TENGDA CONST.(SH:600512)2022-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2022 was CNY 3,111,493,225.44, representing a decrease of 8.10% compared to CNY 3,385,769,183.58 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was a loss of CNY 35,724,423.7, a decline of 106.00% from a profit of CNY 595,012,013.62 in the previous year[19]. - The net cash flow from operating activities was CNY 40,218,240.27, down 88.81% from CNY 359,548,452.37 in the same period last year[19]. - The basic earnings per share for the first half of 2022 was -CNY 0.02, compared to CNY 0.37 in the same period last year[20]. - The weighted average return on net assets was -0.59%, down from 11.11% in the previous year[20]. - The company reported a decrease of 65.78% in net profit after deducting non-recurring gains and losses, with a figure of CNY 196,479,877.22 compared to CNY 574,239,867.63 last year[19]. - Operating profit fell to CNY 109 million, down CNY 602 million or 84.65% year-on-year, mainly due to reduced profits from real estate sales and losses in the secondary securities market[32]. - The company reported a net profit attributable to shareholders of CNY -36 million, a decrease of CNY 631 million compared to the previous year[32]. - The company reported a net profit margin of 0.06% for its investment management operations, indicating a need for improved efficiency[16]. - The company reported a net loss attributable to shareholders of CNY -35,724,423.7 in the first half of 2022, contrasting with a profit of CNY 595,012,013.62 in the same period of 2021[108]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 10,829,586,962.38, a decrease of 6.34% from CNY 11,562,696,187.26 at the end of the previous year[20]. - The net assets attributable to shareholders of the listed company were CNY 6,028,245,543.65, a slight decrease of 0.20% from CNY 6,040,158,168.86 at the end of the previous year[19]. - Total assets decreased by 26.83% to CNY 2,232,456,094.92 from CNY 3,051,018,586.77[38]. - The company's total liabilities decreased from RMB 5,643,959,462.24 to RMB 4,858,968,715.22, reflecting a reduction of about 13.91%[101]. - Current assets totaled RMB 7,733,226,469.09, down from RMB 8,445,342,483.01, indicating a decrease of approximately 8.42%[99]. - The company's total equity attributable to shareholders was RMB 6,028,245,543.65, slightly down from RMB 6,040,158,168.86, a decrease of about 0.20%[101]. - The non-current liabilities increased from RMB 507,759,679.16 to RMB 900,474,737.98, reflecting an increase of approximately 77.06%[101]. - The company's contract liabilities decreased from RMB 1,337,103,284.71 to RMB 683,442,453.86, a decline of about 48.92%[100]. Business Operations - The company's main business is construction engineering, accounting for 76.35% of total revenue[24]. - The company has not added new land reserves since 2014, focusing on digesting existing inventory in real estate development[24]. - The company holds various construction qualifications, including special-grade for municipal public engineering and first-grade for highway engineering[25]. - The financing construction contract model, including BT and PPP, allows the company to provide both construction and financing services[26]. - The construction industry is heavily influenced by fixed asset investment, particularly in infrastructure and real estate development[26]. - The company has improved its net assets and new contract capabilities significantly after two rounds of private placements[27]. - The company has been recognized as a high-tech enterprise, which provides tax benefits and enhances its competitiveness for high-difficulty projects[27]. - The company has received multiple awards for engineering quality, including the "Zhan Tianyou Award" and "Lichun Award"[28]. - The construction industry is currently in a mature stage with intense competition and generally low profit margins[27]. - The company aims to strengthen its core business and promote sustainable development by seizing market opportunities[27]. Research and Development - The company established 19 research projects and obtained 31 patents during the reporting period, indicating a strong focus on innovation and technology development[31]. - Research and development expenses increased by 14.40% to CNY 82.8 million, reflecting the company's commitment to improving construction technology[34]. - Research and development expenses rose to CNY 82,803,377.66, an increase of 14.56% compared to CNY 72,378,156.44 in the first half of 2021[106]. Market Presence - The company is actively expanding its market presence, conducting business activities in provinces such as Fujian, Hubei, Sichuan, Chongqing, Jiangxi, and Anhui during the reporting period[31]. - The company is focusing on expanding its market presence in the real estate sector, with a reported revenue