Kangda Environmental (ASX: 06136) has released an announcement indicating that the group anticipates a significant increase in profit attributable to equity shareholders for the six-month period ending June 30, 2026.

The profit is expected to grow by approximately 80% compared to the RMB 103.4 million recorded for the corresponding period ending June 30, 2025.

The improvement in the group's performance is primarily attributed to several key factors.

These include a reduction in operating costs due to implemented energy-saving measures and decreased chemical consumption.

Additionally, financial costs have decreased as a result of lower interest rates and a reduction in the overall debt balance.

Further contributing factors are reductions in other expenses and income tax expenditures.