广东建工(002060) - 2025 Q2 - 季度财报

Section I Important Notice, Table of Contents, and Definitions Important Notice The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report and assume legal responsibility, with no plans for semi-annual profit distribution - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or major omissions, and assume legal responsibility[4] - Company head Xie YanHui, chief accountant Xie YanHui, and head of accounting department Zeng LiXuan declare that the financial report in this semi-annual report is true, accurate, and complete[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5] Table of Contents This report's clear table of contents lists nine main chapters, providing comprehensive information navigation from company profile to financial reports and other submitted data - The report's table of contents includes nine main chapters, from company profile to financial reports and other submitted data, with a clear structure[7] Definitions This section defines common terms used in the report, including company names, regulatory bodies, key subsidiaries, and the reporting period, ensuring accurate understanding - This section clarifies the definitions of key terms in the report, including the company, regulatory bodies, major subsidiaries, and the reporting period[11] Section II Company Profile and Key Financial Indicators 1. Company Profile The company's stock abbreviation is "Guangdong Construction," stock code 002060, listed on the Shenzhen Stock Exchange, with Xie YanHui as the legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | 广东建工 | | Stock Code | 002060 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | 广东省建筑工程集团股份有限公司 | | Legal Representative | 谢彦辉 | 2. Contact Person and Information Lin GuangXi serves as both the Board Secretary and Securities Affairs Representative, with contact details provided for the company's Guangzhou office Contact Person and Information | Position | Name | Contact Address | Phone | Email | | :--- | :--- | :--- | :--- | :--- | | Board Secretary | 林广喜 | 广东省广州市荔湾区流花路 85 号建工大楼 9 楼 | （020）33974869 | lgxi-0731@163.com | | Securities Affairs Representative | 林广喜 | 广东省广州市荔湾区流花路 85 号建工大楼 9 楼 | （020）33974869 | lgxi-0731@163.com | 3. Other Information The company's registered and office addresses, website, and email remained unchanged during the reporting period, with disclosures made via specified media - The company's registered address, office address, website, and email remained unchanged during the reporting period, as detailed in the 2024 annual report[15] - The media for the company's semi-annual report disclosure are China Securities Journal, Securities Times, and Juchao Information Network (http://www.cninfo.com.cn)[16](index=16&type=chunk) 4. Key Accounting Data and Financial Indicators During the reporting period, operating revenue increased by 10.64%, but net profit attributable to shareholders decreased by 23.44%, and net cash flow from operating activities significantly dropped by 8,431.68% due to government debt policies and payment timing Key Accounting Data and Financial Indicators (Year-on-Year Change) | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 29,312,075,211.47 | 26,492,563,603.13 | 10.64% | | Net Profit Attributable to Listed Company Shareholders | 350,391,840.66 | 457,670,853.66 | -23.44% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Gains/Losses) | 324,050,269.83 | 454,299,441.73 | -28.67% | | Net Cash Flow from Operating Activities | -5,853,004,305.18 | 70,249,992.79 | -8,431.68% | | Basic Earnings Per Share (RMB/share) | 0.0933 | 0.1219 | -23.46% | | Diluted Earnings Per Share (RMB/share) | 0.0933 | 0.1219 | -23.46% | | Weighted Average Return on Net Assets | 2.53% | 3.45% | -0.92% | | Indicator | End of Current Reporting Period (RMB) | End of Prior Year (RMB) | Change from End of Prior Year | | :--- | :--- | :--- | :--- | | Total Assets | 138,549,914,939.64 | 141,562,682,174.02 | -2.13% | | Net Assets Attributable to Listed Company Shareholders | 13,578,529,871.48 | 13,761,589,532.02 | -1.33% | - Net cash flow from operating activities decreased significantly by 8,431.68%, primarily due to the impact of local government debt resolution policies and annual budget arrangements for fiscal funds, with collections concentrated at the end of 2024 and increased payments in the current period[54] 5. Differences in Accounting Data under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between financial reports prepared under international or overseas accounting standards and Chinese accounting standards during the reporting period - The company reported no differences in net profit and net assets between financial reports disclosed under international accounting standards and Chinese accounting standards during the reporting period[18] - The company reported no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese accounting standards during the reporting period[19] 6. Non-Recurring Gains and Losses and Amounts Non-recurring gains and losses totaled 26.34 million RMB, primarily from disposal of non-current assets, government grants, entrusted investment gains, and reversal of impairment provisions for receivables Non-Recurring Gains and Losses and Amounts | Item | Amount (RMB) | | :--- | :--- | | Gains or losses from disposal of non-current assets | 26,418,108.75 | | Government grants recognized in current profit or loss | 25,808.56 | | Gains or losses from entrusted investments or asset management | 4,768,104.30 | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 2,874,309.50 | | Other non-operating income and expenses apart from the above | -3,851,292.16 | | Less: Income tax impact | 3,844,973.53 | | Less: Impact on minority interests (after tax) | 48,494.59 | | Total | 26,341,570.83 | Section III Management Discussion and Analysis 1. Company's Main Business Activities During the Reporting Period The company's main business encompasses construction engineering, water conservancy, municipal utilities, highway engineering, and clean energy generation and equipment manufacturing, forming a "large construction industry" chain and clean energy business - The company's main business covers construction engineering, water conservancy and hydropower engineering, municipal public engineering, highway engineering, etc., possessing a "large construction industry" chain integrating "architectural design, technology research and development, investment and development, construction, operation