New Risk • Apr 28
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 22% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (22% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (1.5% net profit margin). Reported Earnings • Apr 03
Full year 2025 earnings released: EPS: CN¥0.14 (vs CN¥3.99 in FY 2024) Full year 2025 results: EPS: CN¥0.14 (down from CN¥3.99 in FY 2024). Revenue: CN¥383.2m (down 38% from FY 2024). Net income: CN¥5.64m (down 95% from FY 2024). Profit margin: 1.5% (down from 20% in FY 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Machinery industry in Hong Kong. Announcement • Apr 02
Contiocean Environment Tech Group Co., Ltd. Recommends No Final Dividend for the Year Ended 31 December 2025 The board of directors of Contiocean Environment Tech Group Co., Ltd. did not recommend or declare the payment of final dividend for the year ended 31 December 2025 (2024: final dividend of RMB 1.5 per share). Announcement • Apr 01
Contiocean Environment Tech Group Co., Ltd., Annual General Meeting, May 22, 2026 Contiocean Environment Tech Group Co., Ltd., Annual General Meeting, May 22, 2026. Announcement • Mar 17
Contiocean Environment Tech Group Co., Ltd. to Report Fiscal Year 2025 Results on Mar 31, 2026 Contiocean Environment Tech Group Co., Ltd. announced that they will report fiscal year 2025 results on Mar 31, 2026 Board Change • Feb 27
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Non-Executive Director Yanming Guan was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Jan 09
Contiocean Environment Tech Group Co., Ltd. Announces Change of Company Secretary, Effective January 6, 2026 ContiOcean Environment Tech Group Co., Ltd. announced that Mr. Shu Wa Tung, Laurence resigned as company secretary of the Company and ceased to act as an authorised representative of the Company all with effect from January 6, 2026. The Board announced that Mr. Tung Tat Chiu Michael has been appointed as Company Secretary and the Authorised Representative, and Tung & Co., legal advisers as to Hong Kong laws, has been appointed as the authorised representative for accepting the service of process and notices on behalf of the Company in Hong Kong under Part 16 of the Companies Ordinance (Chapter 622 of the Laws of Hong Kong), all with effect from January 6, 2026. Mr. Tung, aged 63, is the senior partner of Tung & Co. He holds a Bachelor of Arts degree in law and accounting from the University of Manchester, the United Kingdom. He has over 35 years of experience as practising lawyer in Hong Kong. He is also a China-Appointed Attesting Officer. He was qualified as a lawyer of Guangdong-Hong Kong-Macau Greater Bay Area recognised by the Department of Justice of Guangdong Province of the People’s Republic of China in June 2024. Mr. Tung currently serves as a joint company secretary of Jiangxi Copper Company Limited, Harbin Electric Company Limited and Qingling Motors Co. Ltd. and the sole company secretary of City Coolxuan Company Limited, Central New Energy Holding Group Limited and TATA Health International Holdings Limited, respectively. Valuation Update With 7 Day Price Move • Dec 09
Investor sentiment improves as stock rises 33% After last week's 33% share price gain to HK$37.02, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 10x in the Machinery industry in Hong Kong. Reported Earnings • Sep 29
First half 2025 earnings released: EPS: CN¥0.18 (vs CN¥2.75 in 1H 2024) First half 2025 results: EPS: CN¥0.18 (down from CN¥2.75 in 1H 2024). Revenue: CN¥143.5m (down 57% from 1H 2024). Net income: CN¥6.95m (down 92% from 1H 2024). Profit margin: 4.8% (down from 25% in 1H 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Machinery industry in Hong Kong. Major Estimate Revision • Sep 02
Consensus revenue estimates fall by 41% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥801.0m to CN¥469.0m. EPS estimate fell from CN¥3.44 to CN¥1.45 per share. Net income forecast to grow 109% next year vs 17% growth forecast for Machinery industry in Hong Kong. Consensus price target down from HK$53.26 to HK$44.99. Share price was steady at HK$27.52 over the past week. Reported Earnings • Aug 28
First half 2025 earnings released: EPS: CN¥0.18 (vs CN¥2.75 in 1H 2024) First half 2025 results: EPS: CN¥0.18 (down from CN¥2.75 in 1H 2024). Revenue: CN¥143.5m (down 57% from 1H 2024). Net income: CN¥6.95m (down 92% from 1H 2024). Profit margin: 4.8% (down from 25% in 1H 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Machinery industry in Hong Kong. New Risk • Aug 27
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 10% Last year net profit margin: 24% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 117% Cash payout ratio: 152% Minor Risk Profit margins are more than 30% lower than last year (10% net profit margin). Announcement • Aug 15
Contiocean Environment Tech Group Co., Ltd. to Report First Half, 2025 Results on Aug 26, 2025 Contiocean Environment Tech Group Co., Ltd. announced that they will report first half, 2025 results on Aug 26, 2025 New Risk • Jun 13
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 152% Dividend yield: 6.3% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (104% accrual ratio). Minor Risk Dividend is not well covered by cash flows (152% cash payout ratio). Reported Earnings • Mar 30
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥4.03 (up from CN¥4.02 in FY 2023). Revenue: CN¥614.4m (up 20% from FY 2023). Net income: CN¥120.9m (flat on FY 2023). Profit margin: 20% (down from 24% in FY 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 14%. Earnings per share (EPS) also missed analyst estimates by 4.7%. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Machinery industry in Hong Kong. Announcement • Mar 18
Contiocean Environment Tech Group Co., Ltd. to Report Fiscal Year 2024 Results on Mar 28, 2025 Contiocean Environment Tech Group Co., Ltd. announced that they will report fiscal year 2024 results on Mar 28, 2025 New Risk • Jan 12
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risks No financial data reported. Shares are highly illiquid. Board Change • Jan 09
Less than half of directors are independent There are 8 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 8 new directors. 3 experienced directors. No highly experienced directors. 3 independent directors (5 non-independent directors). Executive Chairman Zhou Yang is the most experienced director on the board, commencing their role in 2019. Independent Non-Executive Director Yanming Guan was the last independent director to join the board, commencing their role in 2024. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Announcement • Jan 09
Contiocean Environment Tech Group Co., Ltd. has completed an IPO in the amount of HKD 318 million. Contiocean Environment Tech Group Co., Ltd. has completed an IPO in the amount of HKD 318 million.
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 1,894,200
Price\Range: HKD 31.8
Discount Per Security: HKD 0.795
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 5,662,800
Price\Range: HKD 31.8
Discount Per Security: HKD 0.795
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 2,443,000
Price\Range: HKD 31.8
Discount Per Security: HKD 0.795
Transaction Features: Regulation S 
