Shanghai Industrial Holdings (363) H2 2025 earnings summary

Executive summary

• Revenue for 2025 was HK$20,832 million, down 28% year-over-year, mainly due to lower property sales and construction revenue in the real estate and environmental segments.

• Net profit decreased 28.1% year-over-year to HK$2,020 million, with EPS at HK$1.858 compared to HK$2.582 last year.

• The Board recommended a final dividend of HK50 cents per share, a special dividend of HK20 cents, and an interim dividend of HK42 cents, totaling HK112 cents per share for 2025.

Financial highlights

• Gross profit margin increased by 2.5 percentage points year-over-year, driven by a higher proportion of consumer products revenue.

• Infrastructure and environmental protection contributed HK$1,801 million in net profit, down 31.5% year-over-year, accounting for 93.4% of Net Business Profit.

• Real estate recorded a net loss of HK$632 million, with increased impairment provisions and lower property sales.

• Consumer products net profit rose 17.5% to HK$756 million, with Nanyang Tobacco sales up 12.6% year-over-year.

• Comprehensive healthcare operations net profit dropped 95.7% to HK$2.34 million after disposal of a major associate.

Outlook and guidance

• Management expects a complex global economic landscape in 2026, with China focusing on boosting domestic demand and green transformation.

• Infrastructure and environmental protection will leverage favorable policies to expand market share and project portfolio.

• Real estate market remains uncertain, but policies are expected to remain accommodative, focusing on prime cities and quality homes.

• Consumer products will prioritize innovation, digital transformation, and efficiency to drive growth.