Metallurgical Corporation of China (1618) H1 2025 earnings summary

Executive summary

• Operating revenue for H1 2025 was RMB237.53 billion, down 20.52% year-over-year, with net profit attributable to shareholders at RMB3.10 billion, a 25.31% decrease year-over-year.

• Newly signed contracts totaled RMB548.20 billion, down 19.12% year-over-year, with overseas contracts up 32.6% year-over-year.

• The company maintained a leading position in metallurgical construction and expanded overseas.

• Gross profit margins improved in engineering contracting and featured business segments, but real estate margins declined due to market pressures.

• The company maintained strong R&D and innovation, with significant achievements in steel and environmental technologies.

Financial highlights

• Total assets increased 6.11% to RMB857.41 billion compared to end-2024.

• Basic EPS was RMB0.09, down 18.18% year-over-year; weighted average ROE was 1.72%.

• Net cash flow from operating activities improved to negative RMB21.98 billion from negative RMB28.41 billion year-over-year.

• Gross margin for engineering contracting improved to 9.58% (up 1.08 percentage points year-over-year).

• Featured business gross margin rose to 17.62% (up 0.99 percentage point year-over-year).

Outlook and guidance

• The company expects continued challenges in construction and real estate, but sees growth opportunities in overseas markets, green technologies, and digital transformation.

• Strategic focus remains on high-quality development, business structure optimization, and risk management.

• Emphasis on innovation, digitalization, and green technologies to drive future growth.

• The company aims to strengthen its core metallurgical business while diversifying into new materials, high-end equipment, and environmental protection.