Grandblue Environment (600323) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was RMB 2.60 billion, down 4.24% year-over-year, while net profit attributable to shareholders rose 10.26% to RMB 420 million.

• EBITDA reached RMB 955 million with a margin of 36.74%.

• Cash flow from operations increased 74.54% year-over-year to RMB 596 million, driven by improved receivables collection.

• Total assets grew 3.22% from year-end 2024 to RMB 40.57 billion; asset-liability ratio decreased by 1.85 percentage points to 59.43%.

Financial highlights

• Revenue fell mainly due to a decline in PPP project income and sanitation business optimization; excluding these, other operating income increased by RMB 39 million.

• Net profit growth was supported by higher heat supply, improved gross margin, and lower management and financial expenses.

• Basic and diluted EPS were RMB 0.52, up 10.64% year-over-year.

• Net cash from operations improved due to better receivables collection and increased cash from sales and services.

Outlook and guidance

• Capital expenditure is expected to decline in 2025 as ongoing projects complete and fewer new projects start.

• The company aims to recover at least RMB 2 billion in outstanding receivables in 2025 with government support.

• Energy business is expected to maintain normal profitability for the year.