Horizon Construction Development Limited · HKEX:9930
Horizon Construction Development — H1 2025 Earnings Presentation
42 slides from Horizon Construction Development's earnings presentation, July 2025
Slide 1: Investor Presentation Horizon Construction Development
Investor Presentation Horizon Construction Development July 2025
Slide 2: Disclaimer
Disclaimer This material is prepared by Horizon Construction Development ( “the Company” or “HCD”, together with its subsidiaries, the “Group”) and has not been independently audited. This document contains confidential and proprietary information, and its contents have not been verified by an indep
Slide 3: HCD: The leading comprehensive equipment operation service provider in China
HCD: The leading comprehensive equipment operation service provider in China • Horizon Construction Development (“HCD”) has been in the dominant position in China’s equipment operation service industry for years. – Total asset reaches about RMB36.58 billion, and the volumes of aerial work platforms
Slide 4: Our vision: Committed to building a world-class comprehensive equipment operation service provider
Our vision: Committed to building a world-class comprehensive equipment operation service provider • In the future, under the "3+3+3" strategy1, the company is committed to building a first-class comprehensive operation service provider across multiple national markets. Phase 1 Phase 2 (gradually en
Slide 5: Interim Business Review
Contents 1 Interim Business Review 2 Interim Financials Review 5
Slide 6: 1. Domestic Business
1. Domestic Business
Slide 7: The market environment in mainland China
The market environment in mainland China • Affected by factors such as the external environment, the supply and demand pattern of the domestic equipment operation industry has not changed. • The domestic rental prices of aerial work platforms and scaffolding are still showing a downward trend. Domes
Slide 8: Domestic strategy: from "scale-driven" to "lean management"
Domestic strategy: from "scale-driven" to "lean management" The industry situation faced The company's by the company response strategy The company will take the lead in After more than a decade of development in mainland China, the company has built the global shifting from "scale-driven" to "lea
Slide 9: Proactively control business scale
Proactively control business scale • Following the adjustment to its “scale-driven” strategy, the company has disciplined the scale of equipment and material management as well as capital expenditures. Management scale of Management scale of AWPs material assets CAPEX （in thousand units） (in thousan
Slide 10: Optimized asset structure
Optimized asset structure • Adhering to the pursuit of "lean management", the company optimized its asset structure in the first half of the year through asset transformation, asset entrust contract clearance, disposal of inefficient assets and addition of efficient assets. Convert Clearance Disposa
Slide 11: Optimized asset lifecycle management
Optimized asset lifecycle management • In the process of optimizing and adjusting the asset structure, we started from improving the complete mechanism of asset allocation and allocation and disposal, achieving further optimization of operational efficiency around the entire life cycle of assets. As
Slide 12: 2. Overseas Business
2. Overseas Business
Slide 13: Overview of overseas markets
Overview of overseas markets • The fixed asset investment and construction demand in Southeast Asia, Middle East and North Africa continue to expand. • It is expected that the demand for equipment operation services in these markets will continue to grow. Infrastructure development index of “Belt an
Slide 14: Yields of overseas market
Yields of overseas market • At present, the overseas countries that the Company has entered into are experiencing strong demand for equipment operation services. At the same time, due to the limited service capacity by peers in the local markets, local rental prices have brought higher returns to le
Slide 15: Overview of overseas presence
Overview of overseas presence • In line with the Board's overseas strategy, the company has entered into the markets of Indonesia, Malaysia, Vietnam, Thailand, Saudi Arabia, the UAE, and Turkey, rapidly expanding its business network, workforce and assets. Overseas business layout overview (As of 30
Slide 16: Overseas business performance in each country
Overseas business performance in each country • As business branches, assets and management systems in each country are gradually put in place, most of the countries that the Company has tapped into have formed a local-leading business scale and entered a stable and good operating state. Business co
Slide 17: Multi-dimensional upgrading of overseas operation capabilities
Multi-dimensional upgrading of overseas operation capabilities • Based on the marketing advantages for clients with Chinese background, the company actively expands its local client base and gradually establishes a trusting partnership. • Overseas equipment management categories are more diverse, no
Slide 18: The upgrade of overseas operation capabilities brings competitive barriers
The upgrade of overseas operation capabilities brings competitive barriers • We have shifted from an only “project-based” system to a “project plus client-based” system to market to large clients who have more comprehensive and high-end demands, and have established competitive barriers overseas thr
Slide 19: Use digital solutions such as artificial intelligence to improve efficiency and control risks
Use digital solutions such as artificial intelligence to improve efficiency and control risks • Through the company's own internal digital capabilities, domestic artificial intelligence LLM models are integrated into overseas business processes to build an intelligent solution matrix covering the en
Slide 20: Accelerate the pace of expansion into new overseas countries
Accelerate the pace of expansion into new overseas countries through a strong in-house team and equipment scale • The management team, which has been trained in China's mature market and complex environment, combines China's manufacturing advantages and digital experience. Based on the past overseas
Slide 21: Alternative path to overseas expansion: M&A
Alternative path to overseas expansion: M&A • In addition to going abroad with its own system, the company strives to accelerate its overseas expansion in the "Belt and Road" countries through equity cooperation and external expansion. The company's criteria for selecting overseas M&A targets Profes
