Earnings release
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* For identification purposes only Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. ʮ̡ Dynagreen Environmental Protection Group Co., Ltd.* (a joint stock limited liability company incorporated in the People’s Republic of China) (Stock Code: 1330) ANNOUNCEMENT OF INTERIM RESULTS FOR THE YEAR 2026 The board of directors of Dynagreen Environmental Protection Group Co., Ltd.* (the “Company ”) is pleased to announce the unaudited interim results of the Company and its subsidiaries for the six months ended 30 June 2026. This announcement, containing the full text of the 2026 Interim Report of the Company, complies with the requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited in relation to the information to accompany the preliminary announcement of interim results. The Company’s 2026 Interim Report will be available for viewing on the websites of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and Shanghai Stock Exchange (www.sse.com.cn) and of the Company (www.dynagreen.com.cn) on or before 30 September 2026.
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IMPORTANT NOTICE I. The board of directors (the “ Board”), the directors (the “ Directors”), and senior management of the Company hereby warrant the truthfulness, accuracy and completeness of the contents of the interim report, guarantee that there are no false representations, misleading statements or material omissions contained in this interim report, and are jointly and severally responsible for the liabilities of the Company. II. Director who was not present at the Board meeting Title of absent Director Name of absent Director Reason of absence Name of proxy Independent Director Ouyang Jiejiao Business engagements Zheng Zhiming III. This interim report is unaudited. IV. Cheng Suning, an officer of the Company; Yi Zhiyong, the Chief Financial Officer; and Zhao Linbin, the Chief Accountant, declare that they warrant the truthfulness, accuracy and completeness of the financial statements in the interim report. V. The audit and risk management committee (the “ Audit and Risk Management Committee ”) of the Board of the Company has reviewed this report and has also discussed with the Company’s management on the accounting policies and practices adopted by the Company as well as internal control and other matters. VI. Proposal of profit distribution or capitalisation of capital reserve during the Reporting Period approved by the Board. It is proposed to distribute a cash dividend of RMB0.11 (before tax) for every share to all shareholders based on the aggregate share capital on the share-based equity registration date for the first half of 2026. The Company did not convert capital reserve into share capital and did not issue bonus shares for the profit distribution. This proposal of profit distribution needs to be submitted to the Company’s general meeting for consideration. VII. Risk statement relating to forward-looking statements ✓ Applicable ½ Not applicable Forward-looking statements such as future plans and development strategies described in this report do not constitute an actual commitment of the Company to investors. Investors should be aware of the investment risks. VIII. Whether there was any appropriation of the Company’s funds for purposes other than operations by the controlling shareholder and other related parties No IX. Whether there was any provision of guarantee to external parties in violation of the stipulated decision-making procedures? No X. Whether there were more than half of the directors who cannot guarantee the authenticity, accuracy and completeness of the interim report disclosed by the Company No XI. Major risk alerts Certain risks that may exist have been described in this report in details. Please refer to “potential risks” as set out in part V “other disclosures” in “III. Management Discussion and Analysis”. XII. Others ✓ Applicable ½ Not applicable The 2026 interim financial report of the Company was prepared in accordance with the China Accounting Standards for Business Enterprises promulgated by the Ministry of Finance of the PRC and the relevant provisions (the “PRC Accounting Standards ”), and is unaudited. The functional currency of this interim report is Renminbi (RMB). The contents of this interim report are in compliance with all the requirements in relation to information to be disclosed in interim reports under the Standards for the Contents and Formats of Information Disclosure by Companies Offering Securities to the Public No. 3 – Contents and Formats of Interim Reports (Amended in 2025) (ୋ 3–ό (2025ࠈࡌ)), the Preparation Convention of Information Disclosure by Companies Offering Securities to the Public No.15 – General Provisions on Financial Reporting (Amended in 2023) (ୋ15–֛ 2023ࠈࡌ)), the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange (Amended in 2026), the Guidelines No. 2 on Self-Regulatory and Supervision for Listed Companies on the Shanghai Stock Exchange – Business Handling (Amended in April 2026)ୋ2Ñุਕ፬ଣ(2026 ϋ4ࠈࡌand the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. In addition, this interim report has been simultaneously published in Mainland China and Hong Kong. This report has been prepared in Chinese and English. Should there be any discrepancies between the Chinese and English versions, the Chinese version shall prevail.
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CONTENTS I. Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 II. Company Profile and Key Financial Indicators . . . . . . . . . 4 III. Management Discussion and Analysis . . . . . . . . . . . . . . . 8 IV. Corporate Governance, Environment and Society. . . . . . . 34 V. Significant Events. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 VI. Changes in Shares and Particulars of Shareholders . . . . . 58 VII. Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 VIII. Financial Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 20262 I. DEFINITIONS In this report, the following expressions shall, unless the context otherwise requires, have the following meanings: Common words The Company or Dynagreen Dynagreen Environmental Protection Group Co., Ltd. The Group Dynagreen Environmental Protection Group Co., Ltd. and its subsidiaries BSAM Beijing State-owned Assets Management Co., Ltd. Hong Kong Dynagreen Dynagreen Investment Holding Company Limited (ʮ̡) Changzhou Company Changzhou Dynagreen Environmental and Thermoelectric Co., Ltd. ( ੬ψၠЍਗɢᐑ ʮ̡) Haining Company Haining Dynagreen Renewable Energy Co., Ltd. (ʮ̡) Taizhou Company Taizhou Dynagreen Renewable Energy Co., Ltd. (ʮ̡) Wuhan Company Wuhan Dynagreen Renewable Energy Co., Ltd. (ʮ̡) Pingyang Company Pingyang Dynagreen Renewable Energy Co., Ltd. (ʮ̡) Yongjia Company Yongjia Dynagreen Renewable Energy Co., Ltd. (ʮ̡) Rushan Company Rushan Dynagreen Renewable Energy Co., Ltd. (ʮ̡) Anshun Company Anshun Dynagreen Renewable Energy Co., Ltd. (ʮ̡) Huizhou Company Huizhou Dynagreen Environment Co., Ltd. (ʮ̡) Jizhou Company Tianjin Dynagreen Renewable Energy Co., Ltd. (ʮ̡) Jurong Company Jurong Dynagreen Renewable Energy Co., Ltd. (ʮ̡) Ninghe Company Tianjin Dynagreen Environmental Energy Co., Ltd. (ʮ̡) Bengbu Company Bengbu Dynagreen Renewable Energy Co., Ltd. (ʮ̡) Tongzhou Company Beijing Dynagreen Environment Co., Ltd. (ʮ̡) Miyun Company Beijing Dynagreen Renewable Energy Co., Ltd. (ʮ̡) Shantou Company Shantou Dynagreen Renewable Energy Co., Ltd. (ʮ̡) Zhangqiu Company Zhangqiu Dynagreen Renewable Energy Co., Ltd. (ʮ̡) Bobai Company Bobai Dynagreen Renewable Energy Co., Ltd. (ʮ̡) Hong’an Company Hong’an Dynagreen Renewable Energy Co., Ltd. (ʮ̡) Yichun Company Yichun Dynagreen Renewable Energy Co., Ltd. (ʮ̡) Fengcheng Company Fengcheng Dynagreen Environmental Protection Co., Ltd. (ʮ̡) Huizhou Phase II Company Huizhou Dynagreen Renewable Energy Co., Ltd. (ʮ̡) Yongjia Phase II Company Wenzhou Dynagreen Environmental Energy Co., Ltd. (ʮ̡) Pingyao Company Pingyao Dynagreen Renewable Energy Co., Ltd. ( ʮ̡) Shenzhen Jingxiu Shenzhen Jingxiu Environmental Engineering Technology Limited Company ( ଉέ౻ ʮ̡) (formerly known as Zhejiang Dongyang Fuli Construction Limited Company (ʮ̡)) Dengfeng Company Dengfeng Dynagreen Renewable Energy Co., Ltd. (ʮ̡) Haining Expansion Company Haining Dynagreen Haiyun Environmental Protection Energy Co., Ltd. ( ऎྐྵၠਗऎථ ʮ̡) Shishou Company Shishou Dynagreen Renewable Energy Co., Ltd. (ʮ̡) Guangdong Promising Company Guangdong Promising Environmental Protection Company Limited (ঐᐑ ʮ̡) Guangyuan Company Guangyuan Boneng Renewable Energy Co., Ltd. (ʮ̡) Jiamusi Company Jiamusi Bohai Environmental Protection and Electricity Company Limited ( Գ˝௹ ʮ̡)
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 3 I. DEFINITIONS (CONTINUED) Zhaoqing Company Zhaoqing Boneng Renewable Energy Power Generation Co., Ltd. (ၴᅅ̹௹ঐΎ͛ঐ ʮ̡) Shulan Company Shulan Boneng Environmental Protection Company Limited (ʮ ̡) Zhangye Company Zhangye Boneng Environmental Protection Company Limited (ʮ̡) Dongguan Company Dongguan Changneng Clean and Greening Service Co., Ltd. (ਕ ʮ̡) Jinsha Company Guizhou Jinsha Green Energy Co., Ltd. (ʮ̡) Pingyang Phase II Company Pingyang Dynagreen Environmental Energy Co., Ltd. (ʮ̡) Jingxi Company Baise Dynagreen Environmental Protection Co., Ltd. (ʮ̡) Enshi Company Enshi Green Power Renewable Energy Co., Ltd. (ʮ̡) Huludao Hazardous Waste Company Lvyi (Huludao) Environmental Services Limited (ʮ̡) Huludao Power Generation Company Huludao Dynagreen Environment Co., Ltd. (ʮ̡) Huizhou Three-in-One Company Huizhou Dynagreen Environmental Services Co., Ltd. (ʮ ̡) Shantou Sludge Company Shantou Dynagreen Environmental Services Co., Ltd. (ʮ ̡) Shantou Kitchen Waste Company Shantou Dynagreen Environmental Protection Co., Ltd. (ʮ ̡) Zhangqiu Phase II Company Jinan Dynagreen Environmental Co., Ltd.(ʮ̡) Shuozhou Company Shuozhou Dynagreen Nanshan Environmental Energy Co., Ltd. (ʆᐑྤঐ ʮ̡) Laizhou Company Laizhou Haikang Environmental Protection Energy Co., Ltd.(ʮ ̡) Xinmi Company Xinmi General New Energy Co., Ltd. (ʮ̡) The Reporting Period 1 January 2026 to 30 June 2026 The end of the Reporting Period 30 June 2026 RMB or RMB’0,000 or RMB’00,000,000 Renminbi or Renminbi ten thousand or Renminbi hundred million PRC or Mainland China the People’s Republic of China, for the purposes of this report, excluding Hong Kong, the Macau Special Administrative Region and Taiwan Province Company Law the Company Law of the PRC SFO the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) CSRC the China Securities Regulatory Commission Stock Exchange The Stock Exchange of Hong Kong Limited Stock Exchange Listing Rules The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited SSE The Shanghai Stock Exchange SSE Listing Rules The Rules Governing the Listing of Stocks on the Shanghai Stock Exchange PRC Accounting Standards the China Accounting Standards for Business Enterprises formulated and promulgated by the Ministry of Finance of the PRC BOT Build-Operate-Transfer Auditor the accounting firm which provides audit services National Subsidies national renewable energy subsidies, the main source of funding of which is the national renewable energy tariff surcharge, which is paid by the power grid to eligible renewable energy power generation enterprises Green Certificate renewable energy green power certificate, 1 green certificate unit corresponds to 1,000kWh of renewable energy power
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 20264 II. COMPANY PROFILE AND KEY FINANCIAL INDICATORS I. CORPORATE PROFILE Company name in Chineseʮ̡ Short company name in Chinese ၠЍਗɢ Company name in English Dynagreen Environmental Protection Group Co.,Ltd. Short Company name in English Dynagreen Legal representative of the Company Cheng Suning II. CONTACT PERSONS AND CONTACT METHODS Secretary to the Board/ Joint company secretary Joint company secretary Securities Affairs Representative Name Zhu Shuguang Yim Lai Kiu Li Jian Correspondence address 2nd Floor, Jiuzhou Electronic Building, Keji South 12th Street, Nanshan District, Shenzhen Room 1922, 19/F Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong 2nd Floor, Jiuzhou Electronic Building, Keji South 12th Street, Nanshan District, Shenzhen Telephone 0755–36807688–8009 – 0755–36807688–8009 Facsimile 0755–33631220 – 0755–33631220 E-mail address ir@dynagreen.com.cn – ir@dynagreen.com.cn III. CHANGE IN BASIC INFORMATION Registered office of the Company 2nd Floor, Northeastern Wing, Jiuzhou Electronic Building, Keji South 12th Street, Nanshan District, Shenzhen Principal place of business 2nd Floor, Jiuzhou Electronic Building, Keji South 12th Street, Nanshan District, Shenzhen Postal code of principal place of business 518057 Principal place of business in Hong Kong 1st Floor, Xiu Ping Commercial Building, 104 Jervois Street, Hong Kong Company’s website www.dynagreen.com.cn E-mail address ir@dynagreen.com.cn Index to changes during the Reporting Period No change during the Reporting Period
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 5 II. COMPANY PROFILE AND KEY FINANCIAL INDICATORS (CONTINUED) IV. CHANGES IN INFORMATION DISCLOSURE AND PLACE FOR INSPECTION Designated newspapers for information disclosure Securities Times, Shanghai Securities News Website for publishing the interim report SSE: www.sse.com.cn Stock Exchange: www.hkexnews.hk Place for inspection of the interim report 2nd Floor, Jiuzhou Electronic Building, Keji South 12th Street, Nanshan District, Shenzhen Index to changes during the Reporting Period No change during the Reporting Period V. BASIC INFORMATION OF THE COMPANY’S SHARES Class of shares Stock exchanges on which the shares are listed Stock abbreviation Stock code Stock abbreviation before the change A Shares Shanghai Stock Exchange ၠЍਗɢ 601330 – H Shares Hong Kong Stock Exchange DYNAGREEN ENV 01330 – VI. OTHER RELEVANT INFORMATION ✓ Applicable ½Not applicable 1. Auditors engaged by the Company BDO China Shu Lun Pan Certified Public Accountants LLP 2. Legal advisers engaged by the Company As to Hong Kong law: Jingtian & Gongcheng LLP As to the PRC law: Beijing Kangda Law Firm 3. Share registrar of the Company Share registrar of A shares of the Company: China Securities Depository and Clearing Corporation Limited Shanghai Branch (Address: 188 Yanggao South Road, Pudong New District, Shanghai, China) Share registrar of H shares of the Company: Tricor Investor Services Limited (Address: 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong)
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 20266 II. COMPANY PROFILE AND KEY FINANCIAL INDICATORS (CONTINUED) VII. MAJOR ACCOUNTING DATA AND FINANCIAL INDICATORS (I) Major accounting data Unit: RMB Major accounting data The Reporting Period (January to June) Corresponding period last year Increase/decrease for the Reporting Period over the corresponding period last year (%) Revenue 1,876,654,110.71 1,683,873,882.60 11.45 Total profit 640,110,008.46 496,328,137.26 28.97 Net profit attributable to shareholders of the Company 464,586,896.22 377,232,320.56 23.16 Net profit excluding non-recurring gain and loss attributable to the shareholders of the Company 463,209,687.78 375,787,727.09 23.26 Net cash flows from operating activities 705,401,092.41 632,244,063.03 11.57 As at the end of the Reporting Period As at the end of last year Increase/decrease for the end of the Reporting Period over the end of last year (%) Net assets attributable to shareholders of the Company 8,451,940,518.29 8,266,083,685.76 2.25 Total assets 22,295,557,061.73 21,926,733,761.94 1.68 (II) Key financial indicators Key financial indicators The Reporting Period (January to June) Corresponding period last year Increase/decrease for the Reporting Period over the corresponding period last year (%) Basic earnings per share (RMB/share) 0.33 0.27 22.22 Diluted earnings per share (RMB/share) 0.30 0.26 15.38 Basic earnings per share excluding non-recurring gain and loss (RMB/share) 0.33 0.27 22.22 Weighted average return on net assets (%) 5.46 4.57 Increased by 0.89 percentage point Weighted average return on net assets excluding non-recurring gain and loss (%) 5.44 4.56 Increased by 0.88 percentage point Explanations on the major accounting data and financial indicators of the Company ½Applicable ✓ Not applicable
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 7 II. COMPANY PROFILE AND KEY FINANCIAL INDICATORS (CONTINUED) VIII. ACCOUNTING DATA DIFFERENCES BETWEEN DOMESTIC AND OVERSEAS ACCOUNTING STANDARDS ½Applicable ✓ Not applicable IX. NON-RECURRING GAINS AND LOSSES ITEMS AND AMOUNTS ✓ Applicable ½ Not applicable Unit: RMB Non-recurring gains and losses items Amount Note (if applicable) Gains and losses from disposal of non-current assets, including the written-off portion of the asset impairment provision -40,794.09 Government grants recognised through profit or loss, except for government grants which are closely related to the Company’s normal operation, comply with the provisions of national policies, are enjoyed in accordance with the defined standards, and have a continuous impact on the profit or loss of the Company 714,723.98 Gain from the difference between the cost of investment on the subsidiaries and the shared fair value of identifiable net assets of the investee 111,988.35 Other non-operating income and expenses besides items above 361,714.90 Other gains and losses within the definition of non-recurring gains and losses 348,858.89 Less: Effects on income tax -165,965.07 Effects on minority interests (after tax) 46,681.48 Total 1,377,208.44 Explanations for the Company’s non-recurring gain or loss item with a significant amount as not illustrated in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No. 1 – Non-recurring Gains or Losses, and the extraordinary gain or loss item as illustrated in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No. 1 – Non- recurring Gains or Losses which has been defined as its recurring gain or loss items. ½Applicable ✓ Not applicable X. COMPANIES WITH EQUITY INCENTIVE PLAN OR EMPLOYEE SHAREHOLDING PLAN MAY CHOOSE TO DISCLOSE NET PROFIT AFTER DEDUCTING THE IMPACT OF SHARE-BASED PAYMENTS ½Applicable ✓ Not applicable XI. OTHERS ½Applicable ✓ Not applicable
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 20268 III. MANAGEMENT DISCUSSION AND ANALYSIS I. INDUSTRY AND PRINCIPAL OPERATIONS INFORMATION OF THE COMPANY DURING THE REPORTING PERIOD 1. Principal operations of the Company As a pioneer in the municipal waste-to-energy industry in the PRC, the Company, guided by its mission of “Creating a Better Living Environment”, has long been engaged in the waste-to-energy sector since its establishment and its businesses cover investment, construction, operation, maintenance and technical consulting services of municipal waste-to-energy plants. As at 30 June 2026, in respect of the municipal waste-to-energy sector, the Company had 38 projects under operation. The waste treatment capacity of the projects under operation reached 41,100 tons/day and the installed capacity was 877MW, placing the Company in a leading position in the industry in terms of the number of projects and waste treatment capacity. The Company’s projects are spread across 20 provincial-level administrative regions nationwide, forming a market layout based in the Yangtze River Delta, Pearl River Delta and Bohai Rim and spanning across the country. 2. Major business model The Company mainly adopts the BOT model to operate its municipal waste-to-energy business as follows: the government department responsible for waste disposal selects a service provider to construct and operate the waste-to-energy plant under the BOT model through tenders or other means. After the Company is awarded the project, the Company enters into a concession agreement with the relevant local government department and establishes a project company to conduct business. According to the concession agreement entered into with the relevant local government department, the project company is responsible for raising funds to construct and operate the entire waste-to-energy plant. The concession period is usually from 25 to 30 years. The relevant government department pays the project company a waste treatment fee at the agreed price, and the project company sells the electricity, steam or hot water generated during the waste incineration process. Upon the expiration of the concession, the Company has to transfer the relevant infrastructure to the concession grantor. The upstream industries of the Company include construction enterprises, installation companies, waste treatment and power generation equipment (such as incinerators, smog and gas treatment systems, turbine generators and waste heat boilers) suppliers, and the Company selects suppliers through tenders. The downstream industries mainly include local government departments, power grid companies and enterprises with steam supply demands. The Company provides waste incineration treatment services to local governments to receive waste treatment fees, provides electricity to power grid companies to receive electricity tariffs, and sell steam to enterprises to receive revenue from steam supply.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 9 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) 3. Processes and technologies The core equipment of the waste incineration power generation system is incinerator. The Company mainly uses the self-developed three-drive expeller grate waste incinerator. The incinerator has a unique integrated three-stage design. Its drying and burning configuration are equipped with independent driving mechanism. It can flexibly adjust the running speed of each section according to the combustion condition, which can better control the distribution of the fire bed and achieve lower clinker ignition loss. The specific process of waste incineration power plant is illustrated in the following diagram: Low temperature flue gas + CEMS flue monitoring of flue gas High temperature flue gas Fermented waste Waste storage tank Incinerator Flue gas purification system Chimney Leachate treatment system Slag tank Comprehensive utilization Landfill Fly ash stabilization treatment Waste Truck scale Waste Heat recovery steam generator Turbine Steam Turbine Grid Fly ashSlagLeachate 4. Information of municipal waste-to-energy industry Waste-to-energy constitutes an important guarantee to achieve reduction, recycling, and harmless treatment of waste, serves as an important component in the battle against pollution, a key underpinning for advancing urban sustainable development and building a beautiful homeland, and plays an irreplaceable role in facilitating ecological civilization construction. Since the “12th Five-Year” Plan period, with strong support from relevant policies, China’s domestic waste incineration capacity has grown rapidly. According to data released by the Ministry of Housing and Urban and Rural Development, by the end of 2025, the number of incineration facilities across the country reached 1,137 with daily treatment capacity rising to 1.18 million tons. In light of the overall goal of ecological civilization construction and against the backdrop of advancing the strategic goals of “peak carbon dioxide emissions and carbon neutrality”, the waste-to-energy industry enjoys a solid foundation. Meanwhile, the industry is confronted with multiple challenges, including decrease in National Subsidies, increasingly stringent environmental regulations, extended accounts receivable settlement cycles and overcapacity in certain local regions.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202610 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) At present, China’s municipal waste-to-energy industry has entered a stable development stage, and is gradually shifting from scale expansion to improvement of quality and effectiveness. Improving the quality and efficiency of project operation and technological innovation have become the core endogenous drivers for the sustainable development of the industry. Enterprises in the industry have improved their comprehensive energy utilization efficiency and project economic benefits by continuously strengthening cost reduction and efficiency enhancement, actively expanding waste sources, vigorously developing co- disposal businesses such as kitchen waste and sludge treatment, and expanding non-electric businesses including heat and steam supply; meanwhile, technologies such as big data and artificial intelligence are applied to operation optimization, predictive equipment maintenance and energy efficiency management, so as to enhance project operation efficiency and management through digital and intelligent means. As the release of new domestic capacity slows down, enterprises in the industry are shifting their development focus to overseas markets, with key attention on countries along the “Belt and Road”, where the attention on overseas waste-to-energy projects continues to rise. 5. Characteristics of the waste-to-energy industry The municipal waste-to-energy industry is characterized by policy encouragement, regional monopoly, capital intensiveness, and insignificant seasonal and periodic fluctuations. Details are as follows: (1) In recent years, with the continuous advancement of China’s industrialization and urbanization, the environmental problems facing our country have become increasingly serious. The State has raised the construction in relation to ecological civilization to an unprecedented level. Energy-saving and environmental protection industry, including waste treatment, is the top of the seven strategic emerging industries of the PRC. In the context of a small per capita land area in the PRC, waste-to-energy is an important means to achieve the “reduction, recycling, and harmless treatment” of waste and improve the ecological environment. Due to the large initial investment and high operating costs of waste- toenergy business, the State has introduced preferential policies in various aspects such as on-grid tariff and tax to promote the rapid development of the waste-to-energy industry, e.g. implementation of the national unified waste-to-energy benchmarking tariff of RMB0.65 (tax inclusive) per kWh for the part that does not exceed 280 kWh per ton of municipal waste; eligible waste-to-energy projects will be eligible for a tax exemption for the first year to the third year, and a 50% reduction in CIT for the fourth year to the sixth year starting from the year in which the projects first generate operating income; VAT on tariff revenue is subject to 100% refund and VAT on waste treatment fees is subject to 70% refund or the applicable VAT exemption policy. (2) The waste-to-energy projects in the PRC usually adopt the concession model, and the concession period is generally from 25 to 30 years. Under this model, the relevant government departments grant concession rights to investors or operators of waste-to-energy plants, and the grantees of concession rights enjoy the exclusive right to treat municipal waste in a certain area during the concession period. (3) The waste-to-energy industry is capital intensive. The initial investment required for the waste-to-energy project is large. The capital investment for a waste-to-energy plant with a daily treatment capacity of 1,000 tons is generally RMB400 million to RMB600 million. At the same time, the payback period of waste-to energy projects is relatively long, generally 8–12 years. (4) The raw materials of waste-to-energy plants are municipal waste, which is directly related to the local population, and the production volume is relatively stable and subject to insignificant seasonal and periodic fluctuations. Explanation on increase in important non-core business during the Reporting Period ½ Applicable ✓ Not Applicable
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 11 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) II. DISCUSSION AND ANALYSIS OF OPERATIONS Industry overview For details, please refer to “4. Information of municipal waste-to-energy industry under I. Industry and Principal Operations Information of the Company during the Reporting Period”. Business review The year 2026 marks the kick-off year for the “15th Five-Year” Plan of the Company. Upholding its corporate mission of “creating a better living environment”, the Company fully implements major decisions and deployments from higher-level authorities and focuses on strengthening core functions, boosting core competitiveness and developing new-quality productive forces. In the first half of 2026, key operating indicators of the Company achieved steady-phase growth. The Company achieved revenue of RMB1.877 billion, representing an increase of 11.45% as compared to the corresponding period last year, and a net profit attributable to shareholders of the Company of RMB465 million, representing an increase of 23.16% as compared to the corresponding period last year. As at 30 June 2026, the total assets and total equity attributable to shareholders of the Company amounted to RMB22.296 billion and RMB8.452 billion, respectively. Details are as follows: 1. Steady operation of projects under operation and main operating indicators hitting new highs In the first half of 2026, the Company kept expanding its waste treatment and steam supply businesses, with all main operating indicators hitting record high. The Company accumulatively treated 7.6603 million tons of municipal waste, representing a year-on-year increase of 7.07%, generated electricity of 2,707.7825 million kWh, representing a year-on-year increase of 6.64%; generated on-grid electricity of 2,260.4207 million kWh, representing a year-on-year increase of 6.96%; and supplied 664,200 tons of steam, representing a year-on-year increase of 28.85%. All projects under operation achieved safe, environmentally-friendly and stable operation, laying a solid foundation for local economic and social development as well as ecological environment security. Sihui Company was rated as a national grade AAA domestic waste incineration plant, bringing the total number of the Company’s grade AAA waste-to-energy plants to eight as of the end of the Reporting Period .
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202612 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) Major operating data of the Company in each region in the first half of 2026 Region Item January-June East China Waste input volume (’0,000 tons) 288.25 Electricity generation volume (’0,000 kWh) 94,604.49 On-grid electricity volume (’0,000 kWh) 77,732.26 North China Waste input volume (’0,000 tons) 94.19 Electricity generation volume (’0,000 kWh) 32,539.44 On-grid electricity volume (’0,000 kWh) 26,639.41 South China Waste input volume (’0,000 tons) 166.67 Electricity generation volume (’0,000 kWh) 62,147.12 On-grid electricity volume (’0,000 kWh) 52,101.25 Central China Waste input volume (’0,000 tons) 113.54 Electricity generation volume (’0,000 kWh) 47,168.85 On-grid electricity volume (’0,000 kWh) 40,150.21 Southwest China Waste input volume (’0,000 tons) 53.12 Electricity generation volume (’0,000 kWh) 19,387.07 On-grid electricity volume (’0,000 kWh) 16,686.23 Northeast China Waste input volume (’0,000 tons) 50.27 Electricity generation volume (’0,000 kWh) 14,931.28 On-grid electricity volume (’0,000 kWh) 12,732.72 Note: Due to rounding, there may be minor variances between the total amount and the sum of individual breakdown items. 2. Remarkable results in quality improvement, cost reduction and efficiency enhancement In the first half of 2026, the Company continued to adopt multiple measures to improve quality, cut costs and boost efficiency; it successfully issued science and technology innovation bonds in an amount of RMB500 million at a coupon rate of 1.88%, setting a new record-low cost for debt financing. Through centralized procurement, the purchase price of flue-gas purification filter bags dropped by 6.7% year-on- year, costs for incinerator refractory components fell by approximately 37%, the procurement price of slaked lime declined by over 20%, and expense savings from the oxygen-enriched ash-blowing system hit 60%. Notable outcomes were delivered in “minor-scale technical renovation” and “micro-innovation”. All waste-to- energy plants have basically finished tests on the calcium-carbonate direct injection technology, resulting in a decrease in the unit consumption of slaked lime and fly-ash generation rate and an estimated annual expense saving of RMB8 million; the ultra-low-temperature catalysts have been applied in 3 projects, leading to an estimated increase in annual revenue from power generation by approximately RMB4.94 million.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 13 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) 3. Scientific and technological innovation being brought into full play In the first half of 2026, the Company improved the top-level design for its scientific-and-technological innovation strategy and built a technology iteration system featuring short-term efficiency enhancement, medium-term breakthroughs and long-term leadership. Beijing Environmental Protection and Intelligent Technology Research Branch was established to comprehensively enhance the Company’s technological innovation capability, core competitiveness and leadership in the industry, providing robust technical support for the implementation of medium-and long-term strategies. Acceptance was completed for the digital and intelligent transformation of benchmark waste-to-energy projects in Wuhan, Haining, etc. Framework agreements for deepened cooperation and strategic cooperation agreement were signed with Aliyun, China ENFI and other enterprises to advance preparations for transformation of the second batch of digital and intelligent power plants. The intelligent upgrading project for the waste crane of Tongzhou Company smoothly passed acceptance, and China’s first full-coverage intelligent management and control system for waste bins equipped with AI technology was put into service; the digital and intelligent technical renovation for wastewater treatment completed pilot verification at Tongzhou Company which launched scenario development for intelligent inspection and intelligent security-protection, alongside demonstrations on digital technology application and will push forward the construction of “dark factory” in phases. The Company strengthened cooperation with universities and scientific research institutions and simultaneously proceeded with multiple technical routes for recycling of fly ash and steadily conducted verification on key technologies such as in-situ recycling; the self-developed small-scale grate waste incinerator technology was put into practice at Heihe Project. In terms of internal management, the Company launched the “Director Signature” electronic signing system, digital procurement platform, electronic seal system and other systems, with its digital governance capacity continuously improved. 4. Positive achievements in investment-driven expansion The Company adheres to the dual-driven strategy of investment, mergers and acquisitions as well as overseas market expansion. In the first quarter of 2026, it completed the acquisition and smooth hand-over of Xinmi Company in Henan Province, while actively tracking multiple acquisition targets; breakthroughs were secured in light-asset business expansion. In June, the Company won the bid for the entrusted operation project covering the domestic waste-to-energy plant and fly-ash landfill site in Tiantai County, Taizhou, Zhejiang Province, marking innovation in the light-asset operation model; Phase II works of Guangyuan Project commenced smoothly and has now entered the equipment installation phase. The Company was shortlisted on the qualified supplier whitelist for the second batch of waste-to-energy projects in Indonesia, with the bidding for overseas projects advancing in an orderly manner.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202614 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) BUSINESS OUTLOOK Waste-to-energy is an important guarantee for achievement of reduction, recycling, and harmless treatment of waste, is a key support for promoting sustainable urban development and building a beautiful homeland, and plays an irreplaceable role in ecological civilization construction. Meanwhile, the sustainable and healthy development of waste-to-energy industry faces challenges such as continued narrowing market increment, unsaturated rate of capacity utilization in certain areas, phase-out of National Subsidies, extended settlement cycle of accounts receivable, etc. In recent years, with the decrease in National Subsidies, the relevant ministries and commissions of the state have proactively promoted Green Certificate trading and direct green power supply, to price the environmental value of renewable energy through market mechanisms and bring additional benefits to renewable energy power generation enterprises. In July 2023, the NDRC, the Ministry of Finance and the National Energy Administration jointly issued the Notice on Promoting the Full Coverage of Renewable Energy Green Electricity Certificates to Promote the Consumption of Renewable Energy Electricity, clarifying that biomass power generation (including waste-to-energy) will be included in the scope of Green Certificate and enterprises can participate in trading in the green electricity market, which is conducive to the income compensation of waste-to-energy projects after expiry of National Subsidies. In May 2025, the NDRC and the National Energy Administration jointly issued the Notice on Orderly Promoting the Development of Direct Green Power Supply, which permits renewable energy projects including biomass power generation to supply green electricity directly to end users via direct transmission lines, without access to the public grid. This model provides an opportunity for waste-to-energy projects to explore new business models. The Outline of the 15th Five-Year Plan for National Economic and Social Development of the People’s Republic of China ( ) clearly proposes continuous and in- depth promotion of the tough battle against pollution, and implementation of comprehensive governance action for solid waste. In January 2026, the State Council issued the Action Plan for Comprehensive Treatment of Solid Waste (ྌ), which made systematic arrangements in terms of reduction at source, classified management, standardized disposal, and risk prevention and control, and emphasized improving the level of recycling of solid waste and development of a circular economy. The plan proposed enhancement of policy guarantees, improvement of charging system, implementation of a waste disposal charging system, and reasonable formulation and adjustment of metered charging for non-residential kitchen waste treatment, to further improve the market mechanism for the sustainable development of the industry. With the improvement of the domestic waste disposal charging system, a sustainable development business model of “producer-pay” will be gradually established, to enhance the stability and predictability of the industry’s cash flow and reduce dependence on financial subsidies.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 15 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) With serving national strategies as its fundamental orientation and high-quality development as its primary task, the Company will unswervingly strengthen, optimize and expand its core waste-to-energy business. It will continue to promote quality improvement, cost reduction and efficiency enhancement and deepen refined operation to drive diversified and coordinated business development, thus to consolidate the foundation for high-quality development; strengthen technological innovation and build high-quality platforms for scientific and technological innovation to enhance the Company’s core competitiveness; it will also promote investment and mergers and acquisitions in a planned way to consolidate the leading position in the industry; and actively expand into overseas markets to deeply integrate into the global green development landscape and elevate the Company’s international influence, striving to become a world-class environmental protection industry group with a prominent core business, leading technologies, efficient management and an excellent brand. In the second half of 2026, the Company will strive for technical breakthroughs covering full-process digital and intelligent incineration, reduction at source and recycling of fly ash, etc., deepen application of scenarios such as “artificial intelligence + environmental protection”, foster new-quality productive forces and spearhead the establishment of an independently-controllable modern industrial system characterized by “intelligence, eco- friendliness and integrated development”; while upholding the dual-driven strategy of investment, mergers and acquisitions as well as overseas expansion, the focus will be placed on accelerating high-quality project reserves targeting key regions and vital industrial-chain aspects, and continued effects will be exerted to advance investment, mergers and acquisitions as well as overseas market expansion; construction of the Phase II project of Guangyuan Company will proceed steadily, and collection of accounts receivable will be strengthened; the Company will fully enforce work safety and environmental compliance obligations at all levels, and strengthen risk monitoring, early warning as well as hazard investigation and rectification in key fields, so as to build a solid shield for high-quality development. Material changes in the operations of the Company during the Reporting Period, and events that have a significant impact on the operations of the Company during the Reporting Period and are expected to have a significant impact in the future ½ Applicable ✓ Not Applicable
