Leader Environmental Technologies (LS9) H2 2025 earnings summary

Executive summary

• FY2025 profit after tax was RMB206.1 million, driven by a RMB318.6 million gain on disposal of the AlWater businesses; continuing operations recorded a RMB106.9 million loss.

• The strategic focus shifted to sludge treatment and membrane technology after the AlWater disposal, while new project wins and technology demonstrations support prospective growth.

Financial highlights

• Total revenue was RMB29.9 million versus RMB30.5 million in FY2024; continuing-operations revenue rose to RMB11.5 million from RMB7.0 million.

• Continuing-operations gross profit increased to RMB3.47 million from RMB1.76 million; gross margin rose to 30.2% from 25.1%, reflecting higher-margin engineering revenue.

• Discontinued operations contributed RMB313.0 million profit after tax, including the RMB318.6 million disposal gain, versus a RMB3.9 million loss in FY2024.

• Consolidated profit after tax was RMB206.1 million versus a RMB62.1 million loss in FY2024; basic EPS was RMB13.65 versus a loss of RMB3.76 per share.

Outlook and guidance

• Secured Tongxu and Tangying municipal sludge-treatment contracts total RMB143.3 million; approximately RMB70 million is apportioned to the Group, with financial contribution expected progressively.

• A membrane-condenser demonstration plant supported by an NRF Living Lab Grant is scheduled to begin operating in 2026, advancing integration with the CTH platform.

• Management forecasts sufficient operating cash inflows over the 12 months from financial-statement approval, while monitoring debtor collections and project execution.