Beijing Enterprises (392) investor relations material

Executive summary

• Revenue reached RMB 87.228 billion in 2025, up 3.8% year-over-year, with gross profit of RMB 11.927 billion, up 4.4%.

• Net profit attributable to shareholders was RMB 5.056 billion; basic/diluted EPS RMB 4.02; dividend per share HK$1.62, payout ratio 37.1%.

• All core business segments—gas, water, environment, and beer—delivered stable or improved operational performance despite macroeconomic challenges.

• Focused on cost reduction, efficiency, cash flow management, and asset structure optimization, with notable progress in digitalization, AI adoption, and ESG initiatives.

• Received multiple awards for ESG, sustainability, and scientific research excellence.

Financial highlights

• Operating and free cash flow improved significantly, with free cash flow covering financial costs and dividends; cash and bank deposits totaled RMB 31.268 billion at year-end.

• Financial expenses reduced by nearly RMB 200 million year-over-year through proactive debt management, hedging, and low-cost financing.

• Headquarters debt and financial expenses continued to decline, with financial expenses down 14.6% over two years; finance costs decreased by 12.6% to RMB 2.186 billion.

• Net borrowings stood at RMB 47.679 billion, down 0.6% from last year; gearing ratio improved to 43%.

• Segmental capital expenditure for 2026: gas RMB 2.5 billion, beer RMB 1 billion, environment (domestic and overseas) RMB 2 billion; total RMB 5.5 billion, down from RMB 6 billion.

Outlook and guidance

• Strategic focus on core businesses: natural gas, water, environment, and beer, with emphasis on green and low-carbon development.

• Plans to optimize business structure, enhance operational efficiency, and invest in emerging industries over the next five years.

• Dividend policy expected to remain stable and improve over the next three years.

• Cautious approach to M&A and asset restructuring, prioritizing core business and high-quality opportunities.

• Emphasis on digital transformation, AI, and green energy investments for future growth.