SHANXI INSTALL (H-share: 02520) released its interim results for the six months ended 30 June 2026.
• Revenue fell 18.71 % year-on-year to RMB4.56 billion, reflecting a broad industry downturn and weaker specialised industrial construction demand. • Net profit rose 5.70 % to RMB87.75 million, aided by a lower effective tax charge and tighter cost control. Basic EPS reached RMB0.0426. • Gross profit slipped 12.88 % to RMB521.58 million; gross margin improved to 11.40 % (H1 2025: 10.70 %), supported by centralised procurement and lean project management.
Segment performance • Specialised industrial construction: RMB3.22 billion (-20.94 %), still 70.5 % of group revenue. • Specialised auxiliary construction: RMB0.47 billion (-11.77 %). • Other construction: RMB0.22 billion (-55.83 %). • Non-construction business (PPP operation fees, LNG sales, heating services, etc.): RMB0.58 billion (+19.38 %), emerging as the main growth driver.
Financial position • Cash and bank balances: RMB1.61 billion. • Net current assets: RMB1.78 billion; current ratio 1.1. • Total borrowings: RMB7.64 billion; gearing ratio 63.62 % (31 Dec 2025: 64.33 %). • Two tranches of corporate bonds totalling RMB850 million were issued in H1 to refinance debt at lower rates.
Investment & capex • Outstanding capital commitments reached RMB2.70 billion. • H1 capex was RMB198.19 million, mainly for new energy and solid-waste projects.
Operational highlights • Contract assets climbed to RMB12.96 billion; the order book’s unfulfilled transaction price stood at RMB32.30 billion, of which 31 % is expected to convert to revenue within one year. • Overseas expansion advanced with EPC wins in Indonesia and Oman, while domestic wins centred on new-energy storage and semiconductor materials. • Construction quality metrics improved: customer complaint rate dropped 28.57 % year-on-year.
Risk factors Management cites policy shifts, intensified competition, environmental compliance and market liquidity as principal risks.
Dividend The Board does not recommend an interim dividend.
Outlook Management will pursue higher-margin chemical, new-energy and low-carbon environmental projects, accelerate out-of-province and overseas penetration, and optimise capital structure while maintaining disciplined cost control.