Zhejiang Tengy Environmental Technology (1527) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 was RMB224.82 million, down 36.98% year-over-year due to several ongoing projects not yet reaching revenue recognition stage.

• Profit attributable to owners increased 7.21% year-over-year to RMB15.84 million, with EPS at RMB0.12.

• Gross profit margin rose to 38.04% from 25.40% in the prior year, mainly due to lower steel prices after contract signing.

• No interim dividend was declared for the period.

Financial highlights

• Gross profit: RMB85.53 million (down 5.61% year-over-year); gross margin: 38.04% (up 12.64 pts).

• Cost of sales: RMB139.29 million (down 47.66% year-over-year).

• Finance costs rose to RMB9.87 million from RMB4.91 million year-over-year.

• Net cash from operating activities: RMB1.64 million (down from RMB78.75 million in prior year).

• Working capital stood at RMB681.42 million as of 30 June 2025.

Outlook and guidance

• The industry is expected to benefit from stricter global and domestic environmental regulations, driving demand for super-large dust collectors.

• The Group will continue to invest in R&D for energy-efficient environmental protection equipment and seek market expansion, including international opportunities.

• Plans to pursue suitable acquisitions in environmental protection, new materials, and new energy sectors.