Everbright Water Announces 2026 Interim Results

Financial Highlights

(*ppt: percentage point)

Singapore and Hong Kong SAR of China, 11 August 2026 - China Everbright Water Limited (“Everbright Water” or the “Company”; stock codes: U9E.SGX and 1857.SEHK) (中國光大水務有限公司), an environmental protection company dedicated to 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 2026 (“1HFY2026” or the “Review Period”).

In terms of operating results for 1HFY2026, the Group reported revenue of HK$2.392 billion, representing a 27% decrease from HK$3.280 billion in the corresponding period last year; EBITDA was HK$1.078 billion, representing a 10% decrease from HK$1.194 billion in the corresponding period last year; profit attributable to equity holders of the Company decreased by 8% to HK$517.56 million, as compared to HK$563.76 million in the corresponding period last year; basic earnings per share decreased by 8% or HK1.62 cents to HK18.09 cents, from HK19.71 cents in the corresponding period last year; overall gross profit margin stood at 51%, representing an increase of 9ppt from 42% in the corresponding period last year.

During the Review Period, the Group remained committed to its long-term development strategy, reinforcing the fundamentals of its asset-heavy business model, and continuously deepened refined operations management. In terms of efficiency improvement, the Group established a “three-in-one” operational diagnostic mechanism integrating performance evaluation, process reliability monitoring, and equipment digitalisation oversight and implemented targeted technological upgrades to address energy and material consumption issues in production and operation of projects, thereby fostering a steady increase in capacity utilisation rate of each project. With respect to cost reduction, through a variety of comprehensive measures such as process optimisation, substitution with low-carbon sources, intelligent project monitoring, and centralised procurement of bulk materials, the Group effectively offset the operational pressure caused by fluctuations in chemical prices, achieving a year-on-year reduction in unit cost of chemicals for waste water treatment. In terms of revenue increase, the Group further obtained various subsidies of approximately RMB12 million in total. Two of the Group’s waste water treatment plants were approved to increase the waste water treatment service fees, ranging from 8% to 35%, thereby increasing operating revenue and improving profitability. In terms of safety and environmental management, the Group continuously optimised the dual-prevention mechanism – comprising risk classification control, and hazard investigation and rectification – leveraging digital and intelligent means, thereby advancing the digital and intelligent transformation of safety and environmental management and strictly upholding the bottom line of safe and environmentally compliant operations. During the Review Period, all of the Group’s projects under construction and in operation achieved the control targets of “Dual Zero” (zero safety incidents and zero environmental incidents). During the Review Period, the Group treated approximately 888.71 million m³ of waste water, supplied approximately 46.42 million m³ of raw water and supplied approximately 19.97 million m³ of reusable water. In terms of project construction, during the Review Period, 4 projects of the Group commenced construction, with a designed daily water treatment capacity of 30,000 m³; and 2 projects were completed and commenced operations, contributing a designed daily water treatment capacity of 20,000 m³.

In terms of market expansion, the Group adhered to the strategy of “synergistic development of asset-light and asset-heavy businesses”, seized structural opportunities in the industry, and achieved steady business expansion. In terms of the advantageous core business, the Group secured Huai’an Huaiyin Eastern District Waste Water Treatment Project Phase III in Jiangsu Province, continuously consolidating the foundation of its core business. For emerging businesses, the Group closely tracked policy guidance and market demands, proactively deploying in segments such as electronic industrial waste water advanced treatment and agricultural non-point source pollution. It conducted market research and built technological pipelines, and continuously expanded the market coverage of the Group’s business. In terms of asset-light business, the Group conducted technical verification and model refinement leveraging internal project scenarios, gradually developing a full-chain service capability covering technical solutions, core equipment, and operations management, and replicating and promoting the same to external markets. During the Review Period, the Group successively secured and implemented a number of asset-light businesses, including the supply of linear valve equipment for Anyang Municipal Waste Water Treatment Centre Phase I Project in Henan Province. In 1HFY2026, the Group invested in and implemented one new project, with a total investment value of approximately RMB90.40 million. In addition, it undertook various asset-light projects and services with a total contract value of approximately RMB68.50 million. The newly secured projects contributed an additional designed daily water treatment capacity of 20,000 m³.

