Kunming Dianchi Water Treatment Co., Ltd. (“DCWT”) released its audited results for the year ended 31 December 2025.

Revenue and earnings • Revenue fell 7.2% year on year to RMB1.48 billion. • Net profit attributable to equity holders dropped 25.5% to RMB196.20 million, as higher impairment losses (up RMB44.92 million to RMB173.96 million) and a RMB62.72 million charge in “other losses” offset relatively stable gross profit. • Gross profit slipped 1.0% to RMB706.89 million, yet the gross margin improved to 47.8% (FY2024: 44.8%) on lower construction-related costs. • Basic EPS declined to RMB0.19 from RMB0.26.

Segment performance • Wastewater treatment remained the core contributor, delivering RMB1.06 billion (-8.1%) or 71.5% of group revenue; segment gross margin edged up to 44.0%. • Water-supply revenue rose 2.7% to RMB179.12 million, with margin expansion to 50.7% (FY2024: 34.4%) driven by higher finance income. • “Other” businesses generated RMB242.37 million (-9.6%), mainly from management and transportation services plus thermal production.

Cost and expense dynamics • Cost of sales fell 12.2% to RMB772.66 million, reflecting lower construction outlays. • Administrative expenses contracted 32.5% to RMB51.43 million. • Finance costs decreased 10.0% to RMB237.23 million, aided by lower interest expense. • Other income declined 68.4% to RMB7.26 million following reduced gains on asset disposals.

Cash flow and balance sheet • Net operating cash outflow was RMB524.16 million versus an inflow of RMB293.82 million a year earlier, mainly due to higher payments to suppliers and contractors. • Net financing inflow reached RMB613.65 million, underpinning total cash and bank balances of RMB33.63 million at year-end. • Total assets grew 8.5% to RMB13.44 billion; total equity rose 3.7% to RMB5.43 billion. • Borrowings increased to RMB5.19 billion (FY2024: RMB4.59 billion). Net gearing stood at 48.7% (FY2024: 46.5%). • The Group recorded net current assets of RMB1.69 billion, up from RMB1.32 billion.

Operational highlights • Wastewater treated reached 652.7 million m³ with a utilisation rate of 95.9% across 34 wastewater plants (total capacity: 1.9 million m³/day). • Reclaimed-water facilities supplied 94.1 million m³; running-water output totalled 7.55 million m³. • No final dividend was proposed for FY2025.

Strategic focus Management plans to concentrate on core wastewater and water-supply operations, tighten cost and cash-flow controls, accelerate project construction, and pursue efficiency improvements in 2026, the opening year of China’s 15th Five-Year Plan.