China Everbright Water Limited (CEB Water) reported first-half 2026 revenue of HK$2.39 billion, down 27.09% year on year, driven by a 91.34% collapse in construction service revenue to HK$100.83 million. Operation income rose 9.11% to HK$1.61 billion, while finance income from service-concession assets edged up 0.95% to HK$564.09 million.

Gross profit fell 10.38% to HK$1.23 billion, but the gross margin widened to 51.30% (1H 2025: 41.77%) due to the lower share of low-margin construction revenue. EBITDA slipped 9.70% to HK$1.08 billion. Profit before tax dropped 12.93% to HK$724.63 million, and profit attributable to equity holders decreased 8.19% to HK$517.56 million, translating into basic EPS of HK18.09 cents (-8.22%).

The Board declared an unchanged interim dividend of HK6.09 cents (approx. 1.00 Singapore cent) per share, payable on or around 14 September 2026. Payout represents 34% of interim attributable earnings.

Balance-sheet highlights: • Total assets rose 4.93% since end-2025 to HK$40.10 billion, led by a HK$789.62 million increase in contract assets to HK$24.16 billion and a HK$1.31 billion rise in trade and other receivables to HK$8.52 billion. • Net assets reached HK$16.27 billion (FY25: HK$15.03 billion); net asset value per share improved to HK$4.88. • Net current assets shrank to HK$561.55 million after reclassification of HK$1.74 billion MTN due within 12 months. • Total borrowings increased 4.07% to HK$18.03 billion; gearing (total liabilities/total assets) eased to 59.4% (-1.3 ppt). • Cash and cash equivalents fell HK$461.59 million to HK$1.85 billion; net cash from operations was HK$51.13 million.

Operational metrics: • Projects treated 888.71 million m³ of waste water and supplied 19.97 million m³ of reusable water and 46.42 million m³ of raw water. • Four projects started construction and two commenced operation, adding 20,000 m³/day of treatment capacity. • As at 30 June 2026 the portfolio comprised 173 environmental-protection projects in operation or construction and 17 asset-light service contracts, spanning more than 60 municipalities.

Management noted intensified collection efforts amid slower payment by local governments and highlighted ongoing refinancing to lower funding costs; average lending rates declined versus 1H 2025, trimming finance costs by 10.55% to HK$226.73 million.

Looking ahead, CEB Water plans to focus on industrial waste-water and agricultural non-point pollution projects, pursue “asset-light plus asset-heavy” expansion, and continue R&D commercialisation while controlling receivable and liquidity risks.