Shares of Dongjiang Environmental Company Limited (00895) fell more than 4% in trading. At the time of writing, the stock was down 4.17% to HK$1.61, with a turnover of HK$7.13 million.
The decline follows the company's announcement on July 14 regarding its expected financial performance for a specified reporting period. The company anticipates recording a net loss attributable to shareholders of the listed company in the range of RMB 250 million to RMB 270 million. This represents a reduction in the loss compared to the same period last year by between 2.94% and 10.13%. After adjusting for non-recurring gains and losses, the net loss is also projected to be between RMB 250 million and RMB 270 million, indicating a year-on-year improvement in the loss ranging from 7.64% to 14.48%.
Key Factors Behind the Movement
The company has recently addressed several investor concerns. Regarding the hazardous waste treatment segment, the company noted that its operations span a wide geographical area with dozens of subsidiaries and that the industry is currently in a state of intense competition, for which it has reminded investors of the associated risks. For its precious metals recovery business, the company stated that profitability is less tied to the absolute price of precious metals and more dependent on the price differentials.
A significant development is the downgrade of the company's issuer credit rating and related bond ratings. The company acknowledged that this could potentially affect its corporate image. The actual impact on business operations and bank financing will depend on specific circumstances, and the company advised stakeholders to refer to its official announcements for authoritative information.
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