[Dongjiang Environmental Company Limited 2025 Semi-Annual Performance Forecast](index=1&type=section&id=Dongjiang%20Environmental%20Company%20Limited%202025%20Semi-Annual%20Performance%20Forecast) Dongjiang Environmental forecasts an expanded net loss for H1 2025, driven by industry adjustments and intense competition [I. Current Period Performance Forecast](index=1&type=section&id=I.%20Current%20Period%20Performance%20Forecast) Dongjiang Environmental expects a net loss attributable to shareholders and a non-recurring net loss for H1 2025, both increasing from the prior year [(I) Performance Forecast Period](index=1&type=section&id=(I)%20Performance%20Forecast%20Period) The performance forecast covers the period from January 1 to June 30, 2025 - The performance forecast period is from January 1, 2025, to June 30, 2025[3](index=3&type=chunk) [(II) Performance Forecast Details](index=1&type=section&id=(II)%20Performance%20Forecast%20Details) Key financial indicators for H1 2025 show an expected net loss and basic earnings per share loss, with increased loss amounts Key Financial Indicators for 2025 Semi-Annual Performance Forecast | Item | Current Period Forecast (10,000 CNY) | Prior Year Same Period (10,000 CNY) | | :--- | :--- | :--- | | Net Profit Attributable to Shareholders of Listed Company | Loss: 30,000 - 26,000 | Loss: 25,735.73 | | Net Profit After Deducting Non-Recurring Gains and Losses | Loss: 32,000 - 28,000 | Loss: 27,057.89 | | Basic Earnings Per Share (CNY/share) | Loss: 0.27 – 0.24 | Loss: 0.23 | - The estimated net profit is negative, with the **loss amount expanding** compared to the same period last year[3](index=3&type=chunk) [II. Communication with Accounting Firm](index=1&type=section&id=II.%20Communication%20with%20Accounting%20Firm) The company has pre-communicated with its accounting firm regarding the performance forecast, with no disagreements, though it remains unaudited - This performance forecast has not been pre-audited by the accounting firm[4](index=4&type=chunk) - The company has pre-communicated with the accounting firm, and there are no disagreements regarding this performance forecast[4](index=4&type=chunk) [III. Explanation of Performance Changes](index=1&type=section&id=III.%20Explanation%20of%20Performance%20Changes) Performance decline is attributed to intense competition and deep adjustments in the hazardous waste industry, pressuring core business profit margins - The hazardous waste industry remains in a deep adjustment phase, with the overall market continuing intense competition[5](index=5&type=chunk) - The profit margins for the company's core businesses, such as harmless treatment and resource utilization, continue to be under pressure, leading to gross profit margins remaining at a low level[5](index=5&type=chunk) - The company is accelerating its strategic layout in resource recycling and integrated environmental services, building a complete industrial chain for recycled resource utilization[5](index=5&type=chunk) - The company is striving to create original technology sources and flagship products, enhancing carbon reduction and pollution control capabilities through technological innovation, and accelerating enterprise transformation and upgrading[5](index=5&type=chunk)[6](index=6&type=chunk) [IV. Risk Warning](index=2&type=section&id=IV.%20Risk%20Warning) This performance forecast is a preliminary estimate; investors are advised to exercise caution as final financial data will be based on the official semi-annual report - This performance forecast is a preliminary estimate by the company's finance department[7](index=7&type=chunk) - The specific financial data will be subject to the company's disclosed 2025 semi-annual report[7](index=7&type=chunk) - Investors are kindly requested to make prudent decisions and be aware of investment risks[7](index=7&type=chunk)

