ELL Environmental Holdings Limited (ELL ENV, 01395) announced a sharp earnings turnaround for the year ended 31 December 2025 (FY2025). Based on unaudited management accounts, profit before tax (PBT) is expected to exceed HK$30.00 million, compared with HK$1.20 million in FY2024.

Management attributes the improvement to: 1. Higher construction revenue from the expansion of wastewater treatment facilities at Rugao Hengfa Water Treatment Company in China. 2. Increased contribution from the biomass power operations of PT Sentosa Jaya Purnama in Indonesia. 3. Net reversals of provisions for major overhauls and a previously booked arbitration-related provision. 4. Lower expenses, including reduced expected credit loss impairments and research-and-development costs.

Arbitration Update The South China International Arbitration Centre (Hong Kong) dismissed the majority of claims filed by Everbest Water Treatment Development Company Limited against CGN Environmental Protection Industry Co., Ltd. Consequent to the arbitral award dated 31 December 2025, ELL ENV will record a provision of approximately HK$9.00 million in the FY2025 financial statements. The Board stated that the award has no material adverse impact on the Group’s operations.

The audited annual results are scheduled for release on 25 March 2026. Shareholders and potential investors are advised to exercise caution when dealing in the Company’s shares.