PPP investment has returned to rationality, and the "Belt and Road" initiative continues to gain momentum[30](index=30&type=chunk) - The overall industry development scale is accelerating, with rapid growth in practitioners and operating revenue, but overall operating profit margins have declined[30](index=30&type=chunk) - Business structure is diversified, with a continuous decline in the proportion of traditional survey and design business, architectural design as the main source of income, transportation design growing by nearly **100%**, engineering consulting business showing rapid future growth, and engineering general contracting business profitability needing improvement[31](index=31&type=chunk) - Management models are primarily based on economic responsibility, project management forms are diverse, labor costs account for **20%-40%** of operating revenue, talent loss is severe, state-owned enterprise reform is slow, and the industry remains cautious about capital operations[31](index=31&type=chunk) - Expenditures on scientific and technological activities and income from achievement transfers continue to grow, with BIM technology being a key focus area for industry R&D[32](index=32&type=chunk) [Core Competitiveness Analysis](index=9&type=section&id=Section%203%20Core%20Competitiveness%20Analysis) The company's core competitiveness lies in its brand recognition and reputation, talent advantages, strong technological R&D and application capabilities, and extensive business scope and market presence, having been listed among ENR's "Top 150 Global Design Firms" for over a decade - The company has been listed among the "Top 150 Global Design Firms" by Engineering News-Record (ENR) for over **ten consecutive years**[33](index=33&type=chunk) - It boasts excellent brand recognition and reputation, having designed a number of renowned landmark buildings, such as the National Exhibition and Convention Center (Shanghai) and the Zhuhai Port of the Hong Kong-Zhuhai-Macao Bridge[33](index=33&type=chunk) - The company possesses significant talent advantages, including **2 academicians** of the Chinese Academy of Engineering, **7 national engineering survey and design masters**, **9 Shanghai leading talents**, **1,412 senior professional title holders**, and **1,634 individuals** with various professional registration qualifications[34](index=34&type=chunk) - It demonstrates strong technological R&D and application capabilities, with core technologies such as super high-rise building analysis and design, critical deep foundation design for buildings in soft soil areas, and large-span spatial structure analysis and design, achieving breakthroughs in BIM technology and architectural industrialization technology[35](index=35&type=chunk) - With a comprehensive business scope and broad market presence, the company has formed a vertical business chain covering survey, design, whole-process project management, and engineering contracting, with operations spanning planning, architecture, water conservancy, and municipal sectors, supported by **35 domestic branches** and **9 overseas branches**[36](index=36&type=chunk) [Discussion and Analysis of Operations](index=9&type=section&id=Section%204%20Discussion%20and%20Analysis%20of%20Operations) This chapter provides an in-depth analysis of Huajian Group's 2018 operating results, financial position, cash flows, investment activities, future development strategies, and risks, highlighting growth in new contract value and operating revenue, steady progress in national and international strategies, but also challenges in profit growth, goodwill impairment, and R&D investment [Overview of Operating Results](index=9&type=section&id=Section%204%20Overview%20of%20Operating%20Results) In 2018, the company achieved growth in both new contract value and operating revenue, with a slight increase in net profit attributable to the parent company, driven by a significant rise in large-scale high-end projects and various business segments, while steadily advancing its national and deep internationalization strategies, and securing international awards for its overseas operations 2018 Key Operating Data | Indicator | Amount (billion CNY) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | New Contract Value | 9.638 | 15.55 | | Operating Revenue | 5.959 | 12.65 | | Net Profit Attributable to Parent Company | 0.264 | 2.78 | 2018 New Contract Value by Business Segment | Business Segment | Amount (billion CNY) | Year-on-Year Growth (%) | Share of Total New Contract Value (%) | | :--- | :--- | :--- | :--- | | Engineering Design | 5.782 | 21.74 | 60 | | Engineering General Contracting | 3.147 | 6.97 | 33 | | Engineering Technical Management Services | 0.526 | 16.16 | - | | Engineering Survey | 0.183 | flat | 2 | - The company signed **114 design and consulting contracts** over **10 million CNY** and **9 engineering contracting contracts** over **50 million CNY**, indicating a substantial increase in large-scale high-end projects[40](index=40&type=chunk)[41](index=41&type=chunk) - The nationalization strategy progressed steadily, with the establishment of Xiong'an Design Institute and South China Center, and new contract values exceeding **300 million CNY** in Guizhou, Jiangsu, Hubei, Fujian, Anhui, and Shandong, excluding Shanghai[43](index=43&type=chunk) - Adhering to a "deep internationalization" strategy, overseas business continued to grow, with **202 new overseas projects** signed, totaling **556 million CNY** in contract value, a **13.53% year-on-year increase**; overseas main business revenue reached **355 million CNY**, a **2.42% year-on-year increase**[44](index=44&type=chunk) - Overseas project market distribution was primarily Asia (**63%**), Africa (**15%**), Americas (**9%**), Europe (**7%**), and Oceania (**6%**)[44](index=44&type=chunk) - The Vietnam Alpha Town project received two top awards in 2018 for Best Office Architecture Design and Best Office Architecture Development in Vietnam Real Estate[44](index=44&type=chunk) [Analysis of Key Financial Data](index=11&type=section&id=Section%204%20Analysis%20of%20Key%20Financial%20Data) During the reporting period, the company's operating revenue grew by **12.65%**, but operating profit and net profit growth were slower, mainly due to goodwill impairment and increased R&D investment, with both main business revenue and costs rising, and engineering design remaining the primary revenue source, while accounts receivable and available-for-sale financial assets significantly increased, as did long-term borrowings, posing challenges from industry restructuring and intensified market competition - The company achieved operating revenue of **5.959 billion CNY**, a **12.65% year-on-year increase**; operating profit of **319 million CNY**, a **1.24% year-on-year increase**; and net profit of **306 million CNY**, a **4.17% year-on-year increase**; the slower profit growth compared to revenue was primarily due to a **40.11 million CNY** provision for goodwill impairment and increased R&D investment[45](index=45&type=chunk) Analysis of Profit Statement and Cash Flow Statement Related Items | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 5,958,919,916.66 | 5,289,745,002.50 | 12.65 | | Operating Cost | 4,442,619,185.27 | 3,939,424,366.14 | 12.77 | | Selling Expenses | 75,151,296.06 | 64,524,909.44 | 16.47 | | Administrative Expenses | 809,187,888.35 | 721,573,205.04 | 12.14 | | R&D Expenses | 238,036,409.64 | 171,448,735.87 | 38.84 | | Financial Expenses | -466,299.68 | -8,881,130.18 | 94.75 | | Asset Impairment Losses | 114,707,732.84 | 83,311,887.34 | 37.68 | | Net Cash Flow from Operating Activities | 338,073,328.56 | 407,213,953.73 | -16.98 | | Net Cash Flow from Investing Activities | -333,075,064.52 | -439,519,037.81 | 24.22 | | Net Cash Flow from Financing Activities | 53,146,347.23 | 469,695,745.63 | -88.68 | - Main business revenue was **5.946 billion CNY**, a **12.66% year-on-year increase**; main business cost was **4.436 billion CNY**, a **12.83% year-on-year increase**[48](index=48&type=chunk) Main Business by Product Segment | Product Segment | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Margin (%) | Operating Revenue Year-on-Year Change (%) | Operating Cost Year-on-Year Change (%) | Gross Margin Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Engineering Design | 3,777,362,551.88 | 2,453,639,855.78 | 35.04 | 14.00 | 14.68 | decrease of 0.39 percentage points | | Engineering Contracting | 1,595,430,124.44 | 1,563,634,891.83 | 1.99 | 10.48 | 10.56 | decrease of 0.07 percentage points | | Engineering Technical Management & Survey | 559,936,166.23 | 410,707,753.47 | 26.65 | 9.24 | 10.31 | decrease of 0.71 percentage points | | Information Technology Services & Sales | 12,946,685.65 | 7,755,722.49 | 40.09 | 68.32 | 55.93 | increase of 4.75 percentage points | | Total | 5,945,675,528.20 | 4,435,738,223.57 | 25.40 | 12.66 | 12.83 | decrease of 0.11 percentage points | Main Business by Region | Region | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Margin (%) | Operating Revenue Year-on-Year Change (%) | Operating Cost Year-on-Year Change (%) | Gross Margin Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Local Projects | 2,927,963,690.52 | 2,358,116,658.86 | 19.46 | 8.43 | 6.54 | increase of 1.43 percentage points | | Projects Outside Shanghai | 2,661,994,466.69 | 1,864,461,301.38 | 29.96 | 19.37 | 23.32 | decrease of 2.24 percentage points | | Overseas Projects | 355,717,370.99 | 213,160,263.33 | 40.08 | 2.42 | 3.52 | decrease of 0.63 percentage points | | Total | 5,945,675,528.20 | 4,435,738,223.57 | 25.40 | 12.66 | 12.83 | decrease of 0.11 percentage points | - Total R&D investment was **263 million CNY**, accounting for **4.41%** of operating revenue; the number of R&D personnel was **332**, accounting for **4.63%** of the company's total workforce[59](index=59&type=chunk) - Investment income was **55.8844 million CNY**, a **210.46% year-on-year increase**, primarily due to increased cash dividends from associate Shanghai New Jiangwan City Investment Development Co., Ltd. and increased investment income recognized under the equity method from the new equity investment in Wuxi Municipal Design and Research Institute Co., Ltd[64](index=64&type=chunk) Asset and Liability Status Changes | Item Name | Period-End Amount (CNY) | Period-End Share of Total Assets (%) | Prior Period-End Amount (CNY) | Prior Period-End Share of Total Assets (%) | Period-End Change from Prior Period-End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Notes and Accounts Receivable | 2,021,658,367.32 | 23.83 | 1,457,319,046.95 | 19.68 | 38.72 | Due to revenue growth, new large-value settlement receivables from completed general contracting projects | | Available-for-Sale Financial Assets | 469,244,993.41 | 5.55 | 251,947,613.48 | 3.40 | 86.84 | Subsidiary Yunzhu Investment's new equity investment in Shanghai Shentong Jinpu Phase I New Industry Equity Investment Partnership (Limited Partnership) | | Notes and Accounts Payable | 2,480,693,922.77 | 29.24 | 1,850,779,249.27 | 25.00 | 34.04 | Increase in estimated payable subcontracting fees at period-end based on completion progress | | Long-Term Borrowings | 245,594,333.75 | 2.89 | 128,913,719.16 | 1.74 | 90.51 | New medium-to-long-term M&A loans and special borrowings | - Restricted assets at period-end totaled **238 million CNY**, mainly including **16.5063 million CNY** in frozen monetary funds and **219 million CNY** in fixed assets pledged by subsidiary Wuhan Zhenghua for long-term borrowings[67](index=67&type=chunk) - The industry landscape is moving towards deep restructuring and reshuffling, with structural imbalances in supply and demand, and integrated development becoming a key pursuit, leading to diversified enterprise development positioning[69](index=69&type=chunk) - Engineering general contracting and whole-process engineering consulting models will become the main service models in the future, with data and technology serving as important entry points for business innovation and development[69](index=69&type=chunk) - The industry faces issues such as the gap between scaled expansion and high-quality growth, inadequate implementation of regulatory policies, insufficient integration of industry and technology, and an imbalance between talent supply and demand[70](index=70&type=chunk) [Future Development Strategy and Risks](index=19&type=section&id=Section%204%20Future%20Development%20Strategy%20and%20Risks) The company's future development strategy is guided by "comprehensive marketization, cross-sector integration, high-tech specialization, and deep internationalization," focusing on urban modernization, urban renewal, national new area construction, and the "Belt and Road" initiative, with plans to deepen its "grand operation" mechanism to achieve over **10 billion CNY** in new contract value, strengthen capital operations, and pursue incremental growth, while facing risks related to macroeconomics, policies, market operations, project management, human resources, accounts receivable management, and investment and M&A integration - The company's "13th Five-Year Plan" development strategy and future core development philosophy are to become an "integrated service provider offering high-quality comprehensive solutions for urban construction," with the basic principles of "comprehensive marketization, cross-sector integration, high-tech specialization, and deep