Summary of Key Points Core Viewpoint - As of July 3, a total of 120 stocks reached their 52-week highs, indicating a strong market performance with notable leaders in the list [1]. Group 1: Top Performers - The top three stocks with the highest increase rates are: - 富誉控股 (Fuyou Holdings) at 90.76%, closing at 0.435 with a peak of 0.475 [1] - 信义能源 (Xinyi Energy) at 65.00%, closing at 1.200 with a peak of 1.980 [1] - 中国三三传媒 (China San San Media) at 42.86%, closing at 1.710 with a peak of 1.900 [1] Group 2: Additional Notable Stocks - Other notable stocks include: - ITE HOLDINGS at 34.21% increase, closing at 0.047 with a peak of 0.051 [1] - 星凯控股 (Xingkai Holdings) at 30.00%, closing at 0.480 with a peak of 0.650 [1] - 北京北辰实业股份 (Beijing Beichen Industrial) at 26.47%, closing at 0.940 with a peak of 1.290 [1] Group 3: Overall Market Trends - The overall trend shows a significant number of stocks achieving new highs, reflecting positive investor sentiment and market conditions [1].

Group 1 - The core viewpoint of the article highlights a significant rise in Hong Kong's environmental stocks, with Dongjiang Environmental (002672) experiencing an increase of over 30% and Shunfeng Clean Energy rising by more than 10% [1]

Group 1 - The legal opinion letter confirms that the 2024 annual general meeting of Dongjiang Environmental Company was convened and held in accordance with relevant laws and regulations [2][6][12] - The meeting was called by the board of directors based on a resolution from the sixth meeting of the eighth board, with proper notice published on the Hong Kong Stock Exchange and Shenzhen Stock Exchange [2][3] - The meeting took place on June 25, 2025, at the company's headquarters in Shenzhen, utilizing both on-site and online voting methods [3][4] Group 2 - A total of 162 shareholders attended the meeting, representing 453,149,574 shares, which is approximately 41% of the total shares [6][7] - The voting results showed that all proposed resolutions were approved by a majority of the votes cast, with significant support for each resolution [9][10][12] - The legal opinion concludes that the voting procedures and results comply with the Company Law, Securities Law, and the company's articles of association, confirming the legality and validity of the resolutions passed [6][12][13]

Background Information - Dongjiang Environmental Protection Co., Ltd. provided a guarantee for its subsidiary, Mianyang Dongjiang Environmental Technology Co., Ltd., to secure a loan of up to RMB 260 million for the construction and operation of an industrial solid waste disposal center [1][2] - The loan agreement with Postal Savings Bank of China was signed for an amount of RMB 246 million with a term of 9 years [1][2] Guarantee and Counter-Guarantee Situation - Mianyang Dongjiang has faced operational difficulties, leading to an inability to repay the loan, resulting in Dongjiang Environmental fulfilling its guarantee obligations by compensating RMB 1.6118 million in interest payments [2][3] - The company holds a 51% stake in Mianyang Dongjiang, while the other shareholders, Diwos and Xinkeyuan, hold 29.5% and 19.5% respectively [3] Impact on the Company and Future Arrangements - The company has formed a receivable debt from Mianyang Dongjiang due to the guarantee compensation and plans to enhance Mianyang Dongjiang's market operations and reduce costs to improve performance [3][4] - The company has sent a demand letter to the counter-guarantee parties, Diwos and Xinkeyuan, to fulfill their obligations and reserves the right to initiate legal action if necessary [3][4]