and maintenance"[24] - The company also engages in water, wind, solar, photovoltaic, and other clean energy generation and equipment manufacturing businesses[24] Main Business Revenue Changes | Business Segment | Operating Revenue (RMB 100 million) | Year-on-Year Change | | :--- | :--- | :--- | | Engineering and Construction | 266.78 | 13.54% | | Clean Energy Generation | 11.27 | -14.48% | | Smart Equipment Manufacturing | 10.74 | -6.67% | (I) Industry Development Overview In the first half of 2025, China's economy grew steadily, with infrastructure investment serving as a key driver, supported by increasing policy support in green infrastructure, smart construction, and new energy bases - In the first half of 2025, China's economy operated stably and improved overall, with infrastructure investment playing an important role in stabilizing growth[25] - The government proposed implementing more proactive fiscal policies and moderately loose monetary policies, accelerating the issuance and use of local government special bonds and ultra-long-term special national bonds, expanding and upgrading the "two new" policies, and intensifying the implementation of "two major" constructions and urban renewal actions[25] - Various policies are working in synergy, bringing significant opportunities and strong support for the company to undertake more key infrastructure projects and increase investment in core businesses like clean energy[26] 1. Engineering and Construction Industry Overview The engineering and construction industry, a pillar of the national economy, is closely linked to macroeconomic trends, with increased national investment and a shift towards green and smart construction - In the first half of 2025, China's GDP grew by 5.3% year-on-year; fixed asset investment showed steady progress, increasing by 2.8% year-on-year[27] - The engineering and construction industry is characterized by steady progress in traditional areas and a continuous transformation towards green infrastructure and smart construction[27] - During the "14th Five-Year Plan" period, Guangdong Province arranged approximately 2,002 billion RMB in major transportation infrastructure projects, including 880 billion RMB for rail transit, with annual water conservancy investment maintained above 100 billion RMB[28][29] 2. Clean Energy Generation Industry Overview Clean energy generation is a crucial component of national energy and green development strategies, with significant growth in solar and wind power capacity driven by "carbon peak and neutrality" goals and market-oriented pricing reforms - Developing clean energy has become an important part of China's national energy strategy and green development strategy, representing the main direction for future energy development[31] 2025 H1 National Power Industry Statistics | Indicator | As of June 30, 2025 | | :--- | :--- | | National Cumulative Installed Power Capacity | 3.65 billion kW (Year-on-Year Growth 18.7%) | | Solar Power Installed Capacity | 1.10 billion kW (Year-on-Year Growth 54.2%) | | Wind Power Installed Capacity | 0.57 billion kW (Year-on-Year Growth 22.7%) | - National policies are deepening the market-oriented reform of new energy on-grid tariffs, promoting all on-grid electricity from wind power and solar power to enter the electricity market, with on-grid tariffs formed through market transactions[34] 3. Equipment Manufacturing Industry Overview The equipment manufacturing industry, a foundational sector, sees broad market demand in clean energy and construction equipment, supported by policies promoting renewable energy equipment and smart construction - The equipment manufacturing industry is a foundational industry that provides technical equipment for national economic development, with broad market demand for clean energy equipment[36] - The Ministry of Industry and Information Technology and other departments proposed goals such as "continuously improving the supply capacity of renewable energy power generation equipment, with wind power and solar power equipment meeting the demand for over 1.2 billion kW installed capacity"[36] - The construction equipment manufacturing industry is a core foundational industry supporting the national new urbanization and smart construction strategies, with its intelligent and green transformation crucial for achieving "dual carbon" goals[38] (II) Business Model The company's construction business primarily uses single construction and investor+EPC models, clean energy involves investment, construction, and operation for electricity sales, and equipment manufacturing focuses on project undertaking, procurement, production, and delivery for equipment sales - The engineering and construction business model primarily includes the single construction model (providing general contracting and specialized contracting services) and the investor+EPC model (participating in local infrastructure investment, undertaking engineering construction tasks under the EPC model, and recovering investment through user fees and operational income later)[39] - The clean energy generation business model primarily involves investment, construction, and operation, with revenue derived from electricity sales, recognized by selling electricity to power companies[39] - The equipment manufacturing business model primarily involves project undertaking, material procurement, processing and manufacturing, and transportation and delivery, with revenue derived from equipment payments[39] (III) Market Position The company holds a leading regional position in construction with multiple top-tier qualifications, extensive experience in major projects, a significant clean energy installed capacity, and advanced capabilities in shield tunneling, pipe jacking, and prefabricated construction - The company's engineering and construction main business holds four categories and five items of top-tier general contracting qualifications for municipal public engineering, construction engineering, water conservancy and hydropower engineering, and highway engineering, making it a regional leading new urban and rural construction service operator[40] - As of June 30, 2025, the company's cumulative installed clean energy projects in operation totaled 4.566 million kW, including 380,500 kW of hydropower, 800,400 kW of wind power, 3.2851 million kW of photovoltaic power, and 100,000 kW of energy storage[44] - The company is at a leading