Shanxi Installation Group (2520) investor relations material

Executive summary

• H1 2026 revenue fell 18.71% YoY to RMB4,563,853k amid construction-industry weakness and intensified competition; net profit rose 5.7% to RMB87,749k.

• Gross margin improved to 11.4% from 10.7%; non-construction activities and new-energy and other higher-value areas gained weight.

• New orders and strategic projects shifted toward new energy, chemical materials, low-carbon operations and overseas markets; out-of-province contract value exceeded half of H1 contract value.

Financial highlights

• Revenue was RMB4,563,853k, down RMB1,050,522k YoY; gross profit fell RMB77,097k to RMB521,581k.

• Operating profit was RMB90,767k versus RMB96,525k; total profit was RMB89,762k, down 6.9% YoY.

• Net profit rose 5.7% to RMB87,749k; parent-attributable net profit was RMB58,569k versus RMB55,992k.

• Operating costs declined 19.41% to RMB4,042,272k; finance expenses increased 40.55% to RMB54,585k, and asset impairment losses rose to RMB42,765k from RMB16,424k.

• Operating cash flow was negative RMB498.147m versus negative RMB78.045m YoY; net cash decreased RMB192.995m to RMB1.355bn.

Outlook and guidance

• Priorities include expanding domestic and overseas markets, with emphasis on chemical engineering, new energy and low-carbon environmental protection.

• Plans include developing green-power parks and source-grid-load-storage systems, and expanding clean heating, solid waste, distributed energy and industrial wastewater businesses.

• Cost, technology and digital capabilities are targeted for improvement through centralized procurement, tighter project controls, design-led delivery and digital platforms.

• Contract transaction prices allocated to unfulfilled performance obligations totaled RMB32.302bn, including RMB10.132bn expected to convert to revenue within one year; capital plans include equity cooperation, industrial funds and asset securitization.