Chongqing Constr Engineering

Chongqing Construction Engineering released its 2026 interim report. The company's total operating revenue was 10.611 billion yuan, and net profit attributable to the parent was negative 246 million yuan, a narrowing of 3.039 million yuan compared with the same period last year. Net cash flow from operating activities was negative 1.226 billion yuan, ranking second among peer companies that have disclosed results, an increase of 297 million yuan from the same period last year, marking two consecutive years of growth. The company's latest asset-liability ratio was 91.15 percent, gross margin was 4.53 percent, return on equity was negative 3.60 percent, and diluted earnings per share was negative 0.13 yuan. Total asset turnover was 0.13 times, and inventory turnover was 2.29 times, up 37.38 percent year-on-year. The number of shareholders was 42,400, and the top ten shareholders held 77.42 percent of total share capital.

The Ministry of Housing and Urban-Rural Development has issued a notice to strengthen construction market regulation across five areas: market access, project bidding, contract awarding and subcontracting, project payment, and digital-intelligent oversight, accelerating the establishment of a mechanism featuring easy entry, strict supervision, and heavy penalties. The notice calls for separating bid evaluation from contract awarding and implementing double-blind review, fully rolling out project payment guarantees and encouraging the use of surety insurance or bank guarantees to achieve payment on demand, as well as leveraging artificial intelligence to enhance regulatory efficiency. Meanwhile, amid the real estate sector adjustment and construction industry downturn, local construction companies are facing a major earnings test. In 2025, the net profit attributable to shareholders of companies in the Shenwan construction sector fell 23.42 percent year-on-year, with local builders seeing a decline of 34.97 percent. Several local state-owned enterprises, including Shaanxi Construction Engineering Group, Tagen Group, and Chongqing Construction Engineering Group, are expected to report sharp profit declines or losses in the first half of the year.