Contiocean Environment Tech Group (2613) H2 2025 earnings summary

Executive summary

• Revenue declined 37.6% year-over-year to RMB383.2 million, with net profit dropping 96.5% to RMB4.2 million due to lower sales in key segments and increased competition.

• Gross profit margin fell from 40.0% to 30.8% as market competition drove down selling prices.

• No final dividend was declared for 2025, compared to RMB1.5 per share in 2024.

• The company completed its H-share listing on the Hong Kong Stock Exchange in January 2025, incurring one-off listing expenses.

Financial highlights

• Revenue: RMB383.2 million (down 37.6% year-over-year).

• Net profit: RMB4.2 million (down 96.5% year-over-year).

• Gross profit: RMB118.0 million (down 52.0% year-over-year); gross margin: 30.8%.

• Basic EPS: RMB0.14 (2024: RMB4.03).

• Cash and cash equivalents increased to RMB215.4 million, mainly from H-share issuance.

• Bank borrowings rose to RMB151.5 million from RMB41.9 million.

Outlook and guidance

• Focus on core business, R&D, and ESG initiatives to drive high-quality growth in 2026.

• Plans to leverage IMO regulations and environmental trends for future revenue growth.

• Order backlog increased in marine exhaust gas cleaning systems and energy-saving devices, indicating potential revenue recovery.