Financial Performance - The company's basic earnings per share (EPS) for the first half of 2022 was CNY 0.09, a decrease of 43.75% compared to CNY 0.16 in the same period last year[18]. - The diluted EPS also stood at CNY 0.09, reflecting the same 43.75% decline year-over-year[18]. - The net profit attributable to shareholders, excluding non-recurring gains and losses, decreased by 27.51% compared to the previous year, primarily due to increased losses from equity-accounted joint ventures[19]. - The weighted average return on equity (ROE) was 4.12%, down from 7.21% in the same period last year, representing a decrease of 3.09 percentage points[18]. - The return on equity, excluding non-recurring gains and losses, was 3.99%, also down from 7.06% year-over-year, indicating a decline of 3.07 percentage points[18]. - The company reported a significant increase in credit impairment losses, which were reversed in the previous year, impacting the current financial performance[19]. - The company's operating revenue for the first half of the year was approximately RMB 1.206 billion, representing a 7.91% increase compared to the same period last year[21]. - Net profit attributable to shareholders decreased by 26.67% to approximately RMB 40.29 million, down from RMB 54.94 million in the previous year[21]. - The net profit after deducting non-recurring gains and losses was approximately RMB 39.02 million, a decrease of 27.51% year-on-year[21]. - The net cash flow from operating activities was negative RMB 247.57 million, a significant decline compared to a positive RMB 6.53 million in the same period last year[21]. Assets and Liabilities - Total assets increased by 10.14% to approximately RMB 4.008 billion compared to the end of the previous year[21]. - The net assets attributable to shareholders rose by 2.92% to approximately RMB 982.92 million[21]. - The company's total liabilities include long-term loans of CNY 627.27 million, an increase of 84.99% compared to CNY 339.09 million in the previous period[40]. - The company's foreign assets amount to CNY 16.40 million, representing 0.41% of total assets[41]. - The company's total liabilities increased, with cash used for debt repayment reaching ¥292,288,332.50 in the first half of 2022, compared to ¥197,219,856.28 in the same period of 2021[144]. Market Position and Strategy - The company has a strong competitive advantage with a special-grade qualification for highway engineering construction, one of only 204 companies nationwide[27]. - The company is strategically located near Beijing and the Xiong'an New Area, benefiting from increased infrastructure investment in Hebei Province, which has a compound annual growth rate of 10.76% from 2015 to 2021[28]. - The company is actively expanding its market presence beyond Hebei, covering over ten provinces and cities across China[24]. - The company aims to expand its business in the "Belt and Road" international market and key domestic regions, including the Xiong'an New Area[34]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[134]. Environmental and Social Responsibility - The company has established an environmental protection management system compliant with GB/T24001-2016/ISO14001:2015 standards, covering various construction projects[69]. - The company has implemented measures to control dust, noise, and wastewater during construction to minimize environmental impact[70]. - The company has set up an environmental protection leadership group in each project department, with project managers responsible for environmental management[71]. - The company actively participated in rural revitalization by winning a PPP project in Anguo City in June 2022, contributing to new revenue growth[72]. Shareholder Commitments and Governance - The company has committed to not transferring or managing its shares for 36 months post-IPO, ensuring stability in shareholding[75]. - The company has established a system for regular environmental inspections and reporting to address any issues promptly during construction[71]. - The company will ensure that any share reduction after the lock-up period will not be below the IPO price[79]. - The company emphasizes strict adherence to regulations regarding shareholding and reduction plans to protect investor interests[78]. - The company has committed to a lock-up period of 12 months post-IPO, during which shareholders will not transfer or manage their shares[81]. Legal and Compliance Issues - The company is involved in five significant ongoing lawsuits with amounts exceeding RMB 1 million, including a construction contract dispute with the Yixian Transportation Bureau, claiming RMB 25.14 million for material price differences and RMB 4.69 million for work stoppage losses[98]. - The company has not reported any violations regarding guarantees during the reporting period[97]. - The company has outlined measures to address any non-compliance with fund occupation, including potential complaints to regulatory bodies[94]. Financial Reporting and Accounting Practices - The financial report for the first half of 2022 has not been audited, but the management has confirmed its accuracy and completeness[6]. - The company's financial reports are approved by the board of directors, ensuring compliance with regulatory requirements[164]. - The company has established important accounting policies and estimates in line with the enterprise accounting standards[169]. - The company’s financial reporting includes a comprehensive assessment of its accounting practices, ensuring transparency and adherence to relevant regulations[175].

