Anhui Construction Engineering's net profit in the first half of the year increased by 27.89% Prefabricated construction base project is in progress

With the rapid development of urbanization, the construction industry is still in a period of development opportunities. On July 28, a reporter from the Financial Association learned from Anhui Construction Engineering (600502.SH) that the company has a process from winning bids to signing contracts and converting profits. The large increase in performance is mainly due to the good overall production and operation conditions of the current period. At present, two new production bases in Wushan and Bengbu have been added to the prefabricated buildings, and the remaining base projects are still in progress.

The performance report shows that Anhui Construction Engineering achieved total operating income of approximately 31.655 billion in the first half of the year, an increase of 34.04% over the same period last year; the net profit attributable to shareholders of listed companies was 599 million, an increase of 27.89% over the same period.

Anhui Construction Engineering's main business is housing construction, infrastructure construction and investment, and real estate development and operation. According to incomplete statistics, the company’s newly signed contracts were concentrated in Anhui in the second quarter, with a total contract value of over 10.5 billion yuan. Important orders include the general contracting project of Xiangyuan Hefei Jieshou Road project and other five projects totaling 3.987 billion yuan, and the EPC general contracting project of the smart electronic town living area project in Shucheng County by the subsidiary Anhui Luqiao.

It is worth mentioning that the company is vigorously developing the prefabricated construction business. In addition to the Feidong base, the industrial prefabricated component PC base in Wushan Beicheng, Changfeng County will be completed and put into operation in November 2020, and the Bengbu Jiahe Industrial Prefabricated component PC base will be trial-operated in April 2021. It is expected that in 2022, Wushan Rail Transit Segment Base, Tongling PC Component Base, Wuhu Steel Structure Base and Huaibei PC Component Base are expected to be completed and put into operation.

It is reported that in the future, the company's prefabricated buildings are expected to form Hefei as the center and Bengbu as the focus, and strive to complete the construction of prefabricated bases in the province within 1-2 years. Form a "cross-shaped" prefabricated industrial base pattern, and create an industrialized cluster of prefabricated building bases facing the Yangtze River Delta.

The reporter from the Financial Association noted that, according to the previously issued "Opinions on Promoting the Development of the Prefabricated Construction Industry", the goal is to cultivate more than 50 provincial prefabricated building industrial bases and 3-5 provincial prefabricated building industrial parks in Anhui Province by 2025. The production capacity reaches 50 million square meters, and the prefabricated buildings account for 30% of the newly built building area, basically forming a prefabricated building industry base based in Anhui and facing the Yangtze River Delta.