Zhongyuan Environmental Protection's 2025 revenue slightly increased by 1.77%, and net profit after deducting non-recurring gains and losses grew by 7.65%

Blue Whale News, April 2—On April 2, Central Plains Environmental Protection released its 2025 performance report. The data shows that the company achieved operating revenue of RMB 5.54B, up 1.77% year over year; net profit attributable to shareholders of RMB 1.08B, up 4.16% year over year; and non-recurring items net profit of RMB 1.03B, up 7.65% year over year.

The year-over-year growth rate of non-recurring items net profit is 3.49 percentage points higher than that of net profit attributable to shareholders. This is mainly because the total amount of non-recurring gains and losses was RMB 47.9623 million, accounting for about 4.45% of net profit attributable to shareholders. Of this, government subsidies were RMB 56.7308 million, which constituted the main source of non-recurring gains and losses.

Revenue in the Henan Province region grew by 1.37% year over year, while operating costs fell by 2.83% year over year, driving the overall gross margin up by 2.29 percentage points to 46.73%. Net profit margin also increased by 0.72 percentage points to 19.41%, providing direct support for the growth of non-recurring items net profit.

In terms of business structure, revenue from wastewater treatment reached RMB 2.55B, while revenue from ecological and environmental remediation was RMB 2.21B. These accounted for 45.94% and 39.80% of total revenue, respectively. Together, the two contributed more than 80% of revenue, and the revenue mix continues to shift toward asset-heavy operation-type businesses.

Revenue from the Henan Province region accounted for 99.42% of total revenue, while revenue from other regions accounted for only 0.58%, indicating a highly localized market presence.

Net cash flow from operating activities was RMB 566 million, improving from RMB -609 million in the same period last year, an increase of 192.83% year over year. This change was mainly driven by increased sales collections during the period and a reduction in PPP project expenditures accounted for under the financial asset model.

R&D investment reached RMB 192 million, up 67.76% year over year, and as a share of operating revenue rose to 3.47%. The number of R&D personnel increased to 315, up 43.84% from the previous year.

Regarding dividends, the company plans to use 974,684,488 shares as the base, and pay a cash dividend of RMB 2.70 per 10 shares (including tax), for a total cash distribution of RMB 263 million.