internationalization"[83](index=83&type=chunk) - The company will continue to focus on urban modernization, urban renewal, and characteristic towns markets, concentrate on national new area construction such as "Xiong'an New Area" and "Guangdong-Hong Kong-Macao Greater Bay Area," and actively respond to the "Belt and Road" initiative to expand its international market presence[83](index=83&type=chunk) - The company plans to deepen the implementation of its "grand operation" mechanism, establish integrated coordination management, and strive to achieve the goal of "exceeding **10 billion CNY**" in new contract value in **2019**[85](index=85&type=chunk) - The company will deeply cultivate specialized fields, expand and optimize specialized businesses, and build specialized teams such as the Transportation Hub and Vertical City Design Institute, Medical and Elderly Care Institute, and Marine Institute[86](index=86&type=chunk) - It will continue to strengthen and expand the engineering general contracting business segment, improve profitability, and build professional service capabilities for whole-process engineering consulting[86](index=86&type=chunk)[87](index=87&type=chunk) - The company will strengthen capital operations and management, promote incremental development, plan to increase capital in Shanghai Institute, Shenyuan Geotechnical, and Huajian International, and seek suitable domestic and international acquisition projects[87](index=87&type=chunk) - The company faces risks from macroeconomic downturns, policy changes (e.g., qualification relaxation, architect responsibility system), intensified market competition, increased project management complexity, loss of core talent, accounts receivable management, and investment and M&A integration[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) [Significant Matters](index=22&type=section&id=Section%205%20Significant%20Matters) This chapter discloses Huajian Group's significant matters during the reporting period, including profit distribution plans, fulfillment of commitments, changes in accounting policies and estimates, appointment of accounting firms, major litigation and arbitration, equity incentive plans, related party transactions, and social responsibility performance [Profit Distribution Plan](index=22&type=section&id=1%E3%80%81Ordinary%20Share%20Profit%20Distribution%20or%20Capital%20Reserve%20to%20Share%20Capital%20Increase%20Plan) The company proposes to distribute a cash dividend of **CNY 1.8** (tax inclusive) per **10 shares** to all shareholders based on the total share capital at the equity registration date for the 2018 profit distribution, and to convert capital reserves into **2 shares** per **10 shares**, with this plan subject to approval by the general meeting of shareholders - The company proposes to distribute a cash dividend of **CNY 1.8** (tax inclusive) per **10 shares** to all shareholders based on the total share capital at the equity registration date for the 2018 profit distribution, totaling approximately **80.1230 million CNY** (tax inclusive)[93](index=93&type=chunk) - Concurrently, the company proposes to convert capital reserves into **2 shares** per **10 shares** for all shareholders, totaling approximately **89.0255 million shares**[93](index=93&type=chunk) Ordinary Share Dividend Distribution Plans for the Past Three Years | Dividend Year | Cash Dividend per 10 Shares (CNY) (Tax Inclusive) | Capital Reserve to Share Capital Increase per 10 Shares (shares) | Cash Dividend Amount (CNY) (Tax Inclusive) | Ratio to Net Profit Attributable to Ordinary Shareholders of Listed Company in Consolidated Statements (%) | | :--- | :--- | :--- | :--- | :--- | | 2018 | 1.8 | 2 | 80,122,955.76 | 30.40 | | 2017 | 1.5 | 0 | 64,831,219.80 | 25.28 | | 2016 | - | - | - | - | - As of March 29, 2019, the company's total share capital increased from **432,208,132 shares** to **445,127,532 shares**, and the 2018 dividend distribution and capital increase plans will be implemented based on this new share capital[95](index=95&type=chunk) [Fulfillment of Commitments](index=23&type=section&id=Section%205%20Fulfillment%20of%20Commitments) Controlling shareholder Shanghai Modern Architectural Design (Group) Co., Ltd. strictly fulfilled its commitments regarding share lock-up, resolution of horizontal competition, resolution of related party transactions, and asset value guarantee for injected assets during the reporting period - Controlling shareholder Shanghai Modern Architectural Design (Group) Co., Ltd.'s shares in Huajian Group, obtained through a major asset restructuring, were restricted from listing or transfer for **36 months** from the issuance completion date, and this commitment has been strictly fulfilled[97](index=97&type=chunk) - Modern Group committed to resolving horizontal competition, not directly or indirectly operating businesses that compete with Huajian Group, and plans to inject Shanghai Land Highway Engineering Consulting Design Co., Ltd. into Huajian Group when appropriate[97](index=97&type=chunk)[99](index=99&type=chunk) - Modern Group committed to strictly controlling related party transactions, avoiding and reducing related party transactions with Huajian Group, and preventing illegal occupation of funds and assets[99](index=99&type=chunk) - Modern Group committed to compensating Huajian Group with shares or cash if the target assets experienced impairment, and this commitment has been strictly fulfilled[99](index=99&type=chunk) - Modern Group committed that the cumulative net profit (excluding non-recurring gains and losses) of Wuxi Municipal Design and Research Institute Co., Ltd.'s **28%** equity asset for **2018-2020** would not be less than **24.4175 million CNY**, and this commitment has been strictly fulfilled[100](index=100&type=chunk) [Changes in Accounting Policies and Estimates](index=26&type=section&id=Section%205%20Changes%20in%20Accounting%20Policies%20and%20Estimates) The company adjusted its financial statement format in accordance with new Ministry of Finance regulations and changed the bad debt provision ratio for accounts receivable in its engineering contracting business, resulting in a **4.1291 million CNY** decrease in bad debt provisions and a **0.9256 million CNY** increase in income tax expense at period-end - In accordance with the Ministry of Finance's "Notice on Revising and Issuing the 2018 General Enterprise Financial Statement Format," the company adjusted its financial statement format, such as combining "Notes Receivable" and "Accounts Receivable"[102](index=102&type=chunk) - The company changed its accounting estimate for bad debt provisions for accounts receivable in its engineering contracting business, adjusting the provision ratios for various aging intervals[102](index=102&type=chunk)[103](index=103&type=chunk) Changes in Bad Debt Provision Ratios for Engineering Contracting Accounts Receivable | Aging | Provision Ratio Before Change (%) | Provision Ratio After Change (%) | | :--- | :--- | :--- | | Within 6 months (inclusive) | 0.00 | 0.00 | | 6 months - 1 year (inclusive) | 10.00 | 3.00 | | 1-2 years (inclusive) | 20.00 | 10.00 | | 2-3 years (inclusive) | 40.00 | 40.00 | | 3-4 years (inclusive) | 70.00 | 60.00 | | 4-5 years (inclusive) | 70.00 | 80.00 | | Over 5 years | 100.00 | 100.00 | - The change in accounting estimate resulted in a **4.1291 million CNY** decrease in "Accounts Receivable - Bad Debt Provision" and a **4.1291 million CNY** decrease in "Asset Impairment Losses" for the current period; a corresponding **0.9256 million CNY** decrease in deferred income tax assets and a **0.9256 million CNY** increase in income tax expense[104](index=104&type=chunk) [Appointment of Accounting Firm](index=27&type=section&id=Section%205%20Appointment%2C%20Dismissal%20of%20Accounting%20Firm) The company appointed Zhonghua Certified Public Accountants (Special General Partnership) as its audit firm for the 2018 financial report and internal control, with audit fees of **1.4 million CNY** and **0.6 million CNY**, respectively - The company appointed Zhonghua Certified Public Accountants (Special General Partnership) as its domestic accounting firm, with a fee of **1.4 million CNY** and an audit tenure of **4 years**[108](index=108&type=chunk) - The internal control audit firm is Zhonghua Certified Public Accountants (Special General Partnership), with a fee of **0.6 million CNY**[108](index=108&type=chunk) [Major Litigation and Arbitration Matters](index=27&type=section&id=Section%205%20Major%20Litigation%20and%20Arbitration%20Matters) During the reporting period, the company had no major litigation or arbitration matters - The company had no major litigation or arbitration matters this year[108](index=108&type=chunk) [Equity Incentive Plan](index=27&type=section&id=Section%205%20Equity%20Incentive%20Plan) The company disclosed its 2018 Restricted Stock Incentive Plan (Draft) on December 25, 2018, and completed the stock registration on March 29, 2019 - The company disclosed its 2018 Restricted Stock Incentive Plan (Draft) and other related content on December 25, 2018[111](index=111&type=chunk) - As of March 29, 2019, the company had completed the implementation of the aforementioned plan and disclosed temporary announcements[111](index=111&type=chunk) [Major Related Party Transactions](index=28&type=section&id=Section%205%20Major%20Related%20Party%20Transactions) During the reporting period, the company engaged in daily operational related party transactions, primarily involving the acceptance of property services and provision of labor, and its wholly-owned subsidiary, East China Architectural Design and Research Institute Co., Ltd., acquired **28%** equity in Wuxi Municipal Design and Research Institute Co., Ltd. from controlling shareholder Shanghai Modern Architectural Design (Group) Co., Ltd. in cash - The company's estimated daily related party transaction amount for 2018 was approximately **176 million CNY**[112](index=112&type=chunk) - The company's wholly-owned subsidiary, East China Architectural Design and Research Institute Co., Ltd., acquired **28%** equity in Wuxi Municipal Design and Research Institute Co., Ltd. from controlling shareholder Shanghai Modern Architectural Design (Group) Co., Ltd. in cash[113](index=113&type=chunk) Related Party Receivables and Payables | Related Party | Related Relationship | Beginning Balance (CNY) | Amount Incurred (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | Shanghai Modern Architectural Design (Group) Co., Ltd. | Parent Company | 34,292,179.82 | -30,000.00 | 34,262,179.82 | [Major Contracts and Guarantees](index=30&type=section&id=Section%205%20Major%20Contracts%20and%20Their%20Performance) The company has leasing arrangements, acting as a lessee for office buildings, and provides guarantees for its subsidiaries, with the total guarantee amount representing **5.86%** of the company's net assets Company as Lessor Leasing Information | Lessor Name | Lessee Name | Leased Asset Description | Lease Income (CNY) | Related Party Transaction | | :--- | :--- | :--- | :--- | :--- | | Modern Real Estate Company | Company's Subsidiaries | Office Building | Not Applicable | Yes | | The Company | Modern Design Group | Office Building | 1,310,912.35 | Yes | | The Company | Modern Property Company | Office Building | 545,975.49 | Yes | Company and its Subsidiaries' Guarantees for Subsidiaries | Indicator | Amount (CNY) | | :--- | :--- | | Total Guarantees for Subsidiaries Incurred During Reporting Period | 198,499,409.59 | | Total Guarantees for Subsidiaries Outstanding at Period-End (B) | 158,015,838.42 | | Total Guarantees (A+B) | 158,015,838.42 | | Total Guarantees as % of Company's Net Assets | 5.86 | | Debt Guarantees Provided Directly or Indirectly for Guaranteed Parties with Debt-to-Asset Ratio Exceeding 70% (D) | 123,699,838.42 | | Total of the Above Three Guarantee Amounts (C+D+E) | 123,699,838.42 | - Total guarantees for subsidiaries incurred during the reporting period amounted to **198 million CNY**, including **164 million CNY** in bank guarantees issued by East China Design Institute for wholly-owned or controlled subsidiaries, and **5 million USD** in letter of credit guarantees for subsidiary Wilson[118](index=118&type=chunk) [Social Responsibility Performance](index=32&type=section&id=Section%205%20Social%20Responsibility%20Performance) The company actively fulfills its social responsibilities, engaging in poverty alleviation efforts, investing **58,800 CNY** in funds and **200,000 CNY** in in-kind donations in 2018, supporting **17 impoverished students**, and improving educational resources in impoverished areas - The company actively fulfills its social responsibilities, with details on poverty alleviation work available in the company's 2018 Social Responsibility Report published on the Shanghai Stock Exchange website on April 30, 2019[121](index=121&type=chunk)[124](index=124&type=chunk) 2018 Targeted Poverty Alleviation Achievements | Indicator | Quantity and Implementation (ten thousand CNY) | | :--- | :--- | | Overall Situation - Funds | 5.88 | | Overall Situation - In-kind Donations | 20 | | Overall Situation - Number of Registered Impoverished People Helped to Escape Poverty (persons) | 0 | | Education Poverty Alleviation - Amount Invested in Supporting Impoverished Students | 1.38 | | Education Poverty Alleviation - Number of Impoverished Students Supported (persons) | 17 | | Education Poverty Alleviation - Amount Invested in Improving