Tianjin Construction Development Group (2515) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 5.3% YoY to RMB302.5m; net profit declined 46.8% to RMB21.8m, reflecting lower average contract values, higher administrative costs and impairment losses.

• Completed 39 construction projects during FY2024; 47 projects were ongoing or not yet commenced at year-end, with contract amounts of approximately RMB513.7m, excluding variation orders.

Financial highlights

• Revenue was RMB302.5m versus RMB319.4m in FY2023; cost of sales decreased 5.0% to RMB227.2m and gross profit fell 6.1% to RMB75.4m.

• Profit from operations was RMB25.5m versus RMB47.3m; profit before tax was RMB23.9m versus RMB46.9m, and net profit was RMB21.8m versus RMB41.0m.

• Other net income rose to RMB3.3m from RMB1.1m; administrative expenses increased 33.7% to RMB38.5m, while impairment losses rose 175.5% to RMB14.6m.

• Basic and diluted EPS were RMB0.11, down from RMB0.27 in FY2023; income tax expense decreased to RMB2.2m from RMB5.9m.

Outlook and guidance

• Slower tendering adversely affected FY2024 performance and may continue to affect future financial position; priorities include prudent operations, project cost control, R&D and deployment of the Jiexiao System.

• Plans include pursuing opportunities in urban renewal, affordable housing, flood management and green smart cities, expanding beyond Tianjin, and developing petrochemical engineering and new cooperation models.

• Remaining performance obligations were RMB136.7m at year-end, versus RMB83.2m in FY2023, with expected recognition over the next 12 months as work is completed.