WATER INDUSTRY (01129) has announced that the group expects to record a net loss attributable to the company's owners not exceeding HK$300 million for the 2025 fiscal year. This compares to a net loss attributable to owners of approximately HK$322 million for the fiscal year ended December 31, 2024. The board of directors believes the anticipated net loss for the 2025 fiscal year will be lower than that of the 2024 fiscal year, primarily due to the net impact of the following factors: stricter cost control measures implemented on operational and corporate expenses, leading to a reduction in administrative and selling expenses; a decrease in expected credit loss provisions for trade receivables; lower income tax expenses resulting from a reduction in taxable profits generated in the 2025 fiscal year; the recognition of other operating income in the 2025 fiscal year, compared to other operating expenses recognized last year, which were mainly related to equipment write-offs, construction costs, and default interest payments from litigation recognized in the 2024 fiscal year; and a net decrease in impairment losses on non-financial assets—including right-of-use assets, intangible assets, and goodwill—as renewable energy projects have been terminated or are no longer under construction and were substantially impaired last year. The positive impact of the above factors was partially offset by the following: a decrease in revenue and gross profit generated from the renewable energy business, mainly due to a reduction in the number of operating landfills and a significant decline in electricity fed into the grid, resulting from less new waste being sent to landfills for power generation as local waste-to-energy projects became operational; the absence of the net gain on the disposal of Yichun Water Group Co., Ltd. recognized in the 2024 fiscal year; and an impairment loss on a deposit paid for additional interests in an acquired subsidiary.