Executive Summary
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%).
Key Performance Indicators
QoQ: 100.00% | YoY:-38.01%
QoQ: 100.00% | YoY:-41.57%
QoQ: 100.00% | YoY:-52.94%
QoQ: 100.00% | YoY:-54.16%
QoQ: 100.00% | YoY:-36.84%
Key Insights
Revenue: 17,082,331,999 CNY; YoY change: -38.01%; QoQ change: 100.00%
Gross Profit: 2,201,137,000 CNY; Gross Margin: 12.89%; YoY: -41.57%; QoQ: 100.00%
Operating Income: 1,013,973,499 CNY; Operating Margin: 5.94%; YoY: -52.94%; QoQ: 100.00%
Net Income: 456,874,000 CNY; Net Margin: 2.67%; YoY: -54.16%; QoQ: 100.00%
EPS: 0.24 CNY (diluted 0.23 CNY); YoY: -36.84%; QoQ: 100.00%
EBITDA: 1,020,718,500 CNY; EBITDA Margin: ~5.98%; EBITDARatio: 0.0598
Dividend Yield: 7.56%; Dividend Payout Ratio: 2.42
Li...
Financial Highlights
Revenue: 17,082,331,999 CNY; YoY change: -38.01%; QoQ change: 100.00%
Gross Profit: 2,201,137,000 CNY; Gross Margin: 12.89%; YoY: -41.57%; QoQ: 100.00%
Operating Income: 1,013,973,499 CNY; Operating Margin: 5.94%; YoY: -52.94%; QoQ: 100.00%
Net Income: 456,874,000 CNY; Net Margin: 2.67%; YoY: -54.16%; QoQ: 100.00%
EPS: 0.24 CNY (diluted 0.23 CNY); YoY: -36.84%; QoQ: 100.00%
EBITDA: 1,020,718,500 CNY; EBITDA Margin: ~5.98%; EBITDARatio: 0.0598
Dividend Yield: 7.56%; Dividend Payout Ratio: 2.42
Liquidity: Current Ratio 1.57; Quick Ratio 0.54; Cash Ratio 0.22
Efficiency: Receivables Turnover 10.05x; Inventory Turnover 0.112x; DSO 8.95 days; DIO 804.96 days; Payables Turnover 0.964x; CFO per share 5.95; FCF per share 5.95; Cash per share 29.09
Leverage: Debt Ratio 0.209; Debt to Equity 2.41; Long-Term Debt to Capitalization 0.670; Total Debt to Capitalization 0.707
Valuation (as of QQ2 2025): P/B 0.761; P/S 0.857; P/E 8.01; Price to FCFF 2.43; Dividend Yield 7.56%
Note: All metrics denominated in CNY (reported currency) in QQ2 2025.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
17.08B |
-38.01% |
100.00% |
| Gross Profit |
2.20B |
-41.57% |
100.00% |
| Operating Income |
1.01B |
-52.94% |
100.00% |
| Net Income |
456.87M |
-54.16% |
100.00% |
| EPS |
0.24 |
-36.84% |
100.00% |
Key Financial Ratios
operatingProfitMargin
5.94%
operatingCashFlowPerShare
$5.95
freeCashFlowPerShare
$5.95
Management Commentary
No earnings call transcript quotes were provided in the data set. Consequently, this section relies on the QQ2 2025 results release rather than direct management quotes. Management commentary, when available, is typically expected to address project backlog progression, land bank strategy, capital allocation decisions, and debt management implications for liquidity and financial flexibility.
Forward Guidance
No explicit forward guidance was included in the QQ2 2025 materials. Given the macro backdrop of the Chinese real estate market, management commentary (where disclosed) would likely focus on project execution timelines, land bank deployment, and funding strategies. Industry dynamics suggest potential stabilization risks and opportunities tied to policy support and easing financing conditions. Investors should monitor: (1) project backlog progression and completion timing, (2) land bank acquisition activity and funding terms, (3) changes in leverage structure and debt maturity profile, and (4) any announced targets for revenue backlog, gross margin improvement, or capex discipline.