China Everbright Water (U9E) H1 2025 earnings summary

Executive summary

• H1 2025 revenue fell 2% YoY to HK$3,279.57m; gross profit rose 8% to HK$1,369.24m and gross margin expanded 4 ppt to 42%.

• EBITDA was nearly flat at HK$1,194.12m; attributable profit declined 3% to HK$563.76m.

• Operating cash flow turned positive at HK$131.71m; the portfolio comprised 183 projects with 7.619m m³/day of designed treatment or supply capacity.

Financial highlights

• Revenue was HK$3,279.57m; construction service revenue fell 14% to HK$1,164.18m, while operation income rose 13% to HK$1,476.89m.

• Gross profit rose to HK$1,369.24m; profit before tax increased 2% to HK$832.21m, while profit for the period edged down 0.4% to HK$625.32m.

• Service-concession finance income was HK$558.81m; machinery sales and technical service income fell 39% to HK$79.7m.

• Net finance costs fell to HK$248.80m from HK$269.15m, as lower average lending rates more than offset higher average borrowings.

• Operating cash flow was HK$131.71m versus an outflow of HK$422.26m YoY; trade and other receivables and contract assets increased.

Outlook and guidance

• Priorities include sustainable scale growth, efficiency, expansion, cost reduction, receivables collection, compliance, risk control and organisational optimisation.

• Strategy targets a shift from traditional water services toward technology-driven environmental services, with asset-light services and overseas growth.

• Planned execution includes digital and intelligent operations, improved asset utilisation, and further industrial wastewater and reusable-water opportunities.