Hong Kong – Zhongshen Jianye reported unaudited interim results for the six months ended 30 June 2026, showing a tighter loss and a stronger balance sheet despite softer top-line growth.

Revenue and Mix • Revenue fell 4.5% year on year to RMB192.16 million, reflecting fewer construction projects amid an industry slowdown. • Construction services contributed 93.2% of turnover, with construction engineering projects down 36.7% to RMB65.58 million and municipal projects down 6.1% to RMB69.73 million. • Revenue from specialised contracting tripled to RMB36.32 million, while the newly acquired engineering consulting and supervision business (Huajian) added RMB13.06 million.

Profitability • Gross profit rose 27.7% to RMB15.11 million, lifting the gross margin to 7.9% (1H 2025: 5.9%), helped by the high-margin consulting segment (68.3% margin). • Operating loss narrowed to RMB7.09 million from RMB10.95 million. • Net finance costs edged up to RMB1.30 million, and income tax expense of RMB1.14 million replaced a RMB0.30 million credit a year earlier. • Net loss attributable to shareholders decreased 18.9% to RMB9.57 million, equivalent to a basic loss per share of RMB0.86 cents.

Cost Structure • Cost of revenue declined 6.5% to RMB177.05 million. Raw materials represented 42.8% of cost of sales, labour and related expenses 33.9%, and specialised subcontracting 16.7%. • Administrative expenses were broadly stable at RMB19.45 million, while impairment losses on receivables and contract assets dropped to RMB1.86 million (1H 2025: RMB2.91 million).

Balance Sheet and Liquidity • Net assets climbed 32.7% to RMB737.43 million, boosted by share financing and the Huajian acquisition. • Cash and cash equivalents surged to RMB329.56 million (31 Dec 2025: RMB58.62 million), largely due to RMB229.90 million in share application monies. • Bank borrowings declined to RMB56.85 million, cutting the gearing ratio to 7.7% (31 Dec 2025: 12.5%). The group ended the period in a net cash position. • Property, plant and equipment of RMB41.50 million remained pledged against certain borrowings.

Corporate Actions • In January 2026, Zhongshen Jianye completed the acquisition of Huajian Development Limited for HK$213.57 million, paid via 402.97 million new shares. • Post-period, a rights issue concluded on 3 July 2026 raised gross proceeds of HK$343.30 million to further strengthen capital resources.

Dividend The board declared no interim dividend (1H 2025: nil).

Outlook Management reiterated plans to leverage Huajian’s high-margin consulting capabilities, pursue further qualified acquisitions and maintain disciplined capital deployment amid continued industry headwinds.