中庆股份(01855) - 2025 - 中期财报

Company Information Board of Directors and Committees This section details the composition of the company's Board of Directors and its Audit, Remuneration, and Nomination Committees - The Board members include Mr. Liu Haitao (Vice Chairman and CEO), Ms. Wang Yan (Executive Director), Mr. Sun Juqing (Chairman), Ms. Lu Hongyan, Mr. Shao Zhangguang (Non-executive Directors), and Mr. Gao Xiangnong, Mr. Yin Jun, Mr. Li Guodong (Independent Non-executive Directors)[5] - The Audit Committee Chairman is Mr. Li Guodong, the Remuneration Committee Chairman is Mr. Yin Jun, and the Nomination Committee Chairman is Mr. Gao Xiangnong[5] Professional Advisors and Banks The company appointed KPMG as auditor, Chow & Cheung, Solicitors as Hong Kong legal advisor, and lists its principal bankers - The auditor is KPMG, and the legal advisor is Chow & Cheung, Solicitors in association with Beijing Tongshang Law Firm[5] - Principal bankers include Bank of China (Hong Kong) Limited, China Everbright Bank Changchun Branch, China Merchants Bank Changchun Branch, and Industrial Bank Changchun Branch[5] Offices and Share Information This section provides details on the company's offices, stock code, website, and share registrar - The company's stock code is 1855, and its website is **www.zonqing.net**[6](index=6&type=chunk) - The registered office is in the Cayman Islands, and the Hong Kong share registrar is Boardroom Share Registrars (HK) Limited[6] Management Discussion and Analysis Business Review In H1 2025, the Group expanded urban renewal, operation, planning, and cultural tourism services, securing RMB 715.26 million in new contracts - In the first half of 2025, the Group submitted 427 bids, with a successful bid rate of approximately 18.97%[8] New Contract Value in H1 2025 | Indicator | Amount (RMB million) | | :--- | :--- | | New Contract Value | 715.26 | - The Group achieved 7 invention patents, 15 utility model patents, and 3 software copyrights in technological innovation, enhancing its core competitiveness[9] Risk Management Management assists the Board in assessing and implementing risk management and internal controls, with no significant financial reporting deficiencies in H1 2025 - The Group's management assists the Board in assessing significant risks such as investment risk, interest rate risk, and liquidity risk[10] - There were no material internal control deficiencies in financial reporting for the first half of 2025[10] Prospects Despite reduced new orders, China's economic resilience and urban renewal policies offer growth opportunities for the Group to focus on urban ecology, infrastructure, and cultural tourism - In the first half of 2025, China's GDP grew by 5.3% year-on-year, and infrastructure investment increased by 4.6% year-on-year[13] - National policies support urban renewal initiatives, promoting the transformation of old urban communities, industrial areas, and urban ecological systems, providing broad development space for the Group's business[13][14] - The Group will focus on three key areas: "urban ecology + infrastructure + cultural tourism landscape" to enhance its integrated project solution capabilities[14] Financial Review H1 2025 saw a slight revenue decrease, lower gross and net profits, but reduced expected credit losses and increased net current assets and total equity Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 761.9 | 775.6 | -1.8% | | Gross Profit | 151.0 | 175.4 | -13.9% | | Operating Profit | 73.9 | 72.0 | +2.6% | | Profit for the Period | 36.3 | 43.4 | -16.4% | | Basic Earnings Per Share (RMB cents) | 4 | 4 | 0% | | Net Current Assets | 339.8 | 321.4 (Dec 31, 2024) | +5.7% | | Gearing Ratio | 1.08 | 1.11 (Dec 31, 2024) | -2.7% | Revenue The Group's H1 2025 revenue slightly decreased by 1.8% to RMB 761.9 million, impacted by macroeconomic fluctuations and intensified competition Revenue Overview | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 761.9 | 775.6 | -13.7 | -1.8% | Segment Revenue Urban renewal services revenue decreased by 5.3%, while other segments like cultural tourism saw significant growth Segment Revenue Changes | Segment | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Urban Renewal Services | 580.5 | 613.0 | -32.5 | -5.3% | | Urban Operation and Maintenance Services | 121.6 | 115.6 | +6.0 | +5.2% | | Urban Planning and Design Services | 42.8 | 39.0 | +3.8 | +9.8% | | Cultural Tourism | 17.0 | 8.0 | +9.0 | +112.5% | Gross Profit and Gross Profit Margin Gross profit decreased by 13.9% to RMB 151.0 million in H1 2025, mainly due to reduced operating income from slowing market demand and increased competition Gross Profit Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | 151.0 | 175.4 | -24.4 | -13.9% | Net Other Income Net other income decreased by 47.2% to RMB 3.8 million, primarily due to lower interest income Net Other Income Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Other Income | 3.8 | 7.2 | -3.4 | -47.2% | Selling Expenses Selling expenses increased by 17.6% to RMB 14.7 million, driven by increased investment in market promotion and new business development Selling Expenses Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 14.7 | 12.5 | +2.2 | +17.6% | Administrative Expenses Administrative expenses remained relatively stable, at approximately RMB 37.4 million in H1 2025 Administrative Expenses Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Administrative Expenses | 37.4 | 38.0 | -0.6 | -1.6% | Impairment Losses under Expected Credit Loss Model Impairment losses significantly decreased by 52.0% to RMB 28.8 million, attributed to improved client financial health, faster repayments, and optimized collection management Impairment Losses Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Impairment Losses | 28.8 | 60.0 | -31.2 | -52.0% | Finance Costs Finance costs increased by 26.8% to RMB 31.7 million, mainly due to higher average balances of bank and other loans supporting core projects and operating cash flow Finance Costs Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Finance Costs | 31.7 | 25.0 | +6.7 | +26.8% | Share of (Losses)/Profits of Associates Share of associates' results shifted from a RMB 0.4 million profit in H1 2024 to a RMB 1.8 million loss in H1 2025 Share of Associates' Results Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | | :--- | :--- | :--- | :--- | | Share of Associates' Results | -1.8 (Loss) | 0.4 (Profit) | -2.2 | Share of Profits/(Losses) of a Joint Venture Share of a joint venture's results turned from a RMB 0.3 million loss in H1 2024 to a RMB 0.1 million profit in H1 2025, driven by reduced expected credit losses Share of Joint Venture's Results Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Share of Joint Venture's Results | 0.1 (Profit) | -0.3 (Loss) | +0.4 | +133.3% | Income Tax Income tax increased by RMB 0.5 million to RMB 4.2 million, mainly due to reduced deferred tax credits from decreased credit losses Income Tax Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | | :--- | :--- | :--- | :--- | | Income Tax | 4.2 | 3.7 | +0.5 | Net Current Assets Net current assets increased by 5.7% to RMB 339.8 million, primarily due to profit for the period Net Current Assets Changes | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Current Assets | 339.8 | 321.4 | +18.4 | +5.7% | Liquidity and Financial Resources As of June 30, 2025, cash and cash equivalents decreased to RMB 47.2 million, with most of the RMB 889.5 million total borrowings repayable within one year Liquidity Overview | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 47.2 | 122.8 | | Total Borrowings | 889.5 | 884.6 | Gearing Ratio The gearing ratio decreased from 1.11 times (Dec 31, 2024) to 1.08 times (June 30, 2025), driven by increased equity from retained earnings Gearing Ratio Changes | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 1.08 times | 1.11 times | Decrease | Material Acquisitions and Disposals The Group had no material acquisitions or disposals of subsidiaries, associates, and joint ventures in H1 2025 - In the first half of 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[36] Material Investments Held As of June 30, 2025, the Group held no material investments other than its associates and joint ventures - As of June 30, 2025, the Group held no other material investments apart from its associates and