Grandblue Environment (600323) H1 2024 earnings summary

Executive summary

• Net profit attributable to shareholders rose 28.59% year-over-year to ¥887 million, despite a 1.74% decline in revenue to ¥5.82 billion for H1 2024.

• Cash flow from operating activities surged 249.67% year-over-year to ¥941 million, driven by improved collections in solid waste and drainage businesses.

• The company maintained high operational efficiency and continued to implement cost reduction and efficiency improvement measures.

• Announced a major asset acquisition plan to privatize Hong Kong-listed Canvest Environmental Protection, aiming to expand asset scale and profitability.

Financial highlights

• Revenue for H1 2024 was ¥5.82 billion, down 1.74% year-over-year; main business revenue was ¥5.69 billion, down 1.70%.

• Net profit attributable to shareholders was ¥887 million, up 28.59% year-over-year; EPS was ¥1.09, up 28.24%.

• Net profit excluding non-recurring items was ¥871 million, up 30.04% year-over-year.

• Operating cash flow reached ¥941 million, up 249.67% year-over-year.

• Total assets at June 30, 2024, were ¥37.10 billion, up 3.62% from year-end 2023.

Outlook and guidance

• Capital expenditure is expected to decline for the full year 2024 as ongoing projects complete and fewer new projects commence.

• Energy business is expected to maintain normal profitability in 2024, supported by diversified gas sourcing and improved price mechanisms.

• The company will continue to pursue international expansion and green asset management opportunities.