China Water Affairs Group (855) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 30 September 2025 decreased by 12.9% year-over-year to HK$5,183.3 million, reflecting a strategic focus on higher-return projects and a slowdown in construction activities.

• Profit attributable to owners fell 24.4% to HK$571.3 million, with basic and diluted EPS down 24.1% to 35.12 HK cents.

• Interim dividend maintained at HK$0.13 per share.

Financial highlights

• Gross profit fell 20.1% year-over-year to HK$1,827.0 million.

• EBITDA dropped 18.6% to HK$2,155.4 million.

• Operating profit was HK$1,608.7 million, down from HK$2,019.1 million.

• Net assets increased 10.8% to HK$24,226.3 million as of 30 September 2025.

• Gearing ratio improved to 64.3% from 66.8% at 31 March 2025.

Outlook and guidance

• The Group expects stable demand for water services, supported by PRC economic resilience, urbanization, and water tariff reforms.

• Water tariff reforms and supportive monetary policy are anticipated to enhance profitability and reinvestment capability.

• Focus remains on digital transformation, operational efficiency, and a balanced asset-light and asset-heavy strategy.