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    ESGL Holdings Limited Reports First Half 2024 Financial Results

    Operating Subsidiary Achieves First Profitable Half Year, Optimistic Outlook for Second Half

    SINGAPORE, Sept. 20, 2024 (GLOBE NEWSWIRE) -- ESGL Holdings Limited (NASDAQ: ESGL) (“ESGL” or the “Company”), a leading carbon neutral, innovative enviro-tech company regenerating industrial waste into circular products, today announced its financial results for the six-month period ended June 30, 2024.

    First Half 2024 Highlights:

    • First-Time Subsidiary Profitability: ESGL's operating subsidiary posted its first-ever profitable half-year, a significant milestone compared to the loss recorded in first half of 2023.
    • Revenue Growth: Revenue for the first half of 2024 increased to US$3.49 million, a 2.8% improvement from the prior year, despite regulatory challenges and volatility in waste volumes.
    • Significant Reduction in Losses: Loss before taxation improved by 45.3%, reduced from US$590,000 in the first half of 2023 to US$322,000, driven by strict cost management and operational efficiencies.
    • Logistics Cost Savings: Logistics costs were reduced by US$527,000, a 66.6% decrease year-on-year, significantly improving the Company’s cost base.

    Operational and Segment Performance:

    • Solid Waste Thermal Processing Solutions: Revenue grew by 8.15%, underpinned by the collection of new waste types and the expansion of the Company’s customer base.
    • Liquid Waste Synthesis Solutions: Revenue in this segment declined by 45.8% due to the regulatory impact on a key customer. However, the Company expects recovery in the second half of 2024.
    • Circular Products Sales: Sales declined by 39.1% due to lower demand for base metals, though the Company remains optimistic about improving market conditions.
    • Other Income: Foreign exchange gains contributed to a US$93,000 increase in other income, reflecting favorable currency movements.

    Outlook for the Second Half of 2024:

    ESGL is optimistic about its performance in the second half of 2024, driven by a focus on expanding its solid hazardous waste customer base and regaining liquid hazardous waste volume, while maintaining operational efficiency and achieving cost savings. Additionally, the Company is actively working to renew long-term contracts with key clients to sustain and enhance profitability.

    CEO Statement:

    Quek Leng Chuang, Chief Executive Officer and Chairman of ESGL, commented: “We are proud to report that our operating subsidiary has achieved its first profitable half-year. This significant milestone reflects the strength of our strategic focus on cost efficiency and operational optimization. As we look toward the second half of 2024, we remain confident in our ability to drive sustained growth across our core segments and continue to build momentum toward long-term profitability.”

    About ESGL Holdings Limited

    ESGL Holdings Limited is a Singapore-based carbon-neutral enviro-tech company dedicated to transforming industrial waste into circular products. With a commitment to sustainable waste management solutions, ESGL is a leading player in the environmental solutions industry. ESGL conducts all its operations through its operating subsidiary incorporated in Singapore, Environmental Solutions (Asia) Pte. Ltd. For more information, including the Company’s filings with the SEC, please visit https://esgl.asia.

    Investor Relations Contact:

    ESGL Holdings Limited
    Investor Relations Department
    Email: ir@esgl.asia
    Phone: +65 6653 2299

    Forward-Looking Statements
    Certain statements in this press release may be considered to contain certain “forward-looking statements” within the meaning of “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “target,” “believe,” “expect,” “will,” “shall,” “may,” “anticipate,” “estimate,” “would,” “positioned,” “future,” “forecast,” “intend,” “plan,” “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Examples of forward-looking statements include, among others, statements made in this press release regarding anticipated future financial and operating performance and results, including estimates for growth, gross margins, adjusted EBITDA, potential regional expansion, development of new products, partnerships, customer relationships, demand for waste processing, and sales of circular products. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on ESGL management’s current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Actual results and outcomes may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. A further list and description of risks and uncertainties can be found in documents filed with the Securities and Exchange Commission (“SEC”) by ESGL and other documents that the Company may file or furnish with the SEC, which you are encouraged to read. Any forward-looking statement made by us in this press release is based only on information currently available to the Company and speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise, except as required by law.