domestic and international level in shield tunneling technology, has independently developed the largest rectangular section pipe jacking machine in China, is among the first tier of domestic wind turbine tower manufacturing, and is one of the first batch of "National Prefabricated Building Industrial Bases"[45] (IV) Key Performance Drivers In the first half of 2025, the company achieved 29.31 billion RMB in operating revenue, primarily driven by a 13.54% increase in engineering and construction business revenue, while clean energy and smart equipment manufacturing revenues decreased 2025 H1 Operating Revenue by Business Segment | Business Segment | Operating Revenue (RMB 100 million) | Year-on-Year Change | | :--- | :--- | :--- | | Total Operating Revenue | 293.12 | - | | Engineering and Construction | 266.78 | 13.54% | | Clean Energy Generation | 11.27 | -14.48% | | Smart Equipment Manufacturing | 10.74 | -6.67% | - The growth in engineering and construction business was the main driver for the company's operating revenue growth in the first half of 2025[46] 2. Analysis of Core Competencies The company's core competencies stem from its comprehensive qualifications, technological innovation, advanced equipment, skilled talent, and strong brand reputation, supported by numerous patents and national engineering awards - The company possesses four categories and five items of top-tier general contracting qualifications for construction engineering, water conservancy and hydropower engineering, municipal public engineering, and highway engineering, forming a high-level, comprehensive professional qualification system[47] - The company and its subsidiaries own 40 high-tech enterprises and 20 provincial-level "specialized, refined, unique, and new" small and medium-sized enterprises, possessing core technologies such as prefabricated building construction, shield tunneling, and pipe jacking, with a cumulative total of 643 valid invention patents and 2,309 valid utility model patents[48][49] - The company has excellent construction equipment, owning 40 shield machines, 2 TBM hard rock boring machines, and 2 continuous wall milling machines, among other large specialized construction equipment[50] - The company currently has over 16,500 employees, including over 8,000 experts and high-end talents such as experts enjoying State Council special allowances, professor-level senior engineers, national registered engineers, registered constructors, and senior professionals[51] - Projects undertaken by the company have repeatedly won important national and provincial-ministerial awards such as the China Construction Engineering Luban Prize and the China Civil Engineering Zhan Tianyou Prize, establishing a good market reputation and brand influence[52] 3. Analysis of Main Business While main business revenue grew by 10.64%, operating costs increased faster, leading to a slight decline in gross profit margin, and both net profit attributable to shareholders and net operating cash flow decreased significantly Key Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 29,312,075,211.47 | 26,492,563,603.13 | 10.64% | - | | Operating Cost | 26,527,739,266.34 | 23,748,486,663.76 | 11.70% | - | | Net Profit Attributable to Listed Company Shareholders | 350,391,840.66 | 457,670,853.66 | -23.44% | - | | Net Cash Flow from Operating Activities | -5,853,004,305.18 | 70,249,992.79 | -8,431.68% | Impacted by local government debt resolution policies and annual budget arrangements for fiscal funds, with collections concentrated at the end of 2024 and increased payments in the current period | | Income Tax Expense | 150,827,500.26 | 110,811,288.04 | 36.11% | Increase in prepaid income tax expenses for the current period | Operating Revenue Composition (by Industry) | Industry | Current Reporting Period Amount (RMB) | Proportion of Operating Revenue | Prior Year Period Amount (RMB) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Engineering Construction | 26,678,206,731.76 | 91.01% | 23,497,690,529.74 | 88.70% | 13.54% | | Smart Equipment Manufacturing | 1,074,091,801.13 | 3.66% | 1,150,847,195.33 | 4.34% | -6.67% | | Power Generation | 1,126,900,764.24 | 3.85% | 1,317,714,635.42 | 4.97% | -14.48% | | Survey, Design, and Consulting Services | 284,817,772.47 | 0.97% | 392,542,404.87 | 1.48% | -27.44% | Operating Revenue Composition (by Product) | Product | Current Reporting Period Amount (RMB) | Proportion of Operating Revenue | Prior Year Period Amount (RMB) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Building Construction | 6,184,879,518.28 | 21.10% | 6,581,770,064.41 | 24.84% | -6.03% | | Water Conservancy and Hydropower | 5,814,933,628.24 | 19.84% | 5,038,156,186.76 | 19.02% | 15.42% | | Municipal Engineering | 11,237,621,644.04 | 38.34% | 9,070,581,376.20 | 34.24% | 23.89% | | Other Engineering | 3,440,771,941.20 | 11.74% | 2,807,182,902.37 | 10.60% | 22.57% | | Solar Power Generation | 484,239,061.59 | 1.65% | 563,532,678.59 | 2.13% | -14.07% | 4. Analysis of Non-Main Business The company reported no significant changes in non-main business revenue or profit during the reporting period - The company reported no significant changes in non-main business revenue or profit during the reporting period[58] 5. Analysis of Assets and Liabilities At the end of the reporting period, total assets and net assets attributable to shareholders slightly decreased, with a 5.34% reduction in monetary funds, increased proportions of accounts receivable and contract liabilities, and growth in long-term borrowings and lease liabilities Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (RMB) | Proportion of Total Assets | Amount at End of Prior Year (RMB) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 14,706,556,782.82 | 10.61% | 22,582,382,344.27 | 15.95% | -5.34% | | Accounts Receivable | 42,725,575,788.70 | 30.84% | 40,383,528,132.47 | 28.53% | 2.31% | | Contract Assets | 33,080,313,942.42 | 23.88% | 32,925,245,046.74 | 23.26% | 0.62% | | Contract Liabilities | 20,147,042,179.13 | 14.54% | 19,155,650,727.10 | 13.53% | 1.01% | | Long-Term Borrowings | 23,887,979,410.24 | 17.24% | 23,539,753,932.60 | 16.63% | 0.61% | | Lease Liabilities | 788,876,047.39 | 0.57% | 464,924,796.47 | 0.33% | 0.24% | Assets and Liabilities Measured at Fair Value | Item | Period-End Amount (RMB) | | :--- | :--- | | Financial assets held for trading | 600,000,000.00 | | Other equity instrument investments | 690,186,309.96 | | Notes