WG ENV TECH 2025 Results: Revenue Falls 15.2% to RMB204.79 Million, Net Loss Widens to RMB77.01 Million

Bulletin Express
Mar 26

WG ENV TECH disclosed its audited results for the year ended 31 December 2025.

Revenue and Profitability • Group revenue declined 15.2% year-on-year to RMB204.79 million, primarily due to weaker demand for hazardous-waste projects and softer oilfield activity. • Gross profit decreased 25.2% to RMB43.43 million; gross margin contracted to 21.2% from 24.0% in 2024. • Net loss expanded to RMB77.01 million (2024: RMB55.27 million), translating into a net-loss margin of 37.6%. • Loss attributable to shareholders amounted to RMB63.15 million; basic loss per share was RMB0.047.

Segment Performance • Oilfield auxiliary services remained the largest contributor, generating revenue of RMB144.12 million (–7.9% YoY) and segment loss of RMB10.63 million. • Hazardous-waste incineration solutions revenue slumped 61.7% to RMB14.68 million; segment loss was RMB49.60 million. • Cement-plant parallel-kiln co-treatment services delivered RMB36.10 million (+17.2%), while oil-sludge thermal desorption treatment contributed RMB2.29 million (–83.1%). • Other services, mainly technical upgrades and maintenance, rose to RMB7.60 million (+204%).

Key Cost and Expense Items • Service costs fell 12.1% to RMB161.37 million, tracking lower project volumes. • Administrative expenses stayed largely flat at RMB57.59 million. • Research and development spending declined 16.0% to RMB10.51 million. • Impairment charges totalled RMB34.57 million, including RMB17.34 million on property, plant and equipment and RMB14.41 million on goodwill related to the Xinjiang Tiansheng acquisition. • Finance costs increased 25.0% to RMB3.47 million on higher borrowings.

Balance-Sheet Highlights (31 December 2025) • Total assets: RMB706.22 million; net assets: RMB398.22 million. • Cash and cash equivalents: RMB95.80 million. • Total borrowings: RMB74.82 million, secured by trade receivables and right-of-use assets; gearing (total liabilities/total assets) stood at 43.6%. • Trade and notes receivables fell to RMB213.50 million; average collection period lengthened to 420 days. • Contract liabilities rose to RMB34.20 million on higher customer advances.

Capital Expenditure and Commitments • 2025 capital spending reached RMB46.50 million, mainly for oil-sludge treatment facilities and self-owned solid-waste projects. • Outstanding capital commitments totalled RMB1.00 million, chiefly for Guangdong cement-kiln co-treatment and pyrolysis projects.

Dividend • The Board does not recommend a final dividend for 2025.

Corporate Governance and Other Information • The company maintained full compliance with the Hong Kong Listing Rules’ Corporate Governance Code during the year and confirmed strict adherence to the Model Code for securities transactions. • Public float remains above the 25% requirement.

The annual general meeting is scheduled for 2 June 2026; the register of members will be closed from 28 May to 2 June 2026 (both days inclusive).

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