Financial Performance - Revenue for the six months ended June 30, 2025, was HKD 18,984,000, a decrease of 0.6% compared to HKD 19,099,000 for the same period in 2024[9] - Gross profit for the same period was HKD 5,551,000, down 21% from HKD 7,027,000 in 2024[9] - Operating loss for the six months was HKD 16,220,000, compared to an operating profit of HKD 7,710,000 in the previous year[9] - The net loss for the period was HKD 27,457,000, significantly higher than the net loss of HKD 6,470,000 in 2024[11] - Total comprehensive loss for the period amounted to HKD 35,847,000, compared to HKD 9,321,000 in the same period last year[11] - For the six months ended June 30, 2025, the company reported a loss of HKD 25,909,000, compared to a loss of HKD 6,470,000 for the same period in 2024[15] - The company experienced a total segment loss of HKD 14,759,000 for the six months ended June 30, 2025, compared to a profit of HKD 642,000 in the same period of 2024[29] - The attributable loss to shareholders increased to approximately HKD 27,457,000, compared to HKD 6,470,000 for the same period in 2024[58] Revenue Breakdown - Revenue from the wastewater treatment segment was HKD 17,848,000, down from HKD 19,099,000 in the previous year, representing a decrease of approximately 6.5%[27] - The energy management segment generated revenue of HKD 1,136,000, with no revenue reported in the same period last year[27] - The total customer contract revenue for the six months ended June 30, 2025, was HKD 18,984,000, compared to HKD 19,099,000 in 2024, indicating a slight decline of 0.6%[27] Assets and Liabilities - Current liabilities increased to HKD 477,526,000 from HKD 451,256,000 as of December 31, 2024[12] - Non-current assets totaled HKD 2,565,000, a slight decrease from HKD 2,685,000 as of December 31, 2024[12] - The company’s total equity attributable to owners was HKD (610,533,000), worsening from HKD (576,178,000) in the previous year[14] - Total trade and other payables as of June 30, 2025, were HKD 465,796,000, up from HKD 435,680,000 as of December 31, 2024[41] - The company’s total borrowings as of June 30, 2025, amounted to HKD 153,938,000, compared to HKD 150,928,000 as of December 31, 2024[44] Cash Flow and Investments - The total cash and cash equivalents at the end of the period were HKD 1,705,000, a decrease from HKD 6,604,000 at the end of June 2024[18] - The cash used in operating activities was HKD 3,095,000, an improvement from HKD 4,044,000 in the previous year[18] - The company invested approximately HKD 7,000,000 in property, plant, and equipment for the six months ended June 30, 2025, compared to zero investment in the same period in 2024[39] Shareholder Information - The company reported a basic and diluted loss per share of HKD 7.56, compared to HKD 2.78 in the prior year[11] - Basic and diluted loss per share for the six months ended June 30, 2025, was HKD 0.0757, compared to HKD 0.0278 in 2024, based on a weighted average of 342,698,000 shares in 2025 versus 232,619,000 shares in 2024[37] - Major shareholders include Classy Jade with 53,429,000 shares (15.59%), and Zhang Zihong with 88,580,000 shares (25.85%)[77] Corporate Governance - The company has established a formal internal audit department to manage and oversee internal control procedures, ensuring compliance and risk management[84] - The company has complied with the corporate governance code as outlined in the listing rules during the six months ending June 30, 2025[83] - The audit committee consists of three independent non-executive directors[86] - Discussions regarding audit, internal controls, and financial reporting were held by the audit committee[86] Future Outlook - The company aims to focus on the market for existing equipment upgrades, driven by increased demand for environmental equipment renewal following the State Council's implementation of the large-scale equipment renewal plan[60] - The group remains optimistic about business development in the second half of the year, focusing on core competitiveness and opportunities in equipment upgrades and new power system construction[63] Stock Options and Securities - The company has a stock option plan in place, with a total of 10,808,000 options unexercised as of June 30, 2025[57] - The stock options granted to directors and employees are priced at HKD 0.50 per share, with various expiration dates extending to May 10, 2030[75] - The total number of securities that can be issued under the stock option plan by June 30, 2025, is 10,808,000 shares, representing 3.15% of the company's issued share capital as of that date[73]
中国环保科技(00646) - 2025 - 中期财报