receivable financing | 19,169,188.32 | | Total above | 1,309,355,498.28 | - The company's main asset measurement attributes did not undergo significant changes during the reporting period[63] 6. Analysis of Investment Status Total investments increased by 1.99% during the reporting period, primarily through equity investments in subsidiaries for clean energy and construction, and non-equity investments in clean energy projects and equipment manufacturing bases Investment Amount During Reporting Period | Indicator | Amount (RMB) | | :--- | :--- | | Investment amount during reporting period | 1,539,571,128.05 | | Investment amount in prior year period | 1,509,504,049.42 | | Change | 1.99% | - Significant equity investments acquired during the reporting period primarily include capital increases in Guangdong Hydropower Rail Transit Construction Co., Ltd. and Guangdong Hydropower Energy Investment Group Co., Ltd., as well as the acquisition of equity in 5 photovoltaic power generation companies including Suixi Yongrui Modern Agriculture Technology Co., Ltd., aiming to expand engineering construction and clean energy business scale[67][68][69] - Significant non-equity investments currently underway during the reporting period are mainly concentrated in clean energy generation projects (such as wind power, photovoltaic, and integrated solar-storage projects) and construction equipment manufacturing bases, with most investments being self-built and funded by own capital and financial institution loans[71][72][73][74][75][76][77][78][79] 7. Significant Asset and Equity Disposals The company did not undertake any significant asset or equity disposals during the reporting period - The company did not dispose of significant assets during the reporting period[83] - The company did not dispose of significant equity during the reporting period[84] 8. Analysis of Major Holding and Participating Companies Major holding subsidiaries like Guangdong Hydropower No. 2 Bureau Group and Guangdong Basic Engineering Group significantly contributed to revenue and net profit in engineering construction, with 13 new subsidiaries added to expand business Major Subsidiaries and Participating Companies with >10% Impact on Net Profit | Company Name | Company Type | Main Business | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Guangdong Hydropower No. 2 Bureau Group Co., Ltd. | Subsidiary | Engineering Construction | 500,000,000.00 | 33,943,203,466.85 | 4,030,408,785.11 | 2,261,168,317.57 | 153,113,047.34 | 90,406,889.30 | | Guangdong Basic Engineering Group Co., Ltd. | Subsidiary | Engineering Construction | 300,000,000.00 | 13,220,808,143.83 | 1,721,680,452.00 | 3,467,528,698.61 | 57,525,663.49 | 53,541,334.09 | | Guangdong Water Conservancy and Hydropower Third Engineering Bureau Co., Ltd. | Subsidiary | Engineering Construction | 350,000,000.00 | 13,158,473,235.72 | 1,394,186,746.87 | 3,973,034,327.54 | 88,371,977.45 | 75,340,435.65 | | Guangdong Yuantian Engineering Co., Ltd. | Subsidiary | Engineering Construction | 350,000,000.00 | 11,120,171,803.22 | 835,549,583.91 | 3,773,723,537.51 | 84,884,474.06 | 86,766,585.05 | - During the reporting period, the company added 13 subsidiaries through acquisition and new investment, primarily to expand its engineering construction, clean energy, and smart equipment manufacturing business scale and increase operating profit[85] 9. Information on Structured Entities Controlled by the Company The company reported no structured entities under its control during the reporting period - The company reported no structured entities under its control during the reporting period[87] 10. Risks Faced by the Company and Countermeasures The company faces policy, market competition, and investment risks, which it addresses by enhancing policy research, strengthening core businesses, improving competitiveness, and implementing scientific decision-making and robust risk management - The main risks the company may face in the future include: policy risks (changes in infrastructure construction and clean energy policies), market competition risks (fierce competition in the construction market), and investment risks (large project investment scale, long cycles, and many uncertainties)[87] - Countermeasures include: increasing policy research and timely adjusting development strategies; strengthening and expanding the company's main business, enhancing competitive advantages in technological innovation, project management, engineering quality, and brand image; grasping investment directions, adhering to scientific decision-making, and improving comprehensive risk management and internal control systems[87] 11. Implementation of Market Value Management System and Valuation Enhancement Plan The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - The company did not formulate a market value management system during the reporting period[88] - The company did not disclose a valuation enhancement plan during the reporting period[88] 12. Implementation of "Quality and Return Dual Enhancement" Action Plan The company did not disclose an announcement regarding the "Quality and Return Dual Enhancement" action plan during the reporting period - The company did not disclose an announcement regarding the "Quality and Return Dual Enhancement" action plan during the reporting period[88] Section IV Corporate Governance, Environment, and Society 1. Changes in Directors, Supervisors, and Senior Management During the reporting period, Vice Chairman Ma ChunSheng resigned from his positions due to work relocation - On March 6, 2025, Vice Chairman Ma ChunSheng resigned from his positions as Vice Chairman, Director, and member of the Board's Remuneration and Appraisal Committee due to work relocation[90] 2. Profit Distribution and Capital Reserve Conversion to Share Capital During the 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[91] 3. Implementation of 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 or implemented during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures in place or implemented during the reporting period[92] 4. Environmental Information Disclosure The company and three major subsidiaries are included in the list of enterprises required to disclose environmental information, with relevant data published on the Guangdong Provincial Department of Ecology and Environment system - The listed company and its major subsidiaries included in the list of enterprises required to disclose environmental information total 3 companies[93] - The included enterprises are Fengkai County YueShuiDian Environmental Protection Industrial Co., Ltd., Guangdong YueShuiDian Equipment Group Co., Ltd., and Guangdong YueShuiDian New Energy Equipment Co., Ltd.