Gelonghui, January 12 | Datang Environment (01272.HK) announced, according to the board's preliminary assessment of the latest unaudited comprehensive management accounts available to the Group for the year ended December 31, 2023 and the latest information available to the board of directors, the Group is expected to record profit after tax of approximately RMB 416 million to approximately RMB 564 million. Compared with that, profit after tax for the year ended December 31, 2022 is approximately RMB 238 million.
The Group's estimated profit increase after tax for the year ended December 31, 2023 is mainly due to the following reasons: (i) Increased profit from the Group's environmental protection facility franchise business: The Group reduced consumption of major raw materials such as desulfurizers and denitrification reducing agents by implementing a number of measures to improve quality and efficiency. Coupled with the reduction in the purchase unit price of such materials, the cost of environmental protection franchise business was further reduced. (ii) Reduction in Group engineering business losses: This is mainly due to the increase in the amount of new contracts signed by the Group for environmental protection facilities engineering, water engineering and renewable energy engineering projects, as well as an increase in gross margin, resulting in an increase in the Group's engineering business revenue and gross profit.