of 94,411.80 million, up from 73,222.24 million, indicating a growth of approximately 28.9%[11]. Risk Management - The company has identified macroeconomic fluctuations as a risk factor, which could impact its construction and infrastructure projects[50]. - The firm is facing competitive pressures in expanding its operations outside its home region, particularly in major cities like Shanghai and Hangzhou[50]. - The company acknowledges potential investment risks influenced by national policies, economic conditions, and market competition[52]. - The company is enhancing its risk warning mechanisms to assess the creditworthiness and repayment ability of project buyers comprehensively[51]. - The company is exposed to credit risks related to accounts receivable and is conducting regular credit assessments of trading clients[52]. Environmental Management - The company has established a complete environmental management system to ensure compliance with environmental standards[60]. - The company has implemented measures to manage environmental impacts at project sites, including real-time monitoring systems[60]. Contracts and Bids - The company has ongoing construction contracts exceeding RMB 50 million, including a project with a total price of RMB 864.18 million for the Shanghai East Passage expansion, which is still in progress due to changes in the construction plan[68]. - The company won a bid for the Hangzhou Metro Line 3 construction project with a contract value of RMB 1,190.35 million, which has a duration of 1,584 calendar days[68]. - The company is involved in a joint bid for the "Zhijiang Road Water Supply Pipeline and Road Improvement Project" with a tentative total contract price of RMB 1,727.05 million, with a construction period of 973 calendar days[69]. - The company has a contract for the Taizhou Eastern New District municipal road infrastructure project with a contract value of RMB 1,405.89 million, which is still under construction due to delays caused by the owner's reasons[68]. - The company won the bid for the "G59 Hunan Province Guanzhuang to Xinhua Expressway Project" with a contract value of 821.890515 million RMB and a construction period of 1095 calendar days[71]. - The company secured the "Hangzhou Qianjiang Road Tunnel Extension Project" with a bid amount of 272.933930 million RMB, which is still under construction due to pandemic impacts[71]. - The company was awarded the "Shanghai Rail Transit Airport Link Project" with a contract value of 480.80 million RMB and a construction period of 922 calendar days[71]. - The company won the "Ningbo Rail Transit Line 8 Phase I Construction Project" with a bid amount of 241.05 million RMB and a construction period of 1826 calendar days[73]. - The company secured the "Hangzhou Metro Line 5 Phase II Project" with a contract value of 724.318793 million RMB and a construction period of 921 calendar days[73]. - The company was awarded the "Zhejiang Province Huhang Expressway Wuxing to Deqing Section Project" with a bid amount of 1212.562020 million RMB and a construction period of 941 calendar days[72]. - The company won the bid for the "Shanghai Rail Transit Line 21 Phase I Project" with a contract value of 478.5999999 million RMB and a construction period of 1554 calendar days[75]. - The company secured the "Fuzhou Changle Airport Comprehensive Transportation Hub Project" with a bid amount of 391.093891 million RMB and a construction period of 730 calendar days[75]. - The company was awarded the "Hangzhou Metro Line 9 Phase I Road Restoration Project" with a contract value of 104.195566 million RMB and a construction period of 82 calendar days[76]. - The company won the bid for the "Taizhou Bay Digital Economy Industrial Park Phase I Project" with a contract value of 61.9764 million RMB and a construction period of no more than 450 calendar days[75]. - The company won the bid for the "Hangzhou to Lin'an Intercity Railway Project" with a contract value of 626.52 million RMB and a construction period of 895 calendar days[80]. - The company secured the "Hangzhou Metro Line 6 Phase I Project" with a contract value of 423.80 million RMB and a construction period of 809 calendar days[80]. - The company was awarded the "Ningbo Comprehensive Pipeline Gallery Project" with a contract value of 284.07 million RMB and a construction period of 21 months[81]. - The company won the bid for the "Hangzhou Metro Line 7 Project" with a contract value of 1.00 billion RMB and a construction period of 1068 calendar days[81]. - The company reported a total contract value of 1.17 billion RMB for the first half of 2022, including 430.98 million RMB for the Hangzhou-Fuyang Line project[83]. - The company won the bid for the "Beijing New Airport to Dezhou Expressway" project with a contract value of 810.69 million RMB and a construction period of 