SIIC Environment (BHK) H1 2026 earnings summary

Executive summary

• H1 2026 revenue was RMB3,185.0 million, up 0.2% YoY; profit for the period fell 11.4% to RMB490.4 million and profit attributable to owners declined 5.5% to RMB325.2 million.

• Lower finance expenses from refinancing partly offset earnings pressure from lower construction revenue and concession financial income.

Financial highlights

• Revenue was RMB3,185.0 million versus RMB3,177 million in H1 FY2025, up 0.2% YoY; construction revenue fell 24.6% to RMB204.7 million.

• Operating and financial income from service concession arrangements totaled RMB2,567.9 million, down 3.1% YoY, mainly on lower financial income.

• Service income rose 79.4% to RMB214.6 million on new projects; other revenue increased 45.5% to RMB197.8 million, driven by ad-hoc installation work.

• Gross profit was RMB1,238.8 million, down 1.5%; gross margin was 38.9%, down 0.7 percentage points YoY, reflecting revenue mix changes.

• Profit before tax was RMB625 million, down 4.0%; EPS was RMB12.63 cents, down 5.5% YoY.

Outlook and guidance

• Major new project construction work is expected to commence in H2 2026; priorities include advancing existing projects and upgrades, pursuing quality investments, expanding regionally and improving operational efficiency.

• H2 priorities include lean management, digital and intelligent transformation, strategic M&A and high-quality projects; growth areas include reclaimed, industrial and desalinated water.

• Plans include low-carbon wastewater treatment, innovation and digital systems, and steady expansion of environmental protection activities.