China Everbright Greentech Issues Positive Profit Alert for FY2025

Significant Turnaround Expected After Major Loss in Previous Year

China Everbright Greentech Limited (Stock Code: 1257) has issued a positive profit alert that is highly relevant to shareholders and potential investors. The company announced that, based on its preliminary review of unaudited consolidated management accounts for the year ended 31 December 2025, it expects a substantial turnaround in financial performance.

Key Highlights

• Reversal from Net Loss to Net Profit: The Group expects to shift from a net loss of approximately HK\$505 million in FY2024 to a net profit of up to HK\$55 million in FY2025. This marks a significant improvement in the company’s financial health.
• Main Driver – Lower Impairment Losses: The anticipated profit turnaround is attributed mainly to a decrease in impairment losses on goodwill, intangible assets, property, plant and equipment, and right-of-use assets. These impairment losses were significantly higher in 2024.
• Stabilisation and Operational Improvements: The company cites a stabilisation in the hazardous and solid waste treatment business, improved operational performance from intensive management measures, cost optimisation initiatives, and a more favourable market outlook as key factors behind the recovery.
• Timing of Full Results: The company will disclose its detailed annual results for FY2025 by the end of March 2026.

Investor and Shareholder Considerations

• Price-Sensitive Information: This profit alert is potentially price-sensitive and could have a material impact on the company’s share value, given the dramatic swing from a large loss to a profit.
• Market Outlook: The positive shift is based on management’s preliminary assessment and unaudited accounts, which may be subject to further adjustments before final results are published.
• Risk Disclosure: The announcement explicitly cautions shareholders and potential investors to exercise caution when dealing in China Everbright Greentech shares, as the figures have not yet been audited or reviewed by the company’s auditor or the audit and risk management committee.

Board of Directors

The announcement was authorised by the Board of Directors, including Dr. Zhu Fugang (Chairman, Executive Director), Mr. Liang Haidong (Chief Executive Officer, Executive Director), Mr. Huang Chaoxiong (Executive Director), Ms. Mao Jing (Non-executive Director), and Independent Non-executive Directors Mr. Chow Siu Lui, Prof. Yan Houmin, and Mr. Li Huaqiang.

Summary

The positive profit alert from China Everbright Greentech signals a strong recovery and could act as a catalyst for share price movement. The main driver is a significant reduction in impairment losses, reflecting stabilised market conditions and improved internal efficiency. Investors should, however, await the audited results and exercise due caution.

Disclaimer: The information above is based on the company’s unaudited management accounts and may be subject to change. Investors are advised to await the final audited results and consult professional advisors before making investment decisions. This article does not constitute investment advice.

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