Financial Performance - The company's operating revenue for the first half of 2022 was CNY 158,286,934, representing an increase of 11.83% compared to CNY 141,545,737 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was CNY 2,793,554, reflecting an 18.69% increase from CNY 2,353,650 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was CNY 1,752,087, which is a decrease of 7.13% compared to CNY 1,886,605 in the same period last year[21]. - The company's total assets at the end of the reporting period were CNY 588,509,043, an increase of 11.28% from CNY 528,862,588 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company were CNY 96,851,385, showing a growth of 2.82% compared to CNY 94,198,680 at the end of the previous year[21]. - The basic earnings per share for the first half of 2022 was CNY 0.063, down 17.11% from CNY 0.076 in the same period last year[22]. - The weighted average return on net assets was 3.03%, a decrease of 0.73 percentage points compared to 3.76% in the previous year[22]. - The company reported a net cash flow from operating activities of CNY -13,792,961, indicating a decline from CNY -11,010,748 in the previous year[21]. - The company achieved a new contract amount of RMB 532.76 billion in the first half of 2022, representing a year-on-year increase of 10.24%[45]. - The company's operating revenue reached RMB 158.29 billion, with a year-on-year growth of 11.83%[45]. Investments and Contracts - The company's new contract value for surveying, design, and consulting business reached RMB 95.69 billion, a year-on-year increase of 58.37%[36]. - The company's engineering construction business signed new contracts worth RMB 5,014.87 billion, reflecting a year-on-year growth of 6.61%[36]. - The investment in water conservancy construction reached RMB 748 billion, a year-on-year increase of 49.5%[30]. - The company secured 8.37 million kW of wind and solar energy development indicators, with a cumulative total of 22.26 million kW[47]. - The new contracts for renewable energy and integrated smart energy projects reached RMB 204.08 billion, up 116.61% year-on-year, accounting for 38.3% of total new contracts[47]. Financial Position and Liabilities - As of June 30, 2022, the company's total liabilities amounted to RMB 435.954 billion, with a total asset value of RMB 588.509 billion, resulting in a debt-to-asset ratio of 74.08%, an increase of 2.39 percentage points from the beginning of the year[64]. - The company's restricted cash was RMB 5,543.963 million, accounts receivable was RMB 4,567.785 million, and inventory was RMB 13,187.638 million, primarily due to loan pledges and litigation[63]. - The company's total bank loans and other borrowings reached RMB 149.307 billion, up from RMB 120.179 billion at the end of the previous year[65]. - The company's capital debt ratio at the end of the period was 97.87%, an increase of 17.61 percentage points from the beginning of the year[68]. - The company's asset-liability ratio increased to 74.08% from 71.69% year-on-year, a change of 2.39%[160]. Cash Flow and Financing - The company reported a net cash flow from operating activities of CNY -13,792,961, compared to -CNY 11,010,748 in the previous year[51]. - The financing activities generated a net cash flow of RMB 20.57 billion, a significant increase of 97.39% year-on-year[51]. - The company reported a significant increase in other income to 17,142,000 thousand RMB from 2,365,000 thousand RMB in the previous year[174]. - Cash flow from financing activities showed a net increase of 20,570,111 thousand RMB in the first half of 2022, compared to 10,421,237 thousand RMB in the same period of 2021, indicating improved financing conditions[176]. Environmental and Social Responsibility - The company has installed automatic monitoring systems for key pollutants at 60 wastewater treatment plants and 9 cement plants, ensuring compliance with emission standards[92]. - In the first half of 2022, the company achieved a 100% operational rate for pollution control facilities, with all major pollutants meeting discharge standards[93]. - The company has committed to reducing carbon emissions through energy-efficient equipment and innovative technologies, with a focus on energy consumption management[100]. - The company has developed an emergency response plan for environmental incidents and conducted regular drills to ensure preparedness[95]. - The company has strengthened its environmental compliance management, ensuring all construction projects adhere to environmental impact assessments[94]. Corporate Governance and Compliance - The company has adhered to all general provisions of the Corporate Governance Code during the reporting period[132]. - The company confirmed that all directors and supervisors complied with the standards set forth in the code of conduct during the reporting period[132]. - The company organized 5 board meetings during the reporting period, reviewing 27 proposals[132]. - The company has no changes in the shareholding of directors, supervisors, and senior management during the reporting period[143]. - The company has no strategic investors or general legal entities becoming major shareholders during the reporting period[140]. Future Outlook and Strategy - The company anticipates a rebound in China's economic growth in the second half of 2022, driven by macroeconomic policies and recovery of supply chains[84]. - The company aims to enhance its comprehensive design capabilities across various infrastructure sectors, including water conservancy and ecological protection[36]. - The company plans to maintain a prudent financial policy while seeking various funding sources to support its capital and operational needs[60]. - The company is facing intensified market competition in new energy and infrastructure sectors, which may impact operational performance if not effectively managed[81]. - The company has a strategic focus on high-quality investment and lifecycle investment, transitioning towards value and industrial investments[83].

