Baguio Green Group (01397.HK) Announces 2024 Annual Results with Net Profit hits Historical High since listing

Favorable policies driving rapid growth

HONG KONG,March 27, 2025/PRNewswire/ -- Baguio Green Group Limited (''Baguio''or the''Group'', Stock Code: 01397.HK) is pleased to announce its annual results for the year ended31 December 2024(the"Year").

Revenue for the Year amounted to approximatelyHK$2.60 billion, representing an increase of approximately 11.8% as compared to the same period last year. Profit for the Year amounted to approximatelyHK$56.5 million, representing an increase of approximately 17.3% as compared to the same period last year. The Board recommends the payment of a final dividend for the Year atHK$3.8 centsper share.

Business Overview and Prospects

The Group's core business, cleaning services, recorded growth in the Year. Revenue from cleaning services increased by 14.2% to approximatelyHK$2,086.8 million, accounting for approximately 80.1% of the Group's total revenue. The Group's Government-related street cleaning services cover a total of seven districts, serving a population of approximately 2.8 million, marking Baguio's leading position in theHong Kongcleaning services market. During the Year, the Group's mechanical street sweeping services covered various districts inHong Kong. In addition, the Group provides cleaning services for Government markets, facilities, and leisure venues across various districts inHong Kong. The Group's other cleaning sites cover hospitals, Government clinics,Hong KongInternational Airport, schools, housing estates and private institutions, demonstrating that the Group's professional services are widely recognised.

Waste management and recycling business recorded growth in revenue during the Year which increased by approximately 2.5% to approximatelyHK$285.8 million, accounting for approximately 11.0% of the Group's total revenue. Gross profit of the waste management and recycling business increased significantly by approximately 58.2% to approximatelyHK$33.5 million, mainly due to the Government's proactive promotion of recycling and the substantial expansion of the network of recycling spots, including those for food waste, which facilitated public participation and effectively stimulated collection. The Group continued to provide Government-related waste collection services to five districts, serving a population of approximately 1.6 million. In terms of recycling, the Group is contracted by the Environmental Protection Department ("EPD") to provide collection services for thousands of recycling spots (including plastic, glass bottles, metals, waste paper and food waste) acrossHong Kong, and is one of the market leaders. During the Year, the Group provided collection services for recycling bins in public places and schools. Baguio continued to provide plastic collection services for several districts under the EPD Plastic Recycling Pilot Scheme contract. Baguio also provides collection services for Recycling Stations of"GREEN@COMMUNITY", introduced by the EPD, recycling convenience spots and smart recycling machines, and other institutions inHong Kong. In addition, the Group also provides the Government with glass bottles collection and management services and food waste collection services in several districts inHong Kong, and is one of the market leaders.

Regarding green technology business, the Group has proactively developed its green technology business and successfully launched a one-stop smart recycling system by integrating smart digital technologies, big data analysis and Internet of Things technologies. Users can accurately understand the amount of recycling through real-time data, which helps to schedule timely transportation and reduce logistics costs and carbon emissions. During the Year, the Group won two smart contracts from the EPD (in relation to provision of smart food waste recycling machines and smart balances, respectively), demonstrating the Group's outstanding capabilities in product innovation, research and development, and leading market position in the green technology sector as well as its alignment withHong Kong'sgoal of becoming a smart city. The Group's existing green technology products including smart recycling machines, smart food waste recycling machines, and smart balances contributed to the Group's revenue during the Year, and are widely used in Government organizations, public housing and private residential estates, shopping malls, universities, hospitals, large-scale exhibition centers, etc. It not only provides convenient recycling experience to the public but also improve the recycling efficiency, thus supporting the sustainable development ofHong Kong.

In partnership with Jardine Engineering Corporation Limited, the Pilot Biochar Production Plant at the EcoPark inTuen Munwas commenced trial operation during the Year. By converting yard waste into high-quality biochar with pyrolysis technology for various applications, the production plant effectively"turns waste into useful resources".

The Group provides landscaping services for a wide range of clients, including large private residences, Government premises, schools, shopping malls, hotels, airports, Hong Kong Housing Authority, Hong Kong Jockey Club, Hong Kong Science Park, theUniversity of Hong Kong,Hong Kong University of Science and TechnologyandLingnan University, etc. The newly awarded contracts won by the Group during the Year covers Hong Kong-Shenzhen Innovation and Technology Park, microparks inYau Ma Teiand Mong Kok, and the Tung Chung New Town Extension (West).

For pest management business, the Group continued to provide pest management services inWong Tai SinandTai Podistricts during the Year. In addition, the Group provided termite control and monitoring services to 29 monuments under the Antiquities and Monuments Office and 24 temples under the Chinese Temples Committee respectively.

As of31 December 2024, the Group's contracts on hand amounted to approximatelyHK$3.89 billion, providing considerable revenue for subsequent years.

With the orderly implementation of the"market-led"approach in Producer Responsibility Scheme on Plastic Beverage Containers and Beverage Cartons, the Group considers that the measure provides economic incentives to encourage citizens to proactively participate in recycling, which is expected to stimulate the recycling rate of plastic beverage containers and cartons, promote the healthy development of the recycling industry, and help build a circular economy and green industry inHong Kong.

In addition, the Group was awarded a service contract from the Food and Environmental Hygiene Department ("FEHD") to supply solar-powered smart collection bins after the Year. According to the Government's information, the FEHD plans to install a variety of waste collection facilities at around 300 locations by the end of 2026, including the solar-powered compacting refuse bins with an aim to further optimize waste collection in rural areas and improve environmental hygiene. The Group's product is designed with a focus on sustainability and smart technology, tailored to meet the needs of different scenarios inHong Kong, with the goal of enhancing waste collection quality, supporting smart city development, and creating a livable environment.

As The Stock Exchange of Hong Kong Limited requires listed companies to enhance climate-related disclosure, it is believed that to drive an increasing demand for the Group's ESG-related business.

Looking forward, the Group will consolidate the market share of its core businesses and actively engage in expansions inHong Kongand international markets and explore mergers and acquisitions, joint ventures and new business opportunities to drive business growth and create long-term value for the shareholders.

For details of the Group's 2024 annual results announcement, please visit the following website:

https://www.baguio.com.hk/en/news_center/press_release/

About Baguio Green Group

Established in 1980, Baguio Green Group (Stock code: 01397.HK) is one ofHong Kong'slargest integrated environmental management solution providers. It provides a full spectrum of professional services including professional cleaning, waste collection& recycling, waste management, green technology, green products, horticulture& landscaping, and pest control. The Group delivers innovative environmental solutions using the latest technologies to serve a wide range of customers in various sectors including Government departments, statutory organizations and multinational corporations. Fully committed to ESG, the Group works relentlessly to advance sustainable development and create a cleaner, greener, healthier city for a greener tomorrow.

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SOURCEBaguio Green