Horizon Construction Development (9930) H2 2025 earnings summary

Executive summary

• Revenue declined 19% year-over-year to RMB9.36 billion in 2025, with overseas revenue share rising to 15% of total revenue.

• EBITDA fell 11% and net profit dropped 84% year-over-year, reflecting challenging domestic market conditions.

• Overseas business expanded rapidly, with revenue up 260% year-over-year to RMB1.4 billion and profit of RMB130 million.

• Domestic business focused on asset optimization, cost control, and resilience amid industry downturn, while overseas operations emphasized localization and systematic capability building.

• The group completed a major acquisition in Malaysia, strengthening its Southeast Asia presence.

Financial highlights

• Gross profit margin declined from 32.6% to between 23.6% and 26.4%, with domestic margin falling and overseas margin stable.

• EPS decreased 83% year-over-year to RMB0.047.

• ROA and ROE dropped to 0.4% and 1.3%, respectively.

• Free cash flow turned positive due to reduced capital expenditure.

• Total assets stood at RMB36.37 billion, with a gearing ratio of 68.9%.

Outlook and guidance

• Overseas business targets over 50% revenue growth and over 30% net profit growth in 2026.

• Overseas assets expected to account for 20% of total assets.

• Company will maintain prudent operations and leverage strong capital structure to adapt to future market changes, focusing on large-scale overseas profitability and local market penetration.

• Domestic operations will emphasize lean management, customer segmentation, and urban ecosystem development.

• Overseas expansion will target Africa, South America, and Asia, with systematic assessments and prudent entry.