河北建设(01727) - 2023 - 中期业绩

Company Overview and Financial Summary Financial Summary The company reported RMB 14.949 billion in revenue and RMB 111 million in net profit for H1 2023, with basic EPS at RMB 0.07 Key Financial Indicators for H1 2023 | Indicator | H1 2023 | H1 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue (billion yuan) | 14.949 | 16.589 | -9.9% | | Net Profit (million yuan) | 111 | 154 | -27.9% | | EPS (yuan) | 0.07 | 0.09 | -0.02 | Business Review Overview of New Contracts Signed New contracts signed in H1 2023 decreased by 32.47% to RMB 14.335 billion, with shifts in segment and regional contributions New Contracts Signed Overview for H1 2023 (billion yuan) | Indicator | H1 2023 | H1 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Total New Contracts | 14.335 | 21.229 | -32.47% | New Contracts Signed by Business Segment | Business Segment | H1 2023 Share | H1 2022 Share | | :--- | :--- | :--- | | Building Construction | 53.54% | 71.59% | | Infrastructure Construction | 32.21% | 19.91% | | Specialized and Other Construction | 14.25% | 8.50% | New Contracts Signed by Region | Region | H1 2023 Share | H1 2022 Share | | :--- | :--- | :--- | | Beijing-Tianjin-Hebei | 91.24% | 79.24% | | Other Regions | 8.76% | 20.76% | Building Construction Business New contracts for building construction declined to RMB 7.675 billion in H1 2023, with public building projects comprising the largest share at 50.97% Building Construction New Contracts Signed (billion yuan) | Indicator | H1 2023 | H1 2022 | | :--- | :--- | :--- | | New Contracts Signed | 7.675 | 15.197 | Composition of Building Construction New Contracts Signed | Segment | H1 2023 Share | H1 2022 Share | | :--- | :--- | :--- | | Residential Buildings | 27.18% | 29.58% | | Public Buildings | 50.97% | 57.23% | | Industrial Buildings | 21.74% | 12.52% | | Commercial Buildings | 0.11% | 0.67% | Infrastructure Construction Business Infrastructure construction new contracts grew by 9.25% to RMB 4.617 billion in H1 2023, driven by municipal and transportation projects Infrastructure Construction New Contracts Signed (billion yuan) | Indicator | H1 2023 | H1 2022 | | :--- | :--- | :--- | | New Contracts Signed | 4.617 | 4.226 | Composition of Infrastructure Construction New Contracts Signed | Segment | H1 2023 Share | H1 2022 Share | | :--- | :--- | :--- | | Municipal Infrastructure | 69.91% | 89.97% | | Transportation Infrastructure | 30.09% | 10.03% | Specialized and Other Construction Engineering Contracting Business Specialized and other construction new contracts rose by 13.07% to RMB 2.042 billion in H1 2023, with electromechanical installation showing strong growth at 35.37% Specialized and Other Construction New Contracts Signed (billion yuan) | Indicator | H1 2023 | H1 2022 | | :--- | :--- | :--- | | New Contracts Signed | 2.042 | 1.806 | Composition of Specialized and Other Construction New Contracts Signed | Segment | H1 2023 Share | H1 2022 Share | | :--- | :--- | :--- | | Electromechanical Installation | 35.37% | 9.97% | | Steel Structure | 4.10% | 1.22% | | Decoration and Renovation | 23.73% | 25.91% | | Other Construction Business | 36.79% | 62.90% | Representative Engineering Projects The company executed multiple regionally impactful projects across diverse sectors and provinces, including residential, public, industrial, transportation, and municipal infrastructure - Representative new contracts include large-scale projects such as the Guangzhou Baiyun International Airport Phase III Expansion Project (contract value RMB 681 million) and Baoding South Second Ring Road Pipeline Renovation Project (contract value RMB 881 million)[172] - Representative ongoing projects include the China Academy of Chinese Medical Sciences Guang'anmen Hospital Baoding Hospital Project (executed contract value RMB 1.943 billion) and Innovation Manufacturing Industrial Park Infrastructure Project (executed contract value RMB 1.362 billion)[180][195] - Representative completed projects include Beijing BAIC Off-road Vehicle Shanty Town Renovation Resettlement Housing Project (executed contract value RMB 385 million) and National Highway