Yunnan Water Investment Company (6839) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 was RMB1,157.6 million, down 6.8% year-over-year; net loss widened to RMB1,047.5 million from RMB923.9 million in the prior year period.

• Gross profit margin declined to 12.8% from 16.2% year-over-year; loss attributable to ordinary shareholders was RMB875.4 million, with basic loss per share at RMB0.734.

• No interim dividend was declared for the period.

• The Group continues to focus on high-quality transformation, debt risk mitigation, cost control, asset revitalization, and project acceleration.

Financial highlights

• Revenue decreased to RMB1,157.6 million (down 6.8% year-over-year); gross profit was RMB148.5 million (down 26.2%).

• Net loss increased to RMB1,047.5 million; EBITDA was negative RMB104.7 million, compared to positive RMB159.7 million last year.

• Gross profit margin fell to 12.8% from 16.2%; administrative expenses rose sharply to RMB454.8 million due to long-term asset impairment.

• Finance costs net decreased by 22.1% to RMB480.2 million, aided by a perpetual bond agreement.

• Cash and cash equivalents at period end were RMB927.6 million, down 8% from year-end 2024.

Outlook and guidance

• The Group will prioritize debt repayment, revenue growth, cost control, asset optimization, and project completion in the second half of 2025.

• Plans include divesting certain projects, seeking strategic investors, and leveraging unutilized loan facilities to address liquidity pressure.

• Emphasis on cash flow management, operational efficiency, and high-quality transformation.