SIIC Environment (BHK) H1 2025 earnings summary

Executive summary

• H1 2025 revenue fell 4.4% YoY to RMB3,177.1m, while profit for the period rose 8.9% to RMB553.5m and profit attributable to owners increased 7.1% to RMB344.3m.

• Higher water volumes, growth in concession-related and asset-light income, and lower finance costs supported earnings despite weaker construction revenue.

Financial highlights

• Gross profit decreased 1.6% YoY to RMB1,257.2m; gross margin rose to 39.6% from 38.4%.

• Finance expenses fell 12.5% YoY to RMB350.1m after debt refinancing; income tax expense declined 31.9% to RMB97.9m, including reversals of prior-year overprovisions.

• EPS increased 7.1% YoY to RMB13.37 cents.

• Net cash generated from operating activities was RMB631.5m, versus a RMB64m outflow in H1 FY2024; free cash flow was RMB887m.

Outlook and guidance

• New major construction projects are expected to commence progressively in H2 2025; priorities include quality projects, asset upgrades, lean operations and digital and technology transformation.

• H2 priorities also include M&A, new businesses and opportunities in Hong Kong, Singapore and other overseas markets, while balancing development with risk management.

• Green-finance and environmental-policy support is expected to broaden financing channels, reduce funding costs and support new projects.