CD International Investment Group Limited (1908.HK) posted QQ2 2025 results with a material year-over-year revenue decline but continued positive earnings and cash generation. Revenue reached 17,082,331,999 CNY, down 38.01% from the prior-year period, while gross profit was 2,201,137,000 CNY for a gross margin of 12.89%. Operating income stood at 1,013,973,499 CNY and net income at 456,874,000 CNY, translating to earnings per share (EPS) of 0.24 (diluted 0.23). Despite the topline softness, the company generated meaningful operating cash flow, with operating cash flow per share and free cash flow per share both reported at 5.95 CNY and a cash per share position of 29.09 CNY. The QQ2 2025 results reflect ongoing sector headwinds in Mainland China’s real estate market and project timing lags, yet the company maintains a defensible liquidity position and a high dividend yield that provides an attractive income component for investors.
Liquidity and balance sheet metrics indicate conservative leverage with a debt-to-capitalization of approximately 0.707 and a current ratio of 1.57, underscoring a functional if modest liquidity buffer. Notably, inventory days outstanding are extremely elevated (about 805 days), signaling a long project cycle typical of property developers and suggesting potential for backlog conversion as projects advance. The net margin remains modest at roughly 2.67%, reflecting the real estate development mix and cost structure in QQ2 2025. Going forward, upside potential hinges on a stabilizing China property market, effective project execution, and prudent capital allocation, complemented by a robust dividend policy given the stock’s elevated dividend yield (~7.6%).