Company Overview Zhonggan Communication (Group) Holdings Limited, listed on the Hong Kong Main Board since July 2024, provides Telecommunications Infrastructure Services and Digitalisation Solution Services across 30 provinces in mainland China.
Financial Performance (1H26 vs. 1H25) • Revenue rose 12.3% to RMB179.30 million (1H25: RMB159.69 million), driven by higher infrastructure work. • Gross profit was broadly flat at RMB26.33 million (+0.5% YoY); overall gross margin compressed to 14.7% from 16.4%. • The Group recorded a net loss of RMB3.34 million, reversing a RMB4.20 million profit in the prior-year period.
Segment Breakdown • Telecommunications Infrastructure Services contributed 98.7% of turnover, advancing 16.9% YoY to RMB176.87 million. Infrastructure Construction Services grew 22.2% to RMB167.77 million, while Maintenance Services fell 34.8% to RMB9.10 million. • Digitalisation Solution Services contracted 82.1% to RMB1.50 million amid softer demand for integrated and software solutions. • Rental income from investment property generated RMB0.92 million, representing 0.5% of total revenue.
Cost & Expense Dynamics • Cost of sales climbed 14.6% to RMB152.98 million, broadly matching revenue growth. • Administrative expenses were pared by 33.3% to RMB5.94 million; R&D spending halved to RMB1.43 million. • Impairment losses on receivables and contract assets rose 37.4% to RMB9.09 million. • Finance costs increased 29.0% to RMB11.66 million, reflecting higher average borrowings. • Other net income swung from a RMB7.18 million gain to a RMB0.53 million loss due to lower government grants and FX losses.
Cash Flow & Balance Sheet • Operating cash outflow totalled RMB33.00 million, driven by higher contract assets and lower payables. • Cash and cash equivalents stood at RMB34.98 million (31 Dec 2025: RMB36.84 million). • Bank borrowings rose to RMB603.11 million (31 Dec 2025: RMB565.05 million); gearing ratio edged up to 1.4× equity (31 Dec 2025: 1.3×). • No capital commitments, contingent liabilities, or significant acquisitions/disposals reported during the period.
IPO Proceeds Deployment Of the HK$141.90 million net proceeds from the July 2024 listing, HK$96.50 million had been utilised by 30 June 2026. The remaining HK$35.30 million is earmarked chiefly for upfront costs on integrated solution projects and R&D, with full deployment targeted by end-2026.
Management Outlook Despite macroeconomic headwinds and intensified competition, management expects ongoing 5G rollout, computing-power network expansion and digitisation demand to underpin sector growth. The Group will prioritise core telecom-operator contracts, tighten cost control, and pursue diversified revenue streams to restore profitability in the second half of 2026.