CONCH ENVIRO (00587) fell more than 5%, declining 5.36% to HK$0.53 at the time of writing, with a turnover of HK$649,300. The drop follows a profit warning issued on the evening of February 27. The group expects to report an attributable loss to equity shareholders of approximately RMB 190 million to RMB 270 million for the 2025 fiscal year, compared to an attributable net profit of about RMB 6.28 million in 2024. According to the announcement, the expected decline in performance is primarily due to intensified market competition despite the group's efforts to expand its market presence, resulting in persistently low disposal prices. Additional factors include increased depreciation and amortization from newly operational projects, a rise in credit impairment losses, and lower utilization rates of cement kilns leading to underutilized capacity at some projects. An asset impairment provision of RMB 70 million to RMB 100 million is expected to be recognized.
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