Financial Performance - The company's operating revenue for 2021 was CNY 322.32 billion, an increase of 19.23% compared to CNY 270.33 billion in 2020[25]. - Net profit attributable to shareholders for 2021 was CNY 6.50 billion, representing a growth of 39.26% from CNY 4.67 billion in 2020[25]. - The net profit after deducting non-recurring gains and losses was CNY 5.07 billion, up 37.69% from CNY 3.68 billion in 2020[25]. - The net cash flow from operating activities for 2021 was CNY 8.84 billion, compared to CNY 6.49 billion in 2020[25]. - The total assets at the end of 2021 were CNY 528.86 billion, an increase from CNY 476.05 billion at the end of 2020[25]. - The net assets attributable to shareholders at the end of 2021 were CNY 94.20 billion, up from CNY 68.42 billion at the end of 2020[25]. - Basic earnings per share for 2021 were CNY 0.19, an increase of 26.67% from CNY 0.15 in 2020[26]. - The weighted average return on net assets for 2021 was 8.55%, an increase of 0.65 percentage points from 7.90% in 2020[26]. - The total profit for the year reached RMB 13.05 billion, with a year-on-year increase of 8.39%[44]. - The net profit for 2021 was RMB 9.60 billion, representing a year-on-year growth of 11.12%[44]. Strategic Initiatives - The company aims to be a world-class integrated energy solution provider and has set a strategic vision to lead in national strategy implementation and energy revolution[15]. - The company plans to implement the "1466" strategy and "1+9" planning system to accelerate the expansion of strategic businesses and enhance its competitive edge in the market[39]. - The company aims to prioritize the development of renewable energy as its core business and profit driver, focusing on strategic market development in regions such as the Guangdong-Hong Kong-Macao Greater Bay Area and Hainan Free Trade Port[39]. - The company is committed to advancing green and low-carbon energy development, promoting renewable energy projects in eastern, central, and southern regions[165]. - The company will focus on three major sectors: new energy (including hydrogen energy and energy storage), integrated transportation, and urban comprehensive development, aiming for a shift from project investment to industrial investment[185]. Research and Development - The company has established 3 academician expert workstations and 11 postdoctoral research stations to enhance its research capabilities[14]. - Research and development expenses increased by 29.55% to RMB 8.79 billion, highlighting the company's commitment to innovation[94]. - The total R&D investment accounted for 2.75% of operating revenue, with capitalized R&D representing 0.93%[109]. - The company employed 20,139 R&D personnel, making up 17.46% of the total workforce[110]. - The company has established high-end R&D platforms and a "1+N+X" innovation system to enhance its technological capabilities[89]. Corporate Governance - The company has established a robust internal governance structure to ensure compliance with relevant laws and regulations following its dual listing in A+H markets[189]. - The board of directors will convene at least four regular meetings annually to oversee the company's operational and financial strategies[191]. - The company has strengthened its corporate governance framework, ensuring that external directors constitute a majority on the board[189]. - The nomination committee will review the board's diversity annually and monitor the implementation of the diversity policy[197]. - The selection criteria for board candidates include their impact on board diversity and their commitment to fulfilling responsibilities[198]. Market Position and Operations - The company operates in over 140 countries and regions, with more than 200 overseas branches, and has been ranked among the world's top 500 companies for eight consecutive years[14]. - The company has a market share of over 30% in hydropower engineering and over 50% in large hydropower projects[58]. - The company has established several technology innovation platforms, including a hydrogen energy company and a green building materials company, to accelerate new industry cultivation[52]. - The company has contracted or invested in the construction of over 40 highway projects, totaling more than 3,000 kilometers[61]. - The company is focusing on comprehensive water environment governance and actively seizing opportunities in the ecological and environmental protection market[60]. Risk Management - The company faces increased risks in international operations due to significant declines in international trade and investment, rising commodity prices, and geopolitical instability[176]. - Cash flow risks are heightened as some subsidiaries exhibit weak financial risk management, leading to insufficient cash flow and potential default risks[178]. - Project management risks arise from a lack of focus on project quality and compliance, which may result in project losses and client complaints[179]. - The company plans to strengthen its international business risk control system and enhance project feasibility studies and compliance reviews[176]. - Financial management will be improved through dynamic assessments of financial capacity and the establishment of an integrated financial information system[178]. Awards and Recognition - The company received over 189 provincial and industry-level technology awards and was granted 1,893 patents throughout the year, reflecting its commitment to technological innovation[39]. - The company has received numerous prestigious awards, including 42 National Quality Engineering Gold Awards, showcasing its strong project execution capabilities[91]. - The company achieved zero quality accidents in 2021, reflecting its strong commitment to quality management[145]. - The company received 29 national quality engineering awards in 2021, including 10 gold awards, marking a historical high[146]. Future Outlook - The company plans to sign new contracts worth RMB 899.5 billion in 2022, with projected revenue of RMB 342.2 billion and an investment plan of RMB 123.7 billion[173]. - By 2025, the installed capacity of renewable energy in China is expected to reach around 1.1 billion kilowatts, with wind and solar power accounting for approximately two-thirds of this capacity[165]. - The company recognizes significant market opportunities in the ecological and environmental protection sector, with a focus on river management and solid waste treatment[167]. - The ongoing geopolitical tensions and COVID-19 pandemic have created uncertainties that may impact the company's operational results and financial condition[186]. - The company is closely monitoring the impact of COVID-19 prevention measures and geopolitical events on project progress and repayment capabilities in relevant countries[187].

