Chiho Environmental Group Limited on 31 July 2026 disclosed that receivers have completed the disposal of its wholly-owned Scholz Group subsidiaries to France-based Derichebourg S.A. at an enterprise value of €480.00 million.

The Scholz Group is central to Chiho Environmental’s operations. For the six months ended 30 June 2024, Scholz’s European activities generated approximately HK$8.10 billion in revenue and HK$190.90 million in segment profit, representing about 90% of the Group’s total revenue. Over the same period, the Group’s Asian operations contributed HK$867.10 million in revenue and HK$5.40 million in profit, while North American contributions were immaterial.

Management cautions that, although the transaction may deliver a one-off gain, the loss of Scholz will cause “a substantial decline” in the Group’s future revenue and operating profit because Scholz’s results will no longer be consolidated.

The Board stated that it has yet to receive detailed information about the transaction from the receivers and is seeking advice on possible next steps. Further announcements will be issued in accordance with Hong Kong Listing Rules.

Trading in Chiho Environmental’s shares has been suspended since 1 April 2025 and will remain halted pending fulfillment of resumption guidance.