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 the same period in 2024[12] - The Group's 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% and a decline of 9.2 percentage points, respectively[13] - The net loss for the six months ended June 30, 2025, was 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[14] - Loss attributable to owners of the Company was RMB 7.3 million, compared to RMB 5.3 million for the same period in 2024[14] - Basic and diluted loss per share attributable to owners of the Company was RMB 0.551 cents, an increase from RMB 0.395 cents for the same period in 2024[15] - Revenue decreased by 10.6% from RMB 90.3 million for the six months ended June 30, 2024, to RMB 80.7 million for the six months ended June 30, 2025, primarily due to declines in hazardous waste incineration and oilfield auxiliary services[43] - The Group recorded a net loss of RMB 9.9 million for the six months ended 30 June 2025, with a net loss margin of 12.3%, compared to a net loss of RMB 4.8 million and a net loss margin of 5.3% for the same period in 2024[80] - The total comprehensive loss for the period was RMB 9,886,000, compared to RMB 4,799,000 in 2024, indicating a 106.0% increase in losses[171] Revenue Breakdown - Revenue from hazardous waste incineration solutions decreased by 38.5% from RMB17.9 million for the six months ended June 30, 2024, to RMB11.0 million for the same period in 2025[38] - Revenue from oilfield auxiliary services decreased by 9.5% from RMB53.5 million for the six months ended June 30, 2024, to RMB48.4 million for the same period in 2025[39] - Revenue from cement plant parallel kiln co-treatment services increased by 48.0% from RMB12.3 million for the six months ended June 30, 2024, to RMB18.2 million for the same period in 2025[40] - Revenue from oil sludge thermal desorption treatment services decreased by 93.2% from RMB5.9 million for the six months ended June 30, 2024, to RMB0.4 million for the same period in 2025[41] - The solid waste treatment segment generated external sales of RMB 32,357,000, down 12.8% from RMB 36,872,000 in 2024[195] - The oilfield auxiliary services segment reported external sales of RMB 48,352,000, a decline of 9.9% from RMB 53,472,000 in 2024[195] - Revenue from hazardous waste incineration solutions decreased by 38.4% to RMB 10,994,000[199] Project and Capacity Updates - The Group completed 51 hazardous waste incineration projects before 2025, with an aggregate designed disposal capacity of 1,222,500 tonnes per annum[21] - In the first half of 2025, the Group completed a hazardous waste incineration project with a designed disposal capacity of approximately 30,000 tonnes per annum[21] - As of June 30, 2025, the Group had 5 ongoing hazardous waste incineration projects across 5 cities in the PRC, with a total designed disposal capacity of approximately 131,000 tonnes per annum[21] - The Group's new pyrolysis solid waste treatment project has a designed disposal capacity of 220,000 tonnes per annum, with trial operations expected to commence in Q3 2025[33] Cost and Expenses - Gross profit decreased by 38.6% from RMB 26.4 million to RMB 16.2 million, with gross profit margin declining from 29.3% to 20.1%[54] - Gross profit from hazardous waste incineration solutions decreased by 35% from RMB 11.7 million to RMB 7.6 million, primarily due to a 38.5% decrease in revenue[60] - Gross profit from oilfield auxiliary services decreased by 27.8% from RMB 9.0 million to RMB 6.5 million, mainly due to a 9.5% decrease in revenue[58] - Gross profit from 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[59] - The Group's administrative expenses decreased by 7.0% from RMB27.1 million for the six months ended 30 June 2024 to RMB25.2 million for the six months ended 30 June 2025[69] - Research and development costs increased by 45.5% from RMB3.3 million for the six months ended 30 June 2024 to RMB4.8 million for the six months ended 30 June 2025, attributed to increased R&D costs for pyrolysis solid waste treatment[70] Cash Flow and Financial Position - Cash and cash equivalents increased to approximately RMB65.9 million as at June 30, 2025, compared to RMB49.8 million as at December 31, 2024[96] - The net cash generated from operating activities for the six months ended June 30, 2025, was RMB 31,599,000, a significant improvement compared to a net cash used of RMB 27,567,000 in the same period of 2024[177] - The Company reported a net cash used in investing activities of RMB 32,524,000 for the six months ended June 30, 2025, compared to RMB 3,754,000 in the prior year, primarily due to increased purchases of property, plant, and equipment[177] - Financing activities generated a net cash inflow of RMB 17,078,000 for the six months ended June 30, 2025, compared to RMB 10,627,000 in the same period of 2024[177] - The Group's borrowings increased to RMB81.0 million as at June 30, 2025 from RMB61.8 million as at December 31, 2024, secured by the Group's assets[91] - The Group's gearing ratio as of June 30, 2025, was approximately 39.3%, slightly up from 39.0% as of December 31, 2024[103] Strategic Initiatives - The Group plans to enhance its market position in hazardous waste incineration by improving treatment techniques and expanding customer relationships[110] - The Group aims to capitalize on business opportunities in solid waste treatment through the industrialization of pyrolysis technology, focusing on waste plastics and waste paper residues[111] - The Group will explore innovative applications of artificial intelligence (AI) in the environmental technology sector to improve operational efficiency and data analysis capabilities[115] - The Group intends to leverage its capital strength to enter solid waste treatment fields through technology cooperation, investment, and mergers and acquisitions[116] - The Group is focused on establishing a comprehensive environmental industry group by expanding its market presence in solid waste management[119] Shareholder Information - As of June 30, 2025, Mr. Cai Zhuhua holds 531,118,000 shares, representing approximately 39.83% of the company's issued share capital[122] - DHW Holdings Limited, beneficial owner, holds 324,971,000 shares, accounting for approximately 24.38% of the company's issued share capital[128] - The company adopted a Pre-IPO Share Option Scheme on December 10, 2018, to incentivize directors and senior management, valid for ten years[131] - As of June 30, 2025, no rights to acquire shares or debentures were granted to any directors or their respective spouses or children under 18 years of age[130] - The total number of options granted under the Pre-IPO Share Option Scheme has not changed during the reporting period, remaining at 27,000,036[143] Corporate Governance - The Company has fully complied with the corporate governance code provisions during the Reporting Period[147] - The Audit Committee, consisting of three independent non-executive Directors, reviewed the Group's interim results for the six months ended June 30, 2025[162] - No interim dividend was recommended for the six months ended June 30, 2025[161] - There were no purchases, sales, or redemptions of the Company's listed securities during the six months ended June 30, 2025[152] - The Company has established written guidelines to regulate dealings by relevant employees likely to possess inside information regarding the Company's securities[151]
维港环保科技(01845) - 2025 - 中期财报