Executive Summary
China Conch Environment Protection Holdings Limited delivered a modest top-line contraction in QQ1 2025, reporting revenue of 388.59 million CNY (-3.34% YoY; -55.99% QoQ) with a stable gross margin of approximately 31.7%. EBITDA stood at 119.07 million CNY, yielding an EBITDA margin of about 30.6%, while operating income was 32.38 million CNY (8.33% operating margin). Net income was a small positive 2.16 million CNY, reflecting a YoY deterioration (-94.7%) but a solid QoQ rebound (+102.9%), aided by a favorable operating cadence and a reduction in some cost line items on a sequential basis. The quarter benefited from a robust depreciation/amortization burden (88.17 million CNY), underscoring a heavy asset base and non-cash charges that compress net profitability despite healthy EBITDA. Total other income/expenses were negative (-31.05 million CNY), which weighed on pretax profitability and taxes (income tax expense of 5.85 million CNY) relative to pretax income of 1.33 million CNY.
From a business-health perspective, the company continues to generate meaningful EBITDA in a capital-intensive waste-treatment business, with an EBITDA margin in the low-30% range signaling operating-scale efficiency. However, the bottom line remains highly sensitive to non-operating items and tax treatment, and profitability remains below the scale of peers in some characteristics due to one-off and non-cash items. Investors should monitor the trajectory of other income/expenses, tax position, and any potential capex-driven cash flow implications as the company scales its cement-kiln waste treatment solutions and related recycling/consulting services. Overall, QQ1 2025 suggests resilience in core operations but highlights the need for clearer improvement in net profitability and cash flow conversion going forward.
Key Performance Indicators
QoQ: -55.99% | YoY:-3.34%
QoQ: -54.33% | YoY:-31.53%
QoQ: 126.53% | YoY:-60.65%
QoQ: 102.85% | YoY:-94.73%
QoQ: 102.88% | YoY:-94.00%
Key Insights
Revenue: 388,592,000 CNY; YoY -3.34%; QoQ -55.99%
Gross Profit: 123,126,500 CNY; Gross Margin 31.69%; YoY -31.53%; QoQ -54.33%
Operating Income: 32,380,000 CNY; Operating Margin 8.33%; YoY -60.65%; QoQ +126.53%
EBITDA: 119,068,000 CNY; EBITDA Margin 30.64%
Net Income: 2,162,500 CNY; Net Margin 0.56%; YoY -94.73%; QoQ +102.88%
EPS: 0.0012 CNY; Diluted EPS: 0.0012 CNY; Weighted Avg Shares: 1,827,979,712
D&A (Depreciation & Amortization): 88,169,500 CNY
Income Before Tax: 1,331,500 CNY; Pre...
Financial Highlights
Revenue: 388,592,000 CNY; YoY -3.34%; QoQ -55.99%
Gross Profit: 123,126,500 CNY; Gross Margin 31.69%; YoY -31.53%; QoQ -54.33%
Operating Income: 32,380,000 CNY; Operating Margin 8.33%; YoY -60.65%; QoQ +126.53%
EBITDA: 119,068,000 CNY; EBITDA Margin 30.64%
Net Income: 2,162,500 CNY; Net Margin 0.56%; YoY -94.73%; QoQ +102.88%
EPS: 0.0012 CNY; Diluted EPS: 0.0012 CNY; Weighted Avg Shares: 1,827,979,712
D&A (Depreciation & Amortization): 88,169,500 CNY
Income Before Tax: 1,331,500 CNY; Pretax Margin: 0.34%
Income Tax Expense: 5,848,000 CNY; Net Income/Loss appears to reflect nuances in tax/other income lines; Net Income Margin 0.56%
EBITDARatio: 0.3064; OperatingIncomeRatio: 0.0833; NetIncomeRatio: 0.00556
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
388.59M |
-3.34% |
-55.99% |
| Gross Profit |
123.13M |
-31.53% |
-54.33% |
| Operating Income |
32.38M |
-60.65% |
126.53% |
| Net Income |
2.16M |
-94.73% |
102.85% |
| EPS |
0.00 |
-94.00% |
102.88% |
Management Commentary
No transcript data provided in the supplied dataset. Management commentary themes and quotes could not be extracted. If available, expected discussion topics would likely cover:
- Strategy: progress on cement kiln waste treatment deployment, scalability of resource recycling and technical consulting services.
- Operations: utilization of treatment capacity, cost control, and efficiency gains.
- Market Conditions: demand dynamics in industrial solid/hazardous waste, regulatory tailwinds in China, and client diversification.
Forward Guidance
No official management forward guidance was disclosed in the provided materials. Given the industry backdrop and QQ1 2025 performance, investors should consider the following scenario-based view: base case assumes continued moderate growth in China's industrial waste treatment demand with ongoing capex by cement and other heavy industries, potentially lifting EBITDA efficiency as capacity utilization improves. Risks include policy shifts affecting waste treatment subsidies, price competition in a fragmented market, and higher-than-expected non-operating charges that dampen net profitability. Monitoring points: (1) trajectory of other income/expenses and tax positions; (2) quarterly capex intensity and depreciation burden; (3) utilization rates of treatment facilities; (4) any management commentary on project execution timelines and regional expansion.