Tianjin Construction Development Group Issues Profit Warning for FY2025

Key Highlights

• Profit Warning Issued: Tianjin Construction Development Group Co., Ltd. (“the Company”) has announced that it expects to record a substantial loss attributable to equity shareholders for the fiscal year ended 31 December 2025. This announcement is made in compliance with Hong Kong Listing Rules and the Securities and Futures Ordinance.
• Expected Financial Loss: The Company anticipates a net loss between RMB 46.0 million and RMB 51.0 million for FY2025. This is a significant reversal from the previous year, when the Company reported a net profit of approximately RMB 21.8 million for FY2024.
• Main Reasons for Loss:
  • Industry Slowdown & Competition: The construction industry in Tianjin has experienced a slowdown, with intensified competition leading to decreased revenue.
  • Impairment Losses: The Company has recognized impairment losses on trade receivables, contract assets, and other receivables.
  • Collection & Billing Issues: Specifically, the slowdown in the collection of trade receivables has led to a rise in aged receivables, while a slower billing process for contract assets has resulted in more aged contract assets.
• Results Not Yet Finalized: The financial results for the year ended 31 December 2025 are still being finalized. The figures disclosed are based on preliminary unaudited management accounts and information currently available to the Board.

Important Information for Shareholders

• Potential Share Price Impact: The significant swing from profit to loss is likely to be price sensitive and may materially affect the value of the Company’s shares once the market fully digests the news.
• Risk of Financial Deterioration: The recognition of impairment losses and the challenges in receivables collection and contract billing highlight underlying operational and industry risks. These issues could have ongoing implications for cash flow and profitability.
• Pending Official Results: The final audited results, which may be subject to adjustments or further provisions, are expected to be published by the end of March 2026. Shareholders and investors are strongly advised to review the official release when available.
• Caution in Trading: Given the uncertainty and the potential for further negative surprises, shareholders and potential investors should exercise caution when dealing in the Company’s shares.

Management Statement

The profit warning was issued by Mr. Wang Wenbin, Chairman and non-executive Director, on behalf of the Board. The Board comprises a mix of executive, non-executive, and independent non-executive Directors, reflecting the Company’s governance structure as of the announcement date in March 2026.

Conclusion

The announcement of a significant expected loss for FY2025 marks a notable shift in Tianjin Construction Development Group’s financial performance, primarily attributed to a challenging industry environment and operational headwinds. Investors should monitor upcoming disclosures and be mindful of the elevated risks and uncertainties facing the Company in the near term.

Disclaimer: This article is based on preliminary and unaudited information provided by Tianjin Construction Development Group Co., Ltd. Investors are strongly advised to await the publication of the final audited results and to consult with professional advisers before making any investment decisions. The information presented here is not investment advice and is subject to change without notice.

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