Dynagreen Environmental Protection Group Co., Ltd. (“Dynagreen”) posted solid interim results for the six months ended 30 June 2026. Revenue rose 11.45% year-on-year to RMB 1.88 billion, fueled by higher waste-treatment volumes, on-grid power sales and steam supply, as well as the first-time consolidation of newly acquired Xinmi Company and initial construction income from Guangyuan Phase II.

Net profit attributable to shareholders reached RMB 464.59 million, up 23.16% versus the prior-year period, while total profit advanced 28.97% to RMB 640.11 million. Net margin improved, supported by a 12.39% increase in gross profit to RMB 937.36 million and an 11.45% decline in finance costs to RMB 169.31 million.

Cash flow from operations strengthened 11.57% to RMB 705.40 million, underpinned by higher renewable energy subsidies and improved collection of receivables. Total assets stood at RMB 22.30 billion (+1.68% from end-2025); the gearing ratio edged down to 60.25%.

Management proposed an interim dividend of RMB 0.11 per share (before tax), equivalent to a payout of approximately RMB 157.00 million, pending shareholder approval.

Operationally, Dynagreen incinerated 7.66 million tonnes of municipal waste (+7.07%), generated 2.71 billion kWh of electricity (+6.64%), supplied 2.26 billion kWh to the grid (+6.96%) and delivered 0.66 million tonnes of steam (+28.85%). All 38 operating projects maintained stable compliance, with Sihui Company attaining national AAA plant status—Dynagreen’s eighth such facility.

Quality-and-efficiency initiatives reduced key costs: filter-bag prices fell 6.7% year-on-year, refractory components by roughly 37% and slaked-lime prices by over 20%. Technology upgrades, including calcium-carbonate direct injection and ultra-low-temperature catalysts, lifted annual power-generation revenue an estimated RMB 4.94 million and cut chemical consumption.

R&D spending grew 69.28% to RMB 4.17 million, and a new Beijing Environmental Protection & Intelligent Technology Research Branch was established to accelerate digital-plant rollouts and AI-driven operational optimisation.

On the financing front, Dynagreen placed RMB 500 million of three-year science & technology innovation medium-term notes at a 1.88% coupon, extending debt duration and reducing borrowing costs. Total outstanding borrowings declined to RMB 7.67 billion (-8.36% from end-2025).

Strategically, Dynagreen completed the acquisition of Xinmi Company (90% stake for RMB 129.28 million) and won its first light-asset operation mandate in Zhejiang’s Tiantai County. The firm was also shortlisted for Indonesia’s second-batch waste-to-energy projects, advancing its overseas agenda.

Looking ahead, management will prioritise technological innovation, continue debt structure optimisation and pursue targeted acquisitions while focusing on overseas expansion and stable cash returns to shareholders.