Sinoma International Engineering (600970) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was RMB 9.50 billion, down 6.33% year-over-year due to weaker domestic cement market and international conditions.

• Net profit attributable to shareholders fell 31.43% year-over-year to RMB 454.7 million, impacted by currency depreciation and lower income.

• Cash flow from operating activities improved but remained negative at RMB -1.22 billion, reflecting increased project advances and collections.

Financial highlights

• Operating income: RMB 9.50 billion, down from RMB 10.15 billion year-over-year.

• Net profit: RMB 480 million, down from RMB 709 million year-over-year.

• Basic and diluted EPS: RMB 0.17, down 32% year-over-year.

• Gross margin improved slightly as cost reductions partially offset revenue decline.

• Total assets at quarter-end: RMB 64.0 billion, up 3.17% from year-end 2025.

Outlook and guidance

• Management cited ongoing challenges from domestic cement market softness and international volatility.

• Currency fluctuations, especially USD and EUR depreciation, expected to continue impacting results.