Educational Resources in Impoverished Areas | 20 | | Basic Social Security - Amount Invested in Helping Impoverished Disabled People | 0.5 | | Basic Social Security - Number of Impoverished Disabled People Helped (persons) | 1 | | Social Poverty Alleviation - Amount Invested in Designated Poverty Alleviation Work | 4 | [Changes in Ordinary Shares and Shareholder Information](index=35&type=section&id=Section%206%20Changes%20in%20Ordinary%20Shares%20and%20Shareholder%20Information) This chapter details Huajian Group's ordinary share capital changes, restricted share movements, securities issuance and listing, as well as the total number of shareholders, top ten shareholders, and ultimate controlling party during the reporting period [Ordinary Share Capital Changes](index=35&type=section&id=1%E3%80%81Changes%20in%20Ordinary%20Share%20Capital) During the reporting period, there were no changes in the company's total ordinary share capital or capital structure, with the period-end total restricted shares amounting to **59,334,425 shares**, primarily held by the controlling shareholder, Shanghai Modern Architectural Design (Group) Co., Ltd., due to shares issued for asset acquisition - During the reporting period, there were no changes in the company's total ordinary share capital or capital structure[127](index=127&type=chunk) Changes in Restricted Shares | Shareholder Name | Restricted Shares at Year-Beginning (shares) | Shares Released from Restriction This Year (shares) | Shares Added to Restriction This Year (shares) | Restricted Shares at Year-End (shares) | Reason for Restriction | Date of Release from Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Modern Architectural Design (Group) Co., Ltd. | 11,060,377 | 11,060,377 | 0 | 0 | Not to be listed or transferred within 36 months from the completion of asset acquisition by share issuance | 2018.9.10 | | Shanghai Modern Architectural Design (Group) Co., Ltd. | 59,334,425 | 0 | 0 | 59,334,425 | Not to be listed or transferred within 36 months from the completion of asset acquisition by share issuance | 2020.3.3 | | Everbright Pramerica Fund - Bank of Ningbo - Jizhou Asset Management (Shanghai) Co., Ltd. | 4,933,399 | 4,933,399 | 0 | 0 | Not to be listed or transferred within 12 months from the completion of non-public offering | 2018.3.19 | | Caitong Fund - Industrial and Commercial Bank of China - Shaanxi International Trust - Shanguotou · Wenjian No. 5 Targeted Investment Collective Fund Trust Plan | 1,933,892 | 1,933,892 | 0 | 0 | Not to be listed or transferred within 12 months from the completion of non-public offering | 2018.3.19 | | Shanghai Electric Power Science and Technology Chengding Smart Industry Investment Partnership (Limited Partnership) | 1,480,019 | 1,480,019 | 0 | 0 | Not to be listed or transferred within 12 months from the completion of non-public offering | 2018.3.19 | | Shanghai Shibei Hi-Tech Co., Ltd. | 1,381,351 | 1,381,351 | 0 | 0 | Not to be listed or transferred within 12 months from the completion of non-public offering | 2018.3.19 | | Tibet Honghan Equity Investment Management Co., Ltd. | 1,381,351 | 1,381,351 | 0 | 0 | Not to be listed or transferred within 12 months from the completion of non-public offering | 2018.3.19 | | North Trust Ruifeng Fund - China Merchants Bank - China Foreign Economic and Trade Trust Co., Ltd. - Foreign Trade Trust - Zhiyuan Huiying Phase 1 Private Securities Investment Fund | 1,381,351 | 1,381,351 | 0 | 0 | Not to be listed or transferred within 12 months from the completion of non-public offering | 2018.3.19 | | Caitong Fund - Industrial and Commercial Bank of China - Shenzhen Pusu Capital Management Co., Ltd. | 986,680 | 986,680 | 0 | 0 | Not to be listed or transferred within 12 months from the completion of non-public offering | 2018.3.19 | | Caitong Fund - China Merchants Bank - Hunan Tianrui Fengnian Equity Investment Co., Ltd. | 246,670 | 246,670 | 0 | 0 | Not to be listed or transferred within 12 months from the completion of non-public offering | 2018.3.19 | | Citic-Prudential Fund Management Co., Ltd. | 88,804 | 88,804 | 0 | 0 | Not to be listed or transferred within 12 months from the completion of non-public offering | 2018.3.19 | | Total | 84,208,319 | 24,873,894 | 0 | 59,334,425 | / | / | [Shareholders and Ultimate Controlling Party](index=37&type=section&id=Section%206%20Shareholders%20and%20Ultimate%20Controlling%20Party) As of the end of the reporting period, the company had **16,919** ordinary shareholders, with Shanghai Modern Architectural Design (Group) Co., Ltd. as the controlling shareholder, holding **56.10%** of the shares, and the ultimate controlling party being the Shanghai State-owned Assets Supervision and Administration Commission - As of the end of the reporting period, the total number of ordinary shareholders was **16,919**[132](index=132&type=chunk) Top Ten Shareholders' Shareholding | Shareholder Name (Full Name) | Shares Held at Period-End (shares) | Percentage (%) | Number of Restricted Shares Held (shares) | Share Status | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Modern Architectural Design (Group) Co., Ltd. | 242,455,352 | 56.10 | 59,334,425 | None | State-owned Legal Person | | Shanghai Guosheng (Group) Co., Ltd. | 66,083,468 | 15.29 | - | Unknown | State-owned Legal Person | | Everbright Pramerica Fund - Bank of Ningbo - Jizhou Asset Management (Shanghai) Co., Ltd. | 4,933,399 | 1.14 | - | Unknown | Other | | China Galaxy Securities Co., Ltd. Agreed Repurchase Securities Trading Special Securities Account | 4,280,000 | 0.99 | - | Unknown | Other | | Caitong Fund - Industrial and Commercial Bank of China - Shaanxi International Trust - Shanguotou · Wenjian No. 5 Targeted Investment Collective Fund Trust Plan | 1,933,892 | 0.45 | - | Unknown | Other | | Industrial and Commercial Bank of China Co., Ltd. - CSI Shanghai State-owned Enterprise ETF | 1,922,123 | 0.44 | - | Unknown | Other | | Shanghai Electric Power Science and Technology Chengding Smart Industry Investment Partnership (Limited Partnership) | 1,480,019 | 0.34 | - | Unknown | Other | | Shanghai Shibei Hi-Tech Co., Ltd. | 1,381,351 | 0.32 | - | Unknown | Other | | Yang Qiming | 1,262,500 | 0.29 | - | Unknown | Domestic Natural Person | | Wang Yueying | 1,185,500 | 0.27 | - | Unknown | Domestic Natural Person | - The company's controlling shareholder is Shanghai Modern Architectural Design (Group) Co., Ltd., and the ultimate controlling party is the Shanghai State-owned Assets Supervision and Administration Commission[138](index=138&type=chunk)[141](index=141&type=chunk)[579](index=579&type=chunk) Other Legal Persons Holding More Than Ten Percent of Shares | Legal Person Shareholder Name | Person in Charge or Legal Representative | Date of Establishment | Registered Capital (ten thousand CNY) | Main Business Operations or Management Activities | | :--- | :--- | :--- | :--- | :--- | | Shanghai Guosheng (Group) Co., Ltd. | Shou Weiguang | September 26, 2007 | 2,006,600.00 | Engages in investment primarily non-financial, supplemented by financial activities, capital operations and asset management, industry research, socio-economic consulting, etc. | [Preferred Shares Information](index=42&type=section&id=Section%207%20Preferred%20Shares%20Information) During the reporting period, Huajian Group had no preferred shares - The company has no preferred shares[145](index=145&type=chunk) [Directors, Supervisors, Senior Management, and Employees](index=43&type=section&id=Section%208%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Employees) This chapter details the shareholding changes, remuneration, and appointments of Huajian Group's directors, supervisors, and senior management, as well as the professional composition, educational background, compensation policies, and training plans for the company's employees [D&O Shareholding and Remuneration](index=43&type=section&id=1%E3%80%81Shareholding%20Changes%20and%20Remuneration) During the reporting period, the company's chairman changed from Qin Yun to Qin Baohua, Sun Rongqian and Ma Dong resigned as supervisors, and Zhou Qing was appointed as a new supervisor, with several directors and senior management increasing their shareholdings through secondary market transactions, and the total pre-tax remuneration for D&Os increasing significantly from the previous year to **17.0986 million CNY**, primarily due to the implementation of professional manager assessment and compensation management methods and the distribution of tenure incentives - During the reporting period, the company's chairman changed from Qin Yun to Qin Baohua, Sun Rongqian and Ma Dong resigned as supervisors, and Zhou Qing was appointed as a new supervisor[155](index=155&type=chunk) - Several directors and senior management increased their shareholdings through secondary market transactions during the reporting period, such as Zhang Hua increasing by **102,600 shares**, Shen Di by **28,100 shares**, and Long Ge by **55,000 shares**[147](index=147&type=chunk) - Total pre-tax remuneration received from the company during the reporting period was **17.0986 million CNY**, a significant increase from 2017, primarily due to the implementation of professional manager assessment and compensation management methods and incentive fund plans, as well as the distribution of **60%** of the 2015-2017 tenure incentives in 2018[147](index=147&type=chunk)[148](index=148&type=chunk) [D&O Appointments](index=46&type=section&id=2%E3%80%81Appointments%20of%20Current%20and%20Departed%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management%20during%20the%20Reporting%20Period) The company's directors, supervisors, and senior management hold positions in shareholder entities and other organizations, such as Qin Baohua serving as Chairman of Shanghai Modern Architectural Design (Group) Co., Ltd., Li An as Director and Vice President of Shanghai Guosheng (Group) Co., Ltd., and Zhuo Fumin as Chairman/Managing Partner of Source Code Capital - Qin Baohua serves as Chairman of Shanghai Modern Architectural Design (Group) Co., Ltd., Zhang Hua serves as Director of Shanghai Modern Architectural Design (Group) Co., Ltd., and Li An serves as Director and Vice President of Shanghai Guosheng (Group) Co., Ltd[150](index=150&type=chunk) - Independent Director Zhuo Fumin serves as Chairman/Managing Partner of Source Code Capital, Zhu Jiandi serves as Chief Partner, Chairman, and Chief Accountant of Lixin Certified Public Accountants (Special General Partnership), and Sheng Leiming serves as Chairman of the Partners' Meeting and Lawyer at Guantao Zhongmao Law Firm[151](index=151&type=chunk)[152](index=152&type=chunk) [Employee Information and Training](index=49&type=section&id=6%E3%80%81Employee%20Information%20of%20Parent%20Company%20and%20Major%20Subsidiaries) The company has a total of **7,171 employees**, with technical personnel accounting for the largest proportion, and the vast majority holding bachelor's degrees or higher, while it has established a fair, efficiency-oriented incentive-based compensation distribution mechanism and places high importance on talent development and training, conducting programs for leadership capability enhancement, core talent team building, and job skill training Employee Professional Composition | Professional Category | Number of Employees (persons) | | :--- | :--- | | Production Personnel | - | | Sales Personnel | 115 | | Technical Personnel | 6,315 | | Financial Personnel | 101 | | Administrative Personnel | 640 | | Total | 7,171 | Employee Education Level | Education Level Category | Number (persons) | | :--- | :--- | | Bachelor's Degree (inclusive) and Above | 6,241 | | Below Bachelor's Degree | 930 | | Total | 7,171 | - The company has **1,634 individuals** with various professional registration qualifications and **1,412 individuals** with senior professional titles[158](index=158&type=chunk) - The company has established a competitive incentive-based compensation distribution mechanism that is fair, efficiency-oriented, position-centric, and performance-based, implementing artificial cost and total wage budget control and management[159](index=159&type=chunk) - The company places high importance on talent development and training, and in 2018, it conducted programs for leadership capability enhancement, core talent team building, and employee job skill and competency training, while also exploring plans for establishing the Huajian Academy, in line with the group's strategy[161](index=161&type=chunk)[162](index=162&type=chunk) [Corporate Governance](index=50&type=section&id=Section%209%20Corporate%20Governance) This chapter outlines Huajian Group's corporate governance practices, covering shareholders and general meetings, controlling shareholders and listed companies, directors and the board of directors, supervisors and the supervisory board, performance evaluation and incentive/restraint mechanisms, information disclosure and transparency, insider registration management, senior management, and investor relations, demonstrating a sound and well-operated corporate governance structure [Corporate Governance Overview](index=50&type=section&id=1%E3%80%81Corporate%20Governance%20Overview) The company strictly convenes and holds general meetings in accordance with regulations, ensuring equal rights for all shareholders, while the controlling shareholder acts in a standardized manner, without directly or indirectly interfering with company decisions and operations, and