中国建筑兴业(00830) - 2025 - 中期财报

Company Business Structure China State Construction International Holdings Limited's business structure primarily comprises construction engineering and operation management businesses - China State Construction International Holdings Limited's business structure primarily comprises construction engineering and operation management businesses[4] Board of Directors and Committees The report lists Board members, including Chairman, Executive Directors, Non-executive Directors, and Independent Non-executive Directors, along with their roles in audit, remuneration, nomination, and sustainability committees - The report lists Board members, including Chairman, Executive Directors, Non-executive Directors, and Independent Non-executive Directors, along with their roles in audit, remuneration, nomination, and sustainability committees[5] - The Board Chairman is Wang Xiaoguang (Non-executive Director), and the CEO and Executive Director is Zhu Haiming[5] - The company has an Audit Committee, Remuneration Committee, Nomination Committee, and Sustainability Committee, all with Independent Non-executive Directors participating[5] Company Information This section provides essential company details, including authorized representatives, company secretary, registered and head offices, auditor, principal bankers, stock code, website, and key financial dates - Essential company information is provided, including authorized representatives, company secretary, registered and head offices, auditor, principal bankers, stock code, website, and key financial dates[6] - The company's stock code is 00830, and its website is **www.cscd.com.hk**[6](index=6&type=chunk) - The 2025 interim results announcement date is August 19, the ex-dividend date is September 16, and the interim dividend payment date is October 24[6] Chairman's Statement The Chairman's report reviews the Group's H1 2025 performance, emphasizing its focus on the curtain wall business, outlining operating strategies in Hong Kong, Macau, mainland China, and overseas markets, and discussing new business developments like BIPV, while also looking ahead to H2 market opportunities and strategic directions including brand strengthening, technological innovation, digital transformation, and sustainable development Performance Review This section details the Group's H1 2025 performance and key achievements in curtain wall business across Hong Kong, Macau, mainland China, Singapore, and Belt and Road markets, as well as BIPV new business, general contracting, and operation management businesses Key Metrics | Metric | H1 2025 | | :--- | :--- | | Main Business Revenue | HKD 3.338 billion | | Profit Attributable to Shareholders | HKD 386 million | | Earnings Per Share | HKD 17.12 cents | | Interim Dividend | HKD 5.0 cents per share | - The Group continues to focus on its core curtain wall business, with a strategy of 'deepening roots in Hong Kong and Macau, consolidating mainland China, and focusing on key overseas markets'[7] - Actively responding to market downturn pressures by empowering with innovative technologies and enhancing efficiency through refined management and cost reduction[7] - The global economy may slow due to trade policy uncertainties, while China's economy maintains a stable and improving trend[8] - Curtain wall business in Hong Kong and Macau maintains market leadership, securing multiple medium-to-large projects and expanding into curtain wall inspection, repair, and upgrade services[9] - The Macau Galaxy Phase 4 project successfully completed its Phase 1 objectives, maintaining close cooperation with major clients like Sands, MGM, and Galaxy[10] - The mainland China curtain wall market adheres to a differentiated competition strategy, securing landmark projects such as Guangzhou Taikoo Poly Long Bay and Shenzhen Huawei Baicaoyuan[10] - Accelerating expansion into the Singapore market, securing the Changi Airport Terminal 2 Hotel project, with market share expected to steadily increase[10] - BIPV, a key new business development, has overcome critical technologies, achieved product commercialization, signed a HKD 10 billion framework agreement with Kunshan Municipal Government, and secured the Shenzhen Qianhai Huafa Ice and Snow World project[12] - General contracting business developed steadily, securing the Tsim Sha Tsui Observatory Headquarters project[13] - Operation management business (CSCI Supervision) is transforming into a 'technology + supervision + consulting + project management' full industry chain, while Huanggu Thermal Power