China Electronics Optics Valley Union Holding Company (798) H2 2025 earnings summary

Executive summary

• Revenue rose 9.2% year-over-year to RMB3,919.5 million, driven by strong industrial park development services, though net profit fell 30.3% to RMB74.1 million due to fair value losses on investment properties and higher tax expense.

• Cash flow from operating activities remained positive for the seventh consecutive year, with a net inflow of RMB103.7 million.

• The Board proposed a final dividend of HK$0.49 cents per share (RMB31.7 million total), subject to AGM approval.

Financial highlights

• Gross profit decreased 5.9% to RMB1,032.6 million; gross margin dropped to 26.3% from 30.6% year-over-year.

• Cost of sales increased 15.9% to RMB2,886.9 million, mainly due to higher property sales costs.

• Profit attributable to owners was RMB32.6 million, down from RMB95.7 million; basic EPS was RMB0.45 cents (2024: RMB1.30 cents).

• Core net profit (excluding after-tax fair value changes) was RMB107.4 million, up RMB15.1 million year-over-year.

• Current ratio improved to 1.58 (2024: 1.28); net gearing ratio rose slightly to 43.8%.

Outlook and guidance

• Focus in 2026 will be on accelerating inventory reduction, optimizing debt structure, and advancing digital transformation and AI integration.

• The company aims to strengthen integrated park operations and responsive customization, targeting high-quality, long-term growth.