Hongxin C&D (09930)'s overall revenue for the first quarter decreased by about 5% compared to the same period last year

According to the Zhitong Finance App, Hongxin Construction and Development (09930) announced that in the first quarter of 2026, the Group's domestic business was mainly stable, accelerated expansion of overseas markets, and maintained a steady overall development trend. As various industries in China resumed work one after another after the Spring Festival, the Group's rental rate for all major categories of equipment continued to rise. Among them, the rental rate of aerial work platforms at the end of the first quarter was about 78%. Affected by factors such as domestic business scale control and market prices, the Group's overall revenue for the first quarter decreased by about 5% compared to the same period last year. Its revenue in China decreased compared to the same period last year, while overseas revenue increased by more than 70% compared to the same period last year, accounting for more than 25% of the total revenue. Due to the fact that business activity in the domestic construction engineering industry is usually light around the Spring Festival, and the long Spring Festival holiday this year had an impact on the speed of resumption of work, the Group's profit attributable to common shareholders in the first quarter was a seasonal loss, but the loss margin narrowed compared to the same period last year.

As of the end of this review period, the Group's total number of outlets was 559, of which 482 were in mainland China and Hong Kong, while the number of overseas outlets was 77, including the Group's newly established business outlets in African countries (Morocco, Tanzania) and Central Asian countries (Kazakhstan), further improving the global business layout under the “3+3+3” strategy.

During the period under review, the Group's overall operating cash flow performance was steady and maintained a net inflow. Furthermore, the Group carefully controlled the scale of capital expenditure and generated capital expenditure of approximately RMB 560 million in the first quarter, a further decrease from the same period in 2025. The Group believes that prudent control of capital expenditure will help the Group achieve a further increase in total free cash flow throughout the year.

Looking ahead to the whole year, the Group will maintain a healthy and stable financial structure, enhance domestic and overseas operating performance, and strive to create value for shareholders.