WATER INDUSTRY (01129) announced that the group expects to achieve an improvement in net loss attributable to equity shareholders for the first half of 2025, with the loss attributable to equity shareholders not exceeding HK$70 million, compared to a net loss attributable to owners of approximately HK$78.82 million in the first half of 2024.

Compared to the first half of 2024, the board believes that the reduction in net loss attributable to equity shareholders is mainly due to the net impact of the following factors: (i) reduction in administrative and selling expenses due to the implementation of stricter cost control measures across various operations and corporate functions; (ii) decreased financing costs resulting from lower loan borrowing levels during the period; (iii) reduced asset impairment losses in the first half of 2025 compared to the same period in 2024; (iv) Yichun Water Group Co., Ltd. and its subsidiaries recorded net losses in the first half of 2024, while the disposal of Yichun Water Group was completed in September 2024.

The above positive impacts were partially offset by the following factor: decreased revenue and gross profit from renewable energy business, mainly due to the reduced number of operating landfills and the significant decline in grid-connected electricity generation as the amount of new waste transported to landfills for power generation decreased following the commencement of operations of local incineration projects.