BE ENVIRONMENT FY 2025: Revenue Contracts 14.6% to RMB 1.42 Billion, Attributable Profit Slips 18.9%; Gross Margin Widens to 41.4%

Bulletin Express03-25

Beijing Enterprises Environment Group Ltd. (BE ENVIRONMENT, 00154) reported FY 2025 revenue of RMB 1.42 billion, down 14.6% year on year, as construction income from new incineration facilities fell 91.2% to RMB 34.25 million following the completion of the Shiyan BOT project early in the year.

Gross profit eased 2.5% to RMB 588.01 million, yet the gross margin improved to 41.4% (2024: 36.2%) on a higher mix of recurring operating income. Revenue from operational activities—household waste treatment, other waste treatment, and sales of electricity and steam—rose 8.7% to RMB 1.39 billion, offsetting part of the construction downturn.

EBITDA decreased 3.8% to RMB 683.24 million, while profit from operating activities slipped 1.7% to RMB 479.43 million. Finance costs jumped 35.4% to RMB 150.43 million, primarily reflecting an interest-rate adjustment on a shareholder loan from Idata Finance Trading to 3.5%. Consequently, profit attributable to shareholders declined 18.9% to RMB 232.18 million, and basic EPS fell to RMB 0.155.

The board proposed no dividend, unchanged from the prior year.

Balance-sheet metrics were steady: net assets attributable to shareholders increased 7.0% to RMB 3.87 billion, while net debt/ equity improved to 69.8% (2024: 82.9%). Operating cash inflow climbed 35.9% to RMB 545 million, supporting liquidity despite a current ratio of 0.90.

Operationally, BE ENVIRONMENT processed 4.59 million tonnes of household waste (+5.0%), generated 1.81 billion kWh of electricity (+4.4%), delivered 1.50 billion kWh to the grid (+3.4%), treated 601,900 tonnes of sludge (+6.3%), and supplied 339,100 tonnes of steam (+48.4%) across ten BOT and one BOO incineration projects.

Management attributes the stronger gross margin to cost controls and higher contributions from existing plants, but highlights intensifying competition, lower subsidies and cash-flow pressure ahead of the 15th Five-Year Plan. The 2026 agenda centres on profit retention, receivables recovery, cost discipline and selective expansion into emerging environmental segments.

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