Beijing Enterprises (392) H2 2024 earnings summary

Executive summary

• Revenue reached RMB 84.064 billion in 2024, up 2.1% year-over-year; recurring profit attributable to shareholders rose 5.0% to RMB 5.123 billion, excluding one-off items from 2023.

• Dividend per share increased to HKD 1.62, with a payout ratio of 36.2%; a final dividend of HK$0.77 per share is proposed, up 1.25%.

• Major business units achieved operational milestones: LNG processing exceeded 1 million tons, BE Water maintained positive free cash flow for three years, and Yanjing Brewery's net profit surpassed RMB 1 billion for the first time.

• Debt structure optimization continued with over RMB 10 billion in Panda Bonds issued at market-low rates, reducing head office finance costs by over RMB 300 million.

• ESG rating upgraded to A by MSCI, included in Hang Seng SCHK SOEs High Dividend Yield ESG Index, and received multiple industry awards.

Financial highlights

• Gross profit margin improved to 13.59% from 13.03% last year.

• Finance costs decreased by 5.4% to RMB 2.501 billion.

• Operating cash flow and liquidity remained strong, with cash and bank deposits at RMB 30.96 billion.

• Gearing ratio held steady at 45%.

• EBITDA for EEW GmbH reached a new high, driven by operational efficiency and favorable electricity prices.

Outlook and guidance

• Plans to deepen urbanization, focus on core businesses, and pursue "limited diversification" through M&A and business extensions.

• Beijing Gas aims to expand processing volume and optimize sales efficiency, leveraging technology and value-added services.

• Environmental segment to drive asset quality, innovation, and overseas expansion, especially in Europe.

• Beer business to enhance management, product innovation, and digital transformation, targeting high-end market growth.

• Water business to prioritize cash flow management and operational upgrades.