甘咨询(000779) - 2025 Q2 - 季度财报

Important Notes, Table of Contents, and Definitions This section provides essential disclaimers, the report's structure, and definitions of key terms for clarity Important Notes The Board of Directors, Supervisory Board, and senior management guarantee the accuracy and completeness of the semi-annual report - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content[3] - Company head Zhang Peifeng, chief accountant Hu Zhiming, and head of accounting department Wang Jiabin declare the financial report is true, accurate, and complete[3] Risk Factors The company faces risks from policy and market fluctuations, increasing accounts receivable, gross margin volatility, and underperforming fundraising projects - Policy and market risks: Engineering consulting services are highly susceptible to national macroeconomic conditions and industrial policy adjustments, potentially leading to market demand fluctuations and adverse operating performance[4] - Accounts receivable risk: At the end of the reporting period, the book value of accounts receivable reached 1.675 billion yuan, accounting for 31.13% of total assets, showing an increasing trend, which could lead to bad debts if clients face financial strain[5] - Gross margin fluctuation risk: The gross margin of engineering consulting services is influenced by project scale, complexity, fee standards, and cost control, and may continue to fluctuate in the future[7] - Fundraising project implementation risk: Fundraising projects may not proceed as planned or achieve expected returns due to changes in macroeconomic conditions, market environment, or failure to meet market expansion targets[8] Profit Distribution Plan The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[9] Table of Contents This section outlines the report's structure, including company profile, management discussion, corporate governance, significant events, and financial statements Definitions This section provides definitions for common terms used throughout the report, ensuring clear understanding of the content Company Profile and Key Financial Indicators This section introduces the company and presents its key financial performance and position metrics for the reporting period Company Profile Gansu Engineering Consulting Group Co Ltd, stock code 000779, is listed on the Shenzhen Stock Exchange, with Zhang Peifeng as its legal representative - Stock Abbreviation: Gansu Consulting, Stock Code: 000779, Listed Stock Exchange: Shenzhen Stock Exchange[16] - The company's legal representative is Zhang Peifeng[16] - The company's contact information and information disclosure location remained unchanged during the reporting period[18][19] Key Accounting Data and Financial Indicators The company achieved year-on-year growth in operating revenue and net profit attributable to shareholders, despite a decrease in net cash flow from operating activities Key Accounting Data and Financial Indicators (Current Reporting Period vs Prior Year Period) | Indicator | Current Reporting Period (CNY) | Prior Year Period (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 924,190,853.66 | 900,392,673.42 | 2.64% | | Net Profit Attributable to Shareholders of Listed Company | 133,134,508.37 | 126,445,099.33 | 5.29% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-recurring Gains and Losses | 129,530,344.86 | 123,280,884.27 | 5.07% | | Net Cash Flow from Operating Activities | -244,534,110.06 | -207,537,235.39 | -17.83% | | Basic Earnings Per Share (CNY/share) | 0.2864 | 0.272 | 5.29% | | Diluted Earnings Per Share (CNY/share) | 0.2864 | 0.2714 | 5.53% | | Weighted Average Return on Net Assets | 3.42% | 3.42% | 0.00% | | Total Assets (Period-end) | 5,383,255,436.39 | 5,501,235,733.50 | -2.14% | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 3,927,672,966.71 | 3,831,635,363.58 | 2.51% | Differences in Accounting Data under Domestic and Overseas Accounting Standards The company reports no differences in net profit and net assets between international or overseas accounting standards and Chinese accounting standards - The company reports no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards for the reporting period[22] - The company reports no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards for the reporting period[23] Non-recurring Gains and Losses and Amounts Non-recurring gains and losses totaled 3.60 million yuan, primarily from government subsidies and other non-operating income and expenses Non-recurring Gains and Losses and Amounts | Item | Amount (CNY) | Description | | :--- | :--- | :--- | | Gains and losses from disposal of non-current assets | -20,268.87 | | | Government subsidies recognized in current profit or loss | 3,042,546.47 | Government subsidies | | Other non-operating income and expenses apart from the above | 1,217,914.76 | | | Less: Income tax impact | 636,028.85 | | | Total | 3,604,163.51 | -- | Management Discussion and Analysis This section provides an in-depth analysis of the company's operations, financial performance, core competencies, and risk management strategies Principal Businesses Engaged in by the Company During the Reporting Period The company primarily engages in engineering consulting across various sectors, driven by new infrastructure, regional strategies, and internal market expansion - The company's main business is engineering consulting services, falling under "M Scientific Research and Technical Services" specifically "M74 Professional Technical Services"[29] - Key business types include planning consulting, survey and design, engineering management, EPC, and testing, covering the entire lifecycle of engineering projects[30][31] - External drivers include new urban infrastructure construction, urban renewal, rural revitalization, carbon peak and neutrality goals, digital technology integration, and major strategic opportunities like the national Western Development strategy[34] - Internal drivers include optimizing provincial market layout, fostering new businesses (municipal, new energy, ecological environmental protection), expanding markets outside the province, and advancing three institutional reforms and technological innovation[35] Analysis of Core Competencies The company's core strengths lie in its comprehensive qualifications, skilled