actively expands its heating market and achieves energy saving and consumption reduction[14][15] Future Outlook Looking ahead to H2, the Group anticipates continued global economic downside risks but stable growth in China and Hong Kong/Macau, presenting numerous project opportunities, while focusing on its core curtain wall business, strengthening BIPV as a new growth driver, expanding curtain wall industry chain services, and deepening ESG practices for high-quality sustainable development - China's economy is expected to maintain steady progress in H2, with Hong Kong and Macau integrating into national development, and the Northern Metropolis, major Macau projects, and the 'Belt and Road' initiative presenting numerous market opportunities[16] - The curtain wall business will continue to 'target high-end markets and provide high-quality services,' optimizing its global layout, strengthening brand promotion and market development, and enhancing digitalization[16] - BIPV is a new growth point for the future curtain wall business, with plans to create demonstration projects in high-tier cities, promote near-zero energy buildings, and strengthen communication with national ministries to advance BIPV policies and standards[17] - Actively expanding into curtain wall industry chain services, developing the market for inspection, repair, and renovation of old curtain walls, and exploring the 'high-altitude robot' niche[17] - Adhering to high-quality and sustainable development strategies, integrating ESG considerations into business, deepening climate risk management, and promoting supply chain carbon data collection and reduction[18] Management Discussion and Analysis This section details the Group's H1 2025 financial performance, including declines in total turnover and profit attributable to shareholders, with segment analysis for curtain wall and contracting, operation management, administrative expenses, and finance costs, also disclosing new contracts, liquidity, financial resources, treasury policy, foreign exchange risk, and employee remuneration policy Overall Performance In H1 2025, the Group's total turnover decreased by 29.3% to HKD 3.338 billion, profit attributable to shareholders decreased by 29.8% to HKD 386 million, and basic earnings per share decreased by 29.9% to HKD 17.12 cents year-on-year Overall Financial Performance | Metric | H1 2025 | H1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total Turnover | HKD 3.338 billion | HKD 4.722 billion | -29.3% | | Profit Attributable to Shareholders | HKD 386 million | HKD 550 million | -29.8% | | Basic and Diluted EPS (HKD cents) | 17.12 | 24.41 | -29.9% | Segment Analysis Curtain wall and contracting business revenue decreased by 32.4% to HKD 2.849 billion due to large project completions, with operating profit down 31.4%; operation management revenue declined due to RMB depreciation but operating profit increased through cost control; administrative, selling, and other operating expenses and finance costs both decreased, reflecting effective cost control and strategic financing allocation Segmental Revenue and Operating Profit | Segment | H1 2025 Revenue (HKD billion) | H1 2024 Revenue (HKD billion) | Y-o-Y Change | H1 2025 Operating Profit (HKD billion) | H1 2024 Operating Profit (HKD billion) | Y-o-Y Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Curtain Wall and Contracting Business | 2.849 | 4.214 | -32.4% | 0.436 | 0.636 | -31.4% | | Operation Management Business | 0.489 | 0.508 | -3.7% | 0.079 | 0.065 | +21.5% | - Administrative, selling, and other operating expenses decreased to HKD 128 million (2024: HKD 132 million), primarily due to stringent cost control[23] - Finance costs decreased to HKD 31 million (2024: HKD 35 million), with significant strategic financing allocation effectiveness achieved through bank loan replacement and early refinancing[24] New Contracts Awarded For the six months ended June 30, 2025, the Group recorded cumulative new contract awards of HKD 4.711 billion - Cumulative new contract awards for H1 2025 amounted to HKD 4.711 billion[25] Liquidity and Financial Resources The Group primarily finances through internal cash flow and bank credit; as of June 30, 2025, cash and bank balances were HKD 824 million, total bank borrowings were HKD 1.763 billion, and the net gearing ratio was approximately 31.9%, with ample financial resources including HKD 7.439 billion in unutilized bank facilities Key Metrics | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank Balances and Cash | HKD 824 million | HKD 982 million | | Total Bank Borrowings | HKD 1.763 billion | HKD 1.581 billion | | Net Gearing Ratio (%) | 31.9% | 23.4% | | Unutilized Bank Facilities | HKD 7.439 billion | N/A | - The Group possesses sufficient financial resources to support business development and expansion[26] Bank Borrowings Maturity Profile | Maturity Profile | Six Months Ended June 30, 2025 (HKD thousand) | Six Months Ended June 30, 2024 (HKD thousand) | | :--- | :--- | :--- | | Repayable on demand or within one year | 667,653 | 583,341 | | More than one year but not exceeding two years | 1,959 | - | | More than two years but not exceeding five years | 1,093,057 | 997,607 | | Total | 1,762,669 | 1,580,948 | Currency Breakdown of Borrowings | Currency | Share (%) | | :--- | :--- | | RMB | 56 | | HKD | 33 | | USD | 1 | | MOP | 1 | | Others | 9 | - Equity attributable to the Company's shareholders was HKD 3.062 billion (December 31, 2024: HKD 2.674 billion)[28] - Share repurchases conducted during the period contributed to enhancing shareholder value[29] Treasury Policy The Group adopts a prudent treasury policy, centrally managing risks and reducing funding costs, with most cash held in short-term HKD or RMB deposits, and regularly reviews liquidity needs to maintain an appropriate asset-liability level - The Group adopts a prudent treasury policy, centralizing treasury matters to effectively manage risks and reduce funding costs[30] - Most cash is held in short-term HKD or RMB deposits, with liquidity and financial requirements regularly reviewed[30] Foreign Exchange Fluctuation Risk The Group's foreign currency risk primarily arises from sales or purchases denominated in non-functional currencies; currently, there is no formal foreign currency hedging policy, but exchange rate movements are closely monitored, and natural hedging strategies are employed - Foreign currency risk primarily arises from sales or purchases denominated in USD, RMB, AUD, CAD, GBP, and MOP[31] - Currently, there is no formal foreign currency hedging policy, but exchange rate movements are closely monitored, and natural hedging strategies are employed[31] Employees and Remuneration Policy As of June 30, 2025, the Group employed 3,834 staff, implementing an effective management incentive policy and competitive remuneration, including basic salary, allowances, benefits, and discretionary bonuses, which are regularly reviewed based on market conditions and employee performance Employee Headcount | Date | Number of Employees | | :--- | :--- | | June 30, 2025 | 3,834 | | December 31, 2024 | 4,006 | - The Group has an effective management incentive policy and competitive remuneration, including basic salary, allowances, fringe benefits, and discretionary bonuses[32] Unaudited Condensed Consolidated Statement of Profit or Loss The Group's H1 2025 turnover was HKD 3.338 billion, gross profit HKD 588 million, profit for the period HKD 385 million, profit attributable to Company shareholders HKD 386 million, and basic and diluted earnings per share HKD 17.12 cents, with all indicators showing a decrease compared to the same period last year Revenue and Profit Metrics | Metric | Six Months Ended June 30, 2025 (HKD thousand) | Six Months Ended June 30, 2024 (HKD thousand) | | :--- | :--- | :--- | | Turnover (HKD thousand) | 3,338,064 | 4,722,048 | | Gross Profit (HKD thousand) | 588,035 | 760,634 | | Profit for the Period (HKD thousand) | 384,665 | 545,668 | | Profit Attributable to Company Shareholders (HKD thousand) | 386,159 | 550,470 | | Basic and Diluted EPS (HKD cents) | 17.12 | 24.41 | Unaudited Condensed Consolidated Statement of Comprehensive Income The Group's H1 2025 profit for the period was HKD 385 million, with other comprehensive income primarily from exchange differences on translation of foreign operations (HKD 65.77 million), resulting in a total comprehensive income for the period of HKD 451 million Comprehensive Income Summary | Metric | Six Months Ended June 30, 2025 (HKD thousand) | Six Months Ended June 30, 2024 (HKD thousand) | | :--- | :--- | :--- | | Profit for the Period (HKD thousand) | 384,665 | 545,668 | | Exchange Differences on Translation of Foreign Operations (HKD thousand) | 65,765 | (69,756) | | Total Comprehensive Income for the Period (HKD thousand) | 450,952 | 476,513 | | Total Comprehensive Income Attributable to Company Shareholders (HKD thousand) | 451,200 | 482,170 | Unaudited Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets increased to HKD 11.918 billion from HKD 11.502 billion at year-end 2024; non-current assets remained stable, while contract