Grandblue Environment (600323) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of 2025 reached ¥9.74 billion, up 11.52% year-over-year, with net profit attributable to shareholders at ¥1.60 billion, up 15.85%.

• Major acquisition of Yuefeng Environmental completed in June, significantly expanding waste incineration capacity and boosting consolidated results.

• Cash flow from operating activities surged 98.21% year-over-year to ¥2.66 billion, driven by improved receivables collection and government support.

• EBITDA for the first nine months was ¥3.96 billion, with an EBITDA margin of 40.69%.

Financial highlights

• Q3 revenue was ¥3.97 billion, up 36.70% year-over-year; net profit attributable to shareholders was ¥638 million, up 28.08%.

• Basic and diluted EPS for the first nine months were ¥1.97, up 15.88% year-over-year.

• Total assets at September 30, 2025, were ¥62.63 billion, up 59.33% from year-end 2024, mainly due to the Yuefeng acquisition.

• Operating cash flow for the first nine months was ¥2.66 billion, up 98.21% year-over-year.

Outlook and guidance

• Capital expenditures are expected to decline for the full year 2025 (excluding Yuefeng), as fewer new projects are initiated.

• Free cash flow is expected to improve as ongoing projects complete and debt policies remain supportive.

• The company plans to complete integration of Yuefeng by year-end, aiming for further synergy realization.