城建设计(01599) - 2025 - 中期业绩

Definitions This section defines key terms used throughout the report, including the reporting period, the Company, and the Group - The reporting period refers to the six months ended June 30, 2025[8] - The Company refers to Beijing Urban Construction Design & Development Group Co., Limited[7] - The Group or 'we' refers to the Company and its subsidiaries[7] Company Information This section provides fundamental details about the Company, including its official names, listing venue, registered address, and auditor Company Basic Information | Indicator | Content | | :--- | :--- | | Chinese Name | 北京城建設計發展集團股份有限公司 | | English Name | Beijing Urban Construction Design & Development Group Co., Limited | | H-share Listing Venue | The Stock Exchange of Hong Kong Limited | | Stock Code | 1599 | | Registered Address | No. 5 Fuchengmen North Street, Xicheng District, Beijing, China | | Legal Representative | Mr. Pei Hongwei | | Website | www.bjucd.com | | Auditor | Da Hua Certified Public Accountants (Special General Partnership) | Management Discussion and Analysis Overview In H1 2025, the Company's revenue and net profit declined, primarily due to a slowdown in urban rail transit construction investment, prompting active marketing and efficiency initiatives H1 2025 Operating Performance Summary | Indicator | H1 2025 (thousand yuan) | H1 2024 (thousand yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,586,319 | 4,178,988 | -14.19% | | Net Profit | 239,389 | 370,785 | -35.58% | - The urban rail transit construction industry continues to slow, prompting the Company to strengthen full-产业链 collaborative marketing around 10 national marketing centers, solidify its development foundation, and diligently promote quality and efficiency improvements[10] Revenue The Group's H1 2025 revenue was 3.586 billion yuan, a 14.19% YoY decrease, mainly due to fewer new engineering construction projects, with significant reductions in engineering contracting revenue Revenue by Business Segment The Group's revenue primarily stems from design, survey, and consulting services and engineering contracting, with H1 2025 revenues of 1.993 billion yuan and 1.593 billion yuan, respectively Revenue by Business Segment (thousand yuan) | Product Area | 2025 | 2024 | | :--- | :--- | :--- | | Design, Survey, and Consulting Services | 1,993,527 | 2,017,527 | | Engineering Contracting Services | 1,592,792 | 2,161,461 | | Total | 3,586,319 | 4,178,988 | Design, Survey, and Consulting Business Segment The design, survey, and consulting business, a core segment, generated 1.993 billion yuan in H1 2025, a 1.24% YoY decrease, with urban rail transit engineering revenue down 7.18% but industrial, civil, and municipal engineering revenue up 17.07% Design, Survey, and Consulting Business Segment Revenue (thousand yuan) | Business Type | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Design, Survey, and Consulting Segment Revenue | 1,993,527 | 2,017,527 | -1.24% | | Urban Rail Transit Engineering Segment Revenue | 1,410,000 | 1,519,000 | -7.18% | | Industrial and Civil Building and Municipal Engineering Segment Revenue | 583,000 | 498,000 | +17.07% | - In the rail transit sector, the Company won bids for key projects such as Chengdu Line 27 Phase II and Xiamen-Zhangzhou-Quanzhou Intercity Railway (Xiamen Section), and undertook network planning tasks for multiple cities[14] - Actively cultivating new businesses, expanding into emerging areas such as intelligent computing, photovoltaics, autonomous driving, water environment governance, urban renewal, and urban lifeline systems[14] Engineering Contracting Business Segment The engineering contracting business segment's H1 2025 revenue significantly decreased by 26.28% to 1.593 billion yuan, primarily due to fewer new construction projects, with successful bids concentrated in major cities like Beijing, Guangzhou, and Chongqing Engineering Contracting Business Segment Revenue (thousand yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Engineering Contracting Business Segment Revenue | 1,593,000 | 2,161,000 | -26.28% | - Won bids for Beijing R4 Line Phase I North Section, Hanyuan County Municipal Road Renovation Project in Sichuan Province, and Qingdao Metro Depot Photovoltaic EPC Project[15] - Ongoing engineering contracting projects are primarily concentrated in cities such as Beijing, Guangzhou, Chongqing, Urumqi, Nanjing, and Qingdao[15] Operating Costs The Group's H1 2025 operating costs were 2.893 billion yuan, a 14.00% YoY decrease, reflecting cost reduction and efficiency gains, with design, survey, and consulting costs slightly up and engineering contracting costs down 24.36% Operating Costs (thousand yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Costs | 2,893,377 | 3,363,630 | -14.00% | | Design, Survey, and Consulting Segment Operating Costs | 1,418,000 | 1,413,000 | +0.35% | | Engineering Contracting Segment Operating Costs | 1,475,000 | 1,950,000 | -24.36% | - The Company achieved certain results in cost reduction and efficiency improvement by reasonably determining budget expenditure scale and strictly controlling non-essential and non-urgent expenses[16] Gross Profit and Gross Margin The Group's H1 2025 gross profit was 693 million yuan, a 14.97% YoY decrease, with the overall gross margin slightly down to 19.32%, and both design, survey, and consulting and engineering contracting segments experiencing margin declines Gross Profit and Gross Margin (thousand yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Gross Profit | 692,942 | 815,358 | -14.97% | | Overall Gross Margin | 19.32% | 19.51% | -0.19% | | Design, Survey, and Consulting Segment Gross Profit | 575,000 | 604,000 | -4.80% | | Design, Survey, and Consulting Segment Gross Margin | 28.86% | 29.95% | -1.09% | | Engineering Contracting Segment Gross Profit | 118,000 | 211,000 | -44.08% | | Engineering Contracting Segment Gross Margin | 7.38% | 9.77% | -2.39% | - The decrease in gross margin for the design, survey, and consulting segment was primarily due to a reduced proportion of higher-margin rail transit business[17] Selling Expenses H1 2025 selling expenses were 26.75 million yuan, a 6.73% YoY decrease, attributed to strengthened collaborative development, integrated sales resources, and rational expenditure control Selling Expenses (million yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Selling Expenses | 26.75 | 28.68 | -6.73% | - The decrease in selling expenses was mainly due to the Group's strengthened collaborative development, integrated sales resources, and rational expenditure control[18] Administrative Expenses H1 2025 administrative expenses were 