Grandblue Environment (600323) Q3 2026 earnings summary

Executive summary

• 9M revenue rose 20.84% YoY to RMB 11.77bn; total profit increased 27.07% to RMB 2.87bn and attributable net income grew 15.01% to RMB 1.85bn.

• Revenue and profit growth benefited from Yuefeng Environmental being consolidated for five additional months YoY, plus improved results from integration and operating coordination.

• Q3 operations faced pressure from city-services optimization, slightly lower energy profit, tax incentives and renewable-energy subsidies expiring, and timing of overseas project revenue recognition; overall results remained stable.

Financial highlights

• Q3 revenue was RMB 4.03bn, up 1.40% YoY; attributable net income was RMB 639.6m, up 4.82%, while adjusted attributable net income was RMB 618.1m, down 0.83%.

• 9M adjusted attributable net income, excluding non-recurring items, was RMB 1.80bn, up 17.08% YoY.

• 9M operating cash flow was RMB 3.06bn, up 14.87% YoY, mainly reflecting the additional Yuefeng Environmental consolidation contribution.

• 9M non-recurring gains totaled RMB 47.9m; recurring policy-linked relocation subsidies were classified separately from non-recurring items.

Outlook and guidance

• Priorities include improving operating efficiency, sustaining cost reductions, increasing resource and energy recovery, expanding digital applications and centralized procurement, deepening integration, and strengthening receivables management.

• Expected 2026 Q4 revenue recognition from the Nanhai waste-to-energy upgrade and residue-utilization project, plus the Nanhai biomass resource-utilization project.

• Further growth in external heat supply is expected, supported by 33 signed project agreements, of which 26 projects were already supplying heat.