Yunnan Water Investment Company (6839) H2 2024 earnings summary

Executive summary

• Revenue declined by 10.2% year-over-year to RMB2,798.2 million, with net loss widening 117.8% to RMB2,166.2 million and loss attributable to shareholders up 152.8% to RMB1,739.4 million.

• Gross profit margin fell to 16.22% from 21.02% year-over-year, and basic loss per share increased to RMB1.458.

• No final dividend was recommended for the year.

Financial highlights

• Revenue dropped from RMB3,116.5 million to RMB2,798.2 million, mainly due to lower wastewater treatment and equipment sales.

• Net loss increased to RMB2,166.2 million, with gross profit margin down to 16.22%.

• Administrative expenses rose 49.8% to RMB633.5 million, mainly due to higher impairment provisions.

• Net finance costs increased 18.9% to RMB1,130.8 million, with average borrowing rate rising to 3.93%.

• Gearing ratio improved to 64.59% from 89.71% due to reduced borrowings and increased perpetual capital instruments.

Outlook and guidance

• Focus on high-level transformation, operational efficiency, debt structure optimization, and expansion into emerging sectors in 2025.

• Plans to divest certain projects, seek strategic investors, and obtain new financing to address liquidity pressures.