Half-year Results

Hydrogen Utopia International PLC, a company specialising in turning non-recyclable mixed waste plastic into hydrogen and other carbon-free fuels, new materials or distributed renewable heat, is pleased to announce its results for the six months to 30 June 2024.

CEO Shareholders' Letter

Dear Shareholders,

I want to take a moment to reflect on the journey of successful companies like Nvidia. Once considered a penny stock for over two decades, Nvidia has become a leading force in the semiconductor industry. This remarkable turnaround is attributed to their strategic risk-taking and significant investments in research and development. Their experience serves as a powerful reminder that, while the path may be long, patience and perseverance can ultimately yield substantial rewards.

In a similar vein, Hydrogen Utopia is committed to making a meaningful impact in the fields of plastic destruction and hydrogen production. We acknowledge that we are still in the early stages of our development and face challenges, particularly in navigating regulatory complexities and securing funding. Nevertheless, we are proactive and eager to launch our first plant. Please do not forget that plastic production and consumption is growing exponentially yet only 10 % of plastics can be successfully recycled. We just need one insightful institution or investor to understand how important our waste plastic to hydrogen system is. Further, hydrogen is not just fuel for heavy vehicles but even plays a crucial role as a key component in semiconductor production.

Nonetheless, our primary focus remains on heavy-duty transport, with city buses and trucks being the main consumers of our hydrogen. The data is very promising. While the transition may appear slow, hydrogen is steadily becoming a significant force globally. The global hydrogen buses market is valued at approximately $10 billion in 2023 and is projected to grow significantly, reaching around $163 billion by 2030. This indicates a remarkable compound annual growth rate (CAGR) of 47.7%. This rapid expansion reflects increasing investments in hydrogen infrastructure and a growing emphasis on sustainable transportation solutions. The European hydrogen bus market is poised for significant growth in the coming years. Valued at around €500 million in 2023, the market is projected to reach approximately €7 to €10 billion by 2030, indicating a substantial increase. It's estimated that over 10,000 hydrogen buses could be in operation across various European cities by 2030, compared to around 1,500 in 2023. As of the beginning of this year Solaris- the largest public bus manufacturer in Europe received orders for 700 hydrogen-powered buses. Investment in hydrogen refuelling infrastructure is expected to exceed €3 billion by 2030, which will facilitate the expansion of hydrogen bus fleets. Additionally, the European Union plans to allocate over €1 billion specifically for hydrogen initiatives as part of its Green Deal and recovery plans, highlighting the importance of clean transport. Many European cities aim to have 50% of their public transport fleets operating on zero-emission technologies by 2030, with hydrogen buses playing a crucial role in achieving this ambitious goal. These figures illustrate the significant momentum and potential for the hydrogen bus market in Europe. Our system will be a perfect fit in this hydrogen-powered future. Our currently envisaged top location for deployment of a waste plastic to hydrogen system is Longford, where we are actively collaborating with Powerhouse Energy Group (AIM: PHE).

As you are aware, we have exercised our option to acquire a medicinal cannabis facility in North Macedonia, capitalising on the substantial growth in the European medicinal cannabis market. Ohrid Organics is making excellent progress overall. While Ohrid Organics is pushing hard to meet all necessary regulatory requirements, Ohrid Organics is pleased to say that they have finished product ready for supply to a major cannabis player which will be shipped upon meeting all regulatory hurdles. Ohrid Organics has grown high quality finished product, with additional quantities in quarantine and processing. Ohrid Organics is also now welcoming a number of key visitors interested in future sales contracts. Ohrid Organics is increasingly recognised as a high-quality, low-cost producer of premium medicinal cannabis, and expects to meet its profit forecast for 2025. The medicinal cannabis market is rapidly expanding, particularly in Germany, where recent decriminalisation has significantly reduced stigma for patients. Additionally, 21 out of 27 EU member states have legalised medicinal cannabis, leading to a severe supply shortage for patients of high-quality product.

Thankfully our hydrogen technology has garnered significant attention and support from the EU, indicating a strong demand for our solutions. We welcome Ursula von der Leyen's recent commitment to reducing bureaucratic hurdles, which will facilitate our progress. We have been patiently awaiting the easing of environmental regulations that have hindered technologies like ours for years. We are optimistic that the bureaucratic obstacles will now be significantly reduced.

With the unwavering support of our dedicated Board-who consistently go above and beyond-we have successfully reduced our operating losses and secured sufficient working capital to navigate these challenging times. In alignment with Winston Churchill's philosophy that "Success is the ability to go from failure to failure without losing your enthusiasm," I remain optimistic despite the challenges we face. I encourage all of you to maintain your enthusiasm and confidence in our journey.

Thank you for your continued support.

For more information about the Company, please refer to our website: www.hydrogenutopia.eu

Work continues on building a pipeline of HUI facilities in Europe [and beyond]. New markets are keen to learn about the HUI technology and support us in exploring setting up waste to hydrogen facilities in their locality.

Research and Development remains a key component at this stage of the Group's strategy. Shortly after the period which these interim statements cover, a grant of up to EUR 300,000 under the EU Just Transition Fund and Enterprise Grants Scheme was awarded to Alister Future Technologies Ltd, one of the Company's Irish subsidiaries, to fund the pilot phase of a waste plastic to hydrogen facility at Longford, Ireland. This will give our R&D capabilities and facilities in Ireland a further boost.