223.21 million yuan, a 2.01% YoY decrease, primarily due to the Company's enhanced budget management and strict control over non-operating expenditures Administrative Expenses (million yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 223.21 | 227.80 | -2.01% | - The decrease in administrative expenses was mainly due to the Group's strengthened budget management and strict control over non-operating expenditures[19] Research and Development Expenses H1 2025 R&D expenses were 141.90 million yuan, a 3.89% YoY decrease, primarily due to the Company's integration of internal R&D resources and improved resource utilization efficiency Research and Development Expenses (million yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | R&D Expenses | 141.90 | 147.64 | -3.89% | - The decrease in R&D expenses was mainly due to the Group's integration of internal R&D resources and improved resource utilization efficiency[20] Financial Expenses H1 2025 financial expenses were -55.30 million yuan, an 8.26% YoY decrease, primarily due to lower borrowing interest rates and reduced interest expenses Financial Expenses (million yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Financial Expenses | -55.30 | -51.08 | -8.26% | | Interest Expense | 119.79 | 141.44 | -15.24% | | Interest Income | 180.98 | 197.66 | -8.44% | - The decrease in financial expenses was mainly due to lower borrowing interest rates, leading to reduced interest expenses[21] Investment Income H1 2025 investment income was 44.27 million yuan, a 37.95% YoY decrease, primarily due to reduced net profit from joint ventures and associates Investment Income (million yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Investment Income | 44.27 | 71.35 | -37.95% | - The decrease in investment income was mainly due to reduced net profit from joint ventures and associates[22] Credit Impairment Losses H1 2025 credit impairment losses were 18.32 million yuan, a 62.19% YoY decrease, primarily due to intensified collection efforts and recovery of some long-aged accounts receivable Credit Impairment Losses (million yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Credit Impairment Losses | 18.32 | 48.45 | -62.19% | - The decrease in credit impairment losses was mainly due to intensified collection efforts and the recovery of some long-aged accounts receivable[23] Asset Impairment Losses H1 2025 asset impairment losses increased by 44.55% to 75.83 million yuan, primarily due to an increase in long-aged contract assets and the corresponding impairment provisions Asset Impairment Losses (million yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Asset Impairment Losses | 75.83 | 52.46 | +44.55% | - The increase in asset impairment losses was mainly due to an increase in long-aged contract assets, leading to impairment provisions[24] Income Tax Expense H1 2025 income tax expense was 52.44 million yuan, a 13.08% YoY decrease, primarily due to a reduction in current income tax expense Income Tax Expense (million yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 52.44 | 60.33 | -13.08% | - The decrease in income tax expense was mainly due to a reduction in current income tax expense[25] Net Profit In H1 2025, the Group's net profit was 239 million yuan, representing a 35.58% year-on-year decrease Net Profit (billion yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Profit | 0.239 | 0.371 | -35.58% | Cash Flow In H1 2025, the Group reported net cash outflows of 1.04 billion yuan from operating activities, 24 million yuan from investing activities, and 124 million yuan from financing activities, resulting in a net decrease of 1.188 billion yuan in cash and cash equivalents Cash Flow (thousand yuan) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash Outflow from Operating Activities | (1,039,803) | (721,076) | | Net Cash Outflow from Investing Activities | (24,416) | (87,615) | | Net Cash Outflow from Financing Activities | (123,581) | (263,928) | | Net Decrease in Cash and Cash Equivalents | (1,187,800) | (1,072,619) | - The increase in net cash outflow from operating activities was mainly due to operating cash receipts being less than operating cash payments during the period[27] - The decrease in net cash outflow from financing activities was mainly due to a net increase of 29 million yuan in the Company's short-term bank borrowings and interest expenses of approximately 101 million yuan repaid during the year[27] Asset Pledges As of June 30, 2025, the Group's contract assets, accounts receivable, and intangible assets were pledged as collateral for bank loans, with a net value of 6,321 million yuan Net Pledged Assets (million yuan) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Pledged Receivables and Intangible Assets | 6,321 | 6,224 | - Pledged assets include contract assets, accounts receivable, and intangible assets, used as collateral for bank loans[28] Contingent Liabilities As of June 30, 2025, the Group had no other significant contingent liabilities - As of June 30, 2025, the Group had no other significant contingent liabilities[29] Capital Commitments As of June 30, 2025, the Group's contracted but unprovided capital commitments, primarily for property, plant, and equipment and equity investments, totaled approximately 1.239 billion yuan Capital Commitments (thousand yuan) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Property, Plant, and Equipment | 146,998 | 150,149 | | Equity Investments | 1,092,871 | 1,083,871 | | Total | 1,239,869 | 1,234,020 | Capital Structure and Financial Resources The Group's equity capital consists mainly of domestic and H shares, while debt capital primarily comprises bank and other borrowings; as of June 30, 2025, net current assets were 2.424 billion yuan, cash and cash equivalents were 1.855 billion yuan, and the asset-liability ratio was 82.99% Capital Structure and Financial Resources Overview | Indicator | June 30, 2025 (yuan) | | :--- | :--- | | Net Current Assets | 2,424 million yuan | | Cash and Cash Equivalents | 1,855 million yuan | | Interest-bearing Borrowings | 6.658 billion yuan | | Asset-Liability Ratio | 82.99% | - The Group maintains a healthy liquidity position with diverse financing options and channels, including available bank financing, to meet its operational needs[31] Debt Situation As of June 30, 2025, the Group's total borrowings amounted to 6.658 billion yuan, with pledged bank loans constituting the largest portion, and long-term debt maturing in over five years representing the highest proportion of total debt maturities Total Borrowings (thousand yuan) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank Borrowings (Pledged) | 4,674,212 | 4,757,366 | | Bank Borrowings (Unpledged and Unsecured) | 542,602 | 429,529 | | Other Borrowings (Unpledged and Unsecured) | 1,176,699 | 1,164,314 | | Lease Liabilities (Unpledged and Unsecured) | 264,216 | 267,628 | | Total | 6,657,729 | 6,618,837 | Debt Maturity Profile (thousand yuan) | Maturity Date | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within One Year | 1,731,843 | 1,599,023 | | Second Year | 385,909 | 450,593 | | Third to Fifth Year | 1,199,502 | 2,464,499 | | Over Five Years | 3,340,475 | 2,104,722 | | Total | 6,657,729 | 6,618,837 | - Borrowings are denominated in RMB, with interest rates ranging from 1.81% to 4.90%[33] Significant Investments The Group made a significant investment of 2.098 billion yuan in Yunnan Jingjian Rail Transit Investment and Construction Co., Ltd., representing 8.9% of total assets, to enhance profitability, expand market reach, and integrate the industrial chain Significant Investment Details | Company Name | Main Business | Equity Held (%) | Investment Cost (thousand yuan) | Current Period Investment Income (thousand yuan) | | :--- | :--- | :--- | :--- | :--- | | Yunnan Jingjian Rail Transit Investment and Construction Co., Ltd. | Construction management, operation, and related development of Kunming Rail Transit Line 4 | 78.28% | 1,634,327 | 36,545 | - Investing in Yunnan Jingjian Rail Transit Investment and Construction Co., Ltd. is beneficial for enhancing the Company's profitability, market expansion, and industrial chain integration[35] Exchange Rate Risk The Group primarily operates in China, with most transactions settled in RMB, resulting in minimal exchange rate risk related to USD and HKD, which is not expected to have a material adverse effect on its financials - The Group primarily conducts its business in China, with most transactions settled in RMB[36] - Assets, liabilities, and operating transactions involving exchange rate risk are mainly related to USD and HKD[36] - The Directors believe that the Group's exchange rate risk is not significant and will not have a material adverse effect on the Group's financial position[36] Bidding Performance As of June 30, 2025, the Company secured bids totaling 2.541 billion yuan, with 1.367 billion yuan from design, survey, and consulting services and 1.174 billion yuan from engineering contracting services Bidding Performance (billion yuan) | Business Type | Bid Amount | | :--- | :--- | | Design, Survey, and Consulting | 1.367 | | Engineering, Procurement, and Construction | 1.174 | | Total | 2.541 | - Design, survey, and consulting projects are primarily located in Beijing, Nanjing, Xiamen, Chengdu, Qingdao, Zhengzhou, and other regions[37] - Engineering, procurement, and construction projects are primarily located in Beijing, Lhasa, Qingdao, and other regions[37] Employees As of June 30, 2025, the Group had approximately 4,629 employees, a 6% decrease from the previous year, while the proportion of senior-titled employees increased by 3% to 44% Employee Structure | Indicator | June 30, 2025 | | :--- | :--- | | Total Employees | 4,629 | | Senior Title Holders | 44% | | Intermediate Title Holders | 37% | | Junior Title Holders and Below | 19% | - The number of employees decreased by 6% compared to the end of the same period last year[38] - The proportion of senior-titled employees increased by 3%[38] Events After the Reporting Period The Group had no significant events after the reporting period - The Group had no significant events after the reporting period[39] Profit Distribution and Dividends The Group currently does not plan to distribute interim profits or pay interim dividends - The Group currently does not plan to distribute interim profits or pay interim dividends[40] Company Management Measures for H2 2025 In H2 2025, the Company will continue to focus on "market expansion, reform and innovation, and quality and efficiency improvement" to stabilize the design and consulting market, promote scaled development of engineering contracting, accelerate breakthroughs in new businesses, and strengthen enterprise management to improve cash flow and profitability Stabilize Design and Consulting Market Scale The Company will leverage its network of ten marketing centers to closely monitor urban rail transit construction plans, expand into new areas like existing line renovation, urban renewal, and new energy development, and deepen its focus on high-end consulting and differentiated development in civil and municipal engineering - Rely on the network of ten marketing centers and full-产业链 collaborative efforts to closely monitor the progress of urban rail transit construction planning approvals in various regions[42] - Expand into new businesses such as existing line renovation, urban renewal, new energy development, digital intelligence, and urban lifeline systems[42] - Deepen efforts in segmented markets like evaluation and review, cost consulting, passenger flow enhancement consulting, and whole-process consulting, while pursuing differentiated and specialized development in civil and municipal engineering businesses[42] Promote Scaled Development of Engineering Contracting The Company will focus on project management, strengthen production factor guarantees, ensure high-quality execution of ongoing projects, closely track key urban rail transit projects, and enhance collaborative marketing for EPC business to secure more project implementations - Focus on project management, strengthen production factor guarantees, and ensure high-quality execution of ongoing projects[43] - Closely follow urban rail transit projects in cities such as Beijing, Xuzhou, Guangzhou, Shenzhen, and Xi'an, and strive to achieve annual marketing targets[43] - Strengthen collaborative marketing for EPC business to facilitate the implementation of more projects, making it a new pillar for the Company's scaled development[43] Accelerate Breakthrough in New Businesses, Fully Cultivate New Business Development The Company will accelerate the market function of technological industrialization, build a complete business development chain from "product to market to delivery," facilitate the application of existing products, and specifically target industrialization platforms such as existing line renovation, urban renewal, green and low-carbon initiatives, urban lifeline systems, and the low-altitude economy - Accelerate the market function of technological industrialization, building a complete business development chain from "product end, market end, to delivery end"[44] - Seize industrialization opportunities in existing line renovation, urban renewal, green and low-carbon initiatives, urban lifeline