China Everbright Water Limited (Everbright Water) reported interim results for the six months ended 30 June 2026, highlighting resilient earnings despite lower construction activity.
Revenue and Earnings • Group revenue declined 27.00% year-on-year to HK$2.39 billion as construction service income normalised. • Gross profit narrowed by 10.39% to HK$1.23 billion, yet gross margin expanded to 51% (1H 2025: 42%), driven by higher-margin operation services and cost-control measures. • EBITDA reached HK$1.08 billion (-9.70% YoY). • Profit attributable to equity holders slipped 8.19% to HK$517.56 million, translating into basic EPS of 18.09 HK cents.
Revenue Mix Shift Operation income became the primary growth driver, accounting for 67.40% of total revenue (1H 2025: 45.00%). Construction services fell to 4.20%, finance income represented 23.60%, and machinery & technical services contributed 4.80%.
Operational Metrics • Waste-water treatment volume totalled 888.71 million m³. • Raw water supply reached 46.42 million m³, while reusable water supply stood at 19.97 million m³. • New investment commitments amounted to approximately RMB90.40 million, with contract value of RMB68.50 million and 20,000 m³/day of additional designed capacity. • All projects met the “Dual Zero” target of zero safety and zero environmental incidents.
Financial Position • Total assets increased to HK$40.10 billion; total liabilities were HK$23.83 billion, yielding a gearing ratio of 59.4% (31 December 2025: 60.7%). • Cash and bank balances stood at HK$1.85 billion, supplemented by HK$6.07 billion of unutilised banking facilities. • Total borrowings amounted to HK$18.03 billion, with long-term debt comprising 51% of the total. • Net cash inflow from operating activities was HK$51.13 million.
Shareholder Returns An interim dividend of 6.09 HK cents per share (equivalent to 1.00 Singapore cent) was declared, maintaining a payout ratio of 34%.
Subsequent Financing In July 2026, Everbright Water completed a RMB1.50 billion five-year Medium-Term Note issuance at a 1.80% coupon. The tranche, rated “AAA”, was 1.8 times subscribed and the proceeds are earmarked for refinancing existing bonds.
Business Outlook Management plans to deepen its asset-heavy core while scaling asset-light services, targeting opportunities in agricultural non-point source pollution control, electronic industrial waste-water treatment and Southeast Asian markets. Priority will be given to receivables collection, cash-flow management, technology commercialisation and the maintenance of “Dual Zero” safety and environmental benchmarks.