Huicheng Environmental seeks A-share issuance to fund projects, reverse profit decline

Qingdao Huicheng Environmental Technology Group Co., Ltd. is proceeding with a non-public issuance of A-shares to raise up to RMB 850,000,000 for key environmental projects in Jieyang, Guangdong, including a general industrial solid waste treatment facility and an environmental resource utilization facility, as well as supplementing working capital. The company's application for the offering was approved by the Shenzhen Stock Exchange on October 28, 2025, with final registration pending China Securities Regulatory Commission approval.

This move comes as the company reported a significant decrease in net profit in 2024 and the first half of 2025. This was largely due to a decline in gross profit from its waste catalytic converter and petcoke ash treatment services, coupled with rising period expenses. The petcoke ash treatment business, while a new revenue source, faces challenges from decreasing waste volumes and pricing. The non-public issuance is intended to strengthen Huicheng Environmental's financial structure and support strategic projects aimed at long-term profitability and expansion.

Qingdao Huicheng Environmental’s share offering and related financial data were disclosed on October 29 and 31, 2025, respectively.