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202616 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) III. ANALYSIS OF CORE COMPETITIVENESS DURING THE REPORTING PERIOD ✓ Applicable ½ Not applicable During the Reporting Period, there was no material change in the core competitiveness of the Company. 1. Focused market layout spanning across the whole country Since its establishment, the Company has adopted a proactive strategy in market development and strives to develop various regional markets. Its projects are distributed in an extensive geographical area, with a market network covering over 20 provinces/municipalities/autonomous regions. Focusing on the vast market space of the economically developed Yangtze River Delta, Pearl River Delta and Bohai Economic Rim, the Company has extended its business network to the central and western regions such as Anhui, Hubei, Guizhou, Shanxi, Guangxi, Jiangxi, Hunan, Shaanxi, Henan and Sichuan, preliminarily forming a market layout based in the Yangtze River Delta, Pearl River Delta and Bohai Rim and spanning across the country. The Company is in a leading position in the industry in terms of the number of projects and waste treatment capacity. The broad market layout reflects the Company’s ability to develop projects and conduct operation management in different regions, laying a solid market foundation for the Company to continuously expand its leading edge during the industry consolidation period, and also helps to reduce the impact of local unfavorable factors of local areas on the overall layout.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 17 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) 2. Extensive industry experience The Company is among the first companies to explore industrial applications for waste treatment in the PRC, and is also one of the earliest enterprises to focus on upgrading and further developing advanced waste-to-energy technologies in the PRC. Since its establishment, the Company has accumulated extensive experience in project investment, construction and operation management and has full-life-cycle management experience from the early planning to the later operation of projects. A number of waste- to-energy projects invested and constructed by the Company have become industry benchmarks. The Changzhou Project was recognised by China Association of Environmental Protection Industry (ڭ ᚐପุึ) as a “National Model Project for Use of Environmental Protection Technologies” (Ҧஔ ᅼᇍධͦ) in 2013. Huizhou Project and Haining Expansion Project were successively awarded the “Quality Chinese Project for Electricity Engineering Award” ( ʕཥɢᎴሯʈᆤ) and the “National Quality Project Award” (Ꮄሯʈᆤ). Tongzhou Project was awarded the “Quality Chinese Project for Electricity Engineering Award” ( ʕཥɢᎴሯʈᆤ) and “Luban Prize” ( ኁफᆤ) in 2020. Due to its consistent and sound performance, the Company has been recognised as the “Top 10 Most Influential Solid Waste Enterprises” for sixteen consecutive years. Over two decades of deep engagement in the industry has not only forged the Company’s influential brand image and made it a trusted partner of customers, but also laid a solid foundation for the Company to seize industry development opportunities and achieve its strategic development goals. 3. Leading professional technology The Company has always placed technological innovation at the core of its strategy. Through sustained technological innovation, the Company has enhanced the efficiency of waste-to-energy projects. The “multiple drive expeller grate waste incinerator” technology independently developed by the Company is a leading incineration technology in the industry and was granted an invention patent by the state. The technology is compatible with the characteristics of the municipal waste in the PRC with an edge in performance, was selected by the Ministry of Housing and Urban-Rural Development as a core technology to promote for use during the“11th Five-Year Plan” period, and was successfully listed in the 2019 Directory of Key Environmental Protection Practical Technologies and Demonstration Projects ( 2019ᚐྼ ͜ҦஔʿͪᇍʈΤ) by China Association of Environmental Protection Industry (ᚐପุ ึ). “A multiple drive expeller grate waste incinerator with an online warning and control system of dioxin” independently developed by the Company was awarded the second prize for technical progress for 2019 by China Environmental Protection Industry Association; the multiple drive expeller grate waste incinerator and dioxin online warning and control technology won the first prize of scientific and technological progress and the second prize of scientific and technological application of China Association of Urban Environmental Sanitation in 2022, respectively; the digital smart domestic waste incineration technology and application project won the first prize of scientific and technological progress granted by China Association of Urban Environmental Sanitation in 2024; “Key Technology for Mixed Burning of High Water Content Sludge in Incinerators with Preheating and Reinjection” won the second prize of the 2025 Science and Technology Progress Award by the All-China Environment Federation. With leading professional technology, the Company can provide customers with better environmental protection services, maintain a competitive edge in the waste-to-energy field, lead the development of the industry and make positive contributions to the construction of ecological civilization.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202618 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) 4. Experienced management team The management team of the Company has been engaged in market development, technology development and project construction and operation of waste-to-energy plants over the years. The management team has nearly 20 years of experience in cooperation and in-depth understanding of the industry. Under the guidance of the management team, the project construction and operation team can adopt targeted strategies for the changes in the waste treatment technology and management and operation of waste-to- energy plants in a timely manner to continuously improve quality, reduce costs and increase efficiency, while the marketing team can actively develop potential regional markets according to the future development planning of the Company to continue to expand market share. Such an experienced team of the Company helps to enhance the operating efficiency and warrants the quality of the projects to consolidate the leading position in the industry. IV. MAJOR OPERATIONAL PARTICULARS DURING THE REPORTING PERIOD (I) Analysis of main businesses 1. Analysis of changes in the relevant items in the financial statements Unit: RMB Item Amount for the current period Amount for the corresponding period last year Change (%) Revenue 1,876,654,110.71 1,683,873,882.60 11.45 Operating cost 939,290,120.75 849,854,998.38 10.52 Selling expenses 861,461.09 560,846.25 53.60 Administrative expenses 117,730,663.06 105,224,608.65 11.89 Finance costs 169,307,527.06 191,199,610.97 –11.45 Research and development expenditure 4,170,994.91 2,463,979.36 69.28 Net cash flow generated from operating activities 705,401,092.41 632,244,063.03 11.57 Net cash flow generated from investing activities –211,171,921.10 –157,338,036.48 N/A Net cash flow generated from financing activities –591,708,500.91 –432,684,909.11 N/A Explanation on changes in revenue: Mainly due to an increase in waste treatment volume, on-grid electricity and steam supply volume, the inclusion of the newly acquired Xinmi Company in financial statements, and the recognition of construction revenue upon the commencement of construction of the Phase II works of Guangyuan Project during the period.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 19 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) Explanation on changes in operating cost: Mainly due to an increase in expenses of overhauls and other maintenance, expenses of technological transformation, rising fuel and transportation costs incurred from waste expansion, the inclusion of the newly acquired Xinmi Company in financial statements, as well as the recognition of construction costs and an increase in operating cost upon the commencement of construction of the Phase II works of Guangyuan Project during the period. Explanation on changes in selling expenses: Minor changes in amount. Explanation on changes in administrative expenses: Mainly due to an increase in share-based payment expenses during the period. Explanation on changes in finance costs: Mainly due to a decrease in the average balance of borrowings and the decline in borrowing interest rates, resulting in a decrease in interest expenses. Explanation on changes in research and development expenses: Mainly due to an increase in share-based payment expenses during the period. Explanation on changes in net cash flow generated from operating activities: Mainly due to an increase in National Subsidies and an increase in cash received from the sale of goods and provision of services as compared with the same period last year during the period. Explanation on changes in net cash flow generated from investing activities: Mainly due to an increase in net cash paid for acquisition of Xinmi Company, completion of capital contribution to the joint venture in Hong Kong, and acquisition of subsidiaries and other business entities and cash paid for was primarily, a decrease in the investment in construction as compared with the same period last year and a decrease in cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets during the period. Explanation on changes in net cash flow generated from financing activities: Mainly due to the increase in the net repayment of borrowings during the period as compared with the same period last year was greater than the amount received by the Company from issuance of bonds during the period, resulting in an increase in the net outflow of cash flows from financing activities. 2. Detailed explanation on material changes in the business type, profit composition or profit source of the Company in the period ½ Applicable ✓Not Applicable (II) Explanation of major changes in profit due to non-main operations ½ Applicable ✓ Not Applicable
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202620 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) (III) Analysis of assets and liabilities ✓ Applicable ½ Not applicable 1. Assets and liabilities Unit: RMB Item Amount as at the end of the current period Percentage of amount as at the end of the current period to total assets (%) Amount as at the end of the last year Percentage of amount as at the end of the last year to total assets (%) Change of amount as at the end of the current period to amount as at the end of the last year (%) Explanation Cash at bank and on hand 1,445,557,491.31 6.48 1,543,476,291.84 7.04 –6.34 Mainly due to that the net outflow from investment activities and financing activities during the period was greater than the net inflow from operating activities Accounts receivable 2,944,163,570.29 13.21 2,622,655,844.03 11.96 12.26 Mainly due to the extension of the settlement cycle and the increase in the accumulated balance of receivable waste treatment fees Contract assets 526,281,294.35 2.36 482,813,621.23 2.20 9.00 Mainly due to the increase in the accumulated balance of receivables from national renewable energy subsidies Intangible assets 10,171,961,848.99 45.62 10,195,237,883.09 46.50 –0.23 Minor changes Other non-current assets 6,476,807,112.87 29.05 6,373,567,093.74 29.07 1.62 Minor changes Short-term borrowings 293,171,730.56 1.31 293,188,903.61 1.34 –0.01 Minor changes Accounts payable 525,067,490.33 2.36 522,488,062.31 2.38 0.49 Minor changes
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 21 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) Item Amount as at the end of the current period Percentage of amount as at the end of the current period to total assets (%) Amount as at the end of the last year Percentage of amount as at the end of the last year to total assets (%) Change of amount as at the end of the current period to amount as at the end of the last year (%) Explanation Current portion of non-current liabilities 894,291,924.99 4.01 883,247,351.44 4.03 1.25 Minor changes Long-term borrowings 6,526,241,515.76 29.27 7,246,754,307.83 33.05 –9.94 Mainly due to adjustment to the debt structure of the Company, with new medium- term borrowings replacing long- term borrowings and long- term borrowings due within one year, and a decrease in existing long-term borrowings as a result of successive repayment of borrowings by project companies Bonds payable 3,443,132,064.90 15.44 2,915,661,242.30 13.30 18.09 Mainly due to an increase in medium-term notes during the period Other explanation Nil 2. Overseas assets ✓ Applicable ½ Not applicable (1) Assets size Including: overseas assets of RMB17,686,506.63 (Unit: RMB), accounting for 0.08% of the total assets. (2) Explanation on relatively high proportion of overseas assets ½ Applicable ✓ Not Applicable Other explanation N/A
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202622 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) 3. Assets with restrictive ownership title or right of use as at the end of the Reporting Period ✓ Applicable ½ Not applicable Item Balance at the end of the period (RMB) Balance at the beginning of the period (RMB) Reason for restriction Cash at bank and on hand 224,500.00 634,500.00 Litigation freezing and deposits Other non-current assets 3,533,759,422.06 3,825,627,809.80 Used for pledged borrowings Intangible assets 5,126,978,000.00 4,760,823,554.92 Used for pledged borrowings Accounts receivable 1,877,206,170.14 1,716,111,131.49 Used for pledged borrowings Contract assets 321,448,651.48 295,649,290.39 Used for pledged borrowings Notes receivables 517,506.42 – Endorsed and discounted notes that have not yet matured or derecognized Total 10,860,134,250.10 10,598,846,286.60 4. Other explanation ½ Applicable ✓ Not Applicable (IV) Financial Review (disclosure pursuant to the requirements of the Stock Exchange) Financial position and net profit For the first half of 2026, the Company achieved revenue of RMB1,876,654,110.71 and net profit of RMB488,856,891.19. As at 30 June 2026, the Company’s total assets and total liabilities amounted to RMB22,295,557,061.73 and RMB13,434,143,282.96, respectively. The total equity amounted to RMB8,861,413,778.77 and the gearing ratio (calculated as total liabilities over total assets) was 60.25%, and the net asset value per share attributable to the shareholders of the Company was RMB6.07. Revenue analysis During the Reporting Period, the Company achieved revenue of RMB1,876,654,110.71 (corresponding period in 2025: RMB1,683,873,882.60), representing an increase of 11.45% as compared to the corresponding period in 2025, mainly due to an increase in waste treatment volume, on-grid electricity and steam supply volume, the inclusion of the newly acquired Xinmi Company in financial statements, and the recognition of construction revenue upon the commencement of construction of the Phase II works of Guangyuan Project during the period. Gross profit and gross profit margin During the Reporting Period, the gross profit of the Company increased by 12.39% to RMB937,363,989.96 (corresponding period in 2025: RMB834,018,884.22) and the gross profit margin was 49.95% (corresponding period in 2025: 49.53%). The increase in gross profit was mainly due to the proactive expansion of revene, costs reduction and efficiency enhancement by the Company, resulting in a year-on-year increase in revenue greater than the increase in operating cost.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 23 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) Administrative expenses During the Reporting Period, the administrative expenses of the Company amounted to RMB117,730,663.06 (corresponding period in 2025: RMB105,224,608.65), which accounted for approximately 6.27% (corresponding period in 2025: 6.25%) of the revenue of Company, representing an increase of 11.89% as compared with the same period last year, mainly due to an increase in share-based payment expenses during the period. Finance costs During the Reporting Period, the finance costs for the Company amounted to RMB169,307,527.06, representing a decrease of RMB21,892,083.91 over the corresponding period of previous year. This was mainly due to a decrease in the average balance of borrowings and the decline in borrowing interest rates, resulting in a decrease in interest expenses. Total profit During the Reporting Period, the total profit of the Company amounted to RMB640,110,008.46, representing an increase of RMB143,781,871.20 as compared to corresponding period in 2025, which was mainly due to an increase in gross profit, a decrease in finance costs and an increase in VAT refunds receivable included in other income. Income tax During the Reporting Period, the income tax expenses of the Company amounted to approximately RMB151,253,117.27 (corresponding period in 2025: RMB97,751,254.87), accounting for approximately 23.63% (corresponding period in 2025: 19.69%) of total profit of the Company. The increase in the ratio of income tax expenses to total profit was mainly due to the end of tax holiday of certain project companies and the shift of certain project companies from tax holiday to halving period in the period, resulting in a year- on-year increase in income tax expenses for the period. Total comprehensive income attributable to the shareholders of the Company During the Reporting Period, the total comprehensive income attributable to the shareholders of the Company was RMB464,542,051.18 (corresponding period in 2025: RMB377,232,320.56). The increase was mainly due to an increase in the net profit attributable to the shareholders of the Company. Financial resources and liquidity The Company adopts prudent principles in cash and financial management to ensure proper risk management and reduction in costs of fund. It finances its operations primarily from cash flow generated internally and loans from principal banks. As at 30 June 2026, the Company had cash and cash equivalents of approximately RMB1,445,332,991.31, representing a decrease of RMB97,508,800.53 as compared to RMB1,542,841,791.84 at the end of 2025. The vast majority of the Company’s cash and cash equivalents were held in Renminbi. As at 30 June 2026, the Company’s gearing ratio decreased from 60.45% at the end of 2025 to 60.25%. Capital management The Company’s primary objective when managing capital is to safeguard the Company’s ability to continue as a going concern, so that it can provide returns for its shareholders while maintaining reasonable capital structure to reduce capital costs. The Company makes use of its gearing ratio for the management of capital structure. The ratio is defined as total liabilities divided by total assets. During the six months ended 30 June 2026, the Company’s capital management strategy remained unchanged from 2025. As at 30 June 2026 and 31 December 2025, the gearing ratios of the Group were 60.25% and 60.45%, respectively.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202624 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) Loans and pledge of assets As at 30 June 2026, the Company had total outstanding borrowings of approximately RMB7,670,562,166.13, representing a decrease of RMB699,308,233.65 as compared to RMB8,369,870,399.78 at the end of 2025. The borrowings included pledged loans of RMB5,467,427,194.52 and unpledged loans of RMB2,203,134,971.61. The Company’s borrowings were denominated in Renminbi and Hong Kong dollars. Most of the Company’s borrowings were at floating rates. As at 30 June 2026, the Company had composite banking credit facilities in the amount of RMB14,683,790,000.00, of which RMB2,625,265,965.37 had not been utilised. The composite banking credit facilities had terms ranging from 1 year to 15 years. The Company currently does not have any interest rate hedging policies. However, the management team keeps monitoring the Company’s interest rate risks and would consider other necessary actions when significant interest rate risks are anticipated to occur. Certain receivables and operating rights in connection with the Company’s service concession arrangements (including intangible assets, other non-current assets, contract assets and accounts receivable) were pledged under the banking credit facilities. The book value of the pledged receivables and operating rights amounted to approximately RMB10,859,392,243.68 as at 30 June 2026. Contingent liabilities The Company has issued financial guarantees to banks in respect of the banking credit facilities granted to certain subsidiaries. The Board of the Company does not consider it probable that a claim will be made against the Company under the guarantees. The maximum liability of the Company as at 30 June 2026 and 31 December 2025 under the guarantees was the credit facility drawn down by the subsidiaries of RMB5,470,909,372.61 and RMB6,204,469,824.08, respectively. Commitments As at 30 June 2026 and 31 December 2025, the Company’s outstanding purchase commitments in relation to the construction contracts which had not been provided for in the Company’s interim financial statements were RMB96,394,901.84 and RMB0, respectively. Foreign exchange risks and exchange gains and losses The functional currency of the Company is Renminbi while a portion of funds is in the form of bank deposits denominated in Hong Kong dollars. Therefore, it may be subject to the risks of exchange rate fluctuations of the Renminbi and Hong Kong dollars. Apart from the above, most of the assets and transactions of the Company are denominated in Renminbi, and the Company mainly settles its operating expenses in the PRC with income generated in Renminbi, thus the Company is not exposed to any significant foreign exchange risks. The Company currently has no hedging policy with respect to the foreign exchange risks.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 25 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) (V) Investment analysis 1. Overall analysis of external equity investments ✓ Applicable ½ Not applicable Investments during the Reporting Period (RMB) Investments during the corresponding period last year (RMB) Change 152,143,870.00 0 (1) Material equity investments or acquisitions ½ Applicable ✓ Not Applicable (2) Material non-equity investments ½ Applicable ✓ Not Applicable (3) Financial assets measured at fair value ½ Applicable ✓ Not Applicable Investment in securities ½ Applicable ✓ Not Applicable Explanation on investment in securities ½ Applicable ✓ Not Applicable Investment in private equity funds ½ Applicable ✓ Not Applicable Investment in derivatives ½ Applicable ✓ Not Applicable (4) Details of future material investment or capital assets plans As at 30 June 2026, save for the investment or construction of the waste-to-energy projects won by the Company through tender as announced in previous announcements and described in this interim report, the Company had no other material investment (including any investment in an investee representing 5% or above of the total assets of the Company as at the end of the Reporting Period) or plan for material investment or acquisition of capital assets. However, the Company will actively pursue opportunities for investments in its ordinary course of business in order to enhance its profitability. For the expected sources of funding, please refer to the previous announcements.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202626 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) (VI) Material disposal of assets and equity ½ Applicable ✓ Not Applicable (VII) Analysis of major controlling and companies invested by the Company ✓ Applicable ½ Not applicable Major subsidiaries and invested companies affecting over 10% of net profit of the Company ✓ Applicable ½ Not applicable RMB’0,000 Name of company Company type Principal business Registered capital Total assets Net assets Revenue Operating profit Net profit Tongzhou Company Subsidiary Waste treatment and power generation 37,500 141,537.56 51,209.83 10,036.05 5,988.78 4,492.04 Shantou Company Subsidiary Waste treatment and power generation 21,000 113,197.51 40,324.21 11,392.70 5,424.49 3,910.51 Haining Expansion Company Subsidiary Waste treatment and power generation 39,000 112,426.57 48,781.07 9,613.68 5,075.83 3,765.17 Huizhou Phase II Company Subsidiary Waste treatment and power generation 45,000 146,200.12 64,285.83 15,081.28 8,921.10 6,664.15 Wuhan Company Subsidiary Waste treatment and power generation 27,948.43 114,427.19 40,844.95 8,454.08 1,530.43 1,320.07 For the performance of each of the above investments during the Reporting Period, please refer to “Net profit” and “Operating profit” in the above table; for the Company’s discussion on the investment strategies for the above investments, please refer to “(4) Details of future material investment or capital assets plans” under “(V) Investment analysis” in the section. Acquisition and disposal of subsidiaries during the Reporting Period ½ Applicable ✓ Not Applicable Other explanation ½ Applicable ✓ Not Applicable (VIII) Structured entities controlled by the Company ½ Applicable ✓ Not Applicable
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 27 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) V. OTHER DISCLOSURES (I) Potential risks ✓ Applicable ½ Not applicable 1. Risk of industry policies The waste-to-energy industry is greatly affected by industry policies. Pursuant to the Renewable Energy Law of the PRC () (as amended in 2009), the government implements a full coverage purchase system for renewable energy power generation. Pursuant to the Notice on Improving the Pricing Policy of Waste Incineration Power Generation from the National Development and Reform Commission (Fa Gai Jia Ge [2012] No. 801) (ࣸ )(ࣸ[2012]801) issued by the National Development and Reform Commission on 28 March 2012, the waste-to-energy projects are converted into on-grid electricity for settlement based on the volume of waste treatment received in the plants with a conversion ratio of 280 kWh per ton of municipal waste. The part that does not exceed the above-mentioned amount of electricity implements a national waste-to-energy benchmark price of RMB0.65 per kWh (inclusive of tax). The part that exceeds the abovementioned amount of electricity implements the on-grid tariff for the local coal-fired generating units. All the waste-to-energy projects approved after 2006 shall follow such regulation. In September 2020, the Ministry of Finance, the National Development and Reform Commission, and the National Energy Administration jointly issued the Supplementary Notice on Relevant Matters on the Several Opinions on Promoting the Healthy Development of Non-Hydro Renewable Energy Power Generation (Cai Jian (2020) No. 426) (ʍจԈ Ϟ ܔ[2020]426), noting that subsidies for biomass power generation projects by the National Renewable Energy Fund will cover only the first 82,500 hours or 15 years after the project is put into operation. In August 2021, the National Development and Reform Commission, the Ministry of Finance, and the National Energy Administration jointly issued the Notice on Printing and Distributing the Work Plan for the Construction of Biomass Power Generation Projects in 2021 (Fa Gai Neng Yuan [2021] No. 1190) (೯ҷঐ๕[2021]1190), proposing to divide the biomass power generation projects subsidized by the central government in 2021 into non-competitive allocation projects and competitive allocation projects. The projects for which all units were completed and connected to the grid in the current year after 20 January 2020 (inclusive) but which were not included in the subsidy scope of 2020 and the projects for which the construction was commenced by the end of 2020 and all units were completed and connected to the grid by the end of 2021 are noncompetitive configuration projects; the projects for which the construction was commenced in the current year after 1 January 2021 (inclusive) are competitive configuration projects. The change of national renewable energy tariff subsidy policy may have adverse effects on the Company’s profitability and cash flow. The Company will pay close attention to policy developments and convey our desire to maintain policy stability through industry organizations. The Company will develop heating business according to local conditions and expand the source of income. When negotiating a franchise agreement, the Company will supplement corresponding terms, through which, if there is a major change in the external policy, the loss can be compensated by raising the garbage disposal fees; the projects for which the National Subsidies become due can make up the income by applying for the issuance of Green Certificate and participating in Green Certificate trading.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202628 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) 2. Risk of environmental protection policies The waste-to-energy business conducted by the Company is strictly regulated by the environmental protection departments at all levels in the country. In recent years, the environmental pollution problems have become increasingly prominent in the PRC. On the one hand, the government has introduced favourable policies to support the rapid development of the environmental protection industry, and on the other hand, it has also strengthened the supervision on the environmental protection industry. The Company operates in strict compliance with the relevant requirements of the environmental protection departments. As the government has been raising the environmental protection standards, the Company’s investment in environmental protection will correspondingly increase, which may adversely affect the operations, profitability and cash flows of the Company. The Company will increase power generation through technology research and development, facility renovation and improvement of operation management to offset the adverse impact of rising costs in environmental protection. 3. Risk of tax policies The Company and its subsidiaries rely on the government’s policies in respect of the environmental protection industries to enjoy tax incentives for certain taxes such as corporate income tax and value- added tax. From 2024 to 2025, the Company enjoyed total tax incentives of RMB181,101,000 and RMB191,589,700 respectively, accounting for 25.65% and 24.25% of the total profit of the Company for the year. If the country reduces the tax incentives for the environmental protection industries in the future, the operations, profitability and cash flows of the Company may be adversely affected. The Company will pay close attention to policy developments and convey our desire to maintain policy stability through industry organizations. When negotiating a concession agreement, the Company will supplement corresponding terms that if there is a major change in the external policy, the loss can be compensated by raising the garbage disposal fees. 4. Risk of delayed settlement of accounts receivable Since the Company’s main customers are local government departments and enterprises under state- owned power grid companies with good credit standing, the default probability of accounts receivable is small. However, with the expansion of the Company’s business scale and increase in pressure on financial payments of government, the extension of settlement cycle of the national renewable energy subsidies and the waste treatment fees in certain areas, the Company’s accounts receivable may continue to increase. If the accounts receivable cannot be collected in time, it may adversely affect the Company’s cash flow and operating results. The Company focuses on establishing a harmonious relationship with customers, strengthening communication with customers, and assigning the responsibilities of projects in relation to collection of accounts receivable in order to promote timely collection of accounts receivable.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 29 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) 5. Risk of negative public perceptions on waste-to-energy business The public may have a negative perception on waste-to-energy business. The public may be worried that the construction and operation of the projects may cause secondary pollution to the surrounding environment. With regards to this, the NDRC added a social stability risk assessment procedure in the project approval procedures, and the Ministry of Ecology and Environment also strengthened the requirements for environmental impact assessment and further regulated the environmental impact assessment hearings and public investigation procedures. The “Not in My Back Yard” effect and the strict regulatory policies of the government intensify the difficulty of project site selection, leading to an increase in project preparation time and costs. If the negative public perceptions on waste-to- energy business are further aggravated in the future, the profitability of the Company may be adversely affected as a result of increased difficulty of operation. The Company will discharge pollutants strictly according to environmental protection standards and will publish emission data to public. The Group will organize community residents to visit the waste-to- energy plants operated by the Group to provide the public with a deeper understanding of waste-to- energy business. 6. Risk of unstable supply and calorific value of municipal solid waste The operating efficiency of a waste-to-energy plant depends on the supply and calorific value of municipal solid waste. Municipal solid waste is mainly transported by the local government to the waste-to-energy plant of the Company by land transportation. The supply is mainly affected by the local waste collection system and the size of local population. If the local government lacks or fails to establish a complete waste collection and delivery system on time, it will not be able to supply the Company with consistent and stable supply of municipal solid waste, which may result in insufficient capacity utilisation of the Company. The waste classification being promoted will also affect the waste supply. In addition, the calorific value of waste will also affect the amount of electricity generated by waste-to- energy plants. If the calorific value of municipal solid waste is low, the amount of electricity generated cannot be guaranteed. Therefore, the instability of the supply and calorific value of municipal solid waste may affect the operational efficiency of the waste-to-energy plants of the Company, which will adversely affect the operations and profitability of the Company. Before signing concession agreements, the Company conducts a full evaluation and analysis of the quantity and calorific value of the wastes provided by the government to ensure that wastes are provided in accordance with the quantity and quality reasonably agreed in the concession agreement. In the case of insufficient quantity of garbage and insufficient calorific value, the Company will actively search for domestic garbage and pollution-free combustion material in the garbage supply area and surrounding areas. In addition, as agreed in the concession agreement, if the amount of garbage is lower than the guaranteed value, the government will pay the fee at the guaranteed value to the Company.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202630 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) 7. Risk of cost overruns and delays in the construction of the BOT projects of the Company The cost and progress of the project construction are affected by a number of unfavourable factors, including price fluctuations in construction materials, equipment and components, shortages in the supply of equipment, materials or manpower, strikes and labour disputes, unexpected engineering, design, environmental or geological issues, impact of supporting infrastructure facilities, unexpected increase in costs, the “Not in My Back Yard” effect and others. These factors may be beyond the control of the Company, which may lead to cost overruns and delays in the construction of the BOT projects of the Company, which may in turn result in the Company’s failure to achieve the expected returns and adversely affect the operations and financial conditions of the Company. The Company pays attention to the establishment of a harmonious relationship with the government agencies related to the project and urges the government to complete all legal procedures and ancillary infrastructure facilities of the project. The Company clearly stipulated in the concession agreement that if the project construction conditions are not reached, or the project is suspended, the construction period is delayed, and the cost is increased due to the reasons caused by the government, then the government should compensate the project investors accordingly. In addition, the Company selects suppliers meticulously, demands the construction units to keep a high level of attention to project construction, increases investment in personnel and equipment, and forms a strong project management team. 8. Risk of substandard performance in environmental protection In the course of project construction and operation, the Company may be subject to environmental pollution risks such as air pollution, noise pollution, sewage and solid waste discharge. Although the Company has adopted measures such as waste gas purification, waste water and solid waste treatment and noise prevention to avoid or minimize the potential adverse impact of its projects on the environment, environmental pollution risks may still exist due to equipment failures or human errors in the actual production and operation processes of the project companies, which may adversely affect the operations, brand reputation and profitability of the Company. The Company attaches great importance to environmental protection compliance, starting with corporate culture, management system, financial budget as well as supervision and assessment to ensure that the Company’s emissions meet the standards. (II) Other disclosures ½ Applicable ✓ Not Applicable
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 31 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) VI. HALF-YEAR PROGRESS EVALUATION OF THE ACTION PLAN FOR “QUALITY IMPROVEMENT, EFFICIENCY ENHANCEMENT AND FOCUS ON RETURNS” In accordance with the requirements of the Shanghai Stock Exchange on participation in the special action of “Quality Improvement, Efficiency Enhancement and Focus on Returns” by companies listed on the main board, the Company has evaluated the implementation of action plan for “Quality Improvement, Efficiency Enhancement and Focus on Returns” in the first half of 2026. Details are as follows: I. Continuous improvement of operational quality, expansion and enhancement of main business In the first half of 2026, the Company vigorously expanded solid waste sources and steadily improved capacity utilization. The waste treatment volume reached 7.6603 million tons, representing a year-on- year increase of 7.07%, and the on-grid electricity amounted to 2.26 billion kWh, representing a year-on- year increase of 6.96%. All projects under operation maintained safe, environmentally friendly and stable operation. The Company steadily increased the proportion of non-electric businesses. In the first half of the year, the steam supply reached 664,200 tons, representing a year-on-year increase of 28.85%; the biogas purification volume reached 580,000 cubic meters, and the contract for the Wuhan Biogas Purification Project was signed; the sludge treatment volume stood at 380,000 tons, fulfilling the progress requirement for the first half of the year. The Company issued approximately 110,000 Green Certificates in the first half of the year, diversifying the sources of revenue. The Company strengthened refined management and focused on cost control. Centralized procurement delivered remarkable outcomes. The purchase price of flue-gas purification filter bags dropped by 6.7% year-on-year, costs for incinerator refractory components fell by approximately 37%, the procurement price of slaked lime declined by over 20%, and expense savings from the oxygen-enriched ash-blowing system hit 60%; the Company also proactively broadened financing channels by successfully issuing science and technology innovation bonds in an amount of RMB500 million at a coupon rate of 1.88%, setting a new record-low cost for corporate debt financing. Finance costs were cut via early debt settlement, loan replacement and interest rate reduction. In the first half of the year, the Company completed the acquisition and smooth hand-over of Xinmi Project, while proactively pursuing multiple acquisition targets; based on the Guangdong-Hong-Kong-Macao Greater Bay Area, the Company prudently implemented the “Going Global” strategy. In respect of overseas businesses, the Company was shortlisted on the qualified supplier whitelist for the second batch of waste-to- energy projects in Indonesia, and solid progress was made on the follow-up work after being shortlisted as a supplier for the waste-to-energy project backed by Indonesia’s sovereign fund, with the bidding for overseas projects advancing in an orderly manner. Besides, the Company won the bid for the entrusted operation project of domestic waste-to-energy plant and fly ash landfill site in Tiantai County, Taizhou, Zhejiang Province in June, which marks an innovative breakthrough in the light asset operation mode and enables the external export of its operational capabilities.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202632 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) II. Focus on technological innovation, development of new quality productive forces Beijing Environmental Protection and Intelligent Technology Research Branch was established to comprehensively enhance the Company’s technological innovation capability, core competitiveness and leadership in the industry, providing robust technical support for the implementation of medium-and long-term strategies. The Company comprehensively advanced the digital and intelligent construction of its projects under operation and carried out digital and intelligent technical optimisation for the whole incineration process. Haining Expansion Project and Wuhan Project passed acceptance of digital and intelligent optimisation for the whole incineration process; the intelligent upgrading project for the waste crane of Tongzhou Company smoothly passed acceptance and the digital and intelligent technical renovation for wastewater treatment completed pilot verification at Tongzhou Company. Notable outcomes were delivered in “minor-scale technical renovation” and “micro-innovation”. Almost all waste-to-energy plants have completed trials on calcium carbonate direct injection technology, and the unit consumption of hydrated lime and the fly ash generation rate decreased; the sludge direct-injection technical renovation project of Haining Expansion Company passed acceptance; the ultra-low-temperature catalysts were applied in 3 projects. III. Improvement of governance mechanism to further enhance standardized operation The Company completed the draft for solicitation of opinions on the “15th Five-Year” Development Plan, basically establishing the overall strategic framework for development in the next five years; it further advanced various measures of comprehensive reform pilot for state-owned enterprise and completed revision of institutional documents including the Articles of Association; through improvement of legal and compliance management system, pending cases were fully resolved, and the Company completed self- inspection and rectification for 37 operational systems; digital governance capabilities were continuously improved by launching the “Director Signature” electronic signature system, digital procurement platform and electronic seal system, etc. The Company attaches great importance to ESG management, strictly complies with the regulatory requirements of the places where the A shares and H shares are listed, and has completed the compilation and disclosure of the ESG report with high standards. Its Wind ESG rating has been upgraded from BBB to Grade A, which indicates market recognition of its governance. IV. Focus on “key minorities” to strengthen responsibility for duties performance The Company further deepened the reform of the remuneration and performance system, launched remuneration survey and performance system design, and strengthened the linkage mechanism between salary and performance, to accelerate the improvement of talent aggregation capability. The Remuneration Management Measures for Directors and Senior Management was formulated to implement the payment recovery mechanism; annual assessment responsibility letters were signed with senior management; and independent Directors were organized to attend relevant trainings arranged by the Shanghai Stock Exchange.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 33 III. MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) V. Consistent cash dividends to share the fruits of development with shareholders The Company attaches great importance to cash returns for investors, abides by its commitment on the cash-dividend payout ratio for 2024–2026 and stabilises investors’ return expectations. In 2025, the Company distributed cash dividends in a total amount of RMB454 million, accounting for 73.53% of the net profit attributable to shareholders of the Company in 2025. The figure is well above the committed minimum threshold, enabling shareholders to practically share development achievements. VI. Strengthened communications with investors to boost market recognition During the Reporting Period, the Company maintained close exchanges with investors through various forms. Two performance briefings were convened, and live streaming was adopted for the first time to raise investors’ participation and sense of recognition; multiple securities firms issued research reports on “Buy” or “Overweight”, and nearly 1,000 media coverage and publicity articles were released. The recognition in the capital market and brand influence kept improving. Overall, the Company soundly implemented the action plan for “Quality Improvement, Efficiency Enhancement and Focus on Returns” in the first half of the year and achieved anticipated outcomes. However, certain aspects call for continuous improvement. For instance, overseas projects have not been implemented. The Company will keep complying with all requirements of the initiatives of the special action for “Quality Improvement, Efficiency Enhancement and Focus on Returns”, and steadily lift operating quality, corporate governance and shareholder returns, striving for high-quality achievement of the full-year targets of the “Quality Improvement, Efficiency Enhancement and Focus on Returns”.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202634 IV. CORPORATE GOVERNANCE , ENVIRONMENT AND SOCIETY I. CHANGES OF DIRECTORS AND SENIOR MANAGEMENT OF THE COMPANY ✓ Applicable ½ Not applicable Name Position Change Reasons for the change Explanation on reasons for the change Hu Shengyong Director Resignation Others See explanations below for details Hu Shengyong Employee Director Election Others Zhao Zhixiong Director Resignation Retirement Liu Lin Deputy general manager Appointment Job transfer Huang Jianzhong Deputy general manager Resignation Job transfer Hao Jingli Deputy general manager Resignation Job transfer Zhang Wei Chief engineer Resignation Job transfer Explanation on changes in Directors and senior management of the Company ✓ Applicable ½ Not applicable Due to adjustment to the corporate governance structure, Mr. Hu Shengyong resigned as a non-independent Director and a member of the Nomination Committee of the Board, with effect from 17 April 2026; on the same date, the Company convened an employee representative meeting at which Mr. Hu Shengyong was elected as an employee Director of the fifth session of the Board of the Company. For details, please refer to the Announcement on Resignation of Director and Election of Employee Director (Announcement No.: Lin 2026-015) as disclosed on the website of the SSE and the announcement dated 17 April 2026 as disclosed on the Stock Exchange. Mr. Zhao Zhixiong resigned as a non-executive Director and a member of the Audit and Risk Management Committee of the Company as he has reached age of retirement with effect from 18 May 2026. For details, please refer to the Announcement on Resignation of Director (Announcement No.: Lin 2026–021) as disclosed on the website of the SSE and the announcement dated 18 May 2026 as disclosed on the Stock Exchange. In accordance with Rule 3.21 of the Listing Rules, the Audit and Risk Management Committee must comprise a minimum of three members. Following the resignation of Mr. Zhao Zhixiong, the number of members of the Audit and Risk Management Committee decreased from three to two, falling short of the minimum number requirement prescribed under Rule 3.21 of the Listing Rules. The Company identified a suitable candidate and passed the resolution regarding the appointment of Mr. Hu Yong as a member of the Audit and Risk Management Committee at the 24th meeting of the fifth session of the Board, thereby fulfilling the requirements under Rules 3.21 and 3.23 of the Listing Rules. On 10 June 2026, the Company convened the 24th meeting of the fifth session of the Board, at which the Proposal on Appointment of Deputy General Manager was considered and approved, pursuant to which Mr. Liu Lin was appointed as a deputy general manager; to rejuvenate the management team, Mr. Huang Jianzhong and Mr. Hao Jingli, being deputy general managers, and Mr. Zhang Wei, the chief engineer, resigned as deputy general managers and chief engineer, respectively, as they approached the retirement age. They will remain employed by the Company and undertake special work assigned by the Company. For details, please refer to the Announcement on Changes in Senior Management (Announcement No.: Lin 2026–030) as disclosed on the website of the SSE and the announcement dated 10 June 2026 as disclosed on the Stock Exchange. On 10 June 2026, pursuant to the Proposal on Adjustment to the Composition of the Special Committees of the Board as considered and approved at the 24th Meeting of the fifth session of the Board of the Company, Mr. Hu Shengyong was approved to serve as a member of the Nomination Committee; and Mr. Hu Yong was approved to serve as a member of the Audit and Risk Management Committee.