中国天保集团(01427) - 2024 - 中期业绩

Financial Highlights This section presents a concise overview of the Group's key financial performance indicators and results for the interim period Overview of Financial Highlights For the six months ended June 30, 2024, China Tianbao Group Development Co., Ltd. recorded total revenue of RMB 821,251 thousand, a decrease from the prior period, turning from profit to loss with a loss per share of RMB 0.036, and no interim dividend was declared Unaudited Interim Results Summary for the Six Months Ended June 30, 2024 | Metric | June 30, 2024 (RMB thousands) | June 30, 2023 (RMB thousands) | | :--- | :--- | :--- | | Revenue - Construction Contracting Business | 706,952 | 732,219 | | Revenue - Property Development and Other Businesses | 114,299 | 212,044 | | Gross Profit | 35,050 | 90,326 | | Basic (Loss)/Profit | (27,784) | 25,787 | | Reported (Loss)/Profit | (28,848) | 3,100 | | (Loss)/Profit Per Share (RMB) | (0.036) | 0.004 | | Interim Dividend | None | None | - Basic (loss)/profit is derived from reported (loss)/profit after deducting fair value loss on investment properties, fair value gain/(loss) on financial assets at fair value through profit or loss, and realized loss on financial assets at fair value through profit or loss, and is not prepared in accordance with IFRS[1] - Reported (loss)/profit is prepared in accordance with IFRS[1] Interim Results This section presents the Group's interim condensed consolidated financial statements, including statements of profit or loss, comprehensive income, and financial position Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2024, the Group's total revenue decreased by 13.0% to RMB 821,251 thousand, gross profit significantly fell by 61.2% to RMB 35,050 thousand, resulting in a net loss of RMB 28,848 thousand compared to a profit of RMB 3,100 thousand in the prior period Interim Condensed Consolidated Statement of Profit or Loss (For the Six Months Ended June 30) | Metric | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 821,251 | 944,263 | | Cost of Sales | (786,201) | (853,937) | | Gross Profit | 35,050 | 90,326 | | Other Income and Gains | 9,414 | (8,219) | | Selling and Distribution Expenses | (3) | (149) | | Administrative Expenses | (30,144) | (27,769) | | Fair Value Loss on Investment Properties | – | (3,000) | | Fair Value Gain/(Loss) on Financial Assets at Fair Value Through Profit or Loss | 1,376 | (9,484) | | Other Expenses | (2,363) | (651) | | Finance Costs | (37,968) | (29,398) | | (Loss)/Profit Before Tax | (24,638) | 11,656 | | Income Tax Expense | (4,210) | (8,556) | | (Loss)/Profit for the Period | (28,848) | 3,100 | | (Loss)/Profit Attributable to Owners of the Parent | (28,848) | 3,100 | | Basic and Diluted (Loss)/Profit Per Share (RMB) | (0.036) | 0.004 | Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2024, the Group's total comprehensive income turned into a loss of RMB 29,065 thousand, a significant deterioration from the prior period's profit of RMB 91 thousand, primarily due to the period's loss and exchange differences Interim Condensed Consolidated Statement of Comprehensive Income (For the Six Months Ended June 30) | Metric | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | (Loss)/Profit for the Period | (28,848) | 3,100 | | Other Comprehensive Income: Exchange Differences on Translation of Foreign Operations | (217) | 219 | | Equity Investments Designated at Fair Value Through Other Comprehensive Income: Fair Value Changes | – | (3,228) | | Other Comprehensive Income for the Period, Net of Tax | (217) | (3,009) | | Total Comprehensive Income for the Period | (29,065) | 91 | | Attributable to Owners of the Parent | (29,065) | 91 | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2024, the Group's total assets were RMB 6,309,033 thousand, a slight increase from December 31, 2023, with total current liabilities of RMB 4,790,514 thousand resulting in a net current liability deficit of RMB 197,875 thousand and net assets of RMB 984,906 thousand Interim Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | | | | Property, Plant and Equipment | 1,246,980 | 1,236,389 | | Investment Properties | 239,700 | 239,700 | | Total Non-current Assets | 1,716,394 | 1,710,921 | | Current Assets | | | | Trade Receivables | 326,662 | 403,508 | | Contract Assets | 1,553,766 | 1,296,394 | | Properties Under Development | 931,135 | 898,741 | | Completed Properties Held for Sale | 947,024 | 1,045,934 | | Cash and Cash Equivalents | 361,546 | 187,924 | | Total Current Assets | 4,592,639 | 4,358,208 | | Current Liabilities | | | | Trade Payables | 1,530,232 | 1,828,066 | | Other Payables and Accruals | 1,689,857 | 1,778,726 | | Interest-bearing Bank and Other Borrowings | 894,288 | 540,562 | | Tax Payable | 675,403 | 375,071 | | Total Current Liabilities | 4,790,514 | 4,523,231 | | Net Current Liabilities | (197,875) | (165,023) | | Total Assets Less Current Liabilities | 1,518,519 | 1,545,898 | | Non-current Liabilities | | | | Interest-bearing Bank and Other Borrowings | 507,000 | 505,000 | | Total Non-current Liabilities | 533,613 | 531,927 | | Net