Xinyuan Wanheng Holdings (02326) announced interim results. Shareholders should have accounted for a loss of HK$17.415 million

According to the Zhitong Finance App, Xinyuan Wanheng Holdings (02326) announced results for the six months ended September 30, 2024, with revenue of HK$292 million, a year-on-year decrease of 59.9%; loss attributable to company owners was HK$17.415 million, profit of HK$834,000 for the same period last year; basic loss per share was HK0.083 cents.

For the procurement and sale of metallic minerals and related industrial raw materials business, classification revenue decreased by about 61.1% year over year to approximately HK$255 million. The classification profit reported in this category decreased by approximately 80.5% year over year to approximately HK$845,000. The Group acts as a client in this business because the Group undertakes inventory risks by entering into different sales and procurement agreements with suppliers and customers, and can freely determine the price of the products sold.

In terms of the production and sale of industrial products business of Ningxia Huaxia Environmental Resources Comprehensive Utilization Co., Ltd. (environmental protection company), classification revenue decreased by about 49.5% year-on-year to about HK$3.595 million. The classified profit reported in this category decreased by about 183.4% from classification profit of approximately HK$7.821 million in the same period last year to a classification loss of approximately HK$6.52 million for the current period. Sales of by-products declined during the period due to a decrease in demand for by-products from environmental companies. Environmental companies are trying to attract more sales at better prices, but there is no significant effect yet. Since environmental companies' by-products are less pure, environmental companies need to continuously adjust their strategies to increase sales and increase classification profits.