Ruian Construction (00983) Fa Yingxi expects the consolidated net profit attributable to shareholders in the interim period of approximately HK$28 million to HK$33 million to turn a year-on-year loss into profit

According to the Zhitong Finance App, Ruian Jianye (00983) announced that it is expected that the Group will record a comprehensive net profit attributable to company holders of about HK$28 million to HK$33 million for the six months ending June 30, 2026. Compared with the consolidated net loss of about HK$83 million recorded for the six months ended June 30, 2025, it will turn a loss into a profit.

The Group expects to record profit in mid-2026, mainly due to: (i) a reduction in losses arising from property sales and impairment (after deducting deferred tax provisions) of the Group's property inventory in mainland China. The loss narrowed from about HK$59 million in mid-2025 to around HK$5 million in mid-2026, mainly due to the bulk sale of several properties in Tianjin in mid-2025; (ii) a reduction in net financial costs of approximately HK$17 million due to falling bank loans and interest rates in mid-2026; and (iii) mid-2026 foreign exchange Earnings were approximately HK$87 million, compared to the mid-term earnings of HK$34 million in 2025, due to a 3.8% appreciation of RMB against HKD in the first half of 2026, and an increase of only 1.5% compared to the same period in 2025. In mid-2026, the Group's main business performance remained stable compared to mid-2025.

The Board remains cautiously optimistic about the Group's overall outlook. The Group's construction business in Hong Kong (the Group's core business) continues to be profitable, mainly maintaining a steady level of strength in the field of public works and contracts in hand. As of the date of this announcement, the Group has obtained approximately HK$11.6 billion in building construction contracts. The Group will continue to review its non-core assets and business (such reviews may cause the Group's investment properties to record impairment losses) and seek opportunities to further strengthen the Group's financial position in order to take full advantage of its advantages in the Hong Kong construction market.