Assets | 984,906 | 1,013,971 | | Total Equity | 984,906 | 1,013,971 | Notes to the Interim Condensed Consolidated Financial Statements This section provides detailed notes to the interim condensed consolidated financial statements, covering accounting policies, segment information, revenue, and other financial disclosures Company and Group Information The Company is an exempted limited company incorporated in the Cayman Islands, primarily engaged in construction contracting and property development, with its ultimate holding company being Jixiang International Industrial Limited - The Group is principally engaged in construction contracting and property development and other businesses[7] - The Company's ultimate holding company is Jixiang International Industrial Limited, incorporated in the British Virgin Islands[7] Basis of Preparation and Changes in Accounting Policies The interim condensed consolidated financial information is prepared in accordance with IAS 34 and should be read in conjunction with the 2023 annual consolidated financial statements, with no significant impact from newly adopted IFRS amendments - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 Interim Financial Reporting[8] - The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2023[9] - The adoption of amendments to IFRS has no significant financial impact on the Group's financial position and performance[10] Operating Segment Information The Group operates in two reportable segments: construction contracting and property development, with construction contracting revenue of RMB 706,952 thousand and property development revenue of RMB 114,299 thousand for the six months ended June 30, 2024, where the construction segment recorded a profit and the property development segment a loss - The Group has two reportable operating segments: construction contracting and property development and other businesses[11] Operating Segment Revenue and Results (For the Six Months Ended June 30, 2024) | Metric | Construction Contracting (RMB thousands) | Property Development and Other (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | | Sales to External Customers | 706,952 | 114,299 | 821,251 | | Inter-segment Sales | 56,301 | – | 56,301 | | Total Revenue | 763,253 | 114,299 | 877,552 | | Segment Results | 10,603 | (37,929) | (27,326) | | Loss Before Tax | | | (24,638) | Operating Segment Assets and Liabilities (As of June 30, 2024) | Metric | Construction Contracting (RMB thousands) | Property Development and Other (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | | Segment Assets | 5,102,735 | 10,928,135 | 16,030,870 | | Total Assets | | | 6,309,033 | | Segment Liabilities | 3,894,959 | 7,574,703 | 11,469,662 | | Total Liabilities | | | 5,324,127 | Revenue For the six months ended June 30, 2024, total revenue was RMB 821,251 thousand, a decrease from the prior period, with customer contract revenue of RMB 815,063 thousand primarily from construction contracting services (RMB 706,952 thousand) and property sales (RMB 108,111 thousand) in Mainland China Revenue Analysis (For the Six Months Ended June 30) | Revenue Source | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Revenue from Contracts with Customers | 815,063 | 936,043 | | Gross Rental Income from Operating Leases | 6,188 | 8,220 | | Total Revenue | 821,251 | 944,263 | Revenue from Contracts with Customers by Type of Goods or Services and Geographical Location (For the Six Months Ended June 30, 2024) | Type/Region | Construction Contracting (RMB thousands) | Property Development and Other (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | | Construction Contracting | 706,952 | – | 706,952 | | Property Development | – | 108,111 | 108,111 | | Total Revenue from Contracts with Customers | 706,952 | 108,111 | 815,063 | | Geographical Market: Mainland China | 706,952 | 108,111 | 815,063 | | Timing of Revenue Recognition: At a Point in Time | – | 108,111 | 108,111 | | Timing of Revenue Recognition: Over Time | 706,952 | – | 706,952 | Loss/Profit Before Tax For the six months ended June 30, 2024, the Group recorded a loss before tax of RMB 24,638 thousand, compared to a profit of RMB 11,656 thousand in the prior period, with key costs including RMB 664,471 thousand for construction contracting and RMB 121,730 thousand for property development, and increased employee benefit expenses Composition of Loss/Profit Before Tax (For the Six Months Ended June 30) | Item | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Cost of Construction Contracting | 664,471 | 683,396 | | Cost of Property Development and Other Businesses | 121,730 | 170,541 | | Total Employee Benefit Expenses | 13,092 | 10,369 | Income Tax For the six months ended June 30, 2024, income tax expense decreased to RMB 4,210 thousand from RMB 8,556 thousand in the prior period, comprising current income tax, China Land Appreciation Tax, and deferred income tax, with Mainland China subsidiaries subject to a 25% corporate income tax rate and Land Appreciation Tax levied at progressive rates - Subsidiaries operating in Mainland China are subject to China Corporate