China Environmental Resources Group Limited (CHINA ENV RES, 01130) released its unaudited interim results for the six months ended 31 December 2025.

Financial Highlights • Revenue fell 8.6% year-on-year to HK$27.25 million, mainly reflecting softer recycled-metal sales. • Gross profit edged up 1.8% to HK$6.53 million; gross margin expanded to 23.9% (1H24/25: 21.5%). • Profit attributable to shareholders reached HK$8.95 million versus a loss of HK$15.19 million in the prior-year period, translating into basic and diluted EPS of 2 HK cents. • Turnaround drivers included a HK$12.61 million fair-value gain on investment properties (1H24/25: HK$1.34 million) and a narrower fair-value loss on biological assets of HK$2.33 million (1H24/25: HK$6.65 million). • Administrative expenses declined 19.1% to HK$14.75 million; finance costs dipped 6.9% to HK$2.76 million. • No interim dividend was declared.

Balance Sheet and Cash Flow • Net assets increased 13.9% since 30 June 2025 to HK$433.34 million; equity attributable to owners stood at HK$420.41 million. • Cash and cash equivalents rose to HK$23.49 million (30 June 2025: HK$1.92 million), aided by financing inflows. • Total borrowings fell to HK$60.12 million; the gearing ratio improved to 13.9% (30 June 2025: 17.9%). • Net operating cash outflow was HK$6.56 million, while net cash generated from financing activities amounted to HK$30.04 million.

Capital Activities • On 2 December 2025 the company completed a share placement of 74.1 million new shares at HK$0.468 each, raising net proceeds of HK$34.06 million. – HK$11.67 million was applied to debt repayment, HK$3.37 million to expand recycling and motorcycle-accessory operations, HK$2.58 million to settle payables, and HK$5.09 million for working capital, leaving HK$11.35 million unutilised as at period-end. • In December 2025 the group acquired a 90% stake in Sichuan Yuanlaishun Renewable Resources Co., Ltd. for HK$9.94 million, adding goodwill of HK$1.46 million and net assets of HK$8.48 million.

Segment Performance • Motor vehicles and accessories: revenue HK$22.47 million (flat YoY). • Property investment: rental income HK$1.91 million; fair-value gain HK$12.61 million. • Finance-lease (hotel leasing) income: HK$2.51 million, up 3.5%. • Recycled metals trading: revenue HK$0.11 million versus HK$2.83 million a year earlier.

Asset Valuations • Investment properties carried at HK$236.51 million, including Hong Kong car-parking spaces valued at HK$160 million and Dongguan industrial land and buildings at HK$76.51 million. • Biological assets (poplar plantations in Xinjiang, 30,000 mu) valued at HK$189.21 million.

Outlook Management will continue to prioritise liquidity, cost controls and development of the recycled-metal and motor-accessories businesses, while cautiously exploring opportunities in rare-earth recycling following the recent acquisition. No guidance on dividends or further capital initiatives was provided in the announcement.