Yunnan Water Investment Company (6839) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB1,061.6 million, down 8.29% year-over-year; net loss narrowed to RMB760.9 million from RMB1,047.5 million in H1 2025.

• Loss attributable to ordinary shareholders was RMB655.9 million, with basic loss per share at RMB0.637.

• No interim dividend was declared for the period.

Financial highlights

• Gross profit margin declined to 5.0% from 12.8% year-over-year; gross profit dropped 64.55% to RMB52.7 million.

• EBITDA turned positive at RMB123.4 million, up from negative RMB104.7 million in H1 2025.

• Administrative expenses dropped 72.6% year-over-year due to lower impairment provisions.

• Net finance costs decreased by 8.4% to RMB439.6 million, with average borrowing rate down to 3.76%.

• Cash and cash equivalents fell by 11.1% to RMB717.2 million as of June 30, 2026.

Outlook and guidance

• Focus for H2 2026 includes lean operational control, cost reduction, cash flow improvement, and business structure optimization.

• Plans to accelerate smart water platform coverage and enhance profitability.

• Continued disposal of non-performing and low-efficiency assets to supplement cash flows.

• Management aims to broaden cash inflow channels and revitalize assets.