[93][94] - Relevant environmental information is disclosed on the Guangdong Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System[93][94] 5. Social Responsibility The company and its subsidiaries actively fulfill social responsibilities by promoting rural revitalization, supporting local development in Shaoguan, and deploying emergency response teams for disaster relief, earning government recognition - The company and its subsidiaries are comprehensively implementing the "Hundred Counties, Thousand Towns, Ten Thousand Villages" project, contributing to a new landscape of coordinated urban-rural regional development[95] - The company deeply explores the actual needs of its paired assistance area, ZhouTian Town, Renhua County, Shaoguan City, and assists local development, environmental improvement, livelihood protection, and income generation through initiatives such as road renovation, housing reconstruction, green and beautiful rural construction, and consumption assistance[95] - Three provincial flood control and emergency rescue teams dispatched a total of 322 personnel and 87 pieces of rescue equipment, completing 21 tasks for disaster relief and emergency handling in Zhaoqing, Yunfu, Maoming, Qingyuan, and other areas, receiving letters of appreciation from the Provincial Emergency Management Department and local governments[95] Section V Significant Matters 1. Commitments Fulfilled and Overdue Unfulfilled by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period The company reported no fulfilled or overdue unfulfilled commitments by its actual controller, shareholders, related parties, acquirers, or the company itself during or as of the end of the reporting period - The company reported no commitments by its actual controller, shareholders, related parties, acquirers, or the company itself that were fulfilled during the reporting period or overdue and unfulfilled as of the end of the reporting period[97] 2. Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties from the Listed Company The company reported no non-operating funds occupied by controlling shareholders or other related parties from the listed company during the reporting period - The company reported no non-operating funds occupied by controlling shareholders or other related parties from the listed company during the reporting period[98] 3. Irregular External Guarantees The company reported no irregular external guarantees during the reporting period - The company reported no irregular external guarantees during the reporting period[99] 4. Appointment and Dismissal of Accounting Firms The company's semi-annual report was unaudited - The company's semi-annual report was unaudited[100] 5. Board of Directors' and Supervisory Board's Explanations on "Non-Standard Audit Report" for the Current Period The company reported no explanations from the Board of Directors or Supervisory Board regarding a "non-standard audit report" for the current period - The company reported no explanations from the Board of Directors or Supervisory Board regarding a "non-standard audit report" for the current period[101] 6. Board of Directors' Explanations on "Non-Standard Audit Report" for the Previous Year The company reported no explanations from the Board of Directors regarding a "non-standard audit report" for the previous year - The company reported no explanations from the Board of Directors regarding a "non-standard audit report" for the previous year[101] 7. Bankruptcy Reorganization Matters The company reported no bankruptcy reorganization matters during the reporting period - The company reported no bankruptcy reorganization matters during the reporting period[101] 8. Litigation Matters The company is involved in a significant litigation arbitration case concerning a highway construction contract dispute with a claim amount of 382.56 million RMB, currently in the judicial appraisal stage of a retrial, and also saw 716 new cases totaling 1,289.62 million RMB, not expected to materially impact financial condition - The company undertook the No. 2 contract section of the highway civil engineering project for Nanyang WandaXin Highway Construction Co., Ltd., and initiated a lawsuit due to the other party's arrears in project payments, with the case involving 382.56 million RMB and currently in the judicial appraisal stage commissioned by the Supreme People's Court[103] - In the first half of 2025, the company and its subsidiaries had 716 new litigation (arbitration) cases, including 650 litigation cases and 66 arbitration cases, with a total amount involved of 1,289.62 million RMB[104] - These litigation and arbitration matters are not expected to have a material adverse impact on the company's financial condition and continuous operating capability[104] 9. Penalties and Rectification The company reported no penalties or rectification situations during the reporting period - The company reported no penalties or rectification situations during the reporting period[105] 10. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the reporting period, the company, its controlling shareholder, and actual controller had no unfulfilled court judgments or large overdue debts - During the reporting period, the company, its controlling shareholder, and actual controller had no unfulfilled court judgments or large overdue debts[106] 11. Significant Related Party Transactions The company engaged in daily operating related party transactions, primarily for receiving labor and selling goods/providing services, including a 619.86 million RMB engineering construction contract with Dongguan Sanju Industrial Development Co., Ltd., a subsidiary controlled by the controlling shareholder Related Party Transactions for Purchase/Sale of Goods and Receipt/Provision of Services | Related Party | Related Transaction Content | Amount in Current Period (RMB) | | :--- | :--- | :--- | | Guangdong Hydropower Third Bureau Dongguan Sanju Industrial Development Co., Ltd. | Phase I General Contracting for Electronic Smart Engineering Manufacturing and Construction Project | 619,864,900.00 | - The company reported no related party transactions involving the acquisition or disposal of assets or equity during the reporting period[109] - The company reported no related party creditor-debtor transactions during the reporting period[111] 12. Significant Contracts and Their Performance During the reporting period, the company had entrustment, leasing, and significant guarantee matters, including entrusted management of subsidiaries, leasing of shield tunneling equipment, and guarantees for subsidiaries totaling 6,329.37 million RMB, representing 46.61% of net assets, along with entrusted wealth management of 681.51 million RMB - The company is entrusted with the operation and management rights of Yangshan County Qingshuang Power Station, Guangdong Construction Decoration Group Co., Ltd., and Guangdong Hydropower Yunnan Investment Co., Ltd.