Sinoma International Engineering (600970) H1 2025 earnings summary

Executive summary

• Achieved revenue of ¥21.68 billion, up 3.74% year-over-year; net profit attributable to shareholders was ¥1.42 billion, up 1.56% year-over-year.

• New contract signings reached ¥41.16 billion, up 11% year-over-year, with overseas contracts up 19%.

• Effective backlog at period-end was ¥62.04 billion, up 5.94% from the previous period.

• Internationalization index rose to 47.61%, with overseas revenue up 25.15% year-over-year.

Financial highlights

• Operating income: ¥21.68 billion, up 3.74% year-over-year.

• Net profit attributable to shareholders: ¥1.42 billion, up 1.56% year-over-year.

• Operating cash flow: -¥607.6 million, down from ¥885.5 million last year, mainly due to increased supplier payments.

• Gross margin: 16.41%, down 2.73 percentage points year-over-year.

• Basic and diluted EPS: ¥0.54, up 1.89% year-over-year.

• ROE: 6.61%, down 0.57 percentage points year-over-year.

Outlook and guidance

• Management expects continued growth in overseas markets, especially along the Belt and Road, and further expansion in green energy and digital services.

• Domestic market remains challenging, but policy support and major projects are expected to drive incremental demand.