BAOYE GROUP (02355) announces annual performance, with a net profit attributable to shareholders of 290 million yuan, a 29.34% decrease year-on-year.

BAOYE GROUP (02355) released its annual performance as of December 31, 2025. The group achieved a revenue of 19.947 billion RMB, a decrease of 10.71% compared to the previous year; the net profit attributable to owners of the company was 290 million RMB, a decrease of 29.34% year-on-year; the basic earnings per share were 0.56 RMB; and the proposed final dividend was 0.085 RMB per share. For the year ending December 31, 2025, the group's construction business achieved a revenue of approximately 11.852 billion RMB, a decrease of about 16% compared to the previous year; the operating profit was approximately 358 million RMB, a decrease of about 32% compared to the previous year. The decline in revenue and operating profit in the construction business in 2025 was mainly due to the slowdown in macroeconomic growth, increased pressure on local finances, a slowdown in direct infrastructure investment growth, the real estate market still undergoing a deep adjustment, shrinking demand in the construction market, and various other factors leading to a sharp decline in the market. The construction industry has entered a period of intense competition with excess capacity and a continuous decline in gross profit margin for construction companies.