Dynagreen Environmental Protection Group Co., Ltd. (DYNAGREEN ENV) released its audited 2025 results.

Revenue grew 3.97% year-on-year to RMB3.53 billion, driven by higher electricity sales, an expanded steam-supply business and greater sludge-treatment volume. Gross profit increased 6.79% to RMB1.65 billion, lifting gross margin to 46.67% (2024: 45.44%).

Net profit attributable to shareholders rose 5.54% to RMB618 million. Core earnings excluding non-recurring items reached RMB612 million, up 5.81%. Basic EPS was RMB0.44; diluted EPS RMB0.43.

Cash flow from operating activities strengthened 28.32% to RMB1.85 billion, supported by improved collections of waste-treatment fees and national renewable-energy subsidies. Cash and cash equivalents stood at RMB1.54 billion (2024: RMB0.87 billion).

Total assets were RMB21.93 billion, broadly stable year on year, while total liabilities dipped to RMB13.25 billion. The gearing ratio (total liabilities/total assets) eased to 60.45% (2024: 61.21%). Net assets attributable to shareholders increased 2.65% to RMB8.27 billion, or RMB5.93 per share.

The Board proposes a cash dividend of RMB0.22 (pre-tax) per share, amounting to about RMB314.73 million, subject to shareholder approval. Together with the interim dividend of RMB0.10 already paid, total cash distribution for 2025 will reach RMB0.32 per share, equating to a 73.53% payout of annual attributable profit.

Operationally, Dynagreen processed 14.73 million tonnes of municipal solid waste (+2.41%), generated 4.36 billion kWh of on-grid electricity (+2.31%) and supplied 1.12 million tonnes of steam (+98.81%). The company operated 37 waste-to-energy plants with combined daily treatment capacity of 40,300 tonnes and installed capacity of 857 MW.

Capital expenditure slowed, reducing construction cash outlays and supporting free cash flow. Medium-term notes of RMB5.00 billion were issued in November at 2.00% to optimise the debt mix; total borrowings declined to RMB8.37 billion (2024: RMB9.15 billion).

Dynagreen completed registration of 37.13 million restricted A-shares under its first equity-incentive scheme, enlarging share capital to 1.43 billion shares.

Looking ahead, management will focus on improving project efficiency, expanding heat-supply and sludge co-processing, promoting digital transformation and exploring green-certificate income while seeking selective M&A and overseas opportunities.