China Carbon Neutral narrows loss despite revenue dip, auditor raises going concern doubts

For the year ended June 30, 2025, China Carbon Neutral Development Group reported consolidated revenue of HK$579.4m, a decrease of approximately 39.6% from HK$959.1m in the prior period. This decline was primarily attributed to a HK$291.8m decrease in green credit digital technology business revenue and a HK$100.6m decrease in civil engineering and construction business. The Group's gross profit fell from HK$49.9m to HK$39.5m.

The Group's net loss significantly narrowed to HK$10.3m for the current year, a substantial improvement from a loss of HK$137.3m in the previous period. This 92.5% reduction in loss was mainly driven by a HK$49.3m increase in fair value change on carbon-credit assets, a HK$12.0m decrease in research and development costs, and reductions in administrative and selling expenses (HK$27.1m) and finance costs (HK$43.4m).

However, the auditor issued a disclaimer of opinion due to material uncertainties regarding the Group’s ability to continue as a going concern. As of June 30, 2025, the Group incurred HK$10,282,000 in net loss and had current liabilities of HK$378,708,000, with approximately HK$162,031,000 in defaulted interest-bearing liabilities.