Revenue and Financial Performance - The company's revenue increased from approximately RMB 1,378.1 million in 2022 to approximately RMB 1,530.9 million in 2023, representing an increase of RMB 152.8 million or 11.1%[12]. - Revenue from construction projects rose by RMB 222.2 million or 29.1%, from approximately RMB 763.3 million in 2022 to approximately RMB 985.5 million in 2023[17]. - The number of construction projects generating revenue increased from 33 in 2022 to 61 in 2023[17]. - Revenue from municipal public works projects decreased from 29.3% in 2022 to 22.4% in 2023, amounting to approximately RMB 343.6 million[13]. - Revenue from foundation engineering projects increased by approximately RMB 52.5 million or 98.0% to about RMB 106.1 million for the year ended December 31, 2023, with the number of projects rising from 9 to 17[19]. - Revenue from specialized contracting projects decreased by approximately RMB 61.6 million or 39.2% to about RMB 95.7 million for the year ended December 31, 2023[20]. - Total revenue costs increased by approximately RMB 142.6 million or 11.0% for the year ended December 31, 2023, primarily due to the launch of multiple large projects and recovery from COVID-19 impacts[23]. - Gross profit for the year ended December 31, 2023, was approximately RMB 89.1 million, with a gross margin of 5.8%, compared to RMB 78.9 million and 5.7% in the previous year[24]. - Net profit for the year ended December 31, 2023, was approximately RMB 31.8 million, an increase of about 25.6% from RMB 25.3 million in the previous year[31]. - Cash and cash equivalents were approximately RMB 147.1 million as of December 31, 2023, compared to RMB 112.1 million as of December 31, 2022[32]. - Capital expenditures for the year ended December 31, 2023, were approximately RMB 42.0 million, significantly up from RMB 0.5 million in the previous year[40]. Corporate Governance and Management - The company emphasizes integrity, accountability, and transparency as core values in its corporate culture, aiming to align decisions with the interests of the company and its shareholders[72]. - The board has adopted a code of conduct for securities trading by directors, ensuring compliance with the standards set forth in the listing rules[76]. - The company has reviewed its corporate governance practices and is satisfied with compliance with the principles and provisions of the corporate governance code[70]. - The company’s operational management is overseen by Mr. Zhang Lei, who has over 16 years of experience in the construction industry[64]. - The company is focused on enhancing its human resources and administrative management under the leadership of Mr. Sang Yongwei, who has over 8 years of experience in the field[65]. - The company’s engineering management is led by Mr. Wang Xuguang, who has extensive experience in project management within the construction sector[68]. - The board consists of two executive directors and three independent non-executive directors, with one board meeting held since the listing date[80]. - All independent non-executive directors have confirmed their independence in accordance with listing rules, ensuring compliance with regulations[81]. - The company will hold its first annual general meeting on May 29, 2024, encouraging full participation from all directors[86]. - The board is responsible for strategic planning, ensuring sustainability, and maintaining diversity within the board[87]. - The chairman and CEO roles are held by Mr. Sang and Mr. Sin respectively, with clear division of responsibilities[93]. - The board has established three committees: audit, remuneration, and nomination, each with specific written terms of reference[96]. - The Audit Committee consists of three independent non-executive directors, with Ms. Liu Zhihong as the chairperson, and has held one meeting since the listing date, with full attendance[98]. - The Remuneration Committee, chaired by Mr. Xie Huagang, has also held one meeting since the listing date, with all members present, and has reviewed the remuneration of directors and senior management[99]. - The Nomination Committee, chaired by Mr. Zeng Qingli, has convened one meeting since the listing date, with full attendance, focusing on board composition and diversity[102]. Environmental, Social, and Governance (ESG) Initiatives - The company has maintained compliance with multiple environmental laws and regulations in China, including the Environmental Protection Law and the Water Pollution Prevention Law, with no significant claims or penalties related to environmental protection during the reporting period[148]. - The company has established an environmental management system certified to GB/T24001-2016/13014001:2015 standards, aiming to minimize adverse