Hong Kong – Shanxi Installation Group Co., Ltd. (Shanxi Installation) released its 2025 audited results, reporting operating revenue of RMB10.53 billion, down 13.98% from 2024. Net profit fell 7.88% year-on-year to RMB193.26 million, while net profit attributable to shareholders dropped 9.92% to RMB138.43 million.
Gross profit declined 20.98% to RMB1.20 billion, driving the gross margin down 1.0 percentage point to 11.4%. Despite lower sales, the net margin edged up to 1.8% (2024: 1.7%) as income-tax expenses nearly halved to RMB7.12 million.
Earnings per share came in at RMB0.10 versus RMB0.11 a year earlier. The Board proposes a final dividend of RMB0.20380 per 10 shares, equivalent to a distribution of RMB27.99 million—more than four times the prior-year payout of RMB6.23 million.
Segment performance • Construction contracting generated external revenue of RMB9.67 billion, down 14.8%, and posted operating profit of RMB41.78 million. • Non-construction businesses contributed RMB865.68 million in external revenue (–2.7%) but delivered RMB245.10 million in operating profit, offsetting construction softness. • New‐energy and environmental projects remained bright spots: clean-heating, solid-waste, distributed energy and wastewater contracts advanced, though detailed values were not disclosed.
Cost structure and expenses Cost of sales fell 12.99% in line with revenue, landing at RMB9.33 billion. Management expenses were broadly stable at RMB467.55 million, while R&D spending was sharply reduced by 62.80% to RMB220.75 million. Finance costs eased 9.19% to RMB92.95 million as interest expenses moderated.
Balance-sheet highlights Total assets expanded 7.88% to RMB26.02 billion. Cash and bank balances stood at RMB1.82 billion, down RMB803.46 million from 2024, largely reflecting working-capital needs. Total borrowings rose to RMB7.84 billion (2024: RMB6.12 billion), lifting the gearing ratio to 64.33%. The current ratio improved slightly to approximately 1.0 after current assets increased to RMB18.95 billion.
Capital commitments & financing Outstanding capex commitments reached RMB2.26 billion (2024: RMB1.26 billion). As of year-end, Shanxi Installation had utilised HK$339.6 million of the HK$738.5 million IPO proceeds, earmarking the balance for new-energy, environmental and distributed projects through 2027. Post-period, the company issued RMB500 million of 2-year corporate bonds on 9 February 2026.
Outlook and risks Management plans to deepen chemical, new-energy and low-carbon environmental businesses, accelerate overseas expansion, and leverage its Hong Kong listing for diversified funding. Key risks identified include policy shifts in infrastructure, market concentration of major customers and suppliers, and evolving environmental compliance requirements.