Zhongshen Jianye Holding (2503) H1 2024 earnings summary

Executive summary

• H1 revenue fell 23.5% YoY to RMB379.0m as fewer projects generated revenue; profit dropped 96.9% to RMB0.3m, with higher administrative expenses also weighing on results.

• Adjusted net profit, excluding listing expenses, declined to RMB1.9m from RMB13.2m; net assets rose 27.4% to RMB474.4m from 31 Dec 2023.

Financial highlights

• Revenue was RMB379.0m versus RMB495.8m; cost of revenue fell 23.5% to RMB357.4m, and gross profit declined to RMB21.7m from RMB28.5m.

• Operating profit was RMB3.6m versus RMB16.5m; profit before tax was RMB3.5m versus RMB15.2m, and net profit was RMB0.3m versus RMB10.8m.

• Administrative expenses rose 23.3% to RMB20.2m, mainly due to higher staff costs and professional fees.

• Basic and diluted EPS was RMB0.07 cents per share versus RMB2.79 cents; listing expenses were RMB1.6m versus RMB2.4m.

Outlook and guidance

• PRC and Guangdong infrastructure policies are expected to support demand; plans focus on broadening construction services and strengthening market presence, particularly in Guangdong.