- MiC Modular Transformation Delivers Visible Results
- Seizing Two Structural Opportunities: Hong Kong's Northern Metropolis and Mainland Urban Renewal
HONG KONG, Aug 25, 2026 - (ACN Newswire) - China State Construction International Holdings Limited ('China State Construction International' or the 'Group', stock code: 03311) has announced its 2026 interim results, recording net profit of RMB4,330 million for the first half of the year and a dividend payout ratio of 35.4%. Notably, the Group's cash flow performance was particularly strong, with net operating cash flow reaching RMB3,796 million in the first half, while its cash-to-net-profit ratio stood at 87.7%, a near 15-year high. Across its business segments, the Group achieved robust growth, with its MiC (Modular Integrated Construction) business successfully securing a number of landmark projects, reflecting the strategic outcome of the Group's steadfast efforts over the years to transform its business from traditional on-site construction towards new industrialised construction. Technology empowerment has evolved from a standalone technical advantage into a core competitive strength and a key driver of the Group's long-term value creation.
As one of the earliest companies in the Chinese Mainland to embrace construction industrialisation, the Group has reshaped the traditional construction model through its self-developed 'Smart Construction - MiC technology'. By shifting from the construction site to the factory, and converting sequential processes into parallel workflows, the Group has effectively shortened construction periods, strengthened cost control, and reduced reliance on on-site labour and weather conditions. This transformation has become a core foundation for the Group to navigate industry cycles and drive improvement in its operating performance.
Hong Kong: Serving Community Needs through MiC, with Landmark Projects Progressing One after Another
China State Construction International's technological practices are closely aligned with the policy direction of the Hong Kong SAR Government. Since 2017, MiC has been included in the Policy Address for eight consecutive years, while the Government has promoted new construction methods through measures such as gross floor area and building height concessions, as well as the Construction Innovation and Technology Fund. These initiatives have provided the Group with clear policy support and market opportunities. During the period, the Group secured a number of landmark projects, including the Kwu Tung North Joint User Complex, the first government facilities cluster in the Northern Metropolis, and the University of Macau campus project in the Hengqin Guangdong-Macao Intensive Cooperation Zone (North District). The Group's Temple Street project has also topped out successfully. As Hong Kong's first full-MiC private residential project, it achieved a pace of 'one floor every three days' despite stringent road traffic restrictions. The Kai Tak Light Public Housing project, Hong Kong's largest light public housing development, was delivered ahead of schedule, with 70% of the construction processes completed in factories in the Greater Bay Area. It achieved the installation of one module every 30 minutes and the completion of one floor every three days, substantially shortening waiting time and demonstrating the strategic positioning of 'what Hong Kong needs, what the Group excels at'. The project also received a Completion Commendation Letter from the Architectural Services Department.
The strategic value of the Group's technology was demonstrated as early as during the pandemic. In 2020, the Group completed the North Lantau Hospital Hong Kong Infection Control Centre, the world's first infectious disease hospital with full-MiC negative-pressure isolation wards, in just four months. This showcased the application value of MiC in major public emergencies, deepened recognition from the Government and the market of the Group's construction capabilities and emergency-response capacity, and laid a strong reputational foundation for undertaking large-scale public infrastructure projects.
Looking ahead, the Northern Metropolis is expected to become a new growth engine for the Group. The latest Budget proposed the first transfer of HK$150 billion in investment returns from the Exchange Fund to support infrastructure including the Northern Metropolis, while annual capital works expenditure is expected to increase from approximately HK$90 billion to around HK$120 billion over the next five years. Covering site formation, transport, public facilities and public housing, the Northern Metropolis is expected to involve total investment of more than HK$3 trillion, presenting considerable development potential. MiC modular construction can shorten construction periods by approximately 70%, aligning well with the Northern Metropolis' need for rapid development. Together with Budget support for the direct procurement of Modular Integrated Construction units, this is expected to further unlock market demand. The Group has established 12 smart housing manufacturing bases nationwide and assembled a team of more than 300 design and R&D professionals, giving it advantages in scaled technology and production capacity. According to forecasts by the Development Bureau and the Construction Industry Council, the total MiC floor area in Hong Kong is expected to reach approximately 2.5 million square metres between 2025 and 2030, indicating substantial market opportunities.
Chinese Mainland: Urban Renewal Opens a New Growth Driver as MiC Expands across Multiple Cities
In May 2026, the State Council issued the 15th Five-Year Plan for Urban Renewal, the first national-level special plan for China's urban renewal sector. Market estimates that urban renewal could drive investment of RMB15 trillion to RMB20 trillion during the period. Leveraging its MiC technology, the Group has developed benchmark redevelopment projects such as Huapichang Hutong in Beijing and Tianlin Road in Xuhui, Shanghai, achieving first-mover presence in first-tier cities. Going forward, the Group will replicate and scale mature models through its full-chain capabilities in 'operation + technology + investment + construction', positioning urban renewal as a core growth driver for its Chinese Mainland business.
During the period, the Group's newly signed MiC contracts in the Chinese Mainland increased by more than 70%, with progress across multiple first-tier cities and orderly expansion into strong second-tier cities. In Beijing, the Group has secured four rapid classroom construction projects in Fengtai District. In Guangzhou, the Group won its first MiC resettlement housing project in Conghua District. In Shanghai and Suzhou, the country's largest concrete MiC urban renewal project - the demolition and reconstruction of old housing at Lane 65, Tianlin Road, Xuhui District ' was officially delivered and well received by various stakeholders. The Group successively secured Shanghai's second and Hongkou District's first MiC in-situ redevelopment projects, and successfully won Suzhou's first MiC project under an 'investment + technology' model, further deepening its market presence.
The positive results of the Group's MiC modular transformation are becoming increasingly evident. Looking ahead, the Group will continue to seize the structural opportunities presented by Hong Kong's Northern Metropolis and the urban renewal market in the Chinese Mainland, further harness technology, reinforce its industry leadership, pursue high-quality growth and create sustainable, long-term value for shareholders.
Source: China State Construction International Holdings Limited
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