Slide 22: TH Tong Heng Machinery acquisition summary
TH Tong Heng Machinery acquisition summary • On May 30, the company completed the acquisition of an 80% equity interests in TH Tong Heng Machinery Sdn. Bhd. (“TH” or “TH Tong Heng Machinery”), valuing the transaction at 6 times adjusted EBITDA. • TH and HCD demonstrate strong complementary synergies
Slide 23: M&A enhances corporate value
M&A enhances corporate value • While delivering tangible financial benefits, M&A serves to deepen the operational sophistication of HCD. Estimated annual EBITDA Synergies for overseas business after generated by TH the integration with TH Since the completion of the transaction, both parties have ac
Slide 24: Overseas business plans for the next three years
Overseas business plans for the next three years • Looking forward, the company plans to increase input in overseas markets and drive further growth in overseas revenue in the next three years. Oversea business asset Oversea business revenue management scale planning scale projection (RMB'00 million
Slide 25: Interim Financials Review
Contents 1 Interim Business Review 2 Interim Financials Review 25
Slide 26: Revenue performance
Revenue performance • In the first half of 2025, the company recorded a revenue of approximately RMB4.35 billion, with a year- on-year decrease of approximately 11%. • In the respect of revenue by region, the proportion of overseas revenue has increased to approx. 14%. • In the respect of revenue by
Slide 27: Revenue by region
Revenue by region • In the first half of 2025, the revenue of our China's business showed decrease, while the overseas business’s revenue maintained robust growth and reached approx. RMB600 million. Revenue of mainland China & Hong Kong’s Revenue of overseas business business (RMB’00 million) (RMB’0
Slide 28: Revenue by business segment – operating lease services
Revenue by business segment – operating lease services • Affected by market conditions, the rental prices in the mainland China’s market continued the downward trend in the first half of the year, while the utilization rate of AWPs slightly decreased year-on-year and neo-formwork system saw a notabl
Slide 29: Revenue by business segment – engineering and technical services
Revenue by business segment – engineering and technical services • The company has implemented a proactive scaling-back strategy for its material-related businesses in mainland China, combined with moderate disposals of material asset conducted since the second half of 2024, leading to a year-on-yea
Slide 30: Revenue by business segment – asset management and other services
Revenue by business segment – asset management and other services • The company’s asset management services contributed approx. RMB660 million of revenue, with a year-on-year decrease of approx. 11%, primarily due to the prudent reduction in the management scale of equipment entrusted by peers in re
Slide 31: Gross profit
Gross profit • Due to the aforementioned domestic market environment, the company proactively reduced the scale of its domestic business. Coupled with the seasonal factors of returning to work during the Spring Festival, the gross profit in the first half of the year was at a relatively low base, re
Slide 32: Profitability
Profitability • In the first half of 2025, EBITDA fell by 2% year-on-year and net profit fell by 87% year-on-year. • The discrepancy between the declines in net profit and EBITDA was primarily due to increased depreciation expenses and financial interest costs during the period. However, with no cor
Slide 33: Profitability of overseas business
Profitability of overseas business • In the first half of 2025, the net profit of overseas business recorded approx. RMB110 million with approx. 19% of net margin. Net profit & net margin of overseas business Foreign exchange impact to net profit of (RMB’00 million, incl. foreign exchange impact) ov
Slide 34: Clientele structure
Clientele structure • The company has built a well-diversified client portfolio, with its equipment serving a wide spectrum of industry scenarios. The overseas businesses are strategically distributed across multiple regions, ensuring a balanced and low-concentration client mix globally, thereby min
Slide 35: Funding status
Funding status • The funding structure has kept optimized with abundant credit resources. In the first half of 2025, the number of collaborative institutions increased to 102, among which there were 17 overseas bank; the average financing duration maintained stable, and the interest rate of loan new
Slide 36: Free cash flow performance
Free cash flow performance • The company‘s operating cash flow increased year-on-year, and the capital expenditure decreased year- on-year. Therefore, the free cash flow improved year-on-year. Operating cash flow CAPEX Free cash flow1 (RMB'00 million) (RMB'00 million) (RMB'00 million) 17.8 43.7 9.6
Slide 37: Capital structure
Capital structure • During the reporting period, the company's leverage ratio and net interest-bearing debt-to-EBITDA ratio slightly increased, but both remained within the target control range, with ample cash and cash equivalents. Net interest-bearing debt- Cash and cash equivalents to-EBITDA rati
Slide 38: Appendix: Condensed Balance Sheet
Appendix: Condensed Balance Sheet (RMB'00 million) 30 Jun 2025 31 Dec 2024 Change Total assets 366 364 +0.4% Equipment and material for leasing and services 211 216 -2.4% Trade receivables and contract assets 68 66 +2.8% Total liabilities 253 250 +1.1% Total equity 113 115 -1.1% Equity attributable
Slide 39: Appendix: Condensed Income Statement
Appendix: Condensed Income Statement (RMB'00 million) 2025H1 2024H1 Change Revenue 43.5 48.7 -10.7% EBITDA 19.7 20.0 -1.7% Net profit 0.4 2.7 -86.8% EPS (RMB/share) 0.011 0.084 -86.9% ROA 0.2% 1.6% -1.4pct ROE 0.6% 4.9% -4.3pct 39
Slide 40: Appendix: Condensed Cash Flow Statement
Appendix: Condensed Cash Flow Statement (RMB'00 million) 2025H1 2024H1 Change Net change in cash and cash equivalents 4.3 -2.2 N/A Net cash flows from operating activities 17.8 13.5 +32% Net cash flows from investing activities -8.6 -31.1 +72% Net cash flows from financing activities -5.2 15.4 N/A E
Slide 41: Q&A
COHORIZON Q&A
Slide 42: Contact us
Contact us Website: www.hongxinjianfa.com IR Email: hcd-ir@fehorizon.com 42
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