Sinoma International Engineering (600970) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 21.26 billion, down 1.9% year-over-year; net profit attributable to shareholders was RMB 933 million, down 34% year-over-year, mainly due to FX losses and reduced non-current asset disposal gains.

• Overseas revenue grew 9% to RMB 12.78 billion, offsetting domestic market weakness; new contract value reached RMB 44.52 billion, up 8% year-over-year, with overseas contracts accounting for 70%.

• Gross margin was 16.78%, up 0.06 percentage points year-over-year; operating cash flow improved, with cash collection rate exceeding 98%.

Financial highlights

• Operating income: RMB 21.26 billion, -1.9% year-over-year.

• Net profit attributable to shareholders: RMB 933 million, -34.3% year-over-year.

• Basic and diluted EPS: RMB 0.36, -33.3% year-over-year.

• Gross margin: 16.78%, up 0.06 percentage points year-over-year.

• Operating cash flow: net outflow of RMB 157 million, improved from RMB 608 million outflow last year.

• Net assets attributable to shareholders: RMB 22.57 billion, -1.68% from year-end 2025.

Outlook and guidance

• Management will focus on high-quality growth, overseas expansion, and green/low-carbon transformation.

• Emphasis on building three industrial chains: cement & materials, mining, and green energy/environmental protection.

• Four key drivers: technology innovation, green intelligence, localization, and investment/M&A.