Envision Greenwise (1783) H2 2024 earnings summary

Executive summary

• Revenue increased 12.7% year-over-year to HK$452.2 million, 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 rose 30.8% to HK$28.0 million, with gross margin improving to 6.2% from 5.3% due to better cost control and higher-margin business mix.

• Net loss attributable to owners widened to HK$78.9 million from HK$38.1 million, mainly due to higher operating expenses, including share-based payment expenses and increased costs in new business segments.

• No final dividend was declared for the year.

Financial highlights

• Revenue: HK$452.2 million (up 12.7% year-over-year).

• Gross profit: HK$28.0 million (up 30.8% year-over-year); gross margin: 6.2%.

• Net loss: HK$78.9 million (vs. HK$38.1 million loss prior year).

• Basic and diluted loss per share: HK6.61 cents (vs. HK4.01 cents prior year).

• Adjusted EBITDA loss increased to HK$40.1 million from HK$17.8 million.

Outlook and guidance

• Management is optimistic about future growth, especially in reverse supply chain management and environmental-related services, citing global trends and new business opportunities.

• Investments in new business lines are expected to yield long-term benefits despite current losses.