systems, and the low-altitude economy[44] - Drive the implementation of products such as energy storage, photovoltaic sound barriers, urban simulation platforms, intelligent hazard identification models, and industrialized interior decoration[44] Focus on Strengthening Enterprise Management The Company will continuously improve cash flow, strengthen collection efforts, reduce the outstanding balance of "two funds" (receivables and inventories), and enhance overall profitability through refined management, cost reduction, efficiency improvement, and informatization, thereby establishing a positive image in the capital market - Continuously improve cash flow, firmly anchor collection targets, strengthen collection scheduling, enforce responsibility for arrears, and fully ensure the security of the capital chain[45] - Focus on reducing the scale of completed but unsettled projects, intensify efforts in project confirmation and settlement, promote key project settlements within the year, and achieve continuous reduction in the outstanding balance of "two funds"[45] - Implement refined management, reduce costs and increase efficiency, and enhance informatization to comprehensively improve profitability; ensure proper information disclosure and establish a positive image in the capital market[45] Market Environment and Business Outlook National policies continue to support data infrastructure, rural revitalization, urban renewal, sports industry, and integrated development of transportation and energy, offering broad prospects for the Company's business, while the urban rail transit industry transitions from high-speed growth to high-quality development, presenting opportunities and challenges for intelligent and green transformation across various engineering fields Urban Rail Transit As of June 30, 2025, mainland China had 58 cities operating 12,381.48 kilometers of urban rail transit lines, with 220.70 kilometers added in H1, as the industry shifts from rapid expansion to high-quality development, emphasizing technological innovation, standard system construction, and operational efficiency Urban Rail Transit Operations in Mainland China | Indicator | June 30, 2025 | | :--- | :--- | | Number of Operating Cities | 58 | | Total Length of Operating Lines | 12,381.48 kilometers | | New Operating Lines in H1 | 220.70 kilometers | - The Ministry of Transport revised the "Administrative Measures for Urban Rail Transit Operation Organization" and "Administrative Measures for Urban Rail Transit Passenger Organization and Service," improving institutional norms[48] - The industry faces multiple challenges and opportunities, including existing asset optimization, intelligent transformation, green and low-carbon development, regional integration, and internationalization[48] Collaborative Innovation in Rail Transit Construction The Company continues to drive technological innovation in rail transit, with multiple projects receiving national science and technology awards and undertaking major research initiatives, focusing on future innovations in high-quality underground infrastructure construction, pipeline renewal, lifeline monitoring, and vehicle-road-cloud integration - The Company's projects, such as "Key Technologies and Applications for Efficient Operation and Control of Ultra-large-scale Metro Networks," received special, first, and second prizes in the 2024 China Transportation Association Science and Technology Progress Awards[49] - Undertakes major research projects including the Ministry of Science and Technology's Xiong'an Innovation Special Program, the Ministry of Housing and Urban-Rural Development's scientific research special program, and provincial science and technology special programs[49] - Future innovations will focus on high-quality underground infrastructure construction, underground pipeline renewal, lifeline monitoring, and vehicle-road-cloud integration[49] Surveying and Mapping The surveying and mapping industry is experiencing accelerated technological updates, with increasing adoption of high-precision equipment and software, and is transitioning towards intelligent and digital transformation, relying on drone aerial photography, 3D laser scanning, BIM, and integrating cloud platforms and big data analytics to provide comprehensive solutions - The pace of technological updates for high-precision surveying equipment and software is accelerating, with some enterprises focusing on the R&D and production service system construction of high-precision surveying and mapping equipment[50] - Future surveying and mapping technology will rapidly transform towards smart platforms, surveying big data, "one city map," and other new surveying services[51] - The surveying and mapping industry will increasingly rely on intelligent and digital technologies, as well as the application of drone aerial photography, 3D laser scanning, and BIM technologies[51] Investment and Construction The nation is deepening efforts to resolve local government debt risks and strictly control new hidden debts, while expanding social capital participation in key projects; the standardized upgrade of the concession model and continued advancement of "three major projects" (affordable housing, urban village renovation, and metropolitan rail transit) present core opportunities for investment and construction businesses - The Standing Committee of the National People's Congress approved an increase of 6 trillion yuan in local government debt limits to replace existing hidden debts, and clarified that 800 billion yuan in special bonds will be allocated annually from 2024-2028 for debt resolution[52] - The concession model is undergoing standardized upgrades, encouraging integrated "investment + operation" models for cultural tourism and smart transportation projects[52] - The "three major projects" continue to advance, including affordable housing, urban village and underground pipeline renovation, and accelerated metropolitan rail transit development[53] Planning and Design Urban renewal, national spatial planning, refined control planning, low-carbon intelligence, and regional coordination have become core directions for urban planning development, with the market continuously expanding and diversifying, transitioning from traditional models to intelligent and green approaches - Urban renewal, national spatial planning, refined control planning, low-carbon intelligence, and regional coordination have become the core directions for urban planning development[55] - Funding support is expanding, demonstration cities are increasing, emphasizing social capital participation; "multi-plan integration" is strengthened