China Water Industry Group has reported a HK$300.51 million net loss for the year ended 31 December 2025, an improvement of 10.03% from the HK$334.03 million deficit booked in 2024 despite a sharp fall in turnover.
Revenue contracted 56.43% year on year to HK$233.84 million, largely due to the disposal of Yichun Water Group and weaker performance in renewable-energy operations. Gross profit plunged 94.87% to HK$4.47 million, while EBITDA loss widened 73.95% to HK$139.41 million. Loss attributable to shareholders narrowed 14.35% to HK$276.02 million; basic loss per share was 47.56 HK cents versus 110.99 HK cents a year earlier.
Segment performance • Exploitation & Sale of Renewable Energy: revenue HK$104.77 million (-45% YoY), gross loss HK$32.93 million as fewer landfill sites operated and on-grid output fell. • Sewage Treatment & Related Construction: revenue HK$57.37 million (-80%), gross profit HK$25.47 million; higher tariffs partly offset loss of Yichun Water contribution. • Waste Management & Recycling: revenue rose 33% to HK$71.70 million; gross profit increased to HK$11.93 million on expanded glass-bottle and food-waste collection services. • Water-supply activities ceased after the 2024 disposal of Yichun Water Group.
Balance-sheet pressure intensified. Cash and bank balances slipped to HK$42.17 million. Net current liabilities stood at HK$74.87 million versus net current assets of HK$197.93 million a year earlier. Gearing rose to 56.56%, and equity attributable to shareholders fell to HK$646.89 million, or HK$1.02 per share (2024: HK$2.77).
Liquidity plan and legal challenges The group faces a winding-up petition filed by International Finance Corporation over RMB216.60 million in outstanding debt. Hearings have been adjourned to 29 April 2026 as China Water negotiates a rescheduling deed and seeks new financing. Post-year-end, the company secured: • A conditional RMB118.0 million bridging loan; • An agreement to issue up to HK$278.25 million in convertible bonds, subject to April 2026 shareholder approval; • A HK$400 million standby facility from a substantial shareholder.
Auditor Crowe (HK) CPA issued a disclaimer of opinion, citing insufficient evidence that the going-concern plans will succeed.
Capital moves • January 2025: 1-for-1 rights issue raised net HK$90.10 million, mainly for debt repayment. • June 2025: Placement of 57.47 million new shares raised net HK$12.60 million for working capital.
No final dividend was declared.
Management outlook Chairman Zhu Yongjun said 2026 will focus on “securing survival, strengthening core competencies, and opening new horizons,” with priorities on debt restructuring, asset revitalisation and overseas expansion, particularly in biomass-gas projects.