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 35 IV. CORPORATE GOVERNANCE, ENVIRONMENT AND SOCIETY (CONTINUED) Save as disclosed above, during the Reporting Period and up to the date of this interim report, there were no changes in information that was required to be disclosed by the Directors and general manager (chief executive) pursuant to paragraphs (a) to (e) and (g) of Rule 13.51(2) as well as Rule 13.51(B) of the Stock Exchange Listing Rules. II. PROPOSAL OF PROFIT DISTRIBUTION OR CONVERSION OF CAPITAL RESERVE Proposal of profit distribution or conversion of capital reserve to share capital for the half of the year Any distribution or capital increase Yes Number of bonus shares for every 10 shares (share) 0 Dividends for every 10 shares (RMB) (Tax inclusive) 1.1 Reserve to share capital for every 10 Shares (share) 0 Details of proposal of profit distribution or conversion of capital reserve In accordance with the Listed Companies Regulatory Guidance No. 3 – Cash Dividends Distribution by Listed Companies, the Self-Regulatory Guidelines for Listed Companies on the Shanghai Stock Exchange No. 1 – Standardized Operation, the Articles of Association and other relevant provisions, the Company has formulated the proposal of profit distribution for the first half of 2026 as follows: it is proposed to distribute a cash dividend of RMB0.11 (before tax) for every share to all shareholders based on the aggregate share capital on the share- based equity registration date for the first half of 2026. The total cash dividends under profit distribution are expected to be RMB157 million. The Company will not convert capital reserve into share capital and did not issue bonus shares for the profit distribution. The profit distribution plan gives full consideration to the Company’s actual operating conditions, cash flow status, future development needs, shareholder returns and other factors, and is in line with laws and regulations and other relevant normative documents and the Articles of Association, without prejudice to the rights of shareholders, in particular minority shareholders. The profit distribution plan was considered and approved at the 26th meeting of the fifth session of the Board of the Company held on 28 August 2026, and is subject to consideration at the general meeting of the Company. The notice of the general meeting will be dispatched in accordance with the Articles of Association and the Stock Exchange Listing Rules when appropriate. The cash dividends for the first half of 2026 are expected to be paid before 11 December 2026. In order to determine the shareholders entitled to the interim dividend for 2026, the register of holders of H shares of the Company will be closed from Monday, 2 November 2026 to Friday, 6 November 2026, both days inclusive, during which no transfer of shares will be registered, the record date will be Friday, 6 November 2026. The shareholders whose names appear on the register of members of the Company at the close of business on Friday, 6 November 2026 will be entitled to the interim dividend for 2026 (subject to approval by shareholders at the general meeting). In order to qualify for the entitlement to the interim dividend for 2026 (subject to approval by shareholders at the general meeting), all properly completed transfer documents accompanied with relevant share certificates must be lodged with the Company’s H Share registrar, Tricor Investor Services Limited at 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong no later than 4:30 p.m. (Hong Kong time) on 30 October 2026, being the last share registration date.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202636 IV. CORPORATE GOVERNANCE, ENVIRONMENT AND SOCIETY (CONTINUED) Dividend on domestic shares of the Company will be paid in Renminbi while dividend on H shares will be paid in Hong Kong dollars. The exchange rate shall be the average central parity rate of the applicable foreign exchange rate announced by the People’s Bank of China for the seven days before and including the date of the general meeting. Pursuant to the PRC Individual Income Tax Law (), the Implementation Regulations of the PRC Individual Income Tax Law (ૢԷ), the Announcement of the State Administration of Taxation in relation to the Administrative Measures on Preferential Treatment Entitled by Non-residents under Tax Treaties (SAT Announcement [2019] No. 35) (͏ॶɛԮ ਕᐼ҅ʮѓ2019ϋୋ35), the Notice of the State Administration of Taxation on the Questions Concerning the Levy and Administration of Individual Income Tax After the Repeal of Guo Shui Fa [1993] No. 045 (Guo Shui Han [2011] No. 348) (೯[1993]045ה Ռ[2011]348), other relevant laws and regulations and other regulatory documents, the Company shall, as a withholding agent, withhold and pay individual income tax for the individual holders of H shares in respect of the dividend to be distributed to them. However, the individual holders of H shares may be entitled to certain tax preferential treatments pursuant to the tax treaties between the PRC and the countries (regions) in which the individual holders of H shares are domiciled and the tax arrangements between Mainland China and Hong Kong (or Macau). For the individual holders of H shares in general, the Company will withhold and pay individual income tax at the rate of 10% on behalf of the individual holders of H shares in the distribution of the dividend. However, the tax rates applicable to individual holders of H shares overseas may vary depending on the tax treaties between the PRC and the countries (regions) in which the individual holders of H shares are domiciled, and the Company will withhold and pay individual income tax on behalf of the individual holders of H shares in the distribution of the dividend accordingly. For non-resident enterprise holders of H shares, i.e., any shareholders who hold the Company’s shares in the name of non-individual shareholders, including but not limited to HKSCC Nominee Limited, other nominees, trustees, or holders of H shares registered in the name of other groups and organisations, the Company will withhold and pay the enterprise income tax at the tax rate of 10% for such holders of H shares pursuant to the Notice of the State Administration of Taxation on the Issues Concerning Withholding the Enterprises Income Tax on the Dividends Paid by Chinese Resident Enterprises to H Share Holders Who Are Overseas Non-resident Enterprises (Guo Shui Han [2008] No. 897) (͏ΆุΣྤ̮ Hٰ Ռ [2008]897). Should the holders of H shares of the Company have any doubt in relation to the aforesaid arrangements, they are recommended to consult their tax advisors for relevant tax impact in Mainland China, Hong Kong and other countries (regions) on the possession and disposal of the H shares of the Company. The Company assumes no responsibility and disclaims all liabilities whatsoever in relation to the tax status or tax treatment of the individual holders of H shares and for any claims arising from any delay in or inaccurate determination of the tax status or tax treatment of the individual holders of H shares or any disputes over the withholding mechanism or arrangements.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 37 IV. CORPORATE GOVERNANCE, ENVIRONMENT AND SOCIETY (CONTINUED) III. EQUITY INCENTIVE PLAN, EMPLOYEE SHAREHOLDING PLAN OR OTHER EMPLOYEE INCENTIVE MEASURES OF THE COMPANY AND THEIR IMPACTS (I) Equity incentive matters which have been published in temporary announcements and without further progress or changes ✓ Applicable ½ Not applicable Overview Search index In October 2025, the Company received the Approval on the Implementation of Share Incentive by Dynagreen Environmental Protection Group Co., Ltd. (Jing Guo Zi [2025] No. 61) issued by the State-owned Assets Supervision and Administration Commission of the People’s Government of Beijing Municipality and forwarded by BSAM, the controlling shareholder of the Company, pursuant to which Beijing SASAC approved the Company’s implementation of the equity incentive scheme in principle. For details, please refer to the relevant announcements as disclosed by the Company on the website of the SSE (www.sse.com.cn) on 11 October 2025 and on the website of the Stock Exchange (www.hkexnews.hk) on 10 October 2025. On 28 October 2025, the Company convened the sixteenth meeting of the fifth session of the Board, at which the Resolution in relation to Updates on the Documents Related to the Restricted A Share Incentive Scheme was considered and approved. For details, please refer to the relevant announcements as disclosed by the Company on the website of the SSE (www.sse.com.cn) on 29 October 2025 and on the website of the Stock Exchange (www.hkexnews.hk) on 28 October 2025. On 19 November 2025, the Company convened the 2025 third extraordinary general meeting, at which the Resolution on the Restricted A Share Incentive Scheme (Updated Draft) of the Company and the Summary Thereof, the Resolution on the Administrative Measures for the Restricted A Share Incentive Scheme (Updated Draft) of the Company, the Resolution on the Administrative Measures for the Implementation and Appraisal of the Restricted A Share Incentive Scheme of the Company, and the Resolution on Authorization to the Board to Handle the Relevant Matters Related to the Restricted Share Incentive Scheme of the Company were considered and approved. For details, please refer to the relevant announcements as disclosed by the Company on the website of the SSE (www.sse.com.cn) on 20 November 2025 and on the website of the Stock Exchange (www.hkexnews.hk) on 19 November 2025. On 2 December 2025, the Company convened the seventeenth meeting of the fifth session of the Board, at which the Resolution on Adjustments to Matters in Relation to the Restricted A Share Incentive Scheme and First Grant of restricted shares to Incentive Participants and the Resolution on Grant of Reserved (First Batch) restricted shares to Incentive Participants were considered and approved. For details, please refer to the relevant announcements as disclosed by the Company on the website of the SSE (www.sse.com.cn) on 3 December 2025 and on the website of the Stock Exchange (www.hkexnews.hk) on 2 December 2025.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202638 IV. CORPORATE GOVERNANCE, ENVIRONMENT AND SOCIETY (CONTINUED) Overview Search index On 24 December 2025, the Company received the Certificate of Changes in Registration of Securities issued by the Shanghai Branch of China Securities Depository and Clearing Corporation Limited, pursuant to which the registration of the restricted shares granted under the restricted A share incentive scheme was completed with the Shanghai Branch of China Securities Depository and Clearing Corporation Limited on 23 December 2025. The restricted shares granted under the first grant and the reserved grant (first batch) under the restricted share incentive scheme totalled 37,130,000 shares, including 35,770,000 restricted shares under the first grant and 1,360,000 restricted shares under the reserved grant (first batch). For details, please refer to the relevant announcements as disclosed by the Company on the website of the SSE (www.sse.com.cn) on 25 December 2025 and on the website of the Stock Exchange (www.hkexnews.hk) on 24 December 2025. On 19 May 2026, the Company convened the 23rd meeting of the fifth session of the Board, at which the Resolution on Repurchase and Cancellation of Part of the Restricted Shares was considered and approved. For details, please refer to the relevant announcements as disclosed by the Company on the website of the SSE (www.sse.com.cn) on 20 May 2026 and on the website of the Stock Exchange (www.hkexnews.hk) on 19 May 2026. On 10 June 2026, the Company convened the 2025 annual general meeting, at which the Resolution on Repurchase and Cancellation of Part of the Restricted Shares was considered and approved. For details, please refer to the relevant announcements as disclosed by the Company on the website of the SSE (www.sse.com.cn) on 11 June 2026 and on the website of the Stock Exchange (www.hkexnews.hk) on 10 June 2026. The summary of the 2025 restricted A share incentive scheme of the Company is as follows: 1. Purpose of the Incentive Scheme In order to further establish and improve the long-term incentive mechanism of the Company, attract and retain talented individuals, fully mobilize the enthusiasm of the Directors, senior management, and core managerial, technical and business personnel of the Company, and effectively bind the interests of the Shareholders, the Company and individuals of core teams together, making all parties attend to the long-term development of the Company, on the premise of fully protecting the interests of the Shareholders and on the principle of income equivalent to contribution, the Incentive Scheme is formulated in accordance with the Company Law, the Securities Law, the Administrative Measures, the Trial Measures, the Regulating Notice, the Guiding Opinions, the Document No. 178 and other relevant laws, regulations and normative documents as well as the Articles of Association.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 39 IV. CORPORATE GOVERNANCE, ENVIRONMENT AND SOCIETY (CONTINUED) 2. Scope of incentive participants The Incentive Participants under the Incentive Scheme include directors, senior management, core managerial, technical and business personnel of the Company (including branches and controlled subsidiaries, the same below), excluding external directors (including independent directors). The Incentive Participants involved in the Incentive Scheme exclude external directors (including independent directors), as well as the shareholders individually or in aggregate holding 5% or more of the shares of the Company or the de facto controller and their spouses, parents or children. If the Incentive Participants are directors, general managers, chief executives of the Company, or any of their respective associates, such grant under the Incentive Scheme must be approved by the independent non-executive directors of the Company and comply with the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The directors and senior management among the Incentive Participants must be elected by the general meeting or appointed by the board of the Company. All Incentive Participants must establish labor relationship with the Company or its branches and controlled subsidiaries during the Validity Period of the Scheme. 3. Number of underlying shares and total number of shares available for issue under the scheme The number of underlying shares under the Company’s restricted A share incentive scheme is 40.35 million restricted A shares, representing approximately 2.82% of the issued shares (excluding treasury shares) as at the date of the interim report. As at the date of the interim report, the total number of A shares available for issue under the restricted A share incentive scheme is 740,000 ordinary A shares, representing approximately 0.05% of the issued shares (excluding treasury shares) as at the date of the interim report. 4. Maximum entitlement per participant The number of A shares granted to any Incentive Participant through all valid equity incentive schemes does not exceed 1% of total share capital (excluding the treasury shares, if any) of the Company. 5. Lock-up Period The Lock-up Period of the restricted shares granted under the Incentive Scheme shall be 24 months, 36 months and 48 months respectively from the date of registration of the equity under the grant. The restricted shares granted to the Incentive Participants under the Incentive Scheme shall not be transferred, used for guarantee or repayment of debts during the Lock-up Period. Upon expiry of the Lock-up Period, the Company shall proceed with the unlocking for the Incentive Participants who satisfy the Unlocking Conditions, and the restricted shares held by the Incentive Participants who do not satisfy the Unlocking Conditions shall be repurchased and cancelled by the Company.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202640 IV. CORPORATE GOVERNANCE, ENVIRONMENT AND SOCIETY (CONTINUED) 6. Unlocking Periods The grant date of the first grant and reserved grant (first batch) under the Restricted A Share Incentive Scheme of the Company is 2 December 2025; the registration date is 23 December 2025. The unlocking schedule for the Restricted A Share Incentive Scheme of the Company is as follows: Unlocking arrangement Unlocking schedule Proportion of the number of shares unlocked to the number of shares granted First Unlocking Period of the first grant and the reserved grant Commencing from the first trading day after expiry of the 24-month period from the date of completion of registration of the restricted shares and ending on the last trading day of the 36-month period from the date of completion of registration of the restricted shares. 33% Second Unlocking Period of the first grant and the reserved grant Commencing from the first trading day after expiry of the 36-month period from the date of completion of registration of the restricted shares and ending on the last trading day of the 48-month period from the date of completion of registration of the restricted shares. 33% Third Unlocking Period of the first grant and the reserved grant Commencing from the first trading day after expiry of the 48-month period from the date of completion of registration of the restricted shares and ending on the last trading day of the 60-month period from the date of completion of registration of the restricted shares. 34% 7. Grant Price The initial grant price of the restricted shares shall be RMB2.95 per share, which means that upon fulfilment of the grant conditions, each Incentive Participant is entitled to purchase the restricted A shares of the Company issued to the Incentive Participant by the Company at the price of RMB2.95 per share. The Grant Price of the restricted shares under the reserved grant (first batch) shall be RMB3.56 per share, which means that upon fulfilment of the grant conditions, each Incentive Participant is entitled to purchase the restricted A shares of the Company issued to the Incentive Participant by the Company at the price of RMB3.56 per share.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 41 IV. CORPORATE GOVERNANCE, ENVIRONMENT AND SOCIETY (CONTINUED) 8. Basis of Determination of the Grant Prices Basis of determination of the initial grant price of the restricted shares The pricing benchmark date of the initial Grant Price of the restricted shares is the date of announcement of the draft of the Scheme. The Grant Price shall not be less than the nominal value of the shares and shall not be less than the higher of the following prices: (1) 50% of the average trading price (total trading amount on the preceding trading day/total trading volume on the preceding trading day) of the shares of the Company on the trading day preceding the date of the announcement of the draft of the Scheme; (2) One of the following prices: Ǻ 50% of average trading price (total trading amount for the last 20 trading days/total trading volume for the last 20 trading days) of the underlying shares of the Company for the 20 trading days preceding the date of the announcement of the draft of the Scheme; ǻ 50% of average trading price (total trading amount for the last 60 trading days/total trading volume for the last 60 trading days) of the underlying shares of the Company for the 60 trading days preceding the date of the announcement of the draft of the Scheme; Ǽ 50% of average trading price (total trading amount for the last 120 trading days/total trading volume for the last 120 trading days) of the underlying shares of the Company for the 120 trading days preceding the date of the announcement of the draft of the Scheme. (3) If the fair market price is less than the net asset value per share, the Grant Price shall not be less than 60% of the fair market price. Basis of determination of the reserved Grant Price of the restricted shares under the Incentive Scheme Prior to each grant of the reserved restricted shares, a board meeting shall be convened to consider and approve the relevant resolution. The reserved Grant Price shall be determined according to principle of fair market price, and shall not be less than the nominal value of the shares and shall not be less than the higher of the following prices: (1) 50% of the average trading price of the shares of the Company on the trading day preceding the date of the announcement of the board resolution on the grant of reserved restricted shares; (2) One of the following prices: Ǻ 50% of the average trading price of the Company’s underlying shares for the 20 trading days preceding the date of the announcement of the board resolution on the grant of reserved restricted shares (total trading amount for the last 20 trading days/total trading volume for the last 20 trading days); ǻ 50% of the average trading price of the Company’s underlying shares for the 60 trading days preceding the date of the announcement of the board resolution on the grant of reserved restricted shares (total trading amount for the last 60 trading days/total trading volume for the last 60 trading days);
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202642 IV. CORPORATE GOVERNANCE, ENVIRONMENT AND SOCIETY (CONTINUED) Ǽ 50% of the average trading price of the Company’s underlying shares for the 120 trading days preceding the date of the announcement of the board resolution on the grant of reserved restricted shares (total trading amount for the last 120 trading days/total trading volume for the last 120 trading days); (3) If the fair market price is less than the net asset value per share, the Grant Price shall not be less than 60% of the fair market price. 9. Remaining Validity Period of the Scheme The Validity Period of the Incentive Scheme shall commence from the date on which the Scheme is approved by the general meeting of the Company and end on the date on which all the restricted shares granted to the Incentive Participants are unlocked or repurchased and cancelled, which shall not exceed 72 months. 10. Performance appraisal targets (1) Performance appraisal requirements at company level The appraisal year for unlocking of the Incentive Scheme covers three accounting years from 2026 to 2028, and an appraisal will be carried out every accounting year. The performance appraisal for unlocking of the restricted shares granted under the Scheme is shown in the following table: Unlocking Period Performance appraisal trigger value Performance appraisal target value The first Unlocking Period under the first grant and reserved grant 1. Based on the net profit in 2023, the growth rate of net profit in 2026 shall not be less than 80% of the target value, i.e. not less than 12%, and the net profit shall not be less than RMB692 million; 2. The return on equity in 2026 shall not be less than 80% of the target value; The first two indicators are not lower than the 75th percentile of the benchmarked enterprises; 3. Net cash flows from operating activities in 2026 shall not be less than 80% of the target value; 4. The steam supply volume in 2026 shall not be less than 80% of the target value; 5. In 2026, the number of digital and intelligent technology application projects will increase by one. 1. Based on the net profit in 2023, the growth rate of net profit in 2026 shall not be less than 15%, i.e. the net profit shall not be less than RMB711 million; 2. The return on equity in 2026 shall not be less than 8.2%; The first two indicators are not lower than the 75th percentile of the benchmarked enterprises; 3. Net cash flows from operating activities in 2026 shall not be less than RMB1,144 million; 4. The steam supply volume in 2026 shall not be less than 492,900 tons; 5. In 2026, the number of digital and intelligent technology application projects will increase by one.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 43 IV. CORPORATE GOVERNANCE, ENVIRONMENT AND SOCIETY (CONTINUED) Unlocking Period Performance appraisal trigger value Performance appraisal target value The second Unlocking Period under the first grant and reserved grant 1. Based on the net profit in 2023, the growth rate of net profit in 2027 shall not be less than 80% of the target value, i.e. not less than 16%, and the net profit shall not be less than RMB717 million; 2. The return on equity in 2027 shall not be less than 80% of the target value; The first two indicators are not lower than the 75th percentile of the benchmarked enterprises; 3. Net cash flows from operating activities in 2027 shall not be less than 80% of the target value; 4. The steam supply volume in 2027 shall not be less than 80% of the target value; 5. In 2027, the number of digital and intelligent technology application projects will increase by two. 1. Based on the net profit in 2023, the growth rate of net profit in 2027 shall not be less than 20%, i.e. the net profit shall not be less than RMB742 million; 2. The return on equity in 2027 shall not be less than 8.2%; The first two indicators are not lower than the 75th percentile of the benchmarked enterprises; 3. Net cash flows from operating activities in 2027 shall not be less than RMB1,193 million; 4. The steam supply volume in 2027 shall not be less than 514,300 tons; 5. In 2027, the number of digital and intelligent technology application projects will increase by two. The third Unlocking Period under the first grant and reserved grant 1. Based on the net profit in 2023, the growth rate of net profit in 2028 shall not be less than 80% of the target value, i.e. not less than 20%, and the net profit shall not be less than RMB742 million; 2. The return on equity in 2028 shall not be less than 80% of the target value; The first two indicators are not lower than the 75th percentile of the benchmarked enterprises; 3. Net cash flows from operating activities in 2028 shall not be less than 80% of the target value; 4. The steam supply volume in 2028 shall not be less than 80% of the target value; 5. In 2028, the number of digital and intelligent technology application projects will increase by two. 1. Based on the net profit in 2023, the growth rate of net profit in 2028 shall not be less than 25%, i.e. the net profit shall not be less than RMB773 million; 2. The return on equity in 2028 shall not be less than 8.2%; The first two indicators are not lower than the 75th percentile of the benchmarked enterprises; 3. Net cash flows from operating activities in 2028 shall not be less than RMB1,242 million; 4. The steam supply volume in 2028 shall not be less than 535,800 tons; 5. In 2028, the number of digital and intelligent technology application projects will increase by two.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202644 IV. CORPORATE GOVERNANCE, ENVIRONMENT AND SOCIETY (CONTINUED) Among them: Ǻ Net profit refers to the net profit excluding non-recurring gain and loss attributable to the shareholders of the listed company, and return on equity refers to the return on net assets excluding non-recurring gain and loss attributable to the shareholders of the listed company, the same below; ǻ Growth rate of net profit = (net profit excluding non-recurring gain and loss attributable to the shareholders of the listed company in the current year/net profit excluding non-recurring gain and loss attributable to the shareholders of the listed company in 2023–1) * 100%, the same below; Ǽ Return on equity (ROE) = net profit excluding non-recurring gain and loss attributable to the shareholders of the listed company in the current year/[(net assets attributable to the shareholders of the listed company at the beginning of the period + net assets attributable to the shareholders of the listed company at the end of the period)/2] ×100%, the same below; ǽ Net cash flows from operating activities are based on the data of “net cash flows from operating activities” in the annual consolidated cash flows statement of the Company; Ǿ Digital and intelligent technology application projects refer to the intelligent management of the waste incineration system using information technology, digitalization and artificial intelligence technology. By conducting big data analysis, machine deep learning and artificial intelligence management on the whole process of waste incineration, including waste storage fermentation, waste incineration and flue gas treatment, the goals of improving power generation efficiency and labor efficiency and reducing the consumption of environmental consumables and auxiliary fuels are achieved. The completion of the application project will be marked by passing the third-party appraisal. During the Validity Period of the equity incentive scheme, in case of additional issuance, allotment of shares and convertible debentures into shares and other matters (excluding the implementation of profit distribution of the Company) that would result in a change in the net assets of the Company, the change in net assets and the corresponding amount of income arising therefrom (if the corresponding amount of income cannot be accurately calculated, it can be calculated by multiplying the actual financing amount after deducting the financing cost by the interest rate of the national debts of the same term) shall be excluded when conducting an appraisal. During the Validity Period of the equity incentive scheme, if the Company adjusts its accounting policies, the pre-adjustment caliber will be used during the appraisal.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 45 IV. CORPORATE GOVERNANCE, ENVIRONMENT AND SOCIETY (CONTINUED) The incentive costs incurred from this equity incentive will be charged to the administrative expenses of the Company. The performance appraisal results at company level and their corresponding unlocking ratios at company level in the current period are shown in the following table: Performance appraisal results at company level Unlocking ratios at company level in the current period Meeting performance appraisal target value 100% Meeting performance appraisal trigger value, but not meeting performance appraisal target value 80% Not meeting performance appraisal trigger value 0% If one or more of the above five performance indicators of the Company in the appraisal year fail to meet the performance appraisal trigger value, it shall be deemed that the Company does not meet the performance appraisal trigger value in the current period, and the unlocking ratios at company level in the current period shall be 0%; if only some of the above five performance indicators of the Company in the appraisal year meet the performance appraisal target value, and one or more of the indicators fail to meet the performance appraisal target value, but all meet the performance appraisal trigger value, it shall be deemed that the Company does not meet the performance appraisal target value in the current period, and the unlocking ratios at company level in the current period shall be 80%; if all of the above five performance indicators of the Company in the appraisal year meet the performance appraisal target value, the unlocking ratios at company level in the current period shall be 100%. Restricted Shares that fail to meet the Unlocking Conditions in the current period shall be repurchased and cancelled by the Company in accordance with the Incentive Scheme at the lower of the Grant Price and the stock market price at the time of repurchase. (2) Performance appraisal requirements at individual level The appraisal year for unlocking of the Incentive Scheme covers three accounting years from 2026 to 2028, and the appraisal of Incentive Participants at individual level shall be organized and implemented in accordance with the Company’s current relevant provisions on remuneration and appraisal, based on the appraisal standards for the positions of the Incentive Participants. The Company will conduct appraisal at individual level each fiscal year in accordance with the Appraisal Management Measures for Implementation of the Restricted Share Incentive Scheme and the internal performance assessment mechanism of the Company. The unlocking ratios of Incentive Participants at individual level are determined based on the results of individual performance appraisal. The classification of grades and their corresponding unlocking ratios at individual level are shown in the following table: Grade Competent and above Basic competent Incompetent Unlocking ratios 100% 50% 0%
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202646 IV. CORPORATE GOVERNANCE, ENVIRONMENT AND SOCIETY (CONTINUED) The actual unlocking amounts held by the individuals in the current year = the unlocking ratios at company level in the current year ×the unlocking ratios at individual level in the current year ×the planned individual unlocking ratios in thecurrent year. If the Unlocking Conditions in the current period are not satisfied due to the failure to pass the performance appraisal at company level or individual level, no corresponding restricted shares shall be deferred to the next period and be unlocked, and will be repurchased and cancelled by the Company in accordance with the Incentive Scheme at the lower of the Grant Price and the stock market price at the time of repurchase. 11. Fair value of restricted shares under the Restricted A Share Incentive Scheme on the grant date and accounting standards and policies adopted in 2025 In accordance with the requirements of the Accounting Standards for Business Enterprises No. 11 – Share-based Payments, at each balance sheet date within the Lock-up Period, the Company shall revise the number of the restricted shares which are expected to be unlocked according to the change in the latest available number of persons eligible to unlock the restricted shares, completion of the performance targets and other subsequent information, and include the services acquired during the current period in relevant costs or expenses and capital reserve at the fair value of the restricted shares on the grant date. According to the preliminary calculation, the impact of the restricted shares under the first grant in the Scheme on the accounting costs incurred in each period are as follows: Unit: RMB0’000 Number of Restricted Shares granted (0’000) Total expenses estimated to be amortised 2025 2026 2027 2028 2029 3,713 14,694.78 426.63 5,290.13 5,094.59 2,735.13 1,148.33 Notes: (1) The above result does not represent the final accounting cost. The accounting cost is related not only to the grant date, Grant Price and number of the restricted shares granted, but also to the number of equity interests that actually become valid and invalid. Shareholders are reminded to pay attention to the possible dilutive effects; (2) The final impact of the above cost amortization forecast on the Company’s operating results shall be subject to the annual audit report issued by the accounting firm; (3) Any difference between the figures shown as total and the sum of the corresponding figures above is due to rounding.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 47 IV. CORPORATE GOVERNANCE, ENVIRONMENT AND SOCIETY (CONTINUED) (II) Incentives which have not been published in temporary announcements or with further progress Equity incentive ½ Applicable ✓ Not applicable Other explanation ½ Applicable ✓ Not applicable Employee shareholding plan ½ Applicable ✓ Not applicable Other incentive measures ½ Applicable ✓ Not applicable IV. GRANT OF EQUITY INCENTIVE Unit: share Name Position Number of restricted shares held at the beginning of the year Number of restricted shares granted during the Reporting Period Grant price of restricted shares (RMB) Unlocked shares Locked shares Number of restricted shares held at the end of the period Grant date Market price at the end of the Reporting Period (RMB) Closing price of shares before the grant date (RMB) Cheng Suning Chairman 1,000,000 0 3.56 0 1,000,000 1,000,000 2 December 2025 6.97 6.96 Hu Shengyong Employee Director 650,000 0 2.95 0 650,000 650,000 2 December 2025 6.97 6.96 Xi Qiang Deputy General Manager 650,000 0 2.95 0 650,000 650,000 2 December 2025 6.97 6.96 Zhang Yong Deputy General Manager 650,000 0 2.95 0 650,000 650,000 2 December 2025 6.97 6.96 Zhu Shuguang Deputy General Manager and Secretary to the Board 650,000 0 2.95 0 650,000 650,000 2 December 2025 6.97 6.96 Yi Zhiyong Chief Financial Officer 650,000 0 2.95 0 650,000 650,000 2 December 2025 6.97 6.96 Liu Lin Deputy General Manager 650,000 0 2.95 0 650,000 650,000 2 December 2025 6.97 6.96 Pi Siwei General counsel and security director 650,000 0 2.95 0 650,000 650,000 2 December 2025 6.97 6.96 Hao Jingli Consultant 650,000 0 2.95 0 650,000 650,000 2 December 2025 6.97 6.96 Huang Jianzhong Consultant 650,000 0 2.95 0 650,000 650,000 2 December 2025 6.97 6.96 Zhang Wei Consultant 650,000 0 2.95 0 650,000 650,000 2 December 2025 6.97 6.96 Total number of other persons under the first grant (178 people) Core managerial, technical and business personnel 29,270,000 0 2.95 0 29,270,000 29,270,000 2 December 2025 6.97 6.96 Total number of other persons under the reserved grant (first batch) (2 people) Core managerial, technical and business personnel 360,000 0 3.56 0 360,000 360,000 2 December 2025 6.97 6.96 Total / 37,130,000 0 / 0 37,130,000 37,130,000 / / / Note: According to the provisions of the Incentive Scheme, if the unlocking conditions are met, the granted restricted shares w ill be unlocked commencing on the last trading day after the expiry of 24th month, 36th month and 48th month period after the date of completio n of registration of the restricted shares, at rates of 33%, 33%, and 34% respectively.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202648 IV. CORPORATE GOVERNANCE, ENVIRONMENT AND SOCIETY (CONTINUED) As at 1 January 2025, the matters relating to the Company’s restricted A share incentive scheme had been considered and approved at the fifth meeting of the fifth session of the Board on 20 December 2024, and had not yet been considered at the general meeting of the Company. As at 1 January 2025, the number of shares available for grant under the scheme by the Company was 0; as at 31 December 2025, under the Company’s restricted A share incentive scheme, the total number of remaining restricted shares available for grant by the Company was 740,000 ordinary A shares, representing approximately 0.05% of the total issued shares of the Company as at 31 December 2025. As at 1 January 2026, under the Company’s restricted A share incentive scheme, the total number of remaining restricted shares available for grant by the Company was 740,000 ordinary A shares, representing approximately 0.05% of the total issued shares of the Company as at 1 January 2026; as at 30 June 2026, under the Company’s restricted A share incentive scheme, the total number of remaining restricted shares available for grant by the Company was 740,000 ordinary A shares, representing approximately 0.05% of the total issued shares of the Company as at 30 June 2026. As one participant has terminated the labour relationship with the Company due to death and is therefore no longer eligible as an incentive participant, the Company proposes to repurchase and cancel all unlocked restricted shares granted to such incentive participant in a total amount of 180,000 shares. The matter was considered and approved at the 23rd meeting of the fifth session of the Board held on 19 May 2026, and considered and approved at 2025 annual general meeting held on 10 June 2026. During the Reporting Period, the number of restricted shares proposed to be repurchased and cancelled under the restricted A shares incentive scheme of the Company is 180,000 shares. The ratio of the number of A shares issued by the Company pursuant to awards granted under all schemes during the Reporting Period to the weighted average number of issued A shares (excluding treasury shares) during the Reporting Period is 0%. V. COMPLIANCE WITH CORPORATE GOVERNANCE CODE (DISCLOSURE PURSUANT TO THE REQUIREMENTS OF THE STOCK EXCHANGE) The Group is committed to achieving high corporate governance standards in order to safeguard the interests of shareholders and enhance corporate value and accountability of the Company. The Company has adopted the Code Provisions set out in the Corporate Governance Code (the “CG Code”) in Appendix C1 of the Stock Exchange Listing Rules as its own code of corporate governance. Code Provision C.2.1 stipulates that the roles of the chairman and chief executive should be separate and should not be performed by the same individual. As disclosed by the Company in the announcement published on the Stock Exchange on 15 October 2025, Mr. Cheng Suning, an executive Director and the general manager, was appointed as the chairman of the Company on 15 October 2025. Following the appointment of Mr. Cheng Suning as the chairman, Mr. Cheng assumed the dual roles of the chairman of the Board and the general manager of the Company. After evaluation of the current situation of the Company and taking into account of the experience and past performance of Mr. Cheng, the Board is of the opinion that at the present stage Mr. Cheng’s assumption of both positions as the chairman of the Board and the general manager of the Company helps to maintain the continuity of the policies and the stability of the operations of the Company, and this structure can ensure the Company has consistent leadership. In addition, under the supervision by the Board which will consist of one executive Director, three non-executive Directors, three independent non-executive Directors and one employee Director, the interests of the shareholders of the Company will be adequately and fairly represented. Also, as all major decisions are made in consultation with and approved by the members of the Board, the Board believes that this arrangement will not have negative influence on the balance of power and authorisation between the Board and the management of the Company. The Company is currently identifying a suitable candidate with appropriate experience to serve as the general manager. Save as disclosed above, during the six months ended 30 June 2026, the Company has complied with the applicable code provisions as set out in Part 2 of the CG Code. The Company will continue to review and enhance its corporate governance practices to ensure compliance with the CG Code.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 49 IV. CORPORATE GOVERNANCE, ENVIRONMENT AND SOCIETY (CONTINUED) VI. ENVIRONMENTAL INFORMATION OF LISTED COMPANIES AND THEIR MAJOR SUBSIDIARIES INCLUDED IN THE LIST OF ENTERPRISES SUBJECT TO DISCLOSURE OF ENVIRONMENTAL INFORMATION IN ACCORDANCE WITH LAW ✓ Applicable ½ Not applicable Number of enterprises included in the list of enterprises subject to disclosure of environmental information in accordance with law 38 No. Enterprise name Enquiry index for report on disclosure of environmental information in accordance with law 1 Jizhou Company https://hjxxpl.sthj.tj.gov.cn:10800/#/gkwz/ndpl/ qyxq?id=2025–76D884ABF976450DB68933FCC95A1D2D 2 Changzhou Company http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-webapp/ web/viewRunner.html?viewId=./sps/views/yfpl/views/ yfplHomeNew/index.js 3 Taizhou Company http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-webapp/ web/viewRunner.html?viewId=./sps/views/yfpl/views/ yfplHomeNew/index.js 4 Jurong Company http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-webapp/ web/viewRunner.html?viewId=./sps/views/yfpl/views/ yfplHomeNew/index.js 5 Shishou Company http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/ enterpriseInfo?XTXH=7d83d3b7–4b9f-4bcb-a634–05bb3df2 e5a6&XH=1677749899965009244672&year=2025 6 Laizhou Company http://221.214.62.226:8090/EnvironmentDisclosure/ publicReportDetail/lookReportDetail?pageFrom=2&reportId= 60646&reportType=2&batchYear=2026 7 Tongzhou Company https://hjxxpl.bevoice.com.cn:8002/home8 Miyun Company 9 Huizhou Company https://gdee.gd.gov.cn/gdeepub/front/dal/ent/list/ detail?entId=4e3cbeab-10e1–4bbc-950a-660405101998 10 Rushan Company http://221.214.62.226:8090/EnvironmentDisclosure/ enterpriseRoster/openEnterpriseDetails?comDetailFrom=0& id=913710835640612989 11 Jiamusi Company http://111.40.190.123:8082/eps/index/enterprise-more?code =91230826588107596L&uniqueCode=654a99a0a63e8c56& date=2025&type=true&isSearch=true 12 Zhangqiu Company http://221.214.62.226:8090/EnvironmentDisclosure/ enterpriseRoster/openEnterpriseDetails?comDetailFrom=0& id=913701815899040952 13 Zhangqiu Phase II Company http://221.214.62.226:8090/EnvironmentDisclosure/ enterpriseRoster/openEnterpriseDetails?comDetailFrom=0&i d=91370100MA3TPKJ86Y 14 Huludao Hazardous Waste Company https://qyxxpl.ywzh.lnsthj.cn:8802/home/companiesreport?en terId=684205958676485&publishdataId 15 Anshun Company https://222.85.128.186:8081/eps/index/enterprise-more?code =91520402596364154R&uniqueCode=97860ee7dd57748c& date=2025&type=true&isSearch=true
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202650 IV. CORPORATE GOVERNANCE, ENVIRONMENT AND SOCIETY (CONTINUED) No. Enterprise name Enquiry index for report on disclosure of environmental information in accordance with law 16 Dengfeng Company http://222.143.24.250:8247/enpInfo/enpOverview?enterId=91 410185MA45KE110K001L 17 Yongjia Company https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-more?code=9 13303245505367825&uniqueCode=3a8c4478b408065b&dat e=2025&type=true&isSearch=true 18 Yongjia Phase II Company https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-more?code=9 1330300MA298N1L3T&uniqueCode=8fe9360863155a32&da te=2025&type=true&isSearch=true 19 Bengbu Company https://39.145.37.16:8081/zhhb/yfplpub_html/#/home 20 Pingyang Phase I Company https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-more?code=9 13303265528966933&uniqueCode=929d8e05b92d813e&da te=2025&type=true&isSearch=true 21 Pingyang Phase II Company https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-more?code=9 1330326MA2ARK677C&uniqueCode=c0b373fe9b7eacdc&d ate=2025&type=true&isSearch=true 22 Enshi Company http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/ enterpriseInfo?XTXH=942f5077-bbe9–4ee4–812d-f0ac7669d 53a&XH=1682677514567029335552&year=2025 23 Shuozhou Company http://111.53.19.139:8081/#/ DisclosureDetail/1902248353813676033/2025 24 Guangyuan Company https://103.203.219.138:8082/eps/index/enterprise-more?cod e=91510800MA62549131&uniqueCode=fc345492fa3ffae0& date=2025&type=true&isSearch=true 25 Zhaoqing Company https://gdee.gd.gov.cn/gdeepub/front/dal/ent/list/ detail?entId=fa488aa3–9cb7–40ac-8ee7–613d339ca68b 26 Huludao Power Generation Company https://qyxxpl.ywzh.lnsthj.cn:8802/home/companiesreport?en terId=684205955809285&publishdataId 27 Jinsha Company https://222.85.128.186:8081/eps/index/enterprise-more?code =91520523MA6E8GBN67&uniqueCode=b487c35d6bbd81a a&date=2025&type=true&isSearch=true 28 Jingxi Company https://bqfq.sthjt.gxzf.gov.cn/GXHJXXPLQYD/frontal/index. html#/home/enterpriseInfo?XTXH=4abd7a95–089c-40f3- a6c7–925fca301efd&XH=1742204997782032530432&ye ar=2025 29 Hong ‘an Company http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/ enterpriseInfo?XTXH=187458f6-f7ac-4177-a069-c2b6a978a5 d4&XH=1677749993882009244672&year=2025 30 Bobai Company https://bqfq.sthjt.gxzf.gov.cn/GXHJXXPLQYD/frontal/index. html#/home/enterpriseInfo?XTXH=78d9857d-e71c-4a57– 8e4a-3d2b6ad43931&XH=1675645843084028999680&ye ar=2025 31 Yichun Company http://qyhjxxyfpl.sthjt.jiangxi.gov.cn:15004/pilouxiangqing?id =afa594797e2f4f6f8ea5cd9dbef71057 32 Ninghe Company https://hjxxpl.sthj.tj.gov.cn:10800/#/gkwz/ndpl/ qyxq?id=2025–7A6FF7CE52D54C7380005087904F902A