G205 Yanshan County Bypass Reconstruction Project (executed contract value RMB 290 million)[34] Scientific Research Achievements and Awards Scientific Research Achievements and Awards The company achieved significant technological innovation in H1 2023, securing provincial awards, advancing projects, and expanding its patent portfolio with 62 new applications and 49 new grants - Received 2 provincial government science and technology progress awards and 34 Hebei Province construction industry science and technology progress awards for 2022[18] - As of June 2023, 62 new patent applications (including 13 invention patents) and 49 new authorized patents (including 2 invention patents) were filed[18][36] - 201 enterprise-level R&D projects were initiated in H1 2023, with R&D activities progressing in an orderly manner[63] - Completed the re-evaluation of the National Enterprise Technology Center and the assessment of the National Prefabricated Building Industrial Base for technology platform development[184] Future Outlook Future Outlook The company plans to focus on market development, engineering, operations, and talent in H2, consolidating its Baoding base while expanding into Hebei and Xiong'an - Market Development: Consolidate Baoding headquarters, expand into other cities and counties in Hebei, prioritize Xiong'an New Area market, and promote provincial business development[207] - Engineering Construction: Accelerate transformation from a traditional contractor to a comprehensive construction engineering service provider and municipal service provider[228] - Operational Management: Promote centralized procurement to reduce costs and increase efficiency[228] - Talent Cultivation: Steadfastly promote the rejuvenation of cadres and build a scientific talent pipeline[38] Financial Review Operating Performance Analysis Total revenue declined to RMB 14.949 billion in H1 2023 due to building construction, while gross margin slightly improved to 5.2%, and net profit fell to RMB 111 million Operating Performance by Business Segment (billion yuan) | Business Segment | 2023 H1 Revenue | 2023 H1 Gross Margin | 2022 H1 Revenue | 2022 H1 Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Building Construction | 9.430 | 4.7% | 11.318 | 4.5% | | Infrastructure Construction | 4.109 | 6.4% | 3.543 | 6.1% | | Specialized and Other Construction | 1.163 | 4.6% | 1.205 | 5.3% | | Total | 14.702 | 5.2% | 16.066 | 4.9% | - Building construction business revenue decreased by RMB 1.888 billion, primarily due to the prolonged downturn in the real estate market[231] - Infrastructure construction business revenue increased by RMB 566 million, mainly due to several new large-scale infrastructure projects during the period[67] - Investment income shifted from RMB 25.1 million in the prior period to an investment loss of RMB 8.4 million, primarily due to reduced dividends from investee companies[213] Expense Analysis R&D expenses significantly increased to RMB 69 million, credit impairment losses rose by RMB 53 million, while asset impairment losses reversed by RMB 9.7 million - R&D expenses totaled RMB 69 million, a year-on-year increase of RMB 47 million, primarily due to new construction technology R&D projects[212] - Credit impairment losses amounted to RMB 87 million, a year-on-year increase of RMB 53 million, mainly due to the aging of certain accounts receivable[234] - Asset impairment losses reversed by RMB 9.7 million, compared to a loss of RMB 135 million in the prior period, primarily due to fewer new defaulting customers[235] Balance Sheet Analysis Total assets decreased to RMB 61.950 billion as of June 30, 2023, with declines in cash and contract assets, and a significant reduction in accounts payable - Cash and cash equivalents were RMB 7.926 billion, a decrease of RMB 1.197 billion from the end of 2022, primarily due to net cash outflow from operating activities[45] - Net contract assets were RMB 38.937 billion, a decrease of approximately RMB 3.98 billion from the end of 2022, mainly due to lower revenue during the reporting period[218] - Accounts payable amounted to RMB 30.585 billion, a decrease of