Envision Greenwise (1783) H2 2023 earnings summary

Executive summary

• Revenue increased 12.7% year-over-year to HK$452.2 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 rose 30.8% to HK$28.0 million, with gross margin improving to 6.2% from 5.3% due to higher-margin environmental services and cost controls.

• Net loss attributable to owners widened to HK$78.9 million from HK$38.1 million, mainly due to increased operating expenses, including share-based payment expenses and higher administrative costs.

• No final dividend was declared for the year.

Financial highlights

• Revenue: HK$452.2 million (up 12.7% year-over-year).

• Gross profit: HK$28.0 million (up 30.8% year-over-year); gross margin: 6.2%.

• Loss attributable to owners: HK$78.9 million (vs. HK$38.1 million loss prior year).

• Basic and diluted loss per share: HK6.61 cents (vs. HK4.01 cents prior year).

• Adjusted EBITDA loss increased to HK$40.1 million from HK$17.8 million.

Outlook and guidance

• Management is optimistic about future growth, especially in reverse supply chain management and environmental services, citing global trends in green business and recent business developments such as cooperation with European partners and new operations at EcoPark.