Zhongtian Construction (2433) H1 2025 earnings summary

Executive summary

• 1H2025 revenue was RMB346.554m, down 2.8% YoY; gross margin rose to 11.3% and owner-attributable loss narrowed 14.6% to RMB18.397m.

• Civil building and municipal works grew, offsetting steep declines in prefabricated steel and specialised contracting; liquidity remained tight despite lower borrowings and higher cash.

Financial highlights

• Revenue was RMB346.554m versus RMB356.507m; gross profit rose to RMB39.072m from RMB38.735m.

• Loss before tax narrowed to RMB21.532m from RMB26.843m; period loss was RMB19.533m versus RMB22.713m, including a RMB1.999m tax credit.

• Owner-attributable loss narrowed to RMB18.397m from RMB21.551m; basic and diluted loss per share was RMB3.19 cents versus restated RMB4.25 cents.

• Cost of sales fell 3.2% to RMB307.5m; administrative and other expenses were RMB34.5m versus RMB34.9m, and impairment losses were RMB24.268m versus RMB28.492m.

Outlook and guidance

• Priorities include resilient civil and municipal projects, stricter client and project screening, cost discipline, receivables collection and liquidity preservation.

• Potential opportunities include urban renewal, infrastructure upgrades and green construction, subject to policy support and market conditions.

• No numerical financial guidance was stated; strategy remained prudent amid uncertainty and intense project competition.