CONCH ENVIRO (00587) issued a profit warning, expecting the net profit attributable to shareholders in the first half of the year to decrease year-on-year to between 20 million and 80 million yuan.

CONCH ENVIRO (00587) announced that the Group is expected to achieve a revenue of approximately RMB 760 million to RMB 800 million in the first half of 2025 (RMB 804 million for the six months ended June 30, 2024); and the attributable net profit to equity shareholders of the company is expected to be approximately RMB 2 million to RMB 8 million (RMB 82.14 million for the six months ended June 30, 2024). The expected decrease is mainly due to: in the first half of 2025, facing increasingly fierce industry competition, the Group will increase its market expansion efforts, while maintaining growth in the total volume of hazardous waste disposal. Disposal prices have remained relatively stable compared to the fourth quarter of last year, but still show a downward trend compared to the same period last year; the production capacity utilization rate of some projects in Henan, Shandong, Northeast China, among others, is insufficient, and the increase in depreciation and amortization resulting from new production projects coming into operation.