the board of directors, composed of seven directors including three independent directors and one employee director, operates in compliance with procedures, with independent directors diligently performing their duties, and the supervisory board conscientiously overseeing board operations and financial conditions; the company has refined its performance evaluation standards and incentive/restraint mechanisms for senior management, drafting the 2018 Restricted Stock Incentive Plan, and strictly adheres to information disclosure regulations, ensuring true, accurate, timely, and complete information, while strengthening insider information management - The company strictly convenes and holds general meetings in accordance with the "Articles of Association," "Rules of Procedure for General Meetings," and relevant laws and regulations, ensuring all shareholders' right to know, participate, and vote on major company matters[165](index=165&type=chunk) - The company's controlling shareholder, Shanghai Modern Architectural Design (Group) Co., Ltd., acts in a standardized manner, without directly or indirectly interfering with the company's decision-making and operational activities beyond the general meeting[165](index=165&type=chunk) - The company's board of directors consists of seven directors, including one chairman, three independent directors, and one employee director, with the selection of directors and the composition of the board meeting legal, regulatory, and "Articles of Association" requirements[165](index=165&type=chunk) - The company's board of directors has five specialized committees: Strategy and Investment Committee, Audit and Risk Control Committee, Remuneration and Assessment Committee, Nomination Committee, and Budget Management Committee, which are clearly divided, with distinct responsibilities, and operate effectively[166](index=166&type=chunk) - The supervisory board conscientiously fulfills its duties in accordance with relevant laws and regulations, overseeing the daily operations of the board of directors, the company's financial condition, operating performance, related party transactions, and the legality and compliance of director and senior management selection and performance[167](index=167&type=chunk) - The company continuously improved its performance evaluation standards and incentive and restraint mechanisms for senior management, drafting the "East China Architectural Design Group Co., Ltd. 2018 Restricted Stock Incentive Plan (Draft)" and its summary[167](index=167&type=chunk) - The company strictly adheres to the "Information Disclosure Management System" and other relevant regulations, ensuring true, accurate, timely, and complete information disclosure, completing the disclosure of **60 temporary announcements** during the reporting period[168](index=168&type=chunk) - The company strictly regulates the confidentiality management of inside information, the registration management of insiders before the legal public disclosure of inside information, and the reporting of major event progress memorandums[168](index=168&type=chunk) [General Meeting of Shareholders](index=52&type=section&id=2%E3%80%81Overview%20of%20General%20Meetings%20of%20Shareholders) During the reporting period, the company held **3** general meetings of shareholders, and all resolutions were disclosed on the Shanghai Stock Exchange website - During the reporting period, the company held **3** general meetings of shareholders, including the 2017 Annual General Meeting, the 2018 First Extraordinary General Meeting, and the 2018 Second Extraordinary General Meeting[170](index=170&type=chunk) - All resolutions of the general meetings of shareholders have been published on the Shanghai Stock Exchange website[170](index=170&type=chunk) [Director Performance](index=52&type=section&id=3%E3%80%81Director%20Performance) The company's Board of Directors held **11 meetings**, including **3 on-site meetings**, **7 teleconference meetings**, and **1 hybrid meeting**, with all directors diligently attending the meetings Directors' Attendance at Board and Shareholder Meetings | Director Name | Independent Director | Number of Board Meetings to Attend This Year | Number of Personal Attendances | Number of Attendances by Teleconference | Number of Attendances by Proxy | Number of Absences | Absent Twice Consecutively | Number of Shareholder Meeting Attendances | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Qin Baohua | No | 4 | 4 | 2 | 0 | 0 | No | 2 | | Zhang Hua | No | 11 | 11 | 7 | 0 | 0 | No | 3 | | Li An | No | 11 | 9 | 7 | 2 | 0 | No | 0 | | Zhuo Fumin | Yes | 11 | 11 | 7 | 0 | 0 | No | 0 | | Zhu Jiandi | Yes | 11 | 11 | 7 | 0 | 0 | No | 2 | | Sheng Leiming | Yes | 11 | 11 | 8 | 0 | 0 | No | 2 | | Wang Ling | No | 11 | 11 | 7 | 0 | 0 | No | 2 | | Qin Yun | No | 7 | 7 | 5 | 0 | 0 | No | 1 | - During the year, **11 board meetings** were held, including **3 on-site meetings**, **7 teleconference meetings**, and **1 hybrid meeting**[171](index=171&type=chunk) [Performance of Special Committees](index=53&type=section&id=4%E3%80%81Important%20Opinions%20and%20Suggestions%20Raised%20by%20Specialized%20Committees%20of%20the%20Board%20of%20Directors%20in%20Performing%20Their%20Duties%20during%20the%20Reporting%20Period%2C%20and%20Specific%20Circumstances%20of%20Any%20Disagreements) During the reporting period, the company's Board of Directors' specialized committees, including the Strategy and Investment Committee, Audit and Risk Control Committee, Remuneration and Assessment Committee, Nomination Committee, and Budget Management Committee, all operated effectively, providing important advisory opinions and suggestions for the company's decision-making - During the reporting period, the company held **4 meetings** of the Strategy and Investment Committee, **5 meetings** of the Audit and Risk Control Committee, **2 meetings** of the Remuneration and Assessment Committee, **1 meeting** of the Nomination Committee, and **1 meeting** of the Budget Management Committee[173](index=173&type=chunk) - Each specialized committee provided important advisory opinions and suggestions on the feasibility assessment of proposed investment projects, audit of periodic reports, implementation of internal control standards, selection of audit firms, appointment of senior management, remuneration of directors, supervisors, and senior management, and the company's sustainable development[173](index=173&type=chunk) [Senior Management Evaluation and Incentive Mechanism](index=53&type=section&id=7%E3%80%81Evaluation%20Mechanism%20for%20Senior%20Management%20during%20the%20Reporting%20Period%2C%20and%20the%20Establishment%20and%20Implementation%20of%20Incentive%20Mechanisms) The company's Board of Directors approved resolutions on the "Huajian Group Manager 2015-2017 Tenure and 2017 Annual Performance Assessment Report and 2017 Annual Performance Salary Distribution Plan," the "Huajian Group Incentive Fund Plan 2017 Implementation Plan," and the "Huajian Group Operating Level Leadership Personnel 2015-2016 Tenure Incentive Distribution Plan," continuously improving the performance evaluation standards and incentive and restraint mechanisms for senior management - The company's Board of Directors approved the "Resolution on the Huajian Group Manager 2015-2017 Tenure and 2017 Annual Performance Assessment Report and 2017 Annual Performance Salary Distribution Plan" and the "Resolution on the Huajian Group Incentive Fund Plan 2017 Implementation Plan"[174](index=174&type=chunk) - The company's Board of Directors approved the "Resolution on the Huajian Group Operating Level Leadership Personnel 2015-2016 Tenure Incentive Distribution Plan"[174](index=174&type=chunk) [Internal Control Report](index=53&type=section&id=8%E3%80%81Disclosure%20of%20Internal%20Control%20Self-Evaluation%20Report) The company has disclosed its 2018 Internal Control Evaluation Report, and Zhonghua Certified Public Accountants issued a standard unqualified audit report on internal control - The company evaluated the effectiveness of its internal controls as of December 31, 2018, and formed the "East China Architectural Design Group Co., Ltd. 2018 Internal Control Evaluation Report"[175](index=175&type=chunk) - Zhonghua Certified Public Accountants (Special General Partnership) audited the effectiveness of the company's internal controls over financial reporting as of December 31, 2018, and issued a standard unqualified "East China Architectural Design Group Co., Ltd. 2018 Internal Control Audit Report"[175](index=175&type=chunk) [Corporate Bonds Information](index=181&type=section&id=Section%2010%20Corporate%20Bonds%20Information) During the reporting period, Huajian Group had no corporate bonds - The company has no corporate bonds[654](index=654&type=chunk) [Financial Report](index=54&type=section&id=Section%2011%20Financial%20Report) This chapter includes Huajian Group's 2018 audit report, consolidated and parent company financial statements (balance sheet, income statement, cash flow statement, statement of changes in owners' equity), and detailed notes to the financial statements, covering the company's basic information, scope of consolidation, significant accounting policies and estimates, taxation, notes to consolidated financial statement items, changes in the scope of consolidation, interests in other entities, risks related to financial instruments, fair value disclosures, related parties and related party transactions, commitments and contingencies, post-balance sheet events, other significant matters, and notes to parent company financial statement key items [Audit Report](index=54&type=section&id=1%E3%80%81Audit%20Report) Zhonghua Certified Public Accountants (Special General Partnership) issued a standard unqualified audit report on Huajian Group's 2018 financial statements, with key audit matters including operating revenue recognized using the percentage-of-completion method, bad debt provisions for accounts receivable, and goodwill impairment testing - Zhonghua Certified Public Accountants (Special General Partnership) issued a **standard unqualified audit report** for Huajian Group[178](index=178&type=chunk) - Key audit matters include operating revenue recognized using the **percentage-of-completion method**, due to significant management estimates and judgments involved[182](index=182&type=chunk) - Key audit matters include bad debt provisions for accounts receivable, due to significant management estimates and judgments regarding recoverability and provision ratios[185](index=185&type=chunk)[186](index=186&type=chunk) - Key audit matters include goodwill impairment testing, due to the complexity of the testing process and significant management estimates and judgments in determining key parameters in the net present value of cash flows valuation model[189](index=189&type=chunk) [Financial Statements](index=60&type=section&id=2%E3%80%81Financial%20Statements) This chapter provides Huajian Group's 2018 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, comprehensively presenting the company's financial position, operating results, and cash flow situation 2018 Consolidated Balance Sheet Key Data | Item | Period-End Balance (CNY) | Period-Beginning Balance (CNY) | | :--- | :--- | :--- | | Total Current Assets | 6,086,890,667.35 | 5,269,642,505.44 | | Total Non-Current Assets | 2,397,958,999.46 | 2,133,879,405.71 | | Total Assets | 8,484,849,666.81 | 7,403,521,911.15 | | Total Current Liabilities | 5,319,533,156.89 | 4,575,659,314.56 | | Total Non-Current Liabilities | 291,713,762.67 | 176,473,435.58 | | Total Liabilities | 5,611,246,919.56 | 4,752,132,750.14 | | Total Owners' Equity Attributable to Parent Company | 2,697,690,239.18 | 2,482,114,202.98 | | Minority Interests | 175,912,508.07 | 169,274,958.03 | | Total Owners' Equity (or Shareholders' Equity) | 2,873,602,747.25 | 2,651,389,161.01 | 2018 Consolidated Income Statement Key Data | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Total Operating Revenue | 5,958,919,916.66 | 5,289,745,002.50 | | II. Total Operating Costs | 5,718,340,335.04 | 5,006,182,467.70 | | III. Operating Profit (Loss indicated by "-") | 319,366,188.09 | 315,451,843.27 | | IV. Total Profit (Total Loss indicated by "-") | 374,239,501.33 | 364,039,951.57 | | V. Net Profit (Net Loss indicated by "-") | 306,454,144.26 | 294,190,138.99 | | Net Profit Attributable to Parent Company Shareholders | 263,540,732.70 | 256,411,168.89 | | VI. Net Other Comprehensive Income After Tax | 16,866,523.30 | -21,472,628.05 | | VII. Total Comprehensive Income | 323,320,667.56 | 272,717,510.94 | | VIII. Earnings Per Share: (I) Basic Earnings Per Share (CNY/share) | 0.6098 | 0.6195 | 2018 Consolidated Cash Flow Statement Key Data | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Net Cash Flow from Operating Activities | 338,073,328.56 | 407,213,953.73 | | II. Net Cash Flow from Investing Activities | -333,075,064.52 | -439,519,037.81 | | III. Net Cash Flow from Financing Activities | 53,146,347.23 | 469,695,745.63 | | V. Net Increase in Cash and Cash Equivalents | 49,911,895.24 | 437,885,410.69 | [Company Basic Information](index=75&type=section&id=3%E3%80%81Company%20Basic%20Information) Huajian Group, formerly Shanghai Lengguang Industrial Co., Ltd., was renamed East China Architectural Design Group Co., Ltd. in 2015 after multiple capital changes and major asset restructurings, with a registered capital of **432 million CNY** and a business