to optimize land use and improve living quality[55] - China's urban planning industry is undergoing a critical transition from traditional models to intelligent and green approaches, with continuous market expansion and diversified competition[55] Architectural Design The nation continues to advance urban renewal, emphasizing infrastructure construction and renovation, including old residential areas, urban villages, and infrastructure projects; while real estate development investment and construction area have declined YoY, government signals are positive, with policies expected to accelerate in H2 to stabilize the real estate market - The Ministry of Housing and Urban-Rural Development emphasized the need to solidly advance urban renewal work, implementing projects that benefit people's livelihoods, promote development, and prevent risks[56] National Real Estate Development Investment and Construction Area, January-June 2025 (billion yuan) | Indicator | Amount/Area | YoY Decrease | | :--- | :--- | :--- | | Real Estate Development Investment | 4,665.8 billion yuan | 11.2% | | Residential Investment | 3,577.0 billion yuan | 10.4% | | Housing Construction Area | 6,333.21 million square meters | 9.1% | | Residential Construction Area | 4,412.40 million square meters | 9.4% | | New Housing Starts Area | 303.64 million square meters | 20.0% | | New Residential Starts Area | 222.8 million square meters | 19.6% | - It is expected that in H2 2025, governments at all levels will fully promote the implementation of existing policies to a greater extent, driving the real estate market to stop falling and stabilize[57] Engineering, Procurement, and Construction (EPC) China's urban rail transit investment and new mileage are declining, with the industry entering a high-quality development stage; market opportunities are concentrated in network improvements in core city clusters, intercity (suburban) railways, existing line renovation, and intelligent, green construction technologies, while the Company will focus on Beijing as its foundation and deeply target three national strategic regions - In 2025, urban rail investment plans show a 28.59% YoY decline, with the domestic rail market entering a high-quality development stage characterized by "seeking progress while maintaining stability, optimizing existing assets, regional focus, technological upgrading, refined management, and diversified integration"[58] - Core market opportunities are mainly concentrated in network improvements, intercity (suburban) railways, and existing line renovation in core city clusters such as Beijing-Tianjin-Hebei, Yangtze River Delta, Greater Bay Area, and Chengdu-Chongqing[58] - The Company will use the Beijing market as its foundation, deeply focus on the three national strategic regions of the Yangtze River Delta, Greater Bay Area, and Western Triangle (Chengdu-Chongqing), and actively deploy in the rail transit construction market[58] Municipal Public Works The Central Urban Work Conference clarified the shift in urban development from incremental expansion to qualitative improvement, making urban renewal a key focus for municipal engineering; the sector is accelerating its transition to green construction and sustainable development, moving towards digitalization and intelligence - The Central Urban Work Conference clarified that urban development is shifting from incremental expansion to qualitative improvement, making urban renewal a key focus for municipal engineering in 2025[59] - The municipal engineering sector is accelerating its transition to green construction and sustainable development models, with green building materials, energy-saving technologies, and renewable energy applications becoming important components[59] - The development of smart cities is driving municipal engineering towards digitalization and intelligence, enabling full lifecycle management of municipal facilities[59] Industrialization of Technology The government work report emphasizes deep integration of scientific and technological innovation with industrial innovation to foster emerging industries; traditional infrastructure must seize opportunities from the new technological revolution, focusing on low-altitude economy, green energy, and digital intelligence, to deepen collaborative innovation and build a globally competitive modern transportation industry ecosystem - The 2025 government work report explicitly proposes the strategic direction of "promoting the deep integration of scientific and technological innovation with industrial innovation, and accelerating the cultivation and growth of emerging and future industries"[60] - The traditional infrastructure industry must seize the major historical opportunities of the new round of global technological revolution and industrial transformation, focusing on emerging fields such as the low-altitude economy, green energy, cultural tourism industry, digitalization, and informatization[60] - Deepen cross-industry, cross-department, and cross-regional collaborative innovation, tackle key core technologies, promote industrial application demonstrations, and build a modern transportation industry ecosystem with international competitiveness[60] Other Information Interests of Directors, Supervisors, and Chief Executives in Shares As of June 30, 2025, Mr. Li Guoqing, Vice Chairman and Non-executive Director, held 48,000 H shares (long position), representing approximately 0.01% of the issued H share capital; additionally, Mr. Li Guoqing and Mr. Xia Xiujiang participated in the employee share ownership plan Shareholdings of Directors, Supervisors, and Chief Executives | Name | Position | Capacity | Share Class | Number of Shares | Approximate Percentage of Total Issued H Share Capital (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Li Guoqing | Vice Chairman and Non-executive Director | Personal Interest | H Shares | 48,000 | 0.01 | - Mr. Li Guoqing subscribed for 1,000,000 domestic shares under the core employee share ownership plan, and Mr. Xia Xiujiang's subscription under the employee share ownership plan increased to 1,000,000 domestic shares[62] - During the reporting period, the Company did not grant any rights to Directors, Supervisors, and Chief Executives to subscribe for shares or debentures of the Company or any related corporation[63] Changes in Board of Directors and Board of Supervisors The Company held a general meeting on June 16, 2025, to appoint members of the Fourth Board of Directors and Board of Supervisors, with Mr. Pei Hongwei elected Chairman, Mr. Li Guoqing elected Vice Chairman, and Mr. Hu Shengjie elected Chairman of the Board of Supervisors; adjustments