Income Tax at a rate of 25%[21] - Land Appreciation Tax is levied at progressive rates ranging from 30% to 60% on the appreciation of land value[22] Composition of Income Tax Expense (For the Six Months Ended June 30) | Tax Type | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Current Income Tax | 1,133 | 2,550 | | China Land Appreciation Tax | 2,405 | 4,463 | | Deferred Income Tax | 672 | 1,543 | | Total Income Tax Expense | 4,210 | 8,556 | Dividends The Board of Directors has resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the prior period - The Board of Directors has resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2024 (2023: None)[24] Loss/Profit Per Share Attributable to Ordinary Equity Holders of the Parent For the six months ended June 30, 2024, basic and diluted loss per share was RMB 0.036, compared to a profit of RMB 0.004 in the prior period, primarily due to the loss incurred during the period Loss/Profit Per Share Calculation (For the Six Months Ended June 30) | Metric | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | (Loss)/Profit Attributable to Ordinary Equity Holders of the Parent | (28,848) | 3,100 | | Weighted Average Number of Ordinary Shares in Issue (thousands) | 809,456 | 809,456 | | Basic and Diluted (Loss)/Profit Per Share (RMB) | (0.036) | 0.004 | - The Group had no potential dilutive ordinary shares for the six months ended June 30, 2024 and 2023[25] Property, Plant and Equipment As of June 30, 2024, the carrying amount of property, plant and equipment was RMB 1,246,980 thousand, a slight increase from the beginning of the year, with construction in progress increasing to RMB 931,135 thousand and completed properties held for sale decreasing to RMB 947,024 thousand Changes in Property, Plant and Equipment (As of June 30) | Item | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Carrying Amount of Property, Plant and Equipment at End of Period | 1,246,980 | 1,236,389 | | Carrying Amount of Properties Under Development at End of Period | 931,135 | 898,741 | | Carrying Amount of Completed Properties Held for Sale at End of Period | 947,024 | 1,045,934 | Trade Receivables As of June 30, 2024, total trade receivables were RMB 326,662 thousand, a decrease from RMB 403,508 thousand as of December 31, 2023, primarily comprising construction contracting receivables with credit terms typically ranging from three to six months Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 211,906 | 268,147 | | 1 to 2 years | 51,975 | 56,324 | | 2 to 3 years | 32,105 | 56,145 | | Over 3 years | 30,676 | 22,892 | | Total | 326,662 | 403,508 | - Trade receivables primarily refer to receivables from construction contracting[28] - The Group grants a credit period of three to six months, except for retention receivables[28] Trade Payables As of June 30, 2024, total trade payables decreased to RMB 1,530,232 thousand from RMB 1,828,066 thousand as of December 31, 2023, which are non-interest bearing and generally settled based on project progress Ageing Analysis of Trade Payables (As of June 30) | Ageing | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Within 6 months | 329,711 | 600,981 | | 6 months to 1 year | 80,129 | 234,926 | | 1 to 2 years | 275,781 | 323,458 | | 2 to 3 years | 358,234 | 88,369 | | Over 3 years | 486,377 | 580,332 | | Total | 1,530,232 | 1,828,066 | - Trade payables are non-interest bearing and generally settled based on project progress[29] Interest-bearing Bank and Other Borrowings As of June 30, 2024, total interest-bearing bank and other borrowings increased to RMB 1,401,288 thousand from RMB 1,045,562 thousand as of December 31, 2023, with RMB 894,288 thousand due within one year or on demand, and some borrowings secured by investment properties, properties under development, property, plant and equipment, and right-of-use assets Maturity Profile of Interest-bearing Bank and Other Borrowings (As of June 30) | Type | Effective Interest Rate (%) | Maturity Date | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Current | | | | | | Secured Other Loans | 12.0 | Overdue | 246,694 | 274,390 | | Unsecured Other Loans | 12.0 | Overdue | 35,594 | 35,172 | | Current Portion of Secured Long-term Bank Borrowings | 5.25-8.70 | 2024-2025 | 612,000 | 231,000 | | Non-current | | | | | | Secured Bank Borrowings | 3.35-6.65 | 2026-2041 | 507,000 | 505,000 | | Total | | | 1,401,288 | 1,045,562 | Analysis of Bank and Other Borrowings Repayable (As of June 30) | Repayment Period | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Within one year or on demand | 894,288 | 540,562 | | In the second year | 74,000 | 503,000 | | In the third to fifth years | 38,000 | 2,000 | | Over five years | 395,000 | – | | Total | 1,401,288 | 1,045,562 | Total Carrying Amount of Pledged Assets (As of June 30) | Pledged Assets | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Investment Properties | 239,700 | 239,700 | | Properties Under Development | 281,126 | 135,981 | | Property, Plant and Equipment | 1,254,448 | 486,805 | | Right-of-use Assets | 7,777 | 7,891 | Share Capital As of June 30, 2024, the Company's authorized