Financial Performance - The company's operating revenue for Q1 2022 was CNY 209,597,627.91, representing a decrease of 1.75% compared to the same period last year[5] - The net profit attributable to shareholders was a loss of CNY 35,623,779.70, with a basic and diluted earnings per share of -0.08 CNY[5] - The net profit for Q1 2022 was -35,638,731.14 CNY, compared to -18,301,520.80 CNY in Q1 2021, representing an increase in net loss of approximately 94.5% year-over-year[21] - Operating profit for Q1 2022 was -37,778,851.54 CNY, a decline from -20,006,484.31 CNY in the same period last year, indicating a worsening operational performance[21] - The company's total comprehensive loss for Q1 2022 was -35,638,731.14 CNY, compared to -18,301,520.80 CNY in Q1 2021, highlighting a significant increase in overall losses[22] - The company's total revenue for Q1 2022 was CNY 137,815,520.73, a decrease of 27.2% compared to CNY 189,221,234.40 in Q1 2021[30] - The operating profit for Q1 2022 was a loss of CNY 41,289,109.34, compared to a loss of CNY 21,162,261.42 in Q1 2021[31] - The net profit for Q1 2022 was a loss of CNY 38,648,279.00, worsening from a loss of CNY 19,182,897.25 in Q1 2021[31] Cash Flow and Liquidity - The net cash flow from operating activities was -CNY 274,344,169.17, indicating significant cash outflows during the quarter[5] - Cash flow from operating activities showed a net outflow of -274,344,169.17 CNY in Q1 2022, compared to -165,898,246.31 CNY in Q1 2021, reflecting a significant increase in cash burn[24] - The cash flow from operating activities for Q1 2022 was a net outflow of CNY 219,754,304.38, compared to a net outflow of CNY 178,498,992.26 in Q1 2021[32] - The company reported a cash and cash equivalents balance of 377,356,435.30 CNY at the end of Q1 2022, down from 583,643,924.78 CNY at the beginning of the period[26] - The company's cash and cash equivalents decreased significantly, with cash inflow from operating activities dropping to CNY 336,907,276.94 in Q1 2022 from CNY 571,132,810.13 in Q1 2021[32] - The net increase in cash and cash equivalents was -190,780,196.48, indicating a decline compared to -76,092,698.65 previously[34] Assets and Liabilities - Total assets at the end of the reporting period were CNY 3,342,014,258.22, down 8.17% from the end of the previous year[6] - Current assets totaled RMB 2,300,017,430.00 as of March 31, 2022, down from RMB 2,567,101,423.11 at the end of 2021, a decline of 10.4%[16] - Non-current assets amounted to RMB 1,041,996,828.22 as of March 31, 2022, compared to RMB 1,072,306,969.46 at the end of 2021, a decrease of 2.8%[16] - Total liabilities were RMB 2,400,892,005.94 as of March 31, 2022, down from RMB 2,661,720,040.37, a reduction of 9.8%[16] - The total assets decreased to CNY 2,878,035,651.11 in Q1 2022 from CNY 3,180,595,081.43 in Q1 2021, reflecting a decline of 9.5%[29] - The total liabilities decreased to CNY 2,039,543,632.89 in Q1 2022 from CNY 2,302,527,415.43 in Q1 2021, a reduction of 11.4%[29] Shareholder Information - The company had 57,216 common shareholders at the end of the reporting period[10] - The top two shareholders, Zhang Zhongqiang and Zhang Zhongshan, each held 22.87% of the shares, totaling 106,716,666 shares[11] Financial Expenses and Investments - The company incurred financial expenses of 11,918,855.66 CNY in Q1 2022, up from 9,127,351.42 CNY in Q1 2021, indicating rising costs associated with financing[21] - The company reported a significant increase in financial expenses, with Q1 2022 financial expenses at CNY 11,032,599.61 compared to CNY 8,804,262.66 in Q1 2021[31] - Investment activities resulted in a net cash outflow of -3,522,365.70 CNY in Q1 2022, compared to -2,287,235.54 CNY in Q1 2021, reflecting increased investment expenditures[25] - The total cash outflow from investing activities was 9,425,459.76, with a significant portion attributed to investment payments[34] Other Financial Metrics - The weighted average return on net assets was -3.80% for the reporting period[6] - Non-recurring gains and losses totaled CNY 1,184,643.36, primarily due to government subsidies received[8] - The company reported an increase in credit impairment losses, contributing to the overall loss for the period[9] - The impact of exchange rate changes on cash and cash equivalents was -21,794.79, contrasting with a positive impact of 6,227.95 in the previous period[34] - The company is focusing on improving operational efficiency and exploring new market opportunities to enhance future performance[30]

Financial Performance - The company achieved operating revenue of RMB 2,368,160,682.09, a decrease of 1.24% compared to the previous year[33]. - The net profit attributable to shareholders decreased by 13.05% to RMB 83,761,664.82[33]. - The total assets increased by 8.73% to RMB 3,639,408,392.57[33]. - Basic earnings per share decreased by 14.29% to RMB 0.24[23]. - The weighted average return on equity decreased by 3.11 percentage points to 10.85%[23]. - The cash flow from operating activities showed a significant decline, with a net outflow of RMB 22,738,710.98[22]. - The company reported a net profit margin of 818.49 million, indicating a stable financial performance[105]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion in 2021, representing a growth of 15% year-over-year[110]. Dividend Policy - The company plans to distribute a cash dividend of RMB 0.30 per 10 shares, totaling RMB 13,999,800.00 (including tax) based on a total share capital of 466,660,000 shares[7]. - The net profit attributable to shareholders for 2021 was RMB 83,761,664.82, with a cash dividend payout ratio of 16.71%[7]. - The company's cash dividend policy stipulates a minimum of 80% payout for mature companies without major capital expenditures, 40% for those with significant expenditures, and 20% for growth-stage companies with major expenditures[128]. - The company's cash dividend ratio is below 30% due to its current growth stage, significant capital expenditure needs, and the necessity to retain funds for operational support[131]. - The company's board approved the 2021 profit distribution plan with unanimous support, reflecting a commitment to shareholder returns while balancing growth needs[128]. Risk Management - The company has not reported any significant risk events during the reporting period[10]. - The company has outlined potential risks in its future development discussions within the report[10]. - The company faces risks related to project delays due to complex construction processes and external factors such as land acquisition and payment issues[83]. - The company is exposed to intensified market competition, particularly from large state-owned enterprises entering the Hebei construction market[85]. - The company is at risk of rising raw material prices affecting construction costs, although some contracts include price adjustment clauses to mitigate this risk[87]. - The company has developed a major risk early warning mechanism and emergency response plan to address potential significant risks or unexpected events[137]. Market Expansion and Strategy - The company plans to expand its market presence in the "Belt and Road" initiative and key domestic regions[33]. - The company aims to optimize its business structure and enhance its integrated service capabilities in urban construction[33]. - The company is strategically located near the Xiong'an New Area, benefiting from national strategies like the coordinated development of the Beijing-Tianjin-Hebei region, which drives infrastructure investment[42]. - The company aims to maintain its competitive edge through continuous improvement in its service offerings[105]. - The company is focused on technological innovation and aims to introduce new technologies and solutions to enhance construction quality and efficiency[76]. - The company is expanding its market presence, targeting new regions with a planned investment of 50 million in marketing and infrastructure[110]. Governance and Compliance - The board of directors and supervisory board members have confirmed the authenticity and completeness of the annual report[4]. - The company has established specialized committees within the board, including a strategic planning committee and an audit committee, to ensure effective governance[95]. - The company has implemented various governance rules to maintain the independence of the board, supervisory board, and management[97]. - The company has not faced any penalties from securities regulatory agencies in the past three years[115]. - The company has established strict internal control measures to prevent any improper lending behaviors, including "transfer lending" practices[166]. Research and Development - The company holds 8 invention patents and 23 utility model patents as of December 31, 2021, reflecting its strong R&D capabilities[44]. - The company plans to increase R&D investment in infrastructure construction, focusing on road and municipal projects to enhance technical capabilities[77]. - The company is investing $50 million in R&D for new technologies aimed at enhancing user experience[107]. - Research and development expenditures increased by 20%, totaling 100 million, to support new technology initiatives[110]. Employee Management - The company has a total of 815 employees, with 723 in the parent company and 92 in major subsidiaries[124]. - The professional composition includes 497 technical personnel, 228 management personnel, and 61 financial audit personnel[124]. - The company provided training for 2,068 employees during the reporting period, ensuring knowledge accumulation and skill enhancement across various levels and professions[126]. - The company has established a salary management system based on positions, emphasizing performance and value orientation[125]. Financial Management - The company has established a strict accounting system in compliance with the Accounting Law and relevant accounting standards, ensuring the accuracy and completeness of financial reports[136]. - The company has implemented a performance evaluation system, with regular assessments of all employees' performance based on a scientifically set indicator system, influencing salary and promotion decisions[136]. - The company’s total remuneration for senior management was 1.8435 million yuan during the reporting period[114]. - The company paid a total of 8.1849 million yuan in remuneration to directors, supervisors, and senior management during the reporting period[114]. Legal and Regulatory Matters - The company is involved in a legal arbitration case regarding a construction contract dispute, claiming a total of CNY 2,722.21 million, with a provision for impairment of CNY 859.80 million on related contract assets[176]. - The company has not reported any major litigation or arbitration matters other than the ongoing case mentioned[176]. - The company has not reported any delisting risks or bankruptcy restructuring matters during the reporting period[176]. Environmental and Social Responsibility - The company has a comprehensive environmental management system certified to GB/T24001-2016/ISO14001:2015 standards, focusing on controlling dust, noise, and wastewater emissions during construction[140]. - The company actively participated in pandemic prevention efforts by donating materials to local projects and universities[146]. - The company contributed to educational initiatives by donating to the Hebei University public welfare fund and providing scholarships for college entrance examination candidates[146]. - The company engaged in poverty alleviation by supporting impoverished areas such as Ningwu County in Shanxi Province[146].