Financial Performance - The company's operating revenue for 2021 was CNY 322,318,565 thousand, representing a 19.23% increase from CNY 270,327,662 thousand in 2020[21]. - The net profit attributable to shareholders for 2021 was CNY 6,504,102 thousand, a significant increase of 39.26% compared to CNY 4,670,576 thousand in 2020[21]. - The net profit after deducting non-recurring gains and losses was CNY 5,071,829 thousand, up 37.69% from CNY 3,683,494 thousand in 2020[21]. - The company's cash flow from operating activities for 2021 was CNY 8,844,178 thousand, reflecting a 36.27% increase from CNY 6,490,100 thousand in 2020[21]. - Basic earnings per share for 2021 were CNY 0.19, an increase of 26.67% from CNY 0.15 in 2020[22]. - The weighted average return on equity for 2021 was 8.55%, up from 7.90% in 2020, indicating improved profitability[22]. - The total assets at the end of 2021 were CNY 528,862,588 thousand, an increase of 11.09% from CNY 476,051,912 thousand at the end of 2020[21]. - The net assets attributable to shareholders at the end of 2021 were CNY 94,198,680 thousand, a 37.68% increase from CNY 68,416,918 thousand at the end of 2020[21]. - The company reported a total of CNY 919,302 thousand in non-recurring gains for 2021, compared to CNY 1,589,114 thousand in 2020[25]. - The cash flow from operating activities in Q4 2021 was CNY 19,709,049 thousand, indicating strong performance in the last quarter[24]. Strategic Vision and Goals - The company aims to become a world-class energy integrated solution provider and has set a strategic vision to lead in energy revolution and high-quality development[15]. - The company plans to prioritize the development of new energy as its core business and profit center, focusing on strategic market development in regions such as Xiong'an New Area and the Guangdong-Hong Kong-Macao Greater Bay Area[30]. - The company plans to sign new contracts worth RMB 899.5 billion and expects revenue of RMB 342.2 billion for 2022[108]. - The company has set a strategic vision to become a world-class enterprise with global competitiveness by 2035, focusing on energy, transportation, and digital integration[107]. - The company plans to leverage the "30•60" system solution to integrate green, digital, and shared economies into its business strategy[107]. Research and Development - The company has established 3 academician expert workstations and 11 postdoctoral research stations to enhance its research capabilities[15]. - The company achieved a significant increase in research and development expenses, rising to RMB 8.79 billion, a 29.55% increase, indicating a focus on innovation[54]. - The company has made significant advancements in various technology fields, securing 1,893 patents, including 210 invention patents[68]. Corporate Governance - The company has established a robust internal governance structure, ensuring that the board of directors and management operate independently and efficiently[111]. - The board of directors is responsible for convening shareholder meetings, executing resolutions, and determining the company's operational plans and investment proposals[113]. - The company has implemented internal control measures to comply with relevant laws and regulations following its dual listing in A+H markets[111]. - The company emphasizes the importance of transparency and accountability in its reporting to shareholders and stakeholders[113]. - The company has strengthened its corporate governance framework by improving its articles of association and operational rules[111]. Environmental and Social Responsibility - The company actively engaged in environmental protection and energy conservation management, with no environmental responsibility incidents reported during the year[172]. - The company has committed RMB 3.4 million to improve rural living environments, including the construction of water supply systems and sewage treatment facilities[183]. - The company has integrated social responsibility into its operations, receiving recognition for its 2020 social responsibility report from the Ministry of Industry and Information Technology[182]. - The Baihetan Hydropower Station, in which the company participates, is expected to generate an average annual output of 62.443 billion kWh, saving approximately 25 million tons of standard coal and reducing carbon dioxide emissions by about 65 million tons annually[181]. Market Expansion and Contracts - The company achieved a new high in new contract signing, totaling RMB 872.61 billion, a year-on-year increase of 51%[31]. - The domestic new contract signing reached RMB 655.46 billion, a year-on-year increase of 64.2%[31]. - The overseas new contract signing was RMB 217.15 billion, showing a year-on-year growth of 21.6%[32]. - The company signed new contracts worth RMB 800.89 billion in engineering construction, representing a year-on-year increase of 45.7%[44]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements and future plans[5]. - The company will focus on risk prevention and control, targeting key areas and personnel to ensure no major risks occur[30]. - The company recognizes the increasing competition in the new energy sector and is focused on enhancing its competitive advantages[109]. - The company aims to enhance its financial management and cash flow monitoring to mitigate risks associated with cash flow and debt repayment[109]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of RMB 0.225 per 10 shares, totaling RMB 938 million, subject to shareholder approval[4]. - The proposed cash dividend distribution is RMB 938,051,181.81, which accounts for 15.28% of the net profit attributable to shareholders for the year[157]. - The company's board of directors recommends a cash dividend of RMB 2.25 per share, pending approval at the annual shareholders' meeting[157]. Audit and Compliance - The company reported a standard unqualified audit opinion from KPMG Huazhen[3]. - The financial report is signed and sealed by the legal representative and accounting heads, ensuring its authenticity[9]. - The company has confirmed compliance with related party transaction regulations under both Hong Kong and Shanghai Stock Exchange rules[199]. - The internal control audit report issued by the accounting firm was a standard unqualified opinion, confirming the effectiveness of the internal control system[164].