share capital was 2,000,000,000 ordinary shares of HK$0.01 each, with 809,456,000 shares issued and fully paid, valued at RMB 7,281 thousand, remaining unchanged from December 31, 2023 Share Capital Structure (As of June 30) | Type of Share Capital | June 30, 2024 (HK$ thousands/RMB thousands) | December 31, 2023 (HK$ thousands/RMB thousands) | | :--- | :--- | :--- | | Authorized Share Capital (2,000,000,000 shares of HK$0.01 each) | 20,000 (HK$ thousands) | 20,000 (HK$ thousands) | | Issued and Fully Paid Share Capital (809,456,000 shares of HK$0.01 each) | 7,281 (RMB thousands) | 7,281 (RMB thousands) | Contingent Liabilities As of June 30, 2024, the Group provided mortgage financing guarantees of approximately RMB 1,738.0 million for property purchasers, which the directors consider immaterial in fair value and adequately covered by the net realizable value of the related properties, thus no provision was made - The Group has provided guarantees for mortgage financing of approximately RMB 1,738.0 million (December 31, 2023: RMB 1,789.4 million) for certain purchasers of the Group's properties[33] - The guarantee period commences from the date of grant of the relevant mortgage loan until the issuance of the property ownership certificate to the purchaser, generally effective for one to two years after the purchaser obtains the relevant property[33] - The Directors consider the fair value of the guarantees to be immaterial, and the net realizable value of the relevant properties would cover the repayment of outstanding mortgage principal, accrued interest, and penalties in case of payment default, thus no provision has been made[33] Commitments As of June 30, 2024, the Group's contracted but unprovided capital commitments, primarily for construction contracting projects, amounted to RMB 225,553 thousand, a decrease from RMB 261,912 thousand as of December 31, 2023 Capital Commitments (As of June 30) | Item | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Contracted but not provided for: Construction Contracting | 225,553 | 261,912 | Related Party Transactions For the six months ended June 30, 2024, the Group engaged in various related party transactions including interest expenses, raw material purchases, property management fees, and rental/interest income, with outstanding balances including advances to the ultimate holding company and other related parties, and interest-bearing loans from the ultimate holding company Related Party Transactions (For the Six Months Ended June 30) | Type of Transaction | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Interest expense on other borrowings | 2,126 | 2,077 | | Purchase of raw materials from a company | 784 | 180 | | Repayment of advances from related parties | – | 30,000 | | Payment of property management fees to related parties | 903 | 941 | | Other rental income | 850 | 850 | | Other interest income | 1,076 | 1,092 | Outstanding Balances with Related Parties (As of June 30) | Type of Balance | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Advances to ultimate holding company | 1,640 | 1,784 | | Advances to related parties | 5,574 | 5,574 | | Amounts due to other related parties | 7,786 | 7,786 | | Loans from ultimate holding company | 35,594 | 35,172 | - Total remuneration for key management personnel was RMB 4,437 thousand, including short-term employee benefits and contributions to a pension scheme[38] Approval of Financial Statements The interim condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 21, 2024 - The interim condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 21, 2024[39] Management Discussion and Analysis This section offers a comprehensive review of the Group's business operations, market conditions, and financial performance for the reporting period, along with future outlook Business Review The Group primarily engages in construction contracting and property development, with total revenue decreasing by 13.0% to RMB 821 million in H1 2024, significant declines in gross profit and gross margin, a basic loss of RMB 28 million, and an increased net gearing ratio of 93.3% - The Group is a construction company and property developer located in Zhuozhou City, Hebei Province, China, with business operations covering multiple industrial areas including construction engineering, planning and design, property development, property sales, investment, and operation[40] - During the reporting period, the Group's revenue was approximately RMB 821 million, a decrease of approximately RMB 123 million (13.0%) compared to the same period in 2023[40] - The Group's gross profit and gross profit margin for the reporting period were approximately RMB 35 million and 4.3%, respectively[40] - The Group's basic loss for the reporting period was approximately RMB 28 million, compared to a basic profit of approximately RMB 26 million in the same period of 2023[40] - As of June 30, 2024, the Group's net gearing ratio was approximately 93.3% (December 31, 2023: 60.1%)[40] Review of H1 2024 In H1 2024, China's economy remained stable with steady growth in construction fixed asset