China State Con International (03311.HK) released its interim results. As of June 30, 2024, the group's performance has steadily grown with a newly signed contract amount of HKD 125.13 billion, a YoY growth of 29.2%; revenue of HKD 61.755 billion, a YoY growth of 12.1%; net profit attributable to shareholders of HKD 5.465 billion, a YoY growth of 12.7%; and a basic earnings per share of 108.48 HK cents. The board of directors announced a mid-year dividend of HKD 0.33 per share, with a payout ratio of approximately 30.4%, up 1.8 percentage points from the same period last year.

Hong Kong and Macau Market

The Hong Kong government actively improves the living environment of citizens, promotes the development plans of the northern metropolitan areas, and expands various people's livelihood infrastructure projects. The group has fully utilized its rich construction experience and technological advantages by setting up a consortium with France's Vinci Group, and successfully won the bid for the Hong Kong New Territories West Landfill Expansion Plan ("WENTX"), with a total contract value of HKD 61.1 billion (the group's share is about HKD 42.8 billion), becoming the group's largest contracted project in history. After completion, WENTX will solve Hong Kong's waste disposal needs for decades to come and provide important basic support for urban construction and population growth in the northern metropolitan area of Hong Kong. The group relied on its technological advantages in environmental engineering, especially in carbon reduction during construction, to win the bid, marking an important step for the group to enhance its competitiveness in environmental engineering and explore the development path of green and low-carbon. The group also won the main contract for Phase 1A of the Hong Kong-Shenzhen Innovation and Technology Park. The park is located in the Hetian River area at the Hong Kong-Shenzhen border and is the core area of the northern metropolitan area. It plays an important role in promoting the exchange and integration of innovative elements between the mainland and Hong Kong and strengthening Hong Kong's competitiveness in science and technology innovation. In March of this year, the group signed a contract with the Key Enterprises Office of the Hong Kong Special Administrative Region government and became its "Key Enterprise Partner," the only construction enterprise among the 49 signed enterprises currently. The group will vigorously promote the application of construction technology and digital transformation, and help the innovative development of Hong Kong's construction industry.

In the Macau market, the group continues to promote people's livelihood engineering construction and maintain its leading position in the market. At the same time, the M8 Macau No. 8 project, located in the core area of the historical city of Macau World Heritage, has been completed successfully and fully leased. The project has won multiple awards and will open in September of this year, bringing new cultural and commercial experiences to travelers.

Chinese Mainland Market

The group focuses on high-quality projects in the Chinese mainland, continuously expands its market share in advantageous modes and markets, and the investment-driven projects in the first half of the year are concentrated in high-energy economic regions such as the Yangtze River Delta and the Pearl River Delta, and the project cycle has been further optimized. The group strengthens management of its projects in hand and controls key nodes, and execution efficiency continues to improve. The group has always been committed to promoting the application of MiC technology to solve people's livelihood pain points. Based on the successful cases of Shenzhen Huazhang New Building and Beijing Huapi Factory No.8, MiC continues to rapidly penetrate into core cities in high-energy economic regions this year, and the modes of original demolition and reconstruction plus MiC are further promoted, and the demonstration effect of projects is further transformed into the market.

Curtain Wall Market

China State Con Xingye Group Co., Ltd. ("China State Construction Xingye"), a subsidiary of the group, consolidates its leading position in the Hong Kong curtain wall market with its own advantages in quality and technology. In the first half of the year, it continuously won the bids for commercial landmarks such as the New World Development-West Kowloon Art Square Building and Henderson Land's No. 3 Central Waterfront Commercial Building. In mainland China, the group primarily focuses on high-energy economic regions such as the Yangtze River Delta and the Pearl River Delta. In the first half of the year, it won the bid for the world's largest indoor ski resort - Shenzhen Qianhai Huafa Ski Resort metal roof and other projects, and continued to maintain good cooperation with strategic customers such as OPPO. China State Construction Xingye continues to cultivate BIPV as a future business growth point. The Light A BIPV product has passed 54 certification tests by TüV (German Technical Monitoring Association), indicating that its quality and reliability have been recognized by international authoritative institutions, and the applicability of the product has been enhanced. Confidence in BIPV products among owners is also increasing.