Capital Environment Holdings Limited reported unaudited interim results for the six months ended 30 June 2026 that showed resilient top-line performance and a double-digit rise in earnings.

Revenue slipped 0.89% year on year to RMB 1.86 billion, as softer site-restoration income offset steady contributions from core waste-to-energy, urban-rural sanitation and organic waste treatment, which together accounted for 85.21% of turnover.

Cost-containment measures lifted the gross profit margin to 39.62% from 37.64% a year earlier, expanding gross profit to RMB 736.55 million. Selling and administrative expenses edged up 3.76% to RMB 187.45 million, while net impairment losses on financial and contract assets rose 17.82% to RMB 130.39 million, reflecting the enlarged receivables base and ageing profile.

Finance costs fell 12.22% to RMB 172.69 million, benefiting from refinancing at lower interest rates. As a result, profit attributable to owners of the parent increased 12.18% to RMB 211.11 million, with basic earnings per share improving to RMB 0.0148. Total profit for the period reached RMB 223.63 million, up 13.98%.

During the half, the Group operated or trial-ran 57 projects—including 27 waste-to-energy and biomass plants—processing 5.64 million tonnes of municipal solid waste and exporting 1.48 billion kWh of electricity to the grid. Total investment committed to 63 domestic projects stood at RMB 19.71 billion, of which RMB 17.83 billion had been deployed.

The balance sheet remained stable. Total assets rose 1.15% to RMB 21.44 billion, while net assets attributable to shareholders reached RMB 7.15 billion. Cash and bank balances, including pledged deposits, were RMB 437.09 million at end-June. Interest-bearing borrowings increased marginally to RMB 9.01 billion; the gearing ratio improved to 65.02% from 65.64% at year-end 2025, and the current ratio was 2.71. Undrawn credit lines amounted to RMB 1.75 billion.

Management highlighted ongoing efforts to raise operational efficiency, control costs, collect receivables, adjust tariffs and dispose of under-performing assets. No interim dividend was declared.

Looking ahead to the second half, the Group plans to accelerate construction of expansion phases, pursue selective M&A of high-quality waste-to-energy assets, grow derivative businesses in sanitation, site restoration and carbon-reduction services, and deepen digitalisation and safety management across all facilities.