WATER INDUSTRY (01129) announced annual performance, with a net loss attributable to shareholders of HK$276 million, a year-on-year decrease of 14.35%.

The WATER INDUSTRY (01129) has announced its annual performance for the year ending December 31, 2025, with revenue of approximately HK$234 million, a decrease of 56.43% year-on-year; the attributable loss to owners of the company is approximately HK$276 million, a narrowing of 14.35% year-on-year; and a loss per share of 47.56 HK cents. The announcement stated that the main factors affecting the net impact are as follows: stricter cost control measures for operations and company expenses leading to a reduction in administrative and sales expenses; a decrease in credit loss provisions for trade and other receivables; recognition of tax credits in the 2025 fiscal year compared to tax expenses recorded in the 2024 fiscal year; recognition of other operating income in the 2025 fiscal year compared to other operating expenses recognized last year, mainly related to equipment write-offs; recognition of construction costs and default interest payments from litigation in the 2024 fiscal year; and a net decrease in impairment losses on non-financial assets, as renewable energy projects have been terminated or no longer under construction and were significantly impaired last year. The impact of these factors is partially offset by the following: a decrease in revenue and gross profit generated by the renewable energy business, mainly due to a reduction in operating landfills and a significant decrease in electricity generated from new waste sent to landfills for power generation as local incineration projects become operational, leading to a substantial decrease in grid electricity output; no recognition of the net proceeds from the sale of Yichun Water Group Limited (Yichun Water Group) in the 2024 fiscal year; and impairment losses on additional equity payment for the acquisition of a subsidiary company.