Core Viewpoint - Donghua Engineering Technology participated in an online performance briefing to address investor inquiries regarding its financial results and business developments [1][2]. Group 1: Financial Performance - R&D expenses decreased by 29.25% year-on-year, but the company is expanding its lithium extraction from salt lakes and continues to invest in R&D in the new energy sector [3]. - The revenue from the environmental governance infrastructure sector declined by 36.93%, marking it as the only major business segment to experience a downturn. The company remains optimistic about this sector's long-term prospects and plans to allocate more resources to industrial environmental protection [4]. - The company reported a significant increase in overseas revenue by 2941.38%, with a 148.50% increase in revenue from the Northwest region. The chemical industry revenue grew by only 8.78% [7]. Group 2: Project Developments - The company is the EPC contractor and operator for the Zabuye Salt Lake lithium extraction project, working closely with the owner to meet production standards. The project faces challenges due to its high-altitude location and the need for tailored technical solutions [5]. - The company is focusing on green ammonia and green methanol projects, having formed a specialized team of over 50 people to advance research in this area and has signed multiple contracts [9]. Group 3: Cash Flow and Receivables - In the first half of 2025, the company saw an increase in revenue and net profit, but the net cash flow from operating activities dropped significantly by 78.46%. Accounts receivable rose to 1.152 billion yuan, a year-on-year increase of 27.84% [8]. Group 4: Shareholding and Competition - The lock-up period for shares subscribed by Shaanxi Coal and Chemical Industry Group will expire on December 5, 2025. The company has not received any information regarding share reductions from Shaanxi Coal, and both parties are engaged in strategic cooperation [6]. - Following the transfer of state-owned equity, the company's controlling shareholder has changed to China Chemical Engineering Corporation, and there is no competition with its controlling shareholder's business [10].

Group 1: Financial Performance - R&D expenses decreased by 29.25% year-on-year, raising concerns about the impact on technology reserves and project competitiveness in the new energy sector [2] - Revenue from the environmental governance infrastructure sector dropped by 36.93%, attributed to project acceptance delays and insufficient new orders [2] - Operating revenue and net profit (excluding non-recurring items) increased in the first half of 2025, but operating cash flow net amount fell sharply by 78.46% [4] Group 2: Project Developments - The Zabuye Salt Lake Phase II project has achieved lithium content standards in trial production, but stable mass production and revenue confirmation are still pending [3] - The company is actively promoting the Zabuye project, which faces challenges due to high-altitude construction and complex technical adjustments [3] Group 3: Strategic Initiatives - The company is focusing on "R&D + Engineering + Operations" in new energy, new materials, and new environmental protection, maintaining its status as a "National Technology Innovation Demonstration Enterprise" [2] - Significant growth in overseas revenue by 2941.38% and in the northwest region by 148.50%, primarily driven by major projects in Indonesia and various provinces [4] - The company is enhancing its green energy initiatives, including projects in hydrogen production and green methanol, with a dedicated team of over 50 technical personnel [5] Group 4: Shareholder Relations - The lock-up period for shares held by Shaanxi Coal and Chemical Group will expire on December 5, 2025, with no current information on potential share reductions [3] - The change in major shareholders does not create a competitive issue with Sinochem International, as the two companies operate in different sectors [5]