Datang Environment (1272.HK) Q4 2024 Earnings Report

Datang Environment Industry Group Co Ltd delivered a pronounced top-line rebound in QQ4 2024, with revenue of 3.1678 billion CNY and a gross profit of 586.96 million CNY, yielding a gross margin of 18.53%. Net income for the quarter was 149.21 million CNY, and earnings per share stood at 0.08 CNY. Free cash flow generated to shareholders reached approximately 961.54 million CNY for the period, underscoring meaningful cash generation despite a leveraged balance sheet. The company’s operating cash flow was 1.1771 billion CNY, while capital expenditures totaled 215.53 million CNY, resulting in a robust FCF profile in QQ4 2024.

From a balance-sheet perspective, Datang maintains solid absolute liquidity with 994.75 million CNY of cash and equivalents, and total assets of 15.35 billion CNY against total liabilities of 7.84 billion CNY, yielding an equity base of 7.71 billion CNY. Leverage remains meaningful but manageable: total debt ~3.92 billion CNY, net debt ~2.93 billion CNY, and a debt-to-equity ratio of ~0.51. The company exhibits a current ratio of ~1.35 and a quick ratio of ~1.32, suggesting adequate short-term liquidity.

Operationally, the QQ4 2024 results reflect a sharp year-over-year revenue uplift (YoY ~99.1%) and notable free cash flow generation, but the quarterly operating income is not disclosed in the dataset. EBITDA was 551.61 million CNY, and the EBITDA margin stood at about 17.41%. Net income margin was ~4.71%. The strong FCF and solid liquidity co-exist with a capital-light profile in the context of a capital-intensive environmental services business and a reliance on Chinese power-generation-related environmental solutions.