China Resources Environmental Protection (00587.HK) announced that based on the unaudited comprehensive management accounts as of June 30, 2024, and the information currently available to the Board of Directors of the Group, the net income attributable to shareholders of the Company for the reporting period is expected to decrease by about 40% to 60% compared to the same period last year.
The Board of Directors believes that this expected decrease is mainly due to: (1) despite the Group's active maintenance of customer relationships during the reporting period, the 'volume of waste entering the plant' and 'volume of waste treatment' remained at a normal level, but the fierce competition in the waste treatment market led to a significant decline in waste disposal service fees; and (2) the landing time of some intended orders for the treatment of polluted soil was delayed, and the volume of industrial solid waste entering the plant decreased compared to the same period last year.
In the context of fierce industry competition and overcapacity, the Group has made every effort to expand its market, strengthen production management coordination with cement enterprise factories, and continue to solidify its basic management. Despite the impact of continued price declines in disposal, the Group's profitability has declined slightly, but its operational status has remained stable and various work has been orderly carried out. Based on the evaluation of the unaudited comprehensive management accounts of the Group as of June 30, 2024, the Board of Directors believes that the overall financial and operational situation of the Group is still stable and holds an optimistic attitude towards the long-term growth and development of the Group.