Financial Performance - Revenue for the six months ended June 30, 2025, was approximately HK$165,119,000, a decrease of 0.6% compared to approximately HK$166,070,000 for the same period in 2024[17]. - Net loss for the six months ended June 30, 2025, was approximately HK$13,509,000, a decrease of 43.0% compared to approximately HK$23,706,000 for the same period in 2024[17]. - Loss attributable to the owners of the Company for the six months ended June 30, 2025, was approximately HK$10,619,000, a decrease of 47.6% compared to approximately HK$20,248,000 for the same period in 2024[17]. - Basic loss per share attributable to owners of the Company for the six months ended June 30, 2025, was HK cents 0.35, compared to HK cents 0.67 for the same period in 2024[17]. - The Group recorded a pre-tax loss of approximately HK$17,156,000 for the industrial and medical waste services segment, an improvement from a pre-tax loss of HK$27,403,000 in 2024, indicating a reduction in losses by approximately 37%[27][28]. - Adjusted EBITDA for the six months ended June 30, 2025, increased by HK$8,199,000, reflecting a decrease in losses from core business segments[54]. - The loss for the period decreased to HK$13,509,000 in 2025 from HK$23,706,000 in 2024, representing a reduction of 43%[73]. - Adjusted EBITDA for the six months ended June 30, 2025, was HK$37,420,000, an increase of 28% from HK$29,221,000 in the same period of 2024[73]. Cash and Liquidity - Cash and cash equivalents of the Group as of June 30, 2025, were approximately HK$234,196,000, an increase of 6.1% compared to approximately HK$220,823,000 at December 31, 2024[17]. - The Group's liquidity position remains stable, with available unused unsecured banking facilities totaling HK$25,480,000 as of June 30, 2025[69]. - The total interest-bearing borrowings increased to HK$50,043,000 as of June 30, 2025, compared to HK$44,752,000 as of December 31, 2024, reflecting an increase of 12.9%[79]. - The current ratio improved to 1.46 times as of June 30, 2025, compared to 1.43 times as of December 31, 2024[80]. Revenue Segments - Total segment revenue from environmental treatment and disposal services for industrial and medical wastes was approximately HK$108,444,000, compared to HK$105,297,000 in 2024[18]. - For the six months ended 30 June 2025, the total revenue from the environmental treatment and disposal of industrial and medical waste services segment was approximately HK$108,444,000, compared to HK$105,297,000 in 2024, reflecting a year-on-year increase of 2%[20]. - Revenue from hazardous waste treatment and disposal services for the twelve months ended June 30, 2025, was approximately HK$227,401,000, with a total waste collected and disposed of 203,518 metric tons[58]. - The revenue from industrial sewage treatment and public utilities management services was HK$43,596,000 in 2025, down from HK$46,282,000 in 2024, indicating a decrease of approximately 5.5%[34]. - The leasing of factory buildings and facilities generated revenue of HK$13,079,000 in 2025, compared to HK$14,491,000 in 2024, reflecting a decline of approximately 9.8%[34]. Operational Metrics - The Group collected approximately 81,145 metric tonnes of hazardous wastes for treatment and disposal, an increase from 45,591 metric tonnes in 2024[18]. - The total waste collected and disposed of in the hazardous industrial waste segment was 41,586 metric tonnes in 2025, slightly down from 41,946 metric tonnes in 2024[20]. - The average utilisation rate of factory buildings and facilities decreased from 86.2% in 2024 to 80.1% in 2025[37]. - The average utilisation rate of sewage treatment capacity remained stable at around 22% for both 2024 and 2025[37]. - The Group's combined licensed waste treatment and disposal facilities capacity increased to 228,500 metric tonnes in 2025, up from 221,500 metric tonnes in 2024, representing a growth of approximately 3.5%[29]. Dividends and Shareholder Returns - The Board resolved not to declare a dividend for the six months ended June 30, 2025[17]. - Total dividends declared by Suzhou New Huamei, Danyang New Huamei, and Qingdao Huamei for 2024 amounted to approximately HK$3,704,000, slightly down from HK$3,745,000 in 2024[39]. - A final dividend of HK$0.0016 per ordinary share, totaling approximately HK$4,857,000, was recognized as a liability as of June 30, 2025, and paid on July 31, 2025[125]. Legal and Compliance Matters - The total accrued amount for legal claims from two plaintiffs was approximately HK$51,080,000 as of June 30, 2025, unchanged from December 31, 2024[101]. - The asset preservation order related to the legal proceedings will remain in effect until March 12, 2028, unless lifted earlier by the court[100]. - The ongoing lawsuit involves claims for unpaid dividends totaling approximately HK$26,579,000 per plaintiff, with additional interest claims[103]. - The property preservation order related to the lawsuit has been extended until March 12, 2028[103]. Employee and Management Information - As of June 30, 2025, the Group had 388 full-time employees, a decrease from 425 in 2024, with staff costs amounting to HK$32,024,000, down from HK$38,398,000 in 2024[105][106]. - There were no significant changes in the management team or directors' information during the reporting period[129][131]. - The Company has not made any significant changes to its principal risks and uncertainties since the last annual report for the year ended December 31, 2024[123]. Corporate Governance - The Company complied with all provisions of the Corporate Governance Code, except for the separation of roles between the Chairman and CEO, which are held by the same individual[140]. - The company believes that having the same individual serve as both Chairman and CEO enhances operational efficiency and decision-making[143]. - The company will continue to review the governance structure regarding the roles of the Chairman and CEO to ensure it aligns with best practices[143]. Share Options and Equity - As of January 1, 2025, the number of share options available for grant under the scheme was 260,109,701, which remained unchanged from December 31, 2024[146]. - No options were granted under the Share Option Scheme during the six months ended June 30, 2025[147]. - As of June 30, 2025, a total of 9,317,000 shares were vested under the Share Option Scheme, while 3,763,000 shares were cancelled due to unfulfilled vesting conditions[151]. - The options outstanding as of June 30, 2025, had a weighted average exercise price of HK$0.308, with 9,317,000 options remaining unexercised[154]. - The fair value of the remaining options granted on January 18, 2022, was approximately HK$1,092,000, with a total share option expense recognized of approximately HK$154,000 for the six months ended June 30, 2025[155]. Risks and Challenges - The Group continues to face challenges in the hazardous waste treatment market, with strategic measures significantly reducing net loss compared to the same period in 2024[42]. - The Group continues to face ongoing losses in the hazardous industrial waste treatment segment due to lower pricing pressures from manufacturing clients, particularly in Jiangsu Province, China[122].
新宇环保(00436) - 2025 - 中期财报