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 51 IV. CORPORATE GOVERNANCE, ENVIRONMENT AND SOCIETY (CONTINUED) No. Enterprise name Enquiry index for report on disclosure of environmental information in accordance with law 33 Wuhan Company http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/ enterpriseInfo?XTXH=a9be8e55–8635–41ea-8f7a-956c766fb f4b&XH=1677751071579009244672&year=2025 34 Haining Expansion Company https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-more?code=9 1330481MA2BB8NU43&uniqueCode=12caac7ac9c4d899& date=2025&type=true&isSearch=true 35 Shantou Company https://gdee.gd.gov.cn/gdeepub/front/dal/ent/list/ detail?entId=2c6147be-b724–4235–9b93–537299880006 36 Fengcheng Company http://qyhjxxyfpl.sthjt.jiangxi.gov.cn:15004/pilouxiangqing?id =24c2bd0c2c344b6d9c86c76a7056de01 37 Huizhou Phase II Company https://gdee.gd.gov.cn/gdeepub/front/dal/ent/list/ detail?entId=1c71b274-d195–4d13-afe5–60c9d46532d3 38 Xinmi Company http://222.143.24.250:8247/enpInfo/enpOverview?enterId=91 410183MA9L8XE05U001V&reportYear=2025 Other explanation ½ Applicable ✓ Not applicable VII. CONSOLIDATION AND EXPANSION OF THE RESULTS OF POVERTY ALLEVIATION, RURAL REVITALIZATION AND OTHER SPECIFIC WORK ½ Applicable ✓ Not applicable
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202652 V. SIGNIFICANT EVENTS I. PERFORMANCE OF UNDERTAKINGS (I) Undertakings during or carried forward to the Reporting Period by the Company’s beneficial controllers, shareholders, related parties, acquirers of the Company and the Company ✓ Applicable ½ Not applicable Background of undertaking Type of undertaking Undertaking party Details of undertaking Time of undertaking Whether there is deadline for performance Deadline of undertaking Whether the undertaking was strictly and timely performed If not performed timely, describe the specific reasons If not performed timely, describe plans in next steps Undertakings related to initial public offering Others BSAM For any loss or risk of Dynagreen and its subsidiaries caused by BOT projects not obtained through bidding, BSAM will provide timely, full and effective compensation to Dynagreen and its subsidiaries to ensure Dynagreen and/ or its domestic subsidiaries will not suffer any loss 30 May 2016 No Long term Yes
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 53 V. SIGNIFICANT EVENTS (CONTINUED) II. APPROPRIATION OF THE COMPANY’S FUNDS FOR PURPOSES OTHER THAN OPERATIONS BY THE CONTROLLING SHAREHOLDER AND ITS RELATED PARTIES DURING THE REPORTING PERIOD ½ Applicable ✓ Not applicable III. ILLEGAL GUARANTEES ½ Applicable ✓ Not applicable IV. AUDIT OF THE INTERIM REPORT ½ Applicable ✓ Not applicable V. CHANGES IN THE MATTERS INVOLVED IN NON-STANDARD AUDIT OPINIONS ON THE ANNUAL REPORT FOR THE LAST YEAR AND THE TREATMENT THEREOF ½ Applicable ✓ Not applicable VI. MATTERS RELATED TO BANKRUPTCY AND REORGANIZATION ½ Applicable ✓ Not applicable VII. MATERIAL LITIGATION AND ARBITRATION ½ The Company had material litigation and arbitration during the Reporting Period ✓ The Company did not have material litigation and arbitration during the Reporting Period VIII. PUNISHMENT AND RECTIFICATION OF THE COMPANY AND ITS DIRECTORS, SUPERVISORS, SENIOR MANAGEMENT, CONTROLLING SHAREHOLDER AND BENEFICIAL CONTROLLERS FOR SUSPECTED VIOLATION OF LAWS AND REGULATIONS ½ Applicable ✓ Not applicable IX. EXPLANATION ON CREDIBILITY OF THE COMPANY AND ITS CONTROLLING SHAREHOLDER AND BENEFICIAL CONTROLLERS DURING THE REPORTING PERIOD ½ Applicable ✓ Not applicable
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202654 V. SIGNIFICANT EVENTS (CONTINUED) X. SIGNIFICANT RELATED PARTY TRANSACTIONS (I) Related party transactions in connection with day-to-day operation 1. Matters which have been published in temporary announcements and without further progress or changes ½ Applicable ✓ Not applicable 2. Matters which have been published in temporary announcements but with further progress or changes ½ Applicable ✓ Not applicable 3. Matters which have not been published in temporary announcements ½ Applicable ✓ Not applicable (II) Related party transactions in connection with purchase or sale of assets or equity interest 1. Matters which have been published in temporary announcements and without further progress or changes ½ Applicable ✓ Not applicable 2. Matters which have been published in temporary announcements but with further progress or changes ½ Applicable ✓ Not applicable 3. Matters which have not been published in temporary announcements ½ Applicable ✓ Not applicable 4. Disclose the performance of the results relating to the results agreement during the Reporting Period ½ Applicable ✓ Not applicable
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 55 V. SIGNIFICANT EVENTS (CONTINUED) (III) Significant related party transactions in connection with joint external investment 1. Matters which have been published in temporary announcements and without further progress or changes ½ Applicable ✓ Not applicable 2. Matters which have been published in temporary announcements but with further progress or changes ½ Applicable ✓ Not applicable 3. Matters which have not been published in temporary announcements ½ Applicable ✓ Not applicable (IV) Claims and liabilities between related parties 1. Matters which have been published in temporary announcements and without further progress or changes ½ Applicable ✓ Not applicable 2. Matters which have been published in temporary announcements but with further progress or changes ½ Applicable ✓ Not applicable 3. Matters which have not been published in temporary announcements ½ Applicable ✓ Not applicable
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202656 V. SIGNIFICANT EVENTS (CONTINUED) (V) Financial business between the Company and the financial company that is related to the Company, the financial company controlled by the Company and related parties ½ Applicable ✓ Not applicable (VI) Other significant related party transactions ½ Applicable ✓ Not applicable (VII) Others ✓ Applicable ½ Not applicable The Group entered into the Non-Competition Agreement with BSAM (a connected entity of the Company by virtue of it being the controlling shareholder of the Company) on 23 December 2013, under which BSAM has agreed not to and will procure its subsidiaries (other than listed subsidiaries of BSAM) not to compete with us in our core business and has granted us options for new business opportunities, the call option and preemptive rights. In addition, if requested by the Hong Kong Stock Exchange or other regulatory authorities, BSAM will use its best endeavors to procure its associated companies and joint ventures (if any) to comply with the Non-Competition Agreement. According to the Non-Competition Agreement, when the Group decides whether to exercise the options for acquisition of new business opportunities, subscription right or the pre-emptive rights, the Group shall comply with related requirements under the Chapter 14A of the Hong Kong Stock Exchange Listing Rules. The Company and the independent non-executive Directors have received the statement issued by BSAM confirming its compliance with the Non-Competition Agreement during the Reporting Period. The Group entered into certain transactions with parties regarded as “related parties” under the applicable accounting standards during the six months ended 30 June 2026. These related party transactions were not regarded as connected transactions under Chapter 14A of the Listing Rules and were fully exempt from shareholders’ approval, annual review and all disclosure requirements pursuant to Chapter 14A of the Listing Rules. Details are set out in Note XII to the Financial Statements. The Company has complied with the disclosure requirements in accordance with Chapter 14A of the Exchange Listing Rules.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 57 V. SIGNIFICANT EVENTS (CONTINUED) XI. MATERIAL CONTRACTS AND THEIR PERFORMANCE (I) Trusteeship, contracting and leasing matters ½ Applicable ✓ Not applicable (II) Material guarantees performed and not completely performed during the Reporting Period ✓ Applicable ½ Not applicable Unit: RMB External guarantees provided by the Company (excluding those for subsidiaries) Guarantor Relationship Between the guarantor and the Company Guaranteed party Amount of guarantee Date of occurrence of guarantee (signature date of agreement) Date of commencement of guarantee Expiry date of guarantee Guarantee type Principal debt Collateral (if any) Completed or not Overdue or not Amount overdue Counter guarantee Connected parties guarantee or not Connected relations Total guarantees during the Reporting Period (excluding those for subsidiaries) 0 Total guarantee balance as at the end of Reporting Period (A) (excluding those for subsidiaries) 0 Guarantees for subsidiaries provided by the Company Total guarantees for subsidiaries during the Reporting Period 200,000,000.00 Total guarantee balance for subsidiaries as at the end of Reporting Period (B) 5,470,909,372.61 Total amount of guarantees provided by the Company (including those for subsidiaries) Total amount of guarantees (A+B) 5,470,909,372.61 Total amount of guarantees over the net assets of the Company (%) 64.73 Including: Amount of guarantees provided to shareholders, beneficial controllers and their related parties (C) 0 Amount of debt guarantees directly or indirectly provided for guaranteed parties with the gearing ratio exceeding 70% (D) 910,805,959.40 Amount of the total guarantees exceeding 50% of net assets (E) 1,244,939,113.47 Total amount of above three guarantees (C+D+E) 2,155,745,072.87 Explanations on outstanding guarantee which may undertake joint liability for satisfaction Explanations on guarantees (III) Other material contracts ½ Applicable ✓ Not applicable XII. PROGRESS OF USE OF PROCEEDS ½ Applicable ✓ Not applicable XIII. EXPLANATION ON OTHER MATERIAL MATTERS ½ Applicable ✓ Not applicable
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202658 VI. CHANGES IN SHARES AND PARTICULARS OF SHAREHOLDERS I. CHANGES IN SHARE CAPITAL (I) Table of changes in shares 1. Table of changes in shares Unit: share Before change Increase or decrease (+/–) After change Number Percentage (%) New issue Bonus issue Shares converted from reserves Others Sub-total Number Percentage (%) I. Shares subject to selling restrictions 37,130,000 2.60 37,130,000 2.60 1. Shares held by the state 2. Shares held by state-owned legal person 3. Shares held by other domestic capital 37,130,000 2.60 37,130,000 2.60 Including: shares held by domestic non-state- owned legal person Sh ares held by domestic natural person 37,130,000 2.60 37,130,000 2.60 4. Shares held by foreign capital II. Shares not subject to selling restrictions 1,393,454,350 97.40 448 448 1,393,454,798 97.40 1. RMB ordinary shares 989,094,558 69.14 448 448 989,095,006 69.14 2. Domestic listed foreign shares 3. Overseas listed foreign shares 404,359,792 28.26 404,359,792 28.26 4. Others III. Total number of shares 1,430,584,350 100 448 448 1,430,584,798 100 2. Explanation of changes in shares ✓ Applicable ½ Not applicable On 25 February 2022, the Company issued 23.6 million A-share convertible corporate bonds with a total issuance size of RMB2.36 billion. The abbreviation of the bonds is “Dynagreen Convertible Bonds”. The convertible bonds could be converted into the A shares of the Company since 5 September 2022. During the Reporting Period, 448 A shares were increased due to the conversion of “Dynagreen Convertible Bonds” into ordinary shares.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 59 VI. CHANGES IN SHARES AND PARTICULARS OF SHAREHOLDERS (CONTINUED) 3. Effect of changes in shares on financial indicators such as earnings per share and net assets per share within the period from the end of the Reporting Period to the disclosure date of the interim report (if any) ✓ Applicable ½ Not applicable The changes in the shares of the Company had no material impact on the financial indicators such as earnings per share and net assets per share, in the previous year and the latest period. 4. Other information considered necessary by the Company or required by the securities regulatory authorities to be disclosed ✓ Applicable ½ Not applicable During the Reporting Period, neither the Company nor its subsidiaries had purchased, sold or redeemed any listed securities (including disposal of treasury shares) of the Company. (II) Changes in restricted shares ½ Applicable ✓ Not applicable II. SHAREHOLDERS (I) Total number of shareholders: Total number of holders of ordinary shares as at the end of the Reporting Period 45,503 Total number of shareholders of preference shares with restored voting rights as at the end of the Reporting Period 0
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202660 VI. CHANGES IN SHARES AND PARTICULARS OF SHAREHOLDERS (CONTINUED) (II) Table of shareholdings of the top ten shareholders and the top ten holders of tradable shares (or shareholders not subject to selling restrictions) as at the end of the Reporting Period Unit: share Shareholding of the top ten shareholders (excluding shares lent through refinancing) Name of shareholder (full name) Change during the Reporting Period Number of shares held as at the end of the Period Percentage (%) Number of shares held subject to selling restrictions Pledged, marked or frozen Nature of shareholder Status Number Beijing State-owned Assets Management Co., Ltd. 0 454,740,345 31.79 Nil State-owned legal person HKSCC NOMINEES LIMITED –100 379,479,900 26.53 Unknown Overseas legal person Beijing Industrial Development Investment Management Co., Ltd. 0 139,345,273 9.74 Nil State-owned legal person Three Gorges Capital Holdings Co., Ltd. 0 84,265,896 5.89 Nil State-owned legal person Beijing State-Owned Assets Management (Hong Kong) Company Limited 0 24,859,792 1.74 Nil Overseas legal person Beijing Huitai Hengrui Investment Co., Ltd. –920,200 14,201,507 0.99 Nil Domestic non- state-owned legal person Hong Kong Securities Clearing Company Ltd. –3,070,809 7,104,275 0.50 Unknown Overseas legal person China Construction Bank Corporation – Dongfanghong CSI Dongfanghong Dividend Low Volatility Index Securities Investment Fund (ܔ ؇ ږ) 6,775,000 6,775,000 0.47 Nil Other Gongqingcheng Jingxiu Investment Partnership (Limited Partnership) –530,000 6,250,378 0.44 Nil Domestic non- state-owned legal person Wu Guojun 2,432,900 2,432,900 0.17 Nil Domestic natural person
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 61 VI. CHANGES IN SHARES AND PARTICULARS OF SHAREHOLDERS (CONTINUED) Top ten holders of shares not subject to selling restrictions (excluding shares lent through refinancing) Name of shareholder Number of tradable shares not subject to selling restrictions held Class and number of shares Type Number Beijing State-owned Assets Management Co., Ltd. 454,740,345 RMB ordinary shares 454,740,345 HKSCC NOMINEES LIMITED 379,479,900 Overseas listed foreign shares 379,479,900 Beijing Industrial Development Investment Management Co., Ltd. 139,345,273 RMB ordinary shares 139,345,273 Three Gorges Capital Holdings Co., Ltd. 84,265,896 RMB ordinary shares 84,265,896 Beijing State-Owned Assets Management (Hong Kong) Company Limited 24,859,792 Overseas listed foreign shares 24,859,792 Beijing Huitai Hengrui Investment Co., Ltd. 14,201,507 RMB ordinary shares 14,201,507 Hong Kong Securities Clearing Company Ltd. 7,104,275 RMB ordinary shares 7,104,275 China Construction Bank Corporation – Dongfanghong CSI Dongfanghong Dividend Low Volatility Index Securities Investment Fund (ߎ ږ) 6,775,000 RMB ordinary shares 6,775,000 Gongqingcheng Jingxiu Investment Partnership (Limited Partnership) 6,250,378 RMB ordinary shares 6,250,378 Wu Guojun 2,432,900 RMB ordinary shares 2,432,900 Description of the special account for repurchase of the top ten shareholders Nil Description of the abovementioned shareholders’ entrusting of voting rights, entrusted voting rights, and waiver of voting rights Nil Particulars of related-party relationship or concert party arrangement among the Shareholders above Beijing Industrial Development Investment Management Co., Ltd. and Beijing State-Owned Assets Management (Hong Kong) Company Limited are wholly-owned subsidiaries of Beijing State-owned Assets Management Co., Ltd. Explanation on shareholders of preference shares with restored voting rights and the number of shares held by them Nil
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202662 VI. CHANGES IN SHARES AND PARTICULARS OF SHAREHOLDERS (CONTINUED) Participation in lending of shares through refinancing business by shareholders holding over 5% of shares, top ten shareholders and top ten holders of shares not subject to selling restrictions ½ Applicable ✓ Not applicable Changes in top ten shareholders and top ten holders of shares not subject to selling restrictions as compared with the previous period due to lending out of shares through refinancing/return of shares ½ Applicable ✓ Not applicable Number of shares held by the top ten shareholders subject to selling restrictions and conditions of such selling restrictions ✓ Applicable ½ Not applicable Unit: share No. Name of shareholder subject to selling restrictions Number of restricted shares held Tradable status of restricted shares Date of being tradable Number of additional tradable shares Term of selling restriction 1 Cheng Suning 1,000,000 0 For details, please refer to explanation below 2 Hu Shengyong 650,000 0 3 Xi Qiang 650,000 0 4 Hao Jingli 650,000 0 5 Zhang Yong 650,000 0 6 Huang Jianzhong 650,000 0 7 Zhu Shuguang 650,000 0 8 Zhang Wei 650,000 0 9 Yi Zhiyong 650,000 0 10 Liu Lin 650,000 0 11 Pi Siwei 650,000 0 Particulars of related-party relationship or concert party arrangement among the Shareholders above Nil
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 63 VI. CHANGES IN SHARES AND PARTICULARS OF SHAREHOLDERS (CONTINUED) Explanation: The grant date of the first grant and reserved grant (first batch) under the Restricted A Share Incentive Scheme of the Company is 2 December 2025; the registration date is 23 December 2025. The unlocking schedule for the Restricted A Share Incentive Scheme of the Company is as follows: Unlocking arrangement Unlocking schedule Proportion of the number of shares unlocked to the number of shares granted First Unlocking Period of the first grant and the reserved grant Commencing from the first trading day after expiry of the 24-month period from the date of completion of registration of the restricted shares and ending on the last trading day of the 36-month period from the date of completion of registration of the restricted shares. 33% Second Unlocking Period of the first grant and the reserved grant Commencing from the first trading day after expiry of the 36-month period from the date of completion of registration of the restricted shares and ending on the last trading day of the 48-month period from the date of completion of registration of the restricted shares. 33% Third Unlocking Period of the first grant and the reserved grant Commencing from the first trading day after expiry of the 48-month period from the date of completion of registration of the restricted shares and ending on the last trading day of the 60-month period from the date of completion of registration of the restricted shares. 34% (III) Strategic investors or general legal persons becoming the top 10 shareholders by placing of new shares ½ Applicable ✓ Not applicable III. PARTICULARS OF SHAREHOLDING OF SUBSTANTIAL SHAREHOLDERS DISCLOSED PURSUANT TO THE SFO Save as disclosed in the section headed “Interests in securities held by Directors and senior management”, as at 30 June 2026, according to the register kept under Section 336 of the SFO, the following shareholders who had 5% or more interests or short positions in the shares and underlying shares of the Company which would fall to be disclosed to the Company under the provision of Divisions 2 and 3 of Part XV of the SFO: Shareholder Number of shares held Capacity Approximate percentage of share holding in the relevant class of shares (1) Approximate percentage of share holding in the total share capital of the Company(2) BSAM 454,740,345 A shares (Long position) Beneficial owner 44.31% 31.79% Beijing Industrial Development Investment Management Co., Ltd. (“Beijing Industrial Investment”) (3) 139,345,273 A shares (Long position) Beneficial owner 13.58% 9.74% BSAM(3) 139,345,273 A shares (Long position) Interest in controlled corporation 13.58% 9.74% Beijing State-Owned Assets Management (Hong Kong) Company Limited (“BSAM (HK)”) (3) 24,859,792 H shares (Long position) Beneficial owner 6.15% 1.74%
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202664 VI. CHANGES IN SHARES AND PARTICULARS OF SHAREHOLDERS (CONTINUED) Shareholder Number of shares held Capacity Approximate percentage of share holding in the relevant class of shares (1) Approximate percentage of share holding in the total share capital of the Company (2) BSAM(3) 24,859,792 H shares (Long position) Interest in controlled corporation 6.15% 1.74% Three Gorges Capital Holdings Co., Ltd. 84,265,896 A shares (Long position) Beneficial owner 8.21% 5.89% Great Wall Life Insurance Company Limited 117,224,000 H shares (Long position) Beneficial owner 28.99% 8.19% Great Wall Life Insurance Company Limited 400,000 A shares (Long position) Beneficial owner 0.04% 0.03% China Post Life Insurance Co., Ltd. 20,510,000 H shares (Long position) Beneficial owner 5.07% 1.43% E Fund Management Co., Ltd. 24,133,000 H shares (Long position) Beneficial owner 5.97% 1.69% Notes: (1) The calculation is based on the number of Shares in the relevant class of shares of the Company as at 30 June 2026. (2) The calculation is based on the total number of 1,430,584,798 Shares in issue as at 30 June 2026. (3) Be ijing Industrial Investment and BSAM (HK) are wholly-owned subsidiaries of BSAM. Pursuant to the SFO, BSAM is deemed to be interested in the A Shares held by Beijing Industrial Investment, holding 139,345,273 A Shares, representing approximately 13.5 8% of the total A Shares of the Company and approximately 9.74% of the total share capital of the Company; and is deemed to be interested in the H Shares held by BSAM (HK), holding 24,859,792 H Shares, representing approximately 6.15% of the total H Shares of the Company and approximately 1.74% of the total share capital of the Company. Apart from the above, as at 30 June 2026, no other interests required to be recorded in the register kept under Section 336 of the SFO have been notified to the Company. Mr. Hu Yong, a non-executive Director of the Company, is an employee of an entity under BSAM; Mr. Hu Tianhe, a non-executive Director, is an employee of an entity under Three Gorges Capital Holdings Co., Ltd.; Mr. Yan Chunxu, a non-executive Director, is an employee of an entity under Great Wall Life Insurance Company Limited.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 65 VI. CHANGES IN SHARES AND PARTICULARS OF SHAREHOLDERS (CONTINUED) IV. DIRECTORS AND SENIOR MANAGEMENT (I) Changes in shareholding of the current and resigned Directors and senior management during the Reporting Period ½ Applicable ✓ Not applicable Other explanations ½ Applicable ✓ Not applicable (II) Interests in securities held by Directors and senior management (disclosure pursuant to the requirements of the Stock Exchange) As at the end of the Reporting Period, any interests or short positions held by the Directors and chief executives of the Company in the shares, underlying shares and debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) which were required (a) to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which they were taken or deemed to have under such provisions of the SFO); or (b) pursuant to section 352 of Part XV of the SFO, to be entered in the register referred to therein; or (c) pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Stock Exchange Listing Rules, to be notified to the Company and the Stock Exchange are as follows: Name Position Class of share Nature of interest Number of shares held (share) Percentage of total issued shares of the Company Percentage of total issued A shares of the Company Long position/ short position/ lending pool Cheng Suning Chairman A share Beneficial owner 1,000,000 0.07% 0.10% Long position Hu Shengyong Employee Director A share Beneficial owner 650,000 0.05% 0.06% Long position (III) Equity incentive granted to Directors and senior management during the Reporting Period ½ Applicable ✓ Not applicable (IV) Other explanation ½ Applicable ✓ Not applicable
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202666 VI. CHANGES IN SHARES AND PARTICULARS OF SHAREHOLDERS (CONTINUED) V. CHANGES IN CONTROLLING SHAREHOLDERS OR BENEFICIAL CONTROLLER ½ Applicable ✓ Not applicable VI. CODE OF CONDUCT FOR TRADING OF SHARES BY DIRECTORS AND EMPLOYEES (DISCLOSURE PURSUANT TO THE REQUIREMENTS OF THE STOCK EXCHANGE) The Company has adopted Management Measures on Securities Transactions by Directors and Senior Management Personnel (the “Management Measures”) on terms no less exacting than the required standard set out in the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) contained in Appendix C3 to the Hong Kong Stock Exchange Listing Rules. The Company had made specific inquiries to all of the Directors on whether they had complied with the Management Measures during the Reporting Period, and all of the Directors had confirmed that they had all complied with the Management Measures. The Company has established the Employees Written Guidance (the “Employees Written Guidance”) for its employees who may hold unpublished internal information of the Company in relation to dealing in securities, with terms no less favourable than the Model Code. The Company was not aware of any matters in relation to breaches of the Employees Written Guidance by any employee. VII. HUMAN RESOURCES AND POLICIES (DISCLOSURE PURSUANT TO THE REQUIREMENTS OF THE STOCK EXCHANGE) As at 30 June 2026, the Group had a total of 3,307 staff members. The Company provides remuneration with “competitiveness in the industry” to employees. The Company has established a compensation management system based on “management by objectives and performance appraisal”. The remuneration of employees is linked to their completion of tasks assigned by the Company and performances. The remuneration management of the Company follows the “model differentiation principle”. According to work needs, the Company implements two different compensation modes of “annual salary system” and “performance-based salary system” for different positions. The Company will maintain the stability of the remuneration system, and will continue to improve on the basis of the implementation of current remuneration system in accordance with the actual situation of the Company. The Company will make timely adjustments to the salary level of employees according to the operation situation, price index and industry salary level, so that the income level of employees will continue to be competitive. For details of employee compensation, please refer to Note V (XXVII) to the financial statements. The Group regards employee development and training as an important way to achieve business goals, improve performance and implement sustainable development. The Group has established a training mechanism to help employees develop in multiple dimensions, and has set up five special training programs, i.e. new employee induction training, reserve cadre training, organizational personnel training, safety production training, and college student training, as well as two types of general-purpose training courses, i.e. green mobile classroom and green lecture hall. The training courses are provided online and offline simultaneously to improve the learning awareness and work efficiency of employees. Meanwhile, for the subordinate project companies, the Group has carried out targeted professional skills training and held experience sharing meetings to strengthen the professional skills of employees at all levels and improve the business quality of the Group. The Group vigorously promotes the spirit of model workers and craftsmen. The project companies under the Group carry out various labor skills competitions and other activities in combination with the actual situation of the enterprise, so as to promote learning and training through competitions, forming a good atmosphere in which all staff in the Group compare with, learn from, catch up with and surpass others. VIII. PREFERENCE SHARES ½ Applicable ✓ Not applicable
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 67 VII. BONDS I. CORPORATE BONDS (INCLUDING ENTERPRISE BONDS) AND DEBT FINANCING INSTRUMENTS OF NON-FINANCIAL ENTERPRISES ✓ Applicable ½ Not applicable (I) Corporate Bonds (Including Enterprise Bonds) ½ Applicable ✓ Not applicable (II) Proceeds from corporate bonds ½ Use of proceeds or rectification of corporate bonds during the Reporting Period ✓ None of the Company’s corporate bonds involved the use of proceeds or rectification during the Reporting Period (1) Use of proceeds for specific projects ½ Applicable ✓ Not applicable (III) Other matters to be disclosed for special bonds ½ Applicable ✓ Not applicable (IV) Significant events relating to corporate bonds during the Reporting Period ½ Applicable ✓ Not applicable
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202668 VII. BONDS (CONTINUED) (V) Debt financing instruments of non-financial enterprises in the inter-bank bond market ✓ Applicable ½ Not applicable 1. Basic information of debt financing instruments of non-financial enterprises RMB’0,000 Name of bond Abbreviation Code Issue date Value date Maturity date Balance Interest rate (%) Means to repay principal and interest Trading venue Investor suitability arrangement (if any) Trading mechanism Risk of termination of listing and trading 2025 First Tranche of Medium-Term Notes of Dynagreen Environmental Protection Group Co., Ltd. 25 Dynagreen MTN001 102584980 26 November 2025–27 November 2025 28 November 2025 28 November 2028 50,000 2 Interest to be paid annually and principal payable at maturity Inter-bank bond market Nil Tradable in the inter-bank bond market No 2026 First Tranche of Scientific and Technological Innovation Bonds of Dynagreen Environmental Protection Group Co., Ltd. 26 Dynagreen MTN001 (Scientific and Technological Innovation Bonds) 102680776 10 March 2026–11 March 2026 12 March 2026 12 March 2029 50,000 1.88 Interest to be paid annually and principal payable at maturity Inter-bank bond market Nil Tradable in the inter-bank bond market No The response of the Company to the risk of termination of trading of the bonds ½ Applicable ✓ Not applicable Overdue bonds ½ Applicable ✓ Not applicable Explanation on overdue debt ½ Applicable ✓ Not applicable
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 69 VII. BONDS (CONTINUED) 2. Triggering and execution of option terms of the Company or investors and investors’ protection terms ½ Applicable ✓ Not applicable 3. Adjustment to credit rating result ½ Applicable ✓ Not applicable Other explanations Nil 4. Execution and changes and the effect of guarantees, debt repayment scheme and other debt repayment protection practices during the Reporting Period ½ Applicable ✓ Not applicable Other explanations Nil 5. Description of other information of debt financing instruments of non-financial enterprises ½ Applicable ✓ Not applicable (VI) Consolidated statement of comprehensive loss exceeds 10% of the Company’s net assets at the end of the previous year during the Reporting Period ½ Applicable ✓ Not applicable (VII) Violation of provisions and agreements Violation of laws and regulations, self-regulatory rules, the Articles of Association and the requirements of the management system for information disclosure as well as the agreements or commitments stated in the prospectus of bonds and the impact thereof on the rights and interests of bond investors during the Reporting Period ½ Applicable ✓ Not applicable
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202670 VII. BONDS (CONTINUED) (VIII) Major accounting data and financial indicators ✓ Applicable ½ Not applicable Unit: RMB Major indicators As at the end of the Reporting Period As at the end of last year Increase/decrease for the end of the Reporting Period over the end of last year (%) Reasons for change Current ratio 2.06 2.28 –9.65 Mainly due to that the increase in current assets as compared with the end of last year fell short of the increase in current liabilities as compared with the end of last year. The increase in balance of current liabilities stemmed primarily from the undistributed dividend payable of RMB314.69 million declared for distribution of dividends in June 2026 Quick ratio 2.03 2.25 –9.78 Mainly due to that the increase in quick assets as compared with the end of last year fell short of the increase in current liabilities as compared with the end of last year. The increase in balance of current liabilities stemmed primarily from the undistributed dividend payable of RMB314.69 million declared for distribution of dividends in June 2026 Debt-to-asset ratio (%) 60.25 60.45 –0.33 Minor changes The Reporting Period (January to June) Corresponding period last year Increase/decrease for the Reporting Period over the corresponding period last year (%) Reason for changes Net profit excluding non-recurring gain and loss 463,209,687.78 375,787,727.09 23.26 Mainly due to an increase in operation profit Total debt to EBITDA ratio 0.08 0.07 14.29 Mainly due to that the year-on-year increase in earnings before interest and tax exceeds that of total liabilities Interest coverage ratio 4.75 3.57 33.05 Mainly due to a year-on-year increase in earnings before interest and a year-on-year decrease in interest expenses Cash interest coverage ratio 6.78 5.69 19.16 Mainly due to a year-on-year increase in net cash flows from operating activities and a year-on-year decrease in interest expenses EBITDA interest coverage ratio 6.27 4.91 27.70 Mainly due to a year-on-year increase in earnings before interest and a year-on-year decrease in interest expenses Loan repayment ratio (%) 100 100 – Interest coverage (%) 100 100 –
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 71 VII. BONDS (CONTINUED) II. CONVERTIBLE CORPORATE BONDS ✓ Applicable ½ Not applicable (I) Issuance of convertible bonds In order to guarantee the capital requirements of projects, optimize the debt structure and reduce the financing cost, as approved by the Approval for the Public Issuance of A Share Convertible Corporate Bonds of Dynagreen Environmental Protection Group Co., Ltd.* (ʮ̡)” (Zheng Jian Xu Ke [2022] No. 132) issued by the CSRC, the Company issued 23.6 million A share convertible corporate bonds with a nominal value of RMB100 each at par value, with an issuance size of RMB2.36 billion on 25 February 2022. The net proceeds amounted to RMB2,345 million. The target subscribers of the A share convertible corporate bonds are natural persons, legal persons, securities investment funds and other eligible investors pursuant to legal requirements who have maintained securities accounts with the China Securities Depository and Clearing Corporation Limited Shanghai Branch (excluding those prohibited by the PRC laws and regulations). On the date on which the terms of the issuance of A share convertible corporate bonds were fixed, i.e. 22 February 2022, the price of A shares of the Company was RMB9.73 per share. As approved by the Self-regulation Decision [2022] No. 70 of the Shanghai Stock Exchange, the A share convertible corporate bonds in an amount of RMB2.36 billion were listed for trading on the Shanghai Stock Exchange on 23 March 2022. The abbreviation and code of the bonds issued are “Dynagreen Convertible Bonds” and “113054”, respectively. The initial conversion price is RMB9.82 per share. Pursuant to relevant provisions and the Offering Document of the Issuance of Convertible Corporate Bonds by Dynagreen Environmental Protection Group Co., Ltd., the “Dynagreen Convertible Bonds” could be converted into the A shares of the Company since 5 September 2022. Due to the Company’s distribution of cash dividends for 2021, cash dividends for 2022, cash dividends for 2023, interim cash dividends for 2024, cash dividends for 2024, interim cash dividends for 2025 and cash dividends for 2025, as well as the Company’s implementation of restricted A share incentive scheme, the latest conversion price of “Dynagreen Convertible Bonds” was adjusted to RMB8.67 per share. The adjusted conversion price took effect from 8 July 2026.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202672 VII. BONDS (CONTINUED) (II) Holders and guarantors of convertible bonds during the Reporting Period Name of convertible corporate bonds Dynagreen Convertible Bonds Number of holders of convertible corporate bonds at the end of the period 11,637 Guarantors of convertible bonds of the Company N/A Material changes in profitability, assets and credit of the guarantors N/A Top ten holders of convertible corporate bonds are as follows: Name of holders of convertible corporate bonds Amount of bonds held at the end of the period (RMB) Percentage of holding (%) China Merchants Bank Co., Ltd. – Bosera CSI Convertible Bonds and Exchangeable Bond Trading Open-ended Index Securities Investment Fund (΅ ό ږ218,516,000 9.26 Northwest Investment Management (Hong Kong) Limited – Northwest Feilong Fund Limited (ಥ ʮ̡Ñ ʮ̡) 136,000,000 5.76 CITIC Securities Company Limited – HFT Investment-grade Convertible Bond and Exchangeable Bond Exchange- traded Open-ended Index Securities Investment Fund (ʮ̡Ñऎబஷɪᗇҳ༟ॴ̙ᔷවʿ ږ82,440,000 3.49 Huatai Yousheng Convertible Bond Fixed Income Pension Product – China Merchants Bank Co., Ltd. (ਠვБ ʮ̡) 73,161,000 3.10 Industrial and Commercial Bank of China Co., Ltd. – Fullgoal Xingli Enhanced Bond Initiated Securities Investment Fund (ʮ̡Ñ ږ55,291,000 2.34 China Merchants Bank Co., Ltd. – Huatai Baoxing Zunrui 6-Month Holding-Period Bond-Type Initiated Securities Investment Fund (ʮ̡Ñ ጳయြ6ږ54,157,000 2.29 Lian Life Insurance Co., Ltd. – E Wealth Management (Plan B) Whole Life Insurance (Universal Type) (лτ ʮ̡ÑEଣৌBۨ50,551,000 2.14 Agricultural Bank of China Co., Ltd. – China Post Pure Bond Hengli Bond Securities Investment Fund (ʕุ༵ ږ50,000,000 2.12 Bank of Communications Co., Ltd. – BOC State-owned Enterprise Bond Securities Investment Fund (ʹஷვБ ږ45,421,000 1.92 China CITIC Bank Corporation Limited – CPIC Confidence Growth Regular-Open Bond-Type Securities Investment Fund (׳ ږ41,977,000 1.78
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 73 VII. BONDS (CONTINUED) (III) Changes in convertible bonds during the Reporting Period Unit: RMB Name of convertible corporate bonds Before the change Increase and decrease in the change After the changeConversion Redemption Repurchase Dynagreen Convertible Bonds 2,359,861,000 4,000 2,359,857,000 (IV) Accumulated conversion of convertible bonds during the Reporting Period Name of convertible corporate bonds Dynagreen Convertible Bonds Amount of shares converted during the Reporting Period (RMB) 4,000 Number of shares converted during the Reporting Period (share) 448 Aggregate number of shares converted (share) 14,798 Aggregate number of shares converted to the total number of issued shares of the Company before conversion (%) 0.0011 Amount of unconverted bonds (RMB) 2,359,857,000 Number of unconverted bonds to the total number of convertible bonds issued (%) 99.9939
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202674 VII. BONDS (CONTINUED) (V) Previous adjustments to conversion price Unit: RMB Name of convertible corporate bonds Dynagreen Convertible Bonds Date of adjustment of conversion price Adjusted conversion price Date of disclosure Disclosure media Explanation on adjustment to conversion price 2022–7–21 9.72 2022–7–15 China Securities Journal Shanghai Securities News Securities Times Securities Daily According to the relevant provisions of the Offering Document of Convertible Bonds of the Company, due to the Company’s distribution of cash dividends for 2021, the conversion price of “Dynagreen Convertible Bonds” was adjusted from RMB9.82 per share to RMB9.72 per share (Announcement No.: Lin 2022–031). 2023–7–26 9.60 2023–7–19 Shanghai Securities News Securities Times According to the relevant provisions of the Offering Document of Convertible Bonds of the Company, due to the Company’s distribution of cash dividends for 2022, the conversion price of “Dynagreen Convertible Bonds” was adjusted from RMB9.72 per share to RMB9.60 per share (Announcement No.: Lin 2023–029). 2024–6–26 9.45 2024–6–18 Shanghai Securities News Securities Times According to the relevant provisions of the Offering Document of Convertible Bonds of the Company, due to the Company’s distribution of cash dividends for 2023, the conversion price of “Dynagreen Convertible Bonds” was adjusted from RMB9.60 per share to RMB9.45 per share (Announcement No.: Lin 2024–028). 2024–11–19 9.35 2024–11–11 Shanghai Securities News Securities Times According to the relevant provisions of the Offering Document of Convertible Bonds of the Company, due to the Company’s distribution of interim cash dividends for 2024, the conversion price of “Dynagreen Convertible Bonds” was adjusted from RMB9.45 per share to RMB9.35 per share (Announcement No.: Lin 2024–059).
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 75 VII. BONDS (CONTINUED) Name of convertible corporate bonds Dynagreen Convertible Bonds Date of adjustment of conversion price Adjusted conversion price Date of disclosure Disclosure media Explanation on adjustment to conversion price 2025–7–30 9.15 2025–7–23 Shanghai Securities News Securities Times According to the relevant provisions of the Offering Document of Convertible Bonds of the Company, due to the Company’s distribution of cash dividends for 2024, the conversion price of “Dynagreen Convertible Bonds” was adjusted from RMB9.35 per share to RMB9.15 per share (Announcement No.: Lin 2025–039). 2025–11–11 9.05 2025–11–3 Shanghai Securities News Securities Times According to the relevant provisions of the Offering Document of Convertible Bonds of the Company, due to the Company’s interim profit distribution for 2025, the conversion price of “Dynagreen Convertible Bonds” was adjusted from RMB9.15 per share to RMB9.05 per share (Announcement No.: Lin 2025–065). 2025–12–26 8.89 2025–12–25 Shanghai Securities News Securities Times According to the relevant provisions of the Offering Document of Convertible Bonds of the Company, due to the completion of registration of restricted shares under the first grant and reserved grant (first batch) under the restricted A share incentive scheme of the Company and issuance of 37.13 million new shares, the conversion price of “Dynagreen Convertible Bonds” was adjusted from RMB9.05 per share to RMB8.89 per share (Announcement No.: Lin 2025–079). 2026–7–8 8.67 2026–7–1 Shanghai Securities News Securities Times According to the relevant provisions of the Offering Document of Convertible Bonds of the Company, due to the Company’s profit distribution for 2025, the conversion price of “Dynagreen Convertible Bonds” was adjusted from RMB8.89 per share to RMB8.67 per share (Announcement No.: Lin 2026–036). Latest conversion price as of the end of the Reporting Period 8.67
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202676 VII. BONDS (CONTINUED) (VI) The Company’s liabilities, creditworthiness and availability of cash for repayment of debts in future years As of 30 June 2026, the Company’s total assets amounted to RMB22.296 billion and its gearing ratio was 60.25%. China Chengxin International Credit Rating Co., Ltd. conducted a tracking credit rating on the convertible bonds issued by the Company and issued the Tracking Rating Report on Dynagreen Environmental Protection Group Co., Ltd. for 2026 (Xin Ping Wei Han Zi [2026] Gen Zong No. 0219) on 22 May 2026, pursuant to which the main credit rating of the Company remained “AA+” and the rating outlook remained “stable”; the credit rating of the “Dynagreen Convertible Bonds” remained AA+. In the past three years, the Company’s interest coverage ratio was relatively high and the Company’s loan repayment was good, without overdue repayment of bank loans. On 27 February 2023, the Company started to pay interest on the “Dynagreen Convertible Bonds” for the period from 25 February 2022 to 24 February 2023. The payment of interests is for the first year of the “Dynagreen Convertible Bonds”, and the coupon rate for the interest bearing year is 0.20% (tax inclusive), that is, the interest payable on each convertible bond with a par value of RMB100 is RMB0.20 (tax inclusive) (Announcement No.: Lin 2023–006). On 26 February 2024, the Company started to pay interest on the “Dynagreen Convertible Bonds” for the period from 25 February 2023 to 24 February 2024. The payment of interests is for the second year of the “Dynagreen Convertible Bonds”, and the coupon rate for the interest bearing year is 0.40% (tax inclusive), that is, the interest payable on each convertible bond with a par value of RMB100 is RMB0.40 (tax inclusive) (Announcement No.: Lin 2024–005). On 25 February 2025, the Company started to pay interest on the “Dynagreen Convertible Bonds” for the period from 25 February 2024 to 24 February 2025. The payment of interests is for the third year of the “Dynagreen Convertible Bonds”, and the coupon rate for the interest bearing year is 0.60% (tax inclusive), that is, the interest payable on each convertible bond with a par value of RMB100 is RMB0.60 (tax inclusive) (Announcement No.: Lin 2025–004). On 25 February 2026, the Company started to pay interest on the “Dynagreen Convertible Bonds” for the period from 25 February 2025 to 24 February 2026. The payment of interests is for the third year of the “Dynagreen Convertible Bonds”, and the coupon rate for the interest bearing year is 1.50% (tax inclusive), that is, the interest payable on each convertible bond with a par value of RMB100 is RMB1.50 (tax inclusive) (Announcement No.: Lin 2026–005). (VII) Other description of convertible bonds No downward adjustment to conversion price As of 28 October 2025, the Share price of the Company has triggered the term on downward adjustment to the conversion price of “Dynagreen Convertible Bonds”. In view of the relatively long remaining term of “Dynagreen Convertible Bonds”, taking into account the Company’s gearing ratio, cash flow and secondary market conditions, in order to safeguard the interests of all Shareholders and clarify investors’ expectations, as considered at the sixteenth meeting of the fifth session of the Board, the Board of the Company determined that no downward adjustment would be made to the conversion price this time and that it would not make any proposal on downward adjustment within twelve months from the date of consideration and approval by the Board this time (i.e. from 28 October 2025 to 27 October 2026) even if the price of the Company’s A Shares triggers the term on downward adjustment to the conversion price of “Dynagreen Convertible Bonds” again. Starting from 28 October 2026, if the term on downward adjustment to the conversion price of the “Dynagreen Convertible Bonds” is triggered again, the Board will hold a meeting to decide whether to make a proposal on downward adjustment to the conversion price of the “Dynagreen Convertible Bonds” (Announcement No.: Lin 2025–061).
