Leader Environmental Technologies (LS9) H1 2026 earnings summary

Executive summary

• H1 revenue increased to RMB6.6m from RMB2.1m, while the continuing-operations loss after tax narrowed to RMB11.5m from RMB29.0m.�

• Sludge projects and technology validation advanced, with the Tangyin equipment supply completed and Singapore’s demonstration project achieving an 80% sludge-mass reduction.�

Financial highlights

• Revenue was RMB6.614m, up 220.4% YoY; gross profit was RMB1.724m versus RMB0.171m.�

• Gross margin rose to 26.1% from 8.3%, reflecting higher-margin sludge-treatment equipment sales versus lower-margin technical services in HY2025.�

• Continuing-operations loss after tax was RMB11.484m versus RMB28.967m; total HY2025 loss after tax was RMB34.795m including discontinued operations.�

• Administrative expenses fell to RMB11.2m from RMB19.7m; finance costs fell to RMB3.1m from RMB7.5m, mainly due to lower staff costs and convertible-bond interest.�

• Total comprehensive loss was RMB14.331m versus RMB33.213m; basic and diluted loss per share were both RMB0.69 cents versus RMB2.15 cents.�

Outlook and guidance

• Tongxu sludge-treatment plant is expected to be substantially completed within 12 months, subject to normal implementation progress and no unforeseen circumstances.�

• Tangyin equipment supply was completed in H1; the plant awaits commissioning and other preparatory work by the joint venture.�

• The membrane condenser project, government-financed in Singapore, remains at procurement stage and is intended to support CTH integration and membrane-technology validation.�

• Secured projects will be pursued with Econ using an asset-light joint-venture approach; new opportunities will be assessed for execution capability, capital efficiency, and strategic fit.�

• Convertible-bond maturities were extended to March and July 2028; management expects the maturities not to affect liquidity over the next 12 months.