were also made to the Board's special committees Changes in Directors Mr. Xia Xiujiang was appointed Executive Director, Mr. Pei Hongwei and Mr. Li Guoqing were appointed Non-executive Directors, and Mr. Wang Guofeng was appointed Independent Non-executive Director, all for a three-year term; Mr. Tan Guisheng and Mr. Ma Xufei retired as Directors - Mr. Xia Xiujiang was appointed Executive Director, and Mr. Pei Hongwei, Mr. Li Guoqing, Ms. Shi Huaxin, Mr. Peng Dongdong, Mr. Li Fei, Mr. Wang Tao, and Ms. Tang Qimeng were appointed Non-executive Directors[64] - Mr. Wang Guofeng, Mr. Xia Peng, Mr. Chen Fan, and Mr. Zha Xiaodong were appointed Independent Non-executive Directors[64] - Mr. Tan Guisheng and Mr. Ma Xufei retired as Directors on the same day[64] Changes in Supervisors Mr. Hu Shengjie, Ms. Zhong Hua, Mr. Fang Binjia, and Mr. Fu Yanbing were appointed as Supervisors of the Fourth Board of Supervisors, forming the Board of Supervisors with employee representative supervisors; Ms. Nie Kun and others retired as Supervisors - Mr. Hu Shengjie, Ms. Zhong Hua, Mr. Fang Binjia, and Mr. Fu Yanbing were appointed as Supervisors of the Fourth Board of Supervisors[65] - They, along with employee representative supervisors Mr. Liu Hao, Ms. Liu Xiaobo, and Mr. Li Zhiyu, form the Fourth Board of Supervisors[65] - Ms. Nie Kun, Mr. Li Yan, Ms. Yang Huiju, and Mr. Ban Jianbo retired as Supervisors on the same day[65] Appointment of Chairman and Vice Chairman of the Board The Board of Directors elected Mr. Pei Hongwei as Chairman and Mr. Li Guoqing as Vice Chairman of the Fourth Board of Directors on June 16, 2025, effective immediately - Mr. Pei Hongwei was elected Chairman of the Fourth Board of Directors[66] - Mr. Li Guoqing was elected Vice Chairman of the Fourth Board of Directors[66] Appointment of Board Committee Members The Board's special committee members were adjusted, with Mr. Pei Hongwei appointed Chairman of the Nomination Committee and Overseas Risk Control Committee, Mr. Xia Peng as Chairman of the Audit Committee, and Mr. Wang Guofeng as Chairman of the Remuneration Committee Chairmen of Board Committees | Committee | Chairman | | :--- | :--- | | Nomination Committee | Mr. Pei Hongwei | | Audit Committee | Mr. Xia Peng | | Remuneration Committee | Mr. Wang Guofeng | | Overseas Risk Control Committee | Mr. Pei Hongwei | Appointment of Chairman of the Board of Supervisors The Board of Supervisors elected Mr. Hu Shengjie as Chairman of the Fourth Board of Supervisors on June 16, 2025, effective immediately - Mr. Hu Shengjie was elected Chairman of the Fourth Board of Supervisors[68] Standard Code for Securities Transactions by Directors and Supervisors The Company has adopted the "Standard Code" as the code for securities transactions by its Directors and Supervisors, all of whom confirmed compliance during the reporting period - The Company has adopted the "Standard Code" as the code for securities transactions by its Directors and Supervisors[69] - Each Director and Supervisor confirmed their continuous compliance with the said code during the reporting period[69] Shareholders' Interests and Short Positions Required to be Disclosed Under the SFO As of June 30, 2025, the Company's major shareholders included Beijing Urban Construction Group, Beijing Infrastructure Investment Co., Ltd., and Beijing Chengtong Enterprise Management Center, holding domestic and H shares; Amundi Asset Management and Amundi Ireland Ltd were major H-share shareholders Interests and Short Positions of Major Shareholders in the Company's Shares and Related Shares Beijing Urban Construction Group is the controlling shareholder, holding 59.44% of domestic shares; Beijing Infrastructure Investment Co., Ltd. and its subsidiary, Beijing Infrastructure Investment (Hong Kong) Co., Ltd., collectively hold approximately 14.83% of shares; Amundi Asset Management and Amundi Ireland Ltd are major H-share shareholders Major Shareholder Domestic Shareholdings (thousand shares) | Shareholder Name | Capacity | Number of Domestic Shares (shares) | Approximate Percentage of Total Issued Domestic Share Capital (%) | Approximate Percentage of Total Issued Share Capital (%) | | :--- | :--- | :--- | :--- | :--- | | Beijing Urban Construction Group Co., Ltd. | Beneficial Owner | 571,031,118 | 59.44 | 42.34 | | Beijing Infrastructure Investment Co., Ltd. | Beneficial Owner | 87,850,942 | 9.14 | 6.51 | | Beijing Chengtong Enterprise Management Center (L.P.) | Beneficial Owner | 76,000,000 | 7.91 | 5.64 | Major Shareholder H-share Holdings (thousand shares) | Shareholder Name | Capacity | Number of H Shares (shares) | Approximate Percentage of Total Issued H Share Capital (%) | Approximate Percentage of Total Issued Share Capital (%) | | :--- | :--- | :--- | :--- | :--- | | Amundi Asset Management | Investment Manager | 83,171,000 | 21.44 | 6.17 | | Amundi Ireland Ltd | Investment Manager | 81,494,000 | 21.01 | 6.04 | | Beijing Infrastructure Investment Co., Ltd. | Interest in Controlled Corporation | 68,222,000 | 17.59 | 5.06 | | Beijing Infrastructure Investment (Hong Kong) Co., Ltd. | Beneficial Owner | 68,222,000 | 17.59 | 5.06 | - Beijing Infrastructure Investment Co., Ltd., through its wholly-owned subsidiary Beijing Infrastructure Investment (Hong Kong) Co., Ltd., indirectly holds a long position of 68,222,000 H shares in the Company[71] Purchase, Sale, or Redemption of the Company's Listed Securities During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and no treasury shares were held - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities[73] - As of June 30, 2025, the Company did not hold any treasury shares[74] Corporate Governance The Company has established a corporate governance system comprising the general meeting of shareholders, Board of Directors, Board of Supervisors, and senior management, in strict compliance with relevant laws, regulations, and regulatory requirements, and meets the code provisions of the "Corporate Governance Code" - The Company operates in strict accordance with the "Company Law of the People's Republic of China," the "Corporate Governance Code," and other laws, regulations, and regulatory requirements of domestic and overseas regulatory authorities[75] - It has established a corporate governance system consisting of the general meeting of shareholders, the Board of Directors, the Board of Supervisors, and senior management, forming an operating mechanism of mutual cooperation, coordination, and checks and balances[75] - During the reporting period, the Company consistently complied with all applicable regulatory laws, regulations, the "Articles of Association," and