Core Viewpoint - The document outlines the comprehensive risk management regulations of Dongjiang Environmental Protection Co., Ltd., aiming to establish a robust risk management system to enhance risk prevention capabilities and promote high-quality development [1][2]. Summary by Sections General Principles - The regulations aim to standardize and strengthen the comprehensive risk management system of the company, ensuring risk control aligns with business development goals [1]. - Risks are categorized into three levels: general risk, significant risk, and major risk [1][2]. - Comprehensive risk management is defined as a process and method to achieve overall risk management objectives through various management activities [2]. Risk Management Objectives - The company aims to control risks within acceptable limits, ensure reliable communication of information, comply with laws and regulations, and establish crisis management plans for major risks [2][3]. Principles of Risk Management - The principles include comprehensive coverage, focus on key areas, dynamic prevention, and cost-effectiveness [3][4]. Organizational Structure - The company establishes a three-line defense system for risk management, involving various departments and a dedicated risk management department [5][6]. - The board of directors is responsible for overseeing the effectiveness of risk management and approving related policies [6][7]. Responsibilities and Culture - The chairman is the primary responsible person for risk management, and all departments are required to integrate risk management into their daily operations [7][8]. - The company emphasizes cultivating a risk management culture and training employees on risk management practices [4][8]. Risk Management Mechanism - The company should establish a comprehensive risk prevention mechanism that integrates risk management with internal control and compliance management [12][13]. - A risk assessment mechanism should be in place for major investment projects, ensuring thorough evaluation and reporting [15][16]. Risk Identification and Assessment - Departments are required to continuously collect and analyze risk information, leading to the establishment of a risk management ledger [24][25]. - Risk assessment involves identifying, analyzing, and evaluating risks based on their likelihood and potential impact [26][27]. Monitoring and Reporting - A risk monitoring system should be established to track key risk indicators and report any anomalies promptly [30][31]. - Departments must develop emergency response plans based on risk monitoring results [32]. Risk Management Strategies - The company should formulate risk management strategies that align with its development goals, including risk acceptance, avoidance, transfer, and control [33][34]. Implementation and Improvement - Risk response plans must be developed and implemented for various risks, ensuring compliance with internal controls [36][37]. - Regular audits and evaluations of the risk management system are necessary to identify deficiencies and improve processes [40][41]. Information Technology and Accountability - The company plans to establish a risk management information platform to enhance monitoring efficiency [43]. - Risk management performance will be included in the company's performance evaluation system, with accountability measures for failures in risk management [44][45].

Group 1 - The company held its sixth meeting of the eighth supervisory board on May 23, 2025, in Shenzhen, Guangdong Province, with all three supervisors present [1][2] - The supervisory board unanimously approved the proposal to reappoint Da Xin Accounting Firm as the financial and internal control auditing institution for the year 2025, with a term lasting until the conclusion of the 2025 annual general meeting [1][2] - The supervisory board confirmed that Da Xin Accounting Firm possesses the necessary qualifications and experience to provide auditing services for listed companies, ensuring independence and professional competence [1]