talent, robust technical capabilities, and integrated full-process engineering consulting services - Qualification advantages: Possesses Grade A qualifications for land planning, urban and rural planning, 6 professional Grade A accreditations, comprehensive Grade A engineering survey qualification, Grade A design qualifications for construction and water conservancy industries, and comprehensive engineering supervision qualification from the Ministry of Housing and Urban-Rural Development, covering multi-industry full-process services[36] - Talent advantages: Formed a professional talent team with complete disciplines, reasonable structure, strong technical skills, and rich project experience, with core members recognized by clients for their market development and service capabilities[37][38] - Technical advantages: Possesses comprehensive full-industry chain service capabilities, achieving national or domestic advanced levels in seismic design for high-intensity areas, seismic design for large-span and large-space structures, building energy-saving technology, hydraulic and hydropower engineering survey and design, and foundation treatment in collapsible loess areas[39] - Full-process engineering consulting service capability advantages: Diverse business qualifications, extensive technical and talent reserves enhance the company's competitive edge in developing full-process engineering consulting services[40] Main Business Analysis Operating revenue increased by 2.64% year-on-year, driven by technical services and engineering construction, while management expenses decreased and provincial business remained dominant Major Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (CNY) | Prior Year Period (CNY) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 924,190,853.66 | 900,392,673.42 | 2.64% | Technical services, engineering construction, and EPC operating revenue increased year-on-year | | Operating Cost | 531,600,459.94 | 539,414,124.97 | -1.45% | Survey and design operating costs decreased with corresponding revenue | | Administrative Expenses | 131,129,541.78 | 149,780,945.90 | -12.45% | Management personnel salaries decreased year-on-year | | Financial Expenses | -11,423,903.02 | -16,277,051.01 | 29.82% | Cash management products not yet matured, leading to lower interest income year-on-year | | R&D Investment | 36,720,253.41 | 34,138,194.40 | 7.56% | Subsidiaries increased R&D investment | | Net Cash Flow from Operating Activities | -244,534,110.06 | -207,537,235.39 | -17.83% | Cash received for technical services decreased year-on-year | | Net Cash Flow from Investing Activities | -169,088,128.58 | -316,753,764.80 | 46.62% | Reduced expenditure on cash management products and acquisition of fixed assets | | Net Cash Flow from Financing Activities | -43,759,231.36 | -31,440,217.95 | -39.18% | Cash outflow for profit distribution to shareholders | | Credit Impairment Losses | -79,578,867.17 | -57,180,314.72 | -39.17% | Increase in accounts receivable and aging led to higher provision for bad debts year-on-year | | Asset Impairment Losses | -8,281,163.40 | -1,155,878.56 | -616.44% | Increase in contract assets and aging led to higher provision for impairment year-on-year | Operating Revenue Composition (by Industry) | Industry | Amount for Current Reporting Period (CNY) | Proportion of Operating Revenue | Amount for Prior Year Period (CNY) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Services | 787,386,075.24 | 85.20% | 810,768,248.88 | 90.04% | -2.88% | | Engineering Construction | 52,314,023.98 | 5.66% | 43,906,502.51 | 4.88% | 19.15% | | Other | 84,490,754.44 | 9.14% | 45,717,922.03 | 5.08% | 84.81% | Operating Revenue Composition (by Product) | Product | Amount for Current Reporting Period (CNY) | Proportion of Operating Revenue | Amount for Prior Year Period (CNY) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Pre-consulting, Planning | 63,659,016.89 | 6.89% | 83,975,502.19 | 9.33% | -24.19% | | Survey and Design | 459,709,733.43 | 49.74% | 469,448,619.23 | 52.14% | -2.07% | | Engineering Supervision | 149,862,324.67 | 16.22% | 151,704,657.45 | 16.85% | -1.21% | | Technical Services | 114,155,000.25 | 12.35% | 103,802,076.04 | 11.53% | 9.97% | | Leasing | 4,986,280.77 | 0.54% | 5,160,568.98 | 0.57% | -3.38% | | Other | 131,818,497.65 | 14.26% | 86,301,249.53 | 9.58% | 52.74% | Operating Revenue Composition (by Region) | Region | Amount for Current Reporting Period (CNY) | Proportion of Operating Revenue | Amount for Prior Year Period (CNY) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Engineering Consulting within Province | 857,140,541.76 | 92.74% | 848,698,345.49 | 94.26% | 0.99% | | Engineering Consulting outside Province | 67,050,311.90 | 7.26% | 51,496,899.62 | 5.72% | 30.20% | | Engineering Consulting Abroad | 0.00 | 0.00% | 197,428.31 | 0.02% | -100.00% | Non-Core Business Analysis Non-core businesses, particularly credit impairment losses, significantly impacted total profit, alongside investment income and non-operating income Impact of Non-Core Businesses on Total Profit | Item | Amount (CNY) | Proportion of Total Profit | Reason for Formation | Is it Sustainable | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 4,739,721.96 | 2.94% | Recognition of investment income from associates | Yes | | Asset Impairment | -8,281,163.40 | -5.14% | Primarily impairment losses on contract assets | Yes | | Non-operating Income | 3,921,694.76 | 2.43% | Primarily income from breach of contract compensation and project bonuses | No | | Non-operating Expenses | 2,713,288.93 | 1.68% | Primarily increased expenses for compensation and liquidated damages | No | | Credit Impairment Losses | -79,578,867.17 | -49.36% | Primarily impairment losses on receivables | Yes | Analysis of Assets and Liabilities Total assets slightly decreased, while net assets attributable to shareholders increased, with notable changes in cash, accounts receivable, and contract assets Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (CNY) | Proportion of Total Assets | Amount at End of Prior Year (CNY) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 1,578,767,791.76 | 29.33% | 1,886,748,309.21 | 34.30% | -4.97% | Operating cash inflow was less than outflow during the off-season; decrease due to fixed asset investments and profit