Beijing Enterprises (392) H2 2024 earnings summary

Executive summary

• Revenue reached RMB 84.064 billion in 2024, up 2.1% year-over-year; net profit attributable to shareholders was RMB 5.123 billion, up 5% after adjusting for one-off events.

• Dividend per share increased to HKD 1.62, with a payout ratio of 36.2%, up 3.2 percentage points year-over-year.

• All major business segments—gas, water, solid waste/environment, and beer—achieved operational and financial improvements, with Yanjing Brewery's net profit surpassing RMB 1 billion for the first time and BE Water maintaining positive free cash flow for three years.

• Debt structure was optimized, with Panda bond issuance exceeding RMB 10 billion and head office finance costs reduced by over RMB 300 million.

• ESG performance improved, with MSCI ESG rating upgraded to A, inclusion in high-dividend ESG indices, and multiple industry awards.

Financial highlights

• Gas segment revenue was RMB 62.003 billion, up 0.9% year-over-year; LNG processing at Tianjin Nangang exceeded 1 million tons in its first full year.

• Gross profit margin improved to 13.59% from 13.03% last year; finance costs decreased by 5.4% to RMB 2.501 billion.

• Water segment saw 5% growth in core business revenue, stable gross margin, and positive free cash flow for three consecutive years.

• Solid waste/environmental segment processed 7.35 million tons domestically (+4% YoY); EEW (Europe) processed 4.99 million tons (+2.4% YoY), with revenue up 19.1% and EBITDA up 25.8%.

• Beer segment achieved record revenue of RMB 12.76 billion (+3.5%) and net profit surpassing RMB 1 billion, with profit before tax up 62.7%.

Outlook and guidance

• Focus remains on four core businesses: gas, water, solid waste/environment, and beer, with continued industry leadership and disciplined investment.

• Capital expenditure for 2024 and 2025 is projected at RMB 6.6–6.67 billion annually, mainly in core segments.

• Dividend policy targets a minimum payout ratio of 35% and HKD 1.6 per share through 2026, with potential for further increases.

• Cautious approach to new projects and M&A, prioritizing cash flow, operational efficiency, and talent structure optimization.

• Emphasis on digitalization, product innovation, and green transformation to drive future growth.