investment but a decline in housing construction area, while the property market continued to adjust with decreases in investment, sales area, and sales value, and the Group's Jingbei Health City project fully resumed work amid strong policy support for the eldercare industry - In H1 2024, the national economy operated steadily with progress, stable production growth, and continuous demand recovery[42] - The total output value of the construction industry was RMB 13,831.2 billion, a 4.8% year-on-year increase; the national housing construction area was 11.04 billion square meters, a 6.2% year-on-year decrease[43] - National real estate development investment was RMB 5,252.9 billion, a 10.1% year-on-year decrease; sales area of new commercial housing was 479.16 million square meters, a 19.0% year-on-year decrease; and commercial housing sales value was RMB 4,713.3 billion, a 25.0% decrease[44] - The eldercare industry is identified as a potential industry in the silver economy, with its scale projected to grow to RMB 30 trillion by 2035; the Group's Jingbei Health City project has fully resumed work and production, with plans to commence operations in October this year[45] Outlook for H2 2024 H2 2024 is expected to see a rebound in China's economy driven by policy stimulus, with consumption recovery, potential infrastructure investment growth, and a slight narrowing of property development investment decline, while the construction industry faces intensified competition and the eldercare sector offers broad prospects due to strong demand and policy support - Looking ahead to H2, signals for expanding domestic demand have been released, and consumption may recover; infrastructure investment growth is expected to rebound, and the decline in real estate development investment will slightly narrow[47] - The construction industry faces significant growth pressure, with further increases in industry concentration, and may maintain a medium-low speed moderate growth trend in the long term[48] - The property market still faces adjustment pressure, and the new home market may be in a bottoming-out phase[49] - The eldercare market has huge demand and broad prospects, with new smart eldercare becoming an important pillar of the future eldercare system[50] Business Review - Segments The Group's revenue is primarily from construction contracting (86.1%) and property development (13.9%), with a slight decrease in construction revenue but growth in new contract value, a significant decline in property development revenue due to reduced deliveries, and active progress in the emerging eldercare business with the Jingbei Health City project Revenue Breakdown by Business Segment (For the Six Months Ended June 30) | Segment | 2024 Revenue (RMB thousands) | % of Total Revenue | 2023 Revenue (RMB thousands) | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Construction Contracting Business | 706,952 | 86.1 | 732,219 | 77.5 | | Property Development Business | 114,299 | 13.9 | 212,044 | 22.5 | | Total | 821,251 | 100.0 | 944,263 | 100.0 | Construction Contracting Business Construction contracting is the Group's main revenue source, generating RMB 706,952 thousand in H1 2024 primarily from the Beijing-Tianjin-Hebei region, with the Group acting as a general contractor for large-scale projects and expanding its new contract value to RMB 1,172.4 million, extending beyond its traditional regional focus - The majority of the Group's construction contracting revenue is generated from the Beijing-Tianjin-Hebei region (primarily Hebei Province and Beijing)[53] Revenue Breakdown of Construction Contracting Business by Region (For the Six Months Ended June 30) | Region | 2024 Revenue (RMB thousands) | % of Total Revenue | 2023 Revenue (RMB thousands) | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Beijing-Tianjin-Hebei | 461,419 | 65.3 | 482,226 | 65.9 | | Others | 245,533 | 34.7 | 249,993 | 34.1 | | Total | 706,952 | 100.0 | 732,219 | 100.0 | - The Group undertakes construction projects as a general contractor, including building construction, foundation works, curtain wall construction, architectural decoration, and fire protection projects[54] Revenue Breakdown of Construction Contracting Business by Project Type (For the Six Months Ended June 30) | Project Type | 2024 Revenue (RMB thousands) | % of Total Revenue | 2023 Revenue (RMB thousands) | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Building Construction | 282,572 | 40.0 | 318,836 | 43.5 | | Industrial, Commercial and Infrastructure Construction | 424,380 | 60.0 | 413,383 | 56.5 | | Total | 706,952 | 100.0 | 732,219 | 100.0 | - During the reporting period, the Group undertook relatively large-scale construction contracting projects including the Tianjin University College Museum, Chongqing Yubei District Second People's Hospital, Hebei Petroleum Vocational Technology University Training Base, and Hebei Industrial Vocational Technology University Training Base[57] Value of Outstanding Contracts by Geographical Location and Project Type (As of June 30) | Category | 2024 Contract Value (RMB millions) | % of Total