Zhongtian Construction (2433) H1 2026 earnings summary

Executive summary

• H1 2026 revenue was RMB321.0m, down 7.4% YoY; gross profit fell to RMB32.2m and gross margin to 10.0%.

• Loss attributable to owners widened to RMB85.8m from RMB18.4m, mainly as impairment losses on financial and contract assets rose to RMB104.1m from RMB24.3m.

• Priorities include cash flow, collections, risk control and selective project growth amid challenging construction conditions.

Financial highlights

• Cost of sales declined 6.1% to RMB288.9m; administrative and other expenses fell 29.0% to RMB24.5m, and finance costs fell 14.1% to RMB1.9m.

• Loss before tax was RMB98.1m; a RMB10.6m income tax credit brought period loss to RMB87.5m.

• Basic and diluted loss per share was RMB14.89 cents versus RMB3.19 cents in H1 2025; no interim dividend was declared.

Outlook and guidance

• Near-term conditions remain challenging amid property-market adjustment, cautious spending, margin pressure and prolonged settlement cycles.

• Focus on civil building and selected municipal projects with acceptable risk; tighten credit screening, accelerate collections, maintain cost discipline and assess opportunities in urban renewal, infrastructure maintenance, green construction and specialised services selectively.