Down more than 90% year on year! Conch Environmental Protection expects a net profit attributable to shareholders of 2 million to 8 million in the first half of the year!

Conch Environmental Protection announced on July 21 that the Group's revenue in the first half of 2025 is expected to be about RMB 760 million to RMB 800 million. Net profit attributable to equity shareholders of the Company recorded was approximately RMB2 million to RMB8 million (six months ended 30 June 2024: RMB82.14 million ). More than 90% year-on-year decline.

The Board is of the view that such expected decrease is mainly due to the fact that in the first half of 2025, in the face of the increasingly fierce competition in the industry, the Group strengthened its efforts in market expansion, and the total volume of solid and hazardous waste disposal continued to grow. The disposal price remained stable as compared to the fourth quarter of last year, but still showed a downward trend as compared to the same period last year. The production capacity of some projects in Henan, Shandong and Northeast China was insufficient, and the transfer of new production projects to fixed assets resulted in an increase in depreciation and amortization.

The Company has taken a number of measures to improve its operating performance, including: adhering to the operating strategy of "raising the price of hazardous waste and increasing the amount of solid waste", strengthening market exchanges and cooperation, and promoting the stabilization and recovery of disposal prices. We will strengthen the market expansion of bulk solid waste and polluted soil, increase the contribution of solid waste benefits, continue to consolidate the advantages of cement kilns in synergy with the main business, and promote the implementation of projects with scale effects such as sludge disposal. Guided by the dual-carbon policy, the Company will speed up the distribution of alternative fuel sources and expand the scale of alternative fuel business; continue to strengthen the production management of cement enterprises and factories, and promote the continuous reduction of operating costs; And strengthen the research and development of technologies such as new pollutant treatment, sludge deodorization and resource utilization of fly ash by-products, so as to accelerate the transformation and application of scientific and technological achievements.