joint ventures[37] Contingent Liabilities The Group provided financial guarantees for bank loans of its joint venture Tianjun Tourism and associate Changchun Xianbang, with outstanding balances of RMB 22.775 million and RMB 9.513 million respectively as of June 30, 2025 - The Group provided a bank loan guarantee of RMB 310 million for its joint venture Tianjun Tourism, with an outstanding bank loan balance of RMB 270 million as of June 30, 2025[38] - The Group provided a bank loan guarantee of RMB 330 million for its associate Changchun Xianbang, with an outstanding bank loan balance of RMB 106.5 million as of June 30, 2025[39] Outstanding Balances of Financial Guarantees Issued | Guaranteed Party | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Tianjun Tourism | 22,775 | 24,000 | | Changchun Xianbang | 9,513 | 10,600 | | Total | 32,288 | 34,600 | Future Plans for Material Investments or Capital Assets As of the report date, the Group has no specific plans for material investments or capital assets - As of the date of this report, the Group has no specific plans for any material investments or capital assets[42] Other Information Dividends The Board recommends not to declare an interim dividend for the first half of 2025 - The Board recommends not to declare an interim dividend for the first half of 2025[43] Employees and Remuneration Policy As of June 30, 2025, the Group had 806 employees and a "Remuneration Management Policy" to ensure fair compensation, with the Remuneration Committee reviewing policies for directors, senior management, and employees Number of Employees | Indicator | Number | | :--- | :--- | | Total Employees (June 30, 2025) | 806 | - The Group has formulated a "Remuneration Management Policy" and welfare system to establish a systematic remuneration structure, ensuring transparency and fairness[44] Directors' and Substantial Shareholders' Interests This section discloses directors' and substantial shareholders' interests and short positions in the company's shares and associated corporations Directors' Long Positions in Shares (June 30, 2025) | Director's Name | Nature of Interest | Related Company | Number of Shares | Approximate % of Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | | Mr. Sun Juqing | Spouse's Interest | Zhongqing International Investment Co., Ltd. | 181,202,166 | 65.89% | | Mr. Liu Haitao | Interest in Controlled Corporation | Zhongbang International Investment Co., Ltd. | 14,054,104 | 5.11% | Substantial Shareholders' Long Positions in Shares (June 30, 2025) | Shareholder's Name/Name | Nature of Interest | Number of Shares | Approximate % of Issued Share Capital | | :--- | :--- | :--- | :--- | | Zhongqing International | Beneficial Owner | 181,202,166 | 65.89% | | Ms. Zhao Hongyu | Interest in Controlled Corporation | 181,202,166 | 65.89% | | Mr. Sun Juqing | Spouse's Interest | 181,202,166 | 65.89% | | Zhongbang International | Beneficial Owner | 14,054,104 | 5.11% | | Mr. Liu Haitao | Interest in Controlled Corporation | 14,054,104 | 5.11% | | Ms. Wang Tiannv | Spouse's Interest | 14,054,104 | 5.11% | Sufficiency of Public Float The company maintained a sufficient public float in the first half of 2025 in accordance with the Listing Rules - The company maintained a sufficient public float in the first half of 2025[55] Competing Business The Group and Zhongqing Investment Group have a clear division in municipal construction business and a non-competition undertaking, with no material conflict of interest - The Group's municipal construction business and that of Zhongqing Investment Group are distinguishable by geographical location and nature of services[56] - The ultimate controlling shareholder and Zhongqing Investment Group have provided a non-competition undertaking to the company[56] Shareholders' Rights and Meetings To protect shareholder interests, all resolutions are voted by poll, and shareholders with at least one-tenth voting rights can request extraordinary general meetings or agenda items - Each substantially separate issue should be presented as a separate resolution at general meetings and voted on by poll[57] - Shareholders holding not less than one-tenth of the voting