Yunnan Water Investment Company (6839) investor relations material

Executive summary

• Revenue declined 15.3% year-over-year to RMB2,370 million, with all major segments experiencing decreases.

• Net loss narrowed by 4.4% to RMB2,072 million, but loss attributable to ordinary shareholders rose 6.7% to RMB1,856 million.

• No final dividend was recommended for the year.

• The company focused on asset disposal, debt collection, and improving cash flow, while advancing project construction and operational efficiency.

Financial highlights

• Gross profit margin fell to 7.3% from 16.2% year-over-year.

• Other income surged 406% to RMB296.2 million, mainly from debt restructuring.

• Administrative expenses rose 53.8% due to higher impairment provisions.

• Net finance costs decreased 8.4% to RMB1,036.3 million.

• Gearing ratio increased to 69.25% from 64.59% due to ongoing losses.

• Cash and cash equivalents dropped 20% to RMB806.8 million.

Outlook and guidance

• The company will pursue an asset-light transformation, focus on resolving legacy issues, and accelerate project commercialization.

• Emphasis on optimizing asset structure, improving operational efficiency, and exploring new profit models.

• Plans to divest certain projects and seek strategic investors to enhance capital structure and reduce financing costs.