Zhonggan Communication (Group) Holdings (2545) H1 2026 earnings summary

Executive summary

• H1 2026 revenue rose 12.3% YoY to RMB179.3m, but results swung to a RMB3.3m net loss from RMB4.2m profit as gross margin narrowed and impairment, finance costs and lower other net income weighed on earnings.

• New project wins totalled RMB170m; entry into Tibet expanded market coverage to 30 provinces, autonomous regions and municipalities.

Financial highlights

• Revenue increased to RMB179.3m from RMB159.7m; cost of sales rose to RMB153.0m from RMB133.5m.

• Gross profit was RMB26.3m versus RMB26.2m; gross margin narrowed to 14.7% from 16.4%.

• Profit from operations fell to RMB7.6m from RMB13.4m; finance costs increased to RMB11.7m from RMB9.0m.

• Net loss was RMB3.3m versus net profit of RMB4.2m; basic and diluted EPS was RMB(0.01) versus RMB0.01.

• Other net income shifted to a RMB0.5m loss from RMB7.2m income, mainly due to lower government grants and higher donations and FX losses.

Outlook and guidance

• H2 priorities include executing awarded orders, pursuing telecom infrastructure and computing-power network opportunities, tightening cost control and improving resource allocation.

• Management aims to reverse losses through business diversification, an optimized business mix, resource optimization and stronger internal controls and risk management.