[Company Information](index=3&type=section&id=Item%20I.%20Company%20Information) This section provides fundamental company details, including corporate identity, contact information, stock listing, and governance structure - This chapter provides fundamental company information, including its corporate identity, contact details, stock listing (China Energy Engineering, stock code 3996), and governance structure with details on directors and supervisors[3](index=3&type=chunk) [Financial Highlights](index=4&type=section&id=Item%20II.%20Financial%20Highlights) This section outlines the company's key financial performance in H1 2021, including significant growth in operating revenue, gross profit, net profit, and earnings per share, alongside changes in asset and liability structure - In H1 2021, total operating revenue grew **34.04%** to **RMB 141.546 billion**, gross profit increased **36.98%**, and net profit attributable to equity holders surged **166.69%** to **RMB 2.451 billion**, with basic earnings per share up **162.50%**[5](index=5&type=chunk) Condensed Consolidated Income Statement Highlights (For the Six Months Ended June 30) | Indicator | 2021 (RMB Million) | 2020 (RMB Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | **Total Operating Revenue** | **141,545.7** | **105,597.2** | **34.04%** | | Gross Profit | 17,047.0 | 12,445.0 | 36.98% | | Profit Before Tax | 6,164.0 | 3,502.7 | 75.98% | | Profit for the Period | 4,520.3 | 2,238.4 | 101.95% | | Profit Attributable to Equity Holders of the Company | 2,450.9 | 919.0 | 166.69% | | Basic Earnings Per Share (RMB Cents) | 7.56 | 2.88 | 162.50% | Condensed Consolidated Statement of Financial Position Highlights | Indicator | June 30, 2021 (RMB Million) | December 31, 2020 (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 499,228.9 | 476,051.9 | 4.87% | | Total Liabilities | 351,476.8 | 338,123.0 | 3.95% | | Total Equity | 147,752.1 | 137,928.9 | 7.12% | [Business Development Overview](index=5&type=section&id=Item%20III.%20Business%20Development%20Overview) This section comprehensively reviews the company's business development in H1 2021, including the macroeconomic backdrop, operating performance of each business segment, and growth in new and uncompleted contracts [Industry Development Overview](index=5&type=section&id=Item%20III.1%20Industry%20Development%20Overview) In H1 2021, China's economy showed recovery, with key sectors like infrastructure, construction, and power consumption experiencing significant year-on-year growth, providing a favorable operating environment - China's macroeconomic performance in H1 2021 demonstrated restorative growth and accelerated recovery, with a rebound in growth rates for industries related to the company's main business[9](index=9&type=chunk) - Key industry data year-on-year changes: * Infrastructure investment (excluding power) increased by **7.8%**[7](index=7&type=chunk) * Total construction industry output value grew **18.8%**[7](index=7&type=chunk) * Total societal electricity consumption rose **16.21%**[7](index=7&type=chunk) * New overseas contracted project value decreased **5.2%**, while turnover along the 'Belt and Road' increased **1.8%**[7](index=7&type=chunk) [Business Review](index=6&type=section&id=Item%20III.2%20Business%20Review) In H1 2021, the company achieved strong overall performance with new contracts up **58.2%** and revenue up **34.04%**, primarily driven by robust growth in the engineering construction segment Overall Operating Performance in H1 2021 | Indicator | Amount (RMB Billion) | Year-on-Year Growth | | :--- | :--- | :--- | | New Contracts Signed | 483.289 | 58.2% | | Operating Revenue | 141.546 | 34.04% | | Total Profit | 6.164 | 75.98% | [Survey, Design and Consulting Business](index=6&type=section&id=Item%20III.2.1%20Survey%2C%20Design%20and%20Consulting%20Business) This segment's H1 2021 revenue grew **18.80%** to **RMB 5.701 billion** due to design progress recovery, despite a slight **2.81%** decrease in new contracts signed Key Operating Indicators for Survey, Design and Consulting Business (RMB Billion) | Indicator | H1 2021 | H1 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 5.701 | 4.799 | 18.80% | | Gross Profit | 1.726 | 1.585 | 8.88% | | New Contracts Signed | 6.042 | 6.217 | -2.81% | - The company maintains a leading position in energy and power survey and design technology, with international advantages in ultra-supercritical units, third-generation nuclear power, and UHV transmission and transformation[11](index=11&type=chunk) [Engineering Construction Business](index=10&type=section&id=Item%20III.2.2%20Engineering%20Construction%20Business) The core engineering construction segment saw new contracts surge **60.62%** to **RMB 470.385 billion** and revenue grow **41.96%** to **RMB 115.021 billion** in H1 2021, driven by post-pandemic project resumption Key Operating Indicators for Engineering Construction Business (RMB Billion) | Indicator | H1 2021 | H1 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 115.021 | 81.022 | 41.96% | | Gross Profit | 8.648 | 5.943 | 45.52% | | New Contracts Signed | 470.385 | 292.851 | 60.62% | - The company demonstrates strong core competitiveness in power and large-scale infrastructure investment and construction, offering integrated engineering construction services with full value chain and lifecycle management[20](index=20&type=chunk) [Industrial Manufacturing Business](index=14&type=section&id=Item%20III.2.3%20Industrial%20Manufacturing%20Business) The industrial manufacturing segment, encompassing cement, civil explosives, and equipment, achieved **22.99%** revenue growth to **RMB 12.318 billion** in H1 2021, with all sub-segments showing double-digit increases Key Operating Indicators for Industrial Manufacturing Business (RMB Billion) | Indicator | H1 2021 | H1 