Straits Environmental Protection released its 2026 interim report. During the reporting period, it achieved operating revenue of 629 million yuan, down 3.47 percent year on year, while net profit attributable to the parent company was 144 million yuan, up 16.17 percent year on year, and non-GAAP net profit was 138 million yuan, up 18.60 percent year on year. The company plans to distribute a cash dividend of 0.41 yuan per 10 shares, totaling approximately 23.37 million yuan. Notably, net cash flow from operating activities was negative 98 million yuan, turning from positive to negative, mainly due to a decline in sales collections and the payment of a large performance guarantee deposit. The profit growth was driven by lower financial expenses, the commissioning of new projects, and cost control, but the deterioration in operating cash flow has drawn attention. The company's business is mainly concentrated in Fujian, with sewage treatment volume up 6.18 percent year on year, and new projects coming online one after another providing gross profit growth points. Going forward, attention should be paid to accounts receivable recovery and the ramp-up of new project capacity.
Haixia EnvrnmntRevenue down but profits up; operating cash flow turned negative, raising concerns.