Contract Value | 2023 Contract Value (RMB millions) | % of Total Contract Value | | :--- | :--- | :--- | :--- | :--- | | Geographical Location | | | | | | Beijing-Tianjin-Hebei | 3,233.3 | 39.7 | 3,223.6 | 37.7 | | Others | 4,919.1 | 60.3 | 5,328.9 | 62.3 | | Total | 8,152.4 | 100.0 | 8,552.5 | 100.0 | | Project Type | | | | | | Building Construction | 2,365.4 | 29.0 | 2,769.6 | 32.4 | | Industrial, Commercial and Infrastructure Construction | 5,787.0 | 71.0 | 5,782.9 | 67.6 | | Total | 8,152.4 | 100.0 | 8,552.5 | 100.0 | Value of New Contracts by Geographical Location and Project Type (For the Six Months Ended June 30) | Category | 2024 Contract Value (RMB millions) | % of Total Contract Value | 2023 Contract Value (RMB millions) | % of Total Contract Value | | :--- | :--- | :--- | :--- | :--- | | Geographical Location | | | | | | Beijing-Tianjin-Hebei | 504.3 | 43.0 | 419.6 | 44.2 | | Others | 668.1 | 57.0 | 529.7 | 55.8 | | Total | 1,172.4 | 100.0 | 949.3 | 100.0 | | Project Type | | | | | | Building Construction | 6.5 | 0.6 | 110.0 | 11.6 | | Industrial, Commercial and Infrastructure Construction | 1,165.9 | 99.4 | 839.3 | 88.4 | | Total | 1,172.4 | 100.0 | 949.3 | 100.0 | - The regions for new contracts have expanded from being concentrated in the Beijing-Tianjin-Hebei region to include Chongqing City and Jiangxi Province[63] Property Development Business The property development business, including residential sales and investment property leasing, generated RMB 114,299 thousand in H1 2024, with residential property sales accounting for 94.6% and rental income for 5.4%, holding multiple residential and commercial projects in Zhuozhou and Zhangjiakou, and investment properties like Baoxin International Building and Tianbao Plaza Revenue Breakdown of Property Development Business (For the Six Months Ended June 30) | Business Line | Nature of Revenue | 2024 Revenue (RMB thousands) | % of Total Revenue | 2023 Revenue (RMB thousands) | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | :--- | | Property Development Sales | Sales of Residential Properties | 108,111 | 94.6 | 203,824 | 96.1 | | Commercial Property Investment and Operation | Rental Income | 6,188 | 5.4 | 8,220 | 3.9 | | Total | | 114,299 | 100.0 | 212,044 | 100.0 | - The Group's land reserves are primarily located in Zhuozhou and Zhangjiakou, areas with significant development potential[65] - Projects in the Zhuozhou area include Tianbao Green City, Tianbao Xinyuewan (Mingyang Phase I), Tianbao Smart Construction Technology Park, and Baoxin International Building[66][68][69][70] - Projects in the Zhangjiakou area include Tianbao New City, Tianbao New City - Zhangbei Zhongdu Ginza, Zhangbei County Fuxinyuan Shanty Town Renovation Project, Tianbao Edelweiss City, Tianbao Platinum Bay, Tianbao Jingxifu, and Nasutu Hotel[71][73][74][75][76][77][78] Land Reserve Gross Floor Area Breakdown (As of June 30, 2024) | Region | Completed but Unsold Saleable Gross Floor Area (sqm) | Leasable Gross Floor Area Held for Property Investment (sqm) | Planned Gross Floor Area Under Construction (sqm) | Planned Gross Floor Area for Future Development (sqm) | Total Land Reserve Gross Floor Area (sqm) | % of Total Land Reserve by Geographical Location | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhuozhou | 23,051 | 44,336 | 141,901 | 175,435 | 384,723 | 37.8 | | Zhangjiakou | 177,638 | 34,364 | 10,238 | 410,506 | 632,746 | 62.2 | | Total | 200,689 | 78,700 | 152,139 | 585,941 | 1,017,469 | 100.0 | Eldercare Business Amid China's accelerating aging population and strong government support for the silver economy, the Group is transforming Jingbei Health City into a comprehensive continuing care retirement community with a total investment of approximately RMB 2.55 billion, aiming to provide 350 medical beds and 8,500 eldercare beds, with the first phase expected to open in Q4 2024 - China's population is aging rapidly, creating a huge demand for eldercare services[82] - The General Office of the State Council issued "Opinions on Developing the Silver Economy and Enhancing the Well-being of the Elderly," proposing to promote synergy in the eldercare industry and plan the layout of high-level silver economy industrial parks[82] - The Hebei Provincial Government issued "Several Measures to Support the Development of the Eldercare Industry in Hebei Province," focusing on promoting the extension of Beijing-Tianjin eldercare projects into Hebei[83] - The Group is transforming Jingbei Health City into a comprehensive continuing care retirement community, with a total investment of approximately RMB 2.55 billion, of which approximately RMB 1.04 billion had been invested as of June 30, 2024[85] - Jingbei Health City is expected to provide 350 medical beds and 8,500 eldercare beds; the first phase is anticipated to open progressively in Q4 2024, offering 350 medical beds and 4,000 eldercare beds[85] Financial Review The Group's total revenue decreased by 13.0% to RMB 821 million in H1 2024, primarily due to reduced property deliveries and promotional policies, leading to a decline in sales cost, a significant