GUANGDONG INVESTMENT (270) Q1 2025 earnings summary

Executive summary

• Profit attributable to owners from continuing operations rose 1.9%–2.5% year-over-year to HK$1,322–1,305 million for 1Q25.

• Distribution of 99.9% of GD Land shares to shareholders completed on 21 January 2025; GD Land ceased to be a subsidiary and results are presented as discontinued operations.

• Total assets dropped 29.4% to HK$95,692 million as of 31 March 2025, mainly due to the GD Land disposal.

• Special dividend of HK$2,335 million distributed via GD Land shares.

Financial highlights

• Revenue for 1Q25 (excluding GD Land) was HK$5,333 million, up from HK$5,197 million in 1Q24; revenue from continuing operations reported as HK$4,617 million, down 0.7% year-over-year.

• Net finance costs from continuing operations decreased to HK$117 million.

• Net loss from fair value adjustments for investment properties was HK$10 million.

• Equity attributable to owners stood at HK$40,812–41,658 million as of Dec 2024–Mar 2025.

• Discontinued operations (GD Land): revenue fell 85.5% to HK$252 million; loss before tax HK$9.5–17 million.

Outlook and guidance

• Annual water supply revenue for 2025 expected in the range of HK$5.18–5.26 billion, with tariff rate at HK$0.323/ton.

• Group will focus on expanding water resources into higher value-added sectors, optimizing asset portfolios, and exploring M&A opportunities.

• Stable, long-term returns anticipated from PPP projects like Yinping, with capped development costs and no construction risk.

• Plans to maintain stable growth in core operations and strengthen risk management amid global economic uncertainties.