assets within current assets significantly increased; total equity was HKD 2.947 billion, with equity attributable to Company shareholders at HKD 3.062 billion Financial Position Summary | Metric | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | Total Non-current Assets (HKD thousand) | 1,943,202 | 1,928,607 | | Total Current Assets (HKD thousand) | 9,974,343 | 9,573,764 | | Total Assets (HKD thousand) | 11,917,545 | 11,502,371 | | Total Current Liabilities (HKD thousand) | 7,300,795 | 7,343,772 | | Total Non-current Liabilities (HKD thousand) | 1,669,512 | 1,598,411 | | Total Equity (HKD thousand) | 2,947,238 | 2,560,188 | | Equity Attributable to Company Shareholders (HKD thousand) | 3,062,010 | 2,674,712 | - Contract assets increased from HKD 5.411 billion at year-end 2024 to HKD 6.129 billion as of June 30, 2025[35] - Contract liabilities decreased from HKD 797 million at year-end 2024 to HKD 302 million as of June 30, 2025[35] Unaudited Condensed Consolidated Statement of Changes in Equity As of June 30, 2025, equity attributable to Company shareholders increased to HKD 3.062 billion (year-end 2024: HKD 2.675 billion), primarily influenced by profit for the period and changes in foreign currency translation reserves, with share repurchases and the 2024 final dividend distribution also occurring during the period Changes in Equity Summary | Metric | Six Months Ended June 30, 2025 (HKD thousand) | January 1, 2024 (HKD thousand) | | :--- | :--- | :--- | | Total Equity Attributable to Company Shareholders (HKD thousand) | 3,062,010 | 2,401,822 | | Profit for the Period (HKD thousand) | 386,159 | 550,470 | | Exchange Differences on Translation of Foreign Operations (HKD thousand) | 64,519 | (68,901) | | Share Repurchase (HKD thousand) | (747) | - | | 2024 Final Dividend (HKD thousand) | (63,155) | (72,177) | Unaudited Condensed Consolidated Statement of Cash Flows In H1 2025, the Group reported net cash outflow from operating activities of HKD 259 million, net cash outflow from investing activities of HKD 63 million, and net cash inflow from financing activities of HKD 168 million, resulting in a decrease in cash and cash equivalents to HKD 817 million at period-end Cash Flow Summary | Metric | Six Months Ended June 30, 2025 (HKD thousand) | Six Months Ended June 30, 2024 (HKD thousand) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities (HKD thousand) | (259,059) | (258,844) | | Net Cash From Investing Activities (HKD thousand) | (62,926) | 17,449 | | Net Cash From Financing Activities (HKD thousand) | 167,780 | 224,154 | | Decrease in Cash and Cash Equivalents (HKD thousand) | (154,205) | (17,241) | | Cash and Cash Equivalents at Period-End (HKD thousand) | 816,869 | 666,175 | - Cash outflow for the acquisition of property, plant, and equipment significantly increased from HKD 19.05 million in H1 2024 to HKD 65.43 million in H1 2025[38] Notes to the Unaudited Condensed Consolidated Financial Statements The notes to the financial statements detail the basis of preparation, changes in accounting policies, critical estimates, segment information, other income, finance costs, profit before tax, income tax, dividends, earnings per share, property, plant and equipment, infrastructure project investments, trade and other receivables, bank borrowings, trade and other payables, share capital, commitments, and related party transactions Basis of Preparation The condensed consolidated financial statements are prepared in accordance with Appendix D2 of the HKEX Listing Rules and HKAS 34 'Interim Financial Reporting' issued by the HKICPA, using the historical cost convention and presented in HKD - The financial statements are prepared in accordance with Appendix D2 of the HKEX Listing Rules and HKAS 34 'Interim Financial Reporting' issued by the HKICPA[39] - The historical cost convention is adopted, except for investment properties measured at fair value, and presented in HKD[39] Changes in Accounting Policies and Disclosures This period's financial statements first apply HKAS 21 (Amendment) 'Lack of Exchangeability,' which has no material impact on the Group's performance or financial position - HKAS 21 (Amendment) 'Lack of Exchangeability' is applied for the first time in this period[41] - The aforementioned amendment has no material impact on the Group's performance or financial position[41] Estimates The preparation of financial statements involves management judgments, estimates, and assumptions, with the primary sources of estimation uncertainty being the same as those used in the 2024 annual consolidated