Baoye Group Profit Falls on Lower Revenue and Investment Impairments in 2025

The latest update is out from Baoye Group Co., Ltd. Class H ( (HK:2355) ).

Baoye Group reported a decline in full-year 2025 revenue to RMB19.95 billion from RMB22.34 billion, with gross profit falling to RMB1.48 billion amid weaker top-line performance and higher other net losses. Net profit attributable to shareholders dropped to RMB289.64 million, and earnings per share slid to RMB0.56, reflecting lower operating profit, impairment charges on equity-method investments, and reduced contribution from associates, which may signal pressure on profitability and returns for investors.

Despite the revenue contraction, the group improved its cost discipline, as seen in lower administrative expenses and a reversal of impairment on financial and contract assets, partially cushioning the profit decline. However, increased other net losses, higher finance costs, and a new impairment on equity-accounted investments weighed on results, suggesting a more challenging operating environment for the construction sector and potential headwinds to future earnings stability.

The most recent analyst rating on (HK:2355) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Baoye Group Co., Ltd. Class H stock, see the HK:2355 Stock Forecast page.

More about Baoye Group Co., Ltd. Class H

Baoye Group Company Limited is a construction and engineering group listed in Hong Kong, operating through various subsidiaries. The company generates revenue primarily from construction contracts and related services across mainland China, positioning itself as a large-scale player in the domestic building and infrastructure market.

Average Trading Volume: 104,091

Technical Sentiment Signal: Sell

Current Market Cap: HK$2.07B

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