ELL ENV (01395) has announced that the Group expects to achieve a pre-tax profit of no less than HK$30 million for the 2025 fiscal year, compared to a pre-tax profit of HK$1.2 million for the year ended December 31, 2024. The Board attributes the turnaround in the Group's performance primarily to the expansion of wastewater treatment facilities at China Rugao Hengfa Wastewater Treatment Co., Ltd., which increased revenue contributions from construction operations; higher revenue contributions from the biomass power generation business of Indonesia's PT Sentosa Jaya Purnama; the net impact of the reversal of a major overhaul provision and the provision for an arbitration award by the South China (Hong Kong) International Arbitration Court; as well as reduced expenses such as impairment losses under the expected credit loss model and research and development costs. Additionally, an update was provided regarding Hengfa Water Affairs Development Co., Ltd.'s arbitration proceedings filed with South China Hong Kong against Zhongguang Environmental Industry Co., Ltd. concerning the sale and purchase agreement for Hengfa's 70% equity stake in Haian Hengfa Wastewater Treatment Co., Ltd. South China Hong Kong issued an arbitration award on December 31, 2025, dismissing the majority of Hengfa's claims. As a result, Hengfa was unable to fully recover the remaining consideration and related claims. Consequently, the Group expects to recognize a provision of approximately HK$9 million in its financial statements for the 2025 fiscal year, which are scheduled to be published on March 25, 2026. To the best of the Board's knowledge, as of the date of this announcement, the arbitration award has no significant adverse impact on the business and general operations of the Company and its subsidiaries.