distribution to shareholders | | Accounts Receivable | 1,675,283,293.13 | 31.12% | 1,566,168,118.05 | 28.47% | 2.65% | Slow payment pace by clients, extending collection period | | Contract Assets | 174,198,643.26 | 3.24% | 76,978,347.13 | 1.40% | 1.84% | Increase in receivables not yet meeting collection conditions | | Inventories | 32,056,122.02 | 0.60% | 30,506,608.87 | 0.55% | 0.05% | Increase in unsettled contract performance costs | | Investment Properties | 141,406,799.93 | 2.63% | 144,505,777.14 | 2.63% | 0.00% | Decrease in book value due to amortization of investment properties | | Long-term Equity Investments | 271,359,478.45 | 5.04% | 266,619,756.49 | 4.85% | 0.19% | Increase in long-term equity investments due to recognition of investment income from associates | | Fixed Assets | 977,165,617.26 | 18.15% | 999,765,311.47 | 18.17% | -0.02% | Decrease in book value due to depreciation of fixed assets | | Contract Liabilities | 42,304,566.49 | 0.79% | 87,796,566.01 | 1.60% | -0.81% | Decrease in prepayments received for services and recognition of project revenue | | Long-term Borrowings | 32,429,723.07 | 0.60% | 36,411,723.07 | 0.66% | -0.06% | Repayment of bank borrowings | | Lease Liabilities | 19,185,749.35 | 0.36% | 21,672,410.66 | 0.39% | -0.03% | Decrease due to scheduled lease payments | - The company reports no major overseas assets during the reporting period[53] - The company reports no assets and liabilities measured at fair value during the reporting period[53] Asset Rights Restricted as of the End of the Reporting Period | Item | Book Value at Period-end (CNY) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Cash Equivalents | 182,692,831.88 | Guarantees, regulatory funds, frozen funds due to litigation, cash management products, etc | | Fixed Assets | 12,948,959.91 | Mortgage loans | | Total | 195,641,791.79 | | Analysis of Investment Status Total investment significantly decreased year-on-year due to the slowdown and temporary suspension of certain fundraising investment projects Overall Investment Amount During the Reporting Period | Indicator | Amount (CNY) | | :--- | :--- | | Investment Amount for Current Reporting Period | 10,371,537.44 | | Investment Amount for Prior Year Period | 103,274,246.38 | | Change Percentage | -89.96% | - The company reports no securities or derivative investments during the reporting period[56][57] Overall Use of Raised Funds | Total Raised Funds (1) (Ten Thousand CNY) | Total Raised Funds Invested During Reporting Period (Ten Thousand CNY) | Cumulative Used Raised Funds (2) (Ten Thousand CNY) | Cumulative Raised Funds with Changed Purpose (3) (Ten Thousand CNY) | Proportion of Cumulative Raised Funds with Changed Purpose (3)/(1) | Total Unused Raised Funds (Ten Thousand CNY) | Amount of Raised Funds Idle for More Than Two Years (Ten Thousand CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 76,000 | 322.1 | 14,414.46 | 0 | 0.00% | 62,242.7 | 0 | - As of June 30, 2025, the company has actually invested a total of 144.1446 million yuan in related projects, with 622.427 million yuan of unused raised funds, of which 456 million yuan is for cash management and the remaining 166 million yuan is held in special accounts for raised funds[59] - The "Full-Process Engineering Consulting Service Capability Enhancement Project" and "Integrated Management, R&D, and Informatization Capability Enhancement Project" have been temporarily suspended due to market environment and future industry outlook assessments indicating that investment returns may not meet expected levels[61] Significant Asset and Equity Sales The company did not engage in any significant asset or equity sales during the reporting period - The company did not sell any significant assets during the reporting period[64] - The company did not sell any significant equity during the reporting period[65] Analysis of Major Holding and Participating Companies Key subsidiaries like Western (Gansu) Planning Consulting and Gansu Water Conservancy and Hydropower Survey and Design contributed significantly to revenue and net profit, with two new subsidiaries established Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (CNY) | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Operating Profit (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Western (Gansu) Planning Consulting Co Ltd | Subsidiary | Planning consulting, consulting evaluation, engineering design, testing and certification, project management, management consulting, etc | 1,000,000,000.00 | 4,302,013,712.34 | 2,518,198,176.37 | 926,213,426.91 | 170,193,779.81 | 143,824,405.80 | | Gansu Water Conservancy and Hydropower Survey and Design Research Institute Co Ltd | Second-level Subsidiary | Water conservancy and hydropower engineering planning and design; wind power, new energy power generation engineering design; engineering consulting and its argumentation research; engineering survey, supervision, mapping, quality inspection; soil and water conservation plan preparation, etc | 241,622,100.00 | 1,217,537,816.01 | 584,637,897.49 | 272,616,691.32 | 52,158,977.85 | 46,807,652.59 | | Gansu Civil Engineering Science Research Institute Co Ltd | Second-level Subsidiary | Architectural science and technology research and consulting; architectural engineering testing, municipal engineering testing, geotechnical engineering testing, foundation and main structure testing, steel structure engineering testing, architectural engineering installation testing, etc | 63,910,000.00 | 352,228,739.75 | 202,777,759.63 | 79,630,435.60 | 7,076,335.39 | 5,317,339.57 | | Gansu Urban and Rural Planning and Design Institute Co Ltd | Second-level Subsidiary | Urban and rural planning, land planning, architectural industry (architectural engineering) design, engineering survey (geotechnical engineering (survey)), engineering survey professional category (engineering surveying, geotechnical engineering, labor category (engineering drilling)) engineering supervision, etc | 78,900,000.00 | 585,225,571.59 | 375,542,288.25 | 152,526,372.89 | 29,595,274.59 | 25,045,512.97 | | Gansu Architectural Design Institute Co Ltd | Second-level Subsidiary | Undertaking survey and design of industrial and civil construction projects at home and abroad; civil air defense engineering design; urban and rural