China Communications Construction reports mixed interim results as profit dips

China Communications Construction Company (CCCC) reported a 5.8% decrease in revenue to RMB335,450 million for the first half of 2025, down from RMB356,010 million in the same period of 2024. Profit attributable to owners of the parent also fell by 16.9% to RMB9,990 million, with basic earnings per share at RMB0.58, a 17.1% drop from RMB0.70 in 2024. Gross profit decreased by 14.0% to RMB35,765 million, resulting in a lower gross profit margin of 10.7% compared to 11.7% in the prior year.

Despite the declines in revenue and profit, the company saw a 3.1% year-on-year increase in the value of new contracts, reaching RMB991,054 million. Total assets grew by 8.6% to RMB2,018,485 million as of 30 June 2025. The gearing ratio, calculated as net debt divided by total capital, increased to 53.9% from 49.1% at the end of 2024. Capital expenditure for the period rose to RMB16,272 million, primarily driven by investments in BOT projects.

The company plans to achieve at least a 7.1% growth rate in new contracts and a minimum 5% growth in revenue for the full year 2025.