A：In the first half of the year, the company made new progress and achievements in seven aspects. Firstly, the company strengthened its services to national major strategies and fully implemented the "two heavy and two light" strategy. The proportion of new contracts in strategic regions such as the Beijing-Tianjin-Hebei region, the Yangtze River economic belt, the Yellow River basin, etc. reached about 80%, with completed investment accounting for nearly 90%. The company deepened cooperation with over thirty countries along the "Belt and Road" initiative, implementing a number of national key projects such as the Uzbekistan National Art Museum and the Saudi Dray Opera House. Secondly, the company expanded its traditional core markets, increasing public building new contract contracts to 62%, with industrial factories, schools, and warehouse logistics contracts growing by 16%, 14%, and 18% respectively. Infrastructure contracts increased by 10%, with energy and water projects growing by over 30%. The real estate sector achieved steady development, with sales reaching 174.5 billion RMB, and the company's property sales ranking among the top in the industry. Thirdly, the company accelerated its expansion into new businesses and markets, particularly in urban renewal and urban operations, implementing the Zhubai house building system in 38 projects. Fourthly, the company strengthened contract management and control, standardizing project supervision and improving project completion quality. Fifthly, the company expedited the industrialization of new products, selecting 11 products for commercialization this year. Sixthly, the company effectively managed risks by enhancing safety measures and optimizing cash flow, revitalizing assets worth 91.4 billion RMB. Lastly, the company improved its long-term value by optimizing its ESG strategy and addressing key issues like climate change, publishing the 2025 China Construction Green Development Report.

A：The following is the second item on the agenda. Mr. Huang Jie, Vice President and Chief Financial Officer of the company, will present the performance of China Construction for the first half of 2025.

A：In the first half of the year, the company actively optimized its business layout and achieved a total operating income of 1.121 trillion yuan, maintaining a basically stable income scale. Among them, the revenue of infrastructure business increased by 1.5% year-on-year, the revenue of strategic emerging industries increased by 3.5%, and the revenue of overseas business increased by 5.8%. The company adhered to the strategy of improving quality and efficiency, and the total profit achieved steady growth, reaching 49.8 billion yuan, with a net profit attributable to the parent company of 30.4 billion yuan, and both gross profit margin and revenue are stable and slightly increasing. In addition, the company strengthened cash flow management, with a significant improvement in operating net cash flow year-on-year, a secure and stable financial condition, and a decrease in financial expenses.

A：The company adheres to the "two superior and two heavy" strategy in its operations, exploring high-quality business markets. The new contract amount increased by 0.9% year-on-year, and the market share in the construction business increased to 16.7%. At the same time, the company focuses on key segmented markets, continuously optimizing the structure of residential construction business, with a decrease in the proportion of residential business and growth in new contract amounts for industrial plants and educational facilities construction. Infrastructure business capitalizes on structural opportunities for rapid development, especially with varying degrees of growth in new contract amounts in the energy, municipal, and water resources sectors. Real estate business maintains steady development, with sales exceeding industry decline, positioning China Overseas Land & Investment Limited (COLI) as a leading company in the industry. Overseas operations implement a strategy for overseas development, significantly increasing the proportion of new contracts in core markets.

A：Despite the complex and severe macroeconomic situation at home and abroad, as well as the deep adjustment in the real estate market, the long-term trend of our country's economy remains positive. With the continuous release of the effects of national policies, the company is facing new opportunities for development, such as the broad prospects of urban renewal business and the construction of high-quality housing guiding the direction of housing construction and real estate development businesses. At the same time, innovative technological achievements will add momentum to the company's digital and intelligent development. In the second half of the year, the company will strive to create more and better development results in accordance with the "one innovation and five strengths" strategic guidance, in order to solidly repay investors' trust and support with solid performance.

A：China State Construction Group has been deeply involved in the field of urban renewal for a long time, considering urban renewal and residential design as important businesses. In recent years, with the acceleration of urbanization, local governments have increased their efforts to promote urban renewal, and residents' demand for residential quality has increased. The group actively responds to the President's people-centered concept, adapts to changes in the situation, leverages its own professional advantages, accelerates the layout of new businesses, serves urban renewal and transformation, and meets the housing needs of the people. In terms of urban renewal, the group focuses on improving the urban landscape, enhancing safety and resilience, reducing management costs, and other practical needs. It has established a urban renewal leadership group, formed a professional team, concentrated advantageous resources to develop related businesses, and has leveraged the advantages of the full industry chain in the renovation of old neighborhoods in Beijing. In the first half of the year, the group has signed new urban renewal contracts totaling over 160 billion yuan, showing a trend of scale growth.

A：We carefully studied and implemented the requirements for building safe, comfortable, green, and smart good houses, and established a research and development organization framework for the good house building system. Based on 172 pain points identified through surveys of over 60,000 residents, we gathered the expertise of more than seventy experts, customized solutions, and constructed the Chinese architectural good house building system. This system was publicly announced to the society at the end of April and has been successfully applied in dozens of projects, receiving positive market feedback.

A：In the first half of the year, the company achieved stable business performance through the following three main measures: first, optimizing the structure to stabilize the foundation of development, focusing on structural opportunities in energy, water conservancy, and high-end manufacturing, optimizing business structure, and increasing the amount of new contracts by 23.8% year-on-year, effectively offsetting the downward pressure on traditional businesses; second, the real estate sector closely followed national policies to stabilize the market, made prudent decisions, optimized layout, and saw a 13.3% increase in real estate revenue in the first half of the year, with overall profits remaining stable; third, relying on management to enhance internal motivation, strengthening organizational governance, deepening project management by legal entities, and enhancing large business management, the settlement profit rate increased by 0.25 percentage points year-on-year in the first half of the year, while non-productive expenses were strictly controlled, with management expenses and financial expenses decreasing by 2.2% and 11.7% respectively.

