Horizon Construction Development (9930) H1 2025 earnings summary

Executive summary

• Maintained a leading position in China's equipment operation service industry, with total assets of RMB36.58 billion and 567 branches globally.

• Revenue for H1 2025 was RMB4.35 billion, down 10.7% year-over-year, mainly due to lower domestic rental rates and contraction in the materials business.

• Overseas revenue surged 719.8% to RMB597 million, now 13.7% of total revenue, driven by expansion in Southeast Asia and the Middle East.

• Completed acquisition of 80% equity in Malaysia's TH Tong Heng Machinery Sdn. Bhd. for approximately RMB290 million, strengthening regional leadership.

• Shifted domestic strategy from scale-driven to lean management, focusing on asset optimization and cash flow.

Financial highlights

• EBITDA for H1 2025 was RMB1.97 billion, down 1.7% year-over-year.

• Net profit attributable to shareholders fell 86.8% to RMB35.5 million; gross profit margin declined to 21.6% from 32.0%.

• Total assets increased to RMB36.58 billion, with liabilities at RMB25.25 billion; gearing ratio rose to 69.0%.

• Cash and cash equivalents rose 13% to RMB21.8 million; cash and bank balances rose 38.1% to RMB2.48 billion.

• Net cash from operating activities was RMB1.78 billion, up from RMB1.35 billion in H1 2024.

Outlook and guidance

• Plans to expand into 3–5 new overseas countries in H2 2025, focusing on Africa, South America, and Asia.

• Overseas business asset management scale projected to reach RMB100 million and revenue to RMB40+ million by 2027.

• No interim dividend was declared for H1 2025.