As of 30 June 2026, the Group invested in and held 173 environmental protection projects, with a total investment of approximately RMB31.94 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, autonomous regions and municipalities in the Chinese Mainland, in addition to overseas markets such as Mauritius. The total designed daily water treatment and supply capacity of the Group’s projects exceeded 7,600,000 m³ (including O&M capacity).

In terms of trade receivables and liquidity management, the Group has made the collection of trade receivables as its annual core focus. It systematically deployed and coordinated efforts across three dimensions, namely intensifying collection efforts, optimising financing, and safeguarding liquidity. In terms of trade receivables collection, the Group has seized the opportunity presented by China’s debt resolution policies, implemented dynamic ledger management, executed collection plans on a case-by-case basis, and strengthened coordination and liaison with local governments in China to make every effort to secure priority settlement of service fees. For liquidity management, the Group closely monitored interest rate and exchange rate movements, flexibly utilised diversified financing instruments, optimised debt maturity structures, continuously reduced financing costs and maintained ample credit facilities. At the same time, it strengthened the comprehensive coordination of cash flows and scientifically arranged operational and construction expenditures as well as principal and interest repayment schedules for every project. During 1HFY2026, the Group’s net cash inflow from operating activities amounted to HK$51.13 million. In terms of new projects, the Group will continue to conduct scientific evaluations in a prudent manner based on local fiscal conditions in China, strengthen full-cycle cash recovery projections, and safeguard the stability of cash recovery at source to ensure the security of the cash flow and the quality of services.

In terms of technological innovation, the Group focused on deploying technologies across the entire “water-related” industry chain, steadily advanced the research and development and industrial application of proprietary technologies, and achieved positive progress during the Review Period. For technological breakthroughs and commercialisation, the Group successfully developed new technologies and equipment, notably the EBDAS™ High Density Sludge Integrated Technological Processes and the intelligent liquid chemical quality management system, which have already been applied in multiple projects. The 6 self-developed technological achievements, including high-density sedimentation tank, were successfully commercialised, and 8 new intellectual property rights were granted (including 2 invention patents). In terms of digital and intelligent operation demonstrations, the Intelligent Demonstration Centre 2.0 version at the Ji’nan East Station Area Underground Waste Water Treatment Project in Shandong Province was completed, marking the Group’s implementation of a new-generation project management model featuring “minimal staffing, high-efficiency operations and intelligent control”. Such progresses and achievements have further strengthened the Group’s core technical capabilities, laying a solid technological foundation for enhancing the operating efficiency of existing assets and the commercialisation of its asset-light business products.

Mr. Xiong Jianping, Executive Director and CEO of Everbright Water, said: “In 1HFY2026, guided by its strategic positioning as ‘an environmental protection company dedicated to water environment management’, Everbright Water achieved a steady growth in both business scale and operational performance by steadily advancing the implementation and operation of projects, and pursuing the industrial deployment of its technological innovation, while balancing the enhancement of operational quality and efficiency with risk prevention, seizing growth opportunities arising from the high-quality development of the industry. Looking forward, Everbright Water will continue to adhere to its overarching principle of ‘Making Progress with Stability’ and remain focused on its strategic priorities. The Group will continue to drive progress across seven key priorities, including improving operational quality and efficiency, achieving market breakthroughs, enhancing technology-driven capabilities, strengthening procurement governance, reinforcing safety and environmental frameworks, securing capital support, and strengthening its talent pipeline. It will increase its efforts in specialised areas such as industrial waste water treatment and agricultural non-point source pollution control. Leveraging its robust foundation in asset-heavy businesses, the Group will steadily drive the productisation and brand development of its asset-light businesses, while accelerating the large-scale expansion of its technological achievements and service models into external markets. At the same time, the Group will closely monitor industry trends and changes in market demand, and fully advance its operational priorities for the entire year, so as to continue delivering long-term value to all stakeholders.”

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