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Segment Operating Revenue** | **12.318** | **10.016** | **22.99%** | | Of which: Cement Production | 4.476 | 3.584 | 24.89% | | Of which: Civil Explosives | 2.252 | 1.952 | 15.37% | | Of which: Equipment Manufacturing | 5.590 | 4.480 | 24.78% | | **Segment Gross Profit** | **3.040** | **2.605** | **16.72%** | [Clean Energy and Environmental Water Business](index=16&type=section&id=Item%20III.2.4%20Clean%20Energy%20and%20Environmental%20Water%20Business) This segment's H1 2021 revenue significantly decreased by **61.66%** to **RMB 2.518 billion** due to the divestment of loss-making environmental businesses, yet gross profit surged **88.50%** indicating improved profitability Key Operating Indicators for Clean Energy and Environmental Water Business (RMB Billion) | Indicator | H1 2021 | H1 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Segment Operating Revenue** | **2.518** | **6.568** | **-61.66%** | | Of which: Clean Energy | 0.844 | 0.599 | 40.90% | | Of which: Environmental Business | 1.054 | 5.190 | -79.69% | | Of which: Water Business | 0.620 | 0.779 | -20.41% | | **Segment Gross Profit** | **0.826** | **0.438** | **88.50%** | - The substantial decrease in environmental business revenue resulted from the divestment of certain loss-making operations, which concurrently led to a significant improvement in the segment's overall gross profit[33](index=33&type=chunk) [Investment and Other Businesses](index=17&type=section&id=Item%20III.2.5%20Investment%20and%20Other%20Businesses) This segment, including real estate and highway operations, achieved robust **69.34%** revenue growth to **RMB 12.969 billion** in H1 2021, with real estate and highway operations growing **62.28%** and **99.79%** respectively Key Operating Indicators for Investment and Other Businesses (RMB Billion) | Indicator | H1 2021 | H1 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Segment Operating Revenue** | **12.969** | **7.659** | **69.34%** | | Of which: Real Estate Business | 5.417 | 3.338 | 62.28% | | Of which: Highway Operations | 0.935 | 0.468 | 99.79% | | **Segment Gross Profit** | **2.789** | **1.842** | **51.39%** | [Summary of Business Development](index=19&type=section&id=Item%20III.2.6%20Summary%20of%20Business%20Development) By H1 2021, new contracts surged **58.2%** to **RMB 483.289 billion**, with backlog increasing **19.08%** to **RMB 1,623.713 billion**, indicating strong future performance and optimized business structure New Contracts Signed in H1 2021 (RMB Billion) | Category | H1 2021 | H1 2020 | Year-on-Year Growth Rate | | :--- | :--- | :--- | :--- | | **Total** | **483.289** | **305.491** | **58.20%** | | Domestic | 340.749 | 208.124 | 63.72% | | International | 142.540 | 97.367 | 46.39% | | Power Engineering | 242.157 | 159.331 | 51.98% | | Non-Power Engineering | 241.132 | 146.160 | 64.98% | Uncompleted Contracts as of H1 2021 (RMB Billion) | Category | End of H1 2021 | End of H1 2020 | Year-on-Year Growth Rate | | :--- | :--- | :--- | :--- | | **Total** | **1,623.713** | **1,363.569** | **19.08%** | | Engineering Construction | 1,584.526 | 1,319.242 | 20.11% | | Power Engineering | 952.186 | 860.357 | 10.67% | | Non-Power Engineering | 671.527 | 503.212 | 33.45% | [Management Discussion and Analysis](index=21&type=section&id=Item%20IV.%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's H1 2021 overall and segment operating performance, cash flow, debt status, pledged assets, contingent matters, risk management strategies, and future investment and business outlook [Overall Operating Performance](index=21&type=section&id=Item%20IV.1%20Overall%20Operating%20Performance) In H1 2021, operating revenue grew **34.04%** driven by engineering construction and other segments, while gross profit increased **36.98%** due to higher revenue and improved margins - Operating revenue increased **34.04%** to **RMB 141.546 billion**, primarily driven by engineering construction, equipment manufacturing, and real estate businesses[54](index=54&type=chunk) - Gross profit increased **36.98%** to **RMB 17.047 billion**, primarily due to higher engineering construction revenue, improved margins in certain businesses, and the turnaround of environmental operations[55](index=55&type=chunk) - Selling and administrative expenses increased **26.82%** and **21.45%** respectively, primarily due to the stable resumption of production and operational activities in 2021, leading to corresponding expenditure growth[56](index=56&type=chunk)[57](index=57&type=chunk) [Segment Operating Performance](index=23&type=section&id=Item%20IV.2%20Segment%20Operating%20Performance) In H1 2021, engineering construction showed strong growth, while clean energy and environmental water revenue declined due to divestments, but its gross profit significantly improved Operating Revenue and Year-on-Year Change by Segment (RMB Million) | Segment | H1 2021 Revenue | Year-on-Year Change | | :--- | :--- | :--- | | Survey, Design and Consulting Services | 5,701.1 | 18.80% | | Engineering Construction | 115,020.8 | 41.96% | | Industrial Manufacturing | 12,318.2 | 22.99% | | Clean Energy and Environmental Water | 2,518.0 | -61.66% | | Investment and Other Businesses | 12,969.1 | 69.34% | - The decline in clean energy and environmental water revenue was primarily due to reduced environmental business, but gross profit increased **88.50%** as cost reductions from divesting low-margin operations outpaced revenue decline[64](index=64&type=chunk) [Cash Flow](index=26&type=section&id=Item%20IV.3%20Cash%20Flow) As of June 30, 2021, the company reported **RMB 39.47 billion** in cash and equivalents, with increased net cash outflows from operating and investing activities, partially offset by financing inflows Condensed Consolidated Cash Flow Statement Highlights (RMB Million) | Item | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (11,010.7) | (9,343.2) | | Net Cash Used in Investing Activities | (9,780.8) | (7,805.6) | | Net Cash from Financing Activities | 10,421.2 | 12,283.2 | | Net Decrease in Cash and Cash Equivalents | (10,370.3) | (4,865.6) | [Indebtedness](index=28&type=section&id=Item%20IV.6%20Indebtedness) As of June 30, 2021, total liabilities were **RMB 351.477 billion**, with a debt-to-asset ratio of **70.40%**, and the company maintained substantial unused bank credit lines of **RMB 547.542 billion** - The asset-liability ratio stood at **70.40%**, a **0.63 percentage point decrease** from **71.03%** at the end of 2020[74](index=74&type=chunk) Debt Structure (RMB Million) | Item | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Long-term Debt | 85,040.0 | 72,970.3 | | Short-term Debt | 35,731.6 | 44,188.5 | | **Total** | **120,771.6** | **117,158.8** | - The company has no significant overdue bank borrowings or breaches of debt financing obligations, holding **RMB 40 billion** in unused debt securities quotas and **RMB 547.542 billion** in unused bank credit lines[82](index=82&type=chunk) [Pledged Assets, Contingent Matters and Contingent Liabilities](index=31&type=section&id=Item%20IV.7%20Pledged%20Assets%2C%20Contingent%20Matters%20and%20Contingent%20Liabilities) As of June 30, 2021, **RMB 66.359 billion** in assets were pledged, with contingent liabilities totaling **RMB 8.012 billion** from guarantees, and ongoing legal proceedings involving a subsidiary - As of June 30, 2021, the company had a total of **RMB 66.359 billion** in pledged assets to secure bank credit facilities[84](index=84&type=chunk) - Total external guarantees amounted to **RMB 8.012 billion**, covering loan guarantees for related parties and third parties, and mortgage loan guarantees for property buyers[88](index=88&type=chunk) - Subsidiary Gezhouba Huanjia is involved in multiple legal proceedings with financial institutions, lenders, and suppliers, with some outcomes uncertain pending supervisory commission investigations[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) [Risk Management](index=34&type=section&id=Item%20IV.9%20Risk%20Management) The company faces key risks including macroeconomic volatility, international operations, QHSE, investment decisions, and project execution, addressed through enhanced analysis, strategic planning, and robust management systems - Major business risks include: * **Macroeconomic risk**: Impact of domestic and international economic changes on industry development[96](index=96&type=chunk) * **International operation risk**: Challenges from overseas epidemics, geopolitical issues, and capital shortages[97](index=97&type=chunk) * **QHSE risk**: Inherent safety production risks within the construction industry[99](index=99&type=chunk) * **Investment risk**: Difficulties in investment decision-making and management for new business areas[99](index=99&type=chunk) * **Engineering project performance risk**: Issues with resource allocation, project duration, and costs exacerbated by the pandemic[99](index=99&type=chunk) - The company mitigates and prevents various risks by strengthening analysis, optimizing strategic layout, reinforcing management systems, and enhancing refined management capabilities[96](index=96&type=chunk)[97](index=97&type=chunk)[99](index=99&type=chunk) [Future Major Investment Plans](index=39&type=section&id=Item%20IV.12%20Future%20Major%20Investment%20Plans) Future investments will focus on core businesses aligned with 'carbon peak and neutrality' goals, including a significant A-share merger with Gezhouba Group Company Limited, approved by the CSRC in August 2021 - The company plans to absorb and merge its subsidiary Gezhouba Group Company Limited via an A-share issuance, a transaction approved by the China Securities Regulatory Commission[104](index=104&type=chunk)[106](index=106&type=chunk) - Future investments will concentrate on core businesses, aligning with 'carbon peak and neutrality' goals, and enhancing integrated investment, construction, and operation capabilities in new infrastructure and urbanization[104](index=104&type=chunk) [Business Outlook](index=40&type=section&id=Item%20IV.13%20Business%20Outlook) The company anticipates growth opportunities in domestic clean energy and infrastructure driven by national strategies, and a recovery in international markets, aiming for accelerated overall performance in H2 2021 - **Domestic Market Outlook**: * **Power Industry**: Rapid development in new energy and grid optimization, driven by 'carbon peak and neutrality' goals[107](index=107&type=chunk) * **Non-Power Market**: The '14th Five-Year Plan' will create market opportunities in new infrastructure, transportation, water conservancy, and ecological environmental protection[108](index=108&type=chunk)[109](index=109&type=chunk) - **International Market Outlook**: Improving global economic prospects and continued infrastructure focus present opportunities; the company will optimize its international market strategy and advance 'Belt and Road' initiatives[111](index=111&type=chunk) [Significant Matters](index=43&type=section&id=Item%20V.