GUANGDONG INVESTMENT (270) H1 2025 earnings summary

Executive summary

• Profit attributable to owners rose 11.2% year-over-year to HK$2,682 million for 1H25, with basic EPS up 11.2% to HK41.02 cents and interim dividend per share up 11.2% to HK26.66 cents.

• Revenue from continuing operations declined 0.6% year-over-year to HK$9,428 million, mainly due to lower department store, road and bridge, and electric power generation revenues.

• Disposal of Guangdong Land Holdings Limited (GD Land) completed in January 2025 via distribution in specie, resulting in a special dividend and reclassification of related results as discontinued operations.

Financial highlights

• Profit before tax from continuing operations increased 6.7% year-over-year to HK$4,105 million, driven by lower net finance costs.

• Net finance costs from continuing operations dropped to HK$188 million from HK$389 million year-over-year.

• Equity attributable to owners increased to HK$42,178 million from HK$41,658 million at year-end 2024.

• Total assets as of 30 June 2025 were HK$97,097 million, down from HK$135,595 million at year-end 2024, mainly due to GD Land disposal.

• Net cash inflow from operating activities was HK$3,339 million.

Outlook and guidance

• Management expects moderate recovery in China’s economy amid global uncertainties and will focus on expanding high value-added water resources business and optimizing asset allocation.

• Plans to pursue investment and M&A opportunities, optimize asset portfolios, and enhance operational efficiency.

• Annual water supply revenue for Hong Kong projected at HK$5.18–5.26 billion in 2025, with tariff rate at HK$0.323/ton.

• Dongjiang Water Supply concession continues to provide stable revenue and profit before tax.