During August 2024, HUI's CEO, Aleksandra Binkowska, took out a personal loan facility of up to £3m, pledging security over 50m of her ordinary shares. Her intention is to use this personal loan facility to support HUI's working capital requirements without having to dilute shareholders' funds through an equity raise. Prior to the release of these interim accounts, Aleksandra had already on-lent £150,000 to HUI with more funding anticipated during the remainder of 2024.

The Board of Directors continue to monitor the Group's project pipeline, which includes current and future projects, as well as Group cashflows for OPEX and project specific funding. Given the significant challenges posed by current market conditions in raising capital, the Board has sought alternative income streams to support the Group's objectives in waste-to-energy.

Related party transactions

Outlook

Financial Performance

• Admin expenses for the half year of £0.5m (H1 2023: £0.9m)
• Gross Loss for period decreased to £0.4m (H1 2023: £0.8m)
• Cash at bank as at 30 June 2024 of £0.24m (H1 2023: £2.1m)

Principal risks

Unaudited Consolidated Statement of Comprehensive Income for the period ending 30 June 2024

Unaudited Consolidated Statements of Financial Position as at 30 June 2024

Unaudited Consolidated Statement of Changes in Equity for the period ending 30 June 2024

Unaudited Consolidated Statement of Cash Flows for the period ended 30 June 2024

Notes to the Interim Financial Information

General information

Hydrogen Utopia International Plc is a company incorporated and domiciled in England and Wales. The Company's registered office changed from C/O Laytons Llp, 3rd Floor Pinners Hall, 105-108 Old Broad Street, London, EC2N 1ER to C/O Laytons Llp, Yarnwicke, 119-121 Cannon Street, London, EC4N 5AT on 16th July 2024. The Company is listed on the LSE main market (ticker: HUI).

The unaudited consolidated financial information comprises the financial information of Hydrogen Utopia International Plc, HU2021 International UK Limited, Hydropolis United Sp.Z.O.O., Plastic Gold IKE, Alister Future Technologies (AFT) Limited, Eranova Longford Limited and HU Future B.V. (the "Group").

The principal activities of the entities in the Group are as follows: -

There have been no significant changes in these activities during the relevant financial periods.

The projections show that the Company will have sufficient funding to be able to continue as a going concern on the basis of its cash balances as at 30 June 2024.

• Presentational currency
• Summary of significant accounting policies
• Segmental reporting

No single customer has accounted for more than 10% of total revenue during the periods presented.

Related Party Disclosure

As at 30 June 2024 the group was owed £250 by Plastic Power Limited (A Binkowska) and £403 by The Plastic Neutrality Pledge (A Binkowska).

Significant events during the period

On 2 January 2024 an RNS confirmed that the board had exercised HUIs option to acquire 49% of Ohrid Organics Ltd (OOL) expecting dividends to provide HUI with the necessary cashflow in 2024 and beyond for working capital and fund development of HUI's first waste plastic to hydrogen facility.

On 22 January 2024 the board granted share options to James Nicholls-May, CFO worth £25,000 at a price of 3.875p per share.

On 6 February 2024 it was announced that a wholly owned subsidiary of King Fild DOO (KFD) agreed the acquisition of 13,567 sqm of land adjacent to the King Fild facility in Ohrid, North Macedonia. This land could be used for a HUI waste plastic to hydrogen facility.

On 26-27 February 2024 the Company announced it was in talks with Essential Energy Holding Group Corp (EEH), a company specialising in biofuels with operations in Europe, South America and USA with revenues in excess of EUR365m and profits before taxes of EUR40m, about a possible reverse takeover with the target company being valued at £500m.

On 5 March 2024 OOL's subsidiary, KFD had its first commercial medicinal cannabis harvest of 200kg.

On 11 March 2024 Alister Future Technologies Ltd (AFT), a wholly owned subsidiary of HUI entered into a subscription and shareholder agreement with Powerhouse Energy International Ltd (PHE International) on a joint venture at Longford, Ireland using the previously wholly owned subsidiary Eranova Longford Ltd (Eranova), which has a lease agreement of 25 years for the site.

On 15 April 2024 HUI provided an update on progress at KFD's facilities in North Macedonia which included highlights of the successful harvests, upgrades to facilities, strain developments and expansion progress.

On 18 June 2024 HUI's subsidiary AFT was successful in being awarded a grant of up to EUR 300,000 under the EU Just Transition Fund and Enterprise Grants Scheme to fund the pilot phase of a waste plastic to hydrogen facility at Longford, Ireland.

On 25 June 2024 HUI informed the market that HUI and EEH had mutually agreed that the potential reverse takeover of EEH was not in the Parties' best interests.

On 25 June 2024 HUI confirmed that the acquisition of 49% of OOL is proceeding.

On 27 June 2024 the Company held it's AGM in Ohrid, North Macedonia, allowing shareholders and interested parties the opportunity to see KFD's facilities in a video call after the HUI AGM.

Called up share capital

Basic and diluted earnings per share

The calculation of earnings per share is based on the following earnings and number of shares.

• Related party transactions
• Events after the reporting period

On 8 July 2024 HUI changed auditor and registered office.

On 27 August 2024 HUI's CEO took out a personal loan facility of up to £3m, pledging security over 50m of her ordinary shares. Her intention is to use this personal loan facility to support HUI's working capital requirements without having to dilute shareholders' funds through an equity raise.£150,000 was already on-lent to HUI.

On 29 August 2024 Howard White, executive director, bought 500,000 additional ordinary shares at 4.88p bringing his total interest to 16,275,834 ordinary shares (4.22%).