Zonqing Environmental sees revenue dip as market softens, competition intensifies

Zonqing Environmental Limited's interim report for the six months ended June 30, 2025, shows a slight revenue decrease of RMB13.7m, down 1.8% to RMB761.9m from RMB775.6m in 1H2024. This was primarily due to fewer major contracts and intensified industry competition. Gross profit also declined by 13.9% to RMB151.0m from RMB175.4m in the prior period. Despite the overall dip, city operation and maintenance services saw a 5.2% revenue increase to RMB121.6m, and cultural tourism revenue surged by 112.5% to RMB17.0m.

The group's profit for the period was RMB36.3m, a decrease from RMB43.4m in 1H2024. Basic and diluted earnings per share remained stable at RMB4 cents. Cash and cash equivalents stood at RMB47.2m as of June 30, 2025, down from RMB122.8m at the end of 2024, with borrowings totaling RMB889.5m. The company aims to consolidate and expand its services and expects to recover some long-term trade receivables to alleviate financial pressure.