Dynagreen Environmental Protection Group (1330) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was RMB3.40 billion, down 14.08% year-over-year, mainly due to fewer projects under construction and lower construction revenue.

• Net profit attributable to shareholders was RMB585 million, a 7.02% decrease compared to 2023.

• Gross profit margin improved to 45.44% from 38.52% last year, driven by a higher proportion of operating income.

• The company maintained a strong operational focus, with waste treatment capacity exceeding 40,000 tons/day and record highs in waste treated, on-grid electricity, and steam supplied.

• Interim and final cash dividends totaling RMB0.3 per share were proposed/distributed, with a payout ratio of 71.45% of net profit.

Financial highlights

• Revenue: RMB3,398.6 million (down 14.08% YoY).

• Net profit attributable to shareholders: RMB585.1 million (down 7.02% YoY).

• Net cash flows from operating activities: RMB1,438.5 million (up 47.13% YoY).

• Gross profit: RMB1,544.2 million (up 6.92% YoY); gross margin: 45.44%.

• Basic EPS: RMB0.42; diluted EPS: RMB0.41.

• Net assets attributable to shareholders: RMB8,052.8 million.

• Gearing ratio: 61.21% (down from 63.29% in 2023).

Outlook and guidance

• The company will focus on quality improvement, cost reduction, and efficiency enhancement in 2025, the final year of the 14th Five-Year Plan.

• Plans to expand non-electric business (heating, steam), participate in Green Certificate trading, and pursue M&A opportunities.

• Emphasis on digital transformation, technological innovation, and strengthening market value management.