Dongjiang Environmental Company (895) H2 2025 earnings summary

Executive summary

• Operating revenue for 2025 was RMB3,457 million, nearly flat year-over-year, with a slight decrease of 0.85%.

• Net profit attributable to equity holders was RMB-1,231.5 million, a 53.14% larger loss than 2024, mainly due to market downturn, lower prices, and significant impairment and litigation provisions.

• Gross profit margin dropped to 0.92% from 5.59% in 2024, reflecting persistent industry pressure and declining prices.

• Operating net cash flow improved to RMB387 million, up 208.59% year-over-year, supporting liquidity.

Financial highlights

• Total operating revenue: RMB3,457 million (2024: RMB3,487 million).

• Net loss attributable to shareholders: RMB-1,231.5 million (2024: RMB-804.2 million).

• Gross profit margin: 0.92% (2024: 5.59%).

• Net current assets: RMB-1,157.9 million (2024: RMB-313.3 million).

• Gearing ratio: 71.52% (2024: 63.20%).

• Cash and cash equivalents: RMB1,099.9 million (2024: RMB1,016.3 million).

Outlook and guidance

• 2026 budget targets a reduction in net loss attributable to the parent by at least 20% year-over-year.

• Focus on reforms, technological innovation, M&A, lean management, and talent development to stabilize and transform operations.

• No final dividend proposed for 2025 due to losses.