Beijing Enterprises Water Group (371) H2 2025 earnings summary

Executive summary

• Profit attributable to shareholders fell 7% year-over-year to RMB1,561.5 million, with revenue down 9% to RMB22,062.2 million, mainly due to lower construction and technical services revenue.

• Gross profit margin improved to 38% from 37% last year, driven by a higher proportion of water treatment services, which have higher margins.

• Final dividend of HK9.25 cents per share proposed, with full-year dividend at HK16.60 cents.

• The group maintained its top industry ranking and advanced its AI and digitalization strategy, enhancing operational efficiency.

Financial highlights

• Revenue decreased to RMB22,062.2 million from RMB24,270.5 million year-over-year.

• Net profit attributable to shareholders was RMB1,561.5 million, down from RMB1,677.6 million.

• Basic and diluted EPS were RMB14.55 cents, compared to RMB15.63 cents last year.

• Gross profit margin rose to 38% from 37% due to revenue mix shift.

• Cost of sales declined to RMB13,573.5 million, reflecting lower construction activity.

• Finance costs dropped 25% to RMB2,332.3 million, reflecting improved debt structure.

• Cash and cash equivalents increased to RMB9,567.5 million.

Outlook and guidance

• Focus on sustainable growth, technological innovation, and AI-driven operational efficiency.

• Plans to deepen digital transformation, risk management, and talent development.

• Strategic confidence maintained for the 15th Five-Year Plan, aiming for global leadership in water environmental services.