Zhejiang Tengy Environmental Technology (1527) investor relations material

Executive summary

• Revenue for the year ended 31 December 2025 was RMB753.8 million, up 1.2% year-over-year, driven by large-scale project contracts.

• Gross profit rose 18.6% to RMB258.7 million, with gross margin improving to 34.3% from 29.3% due to lower steel prices and higher-margin projects.

• Profit attributable to owners was RMB81.4 million, down 3.8% year-over-year, mainly due to higher distribution, administrative, and other expenses.

• No final dividend was recommended for the year.

Financial highlights

• Revenue: RMB753.8 million (+1.2% YoY); Gross profit: RMB258.7 million (+18.6% YoY); Gross margin: 34.3% (+5.0pp YoY).

• Profit before tax: RMB101.3 million (-6.1% YoY); Net profit: RMB81.4 million (-3.8% YoY).

• Basic EPS: RMB0.60 (2024: RMB0.63).

• Administrative expenses increased 40.7% to RMB121.2 million, mainly due to higher impairment losses.

• Cash and cash equivalents rose to RMB817.2 million (+RMB157.1 million YoY).

• Net current assets increased 11.6% to RMB758.8 million.

• Bank loans outstanding: RMB114 million.

Outlook and guidance

• Regulatory tightening and expansion of the national Emissions Trading System are expected to drive demand for advanced dust collection and environmental protection equipment.

• The Group plans to invest in R&D for energy-efficient and automated environmental protection devices and explore strategic acquisitions.

• Anticipates continued growth opportunities as China advances toward dual carbon goals and stricter emissions standards.