Envision Greenwise (1783) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 September 2024 increased by 4.5% year-over-year to HK$248.2 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 surged 323.9% to HK$44.4 million, with gross margin improving to 17.9% from 4.4% due to higher profitability in the environmental segment and better cost control.

• Loss attributable to owners widened to HK$26.6 million, mainly due to increased operating expenses, including a one-off equity-settled share-based payment expense.

• Adjusted EBITDA turned positive at HK$15.9 million, reflecting a turnaround from a HK$13.8 million loss in the prior year period.

• No interim dividend was declared for the period.

Financial highlights

• Revenue: HK$248.2 million, up 4.5% year-over-year; Gross profit: HK$44.4 million, up 323.9% year-over-year; Gross margin: 17.9% (2023: 4.4%).

• Loss attributable to owners: HK$26.6 million (2023: HK$23.1 million); Basic and diluted loss per share: HK2.12 cents (2023: HK2.04 cents).

• Adjusted EBITDA: HK$15.9 million profit (2023: HK$13.8 million loss), driven by core business improvement.

• Operating expenses rose to HK$73.9 million (+120% YoY), mainly due to share-based payment expenses and higher depreciation.

• Cash and cash equivalents plus pledged deposits: HK$129.1 million (31 March 2024: HK$67.6 million).

Outlook and guidance

• Focus on expanding green energy management, battery recycling, and intelligent energy solutions to support Hong Kong’s low-carbon goals.

• Ongoing investment in battery recycling infrastructure, including a new EV battery processing plant at EcoPark, Hong Kong.

• Optimism for future growth, especially in reverse supply chain management and environmental services, citing global green trends and new business opportunities.

• Plans to leverage EcoPark lease and European collaborations to further expand environmental segment.