Shanxi Installation Group (2520) H2 2025 earnings summary

Executive summary

• FY2025 revenue fell 13.98% YoY to RMB10.531bn; total profit declined 10.96% to RMB200.380m and net profit fell 7.88% to RMB193.260m, amid lower construction project revenue.

• New contract wins included a RMB5.5bn PBAT plant EPC project, heating projects totaling RMB830m, overseas projects and new-energy developments.

Financial highlights

• Revenue was RMB10.531bn versus RMB12.243bn; gross profit was RMB1.202bn versus RMB1.521bn, and attributable net profit was RMB138.432m versus RMB153.678m.

• Gross margin declined to 11.41% from 12.42%; net sales margin was 1.8% versus 1.7%.

• Basic EPS was RMB0.10 versus RMB0.11; total comprehensive income was RMB199.346m versus RMB212.055m.

• R&D expense fell 62.80% to RMB220.745m; credit impairment losses rose to RMB134.224m from RMB77.195m and asset impairment losses to RMB64.706m from RMB27.736m.

Outlook and guidance

• 2026 is positioned as the first year of the 15th Five-Year Plan, with priorities including provincial market expansion, larger overseas projects, chemical and new-energy growth, and low-carbon environmental services.

• Planned capability investments include cost controls, procurement reform, technology commercialization, digital platforms and differentiated capital support; no numerical earnings guidance was stated.