Chiho Environmental Group (00976.HK) announced on August 15th that it is expected to record a net profit of not less than HKD 38 million for the six months ended June 30, 2024, compared to a net profit of HKD 50.2 million for the six months ended June 30, 2023.

The group's financial performance in the first half of 2024 was mainly affected by the slowdown of global economic growth, geopolitical tensions, and the uneven impact of market fluctuations in different regions. In Europe, although inflation is on a downward trend and economic activity is gradually picking up, the ongoing conflict between Russia and Ukraine and the weak economic sentiment pose obstacles to the region's economic recovery. The region's metal industry is also affected by the shrinkage of downstream market demand, with the trading volume of black and nonferrous metals showing a downward trend, which brings great pressure to the business growth of metal recycling and trading-related enterprises.

Despite the above situation, the group is more cautious in screening and investing in projects, and strengthens financial management such as profit level and fund guarantee. At the same time, the group continues to implement the policy of "stable business foundation" in its European entities, striving to balance social cost pressure and enterprise production and operation pressure, and implement a dynamic cost reduction and efficiency enhancement policy. Thanks to the group's implementation of established development strategies and operating plans, and efforts to ensure the efficient operation of mature business chains, and actively improve the lean production and operation level, the group's revenue in the first six months of 2024 has reversed the decline since the second half of last year, achieving positive growth against the trend. Among them, the revenue, gross profit, and gross profit margin in the Asia region have all grown significantly.