China Everbright Environment Group (257) H2 2025 earnings summary

Executive summary

• Revenue for 2025 was HK$27.52 billion, down 9% year-over-year, mainly due to a drop in construction service revenue from fewer new projects.

• EBITDA rose 2% to HK$10.27 billion, and profit attributable to equity holders increased 16% to HK$3.93 billion, driven by reduced finance costs and lower impairment losses.

• Gross profit declined 4% to HK$11.09 billion, while gross margin improved by 2.2 percentage points to 40.3%.

• Basic earnings per share grew 16% to 63.90 HK cents, and total annual dividend per share increased to 27.0 HK cents.

• The group advanced technology, internationalisation, and ecosystem strategies, expanding into Central Asia and Southeast Asia and launching new projects in China and abroad.

Financial highlights

• Total assets grew 2% to HK$189.14 billion, while equity attributable to equity holders rose 8% to HK$52.22 billion.

• Cash and bank balance increased 31% to HK$10.52 billion.

• Gearing ratio improved by 2 percentage points to 62%.

• Net asset value per share reached HK$8.501, up 8% year-over-year.

• Dividend payout ratio edged up to 42.3%.

Outlook and guidance

• Strategic focus on building a world-class environmental enterprise with Chinese characteristics by 2030, consolidating industry leadership by 2035.

• Emphasis on technology, internationalisation, and industrial ecosystem as core strategies.

• Plans to expand in core regions and Belt and Road markets, with a focus on solid waste, water, and clean energy.

• Continued expansion in Central Asia and Southeast Asia, and further development of zero-carbon parks and virtual power plants.

• Plans to deepen risk control, enhance receivables collection, and maintain safe production.