rights in the company's share capital are entitled to request an extraordinary general meeting[58] Share Option Scheme The company's share option scheme incentivizes employees and consultants, with no options granted, exercised, expired, cancelled, or lapsed since listing up to June 30, 2025 - The Share Option Scheme aims to provide incentives or rewards to individuals who have contributed to the company and/or any of its subsidiaries[62] - Since its listing and up to June 30, 2025, no share options have been granted under the Share Option Scheme, nor are there any outstanding share options[62] Purchase, Sale and Redemption of Listed Securities The company held no treasury shares and did not purchase, sell, or redeem any listed securities in the first half of 2025 - In the first half of 2025, the company held no treasury shares and did not purchase, sell, or redeem any listed securities[63][64] Related Party Transactions Material related party transactions in H1 2025 are detailed in Note 19, complying with Listing Rules disclosure, with no other significant arrangements - Material related party transactions entered into by the Group in the first half of 2025 are set out in Note 19 and comply with the disclosure requirements of the Listing Rules[65] Corporate Governance Practices The company adopted the Corporate Governance Code in Appendix C1 of the Listing Rules and will continue to strengthen its corporate governance - The company has adopted the Corporate Governance Code in Appendix C1 of the Listing Rules and will continue to review and strengthen its corporate governance[68] Review of Interim Financial Information The Group's unaudited interim results and financial statements for the six months ended June 30, 2025, have been reviewed by the Audit Committee - The Group's unaudited interim results and financial statements for the six months ended June 30, 2025, have been reviewed by the Audit Committee[69] Consolidated Statement of Profit or Loss This statement presents the Group's H1 2025 financial performance, with profit for the period decreasing to RMB 36.332 million from RMB 43.412 million YoY Key Data from Consolidated Statement of Profit or Loss | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 761,932 | 775,648 | -13,716 | -1.8% | | Cost of Sales | (610,937) | (600,287) | -10,650 | +1.8% | | Gross Profit | 150,995 | 175,361 | -24,366 | -13.9% | | Operating Profit | 73,889 | 72,036 | +1,853 | +2.6% | | Profit Before Tax | 40,483 | 47,141 | -6,658 | -14.1% | | Profit for the Period | 36,332 | 43,412 | -7,080 | -16.3% | | Profit Attributable to Equity Holders of the Company | 29,333 | 34,259 | -4,926 | -14.4% | | Basic and Diluted Earnings Per Share (RMB cents) | 4 | 4 | 0 | 0% | Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement shows the Group's H1 2025 total comprehensive income decreased to RMB 35.592 million from RMB 43.916 million YoY Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Profit for the Period | 36,332 | 43,412 | -7,080 | -16.3% | | Other Comprehensive Income for the Period | (740) | 504 | -1,244 | -246.8% | | Total Comprehensive Income for the Period | 35,592 | 43,916 | -8,324 | -18.9% | | Total Comprehensive Income Attributable to Equity Holders of the Company | 28,593 | 34,763 | -6,170 | -17.8% | Consolidated Statement of Financial Position This statement presents the Group's financial position as of June 30, 2025, with total assets less current liabilities of RMB 827.034 million and total equity of RMB 820.880 million Key Data from Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Non-current Assets | 487,185 | 483,674 | +3,511 | +0.7% | | Current Assets | 4,026,934 | 3,899,855 | +127,079 | +3.3% | | Current Liabilities | 3,687,085 | 3,578,496 | +108,589 | +3.0% | | Net Current Assets | 339,849 | 321,359 | +18,490 | +5.7% | | Total Assets Less Current Liabilities | 827,034 | 805,033 | +22,001 | +2.7% | | Non-current Liabilities | 6,154 | 9,841 | -3,687 | -37.5% | | Net Assets | 820,880 | 795,192 | +25,688 | +3.2% | | Total Equity | 820,880 | 795,192 | +25,688 | +3.2% | Consolidated Statement of Changes in Equity This statement shows the Group's equity movements for H1 2025, with total