drop in gross profit and gross margin, increased administrative and finance costs, decreased income tax expense due to lower taxable profit, and ultimately a basic loss for the period - Total revenue decreased by 13.0% from approximately RMB 944 million in the same period of 2023 to approximately RMB 821 million in the reporting period, mainly due to promotional policies in the property business and a decrease in delivered area compared to the same period in 2023[87] - Revenue from the construction contracting business remained generally stable, reaching RMB 707 million during the reporting period[88] - The total delivered area for the property development business decreased from 39,886 square meters in the same period of 2023 to 28,645 square meters in the reporting period, with revenue decreasing from approximately RMB 212 million to approximately RMB 114 million[89] - Cost of sales decreased by 8.0% from approximately RMB 854 million in the same period of 2023 to approximately RMB 786 million in the reporting period[91] - Gross profit decreased from approximately RMB 90 million in the same period of 2023 to approximately RMB 35 million in the reporting period, with the gross profit margin declining from 9.6% to approximately 4.3%[92] - Administrative expenses increased by 8.6% from approximately RMB 28 million in the same period of 2023 to approximately RMB 30 million in the reporting period[94] - Finance costs increased by 29.2% from RMB 29 million in the same period of 2023 to RMB 38 million in the reporting period[95] - Income tax expense decreased by RMB 5 million from approximately RMB 9 million in the same period of 2023 to approximately RMB 4 million in the reporting period[97] - The Group recorded a basic loss of approximately RMB 28 million during the reporting period (2023: basic profit of RMB 26 million)[98] Liquidity, Financial Resources and Capital The Group meets its liquidity needs through operating cash flow and bank loans, with total cash and cash equivalents of RMB 483 million as of June 30, 2024, and total interest-bearing borrowings increasing to RMB 1,401,288 thousand, mostly due within one year, indicating increased financial leverage with a current ratio of 0.96 and higher gearing ratios, while having no significant future investment plans or major investments - The Group has historically met its liquidity needs through cash flows generated from operations and bank loans[99] - As of June 30, 2024, the Group's total pledged deposits, cash and cash equivalents amounted to approximately RMB 483 million (December 31, 2023: approximately RMB 437 million)[100] - As of the date of this announcement, the Group has no significant future investment plans and holds no significant investments[101][102] Maturity Profile of Interest-bearing Bank and Other Borrowings (As of June 30) | Repayment Period | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Within one year or on demand | 894,288 | 540,562 | | In the second year | 74,000 | 503,000 | | In the third to fifth years | 38,000 | 2,000 | | Over five years | 395,000 | – | | Total | 1,401,288 | 1,045,562 | Key Financial Ratios (As of June 30) | Financial Ratio | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Current Ratio (times) | 0.96 | 0.96 | | Gearing Ratio (%) | 142.3 | 103.1 | | Net Gearing Ratio (%) | 93.3 | 60.1 | - As of June 30, 2024, the Group's contracted but unprovided commitments for capital expenditure amounted to approximately RMB 226 million (December 31, 2023: approximately RMB 262 million)[106] - As a lessor, the Group's total future minimum lease receivables under non-cancellable operating leases entered into with its tenants amounted to RMB 121,360 thousand at the end of the reporting period[107] - The Group has provided guarantees for mortgage financing of approximately RMB 1,738.0 million for certain purchasers of the Group's properties, but the Directors consider the fair value to be immaterial and no provision has been made[108] - The Group had no significant acquisitions or disposals of subsidiaries and assets during the reporting period[109] - The Group primarily operates in China, with most transactions denominated and settled in RMB, and does not engage in foreign exchange rate risk hedging activities[111] - The Group's interest rate risk arises from interest-bearing bank deposits and bank and other borrowings, facing both cash flow interest rate risk and fair value interest rate risk[112] Others This section covers various corporate governance matters, employee information, and other administrative details relevant to the Group's operations Employees and Remuneration Policy The Group's employee remuneration is determined by market levels, individual performance, and experience, reviewed annually, with directors' and senior management's compensation based on various factors, and as of June 30, 2024, the total workforce was 372 with total staff costs (excluding directors and senior executives) of approximately RMB 8.7 million, supported by a comprehensive training system and share option scheme - The remuneration of the Group's employees is primarily