SIIC Environment Holdings Ltd first profit declines over lower construction revenue

The company generally had a lacklustre performance during the quarter.

SIIC Environment Holdings Ltd. reported a 15.8% decline in its net profit attributable to shareholders in the first quarter of 2024 (Q1 2024) to $23.63m (RMB126.3m) mainly due to lower revenue.

In a bourse filing, the company said revenue was down 15.1% year-on-year (YOY) to $304.59m (RMB1.628b). This was attributed to the decline in construction revenue by 52.8% YOY to $54.26m (RMB290m).

SIIC Environment said the construction of Shanghai Baoshan Renewable Energy Utilization Centre was completed during FY2023, whilst most of the new projects obtained in FY2024 have not been commenced during the quarter.

Meanwhile, the company said its net profit also fell 15.3% to $38.35m (RMB204.98m) in the first quarter. 

Given the decline in profit, earnings per share fell 15.8% to $0.09 (RMB0.49).

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For the rest of the year, SIIC Environment expects recent green policies in China to drive growth and business development opportunities. These measures have also presented opportunities to upgrade and construct equipment for wastewater treatment and water supply business, it added.

“The group will continue to follow the lead of national policies, put the concept of ‘clear waters and green mountains are as valuable as mountains of gold and silver’ into practice, actively participate in building a ‘Beautiful China’, plus contribute to Chinese-style modernization that supports the harmonious co-existence of man and nature,” SIIC Environment CEO Zhu Dazhi said. 

He also assured the company will enhance the integration and application of technological innovation.

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