SIIC Environment Holdings Ltd. reported net profit attributable to shareholders of RMB325.2 million for the six months ended Jun 30, 2026, down 5.5% year-on-year, as marginal revenue growth was offset by a softer gross margin. The bottom-line decline was cushioned by an 18.4% reduction in finance expenses.
Earnings per share slipped to 12.63 RMB cents from 13.37 cents a year earlier. The company did not declare an interim dividend.
Revenue inched up 0.2% YoY to RMB3.19 billion. Operating and maintenance income from service-concession arrangements, together with related finance income, contributed RMB2.57 billion, or 81% of the top line. Service income from the Group’s expanding asset-light businesses almost doubled to RMB215 million, a 79.4% YoY increase, while construction revenue came in at RMB205 million. Profit before tax fell 4.0% to RMB625 million as the gross profit margin narrowed by 0.7 percentage point to 38.9%.
Management attributed the profit contraction chiefly to a slight dip in margin, although this was partly mitigated by tighter cost control and diversified funding sources that drove finance expenses down to RMB286 million. The debt-to-asset ratio improved to 61.8% from 63.8% a year earlier, and the current ratio rose to 147%. Net operating cash inflow stood at RMB547 million, with cash and cash equivalents of RMB2.85 billion supporting liquidity.
During the half, SIIC Environment advanced its “optimising existing assets and pursuing external expansion” agenda. Subsidiary Longjiang Environmental Protection acquired full ownership of Qingchang Water Services and Qinglang Water Services for RMB270 million, adding 230,000 tonnes per day of wastewater-treatment capacity. The Group also took over two projects in Dalian Lüshun Economic Development Zone and brought the 12,000-tonne-a-day Shanghai Hangzhou Bay industrial wastewater O&M project onstream. New contracts include the 70,000-tonne-a-day Sino-Italy Ningbo Eco-Park facility, while capacity upgrades at several plants in Fujian, Shandong and Jiangsu were completed.
Looking ahead, SIIC Environment plans to capitalise on supportive national policies that promote ecological protection, carbon reduction and water-quality improvement. Management signalled continued focus on high-quality project development, strategic mergers and acquisitions, and expansion into reclaimed water, industrial water and desalination. The company also intends to leverage green-finance instruments, such as the People’s Bank of China’s carbon-reduction support tools, to lower borrowing costs and fund growth.
Chief executive officer Ji Guanglin said the firm would maintain its “steady yet progressive” approach, stressing operational upgrades, digitalisation and lean management to lift efficiency. He indicated that the ongoing construction and stable operation of flagship projects—such as Shanghai’s Baoshan Renewable Energy Utilisation Centre and the Qingpu Xicen Water Purification Plant—will underpin future earnings while the Group scales its footprint across China during the 15th Five-Year Plan period.