Hong Kong-listed Zhongtian Construction (Hunan) Group Limited (ZT HN GROUP) released its audited results for the year ended 31 December 2025.

Financial performance • Revenue declined 37.00% year on year to RMB586.35 million (FY2024: RMB930.80 million), driven by broad-based weakness across major construction segments. • Gross profit slipped 18.00% to RMB58.25 million, yet the gross margin improved to 9.9% (FY2024: 7.6%) as cost controls partly offset the revenue contraction. • Net loss expanded to RMB77.70 million from RMB26.44 million a year earlier, mainly due to a RMB74.01 million impairment on financial and contract assets and lower other income. • Basic loss per share widened to RMB13.11 cents (FY2024: RMB4.69 cents). No dividend was proposed.

Segment highlights • Civil building construction revenue fell 35.30% to RMB342.57 million. • Municipal works revenue dropped 51.90% to RMB135.93 million. • Prefabricated steel structure revenue rose 43.20% to RMB50.37 million, the only segment to record growth. • Other specialised contracting revenue declined 32.70% to RMB54.18 million. • Construction machinery and equipment services contributed RMB3.28 million (FY2024: RMB3.11 million).

Cost structure and expenses • Cost of sales decreased 38.60% to RMB528.10 million, broadly in line with revenue. • Administrative and other expenses were trimmed by 13.80% to RMB63.79 million. • Finance costs fell to RMB3.93 million (-26.10%) as total borrowings decreased.

Balance sheet and liquidity • Cash and cash equivalents stood at RMB29.51 million (FY2024: RMB32.54 million). • Total interest-bearing borrowings (including lease liabilities) decreased to RMB94.19 million, yielding a gearing ratio of 22.2% (FY2024: 23.0%). • Current ratio edged down to 1.23 (FY2024: 1.27). • Trade, bills and other receivables and prepayments contracted to RMB384.96 million, reflecting lower turnover and higher impairment provisions. • Net current assets amounted to RMB380.44 million (FY2024: RMB465.34 million).

Covenant breach and subsequent events The Group breached certain financial covenants on borrowings totaling RMB73.50 million as at year-end; lenders granted waivers after the balance-sheet date, and RMB16.06 million of loans were renewed in February 2026.

Capital expenditure and commitments Outstanding capital commitments for property, plant and equipment were RMB14.50 million. Net proceeds of RMB10.70 million from the 2023 IPO remain earmarked for machinery purchases, with utilisation now expected by December 2026.

Employment Headcount declined to 327 (-5.20%), and staff costs fell to RMB19.27 million (-19.30%).

Dividend The Board did not recommend a dividend for FY2025.