%20Significant%20Matters) This section discloses important corporate events, including changes in major shareholder interests, personnel adjustments to the Board and Supervisory Committee, and the acquisition and disposal of subsidiary equity during the reporting period [Major Shareholders' Interests](index=44&type=section&id=Item%20V.3%20Major%20Shareholders%27%20Interests) As of June 30, 2021, China Energy Engineering Group Co., Ltd. held approximately **62.58%** of the company's issued share capital as the controlling shareholder Major Shareholder Holdings (As of June 30, 2021) | Shareholder Name | Share Class | Holding Percentage (% of Total Share Capital) | | :--- | :--- | :--- | | China Energy Engineering Group Co., Ltd. | Domestic Shares & H Shares | ~62.58% | | China Reform Holdings Corporation Ltd. | Domestic Shares & H Shares | ~8.87% | | Silk Road Fund Co., Ltd. | H Shares | 4.87% | [Changes in Directors and Supervisors](index=47&type=section&id=Item%20V.6%20Changes%20in%20Directors%20and%20Supervisors) During the reporting period, the company's Board of Directors and Supervisory Committee underwent several personnel changes, with new appointments and resignations due to term expiry - On February 5, 2021, the company completed the re-election of its Board of Directors and Supervisory Committee, with several members resigning due to term expiry and new members elected[122](index=122&type=chunk) [Acquisition and Disposal of Subsidiaries](index=48&type=section&id=Item%20V.10%20Acquisition%20and%20Disposal%20of%20Subsidiaries) During the period, the company transferred equity in two subsidiaries, China Energy Engineering Fund Management Co., Ltd. and China Energy Engineering Group Financial Leasing Co., Ltd., to its controlling shareholder, losing control - In June 2021, the company signed agreements with its controlling shareholder to divest control of its fund and financial leasing companies, completing the remaining equity transfer for the latter in July[126](index=126&type=chunk) [Condensed Consolidated Financial Statements](index=49&type=section&id=Item%20VII.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the company's unaudited consolidated statement of profit or loss and other comprehensive income, consolidated statement of financial position, and condensed consolidated cash flow statement for the six months ended June 30, 2021, along with detailed notes to the financial report [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=50&type=section&id=Item%20VII.1%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section presents the unaudited consolidated statement of profit or loss for H1 2021, showing **RMB 141.546 billion** in operating revenue and **RMB 2.451 billion** in profit attributable to equity holders Key Data from Consolidated Income Statement H1 2021 (RMB Thousand) | Indicator | Amount | | :--- | :--- | | Operating Revenue | 141,545,737 | | Gross Profit | 17,046,955 | | Profit Before Tax | 6,164,048 | | Profit for the Period | 4,520,304 | | Profit Attributable to Equity Holders of the Company | 2,450,926 | [Consolidated Statement of Financial Position](index=53&type=section&id=Item%20VII.2%20Consolidated%20Statement%20of%20Financial%20Position) This section presents the unaudited consolidated statement of financial position as of June 30, 2021, with total assets of **RMB 499.229 billion** and total equity of **RMB 147.752 billion** Key Data from Consolidated Statement of Financial Position as of June 30, 2021 (RMB Thousand) | Indicator | Amount | | :--- | :--- | | Total Assets | 499,228,939 | | Total Liabilities | 351,476,846 | | Total Equity | 147,752,093 | [Condensed Consolidated Cash Flow Statement](index=58&type=section&id=Item%20VII.3%20Condensed%20Consolidated%20Cash%20Flow%20Statement) This section presents the unaudited condensed consolidated cash flow statement for H1 2021, showing net cash outflows from operating and investing activities, and net cash inflows from financing activities Key Data from Cash Flow Statement H1 2021 (RMB Thousand) | Indicator | Amount | | :--- | :--- | | Net Cash Used in Operating Activities | (11,010,748) | | Net Cash Used in Investing Activities | (9,780,806) | | Net Cash from Financing Activities | 10,421,238 | | Net Decrease in Cash and Cash Equivalents | (10,370,316) | [Notes to the Unaudited Interim Financial Report](index=60&type=section&id=Item%20VII.4%20Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) This section provides detailed notes to the unaudited interim financial report, covering accounting policies, segment information, financial instruments, related party transactions, contingent liabilities, and subsequent events - Note 3 details the revenue and performance of the five major business segments: survey, design and consulting, engineering construction, industrial manufacturing, clean energy and environmental water, and investment and other businesses[150](index=150&type=chunk) - Note 26 discloses multiple legal proceedings involving subsidiary Gezhouba Huanjia, with outcomes and potential financial impacts uncertain due to ongoing supervisory commission investigations[239](index=239&type=chunk)[240](index=240&type=chunk)[241](index=241&type=chunk) - Note 30 discloses subsequent events, including the approval by the China Securities Regulatory Commission on August 11, 2021, for the company's plan to absorb and merge Gezhouba Group Company Limited via a share swap[255](index=255&type=chunk) [Glossary of Terms and Technical Terminology](index=100&type=section&id=Item%20VIII.%20Glossary%20of%20Terms%20and%20Technical%20Terminology) This section defines and explains specific terms and technical terminology used throughout the report, such as 'Company,' 'CEEC,' 'PPP,' and 'Belt and Road,' to enhance reader comprehension - This section defines and explains specific terms and technical terminology used throughout the report, such as 'Company,' 'China Energy Engineering Group,' 'PPP,' and 'Belt and Road,' to enhance reader comprehension[257](index=257&type=chunk)[259](index=259&type=chunk)[260](index=260&type=chunk)

1_0_11_ 中国能建 1_0 投资及其他業務 9 | --- | --- | --- | --- | --- | --- | |----------------|----------|----------|-------|-------|------------------------------------------------------------| | | | | | 9 | 清潔能源及環保水務 | | | | 工業製造 | | | | | | 工程建設 | � | | | | | | | | | | | | | � | | | | | | 勘測設計及諮詢 | | | | | | | 9 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | | | | | | | | 二零二零年度報告 | | | | | | ttt f | 世界能源 中國能建 -路建設主力軍 | | | | | | | 中国能源建设股份有限公司 CHINA ENERGY ENGINEERING CO.,LTD. | | ...