RMB 6.002 billion from the end of 2022, primarily due to reduced project volume and increased cash payments to suppliers[76] - Interest-bearing borrowings were approximately RMB 6.291 billion, an increase from RMB 5.989 billion at the end of 2022[75] Key Financial Ratios Current and quick ratios remained at 1.0x, while the debt-to-capital ratio increased to 100.3%, and profitability ratios declined as of June 30, 2023 Key Financial Ratios | Ratio | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Current Ratio (x) | 1.0 | 1.0 | | Quick Ratio (x) | 1.0 | 1.0 | | Debt-to-Capital Ratio | 100.3% | 97.1% | | Return on Assets (Non-annualized) | 0.2% | 0.5% | | Return on Equity (Non-annualized) | 1.8% | 5.2% | Other Information Dividend Policy The Board does not recommend an interim dividend payment for the six months ended June 30, 2023 - The Board does not recommend the distribution of an interim dividend for 2023[54][149] Human Resources The Group's full-time employees decreased to 8,638, while the company maintains a performance-oriented compensation system and focuses on talent development - As of June 30, 2023, the Group had 8,638 full-time employees, a decrease of 466 from the beginning of the year[53] - The company established a three-level, four-tier, five-stage employee education and training system, supporting career development through 'one-on-one mentorship' and '358 Talent Development Program' models[53] Corporate Governance The company complied with corporate governance codes, amended its Articles of Association, and had its interim results reviewed by the Audit Committee - The company complied with all code provisions of the Corporate Governance Code during the reporting period[224] - The company's Articles of Association were revised and became effective on June 26, 2023, after approval by the annual general meeting of shareholders[111] - The company's Audit Committee reviewed and confirmed the interim results announcement and unaudited interim financial statements for the six months ended June 30, 2023[85] Interim Consolidated Financial Statements Interim Consolidated Balance Sheet As of June 30, 2023, total assets were RMB 61.950 billion, total liabilities RMB 55.676 billion, and total equity RMB 6.274 billion Key Balance Sheet Items (thousand yuan) | Item | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Assets | 61,949,786 | 67,631,850 | | Current Assets | 55,336,332 | 61,125,891 | | Non-current Assets | 6,613,454 | 6,505,959 | | Total Liabilities | 55,675,803 | 61,464,375 | | Current Liabilities | 52,908,369 | 58,770,320 | | Non-current Liabilities | 2,767,434 | 2,694,055 | | Total Equity | 6,273,983 | 6,167,475 | Interim Consolidated Income Statement Operating revenue reached RMB 14.949 billion in H1 2023, resulting in an operating profit of RMB 157 million and a net profit of RMB 111 million Key Income Statement Items (thousand yuan) | Item | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Operating Revenue | 14,948,567 | 16,589,225 | | Operating Costs | 14,145,504 | 15,712,887 | | Operating Profit | 157,071 | 217,090 | | Total Profit | 156,976 | 215,737 | | Net Profit | 111,191 | 154,111 | | Net Profit Attributable to Parent Company Shareholders | 116,796 | 159,234 | | Basic EPS (yuan) | 0.07 | 0.09 | Notes to the Financial Statements Notes detail key financial items, including revenue sources, aging of receivables and payables, and income tax accrual at a 25% rate H1 2023 Revenue Breakdown by Product Type (thousand yuan) | Main Product Type | Revenue | | :--- | :--- | | Building Construction Engineering | 9,430,063 | | Infrastructure Construction Engineering | 4,109,392 | | Specialized and Other Construction Engineering | 1,162,646 | | Goods Sales and Other | 215,423 | | Sewage and Reclaimed Water Treatment | 19,595 | | Total | 14,937,119 | - Accounts receivable credit terms are typically 1 to 3 months, non-interest bearing, with approximately 66% of receivables due within 1 year as of June 30, 2023[92][162] - Accounts payable are non-interest bearing and typically settled within agreed terms, with approximately 63% due within 1 year as of June 30, 2023[99][120]