Zhongtian Construction (2433) H2 2025 earnings summary

Executive summary

• FY2025 revenue fell 37.0% YoY to RMB586.3 million; gross margin improved to 9.9% from 7.6%, while net loss widened to RMB77.7 million from RMB26.4 million.

• Higher impairment losses on financial and contract assets, alongside lower revenue and gross profit, drove the larger loss.

Financial highlights

• Revenue was RMB586.346 million, down from RMB930.801 million; gross profit was RMB58.248 million versus RMB70.981 million.

• Administrative and other expenses decreased to RMB63.785 million from RMB73.990 million; impairment losses rose to RMB74.007 million from RMB37.611 million.

• Loss before tax was RMB82.426 million versus RMB30.816 million; income tax credit was RMB4.729 million versus RMB4.375 million.

• Net loss attributable to owners was RMB75.493 million; basic and diluted loss per share was RMB13.11 cents versus RMB4.69 cents.

Outlook and guidance

• Directors expect sufficient working capital to meet obligations during the 12-month forecast period, subject to successful bank renewals, continued facility access, stable conditions, cost controls and expected customer collections.

• Cost-control measures and close monitoring of working capital are being maintained to improve operating results and cash flows.