Beijing Enterprises Water Group (371) H2 2024 earnings summary

Executive summary

• Profit attributable to shareholders fell 11.5% year-over-year to RMB1,677.6 million, with revenue down 1% to RMB24,270.5 million, mainly due to lower construction services revenue from BOT water projects.

• EBITDA decreased 4.5% to RMB8,525.3 million; basic and diluted EPS were RMB15.63 cents.

• Final dividend of HK9.1 cents per share proposed, with full-year dividend at HK16.1 cents.

• Maintained top ranking in China's water industry and included in S&P Global Sustainability Yearbook (China) 2024.

• Achieved positive free cash flow for three consecutive years and continued digital transformation and operational efficiency improvements.

Financial highlights

• Revenue declined 1% year-over-year to RMB24,270.5 million; gross profit margin remained at 37%.

• Profit attributable to shareholders dropped 12% to RMB1,677.6 million; EBITDA down 4.5%.

• Cost of sales decreased to RMB15,281.4 million, mainly due to lower construction costs.

• Administrative expenses reduced by 7% to RMB3,070.5 million.

• Finance costs decreased to RMB3,090.4 million, reflecting lower average interest rates.

• Cash and cash equivalents at year-end were RMB9,009.0 million.

Outlook and guidance

• Focus on sustainable development, digital transformation, and asset-light business models.

• Plans to prioritize cash flow, improve quality and efficiency, and maintain strategic confidence as the 14th Five-Year Plan concludes.