China ITS posts 2025 net profit of RMB70.49 million, up 219%, on 13% revenue growth and stronger power-plant FX gains

Bulletin Express
Mar 31

China ITS (Holdings) Co., Ltd. reported audited results for the year ended 31 December 2025.

Key financials • New contracts: RMB976.20 million, +1.6% YoY. • Revenue: RMB927.85 million, +13.2% YoY. • Gross profit: RMB325.15 million, +6.5% YoY; gross margin slipped to 35.0% (-2.2 ppts). • Profit attributable to shareholders: RMB70.49 million, +219.0% YoY. • Basic/Diluted EPS: RMB0.04. • Backlog: RMB1.09 billion, +27.2% YoY. • Net cash position: RMB455.70 million; current ratio 2.2; gearing ratio ‑22.0%.

Segment performance • Railway revenue rose 7.5% to RMB519.79 million; gross margin declined to 15.2% on lower-margin strategic projects. • Energy revenue fell 29.9% to RMB235.82 million after adopting IAS 21 “Lack of Exchangeability”; gross margin improved to 70.2% thanks to two upward adjustments of Myanmar settlement FX rates. • Aviation, consolidated for the first time after the 1 Jan 2025 takeover of Forever Opensource Software (FOSS), contributed RMB172.23 million revenue and RMB80.34 million gross profit, with a 46.6% margin.

Non-operating items • Fair-value re-measurement gain on pre-existing FOSS stake: RMB350.17 million. • Goodwill impairment tied to the FOSS acquisition: RMB373.46 million. • Net impairment losses on financial and contract assets narrowed to RMB13.81 million (2024: RMB36.29 million). • Finance costs decreased to RMB7.47 million (2024: RMB10.54 million). • Other income and gains jumped to RMB69.30 million, driven by performance-guarantee compensation, investment gains and rental income.

Balance-sheet highlights • Cash and cash equivalents: RMB699.44 million. • Pledged deposits: RMB39.68 million. • Interest-bearing bank borrowings: RMB283.47 million, 100% RMB-denominated. • Investment properties valued at RMB55.88 million after a RMB12.41 million fair-value loss.

Operational metrics • Inventory turnover: 202 days (2024: 320 days). • Trade receivables turnover: 173 days (2024: 183 days). • Trade payables turnover: 158 days (2024: 335 days).

Strategic developments • Overseas expansion: secured a ~RMB169 million communications contract for Nigeria’s Kano-Maradi railway. • Energy segment: renewed the 151 MW Ahlone power-plant contract in Myanmar to 2031; further FX-rate adjustments boosted profitability. • New energy: grid-connection achieved for distributed PV projects covering Renqiu East and 12 other service-area pairs; additional Shunping PV projects signed. • Aviation and AI: FOSS is focusing on large-model solutions for airlines, airports and low-altitude economy opportunities.

Dividend The Board recommended no final dividend for 2025.

Annual general meeting AGM slated for 28 May 2026; register of members closed 22–28 May 2026.

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