China Everbright Greentech (1257) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was HK$3,400.1 million, down 3% year-over-year, mainly due to a sharp decline in construction services revenue.

• EBITDA decreased by 11% to HK$974.4 million, while profit attributable to equity shareholders rose 33% to HK$190.8 million, driven by cost reductions.

• Interim dividend declared at HK2.8 cents per share, double the prior year's payout, with a payout ratio of 30.32%.

• The company expanded heating supply capacity by 520,000 tons and secured its first biomass natural gas project, marking a strategic shift toward high-value biomass utilization.

• The business continued to focus on integrated biomass utilisation, hazardous and solid waste treatment, environmental remediation, and clean energy projects, with 142 environmental and 70 asset-light projects as of June 2025.

Financial highlights

• Gross profit increased to HK$856.8 million from HK$681.1 million year-over-year, and profit attributable to shareholders rose 33% year-over-year.

• Basic earnings per share increased 33% to HK9.23 cents; interim dividend per share doubled to HK2.8 cents.

• Net asset value per share rose 6% to HK$4.91 as of 30 June 2025; total assets reached HK$37,740 million.

• Gearing ratio decreased to 67.04% and current ratio improved to 129.32% compared to year-end 2024.

• Cash and bank balances increased 56% to HK$2,610.5 million, with available cash and unutilised bank loan facilities totaling HK$9,691.9 million.

Outlook and guidance

• Strategic focus remains on strengthening the core biomass business, expanding heat supply, and developing high-value recycling projects.

• Plans include deepening regional synergy, cost reduction, and efficiency in hazardous and solid waste treatment.

• The company aims to lead the biomass energy sector and develop a diversified green energy portfolio under the 15th Five-Year Plan.

• Continued investment in R&D and partnerships with leading research institutions to maintain industry leadership.

• Focus on innovation, internationalisation, and ecological business models to leverage policy support for green development.