Zheneng Jinjiang Environment Holding Company Limited: FY2025 Financial Results Analysis
Zheneng Jinjiang Environment Holding Company Limited (“the Group”), a leading waste-to-energy (WTE) operator in China, recently released its unaudited condensed financial statements for the six months and full year ended 31 December 2025. This analysis reviews the company’s key financial metrics, trends, dividend policy, operational highlights, and outlook, providing insights for investors considering their next move.
Key Financial Metrics & Performance Table
| Metric |
2H2025 |
1H2025 |
2H2024 |
YoY Change (2H) |
QoQ Change |
| Revenue (RMB’000) |
1,963,012 |
1,821,858 |
1,919,419 |
+2.3% |
+7.7% |
| Gross Profit (RMB’000) |
699,146 |
699,121 |
699,940 |
-0.1% |
0.0% |
| Net Profit Attributable to Equity Holders (RMB’000) |
392,759 |
332,018 |
411,577 |
-4.6% |
+18.3% |
| Basic & Diluted EPS (RMB cents) |
27.34 |
23.03 |
28.38 |
-3.7% |
+18.7% |
| Final Dividend (SGD cents/share) |
3.70 |
– |
2.30 |
+60.9% |
N/A |
Full Year Comparison
| Metric |
FY2025 |
FY2024 |
YoY Change |
| Revenue (RMB’000) |
3,784,870 |
3,731,074 |
+1.4% |
| Gross Profit (RMB’000) |
1,398,267 |
1,335,152 |
+4.7% |
| Net Profit Attributable to Equity Holders (RMB’000) |
724,777 |
618,483 |
+17.2% |
| Basic & Diluted EPS (RMB cents) |
50.37 |
42.59 |
+18.3% |
| Final Dividend (SGD cents/share) |
3.70 |
2.30 |
+60.9% |
Historical Performance Trends and Highlights
- Revenue: Marginal growth of 1.4% YoY, with the WTE business remaining the primary revenue driver. Construction service revenue under BOT concession agreements surged by 113.6% YoY, though from a small base.
- Gross Profit: Increased 4.7% YoY on improved gross margin (36.94% in FY2025 vs. 35.78% in FY2024), driven by technical upgrades, cost reductions, and more income from by-products.
- Net Profit: Rose 17.2% YoY, reflecting stronger operational efficiency despite forex losses and absence of certain one-off gains recognised in the previous year.
- EPS: Grew 18.3% YoY, indicating robust profitability.
- Dividend: Proposed final dividend of 3.70 Singapore cents per share, a 60.9% increase from the prior year, reflecting confidence in cash flows and earnings quality.
- Balance Sheet: Net assets increased by 6.4% to RMB 8.21 billion. The company remains in a negative working capital position due to short-term borrowings, though management is confident in refinancing and ongoing support from its state-owned parent.
Exceptional Items and Noteworthy Events
- Foreign Exchange and Derivative Losses: FY2025 saw net other losses of RMB 50.5 million (vs. RMB 1.4 million gain in FY2024), mainly due to forex losses on USD debt repayment and derivative losses as all USD loans were repaid or replaced with RMB loans.
- Impairments: Impairment losses of RMB 11.9 million were recognised on advances for unrecoverable equipment, based on arbitration outcomes.
- Share Buybacks: The company repurchased 11,207,000 treasury shares in FY2025, increasing treasury shares held to 1.39% of total shares.
- Related Party Transactions: Material related-party transactions occurred, especially with Zheneng Group and joint ventures, including interest income, capital injections, and purchases of materials/services.
- Dividend Recommendation: Final dividend of 3.70 SGD cents per share, tax-exempt, subject to shareholder approval.
Chairman’s Statement and Tone
Chairman Wei Dongliang’s statement reflects a generally positive and confident tone, highlighting operational improvements, government policy support, successful project additions, and strengthened market positioning.
“In 2H2025, the Group continued to focus on high-quality development, high-efficiency operation, and high-level expansion, comprehensively promoting the optimization of existing operating projects, the advancement of ongoing projects, and the implementation of new projects. Amid intensified industry competition and policy adjustments, the Group achieved improvements in project operation efficiency, expanded production capacity, and optimization of business layout.”
The Chairman also notes the company’s progress in project development, technology upgrades, and receipt of industry awards, emphasizing a proactive approach to policy shifts and competition.
Key Risks, Operational and Macro Environment Factors
- Negative Working Capital: The Group’s current liabilities continue to exceed current assets due to short-term borrowings. Management expects to address this with refinancing and support from its parent company.
- Policy Support: Recent PRC government policies favor renewable energy, PPP contract enforcement, and central funding for green upgrades. These are expected to benefit the Group’s business stability and expansion.
- Project Pipeline: As of end-2025, the Group has 28 operational WTE facilities, 5 kitchen waste facilities, 8 recycling facilities, and 5 projects under construction, with significant capacity in the planning stage.
- Receivables and Compensation: The Group is pursuing compensation for the closure of certain facilities, with delays possible due to local government finances and real estate market weakness.
Dividend Policy and Shareholder Returns
- Proposed Final Dividend: 3.70 SGD cents per share, up from 2.30 SGD cents last year.
- Dividend is tax-exempt in shareholders’ hands.
- Dividend payment date: To be announced, subject to shareholder approval.
Conclusion & Investment Recommendations
Overall Assessment: The Group delivered resilient financial results for FY2025, with improved profitability, higher EPS, and a significant increase in proposed dividends. Despite a challenging macro environment, higher project-related costs, and negative working capital, the company’s operational cash flows, policy tailwinds, and strong parent support underpin its stability. The tone of the Chairman’s statement and dividend hike both signal management’s confidence in future prospects.
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If you currently hold the stock:
The consistent earnings growth, robust cash generation, and increased dividend suggest that holding the stock is warranted for now. Continue to monitor working capital and debt refinancing progress. Dividend yield support and sector policy tailwinds provide a reasonable cushion.
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If you do not currently hold the stock:
The stock offers improving fundamentals and attractive dividend growth, making it a candidate for portfolio inclusion, especially for investors seeking exposure to Chinese renewable energy and environmental infrastructure. However, consider the risks around short-term liquidity and dependency on government support before initiating a position.
Disclaimer: This article is based strictly on the company’s published financial report and does not constitute investment advice. Past performance is not necessarily indicative of future results. Investors should perform their own due diligence or consult a qualified financial advisor before making any investment decision.
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