scope covering construction engineering design, survey, supervision, cost consulting, and information technology R&D, and its consolidated financial statements are prepared under the reverse acquisition principle, with East China Design Institute as the accounting parent company - Huajian Group, originally named Shanghai Lengguang Industrial Co., Ltd., was listed on the Shanghai Stock Exchange on February 9, 1993[225](index=225&type=chunk) - After multiple capital changes, the company's registered capital was **432,208,132 CNY** as of the end of the reporting period[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk)[232](index=232&type=chunk)[233](index=233&type=chunk)[234](index=234&type=chunk) - In 2015, the company completed a major asset swap and share issuance for asset acquisition, with **100%** equity of East China Design Institute being injected into the company, and the company's controlling shareholder changed to Modern Group[230](index=230&type=chunk) - These consolidated financial statements are prepared under the principle of reverse acquisition, with East China Design Institute as the accounting parent company and the company as the subsidiary in the consolidated financial statements[244](index=244&type=chunk)[248](index=248&type=chunk) - East China Design Institute holds multiple Grade A qualifications in municipal engineering, architecture, landscape architecture engineering design, general contracting for housing construction projects, and urban and rural planning preparation[241](index=241&type=chunk) [Significant Accounting Policies and Estimates](index=80&type=section&id=5%E3%80%81Significant%20Accounting%20Policies%20and%20Estimates) This chapter details the company's accounting policies and estimates for financial statement preparation, including enterprise accounting standards, accounting period, operating cycle, functional currency, accounting treatment for business combinations, consolidated financial statement preparation methods, classification of joint arrangements, criteria for cash and cash equivalents, foreign currency transactions and translation of foreign currency financial statements, financial instruments, receivables, inventories, long-term equity investments, investment properties, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, employee benefits, provisions, revenue, government grants, deferred income tax assets/liabilities, leases, and goodwill, also disclosing changes in accounting policies and esti

[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) This section includes statements from the Board of Directors, Supervisory Board, and senior management affirming the quarterly report's accuracy, and confirms the report remains unaudited [Statement by Board of Directors, Supervisory Board, and Senior Management](index=3&type=section&id=1.1%20Statement%20by%20Board%20of%20Directors%2C%20Supervisory%20Board%2C%20and%20Senior%20Management) The Board of Directors, Supervisory Board, and senior management affirm the quarterly report's truthfulness, accuracy, and completeness, with all directors participating in the review - The Board of Directors, Supervisory Board, and senior management guarantee the quarterly report's truthfulness, accuracy, and completeness, free from false statements, misleading representations, or material omissions, assuming individual and joint legal responsibility[4](index=4&type=chunk) - All company directors attended the Board of Directors meeting to review the quarterly report[4](index=4&type=chunk) - Company head Qin Baohua, chief accountant Wu Fengyu, and head of accounting He Jing guarantee the truthfulness, accuracy, and completeness of the financial statements in the quarterly report[6](index=6&type=chunk) [Unaudited Quarterly Report Statement](index=3&type=section&id=1.4%20Unaudited%20Quarterly%20Report%20Statement) This company's first quarterly report is unaudited - This company's first quarterly report is unaudited[6](index=6&type=chunk) [Company Profile](index=3&type=section&id=Item%20II.%20Company%20Profile) This section provides an overview of the company's key financial performance, including asset and profit growth, cash flow, and detailed shareholder information as of the reporting period end [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) As of the reporting period end, total assets slightly decreased, while net assets attributable to shareholders increased; operating revenue and net profit attributable to shareholders both grew by double digits, though net cash flow from operating activities remained negative and slightly declined year-on-year Key Financial Data Overview (As of March 31, 2019) | Indicator | Current Period End/Year-to-Date (RMB) | Prior Year End/Prior Year-to-Date (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | **Balance Sheet Data:** | | | | | Total Assets | 8,356,981,839.72 | 8,484,849,666.81 | -1.51 | | Net Assets Attributable to Shareholders of Listed Company | 2,782,955,188.64 | 2,697,690,239.18 | 3.16 | | **Income Statement Data:** | | | | | Operating Revenue | 1,557,729,828.28 | 1,291,947,639.57 | 20.57 | | Net Profit Attributable to Shareholders of Listed Company | 81,815,629.80 | 71,138,198.99 | 15.01 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 59,183,254.53 | 47,924,634.81 | 23.49 | | Weighted Average Return on Net Assets (%) | 2.987 | 2.833 | Increased by 0.15 percentage points | | Basic Earnings Per Share (RMB/share) | 0.1893 | 0.1646 | 15.01 | | Diluted Earnings Per Share (RMB/share) | 0.1893 | 0.1646 | 15.01 | | **Cash Flow Statement Data:** | | | | | Net Cash Flow from Operating Activities | -468,875,660.30 | -446,888,951.73 | -4.92 | [Non-Recurring Gains and Losses](index=3&type=section&id=Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to **RMB 22,632,375.27**, primarily from government subsidies recognized in current profit or loss Non-Recurring Gains and Losses Items and Amounts (Current Period) | Item | Current Period Amount (RMB) | | :--- | :--- | | Government subsidies recognized in current profit or loss | 26,081,100.00 | | Other non-operating income and expenses | 545,222.89 | | Impact on minority interests (after tax) | -7,000.00 | | Income tax impact | -3,986,947.62 | | **Total** | **22,632,375.27** | [Shareholder Information](index=4&type=section&id=2.2%20Shareholder%20Information%20as%20of%20the%20Reporting%20Period%20End) As of the reporting period end, the company had **17,100 shareholders**; the top two state-owned corporate shareholders, Shanghai Xian Dai Architectural Design (Group) Co., Ltd. and Shanghai Guosheng (Group) Co., Ltd., collectively held over **69%** of shares, with the former holding a significant portion of restricted shares - As of the reporting period end, the total number of shareholders was **17,100**[8](index=8&type=chunk) Top Ten Shareholders' Holdings (As of March 31, 2019) | Shareholder Name | Shares Held at Period End (shares) | Proportion (%) | Number of Restricted Shares Held (shares) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | Shanghai Xian Dai Architectural Design (Group) Co., Ltd. | 242,455,352 | 54.47 | 59,334,425 | State-owned Legal Person | | Shanghai Guosheng (Group) Co., Ltd. | 66,083,468 | 14.85 | 0 | State | | Everbright Pramerica Fund - Bank of Ningbo - Jvzhou Asset Management (Shanghai) Co., Ltd. | 4,933,399 | 1.11 | 0 | Other | | Zhang Xiaopeng | 2,240,000 | 0.50 | 0 | Domestic Natural Person | | Shi Qian | 2,040,000 | 0.46 | 0 | Domestic Natural Person | | Caitong Fund - ICBC - Shaanxi International Trust - Shanguotou · Steady No. 5 Targeted Investment Collective Fund Trust Plan | 1,933,892 | 0.43 | 0 | Other | | Industrial and Commercial Bank of China Ltd. - CSI Shanghai State-Owned Enterprise ETF | 1,507,723 | 0.34 | 0 | Other | | Shanghai Electric Science Chengding Smart Industry Investment Partnership (Limited Partnership) | 1,480,019 | 0.33 | 0 | Other | | Shanghai Shibei Hi-Tech Co., Ltd. | 1,381,351 | 0.31 | 0 | Other | | Yang Qiming | 1,230,000 | 0.28 | 0 | Domestic Natural Person | - Shanghai Xian Dai Architectural Design (Group) Co., Ltd. and Shanghai Guosheng (Group) Co., Ltd. are both state-owned enterprises supervised by the Shanghai State-owned Assets Supervision and Administration Commission, indicating an associated relationship[10](index=10&type=chunk) [Significant Events](index=5&type=section&id=Item%20III.%20Significant%20Events) This section details significant changes in key financial statement items and indicators, providing analysis for variations in income statement and cash flow items, and confirms no outstanding commitments or predicted losses [Significant Changes and Reasons for Key Financial Statement Items and Indicators](index=5&type=section&id=3.1%20Significant%20Changes%20and%20Reasons%20for%20Key%20Financial%20Statement%20Items%20and%20Indicators) During the reporting period, several key items in the company's income statement and cash flow statement underwent significant changes, including substantial increases in selling and R&D expenses, a significant rise in investment income, increased net cash outflow from investing activities, and a substantial increase in net cash inflow from financing activities [Analysis of Income Statement Item Changes](index=5&type=section&id=Income%20Statement%20Items) Selling expenses increased by **34.26%** due to market expansion, R&D expenses rose by **58.71%** from increased innovation investment, credit impairment losses grew by **50.88%** due to older receivables, and investment income surged by **151.66%** from cash dividends and equity method accounting Major Income Statement Item Changes and Reasons (Q1 2019 vs Q1 2018) | Account | Current Period Amount (RMB) | Prior Year Same Period Amount (RMB) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 17,420,938.30 | 12,975,755.85 | 34.26 | Mainly due to increased expenses from establishing and expanding regional markets | | R&D Expenses | 37,542,946.26 | 23,655,179.14 | 58.71 | This period saw vigorous implementation of technological innovation, enhancing technological innovation competitiveness, and increasing R&D investment | | Credit Impairment Losses | 12,173,779.88 | 8,068,549.58 | 50.88 | Mainly due to an increase in the aging of receivables for some projects compared to the same period last year | | Investment Income | 14,725,429.58 | 5,851,285.69 | 151.66 | Mainly due to new cash dividends from associate Shanghai Shentong Jinpu Phase I New Industry Equity Investment Fund Partnership and increased investment income from equity method accounting for associates | [Analysis of Cash Flow Statement Item Changes](index=6&type=section&id=Cash%20Flow%20Statement%20Items) Net cash flow from operating activities remained negative and slightly decreased year-on-year; net cash outflow from investing activities significantly increased by **126.26%** due to higher external investments, while net cash inflow from financing activities surged by **113.16%** primarily from increased cash received from restricted share issuance Major Cash Flow Statement Item Changes and Reasons (Q1 2019 vs Q1 2018) | Account | Current Period Amount (RMB) | Prior Year Same Period Amount (RMB) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -468,875,660.30 | -446,888,951.73 | -4.92 | | | Net Cash Flow from Investing Activities | -167,362,306.72 | -73,967,866.75 | -126.26 | The main reason for the increase in net cash outflow from investing activities compared to the same period last year is the increase in cash paid for external investments in the current period | | Net Cash Flow from Financing Activities | 161,624,900.99 | 75,822,935.32 | 113.16 | The main reason for the increase in net cash inflow from financing activities compared to the same period last year is the increase in cash received from investments due to the non-public issuance of restricted shares in the current period | [Other Significant Matters](index=6&type=section&id=3.2%20Analysis%20of%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Matters) During the reporting period, the company had no overdue unfulfilled commitments and did not anticipate cumulative net profit loss or significant changes from the beginning of the year to the end of the next reporting period - Analysis of progress, impact, and solutions for significant matters: Not applicable[13](index=13&type=chunk) - Overdue unfulfilled commitments during the reporting period: Not applicable[13](index=13&type=chunk) - Warning and explanation of reasons for cumulative net profit from the beginning of the year to the end of the next reporting period possibly being a loss or undergoing significant changes compared to the same period last year: Not applicable[13](index=13&type=chunk) [Appendix](index=7&type=section&id=Item%20IV.