Integrated Waste Solutions Group Holdings Limited (IWS, 00923) released audited results for the year ended 31 March 2026.
Financial Highlights • Revenue fell 9.1% year-on-year to HK$41.00 million. • Gross profit slid 18.0% to HK$18.80 million; gross margin narrowed to 45.9% (FY2025: 50.9%). • Net loss attributable to shareholders reduced 65.4% to HK$169.40 million (FY2025: HK$490.15 million). • Basic loss per share contracted to HK3.5 cents (FY2025: HK10.2 cents). • No dividend was recommended.
Operating Performance • Recovered paper and materials remained the largest contributor, up 1.0% to HK$26.28 million, supported by a 2.3% rise in volumes despite softer pricing. Segment gross margin declined to 42.0% (FY2025: 47.6%). • Confidential Materials Destruction Service (CMDS) revenue dropped 21.2% to HK$12.20 million amid intensified competition and weaker market demand. • Logistics income decreased 9.5% to HK$2.29 million; tissue paper trading fell 81.1% to HK$0.20 million following cessation of in-house production. • Share of profit from the WEEE joint venture with ALBA in Hong Kong edged up 3.3% to HK$12.09 million. • Share of profit from associate An Jie Supply Chain Management contributed HK$1.73 million, while the prior-year HK$57.01 million loss from the hazardous-waste associate was eliminated after divestment.
Key Non-Recurring Items • Impairment on property, plant, equipment and right-of-use assets totalled HK$143.17 million, linked mainly to the agreed surrender of the Tseung Kwan O premises to Hong Kong Science and Technology Parks Corporation. • No further impairments were recognised on the profit-guarantee receivable or the former hazardous-waste associate, compared with combined charges of HK$38.39 million in FY2025.
Liquidity and Capital Structure • Cash and bank balances stood at HK$16.72 million (31 Mar 2025: HK$43.10 million). • Net current liabilities of HK$23.64 million replaced prior-year net current assets of HK$47.16 million; current ratio fell to 0.6x (FY2025: 6.0x). • Net debt reached HK$33.70 million, lifting the gearing ratio to 62.9% (FY2025: 3.3%). • An HK$80.00 million unsecured shareholder loan facility was arranged, of which HK$50.00 million refinances the existing loan and HK$30.00 million supports working capital; maturity is three years from drawdown on 16 June 2026.
Operational Developments • Surrender of the under-utilised Tseung Kwan O headquarters was approved in September 2025; relocation of CMDS and logistics operations to a new leased facility in Sheung Shui is targeted by end-September 2026. • A three-year tenancy commencing 1 April 2026 for the new site carries a monthly rent of HK$0.88 million; related lease liabilities of about HK$44.00 million will be recognised in FY2027. • A HK$20.00 million renovation contract for the new premises was signed on 1 June 2026.
Outlook Management will concentrate on completing the relocation, maintaining service continuity and strengthening core CMDS, logistics, recovered paper and WEEE activities. Cost control, disciplined capital allocation and liquidity management remain priorities amid competitive and macro-economic headwinds.
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