equity increasing from RMB 795.192 million to RMB 820.880 million Key Data from Consolidated Statement of Changes in Equity | Indicator | January 1, 2025 (RMB thousand) | June 30, 2025 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Total Equity Attributable to Equity Holders of the Company | 668,974 | 700,732 | +31,758 | | Non-controlling Interests | 126,218 | 120,148 | -6,070 | | Total Equity | 795,192 | 820,880 | +25,688 | | Profit for the Period | - | 36,332 | +36,332 | | Other Comprehensive Income | - | (740) | -740 | | Acquisition of Non-controlling Interests | - | (9,904) | -9,904 | Condensed Consolidated Statement of Cash Flows This statement presents the Group's H1 2025 cash flows, with cash and cash equivalents significantly decreasing to RMB 47.159 million at period-end Key Data from Condensed Consolidated Statement of Cash Flows | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Net Cash From/(Used In) Operating Activities | 18,722 | (182,791) | +201,513 | | Net Cash Used In Investing Activities | (38,597) | (36,366) | -2,231 | | Net Cash (Used In)/From Financing Activities | (55,732) | 69,938 | -125,670 | | Net Decrease in Cash and Cash Equivalents | (75,607) | (149,219) | +73,612 | | Cash and Cash Equivalents at June 30 | 47,159 | 61,190 | -14,031 | Notes to the Unaudited Interim Financial Report 1 Company Information The company, incorporated in the Cayman Islands and listed in Hong Kong, primarily provides construction, maintenance, and environmental sanitation services, ultimately controlled by Mr. Sun Juqing and Ms. Zhao Hongyu - The company was incorporated in the Cayman Islands on March 8, 2019, and listed on the Hong Kong Stock Exchange on January 6, 2021[87] - The Group primarily engages in construction and maintenance services for landscaping, ecological restoration, and public works projects, provides environmental sanitation services, and other related projects[87] 2 Basis of Preparation This interim financial report is prepared under HKEX Listing Rules and IAS 34, authorized for issue on August 21, 2025 - This interim financial report is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and was authorized for issue on August 21, 2025[88] 3 Changes in Accounting Policies The Group applied IAS 21 (Amendment) "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," with no material impact due to no non-exchangeable foreign currency transactions - The Group has applied IAS 21 (Amendment) "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," but it has no material impact on this interim financial report[90] 4 Revenue and Segment Reporting The Group manages four segments: urban renewal, urban operation, urban planning, and cultural tourism, with H1 2025 total revenue of RMB 761.932 million, primarily from urban renewal, and significant growth in cultural tourism - The Group's business is divided into four reportable segments: urban renewal services, urban operation and maintenance services, urban planning and design services, and cultural tourism[92] Revenue Breakdown by Major Product or Service Item | Segment | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Urban Renewal Services Revenue | 580,505 | 613,016 | | Urban Operation and Maintenance Services Revenue | 121,635 | 115,586 | | Urban Planning and Design Services Revenue | 42,841 | 39,015 | | Cultural Tourism Revenue | 16,951 | 8,031 | | Total | 761,932 | 775,648 | 5 Profit Before Tax This section details profit before tax components, including H1 2025 finance costs of RMB 31.688 million and R&D costs of RMB 52.264 million Finance Costs | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on bank and other loans and related party loans | 31,578 | 24,847 | | Interest on lease liabilities | 110 | 113 | | Total | 31,688 | 24,960 | Other Items | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Research and Development Costs | 52,264 | 36,677 | | Cost of Inventories | 176,987 | 242,873 | | Depreciation of Property, Plant and Equipment | 4,429 | 4,773 | 6 Income Tax The Group's H1 2025 income tax was RMB 4.151 million, with Chinese subsidiaries subject to 25% CIT, and four high-tech enterprises enjoying a 15% preferential rate and 100% R&D