Zhong Guo Jing Ying Bao·2025-05-06 11:21Core Viewpoint - China Communications Construction Company (CCCC) reported a decline in revenue and net profit for Q1 2025, indicating challenges in the domestic construction industry and economic cycles [1][2]. Financial Performance - In Q1 2025, CCCC achieved operating revenue of 154.644 billion yuan, a year-on-year decrease of 12.58%, and a net profit attributable to shareholders of 5.467 billion yuan, down 10.98% from the previous year [1]. - The decline in revenue and profit was attributed to increased cash flow expenditures for procurement and prepayments, as well as adjustments in project resumption schedules due to holiday breaks and funding availability [1]. New Contracts - CCCC signed new contracts worth 553.034 billion yuan in Q1 2025, representing a year-on-year increase of 9.02%, achieving 27% of the annual target [2]. - Domestic new contracts amounted to 446.157 billion yuan, up 7.23%, while international contracts reached 106.877 billion yuan (approximately 15.023 billion USD), a growth of 17.14% [2]. - The increase in new contracts was driven by accelerated domestic bidding processes, with the average bidding cycle for EPC projects reduced to 45 days [2]. Business Segments - The urban construction segment accounted for over half of the new contracts, with a year-on-year growth of 4.53% [2]. - Other sectors such as port construction, infrastructure design, and dredging also saw positive growth, while road and bridge construction and railway construction experienced declines of 6.02% and 14.47%, respectively [2]. Future Outlook - CCCC's board set a target for 2025, aiming for a 7.1% year-on-year growth in new contracts and a 5.0% increase in operating revenue [3]. - The company aims to maintain a strong position in the industry, leveraging its status as a leading state-owned enterprise in infrastructure services [3].