[116][117] - The company and its subsidiaries lease multiple shield tunneling equipment for projects such as the Guangdong Eastern Intercity Railway Project and Guangzhou Metro Fangcun to Baiyun Airport Intercity Project, with some equipment returned or currently in use[120][121][122][123][124] Total Company Guarantees | Indicator | Amount (RMB 10,000) | | :--- | :--- | | Total approved guarantee limit at period-end | 3,043,994.38 | | Total actual guarantee balance at period-end | 632,937.07 | | Proportion of actual total guarantees to company's net assets | 46.61% | | Of which: Debt guarantees provided directly or indirectly for guaranteed parties with asset-liability ratio exceeding 70% | 453,507.91 | Entrusted Wealth Management | Specific Type | Entrusted Wealth Management Amount (RMB 10,000) | Unexpired Balance at Period-End (RMB 10,000) | | :--- | :--- | :--- | | Bank wealth management products | 145,062.9 | 68,150.98 | | Total | 145,062.9 | 68,150.98 | 13. Explanation of Other Significant Matters The company signed new major operating contracts, including large-scale construction projects, and continued to implement previous engineering and investment contracts, while also completing internal equity transfers and capital increases for subsidiaries to optimize resource allocation - During the reporting period, the company signed several new major operating contracts, including the general contracting contract for the Guilin Lijiang River Source International Hot Spring Health and Wellness and Lingqu Historical and Cultural Tourism Project (approximately 2 billion RMB), and the general contracting contract for the Zhangzhou Super City Complex Hotel Project (estimated 3.29 billion RMB)[136] - The company signed an agreement with the Qitai County People's Government of Changji Hui Autonomous Prefecture, Xinjiang Uygur Autonomous Region, for a professional steel structure factory project with an annual output of over 40,000 tons, with a planned total investment of 200 million RMB, and the first phase production workshop has been put into use[169] - The company acquired equity in 25 controlling subsidiaries held by its wholly-owned subsidiary, Guangdong Construction Engineering Group, and increased capital in Guangdong Construction Engineering Group by 4.5 billion RMB using its own funds, with 100 million RMB recorded as registered capital and 4.4 billion RMB as capital reserve, aiming to shorten equity layers, streamline property rights and management relationships, and enhance market competitiveness[188] - The company internally transferred equity and assets of some subsidiaries to its wholly-owned subsidiary, Guangdong Hydropower No. 2 Bureau, with 4 energy-related subsidiaries already transferred to Guangdong YueShuiDian Energy Investment Group Co., Ltd., to implement development strategies, optimize resource allocation, and improve management efficiency[189] 14. Significant Matters of Company Subsidiaries The company's subsidiary, Huasui Construction, committed 40 million RMB to invest in a private equity fund, which has been established but Huasui Construction has not yet made its capital contribution - The company's subsidiary, Huasui Construction, committed 40 million RMB to participate in the investment of Guangdong Fogao Kechuang No. 1 Equity Investment Partnership (Limited Partnership)[191] - As of the disclosure date of this report, the fund has been established, but due to changes in original shareholders, Huasui Construction has not yet made its capital contribution[191] Section VI Share Changes and Shareholder Information 1. Share Capital Changes During the reporting period, the company's total share capital remained unchanged at 3,754,393,242 shares, with the structure of restricted and unrestricted shares also remaining constant, and Guangdong Construction Engineering Group Holdings Co., Ltd. holding 2,191,452,567 restricted shares due to a major asset restructuring Share Capital Changes | Share Type | Quantity Before Change (shares) | Proportion Before Change | Increase/Decrease in Current Change (shares) | Quantity After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 2,191,578,582 | 58.37% | 0 | 2,191,578,582 | 58.37% | | II. Unrestricted Shares | 1,562,814,660 | 41.63% | 0 | 1,562,814,660 | 41.63% | | III. Total Shares | 3,754,393,242 | 100.00% | 0 | 3,754,393,242 | 100.00% | Changes in Restricted Shares | Shareholder Name | Restricted Shares at Period-End (shares) | Reason for Restriction | Date of Lifting Restriction | | :--- | :--- | :--- | :--- | | Guangdong Construction Engineering Group Holdings Co., Ltd. | 2,191,452,567 | Major Asset Restructuring | February 14, 2026 | | Xie YanHui | 75,015 | Senior Management Lock-up | September 16, 2026 | | Lu DaPeng | 36,000 | Senior Management Lock-up | September 16, 2026 | | Lin GuangXi | 15,000 | Senior Management Lock-up | September 16, 2026 | 2. Securities Issuance and Listing The company reported no securities issuance or listing activities during the reporting period - The company reported no securities issuance or listing activities during the reporting period[197] 3. Number of Shareholders and Shareholding Structure At the end of the reporting period, the company had 73,664 common shareholders, with Guangdong Construction Engineering Group Holdings Co., Ltd. as the controlling shareholder holding 70.05% of shares, and China Great Wall Life Insurance Co., Ltd. - Own Funds as the second largest shareholder with 4.56% - At the end of the reporting period, the total number of common shareholders was 73,664[198] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Shares Held at Period-End (shares) | Restricted Shares Held (shares) | Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Guangdong Construction Engineering Group Holdings Co., Ltd. | State-owned Legal Person | 70.05% | 2,630,045,497 | 2,191,452,567 | 438,592,930 | | China Great Wall Life Insurance Co., Ltd. - Own Funds | Other | 4.56% | 171,158,033 | 0 | 171,158,033 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.73% | 27,519,563 | 0 | 27,519,563 | - Among the company's top 10 shareholders, Guangdong Construction Engineering Group Holdings Co., Ltd. and Guangdong Provincial Academy of Building Research Group Co., Ltd. are parties acting in concert[199] 4. 