planning, municipal industry design; engineering cost, engineering consulting, etc | 80,000,000.00 | 1,241,817,389.93 | 645,962,927.70 | 266,134,890.06 | 48,428,111.51 | 40,993,336.12 | Acquisition and Disposal of Subsidiaries During the Reporting Period | Company Name | Method of Acquisition or Disposal of Subsidiaries During Reporting Period | Impact on Overall Production, Operations, and Performance | | :--- | :--- | :--- | | Gansu Hemei Construction Consulting Co Ltd | Newly established | Total profit for the reporting period was -625,000 CNY, with minor impact on overall production and operations | | Gansu Zhuchuang Engineering Co Ltd | Newly established | Total profit for the reporting period was 27,700 CNY, with minor impact on overall production and operations | Information on Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company reports no controlled structured entities during the reporting period[69] Risks Faced by the Company and Countermeasures The company addresses policy, market, accounts receivable, gross margin, and fundraising project risks through strategic planning, optimized collection, and cost control - Policy and market risks: Managed by strengthening policy and market analysis, focusing on national strategic priorities, cultivating niche markets, implementing diversification strategies, and enhancing market operational capabilities[69] - Accounts receivable risk: Addressed by optimizing collection measures, strengthening client credit investigations, managing and recovering accounts, reinforcing internal assessments, and improving collection efficiency[70] - Gross margin fluctuation risk: Mitigated by promoting refined management, focusing on cost reduction and efficiency improvement, implementing effective cost control, innovating management methods, and rationally planning human resources[70] - Fundraising project implementation risk: Managed by closely following market trends, monitoring macroeconomic and industry policy changes, and timely adjusting the construction progress and pace of fundraising projects[71] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not formulated a market value management system nor disclosed a valuation enhancement plan - The company has not formulated a market value management system[72] - The company has not disclosed a valuation enhancement plan[72] Implementation of “Quality and Return Dual Enhancement” Action Plan The company has not disclosed an announcement regarding the "Quality and Return Dual Enhancement" action plan - The company has not disclosed an announcement regarding the "Quality and Return Dual Enhancement" action plan[72] Corporate Governance, Environment, and Society This section details changes in corporate governance, profit distribution, environmental disclosures, and social responsibility initiatives Changes in Directors, Supervisors, and Senior Management The company experienced multiple changes in its Board of Directors, Supervisory Board, and senior management during the reporting period Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Zhang Peifeng | General Manager | Resignation | January 08, 2025 | Job transfer | | Zhang Peifeng | Chairman | Election | January 08, 2025 | Job transfer | | Chen Yifu | General Manager | Appointment | January 08, 2025 | Job transfer | | Meng Kangrong | Deputy General Manager | Appointment | January 08, 2025 | Job transfer | | Gou Hailong | Deputy General Manager | Resignation | June 03, 2025 | Retirement | | Zhao Dengfeng | Chief Financial Officer | Resignation | June 25, 2025 | Job transfer | | Hu Zhiming | Chief Financial Officer | Appointment | June 25, 2025 | Job transfer | Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[75] Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures in place during the reporting period - The company reports no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[76] Environmental Information Disclosure The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[77] Social Responsibility The company actively fulfilled its social responsibilities by contributing to provincial economic development, participating in key projects, and advancing rural revitalization initiatives - The company actively participated in the formulation of plans such as "Opinions on Adhering to the 'Four Waters and Four Determinations' Principle to Comprehensively Promote Ecological Protection and High-Quality Development," providing decision-making support for the province's water conservancy reform and development[77] - Successfully completed tasks such as the Zhongchuan Airport Phase III project and the supervision of the Malian River Grand Bridge on the Xihe Highway project, and orderly advanced key projects like the quality improvement and renovation design of the Shaanxi-Gansu-Ningxia Yanhuanding Yellow River Pumping Gansu Special Project[77] - Formulated and implemented the "Key Points for Rural Revitalization Assistance Work in 2025," systematically advancing 31 assistance projects in nine areas, with 14 already successfully implemented, and actively carried out consumption assistance and paired care actions[77][78] Significant Matters This section covers important events, commitments, legal proceedings, and related party transactions that impact the company's operations and financial position Commitments The controlling shareholder, Gansu State-owned Assets Investment Group Co Ltd, made commitments regarding competition, related party transactions, and property title defects, with some property title commitments extended - Gansu State-owned Assets Investment Group Co Ltd committed to avoiding horizontal competition and non-operating appropriation of listed company funds, and to minimizing related party transactions[80][81][82][83] - Regarding defects in the target land and properties, Gansu State-owned Assets Investment Group Co Ltd committed to actively processing ownership certificates, has obtained 4 real estate certificates, and the deadline for the remaining 3 property certificates has been extended to December 27, 2025[83][84][85][86] Non-Operating Appropriation of Funds The company reports no non-operating appropriation of funds by controlling shareholders or other related parties during the reporting period - The company reports no non-operating appropriation of funds by controlling