Conch Venture 1H26: Revenue Climbs 22.9% to RMB 3.79 Billion, Net Profit Falls 35.4% on Lower Associate Earnings

Bulletin Express09-23

Conch Venture (CONCH VENTURE, 00586) released its unaudited interim results for the six months ended 30 June 2026.

Revenue and Profitability • Revenue rose 22.89% year-on-year to RMB 3.79 billion, driven mainly by higher waste-to-energy volumes and the ramp-up of the new energy business. • Profit before tax contracted 35.36% to RMB 900.71 million. • Net profit attributable to shareholders declined 35.38% to RMB 830.65 million, primarily because the share of profit from associate Anhui Conch Cement dropped 39.31% to RMB 509.41 million and principal-business earnings fell 28.00% to RMB 321.24 million. • Gross profit margin narrowed 9.31 percentage points to 29.07%, reflecting lower margins in energy-saving equipment, new energy materials and port logistics.

Segment Performance • Waste-to-Energy Solutions: Revenue up 3.10% to RMB 2.46 billion; operating income from 89 incineration projects remained the core contributor. • New Energy: Revenue surged 232.22% to RMB 1.03 billion on expanded lithium battery recycling and iron-phosphate cathode material sales. • Energy-Saving Equipment: Revenue fell 17.62% to RMB 212.98 million amid weaker order intake; gross margin retreated to 28.52%. • New Building Materials: Revenue slipped 18.97% to RMB 37.13 million due to softer demand and pricing pressure. • Port Logistics: Revenue dropped 37.58% to RMB 56.36 million as throughput and unit rates declined.

Cash Flow and Balance Sheet • Net operating cash inflow grew 14.0% to RMB 1.04 billion. • Net cash used in investing activities widened to RMB 680.15 million, reflecting ongoing project construction. • Net cash used in financing reached RMB 252.45 million after repaying RMB 2.70 billion of medium-term notes. • Total assets stood at RMB 85.24 billion; the debt-to-asset ratio edged up to 39.93%. • Bank loans totalled RMB 24.95 billion; an additional RMB 2.70 billion of green medium-term notes was issued in 1H26.

Dividend The board declared an interim dividend of HKD 0.15 per share, payable on 9 November 2026 to shareholders on record as of 23 October 2026.

Outlook Management will focus on improving operational efficiency in waste-to-energy, accelerating new energy material certification and capacity ramp-up, optimising cost controls, and expanding high-quality projects while maintaining a prudent capital structure.

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