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 77 VII. BONDS (CONTINUED) Dilutive effects of convertible corporate bonds Assuming that the unconverted A-share convertible corporate bonds of RMB2,359,857,000 were fully converted at the end of the Reporting Period at the conversion price of RMB8.67 per Share, a maximum of 272,186,505 A Shares (the “Conversion Shares”), equivalent to (i) approximately 19.03% of the then issued share capital of the Company (i.e. 1,430,584,798 Shares) (excluding treasury shares); and approximately 15.98% of the enlarged issued share capital of the Company after issuance of Conversion Shares (i.e. 1,702,771,303 Shares) (excluding treasury shares), would be issued. For the avoidance of doubt, the Company did not hold treasury shares repurchased at the end of the Reporting Period. If, at the end of the Reporting Period, all the unconverted A-share convertible corporate bonds have been converted, the dilutive effects on the equity interests of the Company’s substantial shareholders will be as follows: As at 30 June 2026 Equity interests immediately after exercise of all conversion rights Name of shareholders Number of Shares held Approximate percentage of relevant Share class(1) Approximate percentage of the Company’s total share capital(2) Number of Shares held Approximate percentage of relevant share class Approximate percentage of the Company’s total share capital BSAM 454,740,345 A shares (Long position) 44.31% 31.79% 454,740,345 A shares (Long position) 35.02% 26.71% Beijing Industrial Investment(1) 139,345,273 A shares (Long position) 13.58% 9.74% 139,345,273 A shares (Long position) 10.73% 8.18% BSAM(1) 139,345,273 A shares (Long position) 13.58% 9.74% 139,345,273 A shares (Long position) 10.73% 8.18% BSAM (HK)(1) 24,859,792 H shares (Long position) 6.15% 1.74% 24,859,792 H shares (Long position) 6.15% 1.46% BSAM(1) 24,859,792 H shares (Long position) 6.15% 1.74% 24,859,792 H shares (Long position) 6.15% 1.46% Three Gorges Capital Holdings Co., Ltd. 84,265,896 A shares (Long position) 8.21% 5.89% 84,265,896 A shares (Long position) 6.49% 4.95% Great Wall Life Insurance Company Limited 117,224,000 H shares (Long position) 28.99% 8.19% 117,224,000 H shares (Long position) 28.99% 6.88% Great Wall Life Insurance Company Limited 400,000 A shares (Long position) 0.04% 0.03% 400,000 A shares (Long position) 0.03% 0.02% China Post Life Insurance Co., Ltd. 20,510,000 H shares (Long position) 5.07% 1.43% 20,510,000 H shares (Long position) 5.07% 1.20% E Fund Management Co., Ltd. 24,133,000 H shares (Long position) 5.97% 1.69% 24,133,000 H shares (Long position) 5.97% 1.42% Notes: (1) Beijing Industrial Investment and BSAM (HK) are wholly-owned subsidiaries of BSAM. Pursuant to the SFO, BSAM is deemed to be interested in the A Shares held by Beijing Industrial Investment, holding 139,345,273 A Shares, representing approximately 13.58% of the total A Shares of the Company and approximately 9.74% of the total share capital of the Company; and is deemed to be interested in the H Shares held by BSAM (HK), holding 24,859,792 H Shares, representing approximately 6.15% of the total H Shares of the Company and approximately 1.74% of the total share capital of the Company. (2) The calculation is based on the total number of 1,430,584,798 Shares in issue as at 30 June 2026.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202678 VII. BONDS (CONTINUED) If, at the end of the Reporting Period, all the unconverted A-share convertible corporate bonds have been converted, for the dilutive effects on the (losses)/earnings per Share of the Group, please refer to “Note V (LVII) to the financial statements”. Taking into account the Group’s total net assets of approximately RMB8,861 million and total net current assets of approximately RMB2,710 million as at 30 June 2026 and the measures taken by the Group to maintain its financial position, the Company is expected to be able to fulfill the redemption obligations under the convertible corporate bonds. Based on the implied internal rate of return of the unconverted A-share convertible corporate bonds on the maturity date, assuming that the conversion price of the unconverted A-share convertible corporate bonds on the maturity date is the current conversion price of RMB8.67 per Share (the conversion price is only a simulated price, and does not constitute a value of the actual conversion price), the analysis of the Company’s share price on equally favorable economic return for conversion or redemption of unconverted A-share convertible corporate bonds by holders of unconverted A-share convertible corporate bonds is set out below: Share price (RMB) A-share convertible corporate bonds on 24 February 2028 9.28 per Share
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 79 VIII. FINANCIAL REPORT CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) Note Closing balance Balance at the end of the previous year (unaudited) (audited) ASSETS Current assets: Cash at bank and on hand V(I) 1,445,557,491.31 1,543,476,291.84 Notes receivables V(II) 4,693,854.22 3,595,304.99 Accounts receivables V(III) 2,944,163,570.29 2,622,655,844.03 Receivables financing V(IV) 26,228,763.95 25,946,648.82 Advances to suppliers V(V) 32,114,747.88 27,988,506.02 Other receivables V(VI) 84,934,306.42 55,607,921.07 Inventories V(VII) 51,522,693.50 47,647,742.18 Contract assets V(VIII) 526,281,294.35 482,813,621.23 Current portion of non-current assets V(IX) 40,472,196.13 46,454,709.89 Other current assets V(X) 112,010,952.21 136,959,508.09 Total current assets 5,267,979,870.26 4,993,146,098.16 Non-current assets: Long-term receivables V(XI) 32,897,984.69 32,897,984.69 Long-term equity investments V(XII) 7,637,882.39 Fixed assets V(XIII) 87,320,159.14 83,624,641.25 Construction in progress V(XIV) 3,346,941.15 6,351,047.48 Right-of-use assets V(XV) 2,783,747.63 4,354,130.08 Intangible assets V(XVI) 10,171,961,848.99 10,195,237,883.09 Goodwill V(XVII) Long-term prepaid expenses V(XVIII) 1,360,579.92 2,224,240.53 Deferred tax assets V(XIX) 243,460,934.69 235,330,642.92 Other non-current assets V(XX) 6,476,807,112.87 6,373,567,093.74 Total non-current assets 17,027,577,191.47 16,933,587,663.78 TOTAL ASSETS 22,295,557,061.73 21,926,733,761.94
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202680 VIII. FINANCIAL REPORT (CONTINUED) Note Closing balance Balance at the end of the previous year (unaudited) (audited) Liabilities and Owner’s Equity Current liabilities: Short-term borrowings V(XXII) 293,171,730.56 293,188,903.61 Accounts payables V(XXIII) 525,067,490.33 522,488,062.31 Contract liabilities V(XXIV) 3,899,743.39 2,879,063.65 Employee benefits payable V(XXV) 63,892,291.48 123,052,405.44 Taxes payable V(XXVI) 110,885,984.14 82,398,623.76 Other payables V(XXVII) 666,892,412.39 282,812,388.24 Current portion of non-current liabilities V(XXVIII) 894,291,924.99 883,247,351.44 Total current liabilities 2,558,101,577.28 2,190,066,798.45 Non-current liabilities: Long-term borrowings V(XXIX) 6,526,241,515.76 7,246,754,307.83 Debentures payable V(XXX) 3,443,132,064.90 2,915,661,242.30 Lease liabilities V(XXXI) 2,278,978.80 2,238,208.53 Long-term payables V(XXXII) 227,332,763.68 226,631,151.10 Estimated liabilities V(XXXIII) 15,251,233.23 14,915,631.51 Deferred income V(XXXIV) 163,544,151.19 165,695,628.99 Deferred tax liabilities V(XIX) 498,260,998.12 492,442,540.22 Total non-current liabilities 10,876,041,705.68 11,064,338,710.48 Total liabilities 13,434,143,282.96 13,254,405,508.93
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 81 VIII. FINANCIAL REPORT (CONTINUED) Note Closing balance Balance at the end of the previous year (unaudited) (audited) Owners’ equity: Share capital V(XXXV) 1,430,584,798.00 1,430,584,350.00 Other equity instruments V(XXXVI) 217,555,699.79 217,556,068.55 Capital surplus V(XXXVII) 2,515,167,744.33 2,489,841,263.41 Less: treasury shares V(XXXVIII) 110,363,100.00 110,363,100.00 Other comprehensive income V(XXXIX) 2,035,030.28 2,079,875.32 Special reserve V(XL) 45,703,372.99 35,026,096.24 Surplus reserve V(XLI) 441,355,480.38 441,355,480.38 Undistributed profits V(XLII) 3,909,901,492.52 3,760,003,651.86 Total equity attributable to the owners of the company 8,451,940,518.29 8,266,083,685.76 Minority interests 409,473,260.48 406,244,567.25 Total owners’ equity 8,861,413,778.77 8,672,328,253.01 TOTAL LIABILITIES AND OWNERS’ EQUITY 22,295,557,061.73 21,926,733,761.94 The accompanying notes form an integral part of these financial statements. Cheng Suning Yi Zhiyong Zhao Linbin Legal representative: Principal in charge of accounting: Head of accounting department:
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202682 VIII. FINANCIAL REPORT (CONTINUED) BALANCE SHEET OF THE PARENT COMPANY AS AT 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) Note Closing balance Balance at the end of the previous year (unaudited) (audited) ASSETS Current assets: Cash at bank and on hand 713,433,770.68 673,191,711.06 Accounts receivables XVI(I) 238,028,920.62 251,949,626.44 Advances to suppliers 2,402,567.60 1,478,754.47 Other receivables XVI(II) 3,550,790,572.10 3,061,871,860.91 Current portion of non-current assets 294,500,000.00 333,500,000.00 Other current assets 45,283.03 911.32 Total current assets 4,799,201,114.03 4,321,992,864.20 Non-current assets: Long-term receivables 1,682,441,703.05 1,145,034,033.05 Long-term equity investments XVI(III) 6,604,186,099.70 6,437,707,159.31 Fixed assets 607,421.85 500,803.13 Right-of-use assets 1,524,648.72 Intangible assets 3,330,649.36 3,278,084.80 Deferred tax assets 748,303.40 718,886.67 Total non-current assets 8,291,314,177.36 7,588,763,615.68 TOTAL ASSETS 13,090,515,291.39 11,910,756,479.88
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 83 VIII. FINANCIAL REPORT (CONTINUED) Note Closing balance Balance at the end of the previous year (unaudited) (audited) LIABILITIES AND OWNERS’ EQUITY Current liabilities: Short-term borrowings 293,171,730.56 293,188,903.61 Accounts payables 88,937.38 40,594.89 Contract liabilities 9,152,542.38 9,762,711.87 Employee benefits payable 6,146,563.88 23,756,175.25 Taxes payable 928,870.64 779,366.43 Other payables 1,219,007,108.82 666,393,009.42 Current portion of non-current liabilities 137,401,599.74 79,764,940.68 Total current liabilities 1,665,897,353.40 1,073,685,702.15 Non-current liabilities: Long-term borrowings 1,140,980,000.00 1,403,900,000.00 Debentures payable 3,443,132,064.90 2,915,661,242.30 Total non-current liabilities 4,584,112,064.90 4,319,561,242.30 Total liabilities 6,250,009,418.30 5,393,246,944.45
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202684 VIII. FINANCIAL REPORT (CONTINUED) Note Closing balance Balance at the end of the previous year (unaudited) (audited) Owners’ equity: Share capital 1,430,584,798.00 1,430,584,350.00 Other equity instruments 217,555,699.79 217,556,068.55 Capital surplus 2,561,952,690.92 2,535,584,003.22 Less: treasury shares 110,363,100.00 110,363,100.00 Other comprehensive income –44,845.04 Surplus reserve 441,355,480.38 441,355,480.38 Undistributed profits 2,299,465,149.04 2,002,792,733.28 Total owners’ equity 6,840,505,873.09 6,517,509,535.43 TOTAL LIABILITIES AND OWNERS’ EQUITY 13,090,515,291.39 11,910,756,479.88 The accompanying notes form an integral part of these financial statements. Cheng Suning Yi Zhiyong Zhao Linbin Legal representative: Principal in charge of accounting: Head of accounting department:
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 85 VIII. FINANCIAL REPORT (CONTINUED) CONSOLIDATED INCOME STATEMENT FOR JANUARY TO JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) Item Note Current period Previous period (unaudited) (unaudited) I. Total revenue V(XLIII) 1,876,654,110.71 1,683,873,882.60 Including: revenue V(XLIII) 1,876,654,110.71 1,683,873,882.60 II. Total operating costs 1,273,164,527.85 1,187,500,809.26 Including: Operating costs V(XLIII) 939,290,120.75 849,854,998.38 Taxes and surcharges V(XLIV) 41,803,760.98 38,196,765.65 Selling expenses V(XLV) 861,461.09 560,846.25 General and administrative expenses V(XLVI) 117,730,663.06 105,224,608.65 Research and development expenses V(XLVII) 4,170,994.91 2,463,979.36 Financial expenses V(XLVIII) 169,307,527.06 191,199,610.97 Including: Interest expenses 170,855,600.96 193,144,259.39 Interest income 2,074,688.86 2,911,970.55 Add: Other income V(XLIX) 79,496,105.19 49,237,259.26 In vestment income (loss is represented by “–”) V(L) –182,642.57 Including: in come from investment in associated companies and joint ventures –182,642.57 Cr edit impairment losses (loss is represented by “–”) V(LI) –43,442,233.23 –46,871,866.39 Im pairment losses on assets (loss is represented by “–”) V(LII) 316,287.05 –2,794,310.98 Ga ins on disposal of assets (loss is represented by “–”) V(LIII) –40,837.05 –53.01 III. Operating profit (loss is represented by “–”) 639,636,262.25 495,944,102.22 Add: Non-operating income V(LIV) 1,011,113.03 808,803.94 Less: Non-operating expenses V(LV) 537,366.82 424,768.90 IV. Total profit (total loss is represented by “–”) 640,110,008.46 496,328,137.26 Less: Income tax expenses V(LVI) 151,253,117.27 97,751,254.87 V. Net profit (net loss is represented by “–”) 488,856,891.19 398,576,882.39 (1) Classified by continuity of operations 1. Net profit from continuing operations (net loss is represented by “–”) 488,856,891.19 398,576,882.39 (2) Classified by ownership of the equity 1. Attributable to shareholders of the Company (net loss is represented by “–”) 464,586,896.22 377,232,320.56 2. Minority interests (net loss is represented by “–”) 24,269,994.97 21,344,561.83
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202686 VIII. FINANCIAL REPORT (CONTINUED) Item Note Current period Previous period (unaudited) (unaudited) VI. Other comprehensive income, net of tax –44,845.04 Attributable to shareholders of the Company –44,845.04 (I) Ot her comprehensive income that will be reclassified to profit or loss –44,845.04 1. Ot her comprehensive income that may be reclassified to profit or loss under equity method –44,845.04 VII. Total comprehensive income 488,812,046.15 398,576,882.39 Attributable to shareholders of the Company 464,542,051.18 377,232,320.56 Attributable to minority interests 24,269,994.97 21,344,561.83 VIII. Earnings per share: (I) Basic earnings per share (RMB/share) V(LVII) 0.33 0.27 (II) Diluted earnings per share (RMB/share) V(LVII) 0.30 0.26 The accompanying notes form an integral part of these financial statements. Cheng Suning Yi Zhiyong Zhao Linbin Legal representative: Principal in charge of accounting: Head of accounting department:
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 87 VIII. FINANCIAL REPORT (CONTINUED) INCOME STATEMENT OF THE PARENT COMPANY FOR JANUARY TO JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) Item Note Current period Previous period (unaudited) (unaudited) I. Revenue XVI(IV) 48,989,977.73 65,175,727.58 Less: Operating costs XVI(IV) 6,176,892.22 4,417,844.73 Taxes and surcharges 299,974.70 259,964.01 General and administrative expenses 30,532,503.89 19,068,639.26 Research and development expenses 4,170,994.91 2,463,979.36 Financial expenses 73,089,689.59 72,896,617.52 Including: Interest expenses 77,076,239.60 74,024,573.29 Interest income 4,018,371.20 1,195,600.97 Add: Other income 316,860.51 319,078.42 Investment income (loss is represented by “–”) XVI(V) 676,412,163.81 1,144,810,979.56 Including: in come from investment in associates and joint ventures –182,642.57 Credit impairment losses (loss is represented by “–”) –117,666.95 –402,358.28 II. Operating profit (loss is represented by “–”) 611,331,279.79 1,110,796,382.40 Add: Non-operating income 774.80 III. Total profit (total loss is represented by “–”) 611,332,054.59 1,110,796,382.40 Less: Income tax expenses –29,416.73 12,011,359.30 IV. Net profit (net loss is represented by “–”) 611,361,471.32 1,098,785,023.10 (I) Net profit from continuing operations (net loss is represented by “–”) 611,361,471.32 1,098,785,023.10 V. Other comprehensive income, net of tax –44,845.04 (I) Other comprehensive income that will be reclassified to profit or loss –44,845.04 1. Other comprehensive income that may be reclassified to profit or loss under equity method –44,845.04 VI. Total comprehensive income 611,316,626.28 1,098,785,023.10 The accompanying notes form an integral part of these financial statements. Cheng Suning Yi Zhiyong Zhao Linbin Legal representative: Principal in charge of accounting: Head of accounting department:
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202688 VIII. FINANCIAL REPORT (CONTINUED) CONSOLIDATED CASH FLOW STATEMENT FOR JANUARY TO JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) Item Note Current period Previous period (unaudited) (unaudited) I. Cash flows from operating activities Cash received from sale of goods or rendering of services 1,782,512,632.78 1,594,938,345.18 Refund of taxes and surcharges 58,805,748.21 43,927,218.95 Cash received relating to other operating activities V(LIX) 1. 22,881,618.05 27,457,365.35 Sub-total of cash inflows 1,864,199,999.04 1,666,322,929.48 Cash paid for goods and services 514,399,656.80 455,456,178.66 Other cash paid relating to the construction of the PPP project 43,331,964.66 39,635,252.34 Cash paid to and on behalf of employees 317,090,125.45 304,815,550.22 Payments of taxes and surcharges 242,648,415.91 182,984,455.09 Cash paid relating to other operating activities V(LIX) 1. 41,328,743.81 51,187,430.14 Sub-total of cash outflows 1,158,798,906.63 1,034,078,866.45 Net cash flows from operating activities 705,401,092.41 632,244,063.03 II. Cash flows from investing activities Net cash received from disposals of fixed assets, intangible assets and other long-term assets 2,923.03 Cash received relating to other investing activities V(LIX) 2. Sub-total of cash inflows 2,923.03 Cash paid to acquire fixed assets, intangible assets and other long-term assets 79,074,327.47 157,340,959.51 Cash paid to acquire investments 7,865,370.00 Net cash paid for acquisition of subsidiaries and other business units 124,232,223.63 Cash paid relating to other investing activities V(LIX) 2. Sub-total of cash outflows 211,171,921.10 157,340,959.51 Net cash flows from investing activities –211,171,921.10 –157,338,036.48
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 89 VIII. FINANCIAL REPORT (CONTINUED) Item Note Current period Previous period (unaudited) (unaudited) III. Cash flows from financing activities Cash received from issuance of bonds 499,325,000.00 Cash received from borrowings 1,076,300,000.00 1,207,344,589.09 Cash received relating to other financing activities V(LIX) 3. Sub-total of cash inflows 1,575,625,000.00 1,207,344,589.09 Cash repayments of borrowings 2,021,292,809.87 1,467,737,433.35 Cash payments for distribution of dividends, profits or interest expenses 143,478,319.13 169,937,297.93 Including: D ividends or profits paid to minority shareholders by subsidiaries 16,000,000.00 Cash paid relating to other financing activities V(LIX) 3. 2,562,371.91 2,354,766.92 Sub-total of cash outflows 2,167,333,500.91 1,640,029,498.20 Net cash flows from financing activities –591,708,500.91 –432,684,909.11 IV. Effect of foreign exchange rate changes on cash and cash equivalents –29,470.93 –12,144.20 V. Net increase in cash and cash equivalents V(LX) 3. –97,508,800.53 42,208,973.24 Add: C ash and cash equivalents at the beginning of the period V(LX) 3. 1,542,841,791.84 867,810,323.28 VI. Cash and cash equivalents at the end of the period V(LX) 3. 1,445,332,991.31 910,019,296.52 The accompanying notes form an integral part of these financial statements. Cheng Suning Yi Zhiyong Zhao Linbin Legal representative: Principal in charge of accounting: Head of accounting department:
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202690 VIII. FINANCIAL REPORT (CONTINUED) CASH FLOW STATEMENT OF THE PARENT COMPANY FOR JANUARY TO JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) Item Note Current period Previous period (unaudited) (unaudited) I. Cash flows from operating activities Cash received from sale of goods or rendering of services 63,031,302.55 52,289,089.20 Cash received relating to other operating activities 30,848,575.37 29,538,664.86 Sub-total of cash inflows 93,879,877.92 81,827,754.06 Cash paid for goods and services 225,624.09 273,968.98 Cash paid to and on behalf of employees 38,232,170.95 34,792,904.32 Payments of taxes and surcharges 1,713,742.32 13,131,104.35 Cash paid relating to other operating activities 44,568,598.88 36,665,585.94 Sub-total of cash outflows 84,740,136.24 84,863,563.59 Net cash flows from operating activities 9,139,741.68 –3,035,809.53 II. Cash flows from investing activities Cash received from disposal of investments 1,478.72 Cash received from returns on investments 173,400,000.00 159,800,000.00 Cash received relating to other investing activities 450,165,979.04 245,553,053.54 Sub-total of cash inflows 623,567,457.76 405,353,053.54 Ca sh paid to acquire fixed assets, intangible assets and other long-term assets 1,944,408.30 590,612.64 Cash paid to acquire investments 22,865,370.00 Ne t cash paid for acquisition of subsidiaries and other business units 129,278,500.00 20,000,000.00 Cash paid relating to other investing activities 918,690,000.00 319,715,600.00 Sub-total of cash outflows 1,072,778,278.30 340,306,212.64 Net cash flows from investing activities –449,210,820.54 65,046,840.90
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 91 VIII. FINANCIAL REPORT (CONTINUED) Item Note Current period Previous period (unaudited) (unaudited) III. Cash flows from financing activities Cash received from issuance of bonds 499,325,000.00 Cash received from borrowings 850,000,000.00 803,000,000.00 Cash received relating to other financing activities 351,459,256.37 22,353,385.78 Sub-total of cash inflows 1,700,784,256.37 825,353,385.78 Cash repayments of borrowings 1,157,500,000.00 767,130,000.00 Ca sh payments for distribution of dividends, profits or interest expenses 60,810,891.27 41,762,704.13 Cash paid relating to other financing activities 2,158,186.00 1,596,000.00 Sub-total of cash outflows 1,220,469,077.27 810,488,704.13 Net cash flows from financing activities 480,315,179.10 14,864,681.65 IV. Effect of foreign exchange rate changes on cash and cash equivalents –2,040.62 –800.97 V. Net increase in cash and cash equivalents 40,242,059.62 76,874,912.05 Add: Ca sh and cash equivalents at the beginning of the period 673,191,711.06 329,688,819.47 VI. Cash and cash equivalents at the end of the period 713,433,770.68 406,563,731.52 The accompanying notes form an integral part of these financial statements. Cheng Suning Yi Zhiyong Zhao Linbin Legal representative: Principal in charge of accounting: Head of accounting department:
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202692 VIII. FINANCIAL REPORT (CONTINUED) CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY FOR JANUARY TO JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) Current period Attributable to owners of the parent company Other equity instruments Capital surplus Less: treasury shares Other comprehensive income Special reserve Surplus reserve Undistributed profits Sub-total Minority interests Total owners’ equityItem Share capital Preference shares Perpetual bonds Convertible bonds I. Balance at the end of the previous year (audited) 1,430,584,350.00 217,556,068.55 2,489,841,263.41 110,363,100.00 2,079,875.32 35,026,096.24 441,355,480.38 3 ,760,003,651.86 8,266,083,685.76 406,244,567.25 8,672,328,253.01 II. Opening balance for the year 1,430,584,350.00 217,556,068.55 2,489,841,263.41 110,363,100.00 2,079,875.32 35,026,096.24 441,355,48 0.38 3,760,003,651.86 8,266,083,685.76 406,244,567.25 8,672,328,253.01 III. Movements in the period (decrease is represented by “-”) 448.00 –368.76 25,326,480.92 –44,845.04 10,677,276.75 149,897,840.66 185,856,832.53 3,228,693.23 189,085,525.76 (1) Total comprehensive income –44,845.04 464,586,896.22 464,542,051.18 24,269,994.97 488,812,046.15 (2) Capital contribution and reduction from owners 448.00 –368.76 25,326,480.92 25,326,560.16 15,418,927.71 40,745,487.87 1. Capital contribution from owners of other equity instruments 448.00 –368.76 4,051.70 4,130.94 4,130.94 2. Share-base d payments credited to owners’ equity 25,322,429.22 25,322,429.22 1,042,206.78 26,364,636.00 3. Others 14,376,720.93 14,376,720.93 (3) Profit distribution –314,689,055.56 –314,689,055.56 –36,900,000.00 –351,589,055.56 1. Distribution to owners (or shareholders) –314,689,055.56 –314,689,055.56 –36,900,000.00 –351,589,055.56 (4) Special reserve 10,677,276.75 10,677,276.75 439,770.55 11,117,047.30 1. Appropriations in the period 27,824,085.32 27,824,085.32 1,185,469.77 29,009,555.09 2. Utilization in the period –17,146,808.57 –17,146,808.57 –745,699.22 –17,892,507.79IV. Closing balance for the period (unaudited) 1,430,584,798.00 217,555,699.79 2,515,167,744.33 110,363,100.00 2,035,030.28 45,703,372.99 441,355,480.38 3,909,901,492.52 8 ,451,940,518.29 409,473,260.48 8,861,413,778.77
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 93 VIII. FINANCIAL REPORT (CONTINUED) Previous period Attributable to owners of the parent company Other equity instruments Capital surplus Less: treasury shares Other comprehensive income Special reserve Surplus reserve Undistributed profits Sub-total Minority interests Total owners’ equityItem Share capital Preference shares Perpetual bonds Convertible bonds I. Balance at the end of the previous year (audited) 1,393,452,725.00 217,557,451.40 2,412,108,859.03 2,079,875.32 25,723,632.46 340,338,359.75 3,661,556,189.50 8,052,817,092.46 475,973,34 0.52 8,528,790,432.98 II. Opening balance for the year 1,393,452,725.00 217,557,451.40 2,412,108,859.03 2,079,875.32 25,723,632.46 340,338,359.75 3,661,556,189.50 8,052,817,092.46 475,973,34 0.52 8,528,790,432.98 III. Movements in the period (decrease is represented by “-”) 318.00 –276.57 2,986.88 8,259,879.46 98,541,690.76 106,804,598.53 –31,549,181.01 75,255,417.52 (1) Total comprehensive income 377,232,320.56 377,232,320.56 21,344,561.83 398,576,882.39 (2) Capital contribution and reduction from owners 318.00 –276.57 2,986.88 3,028.31 3,028.31 1. Capital contribution from owners of other equity instruments 318.00 –276.57 2,986.88 3,028.31 3,028.31 (3) Profit distribution –278,690,629.80 –278,690,629.80 –53,200,000.00 –331,890,629.80 1. Distribution to owners (or shareholders) –278,690,629.80 –278,690,629.80 –53,200,000.00 –331,890,629.80 (4) Special reserve 8,259,879.46 8,259,879.46 306,257.16 8,566,136.62 1. Appropriations in the period 24,577,130.77 24,577,130.77 1,144,768.05 25,721,898.82 2. Utilization in the period –16,317,251.31 –16,317,251.31 –838,510.89 –17,155,762.20IV. Closing balance for the period (unaudited) 1,393,453,043.00 217,557,174.83 2,412,111,845.91 2,079,875.32 33,983,511.92 340,338,359.75 3,760,097,880.26 8,159,621,690.99 444,424,15 9.51 8,604,045,850.50 The accompanying notes form an integral part of these financial statements. Cheng Suning Yi Zhiyong Zhao Linbin Legal representative: Principal in charge of accounting: Head of accounting department:
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202694 VIII. FINANCIAL REPORT (CONTINUED) STATEMENT OF CHANGES IN OWNERS’ EQUITY OF THE PARENT COMPANY FOR JANUARY TO JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) Current period Other equity instruments Item Share capital Preference shares Perpetual bonds Convertible bonds Capital surplus Less: treasury shares Other comprehensive income Surplus reserve Undistributed profits Total owners’ equity I. Balance at the end of the previous year (audited) 1,430,584,350.00 217,556,068.55 2,535,584,003.22 110,363,100.00 441,355,480.38 2,002,792,733.28 6,517,509,535. 43 II. Opening balance for the year 1,430,584,350.00 217,556,068.55 2,535,584,003.22 110,363,100.00 441,355,480.38 2,002,792,733.28 6,517,509,535.43 III. Movements in the period (decrease is represented by “-”) 448.00 –368.76 26,368,687.70 –44,845.04 296,672,415.76 322,996,337.66 (1) Total comprehensive income –44,845.04 611,361,471.32 611,316,626.28 (2) Capital contribution and reduction from owners 448.00 –368.76 26,368,687.70 26,368,766.94 1. Capital contribution from owners of other equity instruments 448.00 –368.76 4,051.70 4,130.94 2. Share-based payments credited to owners’ equity 26,364,636.00 26,364,636.00 (3) Profit distribution –314,689,055.56 –314,689,055.56 1. Distribution to owners (or shareholders) –314,689,055.56 –314,689,055.56 IV. Closing balance for the period (unaudited) 1,430,584,798.00 217,555,699.79 2,561,952,690.92 110,363,100.00 –44,845.04 441,355,480.38 2,299,465,149.04 6,840,505 ,873.09
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 95 VIII. FINANCIAL REPORT (CONTINUED) Previous period Other equity instruments Item Share capital Preference shares Perpetual bonds Convertible bonds Capital surplus Less: treasury shares Other comprehensive income Surplus reserve Undistributed profits Total owners’ equity I. Balance at the end of the previous year (audited) 1,393,452,725.00 217,557,451.40 2,459,616,787.00 340,338,359.75 1,511,674,690.45 5,922,640,013.60 II. Opening balance for the year 1,393,452,725.00 217,557,451.40 2,459,616,787.00 340,338,359.75 1,511,674,690.45 5,922,640,013.60 III. Movements in the period (decrease is represented by “-”) 318.00 –276.57 –1,686,440.16 820,094,393.30 818,407,994.57 (1) Total comprehensive income 1,098,785,023.10 1,098,785,023.10 (2) Capital contribution and reduction from owners 318.00 –276.57 –1,686,440.16 –1,686,398.73 1. Capital contribution from owners of other equity instruments 318.00 –276.57 2,986.88 3,028.31 2. Others –1,689,427.04 –1,689,427.04 (3) Profit distribution –278,690,629.80 –278,690,629.80 1. Distribution to owners (or shareholders) –278,690,629.80 –278,690,629.80 IV. Closing balance for the period (unaudited) 1,393,453,043.00 217,557,174.83 2,457,930,346.84 340,338,359.75 2,331,769,083.75 6,741,048,008.17 The accompanying notes form an integral part of these financial statements. Cheng Suning Yi Zhiyong Zhao Linbin Legal representative: Principal in charge of accounting: Head of accounting department:
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202696 VIII. FINANCIAL REPORT (CONTINUED) Notes to the 2026 Interim Financial Statements (Unless otherwise stated, amounts are in RMB) I. GENERAL INFORMATION Dynagreen Environmental Protection Group Co., Ltd. (the “Company”) is a joint-stock limited liability company established based on the reorganisation of Shenzhen Dynagreen Environmental Engineering Co., Ltd. on 23 April 2012. The registration number of the Company’s business license is 914403007152708132. The H shares of the Company were listed on The Stock Exchange of Hong Kong Limited on 19 June 2014; and A shares of the Company were listed on the Shanghai Stock Exchange on 11 June 2018. The industry of the Company is ecological protection and environmental governance. As of 30 June 2026, the total share capital accumulatively issued by the Company was 1,430,584,800 shares. The registered address is 2nd Floor, Northeastern Wing, Jiuzhou Electronic Building, 007 Keji South 12th Street, Nanshan District, Shenzhen, Guangdong Province, the People’s Republic of China. The head office is located in Shenzhen, Guangdong Province, the PRC. The main business activities which the Company and its subsidiaries (collectively, the “Group”) is actually engaged in are investment, construction, operation, maintenance and technical consulting business of public infrastructure in the environmental protection industry such as domestic waste incineration power plants. The parent company and the actual controller of the Company is Beijing State-Owned Assets Management Co., Ltd. (“BSAM”). II. BASIS OF PREPARATION OF FINANCIAL STATEMENTS (I) Basis of preparation The financial statements have been prepared in accordance with the Accounting Standards for Business Enterprises – Basic Standards and its relevant specific accounting standards, Application Guidance for Accounting Standards for Business Enterprises, Interpretation of Accounting Standards for Business Enterprises and other relevant requirements (together referred to as the “Accounting Standards for Business Enterprises”) promulgated by the Ministry of Finance of the PRC, and the relevant requirements in the Preparation Convention of Information Disclosure by Companies Offering Securities to the Public No. 15 – General Rules on Financial Reporting issued by the China Securities Regulatory Commission. In addition, these financial statements have been prepared in compliance with the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the applicable disclosure provisions of the Hong Kong Companies Ordinance. (II) Going concern These financial statements were prepared on a going concern basis. The Company is able to operate on a going concern for at least 12 months from the end of the Reporting Period, and there is no material matters affecting its operation as a going concern.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 97 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (I) Statement on compliance with the Accounting Standards for Business Enterprises The financial statements have been in compliance with the requirements of the Accounting Standards for Business Enterprises issued by the Ministry of Finance, reflecting the Company’s consolidated and parent company’s financial position as at 30 June 2026, and consolidated and parent company’s operating results and cash flows for January to June 2026 on a true and complete basis. (II) Accounting period Accounting year is the calendar year from 1 January to 31 December. (III) Operating cycle The Company takes 12 months as its operating cycle. (IV) Functional currency The functional currency of the Company is Renminbi (RMB). The functional currency of the Company’s subsidiaries is determined based on the primary economic environment in which they operate. The financial statements are presented in RMB. (V) Accounting treatment of business combinations under common control and not under common control Business combinations under common control: The assets and liabilities acquired by acquirer through business combination shall be measured at the carrying value of the assets, liabilities (including goodwill arising from the acquisition of the acquiree by ultimate controlling party) of the acquiree in the consolidated financial statements of the ultimate controlling party at the date of combination. The difference between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination (or total nominal value of the issued shares) is adjusted to capital premium in capital reserve. If the capital reserve is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings. Business combinations not under common control: The cost of combination is the assets paid, the liabilities incurred or committed and fair value of the equity securities issued by the acquirer for acquisition of control over the acquiree on the date of acquisition. Where the cost of combination is higher than the fair value of the identifiable net assets acquired from the acquiree in business combination, such difference shall be recognised as goodwill; where the cost of combination is less than the fair value of the identifiable net assets acquired from the acquiree in business combination, such difference shall be charged to current profit or loss. Each of the identifiable assets, liabilities and contingent liabilities of the acquiree, which are acquired in the combination and meet the criteria for recognition, shall be measured at fair value on the date of acquisition. The direct relevant expenses incurred for the business combinations are recognised as the profit or loss in the period when the costs are incurred; the transaction costs for the equity securities or debt securities issued for business combination shall be recognised as the initial recognition amount of equity securities or debt securities.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 202698 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (VI) Criteria of control and preparation method of consolidated financial statements 1. Criteria of control The scope of consolidation of the consolidated financial statements is determined on the basis of control, and the scope of consolidation comprises the Company and all of its subsidiaries. Control refers to the power of a company over the investee, the rights to enjoy variable returns from its involvement in relevant activities of the investee, and the ability to use its power over the investee to affect the amount of its returns. 2. Consolidation procedures When preparing the consolidated financial statements, the Company considers the entire enterprise group as a single accounting entity and presents the overall financial position, operating results and cash flows of the enterprise group based on the consistent accounting policies. The impact of internal transactions between the Company and its subsidiaries, and among its subsidiaries, shall be offset. If internal transactions indicate impairment losses on relevant assets, such losses shall be recognised in full. Any inconsistent accounting policies and accounting period adopted by a subsidiary will be subject to necessary adjustments to align with those of the Company when preparing the consolidated financial statements. Owners’ equity, net profit or loss of the current period and comprehensive income attributable to minority shareholders of the current period of subsidiaries are stated separately under owners’ equity in the consolidated balance sheet, net profit in the consolidated income statement and total comprehensive income respectively. Loss of the current period assumed by minority shareholders of a subsidiary in excess of minority shareholders’ share of owners’ equity in that subsidiary at the beginning of the period is offset against minority interests. (1) Addition of subsidiary or business During the Reporting Period, if there is an addition of subsidiary or business due to business combination under common control, the operating results and cash flow of the subsidiary or business combination from the beginning of the period to the end of the Reporting Period will be included in the consolidated financial statements, and the amounts at the beginning of the period in the consolidated financial statements and relevant items in the comparative statements will also be adjusted as if the reporting entity after combination had been existing since the control of the ultimate controlling party started. Where control over the investee under common control is obtained due to reasons such as increase in investments, for equity investment held before the control over the acquiree is obtained, profit or loss, other comprehensive income and other changes in net assets recognised from the later of the acquisition of the original equity interest and the date when the acquirer and the acquiree are placed under common control until the date of combination are offset against retained profit at the beginning of the period of the comparative financial statements or profit or loss of the period respectively. During the Reporting Period, if there is an addition of subsidiary or business due to business combination not under common control, it shall be included, from the date of purchase, in the consolidated financial statements based on the fair value of each of the identifiable assets, liabilities and contingent liabilities determined on the date of purchase.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 99 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (VI) Criteria of control and preparation method of consolidated financial statements (Continued) 2. Consolidation procedures (Continued) (1) Addition of subsidiary or business (Continued) Where control over the investee not under common control is obtained due to reasons such as increase in investments, for the equity interest of the acquiree held before the date of purchase, the Company remeasures the equity interest at its fair value as at the date of purchase, and any difference between the fair value and its book value will be accounted for as investment gains of the period. Other comprehensive income that will be reclassified into losses and profits and other changes in owners’ equity under equity accounting with respect to the equity interest in the acquiree held before the date of purchase are transferred to investment gains of the period to which the date of purchase belongs. (2) Disposal of subsidiary Ǻ General treatment for disposal When control over the investee is lost due to the disposal of part of the equity investment or other reasons, the Company re-measures the remaining equity investment after the disposal at fair value as at the date on which control is lost. The difference between the sum of the consideration received from equity disposal and the fair value of the remaining equity interest and the sum of the net assets of the subsidiary proportionate to the original shareholding accumulated from the date of purchase or combination and goodwill is included in investment gains of the period during which the control is lost. Other comprehensive income that will be reclassified into losses and profits and other changes in owners’ equity under equity accounting with respect to the equity investment in the original subsidiary are transferred to investment gains of the period during which the control is lost. ǻ Stepwise disposal of subsidiary In respect of stepwise disposal of equity investment in a subsidiary through multiple transactions until control is lost, if the terms, conditions and economic effects of the transactions of equity investment in the subsidiary satisfy one or more of the following conditions, the transactions are normally accounted for as a package of transactions: i. these transactions are entered into simultaneously or after considering the effects of each other; ii. these transactions constitute a complete commercial result as a whole; iii. one transaction is conditional upon at least one of the other transactions; iv. one transaction is not economical on its own but is economical when considering together with other transactions.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026100 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (VI) Criteria of control and preparation method of consolidated financial statements (Continued) 2. Consolidation procedures (Continued) (2) Disposal of subsidiary (Continued) ǻ Stepwise disposal of subsidiary (Continued) Where the transactions constitute a package of transactions, the Company accounts for the transactions as a transaction of disposal of a subsidiary resulting in the loss of control; the difference between the amount received each time for disposal before control is lost and the net assets of such subsidiary corresponding to the disposal of investment is recognised as other comprehensive income in the consolidated financial statements, and upon loss of control, is transferred to profit or loss of the period during which control is lost. Where the transactions do not constitute a package of transactions, before the loss of control, the transactions are accounted for based on partial disposal of equity investment in a subsidiary that does not involve loss of control; when control is lost, they are accounted for using the general method for disposal of subsidiaries. (3) Purchase of minority interests in subsidiary For the difference between the long-term equity investment newly acquired due to the purchase of minority interests and the share of net assets of the subsidiary that the Company is entitled to calculated according to the new shareholding accumulated from the date of purchase or date of combination, share premium of the capital reserve in the consolidated balance sheet will be adjusted; where share premium of the capital reserve is insufficient for the write-down, retained profit will be adjusted. (4) Partial disposal of equity investment in subsidiary without loss of control For the difference between the consideration received from disposal and the net assets of the subsidiary that the Company is entitled to corresponding to the long-term equity investment disposed accumulated from the date of purchase or date of combination, share premium of the capital reserve in the consolidated balance sheet will be adjusted; where share premium of the capital reserve is insufficient for the write-down, retained profit will be adjusted.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 101 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (VII) Classification of joint arrangements and accounting treatment for joint operations Joint arrangements can be classified into joint operations and joint ventures. Joint operations represent the joint arrangement that a party to a joint arrangement has rights to the assets, and obligations for the liabilities, relating to such arrangement. The Group recognises the following items in relation to its share of benefits in joint operations: (1) the assets held solely by the Group and those jointly held on a prorate basis; (2) the liabilities assumed solely by the Group and those jointly assumed on a pro-rata basis; (3) the income generated from the sale of the products of the joint operation attributable to the Group; (4) the income generated by the joint operation from the sale of products on a pro-rata basis; (5) the expenses incurred solely by the Group and those incurred by the joint operation on a pro-rata basis. Please refer to Note “III. (XIII) Long-term equity investments” for details on the equity method adopted by the Group on investment in joint ventures. (VIII) Recognition standard for cash and cash equivalents Cash represents the Group’s cash on hand and deposits that can be used readily for payments. Cash equivalents represent investments held by the Group that satisfy four conditions, namely short-term, highly liquid, readily convertible to known amounts of cash, and subject to an insignificant risk of changes in value. (IX) Foreign currency transactions and translation of financial statements denominated in foreign currency 1. Foreign currency transactions Foreign currency transactions shall be translated into RMB at the spot exchange rate on the day when the transactions occurred. Balance sheet date foreign currency monetary items shall be translated using the spot exchange rate at the balance sheet date. The resulting exchange difference are recognised in profit or loss for the current period, except for those differences related to a specific-purpose borrowing denominated in foreign currency for acquisitions and construction of the qualified assets, which should be capitalised as cost of the borrowings.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026102 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (IX) Foreign currency transactions and translation of financial statements denominated in foreign currency (Continued) 2. Translation of financial statements denominated in foreign currency The assets and liabilities in the balance sheets are translated at the spot exchange rates on the balance sheet date; except for “Undistributed profit” items, all items under owner’s equity are translated at the spot exchange rates when incurred. The income and expense items in the income statement are translated at the spot exchange rates on the transaction dates. On disposal of foreign operations, exchange differences in financial statements denominated in foreign currencies related to the foreign operation shall be transferred from owner’s equity items to profit or loss to profit or loss from disposal for the current period. (X) Financial instruments One of the financial assets, financial liabilities or equity instruments is recognised when the Group becomes a party to the contract of the financial instruments. 1. Classification of financial instruments According to the business model of the Group for management of financial assets and the contractual cash flow characteristics of financial assets, financial assets are classified at the initial recognition as financial assets measured at amortised cost, or financial assets measured at fair value through other comprehensive income, or other financial assets that are measured at fair value through current profit or loss. The Group shall classify financial assets that meet the following conditions and are not designated as financial assets at fair value through current profit or loss as financial assets measured at amortised cost: – the objective of the business model is to collect contractual cash flows; – the contractual cash flows are solely payment of the principal and the interest based on the outstanding principal amount. The Group shall classify financial assets that meet the following conditions and are not designated as financial assets at fair value through current profit or loss as financial assets (debt instruments) measured at fair value through other comprehensive income: – the objective of the business model for managing such financial assets is both to collect contractual cash flows and to dispose of the financial assets; – the contractual cash flows are solely payment of the principal and the interest based on the outstanding principal amount. For an investment in equity instruments not held for trading purposes, the Group may irrevocably designate it as financial assets (equity instruments) measured at fair value through other comprehensive income at the initial recognition. This designation is made on an investment-byinvestment basis and the relevant investment meets the definition of equity instrument from the perspective of the issuer.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 103 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (X) Financial instruments (Continued) 1. Classification of financial instruments (Continued) All financial assets not classified as measured at amortised cost or fair value through other comprehensive income as described above are measured at fair value through current profit or loss. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at fair value through other comprehensive income as at fair value through current profit or loss if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. Financial liabilities, at initial recognition, are classified into financial liabilities at fair value through current profit or loss and financial liabilities measured at amortised cost. When meeting any of the following criteria, the Group may, at initial recognition, designate a financial liability as measured at fair value through current profit or loss: 1) Such designation would eliminate or significantly reduce a measurement or recognition inconsistency. 2) A group of financial liabilities or financial assets and financial liabilities is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the group is provided internally on that basis to the entity’s key management personnel. 3) The financial liabilities include embedded derivatives which can be split separately. 2. Recognition basis and measurement method of financial instruments (1) Financial assets measured at amortised cost Financial assets measured at amortised cost, including notes receivables, trade receivables, other receivables, long-term receivables, and debt investments, are initially measured at fair value plus relevant transaction costs. Trade receivables that do not contain significant financing components and trade receivables that the Group has decided not to consider for a financing component of no more than one year are initially measured at the contractual transaction price. Interest calculated under the effective interest method during the period of holding is included in current profit or loss. When recovering or disposing, the difference between the price obtained and the book value of the financial asset is included in current profit or loss.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026104 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (X) Financial instruments (Continued) 2. Recognition basis and measurement method of financial instruments (Continued) (2) Financial assets (debt instruments) measured at fair value through other comprehensive income Financial assets (debt instruments) measured at fair value through other comprehensive income, including financing receivables and other debt investments, are initially measured at fair value plus relevant transaction costs. These financial assets are subsequently measured at fair value, with changes in fair value are included in other comprehensive income except for interest, impairment losses or gains and exchange gains or losses calculated using the effective interest method. On derecognition, the accumulated gain or loss previously recognised in other comprehensive income is transferred out from other comprehensive income and recognised in current profit or loss. (3) Financial assets (equity instruments) measured at fair value through other comprehensive income Financial assets (equity instruments) measured by fair value through other comprehensive income, including other equity instruments, are initially measured at fair value plus relevant transaction costs, and subsequently measured at fair value through other comprehensive income. The dividends received are included in current profit or loss. When derecognised, the accumulated gain or loss previously recognised in other comprehensive income is transferred from other comprehensive income to retained earnings. (4) Financial assets measured at fair value through current profit or loss Financial assets measured at fair value through current profit or loss, including held-for-trading financial assets, derivative financial assets and other non-current financial assets, are initially measured at fair value with relevant transaction costs included in current profit or loss, and subsequently measured at fair value through current profit or loss. (5) Financial liabilities measured at fair value through current profit or loss Financial liabilities measured at fair value through current profit or loss, including held-fortrading financial liabilities, derivative financial liabilities, etc., are initially measured at fair value with relevant transaction costs recognised in current profit or loss. Such financial liabilities are subsequently measured at fair value. Changes in fair value are recognised in current profit or loss. On derecognition, the difference between the carrying amount and the consideration paid is recognised in current profit or loss. (6) Financial liabilities measured at amortised cost Financial liabilities measured at amortised cost, including short term borrowings, bills payable, accounts payable, other payables, long-term borrowings, bonds payable and long-term payables, are initially measured at fair value plus relevant transaction costs. Interest calculated under the effective interest method during the period of holding is included in current profit or loss. On derecognition, the difference between the consideration paid and the carrying amount of the financial liability is recognised in current profit or loss.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 105 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (X) Financial instruments (Continued) 3. Derecognition of financial assets and recognition basis and measurement method for financial asset transfers The Group derecognizes a financial asset if it meets one of the following conditions: – The contractual rights to receive the cash flows from the financial asset expire; – The financial asset has been transferred, and substantially all the risks and rewards of ownership of the financial asset have been transferred to the transferee; – The financial asset has been transferred, and the Group neither transferred nor retained substantially all rewards related to the ownership of the financial assets, but did not retain its control over the said financial assets. If the Group revises or renegotiates the contract with the counterparty and the modification constitutes substantial modification, the original financial liability is derecognised and the new financial liability is recognised in accordance with the revised terms. When transferring a financial asset, if the Company retains substantially all risks and rewards of ownership of the financial asset, the Company shall continue to recognize such financial asset. When judging whether the transfer of a financial asset meets the above criteria for derecognition, the substance-over-form principle shall be applied. The Company differentiates the transfer of a financial asset as full transfer or partial transfer. If the full transfer of a financial asset meets the criteria for derecognition, then the difference between the following two included in current profit or loss: (1) The book value of the financial asset transferred; (2) The sum of the consideration received from the transfer and the total amount of the fair value changes that is directly charged or credited to owners’ equity (if the financial asset transferred is a financial asset (debt instruments) at fair value through other comprehensive income). When the partial transfer of a financial asset meets the criteria for derecognition, the entire book value of the financial asset transferred shall be allocated between the part derecognized and the part to be recognized based on their respective fair value, with the difference between the following two included in current profit or loss: (1) The book value of the part that is derecognized; (2) The sum of the consideration attributable to the part derecognized and the total amount of the fair value changes that is directly charged or credited to owners’ equity and attributable to the part derecognized (if the asset transferred is a financial asset (debt instruments) at fair value through other comprehensive income). If the transfer of a financial asset does not meet the criteria for derecognition, the financial asset shall continue to be recognized and the consideration received is recognized as a financial liability.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026106 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (X) Financial instruments (Continued) 4. Derecognition of financial liabilities If all or part of the current obligations of a financial liability have been discharged, the financial liability or part of it will be derecognized; if the Group signs an agreement with the creditor to replace the existing financial liability with new financial liability of substantially different contractual terms, the existing financial liability shall be derecognized while the new financial liability shall be recognized. If substantial changes are made to the contractual terms (in whole or in part) of the existing financial liability, the existing financial liability (or part of it) shall be derecognized, and the financial liability after the modification of terms shall be recognized as a new financial liability. When a financial liability is derecognized in whole or in part, the difference between the book value of the financial liability derecognized and the consideration paid (including the non-cash assets transferred out or the new financial liability assumed) shall be included in current profit or loss. If the Group repurchases part of a financial liability, the book value of the entire financial liability is allocated between the part that continues to be recognized and the part that is derecognized on the repurchase date based on their respective relative fair value. The difference between the book value assigned to the part derecognized and the consideration paid (including the non-cash assets transferred out or the new financial liability assumed) shall be included in current profit or loss. 5. Determination of fair value of financial assets and financial liabilities As for financial instruments with an active market, their fair values are determined by quoted prices in the active market. As for financial instruments without an active market, their fair values are determined by using valuation techniques. At the time of valuation, the Group adopts valuation techniques that are applicable in the current circumstances and sufficiently supported by available data and other information, and selects inputs that are consistent with the characteristics of the assets or liabilities considered by the market participants in the transactions of the relevant assets or liabilities, and prioritizes the use of relevant observable inputs. Unobservable inputs are used only if the relevant observable inputs are unavailable or not reasonably available.