Grandblue Environment (600323) H2 2024 earnings summary

Executive summary

• 2024 revenue reached ¥11.89 billion, down 5.22% year-over-year, while net profit attributable to shareholders rose 16.39% to ¥1.66 billion.

• Cash flow from operations increased 31.85% to ¥3.27 billion, driven by improved receivables collection.

• Major asset restructuring initiated: privatization of a Hong Kong-listed company, expected to complete in 2025, will boost waste treatment scale to top three in China.

• Dividend payout plan: ¥8 per 10 shares, a 66.67% increase, with cash dividends accounting for 39.2% of 2024 net profit.

Financial highlights

• Operating income: ¥11.89 billion, down 5.22% year-over-year.

• Net profit attributable to shareholders: ¥1.66 billion, up 16.39% year-over-year.

• EBITDA: ¥3.77 billion, EBITDA margin 31.74%.

• Total assets: ¥39.31 billion, up 9.80% from previous year.

• Free cash flow: ¥1.36 billion, up 723.81% year-over-year.

Outlook and guidance

• 2025 revenue target set at ¥11.1 billion, with asset base of ¥38.9 billion; if privatization completes, revenue could reach ¥13.1 billion and assets ¥64 billion.

• Capital expenditure expected to decline further in 2025 as project completions outpace new starts.

• Focus on core waste treatment, water, and energy, with continued cost control, digitalization, and M&A.