Beijing Enterprises Water Group (371) investor relations material

Executive summary

• Revenue for H1 2026 was RMB9,871.3 million, down 6% year-over-year, mainly due to lower contributions from technical services, machinery sales, and BOT water project construction services.

• Profit attributable to shareholders fell 23% year-over-year to RMB688.0 million, with basic EPS at RMB6.43 cents.

• Interim dividend of HK5.54 cents per share declared, down from HK7.35 cents last year, payable in HKD or RMB.

• The group maintained steady business development, securing new daily design capacity of 244,138 tons and total daily design capacity of 42,566,261 tons.

• Maintained top industry ranking and continued digital transformation, focusing on AI-driven operations and cost control.

Financial highlights

• Gross profit margin remained stable at 40%.

• Cost of sales decreased to RMB5,956.7 million, mainly due to lower technical and consultancy service costs.

• Finance costs decreased by 7.5% to RMB1,102.5 million, reflecting effective cost control.

• Cash and cash equivalents at period end were RMB8,111.9 million, down from RMB9,567.5 million at year-end 2025.

• Gearing ratio increased slightly to 1.20 from 1.18 at year-end 2025.

Outlook and guidance

• The group will continue its asset-light transformation, focus on cash flow, and pursue high-quality, sustainable growth under the 15th Five-Year Plan.

• Emphasis on technological and digital innovation, green supply chain, and risk management to drive future performance.