Contiocean Environment Tech Group (2613) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB143.5 million, down 57.4% year-over-year; profit for the period was RMB6.1 million, down 92.6% year-over-year.

• Gross profit margin declined to 31.0% from 42.4% in H1 2024 due to higher costs, increased competition, and a shift in revenue mix.

• No interim dividend was declared for the period.

• Significant increase in order backlog to RMB861.7 million as of June 30, 2025, up 47.8% from December 31, 2024.

Financial highlights

• Revenue: RMB143.5 million (H1 2024: RMB336.5 million), -57.4% year-over-year.

• Gross profit: RMB44.4 million (H1 2024: RMB142.8 million), -68.9% year-over-year.

• Profit attributable to owners: RMB6.9 million (H1 2024: RMB82.5 million), -91.6% year-over-year.

• Basic EPS: RMB0.18 (H1 2024: RMB2.75), -93.5% year-over-year.

• Cash and cash equivalents increased to RMB296.7 million, mainly from H share listing and bank borrowings.

Outlook and guidance

• Order backlog reached RMB861.7 million, up 47.8% from year-end 2024, indicating strong future revenue potential.

• Long-cycle newbuilding orders dominate, with revenue recognition expected post-2025.

• Focus on regulation-driven markets and ESG solutions to drive future growth.

• Continued R&D investment and market expansion planned, leveraging regulatory trends and capital from recent listing.