China State Construction Engineering (601668) H1 2025 earnings summary

Executive summary

• Achieved new contract value of ¥2.5 trillion, up 0.9% year-over-year; revenue of ¥1.1 trillion, down 3.2% year-over-year; net profit attributable to shareholders of ¥30.4 billion, up 3.2% year-over-year; basic EPS of ¥0.73, up 2.8% year-over-year.

• Maintained top global and domestic rankings in Fortune 500 and ESG indices, with continued inclusion in major stock indices.

• Business structure optimized, with strategic focus on high-quality clients, projects, and regions; new business lines in strategic emerging industries generated ¥91.6 billion in revenue.

Financial highlights

• Revenue: ¥1,108.3 billion, down 3.2% year-over-year; net profit attributable to shareholders: ¥30.4 billion, up 3.2% year-over-year.

• Operating cash flow: -¥82.8 billion; total assets: ¥3,399.8 billion; net assets attributable to shareholders: ¥483.1 billion.

• Gross margin: 9.4%; basic and diluted EPS: ¥0.73; net asset per share: ¥10.49, up 9.3% year-over-year.

• Adjusted net profit (excluding non-recurring items): ¥26.95 billion, up 2.0% year-over-year.

• Non-recurring gains: ¥2.91 billion, mainly from asset disposals, government grants, and reversal of impairment losses.

Outlook and guidance

• Management expects continued high-quality growth, with focus on strategic emerging industries, digital transformation, and ESG leadership.

• Cautious on cash flow and debt risks due to industry headwinds; proactive in risk management and asset optimization.