deduction Income Tax Components | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Tax | 9,575 | 14,102 | | Deferred Tax | (5,424) | (10,373) | | Total | 4,151 | 3,729 | - Four of the Group's subsidiaries established in China enjoy a preferential tax rate of 15% as high-tech enterprises and a 100% additional deduction for eligible R&D costs[105] 7 Earnings Per Share Basic earnings per share for H1 2025 remained at RMB 4 cents, consistent with prior year, following a share split on August 1, 2024 Earnings Per Share | Indicator | H1 2025 (RMB cents) | H1 2024 (RMB cents) | | :--- | :--- | :--- | | Basic and Diluted Earnings Per Share | 4 | 4 | - On August 1, 2024, the company split each share of HKD 0.001 par value into three shares of HKD 0.0003 par value, adjusting the number of issued ordinary shares to 825,000,000[107] 8 Contract Assets and Contract Liabilities As of June 30, 2025, total contract assets were RMB 1,149.451 million and liabilities RMB 1,105.062 million, with most assets billed after one year and all liabilities recognized as revenue within one year Contract Assets and Contract Liabilities | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Contract Assets | 1,149,451 | 1,132,150 | | Contract Liabilities | 1,105,062 | 726,695 | - Despite contractual terms, the directors believe that RMB 509,304,000 of contract assets are expected to be billed after one year as of the end of the reporting period[110] - All contract liabilities are expected to be recognized as revenue within one year[113] 9 Trade and Bills Receivables As of June 30, 2025, net trade and bills receivables totaled RMB 2,283.132 million, with RMB 995.621 million due within one year Trade and Bills Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Gross Trade and Bills Receivables | 2,707,289 | 2,710,091 | | Less: Loss Allowance | (424,157) | (408,413) | | Net Amount | 2,283,132 | 2,301,678 | Ageing Analysis of Trade and Bills Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 995,621 | 1,014,258 | | 1 to 2 years | 646,937 | 719,257 | | 2 to 3 years | 334,395 | 203,285 | | 3 to 4 years | 147,891 | 229,910 | | 4 to 5 years | 55,292 | 47,957 | | Over 5 years | 102,996 | 87,011 | | Total | 2,283,132 | 2,301,678 | 10 Cash and Cash Equivalents As of June 30, 2025, cash and cash equivalents were RMB 47.159 million, including RMB 27.500 million in restricted bank deposits Cash and Cash Equivalents | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cash and bank balances | 74,659 | 138,379 | | Less: Restricted bank deposits | (27,500) | (15,600) | | Net Cash and Cash Equivalents | 47,159 | 122,779 | - Restricted bank deposits are primarily held as collateral for notes and bank loans issued by the Group[116] 11 Trade and Bills Payables As of June 30, 2025, total trade and bills payables amounted to RMB 1,285.561 million, with RMB 297.827 million due within one year Trade and Bills Payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 1,266,061 | 1,568,645 | | Bills Payables | 19,500 | 9,500 | | Total | 1,285,561 | 1,578,145 | Ageing Analysis of Trade and Bills Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 297,827 | 721,926 | | 1 to 3 years | 858,080 | 713,244 | | Over 3 years | 129,654 | 142,975 | | Total | 1,285,561 | 1,578,145 | 12 Accruals and Other Payables As of June 30, 2025, total accruals and other payables were RMB 380.688 million, including RMB 32.288 million in financial guarantees issued Accruals and Other Payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Amounts due to Zhongqing Investment and its subsidiaries, joint ventures and associates | 83,553 | 78,512 | | Amounts due to third parties | 28,473 | 41,473 | | Staff-related costs payable | 60,758 | 68,495 | | Financial guarantees issued | 32,288 | 34,600 | | Other taxes payable | 114,693 | 76,780 | | Total | 380,688 | 353,986 | 13 Bank and Other Borrowings As of June 30, 2025, total bank and other borrowings were RMB 889.480 million, mostly repayable within one year, with some loans guaranteed by related parties or secured by Group assets Composition of Bank and Other Borrowings | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank Loans | 832,500 | 873,715 | | Other Loans | 56,980 | 10,946 | | Total | 889,480 | 884,661 | Bank and Other Borrowings Repayable | Term | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year or on demand | 889,480 | 882,813 | | After 1 year but within 2 years | — | 1,848 | | Total | 889,480 | 884,661 | Pledged Assets | Pledged Assets | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade and Contract Assets | 23,106 | 17,473 | | Bank Deposits | 21,900 | 15,000 | 14 Deferred Tax Assets and Liabilities As of June 30, 2025, net deferred tax assets were RMB 110.617 million and net deferred tax liabilities RMB 1.915 million, totaling RMB 108.702 million Reconciliation of Deferred Tax Assets and Liabilities | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Deferred Tax Assets | 110,617 | 105,214 | | Net Deferred Tax Liabilities | (1,915) | (1,930) | | Total | 108,702 | 103,284 | 15 Capital, Reserves and Dividends As of June 30, 2025, issued ordinary shares totaled 825,000,000 (HKD 0.0003 par value each), and no interim dividend is recommended for H1 2025 Share Capital | Item | Number of Shares | HKD thousand | | :--- | :--- | :--- | | Authorized Ordinary Shares (HKD 0.0003 each) | 30,000,000,000 | 10,000 | | Issued and Fully Paid Ordinary Shares (June 30, 2025) | 825,000,000 | 230 | - The directors do not recommend the payment of a dividend for the six months ended June 30, 2025[130] 16 Fair Value Measurement of Financial Instruments This section presents the fair value of the Group's financial instruments, categorized into IFRS 13's three fair value hierarchy levels, with other equity investments primarily classified as Level 3 Fair Value Measurements Categorized within Level 3 | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Other Equity Investments | 68,312 | 68,351 | - Valuation techniques for other equity investments include the market comparable company approach (with a 20.4% discount for lack of marketability) and the discounted cash flow method (with discount rates of 7% and 9.3%)[133] 17 Commitments As of June 30, 2025, the Group's authorized but not contracted capital commitments amounted to RMB 7.253 million Capital Commitments | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Authorized but not contracted | 7,253 | 15,824 | 18 Contingent Liabilities The Group provided financial guarantees for bank loans of its joint venture Tianjun Tourism and associate Changchun Xianbang, with outstanding balances of RMB 22.775 million and RMB 9.513 million respectively as of June 30, 2025 - The Group provided a guarantee for Tianjun Tourism's bank loan, with an outstanding bank loan balance of RMB 270 million and an unamortized guarantee balance of RMB 22.775 million as of June 30, 2025[140] - The Group provided a guarantee for Changchun Xianbang's bank loan, with an outstanding bank loan balance of RMB 106.5 million and an unamortized guarantee balance of RMB 9.513 million as of June 30, 2025[141] 19 Material Related Party Transactions This section details the Group's material related party transactions, including key management compensation and transactions/balances with Zhongqing Investment and its affiliates Key Management Personnel Compensation | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Salaries and other emoluments | 5,854 | 6,045 | | Contributions to defined contribution retirement plans | 591 | 509 | | Total | 6,445 | 6,554 | - Transactions with Zhongqing Investment and its subsidiaries, joint ventures, and associates include providing construction, surveying, design, technical consulting, and other services, as well as receiving services, purchasing goods, lease expenses, loans, and advances[144] - As of June 30, 2025, balances with related parties include contract assets, trade receivables, trade payables, contract liabilities, accruals and other payables, prepayments, bank and other borrowings, and guarantees provided by related parties for bank loans[149][150][151][152] Definitions and Glossary of Technical Terms This section provides definitions for key terms, abbreviations, and technical jargon used in this interim report - This glossary defines key terms used in the report, such as "the Group," "H1 2025," and "Listing Rules"[154][155][157]