宝业集团(02355) - 2025 - 中期业绩

Announcement Information Interim Results Announcement Baoye Group Co., Ltd. announced its unaudited interim results for the six months ended June 30, 2025, reviewed by the audit committee and approved by the board - The announcement presents unaudited interim results for the six months ended June 30, 2025, with comparative data for the same period in 2024[2] - The interim results have been reviewed by the company's audit committee and approved by the board of directors[2] Financial Statements Interim Condensed Consolidated Income Statement For the six months ended June 30, 2025, the company experienced significant declines in both turnover and profit, with turnover down 33% and profit attributable to owners down 62% year-on-year Interim Condensed Consolidated Income Statement Key Data | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Turnover | 8,502,567 | 12,770,676 | | Gross Profit | 508,699 | 965,277 | | Operating Profit | 253,587 | 624,434 | | Profit Before Income Tax | 245,328 | 640,867 | | Profit for the Period | 143,431 | 423,265 | | Profit Attributable to Owners of the Company | 140,981 | 373,845 | | Basic Earnings Per Share (RMB) | 0.27 | 0.72 | - Turnover decreased by 33% year-on-year, operating profit by 59%, and profit attributable to owners of the company by 62%[4][40] Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, total comprehensive income significantly decreased to RMB 69,548 thousands, primarily due to fair value changes in financial assets Interim Condensed Consolidated Statement of Comprehensive Income Key Data | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Period | 143,431 | 423,265 | | Currency Translation Differences | 273 | 58 | | Fair value changes of financial assets measured at fair value through other comprehensive income | (74,156) | (103,010) | | Other comprehensive income/(loss) for the period, net of tax | (73,883) | (102,952) | | Total comprehensive income for the period | 69,548 | 320,313 | | Total comprehensive income attributable to owners of the Company | 67,098 | 270,893 | | Total comprehensive income attributable to non-controlling interests | 2,450 | 49,420 | - Total comprehensive income for the period decreased by 78.3% year-on-year, mainly due to fair value losses on financial assets measured at fair value through other comprehensive income[6] Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets and liabilities slightly decreased, while total equity remained stable, maintaining a net cash ratio of 54% Interim Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Assets | 44,346,227 | 45,202,576 | | Total Equity | 13,559,126 | 13,547,523 | | Total Liabilities | 30,787,101 | 31,655,053 | | Debt Ratio | 2.3 | 2.3 | | Net Cash Ratio | 54% | 54% | - Total assets decreased by approximately 1.9% year-on-year, primarily due to reductions in properties under development and trade and other receivables within current assets[10] - The company maintained a net cash position with a net cash ratio of 54% and approximately RMB 7 billion in unutilized bank credit facilities[70][71] Notes to Financial Statements General Information Baoye Group Co., Ltd. is incorporated in China, with H-shares listed on the Hong Kong Stock Exchange, primarily engaged in construction engineering, building materials, and property development - The company's H-shares were listed on the Main Board of the Hong Kong Stock Exchange on June 30, 2003[13] - Its principal businesses include providing construction engineering services, selling and installing building materials, and developing and selling properties[14] Basis of Preparation The interim financial report is prepared in accordance with HKAS 34 and should be read in conjunction with the 2024 consolidated financial statements and company announcements - The interim financial report is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[15] - The interim financial information should be read in conjunction with the company's annual consolidated financial statements for the year ended December 31, 2024, and announcements published during this interim reporting period[15] Significant Accounting Policies The accounting policies adopted for this interim financial information are consistent with the 2024 annual financial report, with no significant changes or retrospective adjustments from newly adopted standards - The accounting policies adopted for the preparation of this interim financial information are consistent with those applied in the 2024 annual financial report[16] - Certain new and amended standards effective during this reporting period did not require the Group to change its accounting policies or make retrospective adjustments upon adoption[17] - New and revised standards issued but not yet effective are not expected to have a significant impact on the Group in current or future reporting periods[18] Segment Information For the six months ended June 30, 2025, external turnover and operating profit for construction and property development businesses significantly declined, while building materials turnover slightly increased but operating loss widened Segment External Turnover (RMB thousands) | Business Segment | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Construction Business | 5,657,138 | 8,596,299 | -34% | | Property Development Business | 1,616,348 | 3,002,236 | -46% | | Building Materials Business | 1,048,357 | 1,001,350 | 5% | | Other Businesses | 180,724 | 170,791 | 6% | | Total | 8,502,567 | 12,770,676 | -33% | Segment Operating Profit/(Loss) (RMB thousands) | Business Segment | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Construction Business | 166,581 | 324,535 | -49% | | Property Development Business | 105,034 | 320,526 | -67% | | Building Materials Business | (34,731) | (22,768) | -53% | | Other Businesses | 16,703 | 2,141 | 680% | | Total | 253,587 | 624,434 | -59% | Other Gains – Net For the six months ended June 30, 2025, other gains – net significantly increased to RMB 29,051 thousands, primarily driven by gains on disposal of land use rights and property, plant, and equipment Other Gains – Net (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Gain on disposal of land use rights | 7,219 | – | | Government grants | 9,987 | 7,226 | | Gain on disposal of property, plant and equipment | 10,157 | 1,544 | | Total | 29,051 | 10,151 | - Other gains – net increased by 186.2% year-on-year, primarily contributed by gains on disposal of land use rights and property, plant, and equipment[21] Income Tax For the six months ended June 30, 2025, income tax significantly decreased to RMB 101,897 thousands, mainly due to reduced revenue and profit from construction and property development businesses Income Tax Components (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current income tax – PRC corporate income tax | 57,524 | 174,606 | | Current income tax – Land appreciation tax | 44,026 | 73,540 | | Deferred tax | 347 | (30,544) | | Total | 101,897 | 217,602 | - Income tax decreased by 53.1% year-on-year, primarily due to a significant decline in revenue and profit from construction and property development businesses amidst an industry downturn[24][79] Earnings Per Share For the six months ended June 30, 2025, basic earnings per share were RMB 0.27, a significant decrease of 62.5% year-on-year, consistent with the decline in profit attributable to owners Earnings Per Share Data | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (RMB thousands) | 140,981 | 373,845 | | Weighted Average Number of Ordinary Shares Issued (thousands of shares) | 520,663 | 520,756 | | Basic Earnings Per Share (RMB) | 0.27 | 0.72 | - Basic earnings per share decreased by 62.5% year-on-year, largely consistent with the decline in profit attributable to owners of the company[26] - There were no potentially dilutive shares during the period, thus diluted earnings per share were consistent with basic earnings per share[26] Investments Accounted for Using the Equity Method As of June 30, 2025, total investments accounted for using the equity method were RMB 498,845 thousands, a slight decrease from year-end 2024, mainly due to reduced operating performance contributions and dividend payments from joint ventures and associates Investments Accounted for Using the Equity Method (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Investments in joint ventures | 474,849 | 481,671 | | Investments in associates | 23,996 | 33,056 | | Total | 498,845 | 514,727 | - Share of operating results from joint ventures for the period was RMB 2,499 thousands, a significant decrease from RMB 17,755 thousands in the prior year[28] - Share of operating results from associates for the period was a loss of RMB 7,060 thousands, an increase in loss from RMB 2,384 thousands in the prior year[29] Trade and Other Receivables As of June 30, 2025, total trade and other receivables were RMB 8,764,595 thousands, a decrease from year-end 2024, mainly due to reductions in trade receivables and other receivables and prepayments Trade and Other Receivables (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current assets: Loans to joint ventures | 398,747 | 398,116 | | Current assets: Trade receivables | 5,836,228 | 6,148,448 | | Current assets: Other receivables and prepayments | 2,600,156 | 3,027,276 | | Current assets: Loans to joint ventures | 190,909 | 47,936 | | Current assets: Loans to associates | 137,302 | 137,302 | | Total | 8,764,595 | 9,360,962 | - Impairment provision for trade receivables increased to RMB 767,207 thousands, indicating pressure on credit risk management[33] - Prepayments within other receivables and prepayments (prepayments for land use rights for property development, prepayments to suppliers) both significantly decreased[35] Trade and Other Payables As of June 30, 2025, total trade and other payables were RMB 16,150,018 thousands, a slight decrease from year-end 2024, with reductions in trade payables and project manager deposits Trade and Other Payables (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 10,617,897 | 11,173,249 | | Other payables | 5,532,121 | 5,599,800 | | Total | 16,150,018 | 16,773,049 | - Trade payables decreased by 4.97% year-on-year, with a slight increase in trade payables within 3 months, but decreases in payables from 3 months to 1 year and over 1 year[37] - Within other payables, project manager deposits and amounts due to non-controlling interests decreased, while advance payments from property purchasers significantly increased[38] Management Discussion and Analysis Performance Review For the six months ended June 30, 2025, the Group's turnover, operating profit, and profit attributable to owners all significantly declined, primarily due to the industry downturn affecting construction and property development H1 2025 Performance Overview | Indicator | Amount (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | | Turnover | 8,502,567 | -33% | | Operating Profit | 253,587 | -59% | | Profit Attributable to Owners of the Company | 140,981 | -62% | | Basic Earnings Per Share (RMB) | 0.27 | -63% | - The decline in performance was primarily attributed to the industry