%20Appendix) This section provides the full set of unaudited consolidated and parent company financial statements for Q1 2019, along with details on adjustments made due to the initial adoption of new financial instrument standards [Financial Statements](index=7&type=section&id=4.1%20Financial%20Statements) This section presents the company's unaudited consolidated and parent company financial statements for Q1 2019, including the balance sheet, income statement, and cash flow statement, detailing financial position, operating results, and cash flows for the period [Consolidated Balance Sheet](index=7&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2019, consolidated total assets were **RMB 8.357 billion**, a slight decrease from year-end; total current assets were **RMB 5.836 billion**, non-current assets **RMB 2.521 billion**; total liabilities **RMB 5.389 billion**, and total owners' equity **RMB 2.968 billion** Consolidated Balance Sheet Key Data (As of March 31, 2019) | Item | March 31, 2019 (RMB) | December 31, 2018 (RMB) | | :--- | :--- | :--- | | Total Assets | 8,356,981,839.72 | 8,484,849,666.81 | | Total Current Assets | 5,836,125,188.06 | 6,086,890,667.35 | | Total Non-Current Assets | 2,520,856,651.66 | 2,397,958,999.46 | | Total Liabilities | 5,389,450,868.17 | 5,611,246,919.56 | | Total Owners' Equity | 2,967,530,971.55 | 2,873,602,747.25 | | Total Owners' Equity Attributable to Parent Company | 2,782,955,188.64 | 2,697,690,239.18 | [Parent Company Balance Sheet](index=9&type=section&id=Parent%20Company%20Balance%20Sheet) As of March 31, 2019, parent company total assets were **RMB 4.450 billion**, a decrease from year-end; total current assets were **RMB 1.562 billion**, non-current assets **RMB 2.888 billion**; total liabilities **RMB 1.623 billion**, and total owners' equity **RMB 2.827 billion** Parent Company Balance Sheet Key Data (As of March 31, 2019) | Item | March 31, 2019 (RMB) | December 31, 2018 (RMB) | | :--- | :--- | :--- | | Total Assets | 4,450,426,354.79 | 4,758,416,076.98 | | Total Current Assets | 1,562,302,147.85 | 2,003,940,714.83 | | Total Non-Current Assets | 2,888,124,206.94 | 2,754,475,362.15 | | Total Liabilities | 1,623,207,344.42 | 1,932,985,996.83 | | Total Owners' Equity | 2,827,219,010.37 | 2,825,430,080.15 | [Consolidated Income Statement](index=12&type=section&id=Consolidated%20Income%20Statement) In Q1 2019, consolidated total operating revenue was **RMB 1.558 billion**, up **20.57%**; operating profit was **RMB 80.18 million**, net profit **RMB 90.48 million**, and net profit attributable to parent company shareholders **RMB 81.82 million**, up **15.01%**; basic earnings per share was **RMB 0.1893** Consolidated Income Statement Key Data (Q1 2019 vs Q1 2018) | Item | Q1 2019 (RMB) | Q1 2018 (RMB) | Year-on-Year Growth (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,557,729,828.28 | 1,291,947,639.57 | 20.57 | | Operating Profit | 80,176,945.03 | 70,454,758.62 | 13.80 | | Total Profit | 106,803,267.92 | 97,777,560.70 | 9.23 | | Net Profit | 90,478,904.66 | 79,968,195.86 | 13.14 | | Net Profit Attributable to Parent Company Shareholders | 81,815,629.80 | 71,138,198.99 | 15.01 | | Basic Earnings Per Share (RMB/share) | 0.1893 | 0.1646 | 15.01 | [Parent Company Income Statement](index=14&type=section&id=Parent%20Company%20Income%20Statement) In Q1 2019, parent company operating revenue was **RMB 12.17 million**, up **14.27%**; operating profit and net profit were both **RMB 1.79 million**, reversing the loss from the same period last year Parent Company Income Statement Key Data (Q1 2019 vs Q1 2018) | Item | Q1 2019 (RMB) | Q1 2018 (RMB) | Year-on-Year Growth (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 12,166,407.19 | 10,647,361.31 | 14.27 | | Operating Profit | 1,788,257.22 | -559,525.16 | Turned loss into profit | | Total Profit | 1,788,257.22 | -558,025.16 | Turned loss into profit | | Net Profit | 1,788,257.22 | -558,025.16 | Turned loss into profit | [Consolidated Cash Flow Statement](index=15&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1 2019, consolidated net cash flow from operating activities was **-RMB 469 million**, a slight year-on-year decrease; net cash outflow from investing activities was **-RMB 167 million**, a significant increase; net cash inflow from financing activities was **RMB 162 million**, a substantial increase Consolidated Cash Flow Statement Key Data (Q1 2019 vs Q1 2018) | Item | Q1 2019 (RMB) | Q1 2018 (RMB) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -468,875,660.30 | -446,888,951.73 | -4.92 | | Net Cash Flow from Investing Activities | -167,362,306.72 | -73,967,866.75 | -126.26 | | Net Cash Flow from Financing Activities | 161,624,900.99 | 75,822,935.32 | 113.16 | | Net Increase in Cash and Cash Equivalents | -474,316,150.08 | -446,257,646.46 | -6.29 | | Cash and Cash Equivalents at Period End | 1,159,187,531.75 | 1,137,334,140.13 | 1.92 | [Parent Company Cash Flow Statement](index=17&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In Q1 2019, parent company net cash flow from operating activities was **RMB 3.32 million**, a significant year-on-year decrease; net cash outflow from investing activities was **-RMB 0.54 million**, a substantial reduction; net cash outflow from financing activities was **-RMB 410 million**, an increase year-on-year Parent Company Cash Flow Statement Key Data (Q1 2019 vs Q1 2018) | Item | Q1 2019 (RMB) | Q1 2018 (RMB) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 3,321,947.31 | 13,778,904.53 | -75.90 | | Net Cash Flow from Investing Activities | -539,978.00 | 232,023,166.67 | Shifted from net inflow to net outflow, a significant decrease | | Net Cash Flow from Financing Activities | -410,153,256.73 | -302,950,731.53 | -35.39 | | Net Increase in Cash and Cash Equivalents | -407,371,287.42 | -57,148,660.33 | -612.84 | | Cash and Cash Equivalents at Period End | 865,104,366.05 | 810,999,729.91 | 6.67 | [Adjustments for Initial Adoption of New Financial Instruments Standards](index=18&type=section&id=4.2%20Adjustments%20to%20Financial%20Statements%20at%20Beginning%20of%20First%20Year%20of%20Application%20of%20New%20Financial%20Instruments%2C%20Revenue%2C%20and%20Lease%20Standards) The company adopted new financial instrument standards, retrospectively adjusting relevant financial statement items as of January 1, 2019, primarily reclassifying 'available-for-sale financial assets' to 'investments in other equity instruments' and 'other non-current financial assets', with corresponding adjustments to 'other comprehensive income' and 'undistributed profits' - In accordance with the new financial instrument standards, the company reclassified financial assets, designating non-trading equity instruments held as 'measured at fair value with changes recognized in other comprehensive income'[39](index=39&type=chunk) [Consolidated Balance Sheet Adjustments](index=18&type=section&id=Consolidated%20Balance%20Sheet%20Adjustments) Upon initial adoption of new financial instrument standards, the consolidated balance sheet adjusted available-for-sale financial assets from **RMB 470,744,993.41** to **RMB 0**, while adding **RMB 8,207,700.00** in other equity instrument investments and **RMB 462,537,293.41** in other non-current financial assets; other comprehensive income decreased by **RMB 6,058,199.40**, and undistributed profits increased by the same amount Consolidated Balance Sheet Adjustments for New Financial Instruments Standards (December 31, 2018 vs January 1, 2019) | Item | December 31, 2018 (RMB) | January 1, 2019 (RMB) | Adjustment Amount (RMB) | | :--- | :--- | :--- | :--- | | Available-for-sale financial assets | 470,744,993.41 | 0 | -470,744,993.41 | | Investments in other equity instruments | 0 | 8,207,700.00 | 8,207,700.00 | | Other non-current financial assets | 0 | 462,537,293.41 | 462,537,293.41 | | Other comprehensive income | 41,892,823.93 | 35,834,624.53 | -6,058,199.40 | | Undistributed profits | 1,077,182,305.48 | 1,083,240,504.88 | 6,058,199.40 | [Parent Company Balance Sheet Adjustments](index=21&type=section&id=Parent%20Company%20Balance%20Sheet%20Adjustments) The parent company balance sheet did not undergo significant adjustments upon initial adoption of new financial instrument standards, with all account balances remaining consistent between December 31, 2018, and January 1, 2019 - Upon initial adoption of new financial instrument standards, the parent company balance sheet showed consistent data for all accounts between December 31, 2018, and January 1, 2019, with no adjustments made[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk)

2018 年第三季度报告 一、 重要提示 | 未出席董事姓名 | 未出席董事职务 | 未出席原因的说明 | 被委托人姓名 | | --- | --- | --- | --- | | 李安 | 董事 | 工作原因 | 王玲 | 二、 公司基本情况 2.1 主要财务数据 公司代码：600629 公司简称：华建集团 华东建筑集团股份有限公司 2018 年第三季度报告 1 / 21 | 目录 | | --- | | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 6 | | 四、 | 附录 | 9 | 2018 年第三季度报告 3 / 21 单位：元 币种：人民币 本报告期末 上年度末 本报告期末比上年度末增 减(%) 总资产 7,971,990,829.72 7,403,521,911.15 7.68 归属于上市公司 股东的净资产 2,643,869,596.30 2,482,114,202.98 6.52 年初至报告期末 （1-9 月） 上年初至上年报告期末 （1-9 月） 比上年同期增减(%) 经营活动产生的 现金流量净 ...

2018 年半年度报告 公司代码：600629 公司简称：华建集团 四、 公司负责人秦云、主管会计工作负责人吴峰宇及会计机构负责人（会计主管人员）何静声明： 保证半年度报告中财务报告的真实、准确、完整。 五、 经董事会审议的报告期利润分配预案或公积金转增股本预案 无。 华东建筑集团股份有限公司 2018 年半年度报告 1 / 143 2018 年半年度报告 重要提示 一、 本公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实、准确、完 整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、 未出席董事情况 | 未出席董事职务 | 未出席董事姓名 | 未出席董事的原因说明 | 被委托人姓名 | | --- | --- | --- | --- | | 董事 | 李安 | 工作原因 | 王玲 | 三、 本半年度报告未经审计。 六、 前瞻性陈述的风险声明 √适用 □不适用 本报告中所涉及的未来计划、发展战略等前瞻性描述不构成公司对投资者的实质承诺，敬请 投资者注意投资风险。 七、 是否存在被控股股东及其关联方非经营性占用资金情况 否 八、 是否存在违反规定决策程序对外提供担保的 ...

Financial Performance - Operating revenue for the current period reached CNY 1,291,947,639.57, representing a growth of 40.81% year-on-year[6] - Net profit attributable to shareholders of the listed company was CNY 47,924,634.81, an increase of 68.98% compared to the same period last year[6] - Basic earnings per share for the current period were CNY 0.1646, up 22.84% from CNY 0.1340 in the previous year[6] - Total profit for the period was ¥97,777,560.70, reflecting a 42.93% increase from ¥68,408,235.18 year-on-year, attributed to higher gross profit from core business and increased investment income from associates[11] - Net profit for Q1 2018 was ¥79,968,195.86, representing a 47.1% increase from ¥54,439,984.72 in Q1 2017[22] - The company reported a total net profit of -558,025.16 RMB for Q1 2018, compared to -4,191,901.92 RMB in the same period last year, showing a significant improvement in loss reduction[25] - The company reported a comprehensive income total of ¥66,429,929.05 for Q1 2018, up from ¥54,038,672.68 in Q1 2017[23] Cash Flow - The net cash flow from operating activities was CNY -446,888,951.73, a slight decrease of 0.40% compared to the previous year[6] - Net cash flow from operating activities was negative at ¥446,888,951.73, slightly worse than the previous year's negative cash flow of ¥445,105,531.21, indicating ongoing cash flow challenges[11] - The cash inflow from operating activities totaled 1,442,669,382.48 RMB, up from 1,266,946,013.75 RMB in the previous period, indicating a growth of about 13.8%[28] - The cash inflow from financing activities was 75,822,935.32 RMB, a decrease from 328,249,941.18 RMB in the previous period, indicating reduced financing activity[29] - The company incurred total cash outflows from investing activities of 93,610,000.00 RMB, compared to 65,100,554.59 RMB in the previous period, marking an increase of approximately 43.8%[32] Assets and Liabilities - Total assets at the end of the reporting period were CNY 7,234,626,925.51, a decrease of 2.28% compared to the end of the previous year[6] - The company's total assets as of March 31, 2018, amounted to ¥7,234,626,925.51, down from ¥7,403,521,911.15 at the beginning of the year[14] - Current liabilities totaled ¥4,279,528,189.86, a decrease from ¥4,575,659,314.56 at the start of the year, indicating improved management of short-term obligations[15] - Total liabilities for Q1 2018 were ¥1,097,755,896.08, down from ¥1,397,389,662.24 in the same period last year[19] - The company's cash and cash equivalents decreased to ¥1,140,079,074.64 from ¥1,589,812,970.03, reflecting a significant reduction in liquidity[13] Shareholder Information - The total number of shareholders at the end of the reporting period was 18,548[8] - The largest shareholder, Shanghai Modern Architectural Design Group Co., Ltd., held 56.1% of the shares[8] - The total equity attributable to shareholders increased to ¥2,539,714,135.16 from ¥2,482,114,202.98, showing a positive trend in retained earnings[15] Investment and Income - The company received government subsidies amounting to CNY 28,560,799.41 during the reporting period[8] - Non-operating income for the period totaled CNY 23,213,564.18 after accounting for various adjustments[8] - Investment income rose significantly to ¥5,851,285.69 from a loss of ¥395,032.78, marking a 1,581.22% increase, indicating successful investments in associates[11] - Investment activities generated a net cash flow of negative ¥73,967,866.75, a 55.74% improvement from negative ¥167,125,943.07 in the prior year, due to reduced external investments[11] Inventory and Costs - The company reported a significant increase in inventory, which rose to ¥2,172,611,126.83 from ¥1,968,182,013.46, suggesting potential challenges in inventory turnover[13] - Total operating costs for Q1 2018 were ¥1,228,254,975.95, up 40.9% from ¥872,145,720.81 in Q1 2017[22] - The company paid 876,004,011.65 RMB to employees, which increased from 771,062,585.32 RMB in the previous period, reflecting a rise of approximately 13.6% in employee-related expenses[28]

2017 年第三季度报告 公司代码：600629 公司简称：华建集团 华东建筑集团股份有限公司 2017 年第三季度报告 1 / 21 | 目录 | | --- | | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 7 | | 四、 | 附录 | 9 | 2017 年第三季度报告 3 / 21 单位：元 币种：人民币 本报告期末 上年度末 本报告期末比上年度末增 减(%) 总资产 7,084,523,277.42 4,838,575,387.50 46.42 归属于上市公司 股东的净资产 2,369,954,573.12 1,004,627,679.90 135.90 年初至报告期末 （1-9 月） 上年初至上年报告期末 （1-9 月） 比上年同期增减(%) 经营活动产生的 现金流量净额 -13,094,842.89 -305,424,433.51 95.71 年初至报告期末 （1-9 月） 上年初至上年报告期末 （1-9 月） 比上年同期增减 （%） 营业收入 3,480,429,806.36 2,816,158, ...

