China West Construction Group Co Ltd

China West Construction released its 2026 interim report, with net profit attributable to the parent company at a loss of 208 million yuan, an increase of 112 million yuan compared with the same period last year. Total operating revenue was 7.206 billion yuan, down 20.11 percent year-on-year, a decrease of 1.814 billion yuan. Net cash outflow from operating activities was 261 million yuan, narrowing by 654 million yuan compared with the same period last year. The company's latest asset-liability ratio was 69.62 percent, gross margin was 4.63 percent, return on equity was negative 2.49 percent, and diluted earnings per share was negative 0.18 yuan.

China West Construction's wholly-owned subsidiary China Construction Commercial Concrete plans to publicly list and transfer its 70% equity stake in Wuhan Xijian Zhongli New Building Materials Co., Ltd. through a property rights exchange, with a reserve price of 7.31 million yuan. Since its establishment in May 2022, Xijian Zhongli's business progress has been slow, with zero operating revenue in 2025 and the first quarter of 2026, and losses of 244,000 yuan and 60,500 yuan respectively. As of the valuation base date of July 31, 2025, the appraised value of all shareholders' equity in Xijian Zhongli was 10.4456 million yuan, with an appraisal appreciation rate of 3.57%. China West Construction stated that this transaction is conducive to optimizing the asset structure and revitalizing existing assets, and will not have a significant impact on the company's financial position. The company has incurred losses for two consecutive years, with net profit attributable to the parent company of negative 263 million yuan in 2024 and negative 730 million yuan in 2025. In the first quarter of 2026, revenue was 3.18 billion yuan, down 14.92% year-on-year, and net profit attributable to the parent company was a loss of 225 million yuan.