Zhongshen Jianye Holding (2503) H1 2026 earnings summary

Executive summary

• H1 2026 revenue fell 4.5% YoY to RMB192.2m amid slower construction activity; gross profit rose to RMB15.1m and net loss narrowed to RMB9.5m, supported by Huajian.

• Net assets reached RMB737.4m at 30 June 2026, up 32.7% from year-end 2025.

Financial highlights

• Cost of revenue fell 6.5% to RMB177.1m.

• Gross profit rose to RMB15.1m from RMB11.8m; gross margin increased to 7.9% from 5.9%, reflecting Huajian’s high-margin services.

• Operating loss narrowed to RMB7.1m from RMB10.9m; net loss narrowed to RMB9.5m from RMB11.8m.

• Loss attributable to owners was RMB9.6m; basic and diluted loss per share improved to RMB0.86 cents from RMB1.98 cents.

Outlook and guidance

• Strategy targets green buildings, intelligent construction and full-process engineering solutions, in line with policy priorities for renewable energy, urban renewal and digital transformation.

• Huajian integration is expected to broaden full-chain engineering services, reduce project risks and costs, improve delivery quality and extend services beyond the Pearl River Delta.

• Remaining proceeds for potential construction-sector acquisitions are targeted for use by 31 December 2027, subject to suitable targets and market conditions.

• Equipment-purchase proceeds remain largely unutilised as leasing is preferred; the utilisation timeline is 31 December 2027.