the code provisions of the "Corporate Governance Code"[75] Material Litigation and Arbitration Matters During the reporting period, the Group had no litigation or arbitration matters that had a material impact on its operating activities - During the reporting period, the Group had no litigation or arbitration matters that had a material impact on its operating activities[76] Articles of Association The latest version of the "Articles of Association" has been revised and is available on the Company's and HKEX websites to further improve the corporate governance structure - The latest version of the "Articles of Association" is available on the Company's and HKEX websites[77] - During the reporting period, the Company made corresponding revisions to the "Articles of Association" to further improve its corporate governance structure[77] Adoption of China Accounting Standards for Business Enterprises for Financial Reporting The Board of Directors resolved on May 15, 2025, to adopt China Accounting Standards for Business Enterprises for financial reporting to enhance work efficiency, believing this is in the Company's best interest and will not materially affect its financial position, operating results, or cash flows - The Board of Directors resolved on May 15, 2025, to adopt China Accounting Standards for Business Enterprises for financial reporting[78] - This move aims to improve work efficiency and is in the best interest of the Company[78] - It is expected not to have a material impact on the Company's financial position, operating results, and cash flows in 2025 and beyond[78] Review of Interim Report The Company's auditor, Da Hua Certified Public Accountants (Special General Partnership), reviewed the Group's interim financial statements for the six months ended June 30, 2025, and the Audit Committee also reviewed the interim results - The Company's auditor, Da Hua Certified Public Accountants (Special General Partnership), reviewed the Group's interim financial statements for the six months ended June 30, 2025[79] - The Company's Audit Committee reviewed the Group's interim results and unaudited interim financial statements for the six months ended June 30, 2025[79] Public Float As of the report date, the Company's public float was approximately 23.70%, failing to meet the minimum public float requirement of the Hong Kong Listing Rules; the Company is actively pursuing feasible measures, including restarting A-share issuance, negotiating major shareholder share transfers, or issuing H-shares to independent third parties, to restore the public float level - As of the date of this report, the Company's public float is approximately 23.70%, which does not comply with the minimum public float requirement under Rule 8.08(1)(a) of the Hong Kong Listing Rules[81] - After Beijing Infrastructure Investment Co., Ltd. increased its stake by 68,222,000 H shares, it became one of the major shareholders, and its H shares are no longer considered publicly held circulating shares[80] - The Company is actively taking feasible measures, including restarting the A-share issuance plan, negotiating with major shareholders to sell shares, and/or issuing H-shares to independent third parties under a general mandate, to restore the public float level[81] Interim Financial Statements Review Report Da Hua Certified Public Accountants (Special General Partnership) reviewed Beijing Urban Construction Design & Development Group Co., Limited's consolidated financial statements for the six months ended June 30, 2025, concluding that no matters came to their attention suggesting the statements were not prepared in accordance with enterprise accounting standards or did not fairly reflect the financial position, operating results, and cash flows in all material respects - Da Hua Certified Public Accountants (Special General Partnership) reviewed the consolidated financial statements of Beijing Urban Construction Design & Development Group Co., Limited for the six months ended June 30, 2025[82] - The review was conducted in accordance with "China Review Standard No. 2101 - Review of Financial Statements," providing a lower level of assurance than an audit[82] - Based on the review, no matters came to the reviewer's attention that caused them to believe the financial statements were not prepared in accordance with enterprise accounting standards or did not fairly reflect the financial position, operating results, and cash flows in all material respects[83] Consolidated Balance Sheet This section presents the Group's consolidated balance sheet, detailing its assets, liabilities, and owners' equity as of June 30, 2025, and January 1, 2025 Consolidated Balance Sheet Key Data (yuan) | Item | June 30, 2025 (Period-end Balance) | January 1, 2025 (Period-start Balance) | | :--- | :--- | :--- | | Current Assets: | | | | Cash and Bank Balances | 1,933,635,958.25 | 3,156,509,037.14 | | Accounts Receivable | 4,252,267,487.11 | 4,012,733,311.84 | | Contract Assets | 5,764,005,751.45 | 5,516,151,792.12 | | Total Current Assets | 12,549,527,750.98 | 13,230,996,750.32 | | Non-current Assets: | | | | Long-term Equity Investments | 3,493,645,305.90 | 3,449,404,050.96 | | Fixed Assets | 1,247,801,332.97 | 1,264,222,355.74 | | Other Non-current Assets | 4,450,452,933.04 | 4,647,760,715.86 | | Total Non-current Assets | 11,097,270,724.58 | 11,310,928,503.47 | | Total Assets | 23,646,798,475.56 | 24,541,925,253.79 | | Current Liabilities: | | | | Short-term Borrowings | 918,003,461.02 | 800,057,476.75 | | Accounts Payable | 5,096,662,049.56 | 5,539,926,648.80 | | Contract Liabilities | 2,165,872,783.41 | 2,731,408,144.20 | | Total Current Liabilities | 10,125,366,874.01 | 11,061,007,358.63 | | Non-current Liabilities: | | | | Long-term Borrowings | 4,251,245,909.09 | 4,334,024,094.09 | | Bonds Payable | 500,000,000.00 | 500,000,000.00 | | Total Non-current Liabilities | 5,483,864,230.35 | 5,547,513,352.51 | | Total Liabilities | 15,609,231,104.36 | 16,608,520,711.14 | | Owners' Equity: | | | | Paid-in Capital (or Share Capital) | 1,348,670,000.00 | 1,348,670,000.00 | | Retained Earnings | 5,098,887,359.11 | 5,011,885,481.00 | | Total Equity Attributable to Parent Company Owners | 7,797,515,996.99 | 7,695,822,111.35 | | Non-controlling Interests | 240,051,374.21 | 237,582,431.30 | | Total Owners' Equity | 8,037,567,371.20 | 7,933,404,542.65 | | Total Liabilities and Owners' Equity | 23,646,798,475.56 | 24,541,925,253.79 | Consolidated Income Statement This section presents the Group's consolidated income statement, detailing its revenues, expenses, and net profit for the six months ended June 30, 2025, and the comparative period