Beijing Enterprises Water Group (371) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 was RMB10,458.9 million, down 8% year-over-year, mainly due to lower construction services revenue from BOT water projects.

• Net profit attributable to shareholders was RMB897.1 million, a 20% decrease compared to the same period last year, impacted by a RMB258.9 million impairment provision.

• EBITDA decreased 16% to RMB3,924.5 million; basic and diluted EPS were RMB8.40 cents.

• The Group prioritized cash flow, asset quality, and operational efficiency, focusing on transitioning to an asset-light model and technological innovation.

• An interim dividend of HK7.35 cents per share was declared, a 5% increase from last period, payable in HKD or RMB.

Financial highlights

• Gross profit margin increased to 40% from 38% year-over-year, driven by a higher proportion of water treatment services.

• Cost of sales decreased to RMB6,280.2 million from RMB7,015.3 million, reflecting lower construction activity.

• Administrative expenses fell 8% to RMB1,156.5 million, indicating effective cost control.

• Finance costs dropped to RMB958.0 million due to debt structure optimization.

• Cash and cash equivalents stood at RMB8,648.1 million; total borrowings at RMB75,203.4 million.

Outlook and guidance

• The Group will continue to emphasize cash flow resilience, quality improvement, and efficiency as it enters the 15th Five-Year Plan period.

• Technological innovation, digital transformation, and asset-light strategies will be central to future growth.

• Continued rollout of smart water management and AI-driven operational upgrades.