    ESGL Holdings Limited
    Consolidated Statement of Financial Position
    As at June 30, 2024 and December 31, 2023

           
      June 30, 2024   December 31, 2023
      US$   US$
    ASSETS      
    Current assets      
    Cash and cash equivalents 256,501     366,761  
    Trade and other receivables 985,951     1,032,522  
    Prepaid forward purchase agreement -     969  
    Inventories 78,682     64,184  
      1,321,134     1,464,436  
    Non-current assets      
    Property, plant and equipment, net 21,043,668     21,786,365  
    Intangible assets, net 2,475,974     2,381,465  
      23,519,642     24,167,830  
           
    Total assets 24,840,776     25,632,266  
           
    LIABILITIES      
    Current liabilities      
    Trade and other payables 5,503,478     6,560,559  
    Lease liabilities 149,516     192,282  
    Borrowings 4,672,286     5,666,160  
    Deferred underwriting fee payable 2,153,125     2,753,125  
    Tax liabilities 203,020     56,540  
      12,681,425     15,228,666  
           
    Non-current liabilities      
    Lease liabilities (non-current) 1,852,343     1,974,524  
    Borrowings (non-current) -     112,319  
    Deferred tax liabilities 298,000     296,000  
      2,150,343     2,382,843  
           
    Total liabilities 14,831,768     17,611,509  
           
    Net assets 10,009,008     8,020,757  
           
    EQUITY      
    Share Capital 11,892     10,892  
    Accumulated losses (100,457,352 )   (99,985,928 )
    Other reserves 3,422,799     3,422,799  
    Share premium reserve 92,183,727     89,725,052  
    Exchange Reserves (123,198 )   (123,198 )
    Revaluation Surplus 14,971,140     14,971,140  
    Total equity 10,009,008     8,020,757  
           
           

    ESGL Holdings Limited                                  
    Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Financial
    Periods ended June 30, 2024 and 2023

      June 30, 2024 June 30, 2023
      US$ US$
    Revenue 3,487,879   3,394,313  
         
    Other income 282,213   189,335  
         
    Cost of inventory (78,366 ) (407,291 )
         
    Logistics costs (264,638 ) (792,079 )
         
    Depreciation of property, plant and equipment (781,394 ) (758,519 )
         
    Amortization of intangible assets (559,340 ) (426,515 )
         
    Employee benefits expense (878,320 ) (639,060 )
         
    Finance expense (147,128 ) (158,912 )
         
    Other operating expenses (1,383,850 ) (991,526 )
    Loss before income tax (322,944 ) (590,254 )
         
    Income tax expense (148,480 ) (39,000 )
         
    Net loss and comprehensive loss (471,424 ) (629,254 )
         
    Loss per share (0.03 ) (0.10 )
    Weighted average number of shares 14,000,514   6,378,267  
         
         

    ESGL Holdings Limited
    Consolidated Statement of Changes in Equity for the Financial Periods ended June 30, 2024 and 2023

      Share
    capital
      Revaluation
    reserve

      Exchange
    reserve

      Share
    premium
    reserve

      Other
    reserve

      Accumulated
    losses

      Total equity
      US$   US$   US$   US$   US$   US$   US$
                               
    2023                          
    Beginning of financial year 10,000   15,157,824   (460,481 )   -   3,422,799   (5,006,590 )   13,123,552  
    Issuance of new shares 3   -   -     753,587   -   -     753,590  
    Loss for the year -   -   -     -   -   (629,254 )   (629,254 )
    Balance as of June 30, 2023 10,003   15,157,824   (460,481 )   753,587   3,422,799   (5,635,844 )   13,247,888  
                               
    2024                          
    Beginning of financial year 10,892   14,971,140   (123,198 )   89,725,052   3,422,799   (99,985,928 )   8,020,757  
    Issuance of new shares 1,000   -   -     2,458,675   -   -     2,459,675  
    Loss for the year -   -   -     -   -   (471,424 )   (471,424 )
    Balance as of June 30, 2024 11,892   14,971,140   (123,198 )   92,183,727   3,422,799   (100,457,352 )   10,009,008  
                               
                               

    ESGL Holdings Limited
    Consolidated Statement of Cash Flows for the Financial Periods ended June 30, 2024 and 2023

      June 30, 2024     June 30, 2023  
      US$     US$  
    Cash flows from operating activities      
    Loss before income tax (322,944 )   (590,254 )
           
    Adjustments for:      
    - Prepaid forward purchase agreement written-off 969     -  
    - Depreciation of property, plant and equipment 781,394     758,519  
    - Amortisation of intangible assets 559,340     426,515  
    - Interest income (3 )   (12,002 )
    - Interest expense 147,128     158,912  
    - Loss/(gain) on disposal of property, plant and equipment -     1,795  
    - Foreign exchange adjustment (191,391 )   312,051  
      974,493     1,055,536  
    Changes in operating assets and liabilities:      
    - Trade and other receivables 40,746     (687,016 )
    - Inventories (14,498 )   153,252  
    - Trade and other payables (1,043,521 )   167,205  
    Net cash (used in)/generated from operating activities (42,780 )   688,977  
           