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Financial Performance - Total revenue for the first half of 2020 was RMB 105,597.2 million, a decrease of 4.04% compared to RMB 110,044.7 million in the same period of 2019[5]. - The net profit attributable to equity holders for the first half of 2020 was RMB 919.0 million, down 57.41% from RMB 2,157.6 million in the first half of 2019[5]. - The gross profit margin decreased to 11.78% in the first half of 2020 from 12.47% in the same period of 2019[5]. - The company’s basic earnings per share for the first half of 2020 were RMB 2.88, down 60.11% from RMB 7.22 in the same period of 2019[5]. - The profit before tax for the six months ended June 30, 2020, was RMB 3,502.7 million, a decline of 40.74% from RMB 5,911.2 million in 2019[46]. - Net profit for the same period was RMB 2,238.4 million, down 48.28% from RMB 4,327.6 million in 2019[46]. - Gross profit for the six months ended June 30, 2020, was RMB 12,445.0 million, a decrease of 9.21% from RMB 13,707.4 million in 2019, primarily due to revenue declines across various segments[47]. - The company reported a significant increase in contract assets, which rose to RMB 48,451,003 thousand from RMB 41,151,749 thousand, marking an increase of about 17.5%[131]. Revenue Breakdown - The company reported a decrease in revenue from clean energy and environmental water services by 21.18%, from RMB 8,332.6 million in 2019 to RMB 6,568.1 million in 2020[5]. - The engineering construction segment generated RMB 81,022.0 million in revenue, a slight decrease of 0.62% from RMB 81,526.9 million in the previous year[5]. - The operating revenue for the engineering construction segment was RMB 81.02 billion, showing a slight decline of 0.62% year-on-year, but a second-quarter increase of 12.34%[18]. - The clean energy segment generated RMB 599 million, down 7.64% year-on-year, while the environmental business saw a significant decline of 25.09% to RMB 5.190 billion[29]. - The industrial manufacturing segment's operating revenue was RMB 10.02 billion, down 7.23% year-on-year, with a second-quarter growth of 1.91%[22]. - The cement production business generated RMB 3.58 billion in revenue, a decline of 27.43% year-on-year[23]. - The investment and other businesses reported revenue of RMB 7.659 billion, a decrease of 7.19% year-on-year, but Q2 showed a recovery with a growth of 6.37%[33]. Assets and Liabilities - The company's total assets increased by 3.44% to RMB 436,173.7 million as of June 30, 2020, compared to RMB 421,670.3 million at the end of 2019[6]. - Current liabilities rose by 5.47% to RMB 237,284.2 million as of June 30, 2020, compared to RMB 224,982.0 million at the end of 2019[6]. - Non-current assets increased by 6.58% to RMB 167,329.8 million as of June 30, 2020, compared to RMB 156,993.3 million at the end of 2019[6]. - The total equity increased by 2.22% to RMB 115,810.4 million as of June 30, 2020, compared to RMB 113,290.4 million at the end of 2019[6]. - As of June 30, 2020, the company's total liabilities amounted to RMB 320,363.3 million, with a debt-to-asset ratio of 73.45%, an increase of 0.32 percentage points from the end of the previous year[68]. - The company's total debt increased by RMB 13,003.4 million from December 31, 2019, primarily due to operational funding needs and asset acquisitions[76]. Contracts and New Business - In the first half of 2020, the company signed new contracts worth RMB 305.49 billion, representing a year-on-year increase of 10.61%[10]. - The new signed contracts for engineering construction business amounted to RMB 292.85 billion, representing a year-on-year growth of 11.10%, with a second-quarter growth of 19.54%[17]. - The surveying, design, and consulting business segment achieved new contract value of RMB 6.22 billion, a year-on-year increase of 3.48%, with Q2 showing a growth of 12.62%[11]. - The company has secured significant contracts in both domestic and international projects, including a 2x1,000 MW thermal power expansion project in Shaanxi and a 151.54 MW gas turbine power plant project in Myanmar[21]. Market Conditions and Challenges - The company faces external risks and challenges due to the ongoing global pandemic, impacting economic recovery in China[9]. - The global GDP is projected to contract by 4.9% in 2020 due to the impact of the COVID-19 pandemic[103]. - Foreign direct investment worldwide is forecasted to drop by 40% in 2020 as per the United Nations report[103]. - The company anticipates increased foreign currency revenues and expenses as it expands overseas, which may expose it to exchange rate fluctuations[90]. Operational Efficiency - Selling expenses decreased by 34.89% to RMB 805.1 million from RMB 1,236.5 million in 2019, mainly due to operational disruptions caused by the pandemic[48]. - Financial expenses decreased by 10.21% to RMB 1,696.2 million from RMB 1,889.1 million in 2019, attributed to lower borrowing rates[50]. - The company plans to maintain a prudent financial policy while improving equity and asset returns through various funding sources, including internal financing and external financing at reasonable market rates[66]. Employee and Management - The company has a total employee count of 116,996, including 35,928 management personnel and 39,013 professional technical personnel[92]. - In the first half of 2020, the company completed training for 211,800 employees, including 154,800 in job training and 7,200 in continuing education[92]. - The company implemented a salary management system that links employee compensation to performance, with a total payment of RMB 51.43 million for 87.16 million restricted stocks returned due to unmet performance conditions[94]. Future Outlook - The company plans to enhance policy environment analysis and optimize international market layout to seize recovery opportunities[103]. - The company aims to maintain stable operations and create new development opportunities in the second half of 2020[104]. - The company is focused on high-quality development of international business in line with the Belt and Road Initiative[103].