19 months[85]. - The company secured the "Hangzhou City Infrastructure Construction Project" with a contract value of 547.16 million RMB and a construction period of 540 calendar days[85]. Shareholder Information - The company reported a total of 91,804 common shareholders as of the end of the reporting period[90]. - The top shareholder, Ye Linfu, holds 132.05 million shares, accounting for 8.26% of the total shares[92]. - The company has not experienced any changes in its total share capital or share structure during the reporting period[89]. Compliance and Governance - The company has not proposed any profit distribution plan or capital reserve transfer to increase share capital for the reporting period[6]. - There are no significant non-operating fund occupation situations by controlling shareholders or related parties[7]. - The company has no significant litigation or arbitration matters during the reporting period[65]. - There are no non-operating fund occupations by controlling shareholders or related parties during the reporting period[64]. - The company has no major guarantees or violations during the reporting period[64]. - The company has no significant related transactions that require disclosure during the reporting period[66]. - The company has no major contracts that have not been performed during the reporting period[66]. Accounting Policies - The financial statements are prepared based on the principle of continuous operation, ensuring compliance with accounting standards[138]. - The company has included 23 subsidiaries in its consolidated financial statements, reflecting a broad operational scope[134]. - The company has not reported any significant accounting policy changes or prior period corrections affecting the financial results[138]. - The company classifies joint arrangements into joint operations and joint ventures, recognizing assets and liabilities based on ownership shares[144]. - Cash equivalents are defined as short-term investments that are highly liquid and easily convertible to known amounts of cash, typically maturing within three months from the date of purchase[145]. - Financial assets are classified at initial recognition into three categories: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in profit or loss[147]. - Financial liabilities are classified into four categories at initial recognition, including those measured at fair value with changes recognized in profit or loss[147]. - The company uses the effective interest method for subsequent measurement of financial assets measured at amortized cost, with gains or losses recognized in profit or loss upon derecognition or impairment[148]. - For debt instruments measured at fair value with changes recognized in other comprehensive income, interest and impairment losses are recognized in profit or loss, while other gains or losses are recognized in other comprehensive income[148]. - Financial liabilities measured at fair value with changes recognized in profit or loss include trading financial liabilities and derivatives, with changes in fair value recognized in profit or loss[149]. - The company terminates recognition of financial assets when the contractual rights to cash flows have expired or when the asset has been transferred and meets specific criteria[150]. - Financial liabilities are derecognized when the current obligation has been discharged, cancelled, or expired[150]. - The company recognizes the difference between the carrying amount of transferred financial assets and the consideration received as profit or loss for the period when the transfer meets derecognition criteria[151]. - The fair value of financial assets and liabilities is determined using valuation techniques supported by observable market data, categorized into three levels[152]. - Expected credit losses are measured based on the weighted average of credit losses, considering the risk of default[153]. - The company assesses credit risk for financial instruments at each reporting date, determining if there has been a significant increase in credit risk since initial recognition[154]. - The expected credit loss rates for accounts receivable are categorized by aging, with rates ranging from 5% for receivables within one year to 20% for those over three years[156]. - Financial assets and liabilities are presented separately in the balance sheet and are not offset unless specific criteria are met[157]. Inventory and Contract Management - Inventory includes finished goods, work in progress, and materials, with costs recognized based on the percentage of completion method for projects[159]. - The company confirms that if actual costs are lower than budgeted costs, it will review and analyze the actual costs incurred, ensuring compliance with project quality and safety standards[160]. - Inventory is measured at the lower of