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the fiscal year, representing a 15% year-over-year growth[7]. - Total revenue for 2024 was RMB 3,486.66 million, a decrease from RMB 4,022.47 million in 2023, representing a decline of approximately 13.3%[17]. - Net loss attributable to the parent company for 2024 was RMB 804.19 million, compared to a loss of RMB 750.47 million in 2023, indicating a worsening financial performance[17]. - The company reported a net profit margin of 12%, reflecting improved operational efficiency[7]. - The net profit attributable to shareholders was approximately RMB -804 million, a decline of 7.16% from RMB -750 million in 2023[42]. - Operating profit loss was RMB 841 million, a year-on-year reduction in loss of approximately RMB 46.27 million[33]. - The company achieved a significant increase in operating cash flow, reaching approximately RMB 125 million, a 120-fold increase year-on-year[25]. - The comprehensive gross profit margin improved to 5.59%, an increase of 1.26 percentage points from 4.33% in 2023[42]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[7]. - New product launches included an innovative waste management solution, expected to contribute an additional 200 million RMB in revenue[7]. - The company plans to focus on cost reduction and efficiency improvement, implementing 23 projects that exceeded the cost reduction target by 123%[26]. - In 2025, the company aims to enhance its product offerings by extending into high-value-added products such as copper salts and tin salts, while promoting resource recycling[29]. - The company plans to focus on upgrading its industrial chain and expanding into high-quality development areas, including resource recycling and environmental services[60]. Governance and Management Changes - The board of directors underwent significant changes, with three new appointments aimed at strengthening governance[6]. - The management team has undergone recent changes, with new appointments aimed at strengthening leadership and operational capabilities[70][71][73][74]. - The company is focused on strengthening its governance structure through the appointment of experienced professionals in various fields[76][79][80]. - The recent appointments reflect the company's commitment to enhancing its operational efficiency and risk management capabilities[76][81]. Research and Development - Research and development expenses increased by 30%, totaling 150 million RMB, to support new technology initiatives[7]. - The company has accumulated 632 patents, including one authorized in the United States, and has established two provincial-level R&D platforms[26]. - The company established 21 research and development platforms and deepened cooperation with renowned universities to support technological innovation[37]. Environmental and Social Responsibility - The company emphasized its commitment to ESG practices, with a goal to reduce carbon emissions by 40% by 2030[7]. - The company has issued a separate environmental, social, and governance report on the same day as the annual report[182]. - The company has committed RMB 355,000 to support poverty alleviation initiatives, contributing to the "High-Quality Development Project" in various regions[187]. Legal and Compliance Issues - The company is involved in a lawsuit where part of the funds from a fundraising account, amounting to RMB 96,317,554.88, has been frozen due to a contract dispute[100]. - The lawsuit includes a claim for RMB 88,750,905.60 for various environmental pollution-related expenses, plus interest at an annual rate of 4.35%[104]. - The company has maintained compliance with relevant laws and regulations, ensuring no significant impact on its operations[184]. Financial Management and Shareholder Relations - The company will not propose any final dividend for the year ending December 31, 2024, due to recorded losses and significant funding needs for ongoing operations and business expansion[28]. - The company’s profit distribution policy states that cash dividends should not be less than 20% of the distributable profits for the year, and cumulative distributions over three years should not be less than 30% of the average distributable profits[94]. - The company has calculated distributable reserves for dividends at approximately RMB 240,659,288 during the reporting period[129]. - The company has confirmed the independence of all independent non-executive directors as per the listing rules[133]. Operational Efficiency and Cost Management - The company aims to achieve annual cost reduction targets by implementing lean management and enhancing cost control systems[64]. - The management emphasizes continuous improvement in production and operational efficiency through strong incentives and accountability measures[66]. - The company is focused on optimizing asset structure by disposing of unprofitable and inefficient enterprises to concentrate resources on high-efficiency businesses[64]. Employee and Director Compensation - The compensation for executive directors is composed of five parts: basic annual salary, performance annual salary, tenure incentives, incremental rewards, and special rewards, with performance annual salary determined based on the company's annual comprehensive assessment[143]. - The company emphasizes a performance-oriented compensation structure, linking salary increases to performance improvements and decreases to performance declines[148]. - The company provides ongoing training, compensation packages, and a range of additional benefits, including retirement benefits, housing allowances, and medical insurance[142]. Financial Instruments and Agreements - The company successfully issued medium-term notes raising RMB 500 million at an interest rate of 2.77%, reducing the overall financing cost to 3.3%[35]. - The company has entered into a new financial services agreement with Guangsheng Finance, which will provide deposit, settlement, and credit services for a period of three years, pending approval from independent shareholders[107]. - The company has guaranteed a loan of RMB 200 million for its subsidiary, Tangshan Wandes Environmental Technology Co., Ltd., and has compensated RMB 111.0977 million to HSBC Bank for this loan[112].