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, as detailed in the 2024 annual report - The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period, as detailed in the 2024 annual report[201] 5. Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[202] - The company's actual controller remained unchanged during the reporting period[202] Section VII Bond-Related Information The company reported no bond-related information during the reporting period - The company reported no bond-related information during the reporting period[205] Section VIII Financial Report 1. Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[207] 2. Financial Statements This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, providing a comprehensive overview of financial position, operating results, and cash flows - This section includes the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025[208][212][216][220][223][225][228][235] 3. Company Basic Information Guangdong Construction Engineering Group Co., Ltd., established on December 27, 2001, and listed on August 10, 2006, with stock code 002060, has a total share capital of 3,754,393,242 shares and is ultimately controlled by the Guangdong Provincial State-owned Assets Supervision and Administration Commission, with 309 subsidiaries included in its consolidated financial statements - Guangdong Construction Engineering Group Co., Ltd. was established on December 27, 2001, and listed on the Shenzhen Stock Exchange on August 10, 2006, with stock code 002060[241] - As of June 30, 2025, the company's cumulative issued share capital totaled 3,754,393,242 shares, with a registered capital of 3,754,393,242.00 RMB[241] - The company's ultimate actual controller is the Guangdong Provincial People's Government State-owned Assets Supervision and Administration Commission, and its main business covers the "large construction industry" chain, including construction engineering, water conservancy and hydropower engineering, municipal public engineering, and highway engineering, as well as clean energy generation and equipment manufacturing businesses[241] - As of June 30, 2025, the company had 309 subsidiaries included in the scope of consolidated financial statements, with 13 added and 1 reduced during the year[242] 4. Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, adhering to the "Accounting Standards for Business Enterprises" and relevant disclosure rules, using the accrual basis of accounting and historical cost measurement - The company's financial statements are prepared on a going concern basis, in accordance with the "Accounting Standards for Business Enterprises" issued by the Ministry of Finance and the disclosure requirements of the "Information Disclosure Rules for Companies Issuing Securities to the Public No. 15 - General Provisions for Financial Reports (Revised 2023)" issued by the China Securities Regulatory Commission, based on actual transactions and events[243] - The company evaluated its ability to continue as a going concern for 12 months from the end of the reporting period and found no matters or circumstances that would cast significant doubt on its ability to continue as a going concern[244] - The company's accounting is based on the accrual basis, and except for certain financial instruments, all are measured at historical cost[245] 5. Significant Accounting Policies and Estimates The company has established specific accounting policies and estimates for inventory valuation, expected credit loss provisions, depreciation, amortization, and revenue recognition, covering business combinations, financial instruments, long-term equity investments, and other key areas to ensure accurate and compliant financial reporting - Based on its actual production and operation characteristics, and in accordance with the provisions of relevant enterprise accounting standards, the company has formulated several specific accounting policies and estimates for transactions and events such as inventory valuation methods, methods for accruing expected credit losses on receivables, depreciation of fixed assets, amortization of right-of-use assets and intangible assets, and revenue recognition points[246] - The financial statements prepared by the company comply with the requirements of enterprise accounting standards and truly and completely reflect the company's financial position as of June 30, 2025, and its operating results and cash flows for the first half of 2025, among other relevant information[247] - The company needs to make significant accounting judgments and estimates when assessing expected credit losses for accounts receivable and other receivables, inventory impairment, impairment of long-term assets, estimated useful lives and net residual values of fixed assets, fair value of financial assets, and deferred income tax assets and income tax[396][397][398][399] 6. Taxation The company's main taxes include VAT, urban maintenance and construction tax, corporate income tax, and education surcharges, with various subsidiaries enjoying preferential income tax rates and "three-year exemption, three-year half reduction" policies for public infrastructure projects, while overseas subsidiaries apply local tax rates Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable income calculated using applicable tax rates for output tax, and paid based on the difference after deducting deductible input tax for the current period | 13%, 9%, 6%, 3% | | Urban Maintenance and Construction Tax | Calculated based on actual VAT paid | 7%, 5%, 1% | | Corporate Income Tax | Taxable income | 25%, 20%, 15%, 12%, 3% | | Local Education Surcharge | Calculated based on actual VAT paid | Paid according to company's location policy | | Education Surcharge | Calculated based on actual VAT paid | Paid according to company's location policy | - The company and some