shareholders or other related parties of the listed company during the reporting period[87] Illegal External Guarantees The company reports no illegal external guarantees during the reporting period - The company reports no illegal external guarantees during the reporting period[88] Accounting Firm Information The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[89] Explanation of “Non-Standard Audit Report” The company reports no non-standard audit reports for the current reporting period - The company reports no non-standard audit reports for the reporting period[90] Explanation of “Non-Standard Audit Report” for the Prior Year The company reports no non-standard audit reports for the prior year - The company reports no non-standard audit reports for the prior year during the reporting period[90] Bankruptcy and Reorganization Matters The company did not experience any bankruptcy or reorganization matters during the reporting period - The company did not experience any bankruptcy or reorganization matters during the reporting period[90] Litigation Matters The company is involved in multiple significant litigation and arbitration cases, with varying statuses from ongoing execution to awaiting judgment Overview of Significant Litigation and Arbitration Matters | Litigation (Arbitration) Basic Information | Amount Involved (Ten Thousand CNY) | Whether a Provision for Liabilities has been Formed | Progress of Litigation (Arbitration) | Outcome and Impact of Litigation (Arbitration) | Status of Judgment Enforcement | | :--- | :--- | :--- | :--- | :--- | :--- | | Gansu Civil Engineering Science Research Institute Co Ltd vs Gansu JianTou Civil Engineering Construction Group Co Ltd Construction Engineering Subcontract Dispute | 309.08 | No | Judgment became effective on August 20, 2024 | Defendant must pay engineering fees of 3,090,780.52 CNY and interest | In execution | | Gansu Civil Engineering Science Research Institute Co Ltd vs Longxi County Housing and Urban-Rural Development Bureau Technical Service Contract Dispute | 256.69 | No | Hearing on April 22, 2025 | Not yet judged | Not executed | | Gansu Hydrogeological Engineering Geological Survey Institute Co Ltd vs Lanzhou Chuangmei Municipal Design Institute Co Ltd, Gansu Jingjiakou Logistics Co Ltd vs Gansu Water Conservancy and Hydropower Survey and Design Research Institute Co Ltd Construction Engineering Survey Contract Dispute | 750 | No | Judgment on December 9, 2024 | Defendant must pay design fees of 7.125 million CNY and overdue interest | Application for compulsory enforcement filed | | Gansu Architectural Design Institute Co Ltd vs Gansu Jingjiakou Logistics Co Ltd Design Contract Dispute | 350 | No | First-instance judgment on August 25, 2023 | Defendant must pay design fees of 3.325 million CNY, interest loss of 148,900 CNY | Application for compulsory enforcement filed | | Gansu Architectural Design Institute Co Ltd vs Gansu Material Group Lanzhou Logistics Distribution Co Ltd Contract Dispute | 244.36 | No | In May 2025, both parties reached a settlement | Architectural Institute has withdrawn the lawsuit, payment of arrears in installments | Lawsuit withdrawn | | Gansu Architectural Design Institute Co Ltd vs Gansu Material Group Lanzhou Logistics Distribution Co Ltd Contract Dispute | 158.54 | No | In May 2025, both parties reached a settlement | Architectural Institute has withdrawn the lawsuit, payment of arrears in installments | Lawsuit withdrawn | | Gansu Longzhong Pharmaceutical Co Ltd et al vs Gansu Engineering Construction Supervision Co Ltd Construction Engineering Construction Contract Dispute | 173.13 | No | First-instance judgment on December 20, 2024 | Engineering Supervision must compensate 12.3038 million CNY for engineering repair fees, 1.5476 million CNY for appraisal fees | In litigation, not executed | | Gansu Jianyan Geotechnical Engineering Co Ltd vs Gansu JianTou Civil Engineering Construction Group Co Ltd Construction Engineering Construction Contract Dispute | 1,189.53 | No | Civil judgment issued on October 15, 2024 | Revoked Lanzhou Intermediate People's Court judgment, upheld Lanzhou Chengguan District Court judgment | In execution | | Gansu Jianyan Geotechnical Engineering Co Ltd vs Gansu Yongkun Industrial Co Ltd Construction Engineering Construction Contract Dispute | 134.73 | No | Arbitration award received on June 15, 2023 | Respondent must pay engineering fees of 1.3473 million CNY | In execution | | Gansu Jianyan Geotechnical Engineering Co Ltd vs Lanzhou Yatai Real Estate Development Group Co Ltd, Gansu Haifeng Construction Co Ltd Construction Engineering Construction Contract Dispute | 265 | No | Judgment received on January 10, 2025 | Defendants must jointly pay engineering fees of 2.65 million CNY and overdue interest | Case closed with execution | | Gansu Jianyan Geotechnical Engineering Co Ltd vs Gansu Dacheng Cultural Tourism Development Co Ltd Construction Contract Dispute | 1,857.22 | No | Civil judgment issued on July 30, 2024 | Defendant must pay plaintiff discounted engineering compensation of 18.5444 million CNY and bear overdue interest | In execution | | Gansu Jianyan Geotechnical Engineering Co Ltd vs Gansu Dacheng Cultural Tourism Development Co Ltd Construction Contract Dispute | 737.23 | No | Civil ruling issued on December 31, 2024 | Rejection of retrial application, agreement reached by four parties, case concluded | Case closed with execution | | Gansu Jianyan Geotechnical Engineering Co Ltd vs Gansu Lianzhi Real Estate Development Co Ltd Construction Contract Dispute | 743.63 | No | Arbitration award issued on December 25, 2024 | Respondent must pay engineering fees of 7.3363 million CNY and interest of 414,800 CNY | Application for compulsory enforcement filed | | Gansu Haiwang Construction and Installation (Group) Co Ltd Commercial Concrete Branch vs Gansu Jianyan Geotechnical Engineering Co Ltd Sales Contract Dispute | 549.54 | No | Mediation agreement issued on August 7, 2024 | Agreement reached by four parties, case concluded | Case closed with execution | | Logistics Support Bureau of Gansu Provincial Military Command of the Chinese People's Liberation Army vs Gansu Urban and Rural Planning and Design Institute Co Ltd Survey and Design Contract Dispute | 620.12 | Yes | Judgment received on June 24, 2025 | Original judgment upheld, defendant must compensate 458,400 CNY for losses, 36,900 CNY for appraisal fees | In execution | | Lanzhou JianTou Real Estate Development Co Ltd vs China Railway 20th Bureau Group Sixth Engineering Co Ltd Construction Engineering Contract Dispute | 4,525.64 | No | Civil judgment received on November 15, 2024 | Planning Institute has appealed, awaiting second instance | Awaiting second instance | | Lanzhou New Area Vocational Education Park Construction Investment Development Co Ltd vs Gansu Third Construction Group Co Ltd Construction Engineering Construction Contract Dispute | 4,106.27 | No | Hearing on October 15, 2024 | Not yet judged | Not executed | | Lanzhou Qianchuan Real Estate Co Ltd vs Gansu Wanyuan Geotechnical Engineering Co Ltd Construction Engineering Construction Contract Dispute | 2,131.85 | No | Second-instance hearing on February 24, 2025 | First-instance judgment ordered defendant to pay engineering fees of 12.6524 million CNY, appraisal fees of 15,000 CNY; second-instance judgment ordered payment of appraisal fees of 195,000 CNY, other parts of first-instance judgment upheld | Not executed | | Shaanxi Zhongguang Industrial Co Ltd vs Gansu Wanyuan Geotechnical Engineering Co Ltd Construction Engineering Construction Contract Dispute | 547.92 | No | First-instance judgment on April 28, 2024 | Defendant must pay performance bond of 4.16 million CNY and overdue interest | Not executed | | Shaanxi Puhua Industrial Co Ltd vs Gansu Wanyuan Geotechnical Engineering Co Ltd Construction Engineering Construction Contract Dispute | 243.02 | No | First-instance judgment on November 4, 2024 | Defendant must pay engineering fees of 2.0936 million CNY and overdue interest | Not executed | Penalties and Rectification The company reports no penalties or rectification situations during the reporting period - The company reports no penalties or rectification situations during the reporting period[97] Integrity Status The company, its controlling shareholder, and actual controller maintain a good integrity status, with no unfulfilled judgments or large overdue debts - The company, its controlling shareholder, and actual controller maintain a good integrity status, with no unfulfilled effective court judgments, large overdue and unpaid debts, and are not listed as dishonest judgment debtors[98] Significant Related Party Transactions The company reports no significant related party transactions concerning daily operations, asset/equity sales, joint investments, or non-operating debt during the reporting period - The company reports no related party transactions related to daily operations during the reporting period[99] - The company reports no related party transactions involving asset or equity acquisitions or sales during the reporting period[100] - The company reports no related party transactions involving joint external investments during the reporting period[101] - The company reports no non-operating related party creditor-debtor relationships during the reporting period[102] - There are no deposits, loans, credit lines, or other financial transactions between the company and related financial companies or related parties[103] - There are no deposits, loans, credit lines, or other financial transactions between the company's controlled financial companies and related parties[104] - The company reports no other significant related party transactions during the reporting period[105] Significant Contracts and Their Performance The company signed a management agreement with its controlling shareholder and provided joint liability guarantees for several subsidiaries, with no other major contracts - The company signed a "Custody Agreement" with its controlling shareholder, Gansu State-owned Assets Investment Group Co Ltd, entrusting Longwan Company to the company for operation and management, with the management fee being 30% of Longwan Company's annual dividends[106] - The company reports no custody projects that generated profits or losses exceeding 10% of the company's total profit for the reporting period[106] - The company reports no contracting situations during the reporting period[107] - The company reports no leasing situations during the reporting period[108][109] Company's Guarantees for Subsidiaries | Guaranteed Party Name | Guarantee Limit (Ten Thousand CNY) | Actual Guarantee Amount (Ten Thousand CNY) | Guarantee Type | Guarantee Period | Whether Fulfilled | Whether a Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Gansu Water Conservancy and Hydropower Survey and Design Research Institute Co Ltd | 8,000 | 3,839.17 | Joint and several liability guarantee | 10 years | No | No | | Gansu Water Conservancy and Hydropower Survey and Design Research Institute Co Ltd | 5,000 | 164.44 | Joint and several liability guarantee | 1 year | No | No | | Gansu Water Conservancy and Hydropower Survey and Design Research Institute Co Ltd | 5,000 | 184.96 | Joint and several liability guarantee | 3 years | No | No | | Gansu Transportation Engineering Construction Supervision Co Ltd | 4,000 | 901.21 | Joint and several liability guarantee | 2 years | No | No | | Gansu Architectural Design Institute Co Ltd | 2,200 | 219.1 | Joint and several liability guarantee | 1 year | No | No | | Gansu Engineering Construction Supervision Co Ltd | 200 | 10.04 | Joint and several liability guarantee | 1 year | No | No | | Gansu Jianyan Geotechnical Engineering Co Ltd | 1,000 | 134.05 | Joint and several liability guarantee | 1 year | No | No | | Gansu Civil Engineering Science Research Institute Co Ltd | 1,000 | 4.69 | Joint and several liability guarantee | 2 years | No | No | - The company reports no entrusted wealth management during the reporting period[113] - The company reports no other significant contracts during the reporting period[114] Explanation of Other Significant Matters The company disclosed several important announcements, including changes in senior management, chairman election, and the temporary suspension of some fundraising projects - On January 9, 2025, the company disclosed announcements regarding the resignation of the General Manager, election of the Chairman, appointment of the General Manager and Deputy General Manager, and election of non-independent directors to the Board[115] - On April 24, 2025, the