New Universe Environmental Group Limited (NU ENVIRO) reported a net loss of HK$14.09 million for the six months ended 30 June 2026, against a HK$13.51 million loss a year earlier. The deterioration was mainly driven by a HK$14.33 million expected-credit-loss provision linked to amounts due from, and a guarantee to, the 65%-owned joint venture Liuzhou Xinyu Rongkai.
Revenue grew 9.6% year on year to HK$181.02 million. Industrial and medical hazardous-waste services contributed HK$119.72 million (+10.4%), while the eco-plating zone’s sewage-treatment, utilities and leasing business delivered HK$61.30 million (+8.2%).
Gross profit rose 42.7% to HK$37.16 million, lifting the margin to 20.5% from 15.8%. Adjusted EBITDA improved 25.1% to HK$46.82 million.
Key cost and income items • Administrative expenses fell 11.7% to HK$17.66 million, reflecting earlier cost-control measures. • Finance income almost tripled to HK$3.51 million, aided by FX gains on RMB appreciation. • Finance costs declined 15.1% to HK$0.71 million as RMB borrowing rates eased.
Segment performance • Hazardous-waste treatment and disposal recorded a pre-tax loss of HK$21.50 million (1H25: loss of HK$17.16 million) on reduced waste volumes and the joint-venture impairment. • The eco-plating specialised zone generated a pre-tax profit of HK$17.29 million, with the profit margin improving to 28.2% (1H25: 24.2%). • Share of results from two associates produced a combined loss of HK$3.91 million, while the joint-venture loss narrowed to HK$2.42 million (1H25: HK$4.46 million).
Balance-sheet indicators (30 June 2026) • Equity attributable to owners: HK$900.99 million, up 2.2% from end-2025. • Cash and cash equivalents: HK$271.63 million, largely flat. • Bank borrowings: HK$44.83 million, down 9.3%; gearing ratio eased to 4.5% (end-2025: 5.1%). • Current ratio stood at 1.65x (end-2025: 1.66x).
Contingencies and impairments • A Guangxi court ruled that NU ENVIRO and its joint-venture partner are jointly liable for RMB47.05 million (HK$54.34 million) of Xinyu Rongkai’s overdue bank loan. The Group has recognised a HK$37.69 million guarantee liability and related ECL provisions. • Dividend claims totalling HK$51.08 million by minority shareholders of a PRC subsidiary remain under enforcement proceedings; the amount continues to be carried as a payable.
Capital expenditure and commitments • First-half capex reached HK$7.10 million, mainly for eco-plating zone upgrades. • Outstanding commitments include HK$9.07 million for plant and equipment and HK$15.98 million for an equity investment.
Dividend The board declared no interim dividend for 1H26. The HK$0.0016 final dividend for FY2025 (HK$4.86 million) was paid on 31 July 2026.
Operational snapshot The Group treated 49,156 tonnes of hazardous and medical waste during the period (1H25: 81,145 tonnes). Licensed annual treatment capacity across subsidiaries and associates stood at 220,792 tonnes as at 30 June 2026.
Outlook Management will focus on license renewals, efficiency gains, and potential business restructuring amid continued pricing pressure and overcapacity in Jiangsu’s hazardous-waste market, while closely monitoring legal and credit exposures linked to Xinyu Rongkai.
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