subsidiaries enjoy tax preferential policies such as a 15% income tax rate for high-tech enterprises, a 15% income tax rate for Western Development, income tax preferences for small and micro enterprises, and "three-year exemption, three-year half reduction" for public infrastructure projects[408][409] - Subsidiaries established in Laos apply a 20% profit tax, and subsidiaries established in Macau apply a 12% income tax rate[412] 7. Notes to Consolidated Financial Statement Items This section details the period-end and period-beginning balances and changes for key consolidated financial statement items, including monetary funds, accounts receivable, fixed assets, borrowings, operating revenue, and operating costs, highlighting a 10.64% increase in revenue and a significant decrease in net cash flow from operating activities Overview of Major Consolidated Financial Statement Items | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | Change | | :--- | :--- | :--- | :--- | | Monetary Funds | 14,706,556,782.82 | 22,582,382,344.27 | Decrease | | Accounts Receivable | 42,725,575,788.70 | 40,383,528,132.47 | Increase | | Fixed Assets | 20,808,207,967.32 | 20,788,542,134.52 | Slight Increase | | Short-Term Borrowings | 7,923,167,691.57 | 8,035,355,743.39 | Slight Decrease | | Long-Term Borrowings | 23,887,979,410.24 | 23,539,753,932.60 | Increase | | Operating Revenue | 29,312,075,211.47 | 26,492,563,603.13 | Growth 10.64% | | Operating Cost | 26,527,739,266.34 | 23,748,486,663.76 | Growth 11.70% | | Net Cash Flow from Operating Activities | -5,853,004,305.18 | 70,249,992.79 | Significant Decrease | | Net Profit Attributable to Parent Company Owners | 350,391,840.66 | 457,670,853.66 | Decrease 23.44% | - The book value of assets with restricted ownership or use rights at period-end was 5.962 billion RMB, primarily including monetary funds, notes receivable, fixed assets, and other non-current assets, with restrictions due to judicial freezing, guarantees, and asset-backed financing[150] - The book value of goodwill was 24.61 million RMB, with impairment provisions of 5.61 million RMB, resulting in a net amount of 19.00 million RMB, mainly allocated to power generation, product sales, design services, and construction asset groups[146][147] 8. Research and Development Expenses During the reporting period, total R&D investment increased by 7.60% to 823.65 million RMB, with 802.37 million RMB expensed and 21.28 million RMB capitalized, focusing on financial information systems, deep-hole blasting, and smart solar streetlights Research and Development Expenses | Item | Amount in Current Period (RMB) | Amount in Prior Period (RMB) | | :--- | :--- | :--- | | Employee Compensation | 302,444,258.59 | 270,317,128.99 | | Experimental Materials | 463,847,483.28 | 435,478,515.23 | | Depreciation and Amortization | 43,957,703.63 | 31,278,945.66 | | Total | 823,647,789.03 | 765,464,854.01 | | Of which: Expensed R&D | 802,370,874.14 | 753,570,267.43 | | Capitalized R&D | 21,276,914.89 | 11,894,586.58 | - Capitalized R&D projects include a financial information system and data middle platform, a deep-hole blasting resistance line measurement device, a protective structure suitable for chimney/water tower blasting demolition, and a blasting charge process for building granite that enhances blasting effects[173][174] 9. Changes in Consolidation Scope During the reporting period, the company's consolidation scope changed with the addition of 10 newly established subsidiaries and 3 acquired subsidiaries, and the liquidation of 1 subsidiary, primarily to expand clean energy and construction businesses - Newly established subsidiaries this year include Liaoning Yuetou Construction Development Co., Ltd., Shanyang County YueShuiDian Energy Co., Ltd., Zhuzhou XinYue New Energy Development Co., Ltd., and 7 other companies[174][175] - Newly acquired subsidiaries this year include Yibin Guangjian Construction Engineering Co., Ltd., Guangdong Huijian YueShuiDian Engineering Co., Ltd., and Guangdong YueShuiDian Energy Engineering Co., Ltd., with these acquisitions being asset acquisitions rather than business acquisitions[175] - The subsidiary no longer included in the consolidation scope this year is Yangchun City Guangjian Chunzhou Engineering Construction Co., Ltd., due to liquidation and deregistration[175] 10. Interests in Other Entities The company controls 309 subsidiaries, with Guangdong Huasui Construction Group Co., Ltd. being a significant non-wholly owned subsidiary, and also holds interests in several important joint ventures and associates accounted for using the equity method - The company owns 309 subsidiaries, with business natures covering manufacturing, processing, installation, investment, construction, operation and maintenance, engineering construction, housing construction, construction machinery manufacturing, and architectural design[242][712][713][714] Financial Information of Significant Non-Wholly Owned Subsidiaries | Subsidiary Name | Minority Shareholding Proportion | Net Profit Attributable to Minority Shareholders in Current Period (RMB) | Minority Interest Balance at Period-End (RMB) | | :--- | :--- | :--- | :--- | | Guangdong Huasui Construction Group Co., Ltd. | 23.21% | 4,389,938.45 | 309,840,139.12 | - The company's significant associate is Guangdong Jiansheng Municipal Construction Investment Co., Ltd., with a shareholding proportion of 50.10%, accounted for using the equity method[727] 11. Government Grants At the end of the reporting period, deferred income from asset-related government grants was 19.74 million RMB, decreasing by 1.54 million RMB, while government grants recognized in current profit or loss totaled 31.79 million RMB, mainly in other income Liability Items Involving Government Grants | Accounting Account | Period-Beginning Balance (RMB) | Decrease in Current Period (RMB) | Period-End Balance (RMB) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 21,280,498.98 | 1,543,795.50 | 19,736,703.48 | Asset-related | Government Grants Recognized in Current Profit or Loss | Accounting Account | Amount in Current Period (RMB) | Amount in Prior Period (RMB) | | :--- | :--- | :--- | | Other Income | 31,792,555.12 | 30,844,554.73 | 12. Risks Related to Financial Instruments The company manages credit, liquidity, and market risks (including exchange rate, interest rate, and price risks) through credit policies, continuous monitoring of receivables, maintaining suff