company disclosed an announcement regarding the re-evaluation and temporary suspension of some fundraising investment projects[115] - On June 4 and June 26, 2025, the company disclosed announcements regarding the resignation of the Deputy General Manager and Chief Legal Counsel, and the resignation and appointment of the Chief Financial Officer[115] Significant Matters of Company Subsidiaries The company reports no significant matters concerning its subsidiaries during the reporting period - The company reports no significant matters concerning its subsidiaries during the reporting period[116] Share Changes and Shareholder Information This section details changes in share capital, restricted shares, and the company's shareholder structure, including major shareholders Share Change Status Restricted shares increased due to lock-up of supervisor and senior management holdings, while unrestricted shares decreased, keeping total shares unchanged Share Change Status | Item | Quantity Before This Change (Shares) | Proportion Before This Change | Increase/Decrease in This Change (+, -) - Other (Shares) | Increase/Decrease in This Change (+, -) - Subtotal (Shares) | Quantity After This Change (Shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 40,552 | 0.01% | 14,158 | 14,158 | 54,710 | 0.01% | | Of which: Shares held by domestic natural persons | 40,552 | 0.01% | 14,158 | 14,158 | 54,710 | 0.01% | | II. Unrestricted Shares | 464,788,900 | 99.99% | -14,158 | -14,158 | 464,774,742 | 99.99% | | Of which: RMB Ordinary Shares | 464,788,900 | 99.99% | -14,158 | -14,158 | 464,774,742 | 99.99% | | III. Total Shares | 464,829,452 | 100.00% | 0 | 0 | 464,829,452 | 100.00% | - The change in shares was due to the change in the number of restricted shares held by supervisors and senior management[120] Restricted Share Change Status Restricted shares held by supervisors and senior management increased by 14,158 shares, totaling 54,710 shares at period-end due to lock-up Restricted Share Change Status | Shareholder Name | Restricted Shares at Beginning of Period (Shares) | Restricted Shares Released During Current Period (Shares) | Restricted Shares Increased During Current Period (Shares) | Restricted Shares at End of Period (Shares) | Reason for Restriction | Release Date of Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shares held by Supervisors and Senior Management | 40,552 | 0 | 14,158 | 54,710 | Restricted shares held by supervisors and senior management changed | June 22, 2027 | | Total | 40,552 | 0 | 14,158 | 54,710 | -- | -- | Securities Issuance and Listing Status The company reports no securities issuance or listing activities during the reporting period - The company reports no securities issuance or listing activities during the reporting period[122] Number of Shareholders and Shareholding Status As of the reporting period end, the company had 32,779 ordinary shareholders, with Gansu State-owned Assets Investment Group Co Ltd as the largest shareholder - The total number of ordinary shareholders at the end of the reporting period was 32,779 households[123] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at End of Reporting Period (Shares) | Changes in Shareholding During Reporting Period (Shares) | Number of Restricted Shares Held (Shares) | Number of Unrestricted Shares Held (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Gansu State-owned Assets Investment Group Co Ltd | State-owned Legal Person | 44.17% | 205,306,775.00 | 0 | 0 | 205,306,775.00 | | Jiaxing Julii No 2 Equity Investment Partnership (Limited Partnership) | Domestic Non-state-owned Legal Person | 3.27% | 15,202,768.00 | 0 | 0 | 15,202,768.00 | | Gansu Water Affairs Investment Group Co Ltd | State-owned Legal Person | 2.77% | 12,883,094.00 | 0 | 0 | 12,883,094.00 | | Gansu Xinglong Capital Management Co Ltd | State-owned Legal Person | 1.23% | 5,698,488.00 | 0 | 0 | 5,698,488.00 | | Ningbo Jiatooyuan Equity Investment Partnership (Limited Partnership) | Domestic Non-state-owned Legal Person | 0.75% | 3,496,503.00 | 0 | 0 | 3,496,503.00 | | Ou Linmin | Domestic Natural Person | 0.65% | 3,005,500.00 | -2,974,500 | 0 | 3,005,500.00 | | National Social Security Fund 113 Portfolio | Other | 0.53% | 2,447,552.00 | 0 | 0 | 2,447,552.00 | | Wu Xiaochun | Domestic Natural Person | 0.50% | 2,331,003.00 | 0 | 0 | 2,331,003.00 | | Qi Peng | Domestic Natural Person | 0.43% | 1,981,000.00 | -25,000 | 0 | 1,981,000.00 | | Che Shuliang | Domestic Natural Person | 0.41% | 1,902,300.00 | -154,900 | 0 | 1,902,300.00 | - Gansu State-owned Assets Investment Group Co Ltd is the controlling shareholder of Gansu Xinglong Capital Management Co Ltd, thus forming a concerted party[124] Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period - The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period[126] Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder or actual controller did not change during the reporting period - The company's controlling shareholder did not change during the reporting period[127] - The company's actual controller did not change during the reporting period[127] Bond-Related Information This section confirms that the company has no bond-related information to disclose for the reporting period Bond-Related Information The company reports no bond-related information during the reporting period - The company reports no bond-related information during the reporting period[130] Financial Report This section presents the company's unaudited financial statements, including balance sheets, income statements, and cash flow statements, along with detailed notes Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[132] Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were 5.38 billion yuan, with total liabilities of 1.45 billion yuan and total owner's equity of 3.94 billion yuan Key Data from Consolidated Balance Sheet (June 30, 2025) | Item | Balance at Period-end (CNY) | Balance at Period-beginning (CNY) | | :--- | :--- | :--- | | Total Assets | 5,383,255,436.39 | 5,501,235,733.50 | | Total Current Assets | 3,577,169,757.73 | 3,680,944,717.06 | | Total Non-current Assets | 1,806,085,678.66 | 1,820,291,016.44 | | Total Liabilities | 1,448,088,028.34 | 1,662,140,920.78 | | Total Owner's Equity | 3,935,167,408.05 | 3,839,094,812.72 | Consolidated Income