Zhongshen Jianye Holding (2503) H1 2025 earnings summary

Executive summary

• H1 2025 revenue fell 46.9% YoY to RMB201.276m as fewer projects were active; results swung to an RMB11.810m net loss from RMB0.335m profit.

• Net assets rose 7.4% to RMB511.4m at 30 June 2025; no interim dividend was recommended.

Financial highlights

• Gross profit fell to RMB11.841m from RMB21.673m, while gross margin improved to 5.9% from 5.7%.

• Operating loss was RMB10.947m versus operating profit of RMB3.644m; loss before tax was RMB12.1m versus profit before tax of RMB3.5m.

• Basic loss per share was RMB1.98 cents versus earnings per share of RMB0.07 cents; net finance costs rose to RMB1.167m from RMB0.144m.

• Operating cash outflow was RMB56.307m versus RMB143.292m; cash and cash equivalents were RMB99.683m at 30 June 2025.

• Administrative expenses eased 2.9% to RMB19.6m, mainly due to no listing expenses, partly offset by higher depreciation.

Outlook and guidance

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

• Potential acquisition proceeds are intended for construction businesses with municipal and public works qualifications; no targets or agreements had been identified by the report date.