Dynagreen Environmental Protection Group (1330) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB1.88 billion, up 11.45% year-over-year; net profit attributable to shareholders was RMB465 million, up 23.16% year-over-year.

• Waste treatment volume rose 7.07% to 7.66 million tons; on-grid electricity increased 6.96% to 2.26 billion kWh; steam supply surged 28.85% to 664,200 tons.

• Xinmi Company acquisition completed; project portfolio expanded to 38 operational waste-to-energy projects across 20 regions.

• Technological innovation and digital transformation advanced, with new digital management systems and pilot AI-driven waste management projects.

Financial highlights

• Gross profit increased 12.39% to RMB937 million, with gross margin at 49.95%.

• Basic EPS: RMB0.33 (up 22.22%); diluted EPS: RMB0.30 (up 15.38%).

• Net assets attributable to shareholders: RMB8.45 billion; total assets: RMB22.30 billion as of June 30, 2026.

• Net cash flows from operating activities: RMB705 million, up 11.57% year-over-year.

• Finance costs decreased 11.45% due to lower borrowing balances and interest rates.

Outlook and guidance

• Industry faces narrowing market growth, phase-out of national subsidies, and extended receivable cycles.

• Policy support for Green Certificate trading and direct green power supply expected to partially offset subsidy reductions.

• Focus for H2 2026: technical breakthroughs in digital/intelligent incineration, risk management, and overseas expansion, especially Belt and Road countries.

• Collection of accounts receivable and risk management will be strengthened.