Yunnan Water Investment Company (6839) investor relations material

Executive summary

• Revenue for the six months ended 30 June 2025 was RMB1,157.6 million, down 6.8% year-over-year.

• Net loss widened to RMB1,047.5 million from RMB923.9 million in the prior year period, mainly due to lower operating income, increased impairment provisions, and long-term asset write-downs.

• Loss attributable to ordinary shareholders was RMB875.4 million (RMB0.734 per share), up from RMB743.1 million (RMB0.623 per share) year-over-year.

• No interim dividend was declared for the period.

• The company continues to focus on high-quality transformation, debt risk mitigation, and operational efficiency, with a five-pronged strategy for the second half of 2025.

Financial highlights

• Revenue decreased to RMB1,157.6 million from RMB1,242.5 million year-over-year.

• Gross profit fell 26.2% year-over-year to RMB148.5 million, with gross margin declining to 12.8% from 16.2%.

• Administrative expenses more than doubled to RMB454.8 million, mainly due to long-term asset impairment.

• EBITDA was negative RMB104.7 million, compared to positive RMB159.7 million in the prior year period.

• Net finance costs decreased 22.1% to RMB480.2 million, aided by a perpetual bond agreement.

Outlook and guidance

• The company will focus on debt risk mitigation, revenue growth, cost control, asset revitalization, and accelerating project advancement in the second half of 2025.

• Emphasis on cash flow management, operational efficiency, and high-quality transformation.

• Plans include maximizing revenue channels, optimizing costs, and expediting the restructuring and disposal of low-efficiency assets.