environmental impacts from its business activities[147]. - The company identified 12 key environmental, social, and governance (ESG) issues, including environmental protection, energy efficiency, and labor standards, which were approved by the board[144]. - The ESG working group, consisting of senior management, is responsible for daily management and oversight of ESG risks and measures, meeting at least once a year[132]. - The company is planning to enhance stakeholder engagement processes through ESG surveys and interviews to gather feedback and improve governance measures[141]. - The company has committed to sustainable income and quality products as part of its ESG strategy[144]. - The company has implemented a risk management and internal control system related to ESG, which is overseen by the board[132]. - The company aims to strengthen its environmental compliance status and reduce any negative impacts from its operations[148]. - Total diesel consumption by the company increased from 3,581 tons in 2022 to 3,945 tons in 2023, with a target to maintain consumption at 2.6 tons per million revenue in 2023 and 2024, and reduce it to 2.5 tons by 2025[152]. - Total electricity consumption by the company rose from 5,101,096 kWh in 2022 to 5,693,897 kWh in 2023, with a goal to maintain consumption at 3,700 kWh per million revenue in 2023 and 2024, and reduce it to 3,600 kWh by 2025[153]. - Scope 1 greenhouse gas emissions increased from 2,326 tons of CO2 in 2022 to 2,583 tons in 2023, while Scope 2 emissions rose from 857 tons to 974 tons in the same period[156]. - Total greenhouse gas emissions reached 15,888 tons of CO2 in 2023, up from 13,779 tons in 2022, with a greenhouse gas emission density of 0.0104 tons of CO2 per 1,000 RMB revenue[156]. - Water consumption by the company increased from 162,286 cubic meters in 2022 to 186,782 cubic meters in 2023, with a target to maintain consumption at 120 cubic meters per million revenue in 2023 and 2024, and reduce it to 115 cubic meters by 2025[159]. - The company is committed to implementing energy-saving measures and monitoring results through an Environmental, Social, and Governance (ESG) working group[160]. - The company prioritizes subcontractors with clean environmental records to ensure effective implementation of energy-saving measures[161]. - The company has implemented measures to reduce Scope 3 emissions, including continuous monitoring of subcontractors' environmental compliance and encouraging employees to save energy during travel[171]. - The company does not generate hazardous waste and maintains a low level of non-hazardous industrial waste during production[173]. - The company has established an internal waste management policy to handle construction waste and wastewater, ensuring compliance with local regulations[174]. - The company has set noise level limits at construction sites, with daytime levels capped at 70 decibels and nighttime levels at 55 decibels, successfully maintaining compliance during the reporting period[178]. - The company has assessed climate change risks, categorizing them into physical risks and transition risks, and has implemented monitoring and mitigation measures[182]. - The company maintains a diversified supplier base to ensure resilience against supply chain disruptions caused by extreme weather events[186]. - The company is committed to maintaining effective environmental qualifications and will invest necessary resources to meet new regulatory requirements[186]. - The company has not identified any significant environmental, social, and governance issues among its suppliers during the reporting period[172]. - The company prioritizes the use of energy-efficient and low-consumption equipment in its operations[170]. - The company has a program in place to distribute supplier conduct guidelines to major suppliers, ensuring they understand the company's ethical and environmental expectations[176]. - The company has 34 key suppliers during the reporting period, down from 36 in 2022, with each supplier accounting for over 1% of total procurement costs[191]. - The company maintains a diversified supplier base to ensure stable competitive advantages in supply chain resilience[192]. - The company has obtained quality management system certifications including GB/T19001-2016/ISO9001:2015, ensuring a commitment to high-quality products and services[196]. - The company implements strict quality control measures throughout the construction project lifecycle, ensuring compliance with customer requirements and applicable standards[199]. - No material quality issues were encountered during the reporting period, and no significant complaints regarding project quality were received from customers[200].
中深建业(02503) - 2023 - 年度财报