Financial Performance - The company's operating revenue for Q1 2025 was RMB 695,899,414.83, a decrease of 11.92% compared to RMB 790,088,128.25 in the same period last year[6]. - The net loss attributable to shareholders was RMB -146,335,432.14, showing an improvement of 6.12% from RMB -155,869,080.45 year-on-year[6]. - The basic and diluted earnings per share were both RMB -0.13, reflecting a 7.14% improvement from RMB -0.14 in the same period last year[6]. - Total operating revenue for the current period was RMB 695.90 million, a decrease of 11.93% from RMB 790.09 million in the previous period[23]. - Net loss for the current period was RMB 172.27 million, compared to a net loss of RMB 192.94 million in the previous period, showing an improvement of 10.00%[24]. - The company reported an operating profit of RMB -172.90 million, an improvement from RMB -191.16 million in the previous period[24]. - Other comprehensive income after tax for the current period was RMB 6,429.28, compared to RMB -781.25 in the previous period[25]. Cash Flow - The net cash flow from operating activities increased significantly to RMB 1,180,864.64, a 100.98% improvement from RMB -119,987,293.03 in the previous year[13]. - Operating cash flow generated a net amount of ¥1,180,864.64, a significant improvement from a net outflow of ¥119,987,293.03 in the previous period[27]. - Cash inflow from investment activities totaled ¥641,935,658.02, compared to ¥240,974,203.29 in the prior period, indicating a strong increase[28]. - The net cash flow from financing activities was ¥299,786,912.52, up from ¥78,275,984.76 in the previous period, reflecting improved financing conditions[28]. - Cash received from borrowings amounted to ¥1,343,268,074.48, compared to ¥605,790,064.34 in the prior period, highlighting increased borrowing activity[28]. - The company paid ¥1,003,586,033.08 in debt repayments, which is significantly higher than ¥473,555,589.93 in the previous period, reflecting a focus on debt reduction[28]. - The company received tax refunds of ¥2,510,072.39, an increase from ¥1,621,890.52 in the previous period, indicating improved tax recovery efforts[27]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 11,278,546,915.57, showing no significant change from RMB 11,278,479,415.46 at the end of the previous year[6]. - The company's equity attributable to shareholders decreased by 4.03% to RMB 3,454,826,025.41 from RMB 3,599,850,228.42[6]. - Total current assets at the end of the period amount to RMB 3,698,493,793.28, an increase from RMB 3,563,956,903.50 at the beginning of the year[19]. - Total non-current assets amount to RMB 7,580,053,122.29, down from RMB 7,714,522,511.96 at the beginning of the year[20]. - Total liabilities amount to RMB 3,513,772,246.21, a decrease from RMB 3,877,229,219.04 at the beginning of the year[20]. - Total liabilities increased to RMB 7.30 billion, up from RMB 7.13 billion in the previous period, reflecting a growth of 2.40%[21]. - Total equity decreased to RMB 3.98 billion, down from RMB 4.15 billion in the previous period, a decline of 4.12%[21]. Investment Income - The company reported a significant increase in investment income, rising by 117.91% to RMB 1,211,830.53 from a loss of RMB -6,767,501.77 in the previous year[12]. - The company recorded investment income of RMB 1.21 million, a significant recovery from a loss of RMB 6.77 million in the previous period[23]. Shareholder Information - Total number of common shareholders at the end of the reporting period is 31,116[15]. - Guangdong Guangsheng Holdings Group Co., Ltd. holds 24.09% of shares, totaling 266,279,028 shares[15]. - HKSCC NOMINEES LIMITED holds 18.10% of shares, totaling 200,097,387 shares[15].

一、主要会计数据和财务指标 | 报告期指标 | 2025年一季报 | 2024年一季报 | 本年比上年增减(%) | 2023年一季报 | | --- | --- | --- | --- | --- | | 基本每股收益（元） | -0.1300 | -0.1400 | 7.14 | -0.1300 | | 每股净资产（元） | 3.13 | 3.93 | -20.36 | 4.48 | | 每股公积金(元) | 1.19 | 1.28 | -7.03 | 0.51 | | 每股未分配利润(元) | 0.67 | 1.39 | -51.8 | 2.64 | | 每股经营现金流(元) | - | - | - | - | | 营业收入(亿元) | 6.96 | 7.9 | -11.9 | 8.29 | | 净利润(亿元) | -1.46 | -1.56 | 6.41 | -1.18 | | 净资产收益率(%) | -4.15 | -3.53 | -17.56 | -2.94 | 数据四舍五入，查看更多财务数据>> 二、前10名无限售条件股东持股情况 前十大流通股东累计持有： 72734.04万股，累计占流通股比： ...