Zejiang Weiming Environment Protection (603568) Q2 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was ¥3.90 billion, down 5.10% year-over-year; net profit attributable to shareholders was ¥1.42 billion, up 0.13% year-over-year.

• Operating cash flow reached ¥1.32 billion, a 0.86% increase year-over-year.

• The company continued to expand in environmental governance, equipment manufacturing, and new energy materials, with significant project launches and capacity increases.

• No interim dividend or capital increase from reserves was proposed for the period.

Financial highlights

• Total assets at period-end were ¥29.19 billion, up 6.22% from the previous year-end; net assets attributable to shareholders were ¥13.93 billion, up 4.66%.

• Gross margin improved as operating costs fell 11.01% year-over-year, outpacing the 5.10% revenue decline.

• Basic EPS was ¥0.84, unchanged year-over-year; diluted EPS was ¥0.82.

• Adjusted net profit (excluding share-based payment impact) was ¥1.48 billion, up 0.19% year-over-year.

• Non-recurring gains totaled ¥54.42 million, mainly from government grants and fair value changes.

Outlook and guidance

• The company will continue to focus on high-quality growth in environmental, equipment, and new energy materials sectors.

• Plans include further expansion in green power, carbon trading, and international markets, with ongoing investment in R&D and capacity.

• Management highlights ongoing risks from market competition, policy changes, and raw material price volatility.