Horizon Construction Development (9930) H1 2026 earnings summary

Executive summary

• Maintained leading position in China's equipment operation service industry with total assets of RMB35.8 billion and 544 branches globally, serving over 430,000 clients.

• Revenue for 2026H1 was RMB4.02 billion, down 7.5% year-over-year, mainly due to lower domestic equipment rental rates and a strategic focus on high-margin engineering business.

• Overseas revenue surged 54.7% to RMB924.0 million, now representing 23% of total revenue.

• Gross profit margin improved to 27.8%, driven by a shift to higher-margin segments and operational efficiency.

• Domestic business adjusted steadily amid challenging market, while overseas operations became a new growth engine.

Financial highlights

• EBITDA (non-HKFRS) for 2026H1 was RMB1,903.2 million, down 3.3% year-over-year.

• Net profit attributable to shareholders rose 3.1% to RMB36.6 million.

• Basic EPS increased 9.1% year-over-year to RMB0.012.

• Free cash flow declined due to lower operating cash flow and higher capex.

• Gross profit increased 19.1% to RMB1,120.5 million.

Outlook and guidance

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

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

• The company will continue to focus on lean operations, asset structure optimization, and customer-centric strategies to enhance resilience against domestic market headwinds.

• Overseas expansion remains a priority, with further investment in high-potential markets and ongoing refinement of global operations.

• No interim dividend was declared for the period.