Statement For the first half of 2025, the company achieved total operating revenue of 924 million yuan, net profit of 133 million yuan, and basic earnings per share of 0.2864 yuan Key Data from Consolidated Income Statement (First Half of 2025) | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 924,190,853.66 | 900,392,673.42 | | Total Operating Costs | 692,979,553.62 | 710,547,217.72 | | Operating Profit | 160,012,414.70 | 148,292,629.70 | | Total Profit | 161,220,820.53 | 151,414,534.36 | | Net Profit | 133,246,450.57 | 126,791,849.34 | | Net Profit Attributable to Parent Company Shareholders | 133,134,508.37 | 126,445,099.33 | | Basic Earnings Per Share | 0.2864 | 0.272 | | Diluted Earnings Per Share | 0.2864 | 0.2714 | Consolidated Cash Flow Statement For the first half of 2025, net cash flow from operating activities was -245 million yuan, from investing activities -169 million yuan, and from financing activities -44 million yuan Key Data from Consolidated Cash Flow Statement (First Half of 2025) | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -244,534,110.06 | -207,537,235.39 | | Net Cash Flow from Investing Activities | -169,088,128.58 | -316,753,764.80 | | Net Cash Flow from Financing Activities | -43,759,231.36 | -31,440,217.95 | | Net Increase in Cash and Cash Equivalents | -457,382,624.41 | -555,730,757.65 | | Cash and Cash Equivalents at End of Period | 1,396,074,959.88 | 1,307,888,385.58 | Company Basic Information Gansu Engineering Consulting Group Co Ltd is a state-controlled listed company regulated by the Gansu Provincial SASAC, primarily engaged in engineering consulting - The company is a state-controlled listed company supervised by the Gansu Provincial SASAC and is the largest engineering technology industrial group in Gansu Province[166] - The company's current controlling shareholder is Gansu State-owned Assets Investment Group Co Ltd[166] - The company's business scope includes consulting services such as planning consulting, consulting evaluation, engineering design, testing and certification, project management, and management consulting[166] Basis of Financial Statement Preparation The financial statements are prepared on a going concern basis, adhering to enterprise accounting standards and China Securities Regulatory Commission disclosure requirements - The company prepares its financial statements on a going concern basis, recognizing and measuring transactions and events in accordance with Enterprise Accounting Standards, their application guidelines, and interpretations[167] - The company has the ability to continue as a going concern for at least 12 months from the end of the reporting period, with no significant matters affecting its going concern ability[168] Significant Accounting Policies and Accounting Estimates This section details the company's accounting policies and estimates for business combinations, financial instruments, revenue recognition, asset impairment, and government grants - The financial statements prepared by the company comply with the requirements of "Enterprise Accounting Standards," truly and completely reflecting the financial position, operating results, and cash flows[169] - The company uses a 12-month period as its normal operating cycle and uses RMB as its functional currency[171][172] - Financial assets are classified into three categories based on the business model for managing them and their contractual cash flow characteristics: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[201] - Revenue recognition principles are based on identifying distinct performance obligations and determining whether they are satisfied over time or at a point in time, recognizing revenue according to the progress of satisfaction or when the customer obtains control[263][264] - Government grants are recognized when the attached conditions are met and the grants are receivable; asset-related grants reduce the book value of assets or are recognized as deferred income, while income-related grants are recognized in current profit or loss or offset related costs[272] Taxation The company's main taxes include VAT, urban maintenance and construction tax, and corporate income tax, with some subsidiaries benefiting from preferential tax policies Major Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable income | 3%, 5%, 6%, 9%, 13% | | Urban Maintenance and Construction Tax | Taxable and exempt/offset VAT amount | 7%, 5% | | Corporate Income Tax | Taxable income | 5%, 15%, 25% | | Education Surcharge | Taxable and exempt/offset VAT amount | 3% | | Local Education Surcharge | Taxable and exempt/offset VAT amount | 2% | - Some subsidiaries comply with the "Catalogue of Encouraged Industries in Western Regions (2020 Edition)" and are subject to corporate income tax at a reduced rate of 15%[287] - Some subsidiaries qualify for small and micro enterprise income tax preferential policies, where the portion of annual taxable income not exceeding 1 million yuan is included in taxable income at 25% and taxed at a rate of 20%[287] - Several subsidiaries have obtained high-tech enterprise certificates and pay corporate income tax at a preferential rate of 15% according to relevant regulations[288][289][290] Notes to Consolidated Financial Statement Items This section provides detailed notes on key consolidated financial statement items, including cash, receivables, investments, fixed assets, and revenue, with period-end balances and changes Composition of Cash and Cash Equivalents | Item | Balance at Period-end (CNY) | Balance at Period-beginning (CNY) | | :--- | :--- | :--- | | Cash on hand | 11,200.99 | 14,572.42 | | Bank deposits | 1,396,063,758.89 | 1,853,443,011.87 | | Other cash and cash equivalents | 182,692,831.88 | 33,290,724.92 | | Total | 1,578,767,791.76 | 1,886,748,309.21 | - The book value of accounts receivable at period-end was 1.675 billion yuan, an increase from the beginning of the period, primarily due to slow payment by clients[309] - The book value of contract assets at period-end was 174 million yuan, a significant increase from the beginning of the period, primarily due to an increase in receivables not yet meeting collection conditions[318] - The book value of long-term equity investments at period-end was 271 million yuan, an increase from the beginning of the period,