Consolidated Income Statement Key Data (yuan) | Item | January-June 2025 (Current Period Amount) | January-June 2024 (Prior Period Amount) | | :--- | :--- | :--- | | I. Total Operating Revenue | 3,586,318,950.13 | 4,178,988,200.72 | | II. Total Operating Costs | 3,247,912,094.44 | 3,724,628,339.32 | | Including: Operating Costs | 2,893,377,461.12 | 3,363,629,737.41 | | Selling Expenses | 26,748,955.83 | 28,684,396.11 | | Administrative Expenses | 223,213,616.12 | 227,801,705.50 | | Research and Development Expenses | 141,896,162.94 | 147,640,596.66 | | Financial Expenses | -55,300,467.83 | -51,081,526.58 | | Add: Other Income | 3,683,074.09 | 1,527,927.75 | | Investment Income | 44,267,254.93 | 71,349,789.26 | | Gains from Changes in Fair Value | 1,356,000.00 | -3,708,000.00 | | Credit Impairment Losses | -18,321,540.30 | -48,445,420.89 | | Asset Impairment Losses | -75,834,131.22 | -52,456,351.70 | | III. Operating Profit | 294,180,975.66 | 423,094,057.59 | | IV. Total Profit | 291,830,692.80 | 431,112,401.17 | | Less: Income Tax Expense | 52,442,034.56 | 60,327,024.44 | | V. Net Profit | 239,388,658.24 | 370,785,376.73 | | Net Profit Attributable to Parent Company Owners | 232,253,637.11 | 359,774,333.20 | | VI. Net Other Comprehensive Income After Tax | 10,474,882.39 | -17,869,093.99 | | VII. Total Comprehensive Income | 249,863,540.63 | 352,916,282.74 | | VIII. Earnings Per Share: | | | | Basic Earnings Per Share | 0.18 | 0.27 | | Diluted Earnings Per Share | 0.18 | 0.27 | Consolidated Cash Flow Statement This section presents the Group's consolidated cash flow statement, detailing cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, and the comparative period Consolidated Cash Flow Statement Key Data (yuan) | Item | January-June 2025 (Current Period Amount) | January-June 2024 (Prior Period Amount) | | :--- | :--- | :--- | | I. Net Cash Flow from Operating Activities | -1,039,802,162.20 | -721,076,410.19 | | II. Net Cash Flow from Investing Activities | -24,416,059.22 | -87,614,623.41 | | III. Net Cash Flow from Financing Activities | -123,581,225.69 | -263,927,546.96 | | IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents | -1,287,224.54 | -2,316,542.27 | | V. Net Increase in Cash and Cash Equivalents | -1,189,086,671.65 | -1,074,935,122.83 | | VI. Cash and Cash Equivalents at Period-end | 1,854,759,590.27 | 2,234,760,947.91 | Consolidated Statement of Changes in Equity This section presents the Group's consolidated statement of changes in equity, detailing movements in owners' equity for the six months ended June 30, 2025, and the comparative period Consolidated Statement of Changes in Equity Key Data (yuan) | Item | January-June 2025 (Current Period Amount) | January-June 2024 (Prior Period Amount) | | :--- | :--- | :--- | | I. Balance at End of Previous Year | 7,933,404,542.65 | 7,628,613,602.56 | | III. Amount of Changes for the Current Year (Decrease indicated by "-") | 104,162,828.55 | 121,633,247.44 | | (I) Total Comprehensive Income | 249,863,540.63 | 352,916,282.74 | | (III) Extraction and Use of Special Reserves | 4,217,125.14 | 6,321,183.40 | | (IV) Profit Distribution | -149,917,837.22 | -234,100,388.55 | | IV. Balance at End of Current Year | 8,037,567,371.20 | 7,750,246,850.00 | Notes to the Interim Financial Statements I. Company Profile Beijing Urban Construction Design & Development Group Co., Limited was established on October 28, 2013, with its H-shares listed on the Hong Kong Stock Exchange; the Company operates in the industrial design sector, primarily offering design, survey, consulting, and engineering contracting services for urban rail transit and related projects, with Beijing Urban Construction Group Co., Ltd. as its parent and ultimate controlling shareholder History, Registered Address, Organizational Form, and Headquarters The Company was established on October 28, 2013, by Beijing Urban Construction Group Co., Ltd., with its registered address at No. 5 Fuchengmen North Street, Xicheng District, Beijing; its H-shares are listed on The Stock Exchange of Hong Kong Limited under stock code 01599 - The Company was established on October 28, 2013, by Beijing Urban Construction Group Co., Ltd[114] - The Company's registered address is No. 5 Fuchengmen North Street, Xicheng District, Beijing, and its H-shares are listed on The Stock Exchange of Hong Kong Limited, stock code: 01599[114] Nature of Business and Principal Operations The Company operates in the industrial design sector, primarily providing design, survey, and consulting services, as well as engineering contracting services, for urban rail transit and related industrial, civil, and municipal engineering projects - The Company operates in the industrial design sector, primarily providing design, survey, and consulting services for urban rail transit and related industrial and civil building and municipal engineering projects[117] - Currently, the main business segments are: design, survey, and consulting, and engineering contracting[118] Name of Parent Company and Group Headquarters The Group's parent company and ultimate controlling shareholder is Beijing Urban Construction Group Co., Ltd - The Group's parent company and ultimate controlling shareholder are both Beijing Urban Construction Group Co., Ltd[119] Approval and Issuance of Financial Statements These financial statements were approved for issuance by the Company's Board of Directors on August 28, 2025 - These financial statements were approved for issuance by the Company's Board of Directors on August 28, 2025[120] II. Scope of Consolidated Financial Statements This period's consolidated financial statements include 21 second-tier subsidiaries, covering businesses such as survey and design, engineering consulting, property management, engineering contracting, and investment and construction, primarily registered in Beijing, with some in Anhui, Guizhou, Yunnan, and Hong Kong - This period's consolidated financial statements include a total of 21 second-tier subsidiaries[121] - The subsidiaries' business nature is diverse, including survey, design, and engineering exploration, rail transit engineering consulting, property management, engineering testing, construction project investment, construction and operation maintenance, and engineering contracting[121][122] - The subsidiaries are primarily registered in Beijing, and also distributed in Hong Kong, Anhui, Guizhou, Yunnan, Guangdong, Hunan, and other regions[121][122][123] III. Basis of Preparation of Financial Statements The Company prepares its financial statements on a going concern basis, in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance and the disclosure require