Zheneng Jinjiang Environment Holding Company (BWM) H1 2024 earnings summary

Executive summary

• 1H2024 revenue fell 9.5% YoY to RMB1,753.2m, while WTE revenue rose 0.3% to RMB1,722.4m; higher BOT-related finance income did not offset the decline in BOT revenue.

• Net profit attributable to equity holders was RMB206.9m, down 22.3%; excluding the India disposal currency-translation loss, it was RMB251.9m, down 5.4%.

Financial highlights

• Gross profit was RMB576.7m versus RMB584.5m; total gross margin rose to 32.90% from 30.18%.

• Profit before tax was RMB302.5m, down 17.1%; excluding the India disposal currency-translation loss, PBT was RMB347.5m, down 4.8%.

• Operating cash flow was RMB428.5m, investing cash outflow RMB373.1m and financing cash inflow RMB131.7m; cash and cash equivalents ended at RMB649.9m.

• Basic and diluted EPS was RMB14.23 cents, down 22.3% YoY.

Segment performance

• WTE gross profit rose 3.9% to RMB551.3m; segment margin increased to 32.01% from 30.91%.

• Electricity sales increased 3.6%, steam sales 9.7%, while waste-treatment revenue declined 12.7%.

• BOT revenue, comprising service-concession finance income, fell to RMB24.8m from RMB213.3m; no BOT project construction services were delivered in 1H2024.

• Technical, management, equipment and EMC revenue declined 12.3% to RMB6.0m; segment gross profit fell to RMB0.6m from RMB5.9m.