Hongcheng Environmental Technology’s 2023 Financial Results Show Significant Decline, Warning Signs for Investors

Hongcheng Environmental Technology (HKG:2265) reported its full-year 2023 financial results, showing a significant decline in both revenue and net income. Revenue decreased by 52% to CN¥108.0m compared to FY 2022, while net income dropped by 78% to CN¥17.5m from the previous year. The profit margin also declined to 16% from 36% in FY 2022, mainly due to the decrease in revenue. Earnings per share (EPS) also decreased to CN¥0.017 from CN¥0.08 in FY 2022.

As shown in the chart above, Hongcheng Environmental Technology’s share price has remained relatively unchanged from a week ago as of March 31st, 2024. It is important for investors to be aware of potential risks when investing, and there are two warning signs for Hongcheng Environmental Technology that they should take into consideration.

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