Everbright Water Announces 2025 Interim Results

Financial Highlights

(*ppt: percentage point)

Singapore and Hong Kong, 12 August 2025 - China Everbright Water Limited (“Everbright Water” or the “Company”; stock codes: U9E.SG and 1857.HK) ( 中 國 光 大 水 務 有 限 公 司 ), an environmental protection company focusing on water environment management, announced today the unaudited interim results of the Company and its subsidiaries (collectively, the “Group”) for the six months ended 30 June 2025 (“1HFY2025” or the “Review Period”).

In terms of operating results for 1HFY2025, the Group reported revenue of HK$3.280 billion, representing a 2% decrease from HK$3.353 billion in the corresponding period last year; EBITDA was HK$1.194 billion, roughly on par with HK$1.196 billion in the corresponding period last year; profit attributable to equity holders of the Company decreased by 3% to HK$564 million, as compared to HK$581 million in the corresponding period of last year; basic earnings per share decreased by 3% or HK0.6 cent to HK19.71 cents, from HK20.31 cents in the corresponding period of last year; overall gross profit margin stood at 42%, representing an increase of 4ppt from 38% in the corresponding period last year. The Group has maintained a healthy financial position, diversified financing channels and a portfolio of high-quality assets.

In relation to market expansion, during the Review Period, the Group withstood industry pressures and challenges in a complex and volatile market environment. It has continued to realign its business strategy, with traditional and emerging business areas progressing in tandem, while the asset-light and asset-heavy business models were further deepened. Additionally, the Group continues to drive its business expansion both within and outside mainland China through a deliberate and structured approach. Among which, the asset-light business model has been implemented across multiple business areas, covering industrial waste water treatment, equipment supply, and technological processes, with new asset-light business contracts secured in several Chinese provinces, including Hubei, Jiangsu, and Zhejiang, as well as in the Thai market. Concurrently, with a focus on addressing market-driven demands, the Group has been exploring multi-channel service solutions, pursuing opportunities within its business-to-business (ToB) model, and strategically leveraging its core advantages and resources to evaluate and capitalise on opportunities to expand its industrial value chain.

In 1HFY2025, the Group secured several asset-light projects and service contracts, with a total contract value of approximately RMB60 million and an additional designed daily industrial waste water treatment capacity of 10,000 m³. As of 30 June 2025, the Group invested in and held 170 environmental protection projects, with a total investment of approximately RMB31.63 billion. Additionally, it undertook various asset-light projects and services, such as operation and management (“O&M”), engineering, procurement and construction (EPC), EPCO (Engineering Design-Procurement-Construction-Operation), equipment supply, and technical services. The Group has a business presence in more than 60 districts, counties and cities across 13 provinces, municipalities and autonomous regions in China, in addition to overseas markets such as Mauritius. The Group’s total designed water treatment and supply capacity exceeds 7,600,000 m³/day (including O&M capacity).

In terms of operations management, during the Review Period, the Group has been improving the quality and efficiency of operations management through a dual approach of technological innovation and refined management, while further advancing the implementation of intelligent operations management. As part of its ongoing efforts to reduce costs and enhance efficiency, the Group has been continuously strengthening its refined management measures, such as optimisation of chemical types, precise chemical dosing, and energy management contracting of equipment, to further reduce the operating costs of existing projects. An efficient, high-quality digital supply chain system was developed by the Group. For revenue generation and efficiency enhancement, the Group’s water treatment projects have been exploring new business opportunities such as industrial waste water and reusable water treatment, optimising operational efficiency of existing projects and securing more than 10 business contracts for existing projects. As of 30 June 2025, solar power facilities have been put into operation at 12 projects, located in several Chinese provinces and municipalities, such as Shandong, Jiangsu and Tianjin, with a total installed capacity of approximately 20 MWp, generating around 20 million kWh of green electricity annually. In 1HFY2025, the Group secured new subsidies of approximately RMB27.50 million in total. Additionally, it treated approximately 835 million m³ of waste water and supplied approximately 20 million m³ of reusable water.

In terms of safety and environmental management, during the Review Period, the Group has been strengthening leadership and enhancing the capabilities of its employees. It organised “Safety Production Month” activities and steadily advanced the “Three-Year Action Plan for Tackling the Root Causes of Work Safety Risks”, reinforcing the foundation for business development. The Group also intensified its supervision of safety and environmental practices to safeguard the safety of frontline, thereby achieving “zero safety accidents and zero environmental incidents” across both construction and operating projects, and maintaining stable safety performance in 1HFY2025.

In the area of technological innovation, during the Review Period, the Group remained committed to its “Development Driven by Technological Innovation” strategy, focusing on market and business expansion, while addressing technical challenges encountered in operations management. This was achieved through technological innovation, the adoption of new technologies, and the development of technical reserves, in an orderly manner. In 1HFY2025, the Group was granted 3 new intellectual property rights, including 1 invention patent.

On project construction, during the Review Period, 2 projects of the Group commenced construction, with a designed daily reusable water supply capacity of 15,000 m³; and 5 projects were both completed and commenced operations, contributing an additional designed daily waste water treatment capacity of 700,000 m³.

In terms of capital market, during the Review Period, the Group continued to optimise its financing structure by adjusting loan tenors, currencies, and interest rates to reduce overall financial costs. Concurrently, the Group reinforced its trade receivables management to effectively mitigate liquidity risks, thereby strengthening support for business growth. In 1HFY2025, the Company issued the first, second and third tranches of its 2025 medium-term notes in mainland China, with an aggregate issuance size of RMB 3.2 billion.

Mr. Xiong Jianping, Executive Director and CEO of Everbright Water, said: “In 1HFY2025, Everbright Water continued to adhere to the principles of green, low-carbon, and high-quality development. The Group remains committed to a steady yet dynamic growth strategy, focusing on its core business, integrating innovation into its development processes, and ensuring operational stability, while further reinforcing its leading position in the industry. Looking ahead, with extraordinary vision, determination and measures, the Group will steadily advance its business operations by prioritising five core tasks: scale expansion, cost reduction and efficiency enhancement, trade receivable management, compliance and risk control, and organisational optimisation. Driven by its commitment to high-quality development, the Group remains steadfast in transforming from a “traditional water service operator” to a “technology-driven environmental service provider.”

Mr. Luan Zusheng, Non-Executive Director and Chairman of Everbright Water, said: “Under the guidance of its ‘Peaking Carbon Dioxide Emissions and Achieving Carbon Neutrality’ (‘Dual Carbons’) goals, China has accelerated its green transformation in both economic and social development, significantly driving its high-quality growth. At the same time, China’s environmental protection industry continues to undergo significant structural adjustments and upgrades, actively pursuing a path of sustainable and high-quality growth. Commemorating the 20th anniversary of the ‘lucid waters and lush mountains are invaluable assets’ concept and the 5th anniversary of China’s ‘Dual Carbons’ goals, the Group remains committed to accessing and seizing development opportunities within the environmental protection industry. Guided by the overarching principle of making progress with stability and promoting stability through progress, the Group will prioritise sustainable scale growth alongside continuous efficiency improvement. By implementing all operational and development works in a solid and orderly manner, the Group is committed to pursuing high-quality development, thereby enhancing shareholder value and making a contribution to ecological civilisation progress and sustainable development.”

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