Environmental maintenance business

The environmental maintenance business is headquartered in Chengdu,
and has expanded into other regions in the PRC including the Xinjiang
Autonomous Region and Inner Mongolia Autonomous Region. Its scope
of services mainly includes (i) janitorial services for public areas in cities; (ii)
classification management of solid waste, bulky garbage and food waste; and
(iii) facility maintenance management of refuse collection points.

During the Year, the environmental maintenance business recorded a
revenue of approximately HK$87,938,000, compared to a revenue of
approximately HK$132,607,000 for the Corresponding Year. The decline in
performance of environmental maintenance business in 2025, was mainly
attributable to the Group’s prudent and cautions approach in bidding for
new projects, resulting in a decrease in revenue as certain projects expired
during the Year without being replaced by newly secured projects.

After taking into account of the cost of revenue, impairment of financial
assets, impairment of property, plant and equipment and administrative
expenses, the environmental maintenance business recorded a segment
loss in the amount of approximately HK$57,763,000 (Corresponding Year:
segment loss of approximately HK$42,811,000). The increment in segment
loss is mainly attributable from the provision for loss allowance in trade
receivable, amount to approximately HK$47,289,000 (Corresponding Year:
provision for loss of approximately HK$29,681,000).

As of 31 December 2025, the Group had a total of 5 (As of 31 December
2024: 7) environmental maintenance service contracts in progress with the
total contract amount of approximately RMB108,764,000 (As of 31 December
2024: approximately RMB232,290,000) for the remaining contract term.