Envision Greenwise (1783) H1 2025 earnings summary

Executive summary

• Revenue rose 4.5% year-over-year to HK$248.2 million for the six months ended 30 September 2024, driven by strong growth in reverse supply chain management and environmental-related services, offsetting a decline in superstructure building and RMAA works revenue.

• Gross profit surged 323.9% to HK$44.4 million, with gross margin improving to 17.9% from 4.4% due to higher profitability in the environmental segment and better cost control.

• Loss attributable to owners increased to HK$26.6 million, impacted by higher operating expenses, notably a HK$33.6 million equity-settled share-based payment expense.

• Adjusted EBITDA turned positive at HK$15.9 million, reflecting a turnaround from a HK$13.8 million loss in the prior year period.

• No interim dividend was declared for the period.

Financial highlights

• Revenue: HK$248.2 million (+4.5% YoY); gross profit: HK$44.4 million (+323.9% YoY); gross margin: 17.9%.

• Loss attributable to owners: HK$26.6 million (vs. HK$23.1 million loss YoY); basic and diluted loss per share: HK2.12 cents (vs. HK2.04 cents YoY).

• Adjusted EBITDA: HK$15.9 million profit (vs. HK$13.8 million loss YoY).

• Operating expenses rose 120% to HK$73.9 million, mainly due to share-based payment expenses and higher depreciation.

• Cash and cash equivalents plus pledged deposits: HK$129.1 million as of 30 September 2024 (vs. HK$67.6 million as at 31 March 2024).

Outlook and guidance

• Focus on expanding reverse supply chain management and environmental services, including battery recycling and energy storage.

• Ongoing investment in green infrastructure and battery processing plant at EcoPark, Hong Kong.

• Management remains optimistic about future growth, especially in environmental-related segments, supported by new projects and strategic investments.

• The EcoPark project and cooperation with European partners are expected to drive further performance improvements.