Hongcheng Eco-Friendly Technology (02265.HK) announced that the company is expected to record a profit attributable to its owners of approximately RMB 20.0 million to RMB 20.5 million for the six months ending June 30, 2024, an increase of approximately 90.5% to 95.2% compared to the profit attributable to its owners of approximately RMB 105.0 million recorded in the same period of 2023.
It is expected that revenue of approximately RMB 105.1 million will be recorded for the six months ending June 30, 2024, an increase of approximately 113.6% compared to the revenue of approximately RMB 49.2 million recorded in the same period of 2023.
The board of directors believes that the main reason for the increase profit attributable to its owners and revenue is that the group's sulfur production line (new product line) started production and operation in the late 2023. The group can use sulfur concentrate to produce sulfuric acid, iron powder and electrical utilities for sale to downstream customers. This new product line has generated revenue of approximately RMB 46.3 million for the six months ending June 30, 2024.