Revenue Performance - Revenue for the six months ended June 30, 2024, decreased by approximately RMB 116.8 million or 23.5% to RMB 379.0 million compared to RMB 495.8 million for the same period in 2023[17] - Construction project revenue decreased by approximately RMB 32.5 million or 11.6% to RMB 246.9 million for the six months ended June 30, 2024, from RMB 279.4 million in 2023[19] - Municipal public works project revenue increased by approximately RMB 33.2 million or 35.9% to RMB 126.1 million for the six months ended June 30, 2024, compared to RMB 92.9 million in 2023[20] - Foundation engineering project revenue decreased significantly by approximately RMB 51.3 million or 95.5% to RMB 2.4 million for the six months ended June 30, 2024, from RMB 53.7 million in 2023[21] - Professional contracting project revenue decreased by approximately RMB 66.2 million or 94.9% to RMB 3.6 million for the six months ended June 30, 2024, compared to RMB 69.8 million in 2023[22] - Revenue for the six months ended June 30, 2024, was RMB 379,026 thousand, a decrease of 23.5% compared to RMB 495,780 thousand for the same period in 2023[64] Cost and Profitability - Total cost of revenue for the six months ended June 30, 2024, was RMB 357.4 million, down from RMB 467.2 million in 2023[23] - Revenue costs for the six months ended June 30, 2024, decreased by approximately RMB 109.8 million or 23.5% compared to the same period in 2023, primarily due to a reduction in the number of engineering projects leading to decreased demand for raw materials and lower equipment and machinery usage costs[25] - Gross profit for construction projects for the six months ended June 30, 2024, was RMB 21,673 thousand with a gross margin of 5.7%, compared to RMB 28,547 thousand and a gross margin of 5.8% for the same period in 2023[26] - Operating profit decreased to RMB 3,644 thousand, a decline of 77.9% from RMB 16,465 thousand in the previous year[64] - Profit for the period decreased by approximately 96.9% to RMB 0.3 million for the six months ended June 30, 2024, compared to RMB 10.8 million for the same period in 2023, primarily due to reduced revenue and gross profit along with increased administrative expenses[28] - Adjusted profit for the six months ended June 30, 2024, was RMB 1,898 thousand, down from RMB 13,154 thousand in the same period of 2023[29] Expenses and Administrative Costs - Administrative expenses increased by approximately RMB 3.8 million or 23.3% for the six months ended June 30, 2024, mainly due to increased labor costs and professional fees[28] - The group’s total expenses for the six months ended June 30, 2024, amounted to RMB 377,517,000, compared to RMB 483,588,000 in the same period of 2023[83] Financial Position - Cash and cash equivalents as of June 30, 2024, were approximately RMB 105.1 million, down from RMB 147.1 million as of December 31, 2023[30] - Bank borrowings as of June 30, 2024, amounted to approximately RMB 27.8 million, a decrease from RMB 29.3 million as of December 31, 2023[31] - The debt-to-equity ratio as of June 30, 2024, was approximately 5.9%, down from 7.9% as of December 31, 2023[32] - Total assets as of June 30, 2024, were RMB 1,535,348 thousand, down from RMB 1,682,716 thousand at the end of 2023[65] - Current assets decreased to RMB 1,470,717 thousand from RMB 1,619,313 thousand at the end of 2023[65] - Total liabilities decreased from RMB 1,310,292 thousand as of December 31, 2023, to RMB 1,060,981 thousand as of June 30, 2024, representing a reduction of approximately 19.0%[66] - Total equity increased from RMB 1,682,716 thousand as of December 31, 2023, to RMB 1,535,348 thousand as of June 30, 2024, indicating a decrease of about 8.8%[66] Employee and Management Information - As of June 30, 2024, the total employee cost was approximately RMB 12.7 million, an increase from RMB 9.8 million in the same period last year[36] - The company employed a total of 257 employees, all located in China, and faced no significant hiring or retention issues[36] - The total remuneration for key management personnel for the six months ended June 30, 2024, was RMB 1,261 thousand, an increase from RMB 1,179 thousand for the same period in 2023, showing a growth of about 7.0%[125] Market and Strategic Outlook - The construction market in Guangdong Province recorded a compound annual growth rate (CAGR) of approximately 13.4% from 2018 to 2022, reaching about RMB 229.57 billion in 2022, with expectations of further growth to approximately RMB 342.61 billion by 2027 at a CAGR of about 8.3%[39] - The company is focused on expanding its construction services in response to favorable government policies aimed at increasing infrastructure development[39] - The company aims to enhance its market share in the construction services sector by leveraging its extensive experience and knowledge[39] Shareholder and Compliance Information - As of June 30, 2024, Mr. Sang Xianfeng held 55.20% of the shares through controlled corporations, while Mr. Xian Yulong held 13.80%[47] - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with the relevant regulations[43] - The company has appointed Huifu Financing Limited as its compliance advisor[57] Capital and Financing Activities - The company plans to allocate approximately RMB 77.3 million from its IPO proceeds for various purposes, including RMB 35.3 million for capital needs and cash flow, and RMB 31.9 million for equipment and machinery acquisition[40] - The company raised RMB 117,032 thousand from share placements and public offerings during the financing activities in the six months ended June 30, 2024[69] Dividend and Retained Earnings - No interim dividend was recommended for the six months ended June 30, 2024[41] - The group did not declare or pay any dividends for the six months ended June 30, 2024, consistent with the same period in 2023[96] - The company’s retained earnings increased from RMB 12,406 thousand as of January 1, 2023, to RMB 39,784 thousand as of January 1, 2024, representing an increase of approximately 221.5%[67]
中深建业(02503) - 2024 - 中期财报