YeChiu Metal Recycling (601388.SH) issued a profit warning, with an expected net profit of 34.9029 million to 52.3029 million in 2024, a year-on-year decrease of 61% to 74%.

YeChiu Metal Recycling (601388.SH) announced that, according to preliminary calculations by the finance department, it is estimated that the net profit attributable to the owners of the parent company in 2024 will be between 34.9029 million yuan and 52.3029 million yuan, a decrease of 80.6 million yuan to 98 million yuan compared to the same period last year, representing a year-on-year decrease of 61% to 74%. It is expected that the net profit attributable to the owners of the parent company in 2024, excluding non-recurring gains and losses, will be between 29.9363 million yuan and 44.8363 million yuan, a decrease of 98.1 million yuan to 113 million yuan compared to the same period last year, representing a year-on-year decrease of 69% to 79%. During the reporting period, the significant fluctuations in exchange rates due to complex and changing economic situations and geopolitical risks led to an increase in raw material procurement costs and financial expenses for the company. The complex macroeconomic situation, closure and relocation of downstream customers have led to a decrease in demand, as well as an increased risk of payment defaults from downstream customers. Therefore, in order to enhance its risk resistance capability, the company controlled its product sales areas and reduced sales in high-profit but high-risk regions. The instability in the Red Sea region has significantly increased the company's freight costs. Overseas investment countries have imposed new requirements on human resources, leading to a significant increase in the company's labor costs.