downturn, leading to significant reductions in revenue and profit from construction and property development businesses[40] Revenue For the six months ended June 30, 2025, the Group's total turnover decreased by 33% year-on-year, with construction and property development down 34% and 46% respectively, while building materials and other businesses saw slight growth Segment Turnover and Changes | Business Segment | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Construction Business | 5,657,138 | 8,596,299 | -34% | | Property Development Business | 1,616,348 | 3,002,236 | -46% | | Building Materials Business | 1,048,357 | 1,001,350 | 5% | | Other | 180,724 | 170,791 | 6% | | Total | 8,502,567 | 12,770,676 | -33% | - The decline in turnover from construction and property development businesses was the main reason for the overall turnover decrease[41] Operating Profit/(Loss) For the six months ended June 30, 2025, the Group's operating profit significantly decreased by 59% year-on-year, mainly due to a substantial decline in profitability of construction and property development, and an expanded loss in building materials Segment Operating Profit/(Loss) and Changes | Business Segment | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Construction Business | 166,581 | 324,535 | -49% | | Property Development Business | 105,034 | 320,526 | -67% | | Building Materials Business | (34,731) | (22,768) | -53% | | Other | 16,703 | 2,141 | 680% | | Total | 253,587 | 624,434 | -59% | - Property development business operating profit decreased by 67%, being the largest contributor to the overall decline in operating profit[43] - Building materials business operating loss increased by 53% year-on-year, reflecting intensified industry competition[43][61] Construction Business For the six months ended June 30, 2025, construction business turnover and operating profit decreased by 34% and 49% respectively, due to falling real estate investment, market contraction, and increased competition; new contract value declined by 36% - Construction business turnover was approximately RMB 5,657,138 thousands, a year-on-year decrease of 34%[44] - Operating profit was approximately RMB 166,581 thousands, a significant year-on-year decrease of 49%[44] - New construction contract value was approximately RMB 5.24 billion, a year-on-year decrease of 36%, mainly due to sharp market contraction and the company's cautious project risk assessment[46] Property Development Business For the six months ended June 30, 2025, property development business turnover and operating profit significantly decreased by 46% and 67% respectively, primarily due to fewer property projects recognized for revenue and lower profit margins; contract sales amounted to approximately RMB 1.78 billion - Property development business turnover was approximately RMB 1,616,348 thousands, a significant year-on-year decrease of 46%[47] - Operating profit was approximately RMB 105,034 thousands, a significant year-on-year decrease of 67%[47] - Contract sales for the period amounted to approximately RMB 1.78 billion, with a sales area of approximately 195,859 square meters[48] Property Sales Property sales revenue during the period primarily came from Baoye Biao Jia Yuan in Lishui, Baoye Siji Yuan in Shaoxing, and Baoye Binhe Lv Yuan in Bozhou, with Baoye Biao Jia Yuan being the largest contributor Major Property Sales Projects | Project Name | Location | Average Selling Price (RMB/sqm) | Sales Area (square meters) | Sales Amount (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Baoye Biao Jia Yuan | Lishui | 8,297 | 52,379 | 434,600 | | Baoye Siji Yuan | Shaoxing | 16,151 | 22,018 | 355,625 | | Baoye Binhe Lv Yuan | Bozhou | 4,755 | 29,402 | 139,818 | | Baoye Yunxi Li | Shaoxing | 19,322 | 5,132 | 99,166 | | Baoye Jiangnan Fu | Fuyang | 6,569 | 12,148 | 79,798 | Properties Under Development As of June 30, 2025, the Group had multiple properties under development in various cities, with some projects achieving good sales and others in planning or construction - Shaoxing Daban Green Carbon Park project commenced sales in April 2025, with good sales performance, expected delivery in 2027[50] - Wuhan Baoye Puyuan project completed completion filing in March 2025, with good sales performance, expected delivery to commence in September 2025[53] - Yichang Baoye Qinyuan project Phase I sold out and was the top seller in Yichang City in 2024, with Phase II pre-sales commencing in January 2025, also ranking as the top seller in Yichang City in Q2 2025[54] - Jieshou Guangwu Yuxiu Garden project will be fully repurchased by Jieshou Municipal Government platform company upon completion, with expected delivery in 2026[59] New Land Reserves The Group did not acquire new land reserves during the period and will adopt a cautious yet proactive approach, focusing on economically strong central cities while assessing local factors - The Group did not acquire any new land reserves during the period[60] - Future land acquisition strategy will adhere to prudent operation and innovative business models, cautiously evaluating comprehensive regional factors[60] - Focus will be primarily on central cities with extensive business coverage and favorable economic conditions, such as Shanghai, Zhejiang, and Hubei[60] Building Materials Business For the six months ended June 30, 2025, building materials business turnover increased by 5% year-on-year, but operating loss significantly widened by 53%, mainly due to intensified industry competition; curtain wall business grew significantly, while ready-