WATER INDUSTRY (01129) disclosed its financial results for the fiscal year ended December 31, 2025. The company reported revenue of approximately HK$234 million, representing a decrease of 56.43% compared to the previous year. The loss attributable to the company's owners was approximately HK$276 million, which narrowed by 14.35% year-on-year. The loss per share was HK47.56 cents.

According to the announcement, this performance was primarily due to the net impact of the following factors: the implementation of stricter cost control measures on operational and corporate expenses, leading to a reduction in administrative and selling expenses; a decrease in expected credit loss provisions for trade and other receivables; the recognition of an income tax credit in the 2025 fiscal year, compared to an income tax expense recorded in the 2024 fiscal year; the recognition of other operating income in 2025, whereas other operating expenses were recognized last year, mainly related to the write-off of equipment; and a net decrease in impairment losses on non-financial assets, as renewable energy projects were terminated or no longer under construction, having been significantly impaired in the previous year.

The effects of the factors above were partially offset by the following: a reduction in revenue and gross profit generated from the renewable energy business, primarily due to a decrease in the number of operational landfill sites and a significant decline in electricity fed into the grid, resulting from a reduction in new waste transported to landfills for power generation as local waste-to-energy projects became operational; the absence of the net gain from the disposal of Yichun Water Group Co., Ltd. recognized in the 2024 fiscal year; and an impairment loss on a deposit paid for the acquisition of additional interests in a subsidiary.