Zhonggan Communication (Group) Holdings (2545) H2 2025 earnings summary

Executive summary

• FY2025 revenue fell to RMB460.3m from RMB551.1m; gross profit declined to RMB68.5m and net profit to RMB7.6m.

• Revenue and profit pressure reflected fewer infrastructure orders in H1, fewer software solution projects, and a lower contribution from high-margin digitalisation services.

Financial highlights

• Revenue RMB460.3m, down from RMB551.1m; cost of sales RMB391.7m versus RMB444.8m.

• Gross profit RMB68.5m versus RMB106.2m; gross margin 14.9% versus 19.3%.

• Operating profit RMB24.0m versus RMB38.8m; profit before tax RMB3.6m versus RMB23.5m.

• Net profit RMB7.6m versus RMB9.7m; basic and diluted EPS RMB0.01 versus RMB0.02.

• Other net income rose to RMB8.7m from RMB7.2m, mainly on higher government grants; finance costs increased to RMB20.4m from RMB15.3m.

Outlook and guidance

• Remaining performance obligations for existing digitalisation solution contracts were RMB355m at year-end, expected to be recognised over the next year; prior-year balance was RMB872m over 1–2 years.

• Unused IPO proceeds of HK$37.8m were earmarked for project upfront costs and R&D, with expected use by 31 December 2026.