Financial Performance - For the six months ended June 30, 2025, the Group's revenue was RMB 80.7 million, a decrease of 10.6% compared to RMB 90.3 million for the same period in 2024[2][3][12]. - The gross profit for the same period was RMB 16.2 million, with a gross profit margin of 20.1%, representing a decrease of 38.6% in gross profit and a decline of 9.2 percentage points in margin compared to the previous year[3][12]. - The Group recorded a net loss of RMB 9.9 million, resulting in a net loss margin of 12.3%, compared to a net loss of RMB 4.8 million and a margin of 5.3% for the same period in 2024[4][12]. - Loss attributable to owners of the Company was RMB 7.3 million, an increase from RMB 5.3 million in the prior year[5][12]. - Basic and diluted loss per share attributable to owners of the Company was RMB 0.551 cents, compared to RMB 0.395 cents for the same period in 2024[6][12]. - The loss before tax for the period was RMB 8,700,000, compared to a loss of RMB 4,388,000 in the same period last year, indicating a worsening financial position[32]. - For the six months ended June 30, 2025, the company reported a loss before tax of RMB 7,341,000, compared to a loss of RMB 5,267,000 for the same period in 2024, representing an increase in loss of approximately 39.4%[55]. - Income tax expense increased to RMB 1,186,000 in 2025 from RMB 411,000 in 2024, reflecting higher tax obligations despite losses[45]. Assets and Liabilities - Non-current assets as of June 30, 2025, amounted to RMB 320.9 million, an increase from RMB 309.9 million at the end of 2024[14][15]. - Current assets totaled RMB 442.0 million as of June 30, 2025, down from RMB 463.8 million at the end of 2024[14][15]. - Current liabilities totaled RMB 258,460,000, down from RMB 276,763,000, indicating a reduction of 6.6%[16]. - Non-current liabilities increased significantly to RMB 41,702,000 from RMB 24,877,000, representing a rise of 67.5%[16]. - Borrowings under current liabilities rose to RMB 43,348,000, up 10.4% from RMB 39,311,000[16]. - The company reported a total of RMB 504,449,000 in total assets less current liabilities, reflecting an increase of 1.1% from RMB 496,910,000[16]. - As of June 30, 2025, the Group's total assets were approximately RMB 762.9 million, with total liabilities of RMB 300.2 million, resulting in a debt-to-asset ratio of approximately 39.3%[142]. Revenue Breakdown - The solid waste treatment segment reported external sales of RMB 32,357,000, down from RMB 36,872,000, reflecting a decline of 13.6%[32]. - The oilfield auxiliary services segment generated revenue of RMB 48,352,000, a decrease of 9.9% from RMB 53,472,000 in the previous year[37]. - The hazardous waste incineration solutions segment saw revenue drop to RMB 10,994,000 from RMB 17,939,000, a decrease of 38.8%[37]. - Revenue from hazardous waste incineration solutions decreased by 38.5% from RMB 17.9 million for the six months ended June 30, 2024, to RMB 11.0 million for the same period in 2025[82]. - Revenue from oilfield auxiliary services decreased by 9.5% from RMB 53.5 million for the six months ended June 30, 2024, to RMB 48.4 million for the same period in 2025[83]. - Revenue from cement plant parallel kiln co-treatment services increased by 48.0% from RMB 12.3 million for the six months ended June 30, 2024, to RMB 18.2 million for the same period in 2025[84]. - Revenue from oil sludge thermal desorption treatment services decreased by 93.2% from RMB 5.9 million for the six months ended June 30, 2024, to RMB 0.4 million for the same period in 2025[85]. - Revenue from other services increased by 250.0% from RMB 0.8 million for the six months ended June 30, 2024, to RMB 2.8 million for the same period in 2025[86]. Expenses and Costs - The Group's administrative expenses were RMB 25.2 million, a decrease from RMB 27.1 million in the previous year[12]. - Total depreciation and amortization expenses for the first half of 2025 amounted to RMB 23,061,000, significantly higher than RMB 9,134,000 in the first half of 2024, indicating an increase of approximately 153.5%[55]. - Research and development costs increased to RMB 4,847,000 in the first half of 2025, up from RMB 3,336,000 in the same period of 2024, reflecting a growth of approximately 45.3%[55]. - Cost of services increased by 0.9% from RMB 63.9 million to RMB 64.5 million, mainly due to increased revenue from cement plant parallel kiln co-treatment services[89]. - The gross profit of hazardous waste incineration solutions decreased by 35% from RMB 11.7 million to RMB 7.6 million, mainly due to a 38.5% drop in revenue[104]. - The gross profit of oilfield auxiliary services decreased by 27.8% from RMB 9.0 million to RMB 6.5 million, primarily due to a 9.5% decrease in revenue[102]. - The gross profit of cement plant parallel kiln co-treatment services increased by 5.6% from RMB 3.6 million to RMB 3.8 million, attributed to a 48.0% increase in revenue[103]. Corporate Governance and Compliance - The financial statements are prepared in accordance with International Accounting Standards, ensuring compliance with applicable disclosure requirements[21]. - The company has established written guidelines to regulate dealings by relevant employees who may possess inside information regarding the company's securities[165]. - The company has fully complied with the corporate governance code provisions during the reporting period[163]. - The Audit Committee has reviewed the interim results for the six months ended June 30, 2025[176]. Future Outlook and Strategy - The Group plans to enhance its market position in hazardous waste incineration by improving treatment techniques and expanding customer relationships both domestically and internationally[148]. - The Group aims to capitalize on the growing demand for solid waste treatment driven by national policies supporting the industry, including initiatives for "Waste-Free City" and comprehensive utilization of bulk solid waste[144]. - The Group will explore new solid waste treatment applications, including waste plastics and waste paper residues, through the industrialization of pyrolysis technology[150]. - The Group intends to adopt various project models to enhance competitiveness and risk management in solid waste treatment projects, including the operation and maintenance services project in Karamay[151]. - The Group will actively explore the application of artificial intelligence in environmental technology to improve operational efficiency and environmental data analysis capabilities[152]. - The Group's capital strength will be leveraged to enter the solid waste treatment sector through technology cooperation, investment, and mergers and acquisitions, aiming to build an integrated environmental industry group[156]. Employee and Remuneration - The Group employed 392 employees as of June 30, 2025, an increase from 341 employees as of December 31, 2024, with over 250 personnel dedicated to R&D and project management[157]. - The Group's remuneration policy considers individual performance and market levels, with a focus on attracting and retaining skilled personnel in R&D and project execution[158]. Capital and Funding - The company raised approximately HK$259.4 million (around RMB 227.2 million) from its global offering, utilizing RMB 217.1 million, which represents approximately 95.6% of the net proceeds as of June 30, 2025[167]. - The company has reallocated unutilized net proceeds for establishing a research and engineering center, extending the expected utilization timeline from the second half of 2024 to the second half of 2026[172]. - The total utilized amount of net proceeds as of June 30, 2025, is RMB 217.1 million, with an unutilized amount of RMB 10.1 million remaining[174]. Dividends - The company did not declare or pay any dividends for the six months ended June 30, 2025, consistent with the previous year[52]. - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2025[175].
维港环保科技(01845) - 2025 - 中期业绩