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 107 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (X) Financial instruments (Continued) 6. Test and accounting methods for impairment of financial instruments The Group performs impairment accounting on the basis of the expected credit losses for financial assets measured at amortized cost financial assets (debt instruments) measured at fair value through other comprehensive income and the financial guarantee contract, etc. The probability-weighted amount of the difference in present value between the contractual cash flow of receivable from contracts and the cash flow expected to be received, weighted with the risk of default, will be measured by taking into account of reasonable and valid information on, among other things, past events, current status and the forecast of future economic conditions to recognize the expected credit losses. For trade receivables and contract assets formed by the transactions regulated in the Accounting Standards for Business Enterprises No. 14 – Revenue whether contain significant financing components or otherwise, the Group always measures the loss provision at the amount equal to the lifetime expected credit loss. For lease receivables formed by the transactions regulated in the Accounting Standards for Business Enterprises No. 21 – Lease, the Group chooses to always measure the loss provisions at the amount equal to the lifetime expected credit loss. For other financial instruments, the Group assesses at each balance sheet date the changes in the credit risk of the relevant financial instrument since initial recognition. In determining changes in the risk of default during the expected lifetime of a financial instrument and assessing whether the credit risk of a financial instrument has increased significantly since initial recognition, the Group compares the risk of default occurring on the financial instrument assessed at the balance sheet date with that assessed at the date of initial recognition. Usually, if it is overdue for more than 30 days, the Group will consider that the credit risk of the financial instrument has increased significantly, unless there is conclusive evidence to prove that the credit risk on a financial instrument has not increased significantly since initial recognition. For a financial instrument with lower credit risk on the balance sheet date, the Group assumes that its credit risk on a financial instrument has not increased significantly since the initial recognition. If the credit risk of a financial instrument has increased significantly since the initial recognition, the Group measures the loss provisions according to the amount of the lifetime expected credit loss of the financial instrument; if the credit risk on a financial instrument has not increased significantly since the initial recognition, the Group measures the loss provisions at an amount equal to the next 12-month expected credit losses of the financial instrument. The resulting increase in or reversal of loss provision shall be included in current profit or loss as impairment losses or gains. For financial assets (debt instruments) measured at fair value through other comprehensive income, the loss provision is recognized in other comprehensive income, and the impairment losses or gains shall be included in current profit or loss, without reducing the book value of the financial asset as stated in the balance sheet.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026108 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (X) Financial instruments (Continued) 6. Test and accounting methods for impairment of financial instruments (Continued) If there is objective evidence that a certain receivable has been credit impaired, the Group shall make impairment provisions for the receivable on an individual basis. Except for the above-mentioned receivables for which bad debt provisions are made on individual basis, the Group divides the remaining financial instruments into several portfolios based on credit risk characteristics, and determines expected credit losses on the basis of the portfolios. The Group’s portfolio categories and determination basis of expected credit losses for notes receivables, accounts receivables, receivables financing, other receivables, contract assets, long-term receivables, etc. are as follows: Item Basis for determination Portfolio of notes receivables Bank acceptance notes Portfolio 1 of accounts receivables Receivables from renewable energy subsidies and tariff Portfolio 2 of accounts receivables Receivables from waste treatment fee Portfolio 1 of contract assets Contract assets generated by electricity sales contract Portfolio 2 of contract assets (Comprising contract assets included in other non-current assets) Contract assets generated by PPP project construction services Portfolio 1 of other receivables VAT refunds receivable and other tax refunds receivable Portfolio 2 of other receivables Agent collection of payment for disposal of fly ash Portfolio 3 of other receivables Others Portfolio 1 of long-term receivables Receivables from BT projects (Note) Portfolio 2 of long-term receivables Performance bond Note: BT projects refer to the Group’s investment and construction business of public infrastructure in the environmental prote ction industry such as domestic waste incineration power plants on a “build-transfer” basis. For accounts receivables, notes receivables and contract assets (including contract assets included in other non-current assets), long-term receivables (receivables from BT projects) arising from sale of goods and rendering of services in the ordinary course of operating activities which are classified into portfolios, the Group calculates the expected credit loss (“ECL”) with reference to historical credit loss experience, current conditions and forecasts of future economic conditions, and based on the exposure at default and the lifetime ECL rates. For long-term receivables (performance bond) and other receivables that are classified into portfolios, the Group calculates the ECL with reference to historical credit loss experience, current conditions and forecasts of future economic conditions, and based on the exposure at default and the 12-month or lifetime ECL rates. Where the Group no longer has a reasonable expectation that the contractual cash flows from a financial asset will be fully or partially recovered, the book balance of the financial asset shall be written down directly.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 109 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XI) Inventories 1. Classification and costs for inventories Inventories are classified into turnover materials, etc. Inventories are measured initially at cost. Cost of inventories comprises costs of purchase, costs of processing and other expenditures incurred in bringing the inventories to their present location and condition. 2. Measurement for inventories delivered The price of inventories is calculated using weighted average method at the end of the month when they are delivered. 3. Inventory system The Company adopts perpetual inventory system on-site inventory system. 4. Amortization of low-value consumables Low-value consumables are amortized using one-off write-off method. 5. Recognition criteria and provision methods for the provision for impairment of inventories On the balance sheet date, inventories are stated at the lower of cost and net realisable value. When the cost of inventories was higher than their net realisable value, the provision decline in value of inventories shall be made. Net realisable value is the estimated selling price of the inventories in the ordinary course of business deducting the estimated costs upon completion, the estimated selling expenses and the related taxes. After the provision for decline in value of inventories has been made, if the factors resulting in the previously recorded inventory impairment disappeared, as a result of which the net realisable value of the inventories became higher than its book value, it would be written back to the extent of the original provision for decline in value of inventories made, and such written-back amounts would be charged to the current profit or loss.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026110 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XII) Contract assets 1. Recognition and standard of contract assets The Group presents contract assets or contract liabilities in the balance sheet based on the relationship between performance obligations and customer payments. The consideration that the Group has the right (and this right depends on factors other than passage of time) to receive for goods transferred to customers is listed as a contract assets. Contract assets and contract liabilities under the same contract shall be shown on a net basis. The right of the Group to charge the customer unconditionally (only depending on the passage of time) is listed as a receivable individually. 2. Method of determination of expected credit loss of contract assets and accounting treatment methods For the method of determination of expected credit loss of contract assets and accounting treatment methods, please refer to Note “III. (X) 6. Test and accounting methods for impairment of financial instruments”. (XIII) Long-term equity investments 1. Joint control or significant influence criterion Joint control is the contractually agreed sharing of control of an arrangement, and exists only when decisions about the relevant activities of the arrangement require the unanimous consent of the parties sharing control. If the Company together with the other joint venture parties can jointly control over the investee and are entitled to the right of the net assets of the investee, the investee is a joint venture of the Company. Significant influence refers to the power to participate in making decisions on the financial and operating policies of investee, but not the power to control, or jointly control, the formulation of such policies with other parties. Where the Company can exercise significant influence over an investee, the investee is an associate of the Company. 2. Determination of initial investment cost (1) Long-term equity investments acquired through business combination For a long-term equity investment in subsidiaries resulting from a business combination involving entities under common control, the initial investment cost of long-term equity investments are its share of the book value of the owner’ equity of the acquiree in the financial statements of the ultimate controlling party on the date of combinations. The difference between initial investment cost of long-term equity investment and the carrying value of paid consideration is to adjust share premium in the capital reserve. If the balance of share premium in the capital reserve is insufficient, any excess is adjusted to retained earnings. In connection with imposing control over the investee under joint control as a result of additional investment and other reasons, the difference between initial investment cost of long-term equity investment according to the aforesaid principle, and the sum of the carrying value of long-term equity investment before combination and the carrying value of newly paid consideration for additional shares acquired on the date of combination is to adjust share premium. If the balance of share premium is insufficient, any excess is adjusted to retained earnings.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 111 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XIII) Long-term equity investments (Continued) 2. Determination of initial investment cost (Continued) (1) Long-term equity investments acquired through business combination (Continued) For a long-term equity investment in subsidiaries resulting from a business combination involving entities not under common control, the cost of the combination determined on the date of acquisition shall be taken as the initial investment cost of the long-term equity investment. In connection with imposing control over the investee not under joint control as a result of additional investment and other reasons, the initial investment cost shall be the sum of the carrying value of the equity investment originally held and the newly increased investment cost. (2) Long-term equity investments acquired by other means other than business combination The initial investment cost of a long-term equity investment obtained by the Company by cash payment shall be the purchase cost which is actually paid. The initial investment cost of a long-term equity investment obtained by the Company by means of issuance of equity securities shall be the fair value of the equity securities issued. 3. Subsequent measurement and recognition of profit or loss (1) Long-term equity investment accounted for by cost method Long-term equity investment in a subsidiary is accounted for using cost method unless the investment meets the conditions of held-for-sale. Except for the actual consideration paid for the acquisition of investment or the declared but not yet distributed cash dividends or profits which are included in the consideration, investment gains are recognized as the Company’s share of the cash dividends or profits declared by the investee. (2) Long-term equity investment accounted for by equity method Long-term equity investments in associates and jointly controlled entities are accounted for using equity method. Where the initial investment cost of a long-term equity investment exceeds the Company’s share of the fair value of the investee’s identifiable net assets at the acquisition date, no adjustment shall be made to the initial investment cost; where the initial investment cost is less than the Company’s share of the fair value of the investee’s identifiable net assets at the acquisition date, the difference shall be charged to current profit or loss and the cost for longterm equity investment shall be adjusted. The Company recognizes the investment income and other comprehensive income according to its shares of net profit or loss and other comprehensive income realized by the investee respectively, and simultaneously makes adjustment to the carrying value of long-term equity investments. The carrying value of long-term equity investment shall be reduced by attributable share of the profit or cash dividends for distribution declared by the investee. In relation to other changes of owner’s equity (the “Other Changes of Owner’s Equity”), except for net profits or losses, other comprehensive income and profit distribution of the investee, the carrying value of long-term equity investment shall be adjusted and included in owner’s equity. The Company’s share of net profit or loss, other comprehensive income and Other Changes of Owner’s Equity of an investee is determined based on the fair value of identifiable net assets of the investee at the time when the investment is obtained, and according to the accounting policies and accounting period of the Company, recognition shall be made to the net profit of the investee after the adjustment and to other comprehensive income, etc.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026112 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XIII) Long-term equity investments (Continued) 3. Subsequent measurement and recognition of profit or loss (Continued) (2) Long-term equity investment accounted for by equity method (Continued) The unrealized profit or loss which is attributable to the Company calculated based on its attributable percentage resulting from transactions between the Company and its associates or joint venture shall be eliminated in, based on which investment income shall be recognized, other than those assets consumed or disposed of which constitute business. Any unrealized losses resulting from transactions with the investee, which are attributable to impairment of assets, shall be fully recognized. The Company discontinues recognising its share of net losses of the investee after the carrying amount of the long-term equity investment and any long-term interest that in substance forms part of the Company’s net investment in the associate or the joint venture is reduced to zero, except to the extent that the Company has an obligation to assume additional losses. Where net profits are subsequently made by the associate or joint venture, the Company resumes recognising its share of those profits only after its share of the profits equals the share of losses not recognised. (3) Disposal of long-term equity investments For disposal of a long-term equity investment, the difference between the book value and the consideration actually received shall be included in current profit or loss. For the certain long-term equity investment treated under the equity method, where the remaining equity continues to be accounted for using the equity method, the other comprehensive income previously recognised under the equity method shall be transferred in proportion by using the same basis as the investee used for direct disposal of relevant assets or liabilities. Other Changes of Owner’s Equity shall be transferred in proportion into current profit or loss. When the Group loses the mutual control or material influence over the investee due to disposal of equity investment and other reasons, for other comprehensive income recognized in the original equity investment due to the equity method is adopted, it shall be treated using the same accounting basis as the investee used for direct disposal of relevant assets or liabilities when ceasing to use the equity method. Other Changes of Owner’s Equity shall be transferred into the current profit or loss when ceasing to use the equity method. When the Group loses the control over the investee due to partially disposal of equity investment and other reasons, the remaining equity interest after disposal shall be accounted for under equity method in preparation of separate financial statements provided that joint control or material influence over the investee can be imposed and shall be adjusted as if such remaining equity interest had been accounted for under the equity method since being obtained. The other comprehensive income previously recognised before obtaining the control over the investee shall be transferred in proportion by using the same basis as the investee used for direct disposal of relevant assets or liabilities. Other Changes of Owner’s Equity recognized as a result of the adoption of the equity method shall be transferred to the current profit or loss on pro rata basis. Where the remaining equity interest after disposal cannot exercise joint control or exert material influence over the investee, it shall be recognised as financial asset, and the difference between fair value and the carrying value on the date of losing control shall be included in current profit or loss. All the other comprehensive income and Other Changes of Owner’s Equity recognised before obtaining the control over the investee shall be transferred.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 113 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XIII) Long-term equity investments (Continued) 3. Subsequent measurement and recognition of profit or loss (Continued) (3) Disposal of long-term equity investments (Continued) For disposal of the equity investment in a subsidiary in stages by multiple transactions resulting in the loss of control, where the Company accounts for a package deals, accounting treatment shall be conducted for all transactions as the equity investment for disposal of a subsidiary and the transaction in the loss of control. In the individual financial statements, the differences between the consideration disposed and the corresponding carrying value of long-term equity investment of the disposed equity in each transaction prior to the loss of control shall be recognised in other comprehensive income first and transferred to the current profit or loss when the parent eventually loses control over the subsidiary. Where the Company does not account for a package deals, accounting treatment shall be conducted for each transaction individually. (XIV) Fixed assets 1. Recognition and initial measurement of fixed assets Fixed assets are tangible assets that are held for use in production or supply of goods or services, for rental to others, or for administrative purposes, and have a useful life of more than one accounting year. Fixed asset is recognised when it meets the following conditions: (1) It is probable that the economic benefits associated with the fixed asset will flow to the enterprise; (2) Its cost can be reliably measured. Fixed assets are initially measured at cost (and taking into account the effect of estimated costs of disposal). For subsequent expenses related to fixed assets, if the related economic benefits are likely to flow into the enterprise and its cost could be reliably measured, such expenses are included in the cost of the fixed asset; and the carrying amount of the replaced part will be derecognised; all other subsequent expenses are included in current profit or loss upon occurrence.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026114 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XIV) Fixed assets (Continued) 2. Methods for depreciation Except the subsidiary of the Company, Lvyi (Huludao) Environmental Services Co., Ltd. (defined as “Huludao Lvyi Company”), whose fixed asset is depreciated using the unit-ofproduction method, and fixed assets purchased with safety production expenses, other fixed assets are depreciated by categories using the straight-line method, and the annual depreciation rates are determined by categories based upon their estimated useful lives and their estimated residual values. For fixed assets that have made provision for the impairment, the amount of depreciation of it is determined by carrying value after deducting the provision for the impairment based on useful life during the future period. Where different components of a fixed asset have different useful lives or generate economic benefits for the enterprise in different ways, different depreciation rates or depreciation methods shall apply, and each component is depreciated separately. The depreciation methods, useful life of depreciation, residual value rate and annual depreciation rate of each category of fixed assets are as follows: Category Depreciation methods Useful life (year) Residual value rate (%) Annual depreciation rate (%) Buildings Straight-line method 20–50 5 1.90–4.75 Machinery and equipment Straight-line method 3–15 0–5 6.33–33.33 Motor vehicles Straight-line method 3–10 0–10 9.00–33.33 Others Straight-line method 3–20 0–10 4.5–33.33 3. Disposal of fixed assets A fixed asset is derecognised on disposal or when no future economic benefits are expected from using or disposal. The amount of proceeds on sale, transfer, retirement or damage of a fixed asset net of its carrying amount and related taxes and expenses is recognised in current profit or loss. (XV) Construction in progress Construction in progress is measured at actual cost. Actual cost comprises construction costs, installation costs, borrowing costs that are eligible for capitalisation and other costs necessary to bring the construction in progress ready for their intended use. Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and depreciation begins from the following month.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 115 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XVI) Borrowing costs 1. Criteria for recognition of capitalised borrowing costs The Company’s borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised into the cost of relevant assets. Other borrowing costs are recognised as expenses in profit or loss in the period in which they are incurred. Qualifying assets include fixed assets, investment property and inventories that necessarily take a substantial period of time for acquisition, construction or production to get ready for their intended use or sale. 2. Capitalisation period of borrowing costs The capitalisation period refers to the period beginning from the commencement of capitalising borrowing costs to the date of ceasing capitalisation, excluding the period of suspension of capitalisation. Capitalisation of borrowing costs begins when the following three conditions are fully satisfied: (1) expenditures for the assets (including cash paid, non-currency assets transferred or interestbearing liabilities assumed for the acquisition, construction or production of qualifying assets) have been incurred; (2) borrowing costs have been incurred; (3) acquisition, construction or production that are necessary to enable the asset to get ready for their intended use or sale have commenced. Capitalisation of borrowing costs shall cease when the qualifying asset under acquisition, construction or production gets ready for intended use or sale. 3. Suspension of capitalisation period Capitalisation of borrowing costs shall be suspended during periods in which the acquisition, construction or production of a qualifying asset is interrupted abnormally, and the interruption is for a continuous period of more than 3 months; if the interruption is a necessary step for making the qualifying asset under acquisition, construction or production ready for the intended use or sale, the capitalisation of the borrowing costs shall continue. The borrowing costs incurred during such period of interruption shall be recognised in current profit or loss. When the acquisition, construction or production of the asset resumes, the capitalisation of borrowing costs continues.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026116 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XVI) Borrowing costs (Continued) 4. Capitalisation rate and calculation of capitalisation amount of borrowing costs As to specific borrowings for the acquisition, construction or production of qualifying assets, borrowing costs from the specific borrowings actually incurred in the current period minus the interest income earned on the unused borrowing loans as a deposit in the bank or the investment income earned from temporary investment will be used to determine the amount of borrowing costs for capitalisation. As to general borrowings for the acquisition, construction or production of qualifying assets, the to-be-capitalised amount of borrowing costs on the general borrowing shall be calculated and determined by multiplying the weighted average asset disbursement of the part of the accumulative asset disbursements minus the specific borrowings and the capitalisation rate of the said general borrowings. The capitalisation rate shall be calculated and determined according to the weighted average actual interest rate of general borrowings. During the capitalisation period, exchange differences related to the principal and interest on a specific-purpose borrowing denominated in foreign currency are capitalised as part of the cost of the qualifying asset. The exchange differences related to the principal and interest on foreign currency borrowings other than a specific purpose borrowing are included in the current profits and losses. (XVII) Intangible assets 1. Measurement of intangible assets (1) Intangible assets are initially measured at cost upon acquisition by the Company; The costs of an intangible asset include the purchase price, relevant tax expenses, and other expenditures directly attributable to bringing the asset ready for its intended use. (2) Subsequent measurement The Company shall analyse and judge the useful life of intangible assets upon acquisition. As for intangible assets with a finite useful life, they are amortised over the term in which economic benefits are brought to the firm; if the term in which economic benefits are brought to the firm by an intangible asset cannot be estimated, the intangible asset shall be taken as an intangible asset with indefinite useful life, and shall not be amortised.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 117 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XVI) Borrowing costs (Continued) 2. Estimate of useful life for the intangible assets with finite useful life Item Estimated useful lives Amortisation method Determination basis of estimated useful life Concession rights 25–30 Straight-line method Term under concession rights agreements Land use rights 50 Straight-line method Land use rights certificate Software 10 Straight-line method Estimated useful life of software 3. Specific criteria for the division of research phase and development phase The expenses for internal research and development projects of the Company are divided into expenses in the research phase and expenses in the development phase. Research phase: a phase in which innovative and scheduled investigations and research activities are conducted to obtain and understand new scientific or technological knowledge. Development phase: a phase in which the research outcomes or other knowledge are applied for a plan or a design prior to the commercial production or use in order to produce new or substantially improved materials, devices, products, etc. 4. Specific conditions for capitalisation of expenditure incurred in development phase Expenditures incurred in the research stage are recognised in profit or loss for the period. Expenditures incurred in the development stage are recognised as intangible assets only when all of the following conditions are satisfied, and the expenditures in the development stage that does not meet all of the following conditions are recognised in profit or loss for the period: (1) the technical feasibility of completing the intangible asset so that it will be available for use or for sale; (2) the intention to complete the intangible asset for use or for sale; (3) the ways in which the intangible asset generate economic benefits, including there is evidence that the products produced using the intangible asset has a market or the intangible asset itself has a market, or if the intangible asset is for internal use, there is evidence that proves its usefulness; (4) the availability of adequate technical, financial and other resources to complete the development and the ability to use or sell the intangible asset; (5) the expenditures attributable to the development phase of the intangible asset could be reliably measured. If the expenditures cannot be distinguished between the research phase and development phase, all of which should be included in the current profit or loss.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026118 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XVIII) Impairment of long-term assets Long-term assets such as long-term equity investments, investment properties measured at cost model, fixed assets, construction in progress, right-to-use assets, intangible assets with a finite useful life and oil and gas assets are tested for impairment if there is any indication that such assets may be impaired at the balance sheet date. If the result of the impairment test indicates that the recoverable amount of the asset is less than its carrying amount, a provision for impairment and an impairment loss are recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the future cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognised on the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest group of assets that is able to generate independent cash inflows. Goodwill formed by business merger, intangible assets with indefinite useful lives and intangible assets that are not yet ready for use are tested for impairment at least at the end of each year regardless of whether there is any sign of impairment. When the Group performs impairment test on goodwill, the Company shall, as of the purchase day, allocate on a reasonable basis the carrying value of the goodwill formed by merger of enterprises to the relevant asset groups, or if there is a difficulty in allocation, to allocate it to the set of asset groups. The related asset groups or the set of asset groups refers to these ones that can benefit from the synergies of a business combination. For the purpose of impairment test on the relevant asset groups or the set of asset groups containing goodwill, if any evidence shows that the impairment of asset groups or set of asset groups related to goodwill is possible, an impairment test will be made firstly on the asset groups or set of asset groups not containing goodwill, thus calculating the recoverable amount and comparing it with the relevant carrying value so as to recognise the corresponding impairment loss. Then, the Company will conduct impairment tests on the asset groups or set of asset groups that includes goodwill and compare its carrying value against its recoverable amount. If the recoverable amount is lower than its carrying value, the amount of impairment loss is first offset against the carrying value of the goodwill allocated to the asset groups or set of asset groups, then, based on the proportion of the carrying value of other assets in the asset groups or set of asset groups other than goodwill, offset against the carrying value of other assets proportionally. Once the above asset impairment loss is recognised, it will not be reversed in subsequent accounting periods.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 119 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XIX) Long-term prepaid expenses Long-term prepaid expenses are expenses which have occurred but will benefit over 1 year and shall be amortized over the current period and subsequent periods. The amortization period and method of each expense is as follows: Item Amortization method Amortization period (year) Royalties of emission right and others Straight-line method 2–5 (XX) Contract liabilities The Group has presented contract assets or contract liabilities in the balance sheet based on the connection between the fulfilment of performance obligations and payment of the customers. A contract liability represents the obligation to transfer goods or services to a customer for which the Group has received a consideration or an amount of consideration that is due from the customer. A contract asset and a contract liability relating to the same contract are accounted for and presented on a net basis. (XXI) Employee benefits 1. Accounting treatment methods of short-term benefits In the accounting period in which employees provide service for the Group, short-term benefits actually incurred are recognised as liabilities and charged to current profit or loss or cost of relevant assets. With regard to the social insurance and housing provident funds contributed and labour union expenses and employee education expenses paid as required by regulations, the Group should calculate and recognise the corresponding employee benefits payables according to the appropriation basis and proportion as stipulated by relevant requirements in the accounting period in which employees provide service. At the time of actual occurrence, the Group’s employee benefits are recorded in the current profit or loss or costs of relevant assets as incurred. The non-currency welfare expenses are measured at fair value. 2. Accounting treatment methods of post-employment benefits (1) Defined contribution scheme The Group will pay basic pension insurance and unemployment insurance for the staff in accordance with the relevant provisions of the local government. During the accounting period when the staff provides service, the Group will calculate the amount payable in accordance with the local stipulated basis and proportions which will be recognised as liabilities, and the liabilities would be charged into current profit or loss or costs of relevant assets.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026120 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XXI) Employee benefits (Continued) 2. Accounting treatment methods of post-employment benefits (Continued) (2) Defined benefit scheme In respect of the defined benefit scheme, the Group shall attribute the welfare obligations under the defined benefit scheme in accordance with the formula determined by projected unit credit method to the service period of relevant employee, and record the obligation in profit loss for the current period or costs of related assets. The deficit or surplus generated from the present value of obligations of the defined benefit scheme minus the fair value of the assets of defined benefit scheme is recognised as net liabilities or net assets of a defined benefit scheme. When the defined benefit scheme has surplus, the Group will measure the net assets of the defined benefit scheme at the lower of the surplus of defined benefit scheme and the upper limit of the assets. All defined benefit plans obligations, including the expected duty of payment within 12 months after the end of annual Reporting Period during which the staff provided service, are discounted based on the market yield of government bonds matching the term and currency of defined benefit plan obligations or corporate bonds of high quality in the active market on the balance sheet date. The service cost incurred by the defined benefit scheme and the net interest of the net liabilities and net assets of the defined benefit scheme would be charged to current profit or loss or relevant costs of assets. The changes arising from the remeasurement of the net liabilities or net assets of the defined benefit scheme would be included in other comprehensive income and are not reversed to profit or loss in a subsequent accounting period; when the previously defined benefits plan is terminated, such amount previously included in other comprehensive income shall be transferred to undistributed profit. When the defined benefit scheme is settled, the gain or loss is recognised based on the difference between the present value of obligations under the defined benefit scheme and the settlement price at the balance sheet date. 3. Accounting treatment of termination benefits When the Group provides employees with termination benefits, the staff remuneration liabilities arising from termination benefits are recognised and recorded in current profit or loss whichever of the following is earlier: when the Group cannot unilaterally revoke such termination benefits provided due to dissolution of labour relationship plan or layoff proposal; when the Group recognises such cost or expenses associated with the restructuring involving the payment of termination benefits.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 121 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XXII) Estimated liabilities The Group shall recognise an obligation related to contingency as the estimated liability when all of the following conditions are satisfied: (1) such obligation is the present obligation of the Group; (2) the performance of such obligation is likely to lead to an outflow of economic benefits of the Group; (3) the amount of such obligation can be reliably measured. The estimated liabilities are initially measured at the best estimate of expenditure required for the performance of relevant present obligations. The Group shall take into consideration the risks, uncertainties, time value of money and other factors relating to the contingencies in determining the best estimate. If the time value of money is significant, the best estimates shall be determined after discount of relevant future cash outflows. If there is a successive range of the required expenditure, and the likelihood of occurrence of various results within the range is the same, the best estimate is determined by the intermediate value of the range. In other cases, the best estimate are handled as follows: • Where the contingency is related to individual item, the best estimate should be determined as the most likely amount. • Where the contingency is related to a number of items, the best estimate should be calculated and determined according to the various possible results and the relevant probabilities. When all or part of the expenditures necessary for the settlement of an estimated liability is expected to be compensated by a third party, the compensation should be separately recognised as an asset only when it is virtually certain that the compensation will be received. The amount recognised for the compensation should not exceed the carrying amount of estimated liabilities. The Company reviews the carrying amount of estimated liabilities on balance sheet date. If there is clear evidence that the carrying amount does not reflect the current best estimate, the carrying amount is adjusted to the best estimate.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026122 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XXIII) Revenue 1. Accounting policies adopted for revenue recognition and measurement The Group recognises revenue when the performance obligation in a contract is fulfilled, namely the customer obtains control of relevant goods or services. Control of a good or service refers to the ability to direct the use of the good or service, and obtain substantially all of the benefits from the goods or services. If a contract contains two or more performance obligations, at the commencement of the contract, the Group allocates the transaction price into each individual performance obligation according to the relative proportion of each individual selling price of goods or services committed by individual performance obligation, and recognises the revenue according to the transaction price allocated to each individual performance obligation. The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties and those expected to be refunded to the customer. The Group considers the terms of the contract and its customary business practices to determine the transaction price. When determining the transaction price, the Group considers the effects of variable consideration, the existence of a significant financing component in the contract, non-cash consideration and consideration payable to a customer. The Group determines the transaction price that includes variable considerations based on the amount not exceeding the revenue accumulatively recognised which is not likely to be significantly reversed when the relevant uncertainty disappears. Where there are significant financing elements in the contract, the Group recognises the transaction price at an amount that reflects the price that a customer would have paid for the promised goods or services if the customer had paid in cash when (or as) the customer had obtained control over such goods or services. The difference between the transaction price and the amount of contract consideration is amortised using an effective interest method over the contract term. When one of the following conditions is satisfied, the Group is considered to have fulfilled an obligation within a certain period of time. Otherwise, the Company is considered to have fulfilled an obligation at a certain point in time: • At the same time when the Group fulfills the obligation, the customer immediately obtains and consumes the economic benefits brought about by the Company’s performance. • The customers can control the goods under construction in the course of the Group’s performance. • Goods produced in the course of the Group’s performance are irreplaceable. In addition, during the entire contract period, the Group has the right to collect the payments for the cumulatively completed parts of performance. Where performance of a single service contract takes place over a certain period of time, revenue should be recognised as performance takes place, except where the stage of performance cannot be determined. The Group considers the nature of the goods or services and adopts the output method or the input method to determine the fulfillment progress of the performance. When the fulfillment progress of the performance cannot be determined reasonably, but is expected to recover the costs incurred, the Group should recognise revenue only to the extent of the cost until a reliable measure of progress can be made.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 123 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XXIII) Revenue (Continued) 1. Accounting policies adopted for revenue recognition and measurement (Continued) For a performance obligation satisfied at a point in time, the Group shall recognise revenue when the customer obtains control of relevant goods or services. In judging whether customers obtain control of promised goods or services, the Group considers the following indications: • the Group enjoys the right to collect cash on the goods or services, that is, the customer has the obligation to pay for the goods or services at the present time. • the Group has transferred the legal ownership of the commodity to the customer, that is, the customer has the legal ownership of the commodity. • the Group has transferred the goods in kind to the customers, that is, the customers have actually taken possession of the goods. • the Group has transferred the main risks and rewards in the ownership of the commodity to its customers, that is, the customers have acquired the main risks and rewards in the ownership of the commodity. • the customer has accepted the goods or services. The Group assesses whether it controls each specified good or service before that good or service is transferred to the customer to determine whether the Group is a principal or an agent. If the Group controls the specified good or service before that good or service is transferred to a customer, the Group is a principal and recognises revenue in the gross amount of consideration received or receivable. Otherwise, the Group is an agent and recognises revenue in the amount of any fee or commission to which it expects to be entitled.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026124 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XXIII) Revenue (Continued) 2. Disclosure of specific revenue recognition and measurement methods by business type (1) Revenue from construction services PPP project contract refers to the contract concluded between the private party and the government party on PPP project cooperation in accordance with laws and regulations, and the contract meets both the conditions of “dual characteristics” and “dual controls”. Among them, “dual characteristics” means that the private party uses the PPP project assets to provide public goods and services on behalf of the government during the operation period stipulated in the contract, and receives compensation for the public goods and services it provides; “dual controls” means that the government party controls or regulates the type, object and price of public goods and services that the private party provides when using the PPP project assets, and when the PPP project contract is terminated, the government party controls the material residual interests of the PPP project assets through ownership, income rights or other forms. If the Group provides multiple services in accordance with the PPP project contract, it identifies the individual performance obligations in the contract and apportions the transaction price to each performance obligation in proportion to the individual selling price of each performance obligation. The Group participates in public infrastructure construction business in the form of BOT and other forms based on PPP project contracts concluded with the government party. For the construction services provided by the Group to the government party as the primary responsible person, revenue is recognised over a period of time based on the progress of performance, and contract assets are recognised at the same time. The progress of performance is determined using the input method, which is determined according to the proportion of the cumulative actual construction service costs incurred during the construction process to the estimated total construction costs; the separate selling price of the construction services is based on the cost of construction, with reference to the gross margin of comparable businesses, calculated using the cost plus method. For the portion of revenue recognised as intangible assets of the infrastructure construction, contract assets recognised during the relevant construction period are presented “intangible assets” in the balance sheet; other contract assets recognised during construction are presented“contract assets” or “other non-current assets” in the balance sheet, depending on whether they are expected to be converted into cash within one year from the balance sheet date. If the Group meets the conditions for receiving cash (or other financial assets) of an identifiable amount from the contract assets recognised during PPP project construction services during the operation of the project, it shall be recognised as receivables when the Group has the unconditional right to receive such consideration (the right only depends on the factor of time passing). Subsequently, the interest income of relevant PPP projects is recognised on the basis of amortised cost according to the effective interest rate method. Contract costs include contract performance costs and contract acquisition costs. The cost incurred by the Group in providing the above services is recognised as the contract performance costs. Contract performance costs are carried forward to the cost of sale of main operations based on the progress of performance when recognising revenue.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 125 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XXIII) Revenue (Continued) 2. Disclosure of specific revenue recognition and measurement methods by business type (Continued) (2) Electricity tariff Revenue is recognised by the Group when the electricity is supplied to and controlled by the local grid company. The Group recognises the electricity tariff according to the actual volume of electricity supplied and the unit price and on-grid electricity as agreed in the electricity purchase and sale contracts. (3) Waste treatment fees Revenue is recognised by the Group during the course of providing waste treatment services. The Group recognises the waste treatment fees according to the actual volume of waste treated and the unit price as agreed in the agreements, deducting the portion recognised as financial assets. (XXIV) Contract costs Contract costs comprise contract performance costs and contract acquisition costs. The costs incurred by the Group for the performance of the contract which do not fall under the scope of the standards relating to inventories, fixed assets and intangible assets are recognised as an asset as contract performance costs when the following conditions are met: • This cost is directly related to a current or expected contract. • This cost increases the resources of the Group to fulfill its performance obligations in the future. • The cost is expected to be recovered. If the incremental cost incurred by the Group in obtaining the contract can be expected to be recovered, the contract acquisition cost shall be recognised as an asset. Assets related to the cost of the contract are amortised on the same basis as the revenue recognition of the goods or services related to the asset; however, if the amortisation period of the contract acquisition cost is less than one year, the Group will include it into the current profit or loss when is incurs. For assets related to contract costs whose carrying amount is higher than the difference between the following two items, the Group will make provision for impairment for the excess and recognise it as asset impairment loss: 1. The remaining consideration expected to be obtained by the transfer of goods or services related to the asset; 2. The cost expected to be incurred for the transfer of the relevant goods or services. If the above-mentioned excess is higher than the book value of such assets as a result of any subsequent change of impairment factors in the previous period, the provision for impairment of assets previously made shall be reversed and included in profit or loss for the period as incurred to the extent the book value of the reversed asset shall not exceed the book value of the asset on the date of the reverse assuming no provision for impairment is made.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026126 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XXV) Government grants 1. Types Government grants are monetary assets or non-monetary assets obtained by the Group from the government for free, and are divided into government grants related to assets and government grants related to income. Government grants related to assets are those obtained by the Group for the purposes of acquisition, construction or other project that forms a long-term asset. Government grants related to income refer to the government grants other than those related to assets. 2. Timing for recognition Government grants are recognised when the Group can comply with the conditions attached to them and when they can be received. 3. Accounting treatment Asset-related government grants shall be used to offset the carrying amount of relevant asset or recognised as deferred income. The amount recognised as deferred income shall be recorded in current profit or loss by installments in a reasonable and systematic way over the useful life of the relevant assets (the government grants related to the Group’s daily activities shall be included in other income; and the government grants unrelated to the Group’s daily activities shall be included in nonoperating income); Government grants related to income that are used to compensate relevant costs or losses of the Company in subsequent periods are recognised as deferred income and recorded in current profit or loss when such costs and losses are recognised (government grants related to the Group’s daily activities shall be included in other income; government grants unrelated to the Group’s daily activities shall be included in non-operating income) or offset relevant costs or losses; and the government grants used to compensate relevant costs or losses that have been incurred by the Group are recorded directly in current profit or loss (government grants related to the Group’s daily activities shall be included in other income; government grants unrelated to the Group’s daily activities shall be included in non-operating income) or offset relevant costs or losses. The interest subsidies for policy-related preferential loans obtained by the Group are divided into two types and subject to accounting treatment separately: (1) Where the interest subsidies are appropriated from the fiscal funds to the lending bank and then the bank provides loans to Group at a policy-based preferential interest rate, the Group will recognize the amount of borrowings received as the initial value and calculate the borrowing costs according to the principal amount and the policy-based preferential interest rate. (2) Where the interest subsidies are paid directly to the Group, the Group will use such interest subsidies to offset the corresponding borrowing costs.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 127 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XXVI) Deferred tax assets and deferred tax liabilities Income tax comprises current and deferred income tax. Current tax and deferred tax are recognised in current profit or loss except to the extent that they relate to a business combination or items recognised directly in equity (including other comprehensive income). Deferred tax assets and deferred tax liabilities are calculated and recognised based on the temporary differences between the tax bases and the carrying amounts of assets and liabilities. Deferred income tax assets are recognised to the extent that it is probable that future taxable profits will be available against which deductible temporary differences can be utilised. For deductible losses and tax credits that can be reversed in the future years, deferred tax assets shall be recognised to the extent that it is probable that taxable profit will be available in the future to offset the deductible losses and tax credits. Save for exceptions, deferred income tax liabilities shall be recognised for the taxable temporary difference. The exceptions for not recognizing deferred income tax assets and liabilities include: • the initial recognition of the goodwill; • transactions or matters other than business combinations in which neither profit nor taxable income (or deductible loss) will be affected when transactions occur, and the initial recognition of assets and liabilities does not result in an equal amount of taxable temporary differences and deductible temporary differences. Deferred tax liabilities are recognised for temporary differences arising from investments in subsidiaries, joint ventures and associates, except where the Group is able to control the timing of the reversal of the temporary difference, and it is probable that the temporary difference will not be reversed in the foreseeable future. When it is probable that the temporary differences arising from investments in subsidiaries, joint ventures and associates will be reversed in the foreseeable future and that the taxable profit will be available in the future against which the temporary differences can be utilised, the corresponding deferred tax assets are recognised. At the balance sheet date, deferred tax assets and deferred tax liabilities are measured at the applicable tax rates during the period when the relevant assets are expected to be recovered or the relevant liabilities are expected to be settled in accordance with the provisions of the tax law. The carrying amount of a deferred tax asset is reviewed at each balance sheet date, and is reduced to the extent that it is no longer probable that sufficient taxable profit will be available in the future against which the benefits of the deferred tax asset will be utilised. Such reduction is reversed to the extent that it becomes probable that sufficient taxable profits will be available. When the Group has a legally enforceable right to set-off and intends either to settle on a net basis or to acquire the income tax asset and settle the income tax liability simultaneously, current income tax assets and current income tax liabilities shall be presented as the net amount after offsetting.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026128 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XXVI) Deferred tax assets and deferred tax liabilities (Continued) At the balance sheet date, deferred tax assets and deferred tax liabilities are offset if all of the following conditions are met: • When the taxable entity has the legal right to set off current income tax assets and current income tax liabilities on a net basis; • When the deferred income tax assets and deferred income tax liabilities are related to income tax to be paid by the same entity liable to pay tax to the same tax authority, or related to different entities liable to pay tax but the relevant entities intend to settle on a net basis or to acquire the income tax assets and settle the income tax liabilities simultaneously in the future period in which significant deferred income tax assets and liabilities would be reversed. (XXVII) Lease A lease is a contract that a lessor conveys the right to use an asset to a lessee for a period of time in exchange for consideration. At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of one or more identified asset(s) for a period of time in exchange for consideration. For a contract that contains multiple separate lease, the Group separates and accounts for each lease component as a lease separately. For a contract that contains lease and non-lease components, the lessee and lessor separates the lease and non-lease components. 1. The Group as the lessee (1) Right-of-use assets At the commencement date of lease term, the Group recognises right-of-use assets for leases (excluding short-term leases and leases of low-value assets). Right-of-use assets are measured initially at cost. Such cost comprises: • the amount of the initial measurement of lease liability; • lease payments made at or before the inception of the lease less any lease incentives already received (if there is a lease incentive); • initial direct costs incurred by the Group; • the costs of the Group expected to be incurred for dismantling and removing the leased asset, restoring the site on which the leased asset is located or restoring it to the condition as agreed in the terms of the lease, except those incurred for the production of inventories. The Group accrues depreciation for the right-of-use assets by subsequently adopting straightline method. If there is reasonable certainty that the Group will obtain the ownership of a leased asset at the end of the lease term, the Group depreciates the leased asset in the remaining useful life of the asset; otherwise, the Group depreciates the leased asset in the lease term or in the remaining useful life of the asset (whichever is shorter).