cost and net realizable value, with provisions for inventory write-downs made when costs exceed net realizable values[161]. - Contract assets are recognized when the company has the right to receive payment for goods or services transferred to customers, contingent on factors other than the passage of time[162]. - The company uses the cost method for long-term equity investments when control is established, adjusting initial investment costs based on the fair value of the acquired assets[167]. - For long-term equity investments, the company applies the equity method for joint ventures and associates, recognizing investment income based on the share of net assets[168]. - Investment properties are initially measured at cost and subsequently measured using the cost model, with depreciation applied similarly to fixed assets[169]. - Fixed assets are recognized when it is probable that future economic benefits will flow to the company and the cost can be reliably measured[170]. - The company will adjust revenue and costs based on contract amendments if actual costs exceed budgeted costs due to external factors[160]. - Provisions for inventory write-downs are calculated based on the estimated selling price minus estimated costs and related taxes[161]. - The company will recognize contract liabilities for obligations to transfer goods for which it has received or is entitled to receive payment[163]. - The company uses the straight-line method for depreciation of general equipment with a depreciation rate of 9.50% to 33.00% over a lifespan of 3 to 10 years[172]. - The company capitalizes borrowing costs directly attributable to the acquisition or production of qualifying assets, recognizing other borrowing costs as expenses in the current period[174]. - The company recognizes right-of-use assets for leases, measuring them at cost, which includes initial lease liabilities and direct costs incurred[178]. - The company amortizes intangible assets with a limited useful life over their expected economic benefits, with specific amortization periods such as 20 years for bridge operation rights and 5 years for software[179]. - Internal research and development costs in the research phase are expensed as incurred, while development phase costs can be capitalized if certain criteria are met[180]. - The company assesses long-term assets for impairment if there are indications of impairment, recognizing impairment losses in the current period if recoverable amounts are below carrying values[181]. - Contract liabilities are recognized when the company has received or is entitled to receive consideration from customers for goods or services to be transferred[183]. - Short-term employee benefits are recognized as liabilities and expensed in the period in which the employee provides services[184]. - The company capitalizes borrowing costs during the construction or production of qualifying assets, ceasing capitalization when the asset is ready for use[176]. - The company has a policy for recognizing and measuring employee benefits, including post-employment benefits and termination benefits, based on actuarial assumptions[185]. - The company recognizes revenue from engineering contracts upon completion and acceptance, with revenue confirmed based on the percentage of completion method[193]. - Revenue from real estate sales is recognized when the property is completed, accepted, and control is transferred to the buyer[194]. - The company measures revenue based on the transaction price allocated to each performance obligation, excluding amounts collected on behalf of third parties[197]. - The company confirms revenue from construction material sales when products are delivered and accepted by the customer, with all sales being domestic[198]. - Lease liabilities are initially measured at the present value of future lease payments, including fixed and variable components[190]. - The company assesses and recognizes provisions for obligations such as guarantees and litigation when the amount can be reliably measured[191]. - The company uses the incremental borrowing rate as the discount rate for lease liabilities when the implicit rate cannot be determined[189]. - The company adjusts lease liabilities and corresponding right-of-use assets when there are changes in lease payment amounts or terms[190]. - The company confirms revenue from asset usage rights when it is probable that economic benefits will flow to the company[196]. - The company evaluates contracts to identify performance obligations and determines the timing of revenue recognition based on control transfer[195]. - The company recognizes revenue from the transfer of asset usage rights based on the progress of performance obligations, amortizing the income over the contract period using the straight-line method[199]. - Incremental costs incurred to obtain