China State Construction International (3311) H1 2026 earnings summary

Executive summary

• Net profit reached RMB 4.33 billion, representing 50.4% of full-year 2025, despite a 17.7% year-over-year decrease; revenue for the six months ended 30 June 2026 was RMB43,884 million, down 22.5% year-over-year.

• Gross profit margin improved to 18.6% from 15.0% year-over-year.

• Interim dividend declared at HK33 cents per share, with a payout ratio of 35.4%, up 4.3 percentage points year-over-year.

• Operating cash flow turned positive for the first time in nearly 15 years, reaching a record net inflow of RMB3,796 million.

• Continued optimization of business structure and major project wins in Hong Kong, with expanded investment in Chinese mainland core provinces and cities.

Financial highlights

• Net operating cash flow increased by RMB 3,796 million; operating cash flow to net profit ratio reached 87.67%.

• Cash on hand hit RMB 37,872 million, up 24.8% from the beginning of the year and representing 12.9% of total assets.

• Dividend per share raised to 33 HK cents, with a payout ratio of 35.4%.

• Financing costs decreased to 2.71% in 2026H1, down 0.44 percentage points year-over-year.

• Net gearing ratio decreased to 64.5%, down 0.6 percentage points year-over-year.

Outlook and guidance

• Will maintain strategic focus and pursue sustainable, steady operations amid industry transformation, emphasizing high-quality development and technological innovation.

• Net operating cash flow expected to remain positive; dividend payout ratio to stay above 30%.

• Technology and Hong Kong investment-driven businesses targeted for continued growth and potential independent spin-off.

• Plans to deepen investment-related businesses and urban renewal projects, especially leveraging MiC technology.

• Emphasis on risk management, ESG integration, and sustainable growth.