A：The company actively complies with the national policy direction and industrial development trends, building on the good order situation in the first half of the year. It will continue to implement the strategy of "two excellences, two main markets," seize the development opportunities in high technology, industrial construction, energy engineering, water conservancy, and other segmented business areas, and strive to achieve the annual target of new contract amount set at the beginning of the year, serving the construction of a strong manufacturing country, a strong transportation country, and a beautiful China. Specifically in terms of order structure, in the first half of the year, orders in high-tech industrial construction steadily grew, with a year-on-year increase of 16.2% in new contracts for industrial construction, ranking first in the construction industry; at the same time, there was rapid development in the energy engineering field, with a year-on-year increase of 34% in new contract amount, ranking first in infrastructure construction business.

A：The company highly values cash dividends and has implemented an active and stable cash dividend policy since its listing, distributing cash dividends to shareholders totaling over 100 billion, demonstrating its commitment to shareholder value. Especially in the case of a decrease in profits last year, the company still maintained a stable and increasing dividend per share. This year, the company has provided guidance for the next year's dividend payout for the first time, indicating that it will maintain a stable dividend per share based on a comprehensive consideration of operating conditions, long-term strategic layout, and overall shareholder interests, aiming to provide shareholders with predictable investment returns.

A：The company will adhere to high-quality development, adapt to industry trends, promote transformation and upgrading, and fundamentally increase shareholder returns by improving the company's value creation capability. At the same time, by combining sustainable development with reasonable shareholder returns, the company will formulate a continuous and stable dividend plan, striving to create greater value for shareholders.

A：The company attaches great importance to market value management work and has taken a series of measures, such as establishing a dedicated leadership team, setting up a market value management system, preparing and disclosing valuation enhancement plans and assessment methods, etc. For example, the company plans to maintain a stable dividend per share amount, implement a group buying plan, and in 2025, it has detailed more than twenty measures in seven major areas. In addition, the company recognizes the importance of solid foundation work (such as strengthening and optimizing the company itself, achieving high-quality development) in promoting market value management work, and will protect the interests of investors through means such as enhancing value creation capabilities, technological attributes, and dividend policies.

A：In the first half of the year, the company achieved a net outflow of operating cash flow of 82.8 billion, a decrease of 25.9 billion compared to the same period last year, showing improvement. It is particularly worth noting that since the first half of this year, the peak of operating cash flow has achieved year-on-year improvement for six consecutive months. The company has focused on accelerating the recovery of local government debts, aggressively reducing real estate inventory, and strengthening the refinement of cash flow management. In the second half of the year, the company will seize favorable opportunities, intensify efforts to collect payments, and is confident in further improving operating cash flow for the whole year.

A：The company deeply implements the spirit of the Central Economic Work Conference, attaches great importance to and actively promotes the revitalization of existing assets, and regards it as a strategic measure to improve asset utilization efficiency and expand development space. In the first half of this year, the company has revitalized a total of 91.4 billion yuan of various existing assets, achieving phased results. In the next three years, the company will continue to organize and carry out special actions to revitalize existing assets, continuously optimize asset structure and improve asset operation efficiency.

A：We request all units to open the balance sheet and conduct a detailed and comprehensive inventory of the 3.2 trillion assets, establish hierarchical classification management standards, and utilize digital technology to create a real-time and dynamic updated asset map. Real-time intelligent management of asset changes to comprehensively understand the utilization of assets and lay a foundation for revitalizing assets.

A：The company has developed individual strategies for each asset project, accelerating the revitalization of key assets through collaboration, equity disposal, investment driving, etc. In the first half of the year, it has successfully revitalized over 5 billion worth of comprehensive investment projects and internal office assets, and explored new asset revitalization paths, such as using financial tools like REITs and real estate ABS to broaden channels for capital inflow. It issued the first Ruisi product, revitalizing assets worth 320 million.

A：The company has introduced a series of supportive policies, including special profit subsidies for asset activation, investment and funding rewards for reactivation, and a fault-tolerant mechanism for investment project responsibilities. The asset activation work has been incorporated into the performance assessment of various units, effectively promoting the progress of asset activation work. In the future, efforts will be made to continuously deepen the activation of existing assets, improve the entire lifecycle management system, innovate models, expand channels, enhance efficiency, and maximize the value of existing assets, thereby expanding new opportunities for high-quality development of the company.

A：According to the requirements of the Political Bureau meeting and fiscal policy adjustments, it is expected that there will be great opportunities for infrastructure investment in the second half of the year. The company has advantages such as a rich scene in the entire industry chain, good government-enterprise relations, and a balanced benefit in diversified businesses. Investment projects cover multiple areas such as toll roads and high-speed railways, accumulating rich investment experience. The company will utilize these advantages, actively participate in major national projects following market principles, especially playing an important role in promoting high-quality infrastructure construction.

A：As of the end of the reporting period, the company operates 339 PPP projects with a total equity investment of 444.8 billion yuan, covering various areas such as municipal engineering and transportation, distributed in Shandong, Hubei, and other places. With the advancement of policies, local government debt risk control has been strengthened, repayment willingness has increased, and the repayment situation has improved. It is expected that the future prospects of PPP project repayments are promising, with annual investment repayments steadily increasing, and it is expected that the full-year repayment amount will be equal to the investment amount in 2025.