Tianjin Construction Development Group (2515) investor relations material

Executive summary

• H1 revenue rose 10.3% YoY to RMB95.695m; attributable profit increased to RMB719k from RMB337k, while gross margin fell to 18.5% from 20.2%.

• Building construction growth and transformed-business sales offset declines in municipal, foundation and petrochemical work; 54 ongoing or contracted projects carried ~RMB369m in contract value, excluding variations.

• Two H-share fundraisings generated net proceeds of HK$73.0m to support working capital and digital transformation; no interim dividend was recommended.

Financial highlights

• Revenue was RMB95.695m, up 10.3% YoY from RMB86.827m; cost of sales rose 12.6% to RMB78.011m.

• Gross profit increased to RMB17.684m from RMB17.536m, while gross margin declined to 18.5% from 20.2%.

• Operating profit was RMB748k versus RMB1.069m; profit before tax was RMB367k versus RMB354k; attributable profit was RMB719k versus RMB337k.

• Administrative expenses fell 6.1% to RMB15.288m; impairment losses on receivables and contract assets rose to RMB2.635m from RMB68k.

• Operating cash flow was an outflow of RMB20.896m versus an inflow of RMB20.643m; cash and cash equivalents were RMB62.353m at June 30.

Outlook and guidance

• Strategic priorities span traditional infrastructure, AI digital technology, biopharmaceuticals and the chip industry; targeted opportunities include high-end chips, fine chemicals, liquid cooling and AI computing.

• Digital platforms for project management and equipment leasing are intended to support technology-supplier positioning and an integrated investment-and-construction model.

• Management emphasized high-quality development, technology-led safety and rigorous operational risk control amid industry pressure.