Executive Summary
Datang Environment reported QQ1 2025 revenue of 1,136,777,966 CNY, down 28.57% year over year and down 20.19% quarter over quarter, reflecting softer demand amid ongoing project cycle dynamics in the Environmental Protection and Energy Conservation Solutions segment. Despite revenue softness, the group delivered solid profitability, with gross profit of 270,802,916 CNY and a gross margin of 23.82%. EBITDA rose to 366,731,987 CNY, yielding an operating income of 181,296,877 CNY and a net income of 146,610,569 CNY (net margin 12.90%). The quarter also produced positive operating cash flow of 167,665,061 CNY and free cash flow of 134,378,691 CNY, underscoring cash-generative characteristics even in a downbeat revenue environment.
Key Performance Indicators
QoQ: -20.19% | YoY:-28.57%
QoQ: -27.14% | YoY:-12.65%
QoQ: 212.70% | YoY:-19.74%
QoQ: -45.09% | YoY:15.93%
QoQ: -50.00% | YoY:23.76%
Key Insights
Revenue: 1,136,777,966 CNY; YoY -28.57%, QoQ -20.19%
Gross Profit: 270,802,916 CNY; YoY -12.65%, QoQ -27.14%; Gross Margin: 23.82%
Operating Income: 181,296,877 CNY; YoY -19.74%, QoQ 212.70%
EBITDA: 366,731,987 CNY; EBITDA Margin: 32.26%
Net Income: 146,610,569 CNY; YoY 15.93%, QoQ -45.09%
EPS: 0.05 CNY; Diluted EPS: 0.05 CNY
Cash Flow: Operating cash flow 167,665,061 CNY; Free cash flow 134,378,691 CNY
Balance Sheet: Cash and equivalents 960,462,833 CNY; Total debt 2,774,316,697 CNY; Net debt 1...
Financial Highlights
Revenue: 1,136,777,966 CNY; YoY -28.57%, QoQ -20.19%
Gross Profit: 270,802,916 CNY; YoY -12.65%, QoQ -27.14%; Gross Margin: 23.82%
Operating Income: 181,296,877 CNY; YoY -19.74%, QoQ 212.70%
EBITDA: 366,731,987 CNY; EBITDA Margin: 32.26%
Net Income: 146,610,569 CNY; YoY 15.93%, QoQ -45.09%
EPS: 0.05 CNY; Diluted EPS: 0.05 CNY
Cash Flow: Operating cash flow 167,665,061 CNY; Free cash flow 134,378,691 CNY
Balance Sheet: Cash and equivalents 960,462,833 CNY; Total debt 2,774,316,697 CNY; Net debt 1,813,853,864 CNY; Total assets 15,051,669,691 CNY; Total equity 7,867,838,245 CNY; Current ratio ~1.28
Liquidity/Leverage: Net debt/EBITDA ≈ 4.95x; Current ratio ~1.28; Cash balance provides liquidity headroom for near-term capex and working capital needs.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.14B |
-28.57% |
-20.19% |
| Gross Profit |
270.80M |
-12.65% |
-27.14% |
| Operating Income |
181.30M |
-19.74% |
212.70% |
| Net Income |
146.61M |
15.93% |
-45.09% |
| EPS |
0.05 |
23.76% |
-50.00% |
Management Commentary
No earnings call transcript data provided in the supplied information. Unable to extract themes or quotes from management commentary without the transcript text. The analysis primarily relies on the QQ1 2025 financials and historical quarterly data provided.
Forward Guidance
No explicit forward guidance was published in the QQ1 2025 release. Investors should monitor: (1) order backlog and new EPC wins in Environmental Protection and Energy Conservation Solutions and related engineering services; (2) policy tailwinds from China’s environmental protection initiatives and energy conservation mandates; (3) capex cadence in coal-fired power retrofits and renewable energy EPC projects; (4) working capital dynamics and debt maturity profile; (5) ability to sustain free cash flow given ongoing capex and potential financing needs.