China Everbright Greentech (1257) H2 2024 earnings summary

Executive summary

• Revenue declined 6% year-over-year to HK$6,977 million, mainly due to a 65% drop in construction services revenue, while operation services revenue remained stable; EBITDA fell 32% to HK$994 million, and loss attributable to equity shareholders increased 38% to HK$415 million, driven by impairments in hazardous waste sector assets and national tariff subsidies receivables.

• The company reinforced core businesses and transformation, launching new projects in clean energy and zero-carbon industrial parks.

Financial highlights

• Gross profit decreased to HK$1,459.9 million from HK$1,595.2 million year-over-year; total assets and liabilities decreased by 9% and 10% respectively as of 31 Dec 2024, with equity attributable to shareholders down 15%.

• Gearing ratio improved to 67.9% (down 1.02ppt), and current ratio rose to 125.4% (up 13.5ppt).

• Short-term loans decreased 24% year-over-year, long-term loans increased 3%, and effective interest rate on liabilities dropped by 0.22ppt to 3.5%.

• No final dividend declared; full-year dividend per share was 1.4 HK cents, down from 2.5 HK cents last year.

• Cash and bank balances at year-end were HK$1,673.7 million, with unutilised bank loan facilities of HK$6,831.7 million.

Outlook and guidance

• Strategic focus on clean energy, integrated biomass utilisation, and high-value sectors such as natural gas, sugar, alcohol, aviation fuel, protein, and organic fertiliser production.

• Expansion into zero-carbon industry parks and virtual power plant platforms, leveraging AI and green electricity trading.

• Continued emphasis on asset-light business models, internationalisation, and technological innovation to drive future growth.

• The company expects broader development prospects due to national support for green initiatives.