China Conch Environment Protection Holdings Limited Issues Profit Warning for First Half of 2026
Key Points from the Announcement
- Profit Warning Released: The Board of China Conch Environment Protection Holdings Limited has issued a profit warning based on preliminary unaudited consolidated management accounts for the six months ending 30 June 2026.
- Expected Loss for 1H 2026: The Group expects to record a loss attributable to equity shareholders in the range of RMB 10 million to RMB 25 million for the period.
- Comparison to Previous Year: In contrast, the Group posted a net profit of approximately RMB 4.33 million for the same period in 2025.
Factors Impacting Performance
- Market Expansion vs. Margin Pressure: While the Group expanded its market presence and grew volumes of solid and hazardous waste disposal (including alternative fuels), intense competition led to persistently declining disposal prices and narrowing gross profit margins.
- Cement Kilns Operating Rate: Operating rates of cement kilns declined, with capacity utilisation in Henan and Northwest China remaining insufficient. This affected the Group’s waste disposal volumes and overall efficiency.
- Oil Sludge Segment: The oil sludge business recorded inadequate inbound volumes, while disposal costs remained elevated, further impacting profitability.
- Government Subsidies: Recognised government subsidies decreased compared to the previous period, reducing the Group’s income.
Measures by the Company to Improve Performance
- Operational Strategy Adjustments: The Company is stabilising and increasing prices for hazardous waste, optimising customer structure, and expanding high-value materials. It is also engaging with industry peers to promote a healthier industry ecosystem and improve economic benefits.
- Market Expansion: Deepening presence in county-level markets, expanding business of bulk solid waste and contaminated soil, and deploying alternative fuel sources to consolidate and increase market share.
- Cost Control & Efficiency: Strengthening production management with cement enterprises, optimising cost control for production operations, and promoting cost reduction and efficiency enhancement.
- R&D Initiatives: Accelerating research and implementation of projects in mature industries such as medical waste, strengthening forward-looking technology R&D, and enhancing core competitiveness.
Important Information for Shareholders and Investors
- Interim Results Pending: The unaudited interim results for the first half of 2026 are still being finalized. The information in the announcement is based on management’s preliminary assessment and unaudited accounts, which are subject to adjustment.
- Interim Results Announcement: Shareholders and investors are advised to read the Group’s interim results announcement, expected by the end of August 2026, for complete and audited financial details.
- Caution Advised: The Board advises shareholders and investors to exercise caution when dealing in the Company’s securities due to the significant expected loss and the factors impacting performance.
Board Composition
The Board comprises:
- Executive Directors: Mr. ZHOU Xiaochuan (Chairman), Mr. WANG Chunjian (General Manager), Ms. LIAO Dan
- Non-Executive Directors: Mr. LIU Tiantian, Mr. LYU Wenbin, Mr. MA Wei
- Independent Non-Executive Directors: Mr. DING Wenjiang, Ms. WANG Jiafen, Ms. LI Chen
Potential Share Price Impact
The significant expected loss for the first half of 2026, adverse market conditions, reduced margins, and decreased government subsidies all represent price-sensitive information. This profit warning and change from a profit in the previous year to a loss may negatively affect investor sentiment and share price. Investors should closely monitor further announcements and exercise caution.
Disclaimer
This article is based on information from China Conch Environment Protection Holdings Limited’s official announcement. The interim results are yet to be finalized and audited, and may be subject to change. Investors are advised to review the official interim results announcement and consult their financial advisors before making any investment decisions.
繁體中文版本
中國海螺環保控股有限公司發布2026年上半年盈警詳情
公告重點
- 盈警發佈：董事會根據初步未經審核合併管理賬目，預計2026年上半年錄得股東應佔虧損約人民幣1,000萬至2,500萬元。
- 與去年同期比較：2025年同期公司錄得約人民幣433萬元淨利潤。
影響業績的主要因素
- 市場擴張與毛利壓力：公司積極拓展市場及固體和危險廢棄物處理業務，惟市場競爭激烈，處理價格持續下跌，毛利率收窄。
- 水泥窯運營率：水泥窯運營率下降，河南及西北地區產能利用率不足，影響業務表現。
- 油泥業務：油泥業務收貨量不足，處理成本持續高企，拖累盈利。
- 政府補貼：相關政府補貼較去年同期減少，收入下降。
公司改善措施
- 穩定並提升危險廢棄物價格、優化客戶結構、擴大高價值物料比例、與同業積極溝通，促進行業生態健康發展，提高經濟效益。
- 深化縣級市場布局，擴展大宗固廢和受污染土壤業務，推進替代燃料部署及原料供應規模，鞏固及提升市場份額。
- 加強與水泥企業生產管理，優化生產運營成本控制，促進降本增效。
- 加快成熟行業（如醫療廢棄物）項目研發與落地，加強前瞻性技術研發，提升核心競爭力。
股東及投資者重要事項
- 待公佈中期業績：2026年上半年未經審核中期業績仍在最終確認，數據或有調整。
- 中期業績公告：建議股東及投資者密切留意預計於2026年8月底公佈的中期業績公告。
- 謹慎操作：由於虧損預期及多項不利因素，董事會建議股東及投資者在買賣公司證券時須謹慎。
董事會組成
董事會包括：
- 執行董事：周小川（主席）、王春建（總經理）、廖丹
- 非執行董事：劉天天、呂文斌、馬偉
- 獨立非執行董事：丁文江、王家芬、李晨
對股價可能影響
預期虧損、行業競爭壓力、毛利率收窄及政府補貼減少，均屬敏感資訊，或影響股價及投資者情緒。投資者應密切關注後續公告，謹慎操作。
免責聲明
本文章根據中國海螺環保控股有限公司公告資料整理，相關業績數據仍待最終確認及審核，或有變動。投資者應參閱公司正式中期業績公告，並諮詢專業財務顧問，先行作出投資決策。
