CNECC(SH:601611) Xin Lang Cai Jing·2025-09-07 10:32Core Viewpoint - The company experienced a decline in revenue and net profit in the first half of the year, with specific challenges in its construction and civil engineering business, while the nuclear construction segment showed growth in new contracts and revenue [1][2]. Group 1: Financial Performance - The company achieved operating revenue of 53.472 billion yuan in the first half, a year-on-year decrease of 2.11% [1]. - The net profit attributable to shareholders was 798 million yuan, down 16.48% year-on-year, while the net profit after deducting non-recurring items was 775 million yuan, a decrease of 24.96% [1]. - In Q2, the operating revenue was 23.922 billion yuan, a decline of 6.52% year-on-year, and the net profit attributable to shareholders was 246 million yuan, down 38.13% [1]. Group 2: Business Segments - The nuclear construction business signed new contracts worth 30.890 billion yuan, an increase of 34.67% year-on-year, and generated revenue of 17.754 billion yuan, up 17.71% [2]. - The construction and civil engineering business saw new contracts of 53.585 billion yuan, a slight decrease of 0.21% year-on-year, and revenue of 30.376 billion yuan, down 14.92% [2]. Group 3: Profitability and Costs - The overall gross margin for the first half was 9.81%, a decrease of 0.02 percentage points year-on-year, while Q2 gross margin was 10.89%, down 0.41 percentage points [3]. - The company’s expense ratio increased, with a total expense ratio of 6.80% in the first half, up 0.61 percentage points year-on-year, and 7.81% in Q2, an increase of 1.21 percentage points [3]. - The net profit margin for the first half was 1.49%, down 0.26 percentage points year-on-year, and 1.03% in Q2, a decrease of 0.53 percentage points [3]. Group 4: Cash Flow and Financial Health - The company experienced a net cash outflow from operating activities of 13.485 billion yuan in the first half, an increase of 584 million yuan year-on-year, with a cash collection ratio of 75.94%, up 9.41 percentage points [4]. - The asset-liability ratio decreased by 0.91 percentage points to 81.99% year-on-year, while the accounts receivable turnover days increased by 4.01 days to 147.90 days [4]. Group 5: Industry Outlook - The approval of five nuclear power projects and ten units in April indicates a sustained growth trend in the nuclear construction sector, with an estimated total investment exceeding 200 billion yuan, benefiting the company significantly [4].