Denox Environmental & Technology Holdings Limited (Denox Environmental & Technology, 01452) released its audited results for FY2025 (year ended 31 December 2025).
Financial Highlights 1. Revenue surged 73.7% year on year (YoY) to RMB189.26 million, driven by strong growth in honey-comb DeNOx catalyst sales. 2. Gross profit expanded 69.5% to RMB46.59 million; gross margin held broadly steady at 24.6% (FY2024: 25.2%). 3. Net loss attributable to shareholders narrowed 53.9% to RMB17.27 million (FY2024: RMB37.33 million). Basic and diluted loss per share improved to RMB0.03 (FY2024: RMB0.06). 4. No dividend declared, with resources retained to support R&D and working capital needs.
Segment Performance • Honey-comb DeNOx catalysts: Revenue doubled to RMB121.54 million (+144.0% YoY) on a 156.9% volume jump to 8,942 m³; average selling price softened 5.9% to RMB13,591/m³. • Plate-type DeNOx catalysts: Revenue grew 21.1% to RMB64.83 million; ASP rose 11.6% to RMB12,245/m³ while volume slipped 3.3% to 5,294 m³. • Vehicle DeNOx catalysts: Sales fell 49.1% to RMB2.89 million amid lower order intake.
Cost & Expenses • Cost of sales climbed 75.1% to RMB142.66 million, in line with higher volumes. • Selling & marketing expenses rose 10.5% to RMB32.10 million due to intensified overseas promotion, equal to 17.0% of revenue (FY2024: 26.6%). • Administrative expenses declined 24.2% to RMB20.02 million, reflecting reduced senior-management bonuses and lower share-issuance costs. • Net finance income reached RMB1.56 million versus RMB0.89 million in FY2024.
Balance Sheet & Liquidity • Total assets increased 16.3% to RMB508.29 million, mainly from higher inventories (RMB340.94 million, +14.6%) and cash deposits. • Contract liabilities rose 37.7% to RMB328.57 million, signalling substantial advance payments from customers. • Net current assets stood at RMB78.51 million (FY2024: RMB90.11 million); current ratio slipped to 1.2x (FY2024: 1.3x). • Cash and cash equivalents were RMB30.95 million (FY2024: RMB18.07 million); term deposits (original maturity >3 months) totalled RMB42.65 million. • Total borrowings decreased to RMB7.62 million, cutting the gearing ratio to 1.5% (FY2024: 2.7%). • Capital expenditure was RMB5.66 million, funded by internal resources.
Operational Review • Over 180 supply contracts were signed in 2025, with notable breakthroughs in dioxin removal and corrugated plate-type catalysts, plus first-time wins in black-liquor recovery boiler and petrochemical waste-liquid incinerator segments. • Manufacturing volumes rose, particularly for honey-comb catalysts, while cost-control measures kept unit production costs stable. • R&D focus remains on carbon-monoxide removal, HCN removal and de-ammoniation catalysts.
Post-Balance-Sheet Events • 5 Jan 2026: Grant of 28.83 million share options to two executive directors and 40 employees at HK$0.1154 per share under the new 2025 Share Option Scheme. • 11 Feb 2026: Exclusive licence and technical support agreements signed with Hainan Botuo Technology (related party) for HB DeCO catalyst technology, effective through 31 Dec 2028.
Outlook & Strategy for 2026 Management plans to: – Strengthen regional sales coverage, target high-value sectors (waste-to-energy, petrochemicals, black-liquor boilers), and expand exports. – Accelerate development of carbon-monoxide and other specialty catalysts. – Tighten cost control amid raw-material price volatility and enhance forecasting of precious-metal trends. – Pursue operational efficiencies, robust working-capital management and execution of the 2025 Share Option Scheme performance targets.
Dividend No final dividend proposed for FY2025 (FY2024: Nil).