```markdown [Definitions](index=4&type=section&id=Section%20I%20Definitions) This section provides definitions of key terms used in the report [Company Profile and Key Financial Indicators](index=4&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section outlines the company's basic information and presents its key financial performance metrics [Company Information, Contacts, and General Overview](index=4&type=section&id=II.%20Company%20Information%2C%20Contacts%2C%20and%20General%20Overview) This chapter provides Huajian Group's basic corporate information, contact details, and addresses, noting its stock code 600629 and former name 'Lengguang Industrial' - The company's Chinese name is Huadong Engineering Group Corporation Limited, with stock abbreviation 'Huajian Group', and its legal representative is Qin Yun[11](index=11&type=chunk) - The company's A-shares are listed on the Shanghai Stock Exchange under stock code **600629**, previously abbreviated as 'Lengguang Industrial'[16](index=16&type=chunk) [Key Accounting Data and Financial Indicators](index=5&type=section&id=VII.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In H1 2017, operating revenue grew 21.64% to **2.127 billion Yuan**, while net profit attributable to shareholders declined 21.95% to **73.65 million Yuan**, with total assets and net assets significantly increasing due to acquisitions and financing Key Accounting Data for H1 2017 | Key Accounting Data | Current Period (Jan-Jun) (Million Yuan) | Prior Period (Million Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 2,126.70 | 1,748.40 | 21.64% | | **Net Profit Attributable to Shareholders** | 73.65 | 94.36 | -21.95% | | **Net Cash Flow from Operating Activities** | -390.07 | -382.68 | -1.93% | | | **End of Current Period (Million Yuan)** | **End of Prior Year (Million Yuan)** | **Period-end vs. Prior Year-end Change (%)** | | **Net Assets Attributable to Shareholders** | 2,307.48 | 1,004.63 | 129.68% | | **Total Assets** | 6,453.92 | 4,838.58 | 33.38% | Key Financial Indicators for H1 2017 | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Basic Earnings Per Share (Yuan/share)** | 0.1862 | 0.2628 | -29.15% | | **Weighted Average Return on Net Assets (%)** | 4.45% | 11.96% | Decrease by 7.51 percentage points | | **Weighted Average Return on Net Assets (Excluding Non-recurring Gains/Losses) (%)** | 3.09% | 7.37% | Decrease by 4.28 percentage points | Non-recurring Gains and Losses for H1 2017 | Non-recurring Gains and Losses | Amount (Yuan) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -86,975.44 | | Government Grants Recognized in Current Profit/Loss | 26,817,228.77 | | Other Non-operating Income and Expenses | 784,054.23 | | Impact on Minority Interests | -216,271.75 | | Income Tax Impact | -4,736,303.61 | | **Total** | **22,561,732.20** | [Company Business Overview](index=7&type=section&id=Section%20III%20Company%20Business%20Overview) This section provides an overview of the company's core businesses, operating models, and industry landscape [Principal Businesses, Operating Model, and Industry Overview](index=7&type=section&id=I.%20Description%20of%20Principal%20Businesses%2C%20Operating%20Model%2C%20and%20Industry%20Situation%20During%20the%20Reporting%20Period) The company's core business is architectural design, providing integrated services through bidding and direct client engagement, operating in an increasingly competitive market influenced by national policies, M&A, and digital transformation - The company's principal business centers on architectural design, providing integrated services covering the entire project lifecycle, including engineering technical management, design, contracting, and surveying[23](index=23&type=chunk) - Business acquisition models primarily include bidding (public/invited) and direct client engagement[24](index=24&type=chunk) - Industry development exhibits four key characteristics: clear national construction trends (e.g., Xiong'an New Area), policy emphasis on industry development, diversified enterprise growth driven by 'technology + management + capital' through innovation, and efficiency enhancement via 'Internet+' integration[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) [Discussion and Analysis of Operations](index=8&type=section&id=Section%20IV%20Discussion%20and%20Analysis%20of%20Operations) This section provides a detailed discussion and analysis of the company's operational performance and strategic initiatives during the reporting period [Discussion and Analysis of Operations](index=8&type=section&id=I.%20Discussion%20and%20Analysis%20of%20Operations) In H1 2017, new contract value grew 12.1% to **3.998 billion Yuan**, driven by strategic expansion in regional and overseas markets, alongside significant capital operations including asset injection and the establishment of a digital innovation technology company New Contract Situation in H1 2017 | Contract Category | Amount (Billion Yuan) | YoY Growth | | :--- | :--- | :--- | | **Total New Contract Value** | **3.998** | **12.1%** | | Design Consulting Contract Value | 2.791 | - | | Engineering Contracting Contract Value | 1.207 | - | - The company actively expanded its regional markets, establishing a Southwest Center in Chongqing after the Northwest and Central China centers, and seeking cooperation opportunities in regions like Beijing-Tianjin-Hebei, Jiangsu, and Shandong[31](index=31&type=chunk) - Overseas market expansion continued, with foreign economic project contract value reaching **368 million Yuan** in H1, a **43.7%** year-on-year increase[31](index=31&type=chunk) - The company established 'Huajian Digital Innovation (Shanghai) Technology Co., Ltd.' as its information industry parent company, dedicated to building three major business engines: 'Internet+Design', 'Digitalization+Construction', and 'Virtualization+Engineering'[33](index=33&type=chunk) [Analysis of Principal Businesses](index=9&type=section&id=(I)%20Analysis%20of%20Principal%20Businesses) During the reporting period, operating revenue grew 21.64% driven by engineering contracting, while operating costs increased faster; financial expenses significantly decreased due to higher interest income, and net cash flow from financing activities surged due to private share placement and new financing Analysis of Major Financial Statement Item Changes | Item | Current Period Amount (Million Yuan) | Prior Period Amount (Million Yuan) | Change (%) | Explanation for Change | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 2,126.70 | 1,748.40 | 21.64 | Increase in engineering contracting business revenue | | **Operating Cost** | 1,594.01 | 1,263.90 | 26.12 | Impact of 'VAT reform' and growth in low-margin project revenue | | **Financial Expenses** | -2.94 | -0.36 | -723.70 | Increase in interest income | | **Asset Impairment Losses** | 30.63 | 13.18 | 132.43 | Increase in bad debt provisions based on aging | | **Net Cash Flow from Investing Activities** | -271.81 | -117.69 | -130.97 | New equity investments in Wuhan Zhenghua and Jiangxi Investment Group | | **Net Cash Flow from Financing Activities** | 505.69 | 7.58 | 6,575.00 | Funds raised from private share placement and new financing | [Analysis of Assets and Liabilities](index=10&type=section&id=(III)%20Analysis%20of%20Assets%20and%20Liabilities) At period-end, total assets reached **6.454 billion Yuan**, up 33.38%, driven by significant increases in fixed assets and long-term equity investments; liabilities rose to support investments, and capital reserves surged due to private share placement, with **294 million Yuan** in restricted assets Changes in Major Asset and Liability Items | Item Name | Amount at End of Current Period (Million Yuan) | Change from End of Prior Period (%) | Explanation | | :--- | :--- | :--- | :--- | | **Investment Properties** | 72.29 | 100.00 | Acquisition of Modern Architectural Design Building through private placement, with leased portions included | | **Fixed Assets** | 1,235.38 | 856.89 | Due to acquisition of Modern Architectural Design Building through private placement and consolidation of Wuhan Zhenghua | | **Long-term Equity Investments** | 155.30 | 1,265.91 | New investment in 34% equity of Jiangxi Investment Group | | **Short-term Borrowings** | 400.00 | 100.00 | New financing for investment support | | **Long-term Borrowings** | 167.84 | 117.07 | New project-specific borrowings and consolidation of Wuhan Zhenghua | | **Capital Reserves** | 1,431.33 | 658.19 | Increase from private share placement for asset acquisition and supporting funds | - As of the end of the reporting period, the company's major restricted assets totaled **294 million Yuan**, including fixed assets, inventories, and accounts receivable pledged for borrowings, as well as performance bond deposits[42](index=42&type=chunk) [Analysis of Investment Status](index=11&type=section&id=(IV)%20Analysis%20of%20Investment%20Status) During the reporting period, the company actively pursued strategic development through capital operations, including significant equity investments in Wuhan Zhenghua and Jiangxi Consulting, establishing a new digital technology subsidiary, and completing a major asset restructuring involving the acquisition of Modern Architectural Design Building via private share placement and related fundraising - Acquired **51%** equity in Wuhan Zhenghua Architectural Design Co., Ltd. for **152 million Yuan**, with industrial and commercial changes completed in February 2017[46](index=46&type=chunk) - Invested **145 million Yuan** to subscribe for **34%** equity in Jiangxi Provincial Consulting Investment Group Co., Ltd., with property rights transfer completed in June 2017[47](index=47&type=chunk) - Established a new wholly-owned subsidiary, Huajian Digital Innovation (Shanghai) Technology Co., Ltd., with a registered capital of **10 million Yuan**, to promote digital transformation[48](index=48&type=chunk) - Acquired Modern Architectural Design Building assets through share issuance and raised up to **280 million Yuan** in supporting funds for its information technology upgrade project, with relevant share issuance registration completed in March 2017[49](index=49&type=chunk)[50](index=50&type=chunk) [Analysis of Major Holding and Participating Companies](index=13&type=section&id=(VI)%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) During the reporting period, the company consolidated five major subsidiaries, with Huadong Architectural Design and Research Institute Co., Ltd. achieving **2.119 billion Yuan** in revenue and **98.88 million Yuan** in net profit, while a new digital subsidiary was established and equity transfers optimized the investment structure Major Subsidiaries' Financial Data for H1 2017 (Unit: Million Yuan) | Company Name | Total Assets | Net Assets | Operating Revenue | Net Profit | | :--- | :--- | :--- | :--- | :--- | | **Huadong Architectural Design and Research Institute Co., Ltd.** | 5,379.59 | 1,125.64 | 2,118.73 | 98.88 | | **Shanghai Yunzhu Investment Co., Ltd.** | 110.81 | 90.61 | - | -2.90 | | **Huadong Engineering Group (International) Co., Ltd.** | 18.49 | -1.70 | 1.33 | 0.25 | | **Shanghai Modern Huagai Architectural Design Co., Ltd.** | 44.64 | 9.97 | 4.44 | 0.27 | | **Huajian Digital Innovation (Shanghai) Technology Co., Ltd.** | 10.00 | -0.00 | - | -0.00 | [Potential Risks](index=14&type=section&id=(II)%20Potential%20Risks) The company faces key risks including policy changes, intensified market competition, increased project management demands from business expansion, and human resource challenges in attracting and retaining talent - The company's business is highly dependent on national macroeconomic, industrial, and regional development policies, making policy changes a primary source of risk[54](index=54&type=chunk) - Market competition is intensifying, with resources concentrating towards leading enterprises, while regional protectionism in some areas poses risks to the company's market expansion[55](index=55&type=chunk) - With the expansion of EPC general contracting and overseas businesses, the company faces higher demands in full project lifecycle management, resource integration, contract management, and risk control[56](index=56&type=chunk) - As a knowledge-intensive enterprise, the stability and cultivation of core professional technical talent and excellent management personnel are crucial for the company's sustainable development, facing talent retention risks[57](index=57&type=chunk) [Significant Matters](index=15&type=section&id=Section%20V%20Significant%20Matters) This section details significant events and corporate actions undertaken by the company during the reporting period [Profit Distribution Plan](index=15&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20to%20Share%20Capital%20Increase%20Plan) The company has no proposed profit distribution or capital reserve to share capital increase plan for H1 2017 - The company proposes no profit distribution or capital reserve to share capital increase for H1 2017[60](index=60&type=chunk) [Fulfillment of Commitments](index=16&type=section&id=III.%20Fulfillment%20of%20Commitments) During the reporting period, controlling shareholder Shanghai Modern Architectural Design (Group) Co., Ltd. strictly fulfilled all commitments related to the major asset restructuring, including share lock-up, resolving horizontal competition, and regulating related-party transactions - The share lock-up commitment made by controlling shareholder Shanghai Modern Architectural Design (Group) Co., Ltd. regarding the major asset restructuring was strictly fulfilled, with a lock-up period of **36 months**[61](index=61&type=chunk) - The commitment to avoid horizontal competition is being fulfilled, with a pledge to inject Shanghai Land Highway Engineering Consulting and Design Co., Ltd. into Huajian Group when appropriate[62](index=62&type=chunk) - Commitments regarding the regulation of related-party transactions and ensuring the value of injected assets are both within their validity period and have been strictly fulfilled[62](index=62&type=chunk)[64](index=64&type=chunk) [Equity Incentive and Employee Incentive](index=19&type=section&id=IX.%20Status%20and%20Impact%20of%20Company%27s%20Equity%20Incentive%20Plan%2C%20Employee%20Stock%20Ownership%20Plan%2C%20or%20Other%20Employee%20Incentive%20Measures) In May 2017, the company approved the 'Incentive Fund Plan (2017-2020)', aiming to incentivize market-selected professional managers, core management personnel, and employees with significant contributions to enhance management team motivation and accountability - The company's Board of Directors approved the 'Incentive Fund Plan (2017-2020)', with incentive recipients including professional managers, directors, academicians, and other core employees[65](index=65&type=chunk) [Significant Related-Party Transactions](index=20&type=section&id=X.%20Significant%20Related-Party%20Transactions) The most significant related-party transaction was the company's acquisition of Modern Architectural Design Building assets from its controlling shareholder via share issuance, with new share registration completed; routine related-party transactions for 2017 are estimated at **120 million Yuan** - The company completed a significant related-party transaction by issuing shares to its controlling shareholder to acquire Modern Architectural Design Building, with asset transfer and share registration finalized[67](index=67&type=chunk)[68](index=68&type=chunk) - The company estimates total routine related-party transactions with affiliates for 2017 to be approximately **120 million Yuan**[66](index=66&type=chunk) [Significant Contracts and Their Performance](index=22&type=section&id=XI.