China Everbright Greentech Limited Announces 2025 Annual Results: Turnaround, Strong EBITDA, and Dividend Growth

Key Financial Highlights

• Revenue: Decreased by 4% to HK\$6,729 million (2024: HK\$6,977 million)
• EBITDA: Surged by 62% to HK\$1,614 million (2024: HK\$994 million)
• Net Profit: Achieved a turnaround, with profit attributable to equity shareholders at HK\$113 million (2024: loss of HK\$415 million)
• Dividend: Final dividend of HK2.8 cents per share (2024: Nil); total dividends for the year up 300% to HK5.6 cents per share (2024: HK1.4 cents)
• Basic Earnings per Share: HK5.47 cents (2024: loss per share HK20.10 cents)
• Net Assets: HK\$12,801 million (2024: HK\$11,662 million)
• Cash & Bank Balances: HK\$2,344 million, with ample financing options and unutilised bank loan facilities of HK\$7,382 million

Major Developments and Potential Price-Sensitive Information

• Functional Currency Change: The Company changed its functional currency to Renminbi, reflecting its evolving primary economic environment and increasing operations in Mainland China. However, financial statements continue to be presented in HKD for comparability with shareholders and investors.
• Asset Impairments: Significant reduction in impairment losses on intangible assets, property, plant and equipment, goodwill and right-of-use assets—totaling HK\$615 million in 2025 versus HK\$1.175 billion in 2024. This contributed to the turnaround in profitability.
• Cost Reductions and Efficiency Gains: The Group implemented robust cost control and efficiency enhancement measures, notably in biomass fuel settlement cost (down 8.6%) and unit consumption of raw rods (down 2%). The hazardous waste segment saw unit operating cost decline by over 15%.
• Project Portfolio Optimization: Disposal of low-profit and ineffective assets, deregistration and settlement of underperforming projects, and improved collection of accounts receivable.
• Expansion & New Project Wins: 8 new projects secured, new biomass treatment capacity (+50,000 tonnes/year), bio-natural gas production capacity (+10 million cubic metres/year), solar energy installed capacity (+2.592 MW), and gas supply capacity (+727,400 tonnes/year).
• Debt Issuances:
  • First tranche of carbon neutral green ABS (RMB630 million) issued at 1.79% coupon, proceeds used for working capital and project investments.
  • Three tranches of green medium-term notes issued in 2025, totaling RMB3 billion, at low coupon rates (1.98%–2.39%) with flexible redemption options. Proceeds directed towards debt repayment, working capital, and environmental project investments.
• Technological Advancements: The Group achieved technical breakthroughs in biomass boiler combustion, developed replicable zero-carbon industrial park models, advanced digital energy and carbon management platforms, and received notable R&D awards and patents.
• ESG Leadership: Record-high 13 ESG awards, including Gold Award at HKICPA, ESG Model Enterprise, and Best ESG Report (Small-cap), reflecting industry-leading sustainability and governance practices.
• Major Customer Concentration: Revenue from a single PRC local government authority exceeded 10% of total revenue (HK\$1,817 million), indicating a significant dependence on government contracts.
• Segment Performance:
  • Integrated Biomass Utilisation: EBITDA HK\$1,942 million (+1.3%), net profit HK\$1,167 million (+2%). Heat supply and gas supply expansion buoyed results.
  • Hazardous & Solid Waste Treatment: LBITDA HK\$374 million (loss reduced by 67%), net loss HK\$757 million (loss reduced by 41%). Cost reductions and asset optimization drove improvements.
  • Environmental Remediation: LBITDA HK\$78 million (loss increased by 412%), net loss HK\$88 million (loss increased by 1,365%). Losses attributed to market slowdown and asset impairment.
  • Solar Energy & Wind Power: EBITDA HK\$192 million (+7%), net profit HK\$83 million (+13%). New projects offset wind power curtailments.

Operational and Strategic Outlook

• 2026 Prospects: The Group plans to leverage industry opportunities from China’s “15th Five Year Plan”, focusing on integrated biomass, new energy, and asset-light business models (B2B). It will deepen its core business, expand new energy applications (zero-carbon industrial parks), and optimize asset allocation for greater profitability and adaptability.
• Policy Tailwinds: New national policies on new energy marketization, zero-carbon industrial parks, and renewable energy consumption weights are expected to benefit the Group, especially in biomass power generation and carbon market participation.
• Financial Position: Gearing ratio improved to 63% (from 68%), current ratio up to 130%. Borrowings reduced to HK\$18,385 million, with most debt denominated in RMB and at floating rates.
• Risk Management: The Group actively manages trade receivables, market competition, policy changes, cost control, environmental compliance, and safety risks. It also monitors climate, cyber, and AI risks.
• Human Resources: Talent strategy focuses on both external recruitment and internal cultivation. Staff numbers total approximately 3,300, with staff costs at HK\$698 million.

Corporate Actions and Shareholder Information

• Final Dividend: HK2.8 cents per share, payable on or around 18 June 2026. Combined with interim dividend, total payouts reach HK5.6 cents per share for 2025—a 300% increase year-on-year.
• Annual General Meeting: Scheduled for 15 May 2026 in Hong Kong.
• Share Register Closures: For AGM eligibility, register closed 11–15 May 2026; for dividend, closed 22–27 May 2026.
• No Share Repurchases: No purchase, redemption or sale of listed securities by the Company or its subsidiaries in 2025.
• Corporate Governance: Full compliance with HKEx Corporate Governance Code; detailed practices to be disclosed in annual report.

Potential Price-Sensitive Implications for Investors

• Turnaround to Profitability: The shift from a substantial loss to profit, along with a sharp increase in EBITDA, is likely to positively impact share value.
• Dividend Growth: The reinstatement and 300% increase in dividends could drive investor confidence and support share price appreciation.
• Asset and Cost Optimization: Reduced impairment losses and cost controls signal improved future earnings and cash flow.
• Strong ESG Performance: Recognition for sustainability efforts may attract institutional investors and ESG-focused funds.
• Expansion and Policy Tailwinds: New project wins, technological advances, and favorable government policies position the Group for growth.
• Debt Management and Financial Strength: Reduction in borrowings and improved liquidity could lower financial risk and enhance valuation.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. All financial data and commentary are based on public disclosures by China Everbright Greentech Limited as of 31 December 2025. Investors should conduct their own research and consult professional advisors before making any investment decisions. The author is not responsible for any actions taken based on this article.

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