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 129 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XXVII) Lease (Continued) 1. The Group as the lessee (Continued) (1) Right-of-use assets (Continued) The Group determines whether the right-of-use assets have been impaired in accordance with the principles described in Note “III. (XVIII) Impairment of long-term assets” and conducts accounting treatment for impairment loss identified. (2) Lease liabilities At the commencement date of lease term, the Group recognises lease liabilities for leases (excluding short-term leases and leases of low-value assets). Lease liabilities are initially measured based on the present value of outstanding lease payment. Lease payments include: • fixed payments (including in-substance fixed payments), less any lease incentives (if there is a lease incentive); • variable lease payments that are based on an index or a rate; • amounts expected to be payable under the guaranteed residual value provided by the Company; • the exercise price of a purchase option if the Company is reasonably certain to exercise that option; • payments of penalties for terminating the lease option, if the lease term reflects that the Company will exercise that option. The Group adopts the interest rate implicit in the lease as the discount rate. If that rate cannot be determined reasonably, the Group’s incremental borrowing rate is used. The Group shall calculate the interest expenses of lease liabilities in each period of the lease term at the fixed periodic interest rate, and include it into profit or loss in the period or cost of relevant assets. Variable lease payments not included in the measurement of lease liabilities are charged to profit or loss in the period or cost of relevant assets in which they actually arise.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026130 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XXVII) Lease (Continued) 1. The Group as the lessee (Continued) (2) Lease liabilities (Continued) After the commencement date of lease term, if the following circumstances occur, the Group remeasures the lease liability and adjusts the carrying value of the right-of-use asset accordingly. If the carrying value of the right-of-use asset has been reduced to zero and the lease liability still needs to be further reduced, the Group accounts for the difference in the current profit or loss: • when there are changes in assessment results of the purchase, extension or termination option, or the actual exercise condition of the aforementioned options is inconsistent with the original assessment results, the Group remeasures the lease liabilities in accordance with the lease payments after changes and present value calculated based on the revised discount rate; • when in-substance fixed payments, the amount expected to be payable under the guaranteed residual value or the index or rate arising from the confirmation of lease payments changed, the Group remeasures the lease liabilities in accordance with the present value calculated based on the lease payments after changes and the initial discount rate. However, if the lease payments change is due to a change in a floating interest rate, a revised discount rate is used. (3) Short-term leases and leases of low-value assets The right-of-use asset and lease liability are not recognised by the Group for short-term leases and leases of low-value assets, and the relevant lease payments are included in profit or loss in the period or costs of relevant assets in each period of the lease term on a straight-line basis. Short-term leases are defined as leases with a lease term of not more than 12 months from the commencement date and excluding a purchase option. Leases of low-value assets are defined as leases with underlying low value when new. If the Company subleases or expects to sublease a leased asset, the original lease is not a low-value asset lease. (4) Lease change The Company will account for the lease change as a separate lease if the lease changes and meets the following conditions: • the lease change expands the scope of lease by increasing the rights to use one or more leased assets; • the increased consideration and the individual price of the expanded part of the lease are equivalent to the amount adjusted for the contract. If the lease change is not accounted for as a separate lease, the Company shall re-allocate the consideration of a changed contract, re-determine the lease term, and remeasure the lease liabilities by the present value calculated from the changed lease payments and revised discount rate on the effective date of the lease change. If the lease change results in a narrower lease or a shorter lease term, the Group reduces the carrying amount of the right-of-use asset accordingly, and recognises the related gains or losses from partially or completely terminated leases into the current profit and loss. For other lease change that causes the lease liabilities to be remeasured, the Group adjusts the carrying amount of the right-of-use assets accordingly.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 131 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XXVII) Lease (Continued) 2. The Group as a lessor At the commencement date of lease term, the Group classifies leases as financing leases and operating leases. A financing lease is a lease that transfers substantially all the risks and rewards incidental to ownership of a leased asset, irrespective of whether the ownership of the asset is eventually transferred. An operating lease is a lease other than a financing lease. As a sub-leasing lessor, the Group classifies the sub-leases based on the right-of-use assets of the original leases. (1) Accounting treatment of operating leases The lease payments derived from operating leases are recognised as rental income on a straightline basis over the respective lease terms. Initial direct costs relating to operating leases to be incurred by the Group shall be capitalised and then allocated and included in the current profit and loss by stages at the same base as the recognition of rental income over the lease term. The variable lease payments not included in the measurement of lease payments shall be recognised in profit or loss in the period in which they are occurred. In case of modification of an operating lease, the Company shall treat it as a new lease from the effective date of modification, and the amount of the advance receipt or receivable related to the lease before the modification shall be regarded as the collection amount of the new lease. (2) Accounting treatment of financing leases At the commencement date of lease term, the Group recognises financing lease receivable and derecognises the underlying assets. The Group initially measures financing lease receivable in the amount of net investment in the lease. Net investment in the lease is the sum of the unguaranteed residual value and the present value of the lease payments receivable which were not received at the commencement date of lease term, discounted at the interest rate implicit in the lease. The Group calculates and recognises interest income in each period during the lease term, based on a fixed periodic interest rate. The derecognition and impairment losses of financing lease receivable are accounted for in accordance with the Note “III. (X) Financial instruments”. Variable lease payments not included in the measurement of the net investment in the lease are included in profit or loss in the period in which they are occurred. When a financing lease is changed and the following conditions are simultaneously met, the Group accounts for the lease change as a separate lease: • The change expands the scope of lease by adding the right to use one or more leased assets; • The consideration and the separate price of the expanded scope of lease are equivalent to the amount adjusted according to the contract.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026132 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XXVII) Lease (Continued) 2. The Group as a lessor (Continued) (2) Accounting treatment of financing leases (Continued) Where a change in a financing lease is not accounted for as a separate lease, the Group deals with the lease after the change according to the following situation: • In case where the lease would have been classified as an operating lease assuming the modification became effective at the commencement date of the lease, the Group accounts for it as a new lease from the effective date of the modification and the net investment in the lease prior to the effective date of the modification is taken as the carrying amount of the leased assets; • In case where the lease would have been classified as a financing lease assuming the modification became effective at the commencement date of the lease, the Group conducts accounting treatment in accordance with the policy regarding the modification or renegotiation of contracts described in this Note “III. (X) Financial instruments”. 3. Sale and leaseback transactions The Group assesses and determines whether the transfer of assets in a sale and leaseback transaction is a sale in accordance with the principles described in “III. (XXIII) Revenue” of this note. (1) As lessee If the transfer of assets in the sale and leaseback transaction is a sale, the Group, as the lessee, measures the right-of-use assets arising from the sale and leaseback based on the part of theoriginal carrying amount of the assets related to the right of use obtained by the leaseback, and only recognizes the relevant gains or losses for the rights transferred to the lessor. After the commencement date of lease term, please refer to “III. (XXVII) Lease 1. The Group as lessee” of this note for the subsequent measurement of right-of-use assets and lease liabilities and changes in leases. When subsequently measuring the lease liabilities arising from a sale and leaseback transaction, the way that the Group determines the lease payment amount or revised lease payment amount would not result in the recognition of any gains or losses related to the right of use obtained from the leaseback. If the transfer of assets in the sale and leaseback transaction is not a sale, the Group, as the lessee, continues to recognize the transferred assets and recognizes a financial liability equal to the transfer income. For details of the accounting treatment of financial liabilities, please refer to“III. (X) Financial instruments” of this note. (2) As lessor If the transfer of assets in the sale and leaseback transaction is a sale, the Group, as the lessor, accounts for the purchase of assets and accounts for the lease of assets in accordance with the policy set out in “2. The Group as lessor” above; if the transfer of assets in the sale and leaseback transaction is not a sale, the Group, as the lessor, does not recognize the transferred assets but recognizes a financial asset equal to the transfer income. For details of the accounting treatment of financial assets, please refer to “III. (X) Financial instruments” of this note.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 133 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XXVIII) Segment reporting The Group will determine operation segment on the basis of the internal organizational structure, management requirements and internal report system, and determine reporting segment on the basis of operation segment, and disclose such segment information. An operating segment is a component of the Group that meets the following conditions simultaneously: (1) the component is able to generate revenues and incur expenses from its ordinary activities; (2) whose operating results are regularly evaluated by the Group’s management to make decisions about resources to be allocated to the segment and to assess its performance; (3) for which the accounting information on financial position, operating results and cash flows is available to the Group. Two or more operating segments may be aggregated into a single operating segment if they have similar economic characteristics and meet specified conditions. The Group is under overall operation. It has centralised internal organisation structure, management requirements and internal reporting system. The Group’s financial information is regularly reviewed by the Group’s management to make decisions about resources to be allocated to the segment and to assess its performance. The Group has no individually managed operating segment, therefore, the Group has one single operating segment. (XXIX) Safety production expenses The Group makes provision for safety production expenses in accordance with the provisions under the Notice on Printing and Issuing the Administrative Measures for Appropriation and Usage of Safety Production Expenses of Enterprises (Cai Zi [2022] No. 136) issued by the Ministry of Finance and the Ministry of Emergency Management. The safety production expenses are specially used to enhance and improve the safety production conditions of enterprises or projects. The provision for safety production expenses for the current period is based on the actual operating income in last year, which is extracted monthly by taking excess regressive manner. The Group’s provision for safety production expenses is included in the cost of related products or charged to profit or loss when incurred, and special reserve is increased accordingly. When the Company uses safety production expenses, expensed items directly reduces the special reserves, while capitalized items are collected in construction in progress and recognized as fixed asset when the safety project is completed reaches the conditions for intended use. Meanwhile, the special reserve is reduced by the capitalized amount of safety production expenses and depreciation is recognized in the same amount. The fixed asset will not be depreciated in future periods.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026134 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XXX) Determination Methodology and Selection Basis of Materiality Criteria Item Materiality Criteria Important non-wholly-owned subsidiaries Non-wholly-owned subsidiaries whose net profit accounts for more than 10% of the Group’s consolidated net profit and whose net assets account for more than 5% of the Group’s net assets are identified as significant non-wholly-owned subsidiaries. (XXXI) Critical accounting estimates and judgements 1. Critical accounting estimates and key assumptions (1) Measurement of ECL The Group calculates ECL through exposure at default and ECL rates, and determines the ECL rates based on probability of default and loss given default. In determining the ECL rates, the Group uses data such as internal historical credit loss experience, and adjusts historical data based on current conditions and forward-looking information. When considering forward-looking information, the Group takes different economic scenarios into consideration to assess of the assumptions and parameters related to ECL, including the risk of economic downturn, external market environment, changes in customer conditions, Gross Domestic Product (“GDP”), Consumer Price Index (“CPI”), etc. The Group regularly monitors and reviews assumptions and parameters related to the calculation of ECL. Where there is a difference between the actual bad debts and the original estimate, such difference will affect the Group’s provision for bad debts of the above assets in the future period. (2) Intangible assets – impairment provision for concession rights The intangible assets of the Group are mainly concession rights for waste-to-energy projects and hazardous waste projects. At the balance sheet date, management assesses the recoverable amount of concession rights of each project for waste-to-energy treatment projects that have not yet commenced operations, for waste-to-energy treatment projects that have shown indicator of impairment and hazardous waste projects accounted for as intangible assets with indefinite useful lives as no concession period was specified to assess the recoverable amount of the concession rights of these projects. The recoverable amount of concession rights is determined based on the higher of the present value of the expected future cash flows and an asset’s fair value less costs to sell. The evaluation process involves the use of appropriate impairment test methods and models and the use of key assumptions (mainly compound revenue growth rates, EBIT margin and pre-tax discount rates) in the forecast of the present value of future cash flows.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 135 VIII. FINANCIAL REPORT (CONTINUED) III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued) (XXXI) Critical accounting estimates and judgements (Continued) 1. Critical accounting estimates and key assumptions (Continued) (3) Income taxes and deferred income taxes The Group is subject to income taxes in numerous jurisdictions. There are some transactions and events for which the ultimate tax determination is uncertain during the ordinary course of business. Significant judgement is required from the Group in determining the provision for income tax in each of these jurisdictions. Where the final tax outcomes of these matters are different from the amounts that were initially recorded, such differences will impact the income tax and deferred income tax provisions in the period in which such determination is made. A deferred tax asset is recognised for the carry-forward of unused deductible losses to the extent that it is probable that future taxable profits will be available against which the deductible losses can be utilised. Future taxable profits include taxable profits that can be achieved through normal operations and the increase in taxable profits due to the reversal of taxable temporary differences arising from previous period in future period. The Group needs to apply estimates and judgements in determining the timing and amount of future taxable profits. If there is any difference between the actual and the estimates, adjustment may be made to the carrying amount of deferred tax assets. (XXXII) Changes in significant accounting policies and accounting estimates 1. Changes in significant accounting policy During the period, there were no changes in significant accounting policy of the Group. 2. Changes in significant accounting estimates During the period, there were no changes in significant accounting estimates of the Group.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026136 VIII. FINANCIAL REPORT (CONTINUED) IV. TAXATION (I) Major tax categories and tax rates Tax categories Tax basis Tax rate Value-added tax The VAT payable is the difference between output tax (calculated based on sales of goods and taxable service income under the tax laws) and the deductible input tax of the period 3%, 6%, 9% and 13% City maintenance and construction tax Based on value added tax and consumption tax effectively paid 5% and 7% Educational surcharge Based on VAT effectively paid 3% Local educational surcharge Based on VAT effectively paid 2% Enterprise income tax Based on taxable profits 25% and 15% Property tax Levied on the residual value of the property or rental income 12% and 1.2%
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 137 VIII. FINANCIAL REPORT (CONTINUED) IV. TAXATION (Continued) (II) Tax preference 1. Enterprise income tax Subsidiaries of the Company, Jiamusi Bohai Environmental Protection and Electricity Company Limited (“Jiamusi Company”), Zhaoqing Boneng Renewable Energy Power Generation Co., Ltd. (“Sihui Company”), Pingyang Dynagreen Environmental Energy Co., Ltd. (“Pingyang Phase II Company”), Wenzhou Dynagreen Environmental Energy Co., Ltd. (“Yongjia Phase II Company”), Guizhou Jinsha Green Energy Co., Ltd. (“Jinsha Company”), Dengfeng Dynagreen Renewable Energy Co., Ltd. (“Dengfeng Company”), Laizhou Haikang Environmental Protection Energy Co., Ltd. (“Laizhou Company”), Shishou Dynagreen Renewable Energy Co., Ltd. (“Shishou Company”), Enshi Green Power Renewable Energy Co., Ltd. (“Enshi Company”), Shantou Dynagreen Environmental Services Co., Ltd. (“Shantou Sludge Company”), Huludao Lvyi Company, Huizhou Dynagreen Environmental Services Co., Ltd. (“Huizhou Three-in-One Company”), Wuhan Dynagreen Renewable Energy Co., Ltd. (“Wuhan Company”), Huludao Dynagreen Environment Co., Ltd. (“Huludao Power Generation Company”), Shuozhou Dynagreen Nanshan Environmental Energy Co., Ltd. (“Shuozhou Company”), Jinan Dynagreen Environmental Co., Ltd. (“Zhangqiu Phase II Company”), Baise Dynagreen Environmental Protection Co., Ltd. (“Jingxi Company”) and Xinmi General New Energy Co., Ltd. (“Xinmi Company”) were qualified for the earnings from environmental protection, water and energy conservation as stipulated under the Enterprise Income Tax Law, and were eligible for a tax exemption for the first year to the third year, and a 50% reduction in EIT for the fourth year to the sixth year starting from the year in which the entities first generate operating income (the “3+3 tax holiday”). The details are as follows: (1) Pingyang Phase II Company, Yongjia Phase II Company, Shishou Company, Shantou Sludge Company, waste incineration project of Jinsha Company, Dengfeng Company, the phase II project of Jiamusi Company and the phase II project of Sihui Company were entitled to the 3+3 tax holiday from 2021 to 2026 (2) Huludao Lvyi Company, Huizhou Three-in-One Company, Laizhou Company and Enshi Company were entitled to the 3+3 tax holiday from 2022 to 2027 (3) The phase II project of Wuhan Company, Huludao Power Generation Company, Shuozhou Company and Zhangqiu Phase II Company completed the “EIT preferential benefits and approvals” in 2023 and were entitled to the 3+3 tax holiday from 2023 to 2028
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026138 VIII. FINANCIAL REPORT (CONTINUED) IV. TAXATION (Continued) (II) Tax preference (Continued) 1. Enterprise income tax (Continued) (4) Jingxi Company and Xinmi Company completed the “EIT preferential benefits and approvals” in 2024 and were entitled to the 3+3 tax holiday from 2024 to 2029 (5) The phase I project of Anshun Dynagreen Renewable Energy Co., Ltd. (“Anshun Company”), phase II project of Anshun Company, Guangyuan Boneng Renewable Energy Co., Ltd. (“Guangyuan Company”), Bobai Dynagreen Renewable Energy Co., Ltd. (“Bobai Company”), Enshi Company, Jingxi Company and Jinsha Company belong to encouraged industry established in the Western region and are thus subject to enterprise income tax at a preferential tax rate of 15% (6) Pur suant to the Announcement on the Implementation of Preferential Income Tax Policies for Small and Micro Enterprises and Individual Industrial and Commercial Households (MOF STA Announcement [2023] No. 6) and MOF STA Announcement [2023] No. 12 jointly issued by the Ministry of Finance and the State Taxation Administration, the proportion of taxable income up to RMB1 million of a small and low-profit enterprise is entitled to a preferential tax treatment of 25% exemption of taxable income and application of EIT rate as 20%. The execution period of the announcement is from 1 January 2023 to 31 December 2027. Pursuant to the Announcement on the Further Implementation of Preferential Income Tax Policies for Small and Micro Enterprises and Individual Industrial and Commercial Households (MOF STA Announcement [2022] No. 13) and MOF STA Announcement [2023] No. 12 jointly issued by the Ministry of Finance and the State Taxation Administration, the proportion of taxable income exceeding RMB1 million but less than RMB3 million of a small and low-profit enterprise is entitled to a preferential tax treatment of 25% exemption of taxable income and application of EIT rate as 20%. The execution period of the announcement is from 1 January 2022 to 31 December 2027. Pingyao Dynagreen Renewable Energy Co., Ltd. (“Pingyao Company”), Dongguan Changneng Clean Energy and Greening Service Co., Ltd. (“Dongguan Company”), Shantou Dynagreen Environmental Protection Co., Ltd. (“Shantou Kitchen Waste Company”), Zhangye Boneng Environmental Protection Company Limited (“Zhangye Company”), and Wuhan Dynagreen Environment Co., Ltd. (“Wuhan Donghu Company”) being subsidiaries of the Company, meet the conditions of a small and low-profit enterprise and are subject to the preferential income tax policies under the announcement (7) According to the Notice on the Matters in relation to Implementation of the Catalogue of Enterprise Income Tax Preferences for Special Purpose Equipment for Environmental Protection, the Catalogue of Enterprise Income Tax Preferences for Special Purpose Equipment for Energy and Water Conservation and the Catalogue of Enterprise Income Tax Preferences for Special Purpose Equipment for Safety Production (Cai Shui [2008] No. 48) issued by the Ministry of Finance and the State Administration of Taxation, enterprises purchasing and actually using special equipment for environmental protection, energy saving, water saving and safe production included in the catalogues since 1 January 2008 can deduct 10% of the investment in special equipment for the current year’s corporate income tax payable; if an enterprise’s tax payable in the current year is insufficient for the credit, it can be carried forward to subsequent years, but the carry-forward period shall not exceed 5 tax years. 2. VAT According to the Announcement on Improving the VAT Policy for Comprehensive Utilization of Resources (Cai Shui [2021] No. 40) issued by the Ministry of Finance and the State Taxation Administration, the VAT paid for the power or heat produced from waste or methane from waste fermentation shall be fully refunded and the VAT paid for waste treatment and sewage processing and disposal services shall be subject to the VAT refund policy, or the VAT exemption policy; once selected, it shall not be changed within 36 months.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 139 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (I) Cash at bank and on hand Item Closing balance Balance at the end of the previous year Cash on hand 32.00 Bank deposit 1,445,332,991.31 1,542,841,759.84 Other monetary funds 224,500.00 634,500.00 Total 1,445,557,491.31 1,543,476,291.84 Including: Total deposits outside the PRC 17,686,506.63 17,707,553.39 (II) Notes receivables 1. Notes receivables by category Item Closing balance Balance at the end of the previous year Bank acceptance notes 4,693,854.22 3,595,304.99 Less: Provision for bad debts Total 4,693,854.22 3,595,304.99 2. The Company had no notes receivables pledged at the end of the period
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026140 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (II) Notes receivables (Continued) 3. Notes receivables endorsed or discounted by the Company at the end of the period and not yet due on the balance sheet date Item Amount derecognized at the end of the period Amount not derecognized at the end of the period Bank acceptance notes 517,506.42 Total 517,506.42 4. There were no notes receivables actually written off in current period (III) Accounts receivables 1. Trade receivables based on their recording dates shown by aging Aging Closing balance Balance at the end of the previous year Within 1 year 1,502,973,120.81 1,435,656,538.16 1 to 2 years 840,053,566.75 752,249,706.13 2 to 3 years 459,644,352.37 328,760,244.57 3 to 4 years 152,955,822.24 126,586,534.46 4 to 5 years 139,671,335.71 98,335,587.45 Over 5 years 36,909,831.56 31,653,302.94 Sub-total 3,132,208,029.44 2,773,241,913.71 Less: Provision for bad debts 188,044,459.15 150,586,069.68 Total 2,944,163,570.29 2,622,655,844.03
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 141 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (III) Accounts receivables (Continued) 2. Accounts receivables disclosed according to the method of provision for bad debts Closing balance Balance at the end of the previous year Book balance Allowance for bad debts Book balance Allowance for bad debts Category Amount Proportion (%) Amount Provision ratio (%) Carrying amount Amount Proportion (%) Amount Provision ratio (%) Carrying amount Provision for bad debts on an individual basis 226,674.30 0.01 226,674.30 100.00 Provision for bad debts on credit risk characteristic group basis 3,132,208,029.44 100.00 188,044,459.15 6.00 2,944,163,570.29 2,773,015,239.41 99.99 150,359,395.38 5.42 2,622,655,844.03 Total 3,132,208,029.44 100.00 188,044,459.15 6.00 2,944,163,570.29 2,773,241,913.71 100.00 150,586,069.68 5.43 2,622,655,844.03 Provision for bad debts on credit risk characteristic group basis: Items for which allowance is made on group basis: Closing balance Name Accounts receivables Allowance for bad debts Provision ratio (%) Receivables from waste treatment fee 2,002,021,195.01 147,513,975.41 7.37 Receivables from national renewable energy subsidies 813,521,977.17 35,251,191.48 4.33 Receivables from electricity sales 316,664,857.26 5,279,292.26 1.67 Total 3,132,208,029.44 188,044,459.15 6.00
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026142 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (III) Accounts receivables (Continued) 3. Allowances for bad debts made, reversed or recovered for the period Changes during the period Category Balance at the end of the previous year Provision Recovered or reversed Charged off or written off Other changes Closing balance Provision for bad debts on an individual basis 226,674.30 226,674.30 Provision for bad debts on credit risk characteristic group basis 150,359,395.38 37,410,638.69 274,425.08 188,044,459.15 Total 150,586,069.68 37,410,638.69 226,674.30 274,425.08 188,044,459.15 4. Accounts receivables actually written off in current period There were no accounts receivables actually written off in current period. 5. Top five accounts receivables and contract assets according to closing balance of debtors Name Closing balance of accounts receivables Closing balance of contract assets Closing balance of accounts receivables and contract assets Percentage of total closing balance of accounts receivables and contract assets (%) Closing balance of provision for bad debts of accounts receivables and provision for impairment of contract assets Urban Management Committee of Tongzhou District, Beijing (̏ԯ ึ) 83,922,128.98 980,219,210.51 1,064,141,339.49 10.66 1,237,086.98 Chaoyang District City Management and Comprehensive Law Enforcement Bureau of Shantou City (̹၍ଣձၝ ҅) 316,055,563.43 351,691,075.14 667,746,638.57 6.69 45,315,478.81 Environmental Health Care Center of Zhangqiu District, Ji’nan City (̹˳ਜᐑྤሊ͛၍ᚐʕː) 127,784,875.70 421,312,975.26 549,097,850.96 5.50 11,257,263.26 Xinmi Housing and Urban-Rural Development Administration Bureau (ண၍ ଣ҅) 64,200,304.86 377,263,209.91 441,463,514.77 4.42 1,692,439.08 Comprehensive Law Enforcement Bureau of Haining City (ऎ∡̹ၝ ҅) 4,705,247.10 412,575,162.56 417,280,409.66 4.18 497,050.00 Total 596,668,120.07 2,543,061,633.38 3,139,729,753.45 31.45 59,999,318.13
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 143 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (IV) Receivables financing 1. Receivables financing by category Item Closing balance Balance at the end of the previous year Bank acceptance notes 26,228,763.95 25,946,648.82 Total 26,228,763.95 25,946,648.82 (V) Advances to suppliers 1. Advances to suppliers according to aging analysis Closing balance Balance at the end of the previous year Aging Amount Proportion (%) Amount Proportion (%) Within 1 year 28,781,758.18 89.63 25,409,582.21 90.79 1 to 2 years 1,167,182.66 3.63 1,563,137.31 5.58 Over 2 years 2,165,807.04 6.74 1,015,786.50 3.63 Total 32,114,747.88 100.00 27,988,506.02 100.00 2. Top five advances to suppliers according to closing balance of counterparties As at the end of the period, the total balance of advances to the top five debtors amounted to RMB11,269,622.27, representing 35.09% of the total balance of advances as at the end of the period.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026144 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (VI) Other receivables Item Closing balance Balance at the end of the previous year Interests receivable Dividends receivable Other receivables 84,934,306.42 55,607,921.07 Total 84,934,306.42 55,607,921.07 1. Other receivables (1) Disclosed by aging Aging Closing balance Balance at the end of the previous year Within 1 year 67,233,696.05 39,306,362.54 1 to 2 years 6,108,267.91 4,155,444.49 2 to 3 years 206,796.60 772,174.60 Over 3 years 32,864,875.21 32,804,188.01 Sub-total 106,413,635.77 77,038,169.64 Less: Provision for bad debts 21,479,329.35 21,430,248.57 Total 84,934,306.42 55,607,921.07
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 145 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (VI) Other receivables (Continued) 1. Other receivables (Continued) (2) Disclosed according to the method of provision for bad debts Closing balance Balance at the end of the previous year Book balance Allowance for bad debts Book balance Allowance for bad debts Category Amount Proportion (%) Amount Proportion ratio (%) Carrying amount Amount Proportion (%) Amount Proportion ratio (%) Carrying amount Provision for bad debts on an individual basis 18,582,452.21 17.46 18,582,452.21 100.00 18,582,452.21 24.12 18,582,452.21 100.00 Including: Receivable current accounts of former shareholders 12,961,261.85 12.18 12,961,261.85 100.00 12,961,261.85 16.82 12,961,261.85 100.00 Others 5,621,190.36 5.28 5,621,190.36 100.00 5,621,190.36 7.30 5,621,190.36 100.00 Provision for bad debts on credit risk characteristic group basis 87,831,183.56 82.54 2,896,877.14 3.30 84,934,306.42 58,455,717.43 75.88 2,847,796.36 4.87 55,607,921.07 Including: VAT refunds receivable and other tax refunds receivable 38,406,874.54 36.09 38,406,874.54 22,431,578.23 29.12 22,431,578.23 Receivables for treatment of fly ash 16,013,552.00 15.05 20,515.02 0.13 15,993,036.98 Others 33,410,757.02 31.40 2,876,362.12 8.61 30,534,394.90 36,024,139.20 46.76 2,847,796.36 7.91 33,176,342.84 Total 106,413,635.77 100.00 21,479,329.35 20.18 84,934,306.42 77,038,169.64 100.00 21,430,248.57 27.82 55,607,921.07 Other significant receivables with provision for bad debts made on individual basis: Closing balance Balance at the end of the previous year Name Book balance Allowance for bad debts Proportion ratio (%) Provision basis Book balance Allowance for bad debts Shenzhen Hanyang Holdings Company 6,988,073.50 6,988,073.50 100.00 Had long ageing and risk on collection 6,988,073.50 6,988,073.50 Dynagreen Environment Investment Limited 5,160,600.00 5,160,600.00 100.00 Had long ageing and risk on collection 5,160,600.00 5,160,600.00 Guizhou Xijie Environmental Health Management Co., Ltd. (ʮ̡) 2,668,488.18 2,668,488.18 100.00 Had long ageing and risk on collection 2,668,488.18 2,668,488.18 Jiamusi New Era City Infrastructure Construction Investment (Group) Co., Ltd. (ਿᓾ ʮ̡) 2,046,323.98 2,046,323.98 100.00 Had long ageing and risk on collection 2,046,323.98 2,046,323.98 Total 16,863,485.66 16,863,485.66 100.00 16,863,485.66 16,863,485.66
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026146 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (VI) Other receivables (Continued) 1. Other receivables (Continued) (2) Disclosed according to the method of provision for bad debts (Continued) Provision for bad debts on credit risk characteristic group basis: Items for which allowance is made on group basis: Closing balance Name Other receivables Allowance for bad debts Proportion ratio (%) VAT refunds receivable and other tax refunds receivable 38,406,874.54 Receivables for treatment of fly ash 16,013,552.00 20,515.02 0.13 Other 33,410,757.02 2,876,362.12 8.61 Total 87,831,183.56 2,896,877.14 3.30 (3) Allowance for bad debts Stage I Stage II Stage III Allowance for bad debts ECL for the following 12 months Lifetime ECL (without credit impairment) Lifetime ECL (with credit impairment) Total Balance at the end of the previous year 2,847,796.36 18,582,452.21 21,430,248.57 Balance at the end of last year during the period – Transferred to Stage II – Transferred to Stage III – Reversed to Stage II – Reversed to Stage I Made in the period 49,080.78 49,080.78 Reversed in the period Charged off in the period Written off in the period Other changes Closing balance 2,896,877.14 18,582,452.21 21,479,329.35
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 147 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (VI) Other receivables (Continued) 1. Other receivables (Continued) (4) Allowances for bad debts made, reversed or recovered for the period Changes during the period Category Balance at the end of the previous year Provision Recovered or reversed Charged off or written off Other changes Closing balance Provision for bad debts on an individual basis 18,582,452.21 18,582,452.21 Provision for bad debts on credit risk characteristic group basis 2,847,796.36 49,080.78 2,896,877.14 Including: VAT refunds receivable and other tax refunds receivable Receivables for treatment of fly ash 20,515.02 20,515.02 Others 2,847,796.36 28,565.76 2,876,362.12 Total 21,430,248.57 49,080.78 21,479,329.35 (5) There were no accounts receivables actually written off in current period (6) Receivables by nature Nature Book balance at the end of the period Book balance at the end of the last year Compensation receivable for assets 12,740,858.00 12,550,215.00 Receivable current accounts of former shareholders 12,961,261.85 12,961,261.85 VAT refunds receivable and other tax refunds receivable 38,406,874.54 22,431,578.23 Receivables for disposal of fly ash 16,013,552.00 Others 26,291,089.38 29,095,114.56 Total 106,413,635.77 77,038,169.64
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026148 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (VI) Other receivables (Continued) 1. Other receivables (Continued) (7) Top five other receivables according to closing balance of debtors Name of unit Nature of payment Closing balance Aging Percentage of total closing balance of other receivables (%) Closing balance of allowance for bad debts Urban Management Committee of Tongzhou District, Beijing (̏ԯ̹ஷψਜ ึ) Receivables for disposal of fly ash 16,013,552.00 Within 1 year 15.05 20,515.02 Huludao City Land Reserve Center Compensation receivable for assets 12,550,215.00 Over 5 years 11.79 1,255,021.50 Wuhan Chemical Industry Zone Tax Bureau under the State Administration of Taxation VAT refunds receivable and other tax refunds receivable 9,239,268.57 Over 1 year 8.68 Shenzhen Hanyang Holdings Company Receivable current accounts of former shareholders 6,988,073.50 Over 5 years 6.57 6,988,073.50 Xixiu District Environmental Health Management Office of Anshun City Advance payments made for others 5,747,454.03 Within 1 year, 1 to 2 years 5.40 489,035.42 Total 50,538,563.10 47.49 8,752,645.44
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 149 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (VII) Inventories 1. Categories of inventories Closing balance Balance at the end of the previous year Category Book balance Provision for impairment of inventories/ provision for contract performance costs Carrying amount Book balance Provision for impairment of inventories/ provision for contract performance costs Carrying amount Turnover materials 51,522,693.50 51,522,693.50 47,647,742.18 47,647,742.18 Total 51,522,693.50 51,522,693.50 47,647,742.18 47,647,742.18 (VIII) Contract assets 1. Contract assets Closing balance Balance at the end of the previous year Item Book balance Provision for impairment Carrying amount Book balance Provision for impairment Carrying amount Contract assets generated by electricity sales contract 347,084,212.12 2,512,378.36 344,571,833.76 306,911,315.69 2,221,585.77 304,689,729.92 PPP project construction services 6,501,285,489.95 53,085,360.33 6,448,200,129.62 6,370,835,439.03 52,559,074.88 6,318,276,364.15 Sub-total 6,848,369,702.07 55,597,738.69 6,792,771,963.38 6,677,746,754.72 54,780,660.65 6,622,966,094.07 Less: C ontract assets included in other non-current assets 6,318,316,958.10 51,826,289.07 6,266,490,669.03 6,191,507,585.28 51,355,112.44 6,140,152,472.84 Total 530,052,743.97 3,771,449.62 526,281,294.35 486,239,169.44 3,425,548.21 482,813,621.23
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026150 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (VIII) Contract assets (Continued) 2. Disclosure based on classification of impairment provision method for contract assets Closing balance Balance at the end of the previous year Book balance Provision for impairment Book balance Provision for impairment Category Amount Proportion (%) Amount Proportion ratio (%) Carrying amount Amount Proportion (%) Amount Proportion ratio (%) Carrying amount Provision for impairment on individual basis Provision for bad debts on credit risk characteristic group basis 6,848,369,702.07 100.00 55,597,738.69 0.81 6,792,771,963.38 6,677,746,754.72 100.00 54,780,660.65 0.82 6,622,966,094.07 Total 6,848,369,702.07 100.00 55,597,738.69 0.81 6,792,771,963.38 6,677,746,754.72 100.00 54,780,660.65 0.82 6,622,966,094.07 Provision for bad debts on credit risk characteristic group basis: Items for which allowance is made on group basis: Name Closing balance Contract assets Provision for impairment Proportion ratio (%) Contract assets generated by electricity sales contract 347,084,212.12 2,512,378.36 0.72 PPP project construction services 6,501,285,489.95 53,085,360.33 0.82 Total 6,848,369,702.07 55,597,738.69 0.81
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 151 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (VIII) Contract assets (Continued) 3. Particulars of impairment provision for contract assets in the period Changes in the current period Item Balance at the end of the previous year Provision in the period Reversed in the period Charged off/ written off in the period Other changes Closing balance Contract assets generated by electricity sales contract 2,221,585.77 290,792.59 2,512,378.36 PPP project construction services 52,559,074.88 –607,079.64 1,133,365.09 53,085,360.33 Total 54,780,660.65 –316,287.05 1,133,365.09 55,597,738.69 4. Contract assets actually written off during the period No contract assets were actually written off during the period (IX) Current portion of non-current assets Item Closing balance Balance at the end of the previous year Current portion of long-term receivables 40,472,196.13 46,454,709.89 Total 40,472,196.13 46,454,709.89
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026152 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (X) Other current assets Item Closing balance Balance at the end of the previous year Input VAT to be deducted and others 112,010,952.21 136,959,508.09 Total 112,010,952.21 136,959,508.09 (XI) Long-term receivables 1. Long-term receivables Closing balance Balance at the end of the previous year Item Book balance Allowance for bad debts Carrying amount Book balance Allowance for bad debts Carrying amount Receivables of BT projects 73,359,064.98 32,886,868.85 40,472,196.13 73,359,064.98 26,904,355.09 46,454,709.89 Performance bond 33,000,000.00 102,015.31 32,897,984.69 33,000,000.00 102,015.31 32,897,984.69 Sub-total 106,359,064.98 32,988,884.16 73,370,180.82 106,359,064.98 27,006,370.40 79,352,694.58 Less: Due within one year 73,359,064.98 32,886,868.85 40,472,196.13 73,359,064.98 26,904,355.09 46,454,709.89 Total 33,000,000.00 102,015.31 32,897,984.69 33,000,000.00 102,015.31 32,897,984.69
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 153 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XI) Long-term receivables (Continued) 2. Long-term receivables disclosed according to the method of provision for bad debts Closing balance Balance at the end of the previous year Book balance Allowance for bad debts Book balance Allowance for bad debts Category Amount Proportion (%) Amount Proportion ratio (%) Carrying amount Amount Proportion (%) Amount Proportion ratio (%) Carrying amount Provision for bad debts on an individual basis Provision for bad debts on credit risk characteristic group basis 106,359,064.98 100.00 32,988,884.16 31.02 73,370,180.82 106,359,064.98 100.00 27,006,370.40 25.39 79,352,694.58 Total 106,359,064.98 100.00 32,988,884.16 31.02 73,370,180.82 106,359,064.98 100.00 27,006,370.40 25.39 79,352,694.58 Provision for bad debts on credit risk characteristic group basis: Items for which allowance is made on group basis: Closing balance Name Long-term receivables Allowance for bad debts Proportion ratio (%) Receivables of BT projects 73,359,064.98 32,886,868.85 44.83 Performance bond 33,000,000.00 102,015.31 0.31 Total 106,359,064.98 32,988,884.16 31.02 3. Provision for bad debts of long-term receivables Changes in the current period Category Balance at the end of the previous year Provision Recovered or reversed Charged off or written off Other changes Closing balance Receivables of BT projects 26,904,355.09 5,982,513.76 32,886,868.85 Performance bond 102,015.31 102,015.31 Total 27,006,370.40 5,982,513.76 32,988,884.16 4. Long-term receivables actually written off during the period No long-term receivables were actually written off during the period.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026154 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XII) Long-term equity investments 1. Long-term equity investments Movements in the period Investee Balance at the end of the previous year (carrying amount) Balance of provision for impairment at the end of the previous year Increase in investment Decrease in investment Gain or loss of investment recognized using equity approach Adjustments to other comprehensive income Changes in other equity Declaration of payment of cash dividend or profit Provision for impairment Others Closing balance (carrying amount) Balance of provision for impairment at the end of the period 1. Joint venture Dynagreen A lliance Limited 7,865,370.00 –182,642.57 –44,845.04 7,637,882.39 Total 7,865,370.00 –182,642.57 –44,845.04 7,637,882.39 (XIII) Fixed assets 1. Fixed assets and disposal of fixed assets Item Closing balance Balance at the end of the previous year Fixed assets 87,320,159.14 83,624,641.25 Disposal of fixed assets Total 87,320,159.14 83,624,641.25
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 155 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XIII) Fixed assets (Continued) 2. Fixed assets Item Buildings Machinery and equipment Motor vehicles Others Total 1. Original carrying amount (1) Balance at the end of the previous year 234,361,294.73 107,824,329.84 39,966,786.29 49,537,399.03 431,689,809.89 (2) Increase in the period 381,547.03 3,501,088.03 5,118,209.89 9,000,844.95 – Purchase 176,964.61 2,882,488.03 996,113.49 4,055,566.13 – Tr ansferred from construction in progress 204,582.42 3,114,036.40 3,318,618.82 – In crease in business combinations 618,600.00 1,008,060.00 1,626,660.00 (3) Decrease in the period 95,575.22 2,231.24 97,806.46 – Disposal or retirement 95,575.22 2,231.24 97,806.46 (4) Closing balance 234,361,294.73 108,110,301.65 43,467,874.32 54,653,377.68 440,592,848.38 2. Accumulated depreciation (1) Balance at the end of the previous year 22,568,272.60 33,670,658.20 25,277,842.49 37,422,905.77 118,939,679.06 (2) Increase in the period 605,803.70 746,741.51 2,179,055.29 1,708,546.90 5,240,147.40 – Provision 605,803.70 746,741.51 2,087,987.29 1,479,400.90 4,919,933.40 – In crease in business combinations 91,068.00 229,146.00 320,214.00 (3) Decrease in the period 31,778.88 847.92 32,626.80 – Disposal or retirement 31,778.88 847.92 32,626.80 (4) Closing balance 23,174,076.30 34,385,620.83 27,456,897.78 39,130,604.75 124,147,199.66 3. Provision for impairment (1) Balance at the end of the previous year 168,892,782.97 59,097,070.60 1,135,636.01 229,125,489.58 (2) Increase in the period – Provision (3) Decrease in the period – Disposal or retirement (4) Closing balance 168,892,782.97 59,097,070.60 1,135,636.01 229,125,489.58 4. Carrying amount (1) Carrying amount at the end of the period 42,294,435.46 14,627,610.22 16,010,976.54 14,387,136.92 87,320,159.14 (2) Carrying amount at the end of the previous year 42,900,239.16 15,056,601.04 14,688,943.80 10,978,857.25 83,624,641.25
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026156 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XIII) Fixed assets (Continued) 3. Fixed assets with pending certificates of ownership Item Carrying amount Reasons for not obtaining certificates of ownership Dongguan Company 6,809,559.41 The land occupied by Dongguan Company’s aforementioned buildings, was owned and provided free of charge by the Chang’an Town People’s Government and the Chongtou Community Residents Committee of Chang’an Town, Dongguan City. Thus, it is impossible for Dongguan Company to obtain a House Title Certificate. However, management believes that the Group can effectively use the above fixed assets, and it will not have a significant impact on its operation. 4. Impairment test of fixed assets The Group conducted an impairment test on the asset group of Huludao hazardous waste treatment project. As at 30 June 2026, the long-term asset group included fixed assets, intangible assets, etc. The Group determined the recoverable amount of the relevant asset group based on the asset group of the business of Huludao Hazardous Waste Company. After comparing the net fair value of the relevant asset group after deducting disposal expenses and the present value of the estimated future cash flows, the present value of the estimated future cash flows was used to determine the recoverable amount of the relevant asset group. According to the test, the recoverable amount of the relevant asset group as determined based on the present value of the estimated future cash flows is higher than the carrying amount of the relevant asset group. Therefore, it is not required to make further provision for impairment based on the provision for impairment made in 2025. For the hazardous waste project of Huludao Hazardous Waste Company, the Group adopted the remaining term of the land use right specified in the land use right certificate of the projects as the term of forecast period. As at 30 June 2026, the key assumptions used by the Group in applying the discounted future cash flow method are as follows: Item 30 June 2026 Compound income growth rate 2.90% EBIT margin -16.3%-37.19% Pre-tax discount rate 7.04%