%20Significant%20Contracts%20and%20Their%20Performance) This chapter discloses the company's leasing and guarantee situations, including office building leases from its controlling shareholder and total guarantees to subsidiaries amounting to **151 million Yuan**, representing **6.54%** of net assets Company Guarantees to Subsidiaries | Guarantee Item | Amount (Million Yuan) | | :--- | :--- | | **Total Guarantees to Subsidiaries Incurred During Reporting Period** | 91.38 | | **Total Guarantees to Subsidiaries Outstanding at Period-end (B)** | 151.00 | | **Ratio of Total Guarantees to Company's Net Assets (%)** | 6.54 | [Changes in Ordinary Shares and Shareholder Information](index=27&type=section&id=Section%20VI%20Changes%20in%20Ordinary%20Shares%20and%20Shareholder%20Information) This section details changes in the company's ordinary share capital and provides an overview of its shareholder structure [Changes in Share Capital](index=27&type=section&id=I.%20Changes%20in%20Share%20Capital) During the reporting period, total share capital increased by **73,147,942 shares** to **432 million**, primarily due to share issuance for asset acquisition and supporting funds, with restricted shares rising to **19.48%** Share Capital Change Table (Unit: Shares) | Share Class | Before This Change | Increase/Decrease in This Change | After This Change | | :--- | :--- | :--- | :--- | | **I. Restricted Shares** | 11,060,377 | +73,147,942 | 84,208,319 | | **II. Unrestricted Tradable Shares** | 347,999,813 | 0 | 347,999,813 | | **III. Total Shares** | **359,060,190** | **+73,147,942** | **432,208,132** | - The increase in total shares is due to the company's issuance of **59,334,425 shares** to Modern Design Group for asset acquisition and **13,813,517 shares** to other investors for supporting funds[87](index=87&type=chunk) [Shareholder Information](index=31&type=section&id=II.%20Shareholder%20Information) As of period-end, the company had **27,295** ordinary shareholders, with the top two, Shanghai Modern Architectural Design (Group) Co., Ltd. and Shanghai Guosheng (Group) Co., Ltd., holding **56.1%** and **15.25%** respectively, both state-owned enterprises Shareholding of Top Two Shareholders as of Period-end | Shareholder Name | Number of Shares Held at Period-end (Shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | **Shanghai Modern Architectural Design (Group) Co., Ltd.** | 242,455,352 | 56.1 | State-owned Legal Person | | **Shanghai Guosheng (Group) Co., Ltd.** | 65,893,468 | 15.25 | State-owned Legal Person | - As of the end of the reporting period, the company had a total of **27,295** shareholders[92](index=92&type=chunk) [Preferred Shares Information](index=35&type=section&id=Section%20VII%20Preferred%20Shares%20Information) This section confirms the absence of preferred shares related information for the company [Preferred Shares Information](index=35&type=section&id=Section%20VII%20Preferred%20Shares%20Information) The company has no preferred shares related information - During the reporting period, the company had no preferred shares related information[100](index=100&type=chunk) [Information on Directors, Supervisors, and Senior Management](index=36&type=section&id=Section%20VIII%20Information%20on%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) This section provides details on the company's directors, supervisors, and senior management personnel [Changes in Directors, Supervisors, and Senior Management](index=36&type=section&id=II.%20Changes%20in%20Company%27s%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, changes occurred in the company's senior management, with former CFO Zhang Hua resigning and Wu Fengyu appointed as Deputy CFO Changes in Senior Management | Name | Position Held | Change Type | | :--- | :--- | :--- | | Zhang Hua | CFO | Resigned | | Wu Fengyu | Deputy CFO | Appointed | [Corporate Bonds Information](index=37&type=section&id=Section%20IX%20Corporate%20Bonds%20Information) This section confirms the absence of corporate bonds related information for the company [Corporate Bonds Information](index=37&type=section&id=Section%20IX%20Corporate%20Bonds%20Information) The company has no corporate bonds related information - During the reporting period, the company had no corporate bonds related information[103](index=103&type=chunk) [Financial Report](index=38&type=section&id=Section%20X%20Financial%20Report) This section presents the company's comprehensive financial statements and related notes for the reporting period [Financial Statements](index=38&type=section&id=II.%20Financial%20Statements) As of June 30, 2017, total assets were **6.454 billion Yuan**, total liabilities **3.999 billion Yuan**, and equity attributable to parent **2.307 billion Yuan**; H1 2017 saw **2.127 billion Yuan** in operating revenue, **114 million Yuan** in total profit, and **73.65 million Yuan** in net profit attributable to parent, with significant cash flow movements across activities Key Items from Consolidated Balance Sheet (June 30, 2017) | Item | Amount (Billion Yuan) | | :--- | :--- | | **Total Assets** | 6.454 | | **Total Liabilities** | 3.999 | | **Total Equity Attributable to Parent Company Owners** | 2.307 | Key Items from Consolidated Income Statement (Jan-Jun 2017) | Item | Amount (Million Yuan) | | :--- | :--- | | **Total Operating Revenue** | 2,126.70 | | **Total Profit** | 113.57 | | **Net Profit Attributable to Parent Company Owners** | 73.65 | Key Items from Consolidated Cash Flow Statement (Jan-Jun 2017) | Item | Amount (Million Yuan) | | :--- | :--- | | **Net Cash Flow from Operating Activities** | -390.07 | | **Net Cash Flow from Investing Activities** | -271.81 | | **Net Cash Flow from Financing Activities** | 505.69 | | **Net Increase in Cash and Cash Equivalents** | -155.91 | [Company Overview and Consolidation Scope](index=53&type=section&id=III.%20Company%20Overview) This section details the company's historical evolution, including its 2015 major asset restructuring that transformed it into a core architectural design enterprise; during the reporting period, total share capital increased to **432 million shares** through private placement, and the consolidation scope changed due to new acquisitions, establishments, and one deregistration - The company, formerly 'Lengguang Industrial', underwent a major asset restructuring with Modern Group in 2015, injecting **100%** equity of Huadong Design Institute, thereby transforming its principal business to architectural design[136](index=136&type=chunk)[142](index=142&type=chunk) - In H1 2017, the company's total share capital increased to **432,208,132 shares** through share issuance to Modern Group for asset acquisition and private placement to specific investors for supporting funds[144](index=144&type=chunk) - The consolidation scope changed this period: newly added subsidiary 'Wuhan Zhenghua Architectural Design Co., Ltd.' through non-common control business combination, newly established subsidiary 'Huajian Digital Innovation (Shanghai) Technology Co., Ltd.', and deregistered 'Shanghai Modern Design Group Yunnan Co., Ltd.'[154](index=154&type=chunk) [Notes to Consolidated Financial Statement Items](index=82&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This chapter details key consolidated financial statement items, including an 856.89% surge in fixed assets to **1.235 billion Yuan**, a 1265.91% increase in long-term equity investments, a **32.90 million Yuan** rise in goodwill, and increases in short-term and long-term borrowings and capital reserves due to acquisitions and financing - Fixed assets at period-end increased by **1.106 billion Yuan** (an **856.89%** increase) compared to the beginning of the year, primarily due to the acquisition of Modern Architectural Design Building through private share placement and the consolidation of Wuhan Zhenghua[331](index=331&type=chunk) - Long-term equity investments at period-end increased by **144 million Yuan** (a **1265.91%** increase) compared to the beginning of the year, primarily due to the new investment in **34%** equity of Jiangxi Provincial Consulting Investment Group Co., Ltd.[323](index=323&type=chunk) - Goodwill book value increased by **32.90 million Yuan**, resulting from the acquisition of Wuhan Zhenghua Architectural Design Co., Ltd.[338](index=338&type=chunk) - Short-term borrowings at period-end increased by **200 million Yuan** (a **100%** increase) compared to the beginning of the year, primarily for new investment supporting financing[351](index=351&type=chunk) - Capital reserves increased by **1.243 billion Yuan** this period, primarily from share premium generated by private share placement for asset acquisition (**971 million Yuan**) and supporting funds raised (**272 million Yuan**)[392](index=392&type=chunk) [Reference Documents Catalog](index=161&type=section&id=Section%20XI%20Reference%20Documents%20Catalog) This section lists all documents available for reference related to the report ```

Financial Performance - The company's audited net profit for 2016 was RMB 0.15 billion, with cumulative undistributed profits amounting to RMB -2.37 billion as of December 31, 2016[3]. - Total revenue for 2016 reached RMB 4.55 billion, representing a 6.63% increase compared to RMB 4.27 billion in 2015[18]. - Net profit attributable to shareholders increased by 64.61% to RMB 0.24 billion in 2016 from RMB 0.15 billion in 2015[18]. - The basic earnings per share for 2016 was RMB 0.6723, a 60.80% increase from RMB 0.4181 in 2015[19]. - The company's total assets as of the end of 2016 were RMB 4.84 billion, up 15.52% from RMB 4.19 billion at the end of 2015[18]. - The weighted average return on equity increased to 27.71% in 2016, up by 5.27 percentage points from 22.44% in 2015[19]. - The net cash flow from operating activities for 2016 was RMB 0.17 billion, a decrease of 16.12% from RMB 0.21 billion in 2015[18]. - The company reported a decrease in net assets attributable to shareholders, which rose to RMB 1.00 billion, a 36.15% increase from RMB 0.74 billion in 2015[18]. - The company reported a net cash flow from operating activities of CNY 479,986,840.34 in Q4 2016, indicating a strong recovery in cash generation capabilities[21]. - The company achieved an operating revenue of 4.550 billion RMB, an increase of 6.63% compared to the previous year, and a net profit of 241.40 million RMB, up 64.6% year-on-year[36]. Investment and Acquisitions - The company successfully acquired a controlling stake in Wuhan Zhenghua Architectural Design Co., and is planning to establish regional centers in North and Southwest China[33]. - The company made a total of 7 external investment projects during the reporting period, amounting to ¥1.656 billion[56]. - The company invested ¥100 million in the Shanghai Urban Renewal Equity Investment Fund, representing a 14.14% stake, completed on June 28, 2016[57]. - The company plans to acquire 4% equity in Shanghai New Jiangwan City Investment Development Co., Ltd. for no more than ¥143 million, with the investment expected to be implemented in 2017[57]. - The company is also set to acquire 51% equity in Wuhan Zhenghua Architectural Design Co., Ltd. for ¥15.198 million, with the agreement signed on December 27, 2016[57]. Market Expansion and Strategy - The company has established 27 domestic branches and 8 overseas branches, indicating a broad market expansion strategy[30]. - The company aims to deepen its core competitiveness in 2017, targeting larger market spaces for future growth[30]. - The company is focusing on technology research and application, particularly in BIM technology and building industrialization, to strengthen its project capabilities[30]. - The engineering design consulting industry is experiencing increased market opportunities due to urban renewal and infrastructure investments, aligning with the company's growth strategy[26]. - The company is responding to the "Belt and Road" initiative by advancing overseas projects and enhancing its international brand value[66]. Corporate Governance and Management - The company has a structured training program for young backup talents, including a training class that integrates leadership and strategic skills[130]. - The board of directors consists of seven members, including three independent directors, ensuring compliance with legal and regulatory requirements[135]. - The board held 10 meetings during the reporting period, demonstrating active governance and oversight[136]. - The company has implemented a performance evaluation mechanism for senior management, linking personal compensation to company performance[146]. - The company revised its articles of association and established related systems to enhance corporate governance[140]. Risks and Challenges - The company has outlined potential risks in its future development, which are detailed in the report[5]. - The company faces risks related to policy changes, market competition, project management, and human resources, which could impact its operational performance[68][69][70]. - The construction industry is experiencing a weak overall recovery, with a continued decline in new project investments, while urban renewal and renovation are emerging as new highlights in city construction[62]. Employee and Talent Management - The company employed a total of 5,937 staff, with 5,902 in major subsidiaries and 35 in the parent company[127]. - The number of technical personnel within the company is 5,055, representing a significant portion of the workforce[127]. - The company has established a competitive incentive-based salary distribution mechanism, linking employee remuneration to performance and company efficiency[128]. - The company emphasizes talent development, conducting 71 external training courses and internal specialized training to enhance management and operational capabilities[129]. Financial Structure and Equity - The total amount of guarantees provided by the company during the reporting period was CNY 120,894,528.47, with a year-end balance of CNY 74,747,712.07, representing 7.22% of the company's net assets[94]. - The company reported a total of CNY 38,071,776.18 in guarantees exceeding 50% of net assets during the reporting period[94]. - The total equity at the end of the current period is RMB 1,189,464,958.68, an increase from RMB 1,174,022,764.97 at the end of the previous period, reflecting a growth of approximately 1.3%[184]. - The company’s retained earnings stand at CNY 380,665,396.06, reflecting a solid foundation for future growth[183]. Social Responsibility - The company has engaged in social responsibility initiatives, with a total investment of CNY 51.9 million in poverty alleviation efforts during the reporting period[97].

2017 年第一季度报告 公司代码：600629 公司简称：华建集团 华东建筑集团股份有限公司 2017 年第一季度报告 1 / 18 | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 5 | | 四、 | 附录 | 7 | 2017 年第一季度报告 一、 重要提示 1.1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 二、 公司基本情况 2.1 主要财务数据 单位：元 币种：人民币 3 / 18 1.2 未出席董事情况 未出席董事姓名 未出席董事职务 未出席原因的说明 被委托人姓名 李安 董事 工作原因 王玲 1.3 公司负责人秦云、主管会计工作负责人吴峰宇及会计机构负责人（会计主管人员）何静保证 季度报告中财务报表的真实、准确、完整。 1.4 本公司第一季度报告未经审计。 2017 年第一季度报告 非经常性损益项目和金额 √适用 □不适用 2.2 截止报告期末的股东总数、前十名股东、前十名流通股东（或无限售条 ...