Yunnan Water Investment Co., Limited released its Interim Report 2026, highlighting weaker top-line performance and continued bottom-line pressure for the six months ended 30 June 2026.

Revenue slipped 8.29 % year on year to RMB 1.06 billion, driven mainly by a 15.9 % fall in wastewater treatment income to RMB 523.0 million. Water-supply revenue inched up 3.4 % to RMB 272.9 million, while solid-waste revenue softened 2.8 % to RMB 225.2 million. Construction and equipment sales dropped 35.9 % to RMB 7.1 million; other services increased 13.6 % to RMB 33.3 million.

Group gross profit fell 64.55 % to RMB 52.65 million as gross margin narrowed to 5.0 % from 12.8 %. A less severe impairment charge on long-term assets cut administrative expenses to RMB 124.5 million, compared with RMB 454.8 million a year earlier. Net finance costs eased 8.4 % to RMB 439.6 million on a lower average borrowing rate of 3.76 %.

Loss before tax narrowed to RMB 745.76 million from RMB 1.04 billion, and EBITDA swung to a positive RMB 123.36 million versus a negative RMB 104.73 million in the prior-year period. Nevertheless, net loss attributable to ordinary shareholders remained heavy at RMB 655.94 million, translating into a basic loss per share of RMB 0.637.

Liquidity remains tight. Current liabilities exceeded current assets by RMB 5.34 billion, while total borrowings stood at RMB 21.49 billion, including RMB 4.41 billion due within twelve months. Cash and cash equivalents amounted to RMB 717.21 million. Capital commitments reached RMB 7.04 billion, largely for concession and construction projects. The auditor highlighted material uncertainties that may cast doubt on the group’s ability to continue as a going concern.

Operationally, the group had 77 wastewater projects in commercial operation with daily capacity of 1.84 million tonnes and an average utilisation rate of 77.29 %. Water-supply projects totalled 33, providing 1.10 million tonnes daily at a 74.61 % utilisation rate. Fourteen solid-waste projects offered annual capacity of 2.19 million tonnes with 94.72 % utilisation.

Management reiterated its “asset-light” transformation strategy, focusing on lean operations, project delivery, cash-collection acceleration and asset optimisation. Priorities for the second half include reducing costs across energy, labour and materials, expanding smart-water platforms, completing construction projects to move them into commercial operation, and pursuing price adjustments with local authorities to stabilise revenues.

No interim dividend was declared.