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 157 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XIV) Construction in progress 1. Construction in progress and construction materials Closing balance Balance at the end of the previous year Item Book balance Provision for impairment Carrying amount Book balance Provision for impairment Carrying amount Construction in progress 3,346,941.15 3,346,941.15 6,351,047.48 6,351,047.48 Total 3,346,941.15 3,346,941.15 6,351,047.48 6,351,047.48 (XV) Right-of-use assets 1. Right-of-use assets Item Buildings Motor vehicles Others Total 1. Original carrying amount (1) Ba lance at the end of the previous year 7,990,411.78 1,684,784.10 1,721,150.90 11,396,346.78 (2) Increase in the period 176,942.02 174,703.71 351,645.73 (3) Decrease in the period 207,744.30 1,379,708.76 1,587,453.06 (4) Closing balance 7,959,609.50 479,779.05 1,721,150.90 10,160,539.45 2. Accumulated depreciation (1) Balance at the end of the previous year 5,216,623.48 1,479,254.00 346,339.22 7,042,216.70 (2) Increase in the period 1,794,797.07 96,591.27 30,639.84 1,922,028.18 (3) Decrease in the period 207,744.30 1,379,708.76 1,587,453.06 (4) Closing balance 6,803,676.25 196,136.51 376,979.06 7,376,791.82 3. Provision for impairment (1) Balance at the end of the previous year (2) Increase in the period (3) Decrease in the period (4) Closing balance 4. Carrying amount (1) Carrying amount at the end of the period 1,155,933.25 283,642.54 1,344,171.84 2,783,747.63 (2) Carrying amount at the end of the previous year 2,773,788.30 205,530.10 1,374,811.68 4,354,130.08
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026158 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XVI) Intangible assets 1. Intangible assets Item BOT concession rights Land use rights Software Others Total 1. Original carrying amount (1) Balance at the end of the previous year 13,510,135,482.41 71,446,558.44 7,151,129.89 6,529,123.58 13,595,262,294.32 (2) Increase in the period 228,804,466.48 340,858.65 229,145,325.13 (3) Decrease in the period (4) Closing balance 13,738,939,948.89 71,446,558.44 7,491,988.54 6,529,123.58 13,824,407,619.45 2. Accumulated amortisation (1) Balance at the end of the previous year 2,970,956,328.56 10,014,474.21 3,169,560.76 3,396,442.65 2,987,536,806.18 (2) Increase in the period 251,975,100.52 119,608.08 326,650.63 252,421,359.23 (3) Decrease in the period (4) Closing balance 3,222,931,429.08 10,134,082.29 3,496,211.39 3,396,442.65 3,239,958,165.41 3. Provision for impairment (1) Balance at the end of the previous year 358,151,440.18 51,203,483.94 3,132,680.93 412,487,605.05 (2) Increase in the period (3) Decrease in the period (4) Closing balance 358,151,440.18 51,203,483.94 3,132,680.93 412,487,605.05 4. Carrying amount (1) Carrying amount at the end of the period 10,157,857,079.63 10,108,992.21 3,995,777.15 10,171,961,848.99 (2) Carrying amount at the end of the previous year 10,181,027,713.67 10,228,600.29 3,981,569.13 10,195,237,883.09
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 159 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XVI) Intangible assets (Continued) 2. Impairment test of intangible assets As at 30 June 2026, except for Huludao hazardous waste treatment project, no project company showed signs of impairment due to consecutive losses during the operating period. (XVII) Goodwill 1. Changes in goodwill Name of the investee or matters forming goodwill Balance at the end of the previous year Increase in the period Decrease in the period Closing balance Original carrying amount Huludao Hazardous Waste Company 43,910,821.67 43,910,821.67 Sub-total 43,910,821.67 43,910,821.67 Provision for impairment Huludao Hazardous Waste Company 43,910,821.67 43,910,821.67 Sub-total 43,910,821.67 43,910,821.67 Carrying amount 0.00 0.00 (XVIII) Long-term prepaid expenses Item Balance at the end of the previous year Increase in the period Amortisation in the period Other decreases Closing balance Royalties of emission right and others 2,224,240.53 863,660.61 1,360,579.92 Total 2,224,240.53 863,660.61 1,360,579.92
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026160 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XIX) Deferred tax assets and deferred tax liabilities 1. Deferred tax assets before offsetting Closing balance Balance at the end of the previous year Item Deductible temporary differences Deferred tax assets Deductible temporary differences Deferred tax assets Deferred income 9,220,909.41 2,305,226.91 9,419,461.35 2,354,864.94 Provision for impairment 281,003,947.51 52,280,758.03 237,398,234.47 41,769,850.37 Unrealised profits 989,581,198.06 229,671,782.48 1,014,214,083.37 234,534,299.56 Deductible losses 45,011,131.13 9,737,858.89 60,446,609.87 13,432,353.16 Assessed impairment 47,746,749.27 11,936,687.32 Lease liabilities 2,972,780.75 743,195.18 Total 1,375,536,716.13 306,675,508.81 1,321,478,389.06 292,091,368.03 2. Deferred tax liabilities before offsetting Closing balance Balance at the end of the previous year Item Taxable temporary differences Deferred tax liabilities Taxable temporary differences Deferred tax liabilities Temporary difference from concession rights and contract assets 2,116,659,858.31 529,164,964.59 2,066,601,493.18 516,650,373.30 Asset revaluation gain from business combination not under common control 126,458,683.00 31,614,670.75 130,211,568.12 32,552,892.03 Right-of-use assets 2,783,747.63 695,936.90 Total 2,245,902,288.94 561,475,572.24 2,196,813,061.30 549,203,265.33
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 161 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XIX) Deferred tax assets and deferred tax liabilities (Continued) 3. Deferred tax assets or liabilities presented on a net basis after offsetting End of the period End of the previous year Item Amount offset of deferred tax assets or liabilities Balance of deferred tax assets or liabilities after offsetting Amount offset of deferred tax assets or liabilities Balance of deferred tax assets or liabilities after offsetting Deferred tax assets 63,214,574.12 243,460,934.69 56,760,725.11 235,330,642.92 Deferred tax liabilities 63,214,574.12 498,260,998.12 56,760,725.11 492,442,540.22 4. Breakdown of unrecognised deferred tax assets Item Closing balance Balance at the end of the previous year Deductible temporary differences 570,774,187.62 583,143,409.08 Deductible losses 360,610,846.80 234,931,820.20 Total 931,385,034.42 818,075,229.28 5. Deductible losses that are not recognised as deferred tax assets will be expired in following years Year Closing balance Balance at the end of the previous year 2026 98,123.36 2027 38,823,332.54 44,174,745.27 2028 59,508,726.51 61,620,748.76 2029 58,072,066.81 56,597,226.41 2030 58,713,319.32 72,440,976.40 2031 145,493,401.62 Total 360,610,846.80 234,931,820.20
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026162 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XX) Other non-current assets Closing balance Balance at the end of the previous year Item Book balance Provision for impairment Carrying amount Book balance Provision for impairment Carrying amount PPP project construction services 6,318,316,958.10 51,826,289.07 6,266,490,669.03 6,191,507,585.28 51,355,112.44 6,140,152,472.84 Prepayments for projects and equipment 28,645,964.44 28,645,964.44 33,776,667.31 33,776,667.31 Input VAT to be deducted 181,670,479.40 181,670,479.40 199,637,953.59 199,637,953.59 Total 6,528,633,401.94 51,826,289.07 6,476,807,112.87 6,424,922,206.18 51,355,112.44 6,373,567,093.74 (XXI) Assets with restricted ownerships or right to use Closing balance Balance at the end of the previous period Item Carrying amount Restricted type Restricted situation Carrying amount Restricted type Restricted situation Other monetary funds 224,000.00 Freezing Litigation freezing 634,000.00 Freezing Litigation freezing Other monetary funds 500.00 Freezing Deposit 500.00 Freezing Deposit Notes receivables 517,506.42 Endorsed or discounted Endorsed and discounted notes receivables that have not yet matured and have not been derecognized Accounts receivables 1,877,206,170.14 Pledge Used for pledged borrowings 1,716,111,131.49 Pledge Used for pledged borrowings Contract assets 321,448,651.48 Pledge 295,649,290.39 Pledge Other non-current assets 3,533,759,422.06 Pledge 3,825,627,809.80 Pledge Intangible assets 5,126,978,000.00 Pledge 4,760,823,554.92 Pledge Total 10,860,134,250.10 10,598,846,286.60
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 163 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XXII) Short-term borrowings 1. Short-term borrowings Item Closing balance Balance at the end of the previous year Unsecured borrowings 293,171,730.56 293,188,903.61 Total 293,171,730.56 293,188,903.61 2. Outstanding overdue short-term borrowings There were no outstanding overdue short-term borrowings. (XXIII) Accounts payables 1. Presentation of accounts payables Item Closing balance Balance at the end of the previous year Payables for engineering, equipment and others 525,067,490.33 522,488,062.31 Total 525,067,490.33 522,488,062.31 Explanation: As at 30 June 2026 and 31 December 2025, the balance of accounts payable of the Group aged over one year based on their recording dates was RMB225,506,866.21 and RMB224,590,414.45, respectively, which were mainly used as the balance payable for engineering and equipment quality assurance funds, and balances of all remaining accounts payables were aged within 1 year.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026164 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XXIV) Contract liabilities 1. Contract liabilities Item Closing balance Balance at the end of the previous year Payment for steam supply received in advance, etc. 3,899,743.39 2,879,063.65 Total 3,899,743.39 2,879,063.65 (XXV) Employee benefits payable 1. Presentation of employee benefits payable Item Balance at the end of the previous year Increase in the period Decrease in the period Closing balance Short-term employee benefits 120,989,754.57 231,156,651.89 290,291,462.70 61,854,943.76 Post-employment Benefits – Defined Contribution Plans 2,041,412.29 28,382,912.09 28,386,976.66 2,037,347.72 Termination benefits 21,238.58 120,132.87 141,371.45 Total 123,052,405.44 259,659,696.85 318,819,810.81 63,892,291.48
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 165 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XXV) Employee benefits payable (Continued) 2. Presentation of short-term employee benefits Item Balance at the end of the previous year Increase in the period Decrease in the period Closing balance (1) Wages and salaries, bonus, allowances and subsidies 117,937,175.69 176,537,391.37 235,582,584.00 58,891,983.06 (2) Staff welfare 190,531.13 13,348,934.77 13,343,855.30 195,610.60 (3) Social insurance 306,265.67 14,887,025.42 14,896,053.35 297,237.74 Including: Medical insurance 261,577.22 13,129,705.24 13,131,888.23 259,394.23 Work injury insurance 28,013.04 1,229,460.22 1,236,014.57 21,458.69 Maternity insurance 16,675.41 527,859.96 528,150.55 16,384.82 (4) Housing funds 136,368.04 21,473,803.88 21,477,991.88 132,180.04 (5) Union running costs and employee education costs 2,419,414.04 4,554,577.42 4,636,059.14 2,337,932.32 (6) Other short-term employee benefits 354,919.03 354,919.03 Total 120,989,754.57 231,156,651.89 290,291,462.70 61,854,943.76 3. Presentation of defined contribution plans Item Balance at the end of the previous year Increase in the period Decrease in the period Closing balance Basic pensions 2,026,968.41 27,298,561.46 27,302,502.90 2,023,026.97 Unemployment insurance 14,443.88 1,084,350.63 1,084,473.76 14,320.75 Total 2,041,412.29 28,382,912.09 28,386,976.66 2,037,347.72
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026166 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XXVI) Taxes payable Tax item Closing balance Balance at the end of the previous year Enterprise income tax 72,785,535.05 55,556,384.08 Property tax 12,746,603.75 11,028,054.89 VAT 16,732,511.14 8,253,098.33 Urban land use tax 4,973,240.48 4,951,343.33 City maintenance and construction tax 1,036,105.40 517,057.14 Individual income tax 215,381.54 211,342.74 Others 2,396,606.78 1,881,343.25 Total 110,885,984.14 82,398,623.76 (XXVII) Other payables Item Closing balance Balance at the end of the previous year Dividends payable 375,189,055.56 23,600,000.00 Other payables 291,703,356.83 259,212,388.24 Total 666,892,412.39 282,812,388.24 1. Dividends payable Item Closing balance Balance at the end of the previous year Dividends payable to minority shareholders 60,500,000.00 23,600,000.00 Dividends payable to ordinary shareholders 314,689,055.56 Total 375,189,055.56 23,600,000.00
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 167 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XXVII) Other payables (Continued) 2. Other payables (1) Presentation by nature Item Closing balance Balance at the end of the previous year Deposits and guarantees payable 77,534,301.56 69,667,982.01 Management fee payable to Urban Construction Bureau 13,209,804.60 16,607,861.25 Refund of tariff 23,185,145.01 21,295,502.37 Fees payable 24,049,864.02 25,815,888.47 Payable for purchase of equity 1,234,620.00 1,234,620.00 Restricted shares repurchase obligation 109,832,100.00 110,363,100.00 Payment for treatment of fly ash 15,542,161.56 Others 27,115,360.08 14,227,434.14 Total 291,703,356.83 259,212,388.24 Other explanations: other payables aged over one year are mainly deposits and guarantees payable (XXVIII) Current portion of non-current liabilities Item Closing balance Balance at the end of the previous year Current portion of long-term borrowings 859,110,728.07 839,414,897.65 Current portion of debentures payable 23,648,595.28 31,047,213.53 Current portion of long-term payables 10,838,799.69 10,480,824.45 Current portion of lease liabilities 693,801.95 2,304,415.81 Total 894,291,924.99 883,247,351.44
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026168 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XXIX) Long-term borrowings Item Closing balance Balance at the end of the previous year Guaranteed and pledged borrowings 6,072,737,254.43 6,596,025,244.09 Unsecured borrowings 1,312,614,989.40 1,490,143,961.39 Sub-total 7,385,352,243.83 8,086,169,205.48 Less: Current portion of long-term borrowings 859,110,728.07 839,414,897.65 Including: Guaranteed and pledged borrowings 731,837,072.01 789,771,936.26 Unsecured borrowings 127,273,656.06 49,642,961.39 Total 6,526,241,515.76 7,246,754,307.83 As at 30 June 2026, pledged borrowings of RMB5,402,427,194.52 (31 December 2025: RMB5,874,887,817.06) represented bank borrowings of the Group. According to the Fixed Assets Loan Contract and the Rights Pledge Contract, the Group is required to pledge the collection rights of concession rights (including the rights to charge for electricity or processing of waste) under relevant PPP contracts to the lenders. As at 30 June 2026, pledged borrowings of RMB65,000,000.00 (31 December 2025: RMB75,000,000.00) were in relation to the financial leasing contract entered into between Huizhou Dynagreen Environment Co., Ltd. (Huizhou Company) and BOC Financial Leasing Co., Ltd., pursuant to which BOC Financial Leasing Co., Ltd. purchased the relevant equipment of Lanzilong domestic waste-to-energy project in Huiyang District, Huizhou City, Guangdong Province and leased it to Huizhou Company. As at 30 June 2026, the Group’s guaranteed borrowings of RMB598,397,471.61 (31 December 2025: RMB638,008,582.72) included the bank borrowings of RMB598,397,471.61 (31 December 2025: RMB638,008,582.72) from subsidiaries only guaranteed by the Company. Explanations on classification of long-term borrowings: Other explanations including the range of interest rate: as at 30 June 2026, the Group had no overdue long- term borrowings and the range of interest rate was from 2.29% to 3.2%.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 169 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XXX) Debentures payable 1. Details of debentures payable Item Closing balance Balance at the end of the previous year Convertible bonds 2,459,376,487.39 2,446,818,204.70 Medium-term notes 1,007,404,172.79 499,890,251.13 Sub-total 3,466,780,660.18 2,946,708,455.83 Less: Current portion of debentures payable 23,648,595.28 31,047,213.53 Total 3,443,132,064.90 2,915,661,242.30 2. Changes in debentures payable (excluding preference shares, perpetual bonds and other financial instruments classified as financial liabilities) Name Par value Coupon rate Issue date Term Issue amount Balance at the end of the previous year Issue in the period Interest at par value Interest amortisation Conversion in the period Repayment in the period Closing balance Interests on current portion of debentures payable Default or not Convertible bonds 2,360,000,000.00 0.2%-2% 2022/2/25 6 years 2,360,000,000.00 2,446,818,204.70 20,074,955.56 27,887,134.59 4,122.56 35,39 9,684.90 2,459,376,487.39 14,778,039.75 No Medium-Term Notes (25 Dynagreen MTN001) 500,000,000.00 2.00% 2025/11/26- 2025/11/27 3 years 500,000,000.00 499,890,251.13 5,027,777.77 184,003.43 505,102,032.33 5,972,222.21 No Medium-Term Notes (26 Dynagreen MTN001 (Scientific and Technological Innovation Bonds)) 500,000,000.00 1.88% 2026/3/10- 2026/3/11 3 years 500,000,000.00 499,336,792.46 2,898,333.32 67,014.68 502,302,140.46 2,898,333.32 No Total 3,360,000,000.00 2,946,708,455.83 499,336,792.46 28,001,066.65 28,138,152.70 35,399,684.90 3,466,780,660.18 23,648,595.28
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026170 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XXX) Debentures payable (Continued) 3. Explanations on convertible corporate bonds The Company publicly issued convertible debentures totalling RMB2.36 billion on 25 February 2022. The convertible debentures have a term of six years, with a nominal interest rate of 0.20% for the first year, and thereafter it will be gradually increased to 2.00% over the remaining years. Holders of the convertible debentures can exercise the right to convert the convertible debentures into stocks of the Company at the current conversion price during the conversion period. Within five trading days after the expiration of the conversion period, the Company will redeem all the convertible debentures that have not been converted at 109% of the par value of such convertible debentures (including the final installment of interest). During the conversion period, if the closing price of the Company’s stocks is not less than 130% (inclusive) of the current conversion price for at least 15 out of 30 consecutive trading days, the Company shall have the right to redeem all or part of the outstanding convertible debentures at par value of the convertible debentures plus the current accrued interest. During the last two interest bearing years of the convertible debentures issued, where the closing price of the Company’s shares is lower than 70% (excluding 70%) of the current conversion price in any 30 consecutive trading days, holders of the convertible debentures shall have the right to sell all or part of the convertible debentures back to the Company at par value plus the current accrued interest. In addition, the Company shall have the right to redeem all or part of the outstanding convertible debentures at par value of the debentures plus the current accrued interest if the balance of the outstanding convertible debentures is less than RMB30 million. Such convertible debentures were issued at the initial conversion price of RMB9.82 per share, which should be not less than the average trading price of the Company’s stocks in the first twenty trading days before the announcement date of the prospectus (the average trading price on the trading day before adjustment shall be adjusted accordingly in case of stock price adjustment arising from ex- rights and ex-dividend within such twenty trading days), and the average trading price on the previous trading day. After the issuance, the Company will adjust the conversion price accordingly in the event of bonus shares distribution, transfer to share capital, issuance of new shares (excluding share capital increased due to issuance of convertible debentures into shares), allotment of shares and distribution of cash dividends. During the duration of the convertible debentures issued, where the closing price of the Company’s shares is lower than 85% of the current conversion price in at least 15 of 30 consecutive trading days, the Board of Directors of the Company shall have the right to propose a plan for conversion price reduction and submit it to the shareholders’ meeting of the Company for deliberation and voting. On 19 July 2023, due to the distribution of cash dividends for 2022, the Company adjusted the conversion price to RMB9.60. On 26 June 2024, due to the distribution of cash dividends for 2023, the Company adjusted the conversion price to RMB9.45. On 19 November 2024, due to the distribution of cash dividends for 2023, the Company adjusted the conversion price to RMB9.35. On 30 July 2025, due to the distribution of cash dividends for 2024, the Company adjusted the conversion price to RMB9.15. On 11 November 2025, due to the distribution of cash dividends for 2024, the Company adjusted the conversion price to RMB9.05. On 26 December 2025, due to the issuance of new shares upon completion of the registration of the granted restricted shares, the Company adjusted the conversion price to RMB8.89. As at 30 June 2026, convertible bonds with a total par value of RMB4,000.00 have been converted into shares. As a result, the Company’s share capital increased by RMB448.00 and the capital reserve increased by RMB4,051.70. As at 30 June 2026, convertible bonds with a total par value of RMB143,000.00 have been converted into shares. As a result, the Company’s share capital increased by RMB14,798.00 and the capital reserve increased by RMB134,214.26.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 171 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XXXI) Lease liabilities Item Closing balance Balance at the end of the previous year Lease liabilities 2,972,780.75 4,542,624.34 Less: Reclassification to current portion of non-current liabilities 693,801.95 2,304,415.81 Total 2,278,978.80 2,238,208.53 (XXXII) Long-term payables Item Closing balance Balance at the end of the previous year Borrowings from units 6,300,000.00 Long-term payables for leachate treatment stations 231,871,563.37 237,111,975.55 Less: Current portion of long-term payables 10,838,799.69 10,480,824.45 Total 227,332,763.68 226,631,151.10 (XXXIII) Estimated liabilities Item Balance at the end of the previous year Increase in the period Decrease in the period Closing balance Decommissioning costs of hazardous waste landfill 14,915,631.51 335,601.72 15,251,233.23 Total 14,915,631.51 335,601.72 15,251,233.23 Explanation: Decommissioning costs of hazardous waste landfill represent a decommissioning cost of hazardous waste landfill appropriated by the Company’s subsidiary Huludao Hazardous Waste Company according to the Administrative Measures for the Accrual of Decommissioning Costs of Centralised Hazardous Waste Disposal Facilities and Sites, which became effective since 2022, and is included in the cost of related fixed assets.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026172 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XXXIV) Deferred income Item Balance at the end of the previous year Increase in the period Decrease in the period Closing balance Government grants 165,695,628.99 1,500,000.00 3,651,477.80 163,544,151.19 Total 165,695,628.99 1,500,000.00 3,651,477.80 163,544,151.19 (XXXV) Share capital Item Balance at the end of the previous year Increase (+) or (–) in the period Closing balance New issue Bonus issue Shares converted from reserves Others Sub-total RMB ordinary shares 1,026,224,558.00 448.00 448.00 1,026,225,006.00 Overseas listed foreign shares 404,359,792.00 404,359,792.00 Total 1,430,584,350.00 448.00 448.00 1,430,584,798.00 Other explanation: For details of increase in share capital, please refer to Note V(XXX) (XXXVI) Other equity instruments Item Opening balance Increase in the period Conversion in the period Others Closing balance Convertible bonds 217,556,068.55 368.76 217,555,699.79 Total 217,556,068.55 368.76 217,555,699.79
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 173 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XXXVII) Capital surplus Item Balance at the end of the previous year Increase in the period Decrease in the period Closing balance Capital premium (share premium) 2,485,432,829.41 4,051.70 2,485,436,881.11 Other capital surplus 4,408,434.00 25,322,429.22 29,730,863.22 Total 2,489,841,263.41 25,326,480.92 2,515,167,744.33 Other explanations, including changes in the current period, reasons for the changes: (1) For details of increase in capital surplus, please refer to Note V (XXX) (2) The increase in capital surplus – other capital surplus was affected by share-based payment. (XXXVIII) Treasury shares Item Balance at the end of the previous year Increase in the period Decrease in the period Closing balance Restricted shares 110,363,100.00 110,363,100.00 Total 110,363,100.00 110,363,100.00
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026174 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XXXIX) Other comprehensive income Item Balance at the end of the previous year Amount for the period Closing balance Amount before income tax for the period Less: Amount transferred to profit or loss for the period for those previously included in other comprehensive income Less: Income tax expenses Attributable to the parent after tax Attributable to the minority shareholders after tax Less: Amount transferred from other comprehensive income to retained profit for the period 1. Other comprehensive income that cannot be reclassified to profit or loss 2. Other comprehensive income that will be reclassified to profit or loss 2,079,875.32 –44,845.04 –44,845.04 2,035,030.28 Including: O ther comprehensive income that may be reclassified to profit or loss under equity method –44,845.04 –44,845.04 –44,845.04 Exchange differences from translation of foreign currency financial statements 2,079,875.32 2,079,875.32 Total other comprehensive income 2,079,875.32 –44,845.04 –44,845.04 2,035,030.28 (XL) Special reserve Item Balance at the end of the previous year Increase in the period Decrease in the period Closing balance Safety production expenses 35,026,096.24 27,824,085.32 17,146,808.57 45,703,372.99 Total 35,026,096.24 27,824,085.32 17,146,808.57 45,703,372.99
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 175 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XLI) Surplus reserve Item Balance at the end of the previous year Increase in the period Decrease in the period Closing balance Statutory surplus reserve 441,355,480.38 441,355,480.38 Total 441,355,480.38 441,355,480.38 (XLII) Undistributed profits Item Amount for the period Amount for the previous period Undistributed profits at end of last year before adjustment 3,760,003,651.86 3,661,556,189.50 Adjustment for undistributed profits at beginning of year (“+” for plus; “–” for less) Undistributed profits at beginning of year after adjustment 3,760,003,651.86 3,661,556,189.50 Add: net profit attributable to owners of the parent for the period 464,586,896.22 377,232,320.56 Less: Appropriation of statutory surplus reserve Dividends payable on ordinary shares 314,689,055.56 278,690,629.80 Undistributed profits at end of period 3,909,901,492.52 3,760,097,880.26 In accordance with the resolution at the shareholders’ meeting, dated 10 June 2026, the Company proposed a cash dividend to the shareholders at RMB0.22 (tax inclusive) per share, and the Resolution in relation to the Repurchase and Cancellation of Part of the Restricted Shares was considered and approved. As one incentive participant under the first grant of the restricted A share incentive scheme of the Company has terminated the labour relationship with the Company due to death, in accordance with the Restricted A Share Incentive Scheme (Updated Draft) of Dynagreen Environmental Protection Group Co., Ltd., the Company proposed to repurchase and cancel an aggregate of 180,000 unlocked restricted shares granted to the incentive participant. The total amount was approximately RMB314,689,100 based on the 1,430,584,800 issued shares after deducting the 180,000 shares to be repurchased and cancelled.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026176 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XLIII) Revenue and operating costs 1. Revenue and operating costs Amount for the period Amount for the previous period Item Revenue Costs Revenue Costs Principal businesses 1,809,851,947.67 938,558,378.37 1,636,414,234.92 849,088,883.66 Other businesses 66,802,163.04 731,742.38 47,459,647.68 766,114.72 Total 1,876,654,110.71 939,290,120.75 1,683,873,882.60 849,854,998.38 Presentation of revenue from principal businesses: Revenue Costs Waste treatment, power generation and steam supply business 1,531,410,602.86 868,413,265.65 Interest income from PPP projects 196,384,957.98 Others 82,056,386.83 70,145,112.72 Total 1,809,851,947.67 938,558,378.37 Revenue and cost of sale from other operations: Amount for the period Item Revenue Costs Revenue from sludge and others 66,802,163.04 731,742.38 Total 66,802,163.04 731,742.38
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 177 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XLIII) Revenue and operating costs (Continued) 2. Disaggregated of revenue and operating costs The revenue generated by customer contracts in the period is as follows: Category Amount for the period Amount for the previous period Revenue from main operations 1,809,851,947.67 1,636,414,234.92 Including: Waste treatment fees 280,800,415.92 263,205,777.37 Revenue from power generation and steam supply 1,250,610,186.94 1,153,473,881.31 Interest income 196,384,957.98 194,176,402.86 Others 82,056,386.83 25,558,173.38 Revenue from other operations 66,802,163.04 47,459,647.68 Total 1,876,654,110.71 1,683,873,882.60 Category Amount for the period Amount for the previous period Revenue from main operations 1,809,851,947.67 1,636,414,234.92 Including: Recognised at a point in time 1,308,569,207.85 1,203,450,546.38 Recognised over a period of time 304,897,781.84 238,787,285.68 Interest income 196,384,957.98 194,176,402.86 Revenue from other operations 66,802,163.04 47,459,647.68 Total 1,876,654,110.71 1,683,873,882.60 3. Transaction price amortised to the remaining performance obligations As at 30 June 2026, the transaction price attributable to signed contracts with unsatisfied performance obligations amounted to RMB52,636,000.00, including: Revenue of RMB52,636,000.00 is expected to be recognised in the next 1 year; 4. There were no material changes in contracts or material adjustments to transaction prices
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026178 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XLIV) Taxes and surcharges Item Amount for the period Amount for the previous period Property tax 22,518,792.09 22,996,028.69 Land use tax 6,111,613.01 6,123,616.23 City maintenance and construction tax 5,453,883.84 3,242,650.41 Educational surcharge (including local) 4,301,108.94 2,550,610.99 Others 3,418,363.10 3,283,859.33 Total 41,803,760.98 38,196,765.65 (XLV) Selling expenses Item Amount for the period Amount for the previous period Employee benefits 206,778.45 480,657.82 Depreciation and amortisation 2,122.92 2,529.87 Others 652,559.72 77,658.56 Total 861,461.09 560,846.25
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 179 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XLVI) General and administrative expenses Item Amount for the period Amount for the previous period Employee benefits 60,253,328.84 62,455,554.02 External labour costs 8,408,435.60 8,818,905.47 Depreciation and amortisation 3,583,794.61 4,504,331.69 Intermediary service fees 2,569,131.15 2,260,653.07 General office and communication expenses 1,604,314.42 1,585,789.24 Transportation expenses 3,330,491.68 2,430,024.27 Business entertainment expenses 1,540,139.00 2,754,659.17 Utilities and leasing expenses 1,172,333.60 1,367,478.66 Share-based payment expenses 22,113,996.00 Others 13,154,698.16 19,047,213.06 Total 117,730,663.06 105,224,608.65 (XLVII) Research and development expenses Item Amount for the period Amount for the previous period Employee benefits 2,136,750.51 2,131,665.29 Depreciation and amortisation 91,674.39 92,102.16 Utilities and property expenses 19,916.88 20,391.14 Travel expenses 126,943.11 123,501.45 Intermediary service fees 23,836.64 68,266.97 Materials expenses 369,427.44 Share-based payment expenses 1,306,236.00 Others 96,209.94 28,052.35 Total 4,170,994.91 2,463,979.36
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026180 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (XLVIII) Financial expenses Item Amount for the period Amount for the previous period Interest expenses 170,855,600.96 193,144,259.39 Including: Interest costs on lease liabilities 77,900.09 143,598.13 Less: Interest capitalisation Net interest expenses 170,855,600.96 193,144,259.39 Less: Interest income 2,074,688.86 2,911,970.55 Exchange gains or losses 29,470.93 12,144.20 Handling fees and others 497,144.03 955,177.93 Total 169,307,527.06 191,199,610.97 (XLIX) Other income Item Amount for the period Amount for the previous period VAT refund income 74,781,044.52 44,144,915.63 Handling fee for withholding individual income tax 348,858.89 349,634.21 Amortisation of deferred income 3,651,477.80 3,596,112.50 Others 714,723.98 1,146,596.92 Total 79,496,105.19 49,237,259.26 (L) Investment income Item Amount for the period Amount for the previous period Investment income from long-term equity investments under equity method -182,642.57 Total -182,642.57
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 181 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (LI) Credit impairment losses Item Amount for the period Amount for the previous period Losses on bad debts of accounts receivables –37,410,638.69 –46,202,867.74 Losses on bad debts of other receivables –49,080.78 –374,049.24 Losses on bad debts of long-term receivables –5,982,513.76 –294,949.41 Total –43,442,233.23 –46,871,866.39 (LII) Impairment losses on assets Item Amount for the period Amount for the previous period Impairment losses on contract assets 316,287.05 –2,794,310.98 Total 316,287.05 –2,794,310.98 (LIII) Gains on disposal of assets Item Amount for the period Amount for the previous period Amount included in non-recurring gains and losses items for the current period Gains on disposal of fixed assets –40,837.05 –53.01 –40,837.05 Total –40,837.05 –53.01 –40,837.05 (LIV) Non-operating income Item Amount for the period Amount for the previous period Amount included in non-recurring gains and losses items for the current period Gains on destroy or scrap of non-current assets 7,966.85 1,093.81 7,966.85 Others 1,003,146.18 807,710.13 1,003,146.18 Total 1,011,113.03 808,803.94 1,011,113.03
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026182 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (LV) Non-operating expenses Item Amount for the period Amount for the previous period Amount included in non-recurring gains and losses items for the current period Losses on destroy or scrap of non-current assets 1,103.77 Others 537,366.82 423,665.13 537,366.82 Total 537,366.82 424,768.90 537,366.82 (LVI) Income tax expenses 1. List of income tax expenses Item Amount for the period Amount for the previous period Income tax expenses for the current period 149,405,919.89 93,523,058.51 Deferred income tax expenses 1,847,197.38 4,228,196.36 Total 151,253,117.27 97,751,254.87 2. Reconciliation of accounting profit and income tax expenses Item Amount for the period Total profit 640,110,008.46 Income tax expenses calculated based on the statutory or applicable tax rate 160,027,502.12 Effect of change in the tax rates and preferential tax rates –29,743,002.40 Non-deductible expenses 27,512,217.26 Effect of temporary differences for which no deferred tax assets were recognised –3,092,305.37 Effect of tax losses for which no deferred tax assets was recognised 37,698,388.89 Reversal and utilisation of tax losses for which deferred tax assets were recognised in prior years 2,359,781.35 Recognition of tax losses of deferred tax assets not recognised of previous years and other temporary differences –1,322,197.38 Investment losses –42,500,000.00 Utilisation of tax losses of deferred tax assets not recognised of previous years –1,841,214.22 Credit for investment in special equipment –2,057,464.10 Reconciliation of filing difference 5,641,947.61 Non-taxable income –842,022.22 Additional deduction on research and development expenses –666,168.57 Others 77,654.30 Income tax expenses 151,253,117.27
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 183 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (LVII) Earnings per share 1. Basic earnings per share Basic earnings per share is calculated by dividing consolidated net profit attributable to holders of ordinary shares of the parent company by weighted average number of ordinary shares in issue of the Company: Item Amount for the period Amount for the previous period Consolidated net profit attributable to holders of ordinary shares of the parent company 464,586,896.22 377,232,320.56 Weighted average number of ordinary shares in issue of the Company 1,393,454,590.71 1,393,452,901.86 Basic earnings per share 0.33 0.27 Including: Ba sic earnings per share relating to continuing operations 0.33 0.27 Ba sic earnings per share relating to discontinued operations 2. Diluted earnings per share Diluted earnings per share is calculated by consolidated net profit attributable to holders of ordinary shares of the parent company (diluted) by the weighted average number of ordinary shares in issue of the Company (diluted): Item Amount for the period Amount for the previous period Consolidated net profit attributable to holders of ordinary shares of the parent company (diluted) 507,530,253.77 420,346,425.32 Weighted average number of ordinary shares in issue of the Company (diluted) 1,669,502,233.86 1,645,845,880.08 Diluted earnings per share 0.30 0.26 Including: Di luted earnings per share relating to continuing operations 0.30 0.26 Di luted earnings per share relating to discontinued operations
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026184 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (LVIII) Supplementary information of income statement classification of expenses by nature Operating costs, selling expenses, general and administrative expenses, and research and development expenses in income statement classified by nature were set out as follows: Item Amount for the period Amount for the previous period Employee benefits 257,922,212.28 257,173,410.24 Depreciation and amortisation expenses 260,175,066.77 258,448,988.59 Environmental protection expenses 108,607,084.64 113,725,495.38 Maintenance expenses 72,794,142.26 62,788,976.11 Fuel expenses 93,419,754.99 111,379,846.24 Materials expenses 34,032,749.68 31,450,133.42 Utilities 12,473,295.57 11,715,868.76 Waste transfer costs 40,847,991.76 36,256,378.34 Safety production expenses 27,119,156.03 25,821,928.73 External labour costs 23,540,787.96 21,608,787.24 Professional fees 2,592,967.79 2,350,146.46 Share-based payment expenses 26,310,906.00 Transportation expenses 33,359,473.43 9,836,209.36 Others 68,857,650.65 15,548,263.77 Total 1,062,053,239.81 958,104,432.64
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 185 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (LIX) Statement of cash flows 1. Cash relating to operating activities (1) Cash received relating to other operating activities Item Amount for the period Amount for the previous period Government grants 2,214,719.13 1,639,405.03 Refund of income tax 2,857,445.93 10,521,758.99 Deposits 12,868,698.63 11,429,082.39 Restricted deposits 1,988,058.89 Others 2,952,695.47 3,867,118.94 Total 22,881,618.05 27,457,365.35 (2) Cash paid relating to other operating activities Item Amount for the period Amount for the previous period Payment of deposits 6,119,582.32 3,322,086.48 Restricted deposits 1,578,058.89 6,824,000.00 Others 33,631,102.60 41,041,343.66 Total 41,328,743.81 51,187,430.14 2. Cash relating to investing activities (1) Cash received relating to other investing activities There was no cash received relating to other investing activities in the period (2) Cash paid relating to other investing activities There was no cash paid relating to other investing activities in the period
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026186 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (LIX) Statement of cash flows (Continued) 3. Cash relating to financing activities (1) Cash received relating to other financing activities There was no cash received relating to other financing activities in the period (2) Cash paid relating to other financing activities Item Amount for the period Amount for the previous period Cash repayments of principal and interest of lease liabilities 1,999,389.41 2,354,766.92 Payments for repurchase of restricted shares and interests 534,982.50 Payment of expenses for medium-term notes 28,000.00 Total 2,562,371.91 2,354,766.92 (3) Changes in liabilities arising from financing activities Increase in the period Decrease in the period Item Balance at the end of the previous year Cash movement Non-cash movement Cash movement Non-cash movement Closing balance Borrowings (including those due within one year) 8,379,358,109.09 1,070,000,000.00 353,494,846.91 2,124,328,981.61 7,678,523,974.39 Debentures payable (including those due within one year) 2,946,708,455.83 499,325,000.00 56,179,011.81 35,427,684.90 4,122.56 3,466,780,660.18 Lease liabilities (including those due within one year) 4,542,624.34 429,545.82 1,999,389.41 2,972,780.75 Dividends payable 23,600,000.00 351,589,055.56 375,189,055.56 Other payables 110,363,100.00 5,021,565.83 5,552,565.83 109,832,100.00 Long-term payables 6,300,000.00 24,879.16 24,879.16 6,300,000.00 Total 11,464,572,289.26 1,575,625,000.00 766,738,905.09 2,167,333,500.91 4,122.56 11,639,598,570.88
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 187 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (LX) Supplementary information to the cash flow statement 1. Supplementary information to the cash flow statement Supplementary information Amount for the period Amount for the previous period 1. Re conciliation from net profit to cash flows from operating activities Net profit 488,856,891.19 398,576,882.39 Add: Credit impairment losses 43,442,233.23 46,871,866.39 Losses on asset impairment –316,287.05 2,794,310.98 Depreciation of fixed assets 4,902,509.22 8,742,033.54 Depletion of oil and gas assets Depreciation of right-of-use assets 1,922,028.18 2,195,719.41 Amortisation of intangible assets 252,413,519.45 246,401,681.79 Amortisation of long-term prepaid expenses 863,660.61 1,109,553.85 Loss on disposal of fixed assets, intangible assets and other long-term assets (gain is represented by “–”) 40,837.05 53.01 Losses on scrap of fixed assets (gain is represented by “–”) 9.96 Loss on changes in fair value (gain is represented by “–”) Financial expenses (gain is represented by “–”) 163,345,596.69 185,282,092.81 Investment losses (gain is represented by “–”) 182,642.57 Decrease in deferred tax assets (increase is represented by “–”) –8,130,291.77 7,987,265.28 Increase in deferred tax liabilities (decrease is represented by “–”) 5,818,457.90 –3,759,068.92 Changes in restricted deposits 410,000.00 –6,824,000.00 Decrease in inventories (increase is represented by “–”) –3,874,951.32 1,637,675.67 Decrease in operating receivables (increase is represented by “–”) –249,416,708.36 –221,774,436.42 Increase in operating payables (decrease is represented by “–”) –32,376,393.43 –45,563,713.33 Others 37,317,348.25 8,566,136.62 Net cash flows from operating activities 705,401,092.41 632,244,063.03 2. Ma jor investment and financing activities not involving cash receipts and payments Conversion of debts to capital Convertible corporate bonds due within one year Right-of-use assets acquired by assuming lease liabilities 3. Net changes in cash and cash equivalents Closing balance of cash 1,445,332,991.31 910,019,296.52 Less: Opening balance of cash 1,542,841,791.84 867,810,323.28 Add: Closing balance of cash equivalents Less: Opening balance of cash equivalents Net increase in cash and cash equivalents –97,508,800.53 42,208,973.24
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026188 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (LX) Supplementary information to the cash flow statement 2. Net cash paid for acquisition of subsidiaries in the current period Item Amount Cash or cash equivalents paid during the current period for the business combination occurred during the current period 129,278,500.00 Including: Xinmi Company 129,278,500.00 Less: Cash and cash equivalents held by subsidiaries on the date of acquisition 5,046,276.37 Including: Xinmi Company 5,046,276.37 Net cash paid for acquisition of subsidiaries 124,232,223.63 3. Composition of cash and cash equivalents Item Closing balance Balance at the end of the previous year I. Cash 1,445,332,991.31 1,542,841,791.84 Including: Cash on hand 32.00 Digital currency readily available for payment Bank deposits readily available for payment 1,445,332,991.31 1,542,841,759.84 Other cash at bank and on hand readily available for payment Central bank deposits available for payment Deposits in other banks Call loans to banks II. Cash equivalents Including: Bond investments due within three months III. Balance of cash and cash equivalents at the end of the period 1,445,332,991.31 1,542,841,759.84 Including: Cash and cash equivalents held but not available for use by the parent company or other subsidiaries of the Group
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 189 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (LXI) Foreign currency items 1. Foreign currency items Item Closing foreign currency balance Exchange rate Closing balance in RMB Cash at bank and on hand 739,246.25 Including: USD 285.28 6.8109 1,943.01 JPY 11.00 0.0418 0.46 HKD 848,889.28 0.86855 737,302.78 (LXII) Leases 1. As lessee Item Amount for the period Amount for the previous period Interest expenses of lease liabilities 77,900.09 143,598.13 Simplified short-term lease expenses included in the related cost of assets or current profit and loss 952,552.83 839,098.33 Total cash outflow related to leases 2,951,942.24 3,193,865.25
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026190 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (LXIII) PPP project contract The Company enters into a PPP project contract with the government and its authorized implementing agency (contract grantor) in accordance with relevant procedures to participate in the construction and operation of the project in the mode of concession rights. The Company uses the PPP project assets to provide public goods and services on behalf of the government during the operation period stipulated in the contract, and receives compensation for the public goods and services it provides in the period as stipulated in the contract. The government party controls or regulates the type, object and price of public goods and services that the Company provides when using the PPP project assets; when the PPP project contract is terminated, the government party controls the material residual interests of the PPP project assets through ownership, income rights or other forms. The accounting treatment related to PPP project contracts is as follows: (1) If the Company provides construction services (including construction, renovation and expansion, the same below) or outsource the services to other parties, etc., it is required to determine whether its identity is the main responsible person or agent, and carry out accounting treatment and recognize contract assets in accordance with the Accounting Standards for Business Enterprises No. 14 – Revenue. (2) If the Company provides multiple services according to the PPP project contract, in accordance with the Accounting Standards for Business Enterprises No. 14 – Revenue, it is required to identify individual performance obligations under the contract, and the transaction price shall be allocