Financial Performance - The Group recorded a revenue increase of 76.8%, from HK$45.7 million in the last corresponding period to HK$80.8 million for the current period[14]. - Net profit improved from a loss of HK$10.1 million to a profit of HK$12.5 million, reflecting strong operational performance across key business segments[14]. - The Group's total revenue increased by 76.8%, from HK$45.7 million to HK$80.8 million, driven by contributions from the Rugao Expansion Project, data center services, and the Bangka Project[32][34][39]. - Net profit improved from a loss of HK$10.1 million to a profit of HK$12.5 million, reflecting strong operational performance across key business segments[32][34]. - The Group recorded a profit before tax of HK$15.1 million, compared to a loss of HK$4.5 million in the previous period[48]. - Profit attributable to owners of the Company amounted to HK$11.9 million for the Period, compared to a loss of HK$8.9 million for the Last Corresponding Period, primarily due to improved operational performance[57]. - Basic and diluted earnings per share improved to HK$1.08, recovering from a loss of HK$0.81 in 2024[142]. - Total comprehensive income for the period was HK$21,918,000, compared to a loss of HK$29,364,000 in 2024[144]. - The segment profit before tax for the six months ended June 30, 2025, was HK$15,137,000, a significant recovery from a loss of HK$4,511,000 in the same period of 2024[177]. Operational Developments - The Bangka Project commenced full operations in late July 2025 under a 25-year fixed-price agreement, significantly contributing to the Group's results[15]. - Rugao's wastewater treatment capacity is expected to increase from 40,000 tonnes to 50,000 tonnes, with completion of the expansion project anticipated in the second half of 2025[25]. - The Group is exploring new growth opportunities in Indonesia, focusing on power supply capacity to support electric vehicle charging infrastructure and green hydrogen production[19]. - The Group's diversified business portfolio includes wastewater treatment, biomass power, data center operations, and wood pellet sales across China and Indonesia[24]. - The Group's operational performance remains stable, with essential services provided in the Rugao Economic and Technological Development Zone[25]. Financial Position - As of June 30, 2025, the Group's bank balances and cash increased by 48.3% to HK$52.0 million from HK$35.1 million as of December 31, 2024[59]. - Total outstanding bank borrowings amounted to HK$73.7 million, with HK$46.8 million repayable on demand and HK$26.9 million within one year[60]. - The gearing ratio decreased from 80.0% as of December 31, 2024, to 77.3% as of June 30, 2025, due to higher retained earnings from increased net profit[68]. - The Company had outstanding amounts due to related parties of HK$110.1 million, with a fixed interest rate of 6% per annum[66]. - The Company had HK$15.3 million in unutilized banking facilities as of June 30, 2025, unchanged from December 31, 2024[64]. - The company's debt-to-equity ratio decreased from 80.0% as of December 31, 2024, to 77.3% as of June 30, 2025, primarily due to an increase in retained earnings from net profit[71]. - Capital expenditures for the period amounted to HK$20.3 million, a significant increase from HK$8.7 million in the last corresponding period, funded by financing activities[75]. - As of June 30, 2025, cash deposits pledged to secure interest-bearing bank borrowings were HK$32.2 million, up from HK$30.8 million as of December 31, 2024[73]. Corporate Governance - The company maintains high standards of corporate governance and complies with all mandatory disclosure requirements[120]. - The Company has adopted high standards of corporate governance and complied with the relevant codes and disclosure requirements[123]. - The Audit Committee comprises three independent non-executive Directors and has reviewed the Group's financial reporting process and interim results[137]. - All Directors confirmed compliance with the Model Code governing securities transactions during the reporting period[126]. - The Company did not purchase, sell, or redeem any of its listed securities during the reporting period[127]. Shareholder Information - As of June 30, 2025, Mr. Chan Kwan holds 508,200,000 shares, representing approximately 45.90% of the company's total shares[106]. - Mr. Chau On Ta Yuen is deemed to be interested in 225,000,000 shares, which includes 70,000,000 shares owned by Wealthy Sea Holdings Limited and 155,000,000 shares charged by Everbest Environmental Investment Limited[112]. - Everbest Environmental holds 492,500,000 shares, accounting for 44.48% of the company's total shares[116]. - Ms. Wong has a beneficial interest in 20,415,000 shares and is deemed to be interested in 507,895,000 shares held by controlled corporations[118]. - The total number of shares in issue as of June 30, 2025, is 1,107,300,000[112]. - Morgan Top Trading Co., Ltd. holds 143,300,000 shares, representing approximately 12.94% of the company's total shares[116]. Legal and Regulatory Matters - The ongoing arbitration between Everbest and CGN Environmental Protection Industry is pending a decision from the Shenzhen Court of International Arbitration[16]. - The arbitration regarding the sale of 70% equity interest in Haian Hengfa Wastewater Treatment Company is ongoing, with a decision expected by August 28, 2025[86]. - Everbest Environmental agreed to purchase 155,000,000 Shares from Wealthy Sea for a total consideration of HK$26,350,000, equivalent to HK$0.17 per Share[129]. - The Sale Shares represent approximately 14.00% of the total issued share capital of the Company, which is 1,107,300,000 Shares as of June 30, 2025[130].
强泰环保(01395) - 2025 - 中期财报