    Cash flows from investing activities      
    Purchase of property, plant and equipment (38,697 )   (115,334 )
    Proceeds from disposal of property, plant and equipment -     1,352  
    Additions to intangible assets (653,849 )   (633,912 )
    Interest received 3     12,002  
    Net cash used in investing activities (692,543 )   (735,892 )
           
    Cash flows from financing activities      
    Proceeds from bank borrowings 747,197     2,246,518  
    Repayment of bank borrowings (1,691,453 )   (1,831,341 )
    Shares issuance 2,459,675     753,590  
    Repayment of underwriting fees (600,000 )   -  
    Repayments of lease liabilities (143,228 )   (57,718 )
    Interest paid (147,128 )   (158,912 )
    Net cash provided by provided by financing activities 625,063     952,137  
           
    Net (decrease)/increase in cash and bank balances (110,260 )   905,222  
           
    Cash and cash equivalents      
    Beginning of the financial year 366,761     252,399  
    End of the financial periods 256,501     1,157,621  
           


    1. General information

      ESGL Holdings Limited

      ESGL Holdings Limited (“ESGL” or the “Company”) was incorporated in the Cayman Islands on November 18, 2022. Following the successful completion of a business combination on August 3, 2023 (the “Business Combination”), ESGL listed on Nasdaq and became a publicly traded company. ESGL’s stock commenced trading August 4, 2023.

      ESGL’s subsidiaries are as follows:

      Environmental Solutions Group Holdings Limited (“ESGH”)

      Environmental Solutions Group Holdings Limited is a holding company incorporated under the laws of the Cayman Islands as an exempted company with limited liability on June 14, 2022. The address of its registered office is 71 Fort Street, PO Box 500, George Town, Grand Cayman, KY1-1106, Cayman Islands. As a holding company with no material operations of its own, ESGH conducts all of its operations through its operating entity incorporated in Singapore, Environmental Solutions (Asia) Pte. Ltd.

      Environmental Solutions Asia Holdings Limited (“ESAH”)

      ESAH, a wholly-owned subsidiary of the ESGH, was incorporated on June 29, 2022 and domiciled in the British Virgin Islands with its registered office at Mandar House, 3rd Floor, Johnson’s Ghut, Tortola, British Virgin Islands.

      Environmental Solutions (Asia) Pte. Ltd. (“ESA”)

      ESA was incorporated and domiciled in Singapore, with its registered office at 101 Tuas, South Avenue 2, Singapore 637226. ESA is a waste management, treatment and recycling company involved in the collection and recycling of hazardous and non-hazardous industrial waste from customers such as pharmaceutical, semiconductor, petrochemical and electroplating companies.

      As ESGL, ESGH, ESAH and ESA (collectively the “Group”) were under common control, the Business Combination constituted a reorganization under common control and are required to be retrospectively applied to the consolidated financial statements at their historical amounts. The consolidated financial statements have been prepared as if the existing corporate structure had been in existence throughout all periods. This includes a retrospective presentation for all equity related disclosures, including issued shares, which have been revised to reflect the effects of the reorganization in accordance with International Financial Reporting Standards (“IFRS”) as of June 30, 2024 and 2023.

    Subsidiaries

    The consolidated financial statements of the Group include:

        Place of Effective equity held by the Group
        incorporation
    Name of subsidiary Principal activities and business
          2024 2023
          % %
    Held by the Company        
    Environmental Solutions Group Holdings Limited Investment holding company Cayman Island 100 100
             
    Held by Subsidiary        
    Environmental Solutions Asia Holdings Limited Investment holding company British Virgin Islands 100 100
             
    Environmental Solutions (Asia) Pte. Ltd. Waste management and recycling of industrial wastes Singapore 100 100
             

    The accompanying notes form an integral part of these financial statements.





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    ESGL Holdings Limited Reports First Half 2024 Financial Results Operating Subsidiary Achieves First Profitable Half Year, Optimistic Outlook for Second HalfSINGAPORE, Sept. 20, 2024 (GLOBE NEWSWIRE) - ESGL Holdings Limited (NASDAQ: ESGL) (“ESGL” or the “Company”), a leading carbon neutral, innovative …