determined based on prevailing market remuneration levels, individual performance, and work experience[113] - The remuneration policy for executive directors and senior management of the Company is determined by reference to the Group's actual operating conditions, industry remuneration levels, positions and responsibilities, and organizational structure adjustments[113] - During the reporting period, the Group's total staff costs (excluding directors' and senior executives' remuneration) were approximately RMB 8.7 million (2023: approximately RMB 5.9 million)[113] - As of June 30, 2024, the Group had a total of 372 employees (June 30, 2023: 307 employees)[113] Events After Reporting Period The Group has no significant events after the reporting period - The Group has no significant events after the end of the reporting period[115] Interim Dividends The Board of Directors has resolved not to recommend the payment of any interim dividend for the current reporting period, consistent with the prior period - The Board of Directors has resolved not to recommend the payment of any interim dividend for the current reporting period (2023: None)[116] Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities on the Stock Exchange - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities on The Stock Exchange of Hong Kong Limited[117] Compliance with Corporate Governance Code The Company has adopted and complied with all code provisions of the Corporate Governance Code, except for the combined roles of Chairman and CEO, which the Board believes enhances internal leadership consistency and strategic planning efficiency, and will be continuously reviewed - The Company has adopted and complied with all code provisions contained in the Corporate Governance Code during the reporting period, with the only deviation being from Code Provision C.2.1[118] - During the reporting period, Mr. Li Baotian served as both the Chairman of the Board and the Chief Executive Officer of the Company, deviating from the requirement that the roles of Chairman and Chief Executive Officer should be separate[118] - The Board believes that combining the roles of Chairman and Chief Executive Officer in one person helps ensure consistent internal leadership and enhances the effectiveness and efficiency of the Group's overall strategic planning[118] Compliance with Model Code for Securities Transactions The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance during the reporting period, with no instances of non-compliance by employees noted - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules as the code of conduct for Directors' dealings in the Company's securities[118] - Following specific enquiries with all Directors, all Directors confirmed that they have complied with the standards set out in the Model Code during the reporting period[118] - The Company has not noted any instances of non-compliance with the Model Code by its employees[119] Audit Committee The Company's Audit Committee, comprising three independent non-executive directors with Mr. Li Xu as Chairman, has reviewed the Group's unaudited interim results for the six months ended June 30, 2024, confirming compliance with all accounting principles, standards, and adequate disclosures - The Company's Audit Committee comprises three independent non-executive Directors (namely Mr. Li Xu, Mr. Hou Liang, and Mr. Li Qingxu), with Mr. Li Xu as the Chairman[120] - The primary responsibilities of the Audit Committee are to review and supervise the financial reporting process and the Group's internal control systems, monitor the audit process, and provide advice and recommendations to the Board[120] - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2024, and confirmed compliance with all accounting principles, standards, and requirements, and that adequate disclosures have been made[120] Publication of Interim Results and Interim Report This results announcement is published on the HKEXnews website and the Company's website, and the Company's 2024 Interim Report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the HKEX and Company websites in due course - This results announcement is published on the HKEXnews website (www.hkexnews.hk) and the **Company's website (www.chinatbjt.com)**[121](index=121&type=chunk) - The Company's 2024 Interim Report, containing all information required by the Listing Rules, will be dispatched to the Company's shareholders and published on the HKEX and the Company's website in due course[121] Acknowledgement The Group extends sincere gratitude to all shareholders, customers, partners, and employees for their long-term support and outstanding contributions, and remains committed to sustainable business development to create more value - The Group extends its sincere gratitude to all shareholders, customers, and partners for their long-term support, and expresses its heartfelt thanks to all employees for their outstanding contributions to the Group's development[122] - The Group will continue to commit to the sustainable development of its businesses to create more value for all shareholders[122]