China Water Affairs Group (855) H2 2025 earnings summary

Executive summary

• Revenue declined 9.4% year-over-year to HK$11,655.6 million, with gross profit down 7.8% to HK$4,405.0 million.

• Net profit attributable to owners fell 29.9% to HK$1,074.7 million; basic EPS dropped 29.8% to HK$0.66.

• Final dividend maintained at HK$0.15 per share, subject to shareholder approval.

Financial highlights

• EBITDA decreased 8.4% to HK$4,720.0 million; adjusted EBITDA (excluding non-cash items) rose 1.8% to HK$5,256.6 million.

• Gross margin remained stable despite revenue decline; cost control measures offset lower construction activity.

• Aggregate borrowings increased to HK$25,185.2 million; gearing ratio at 66.6%.

• Cash and pledged deposits totaled HK$5,450.0 million at year-end.

Outlook and guidance

• Management expects water tariff reforms in major cities to drive profitability and industry resilience.

• Policy support, interest rate cuts, and marketization of tariffs seen as catalysts for profit recovery.

• Focus remains on core water supply, technological upgrades, and expanding value-added services.