HORIZON Construction Development Limited (HORIZON CD, 09930) released its unaudited interim results for the six months ended 30 June 2026.

Financial Highlights • Revenue fell 7.5% year-on-year (YoY) to RMB 4.02 billion, weighed by softer domestic demand. • Gross profit rose 19.1% to RMB 1.12 billion; gross margin improved to 27.8% from 21.6% a year earlier, reflecting a richer service mix and tighter cost control. • Profit before tax increased 5.6% to RMB 53.08 million; net profit attributable to shareholders edged up 3.1% to RMB 36.60 million. • Basic earnings per share came in at RMB 0.012, versus RMB 0.011 in 1H 2025. • EBITDA margin expanded to 47.3% from 45.3%.

Business Segments • Operating lease services delivered RMB 2.64 billion, up 16.4% YoY and accounting for 65.5% of total revenue; segment gross margin climbed to 32.4% (1H 2025: 27.4%). • Engineering & technical services revenue decreased 32.4% to RMB 769.49 million; margin improved to 18.8%. • Asset management & other services revenue slipped 34.6% to RMB 618.56 million; margin rose to 19.5%.

Regional Performance • Domestic turnover (Mainland China, Hong Kong, Macau) declined 17.4% to RMB 3.10 billion, representing 77% of group revenue. • Overseas revenue jumped 54.7% to RMB 924.01 million, lifting the offshore contribution to 23% of the total.

Balance Sheet & Cash Flow • Total assets stood at RMB 35.80 billion, dipping 1.6% from end-2025; cash and bank balances increased 3.8% to RMB 1.67 billion. • Interest-bearing bank and other borrowings fell 1.8% to RMB 19.97 billion; gearing ratio was broadly stable at 69.1% (end-2025: 68.9%). • Net operating cash inflow reached RMB 1.32 billion.

Capital Expenditure & Commitments • Capex rose 16.6% to RMB 961.68 million, largely for fleet expansion, with contracted but unprovided capex of RMB 143.72 million outstanding at period-end.

Dividend • No interim dividend was declared. The company distributed a final dividend of HK$0.016 per share for FY 2025 on 9 July 2026.

Operational Developments • Service network expanded to 544 outlets worldwide, including 77 overseas locations across 10 countries. • Management reiterated commitment to “Three + Three + Three” strategy, focusing on lean domestic operations, overseas scale-up in Southeast Asia and the Middle East, and further asset-light initiatives.

Outlook HORIZON CD intends to prioritise high-margin projects, enhance asset utilisation, and deepen its global footprint while maintaining disciplined capital management to navigate ongoing industry headwinds.