Leader Environmental Technologies (LS9) H1 2025 earnings summary

Executive summary

• HY2025 loss after tax was RMB34.8m, versus RMB14.0m a year earlier; excluding the RMB319.8m estimated gain on the AIWater disposal, the period remained loss-making.

• The AIWater disposal completed on 25 July 2025, sharpening the focus on sludge treatment and membrane manufacturing; a cash distribution of S$0.0287 per share was scheduled for 11 August 2025.

Financial highlights

• Continuing-operations revenue fell 55.7% YoY to RMB2.1m; gross profit was RMB0.2m and gross margin 8.3%, versus RMB2.8m and 60.3% in HY2024.

• Including discontinued operations, revenue was RMB17.7m versus RMB8.5m; loss after tax increased to RMB34.8m from RMB14.0m.

• Continuing-operations loss after tax widened to RMB29.0m from RMB9.7m; discontinued-operations loss was RMB5.8m versus RMB4.3m.

• Excluding the estimated RMB319.8m disposal gain, HY2025 loss after tax of RMB34.8m would become an adjusted profit of RMB285.0m.

Outlook and guidance

• Post-disposal strategy targets scaling sludge treatment using proprietary CTH and pyrolysis technologies, alongside advanced membrane manufacturing.

• A Singapore demonstration plant completed in July 2025; it treats high-organic sewage sludge to produce biochar and is intended to support business development.

• Two Henan equipment-supply contracts secured with Econ Technology have a combined value of ~RMB70m; the related project companies each carry a 10% stake.

• No numerical earnings guidance; stated priorities include strategic partnerships, technology deployment and improved near-term business performance.