Shanxi Installation Group (2520) H1 2025 earnings summary

Executive summary

• H1 revenue fell 6.6% YoY to RMB5.614bn and net profit declined 21.9% to RMB90.348m; gross margin improved to 10.7% from 10.0%.

• New-energy contract value exceeded RMB8bn and overseas wins exceeded RMB800m; 12.3MW of rooftop PV installations entered operation.

• Unfulfilled performance obligations totaled RMB38.179bn at June 30, 2025; operating cash flow was negative RMB77.945m.

Financial highlights

• Operating revenue was RMB5.614bn, down 6.6% YoY; operating costs fell 7.3% to RMB5.016bn, and gross profit was RMB598.678m, down 0.5%.

• Gross margin rose to 10.7% from 10.0%, mainly on improved margins in auxiliary and other construction.

• Net profit was RMB90.348m, down 21.9%; profit attributable to parent shareholders fell 29.3% to RMB63.283m. Operating profit was RMB103.649m versus RMB113.632m; total profit was RMB103.534m.

• Basic and diluted EPS were RMB0.05 versus RMB0.07; R&D expense rose 27.6% to RMB172.876m, while finance expense fell 37.9% to RMB38.729m.

• Net cash used in operating activities was RMB77.945m versus cash generated of RMB54.643m; cash and cash equivalents ended at RMB1.965bn.

Outlook and guidance

• Priorities include quality and efficiency, optimizing market mix, assessing projects for risk, profit and cash flow, and expanding through government-enterprise and equity cooperation.

• Growth priorities include specialized industrial and auxiliary construction, new energy, chemical projects, energy storage, offshore wind, hydrogen, clean heat, solid waste, water treatment and distributed energy.

• Overseas project execution, delivery controls and risk screening are priorities; RMB38.179bn of remaining performance obligations was scheduled for recognition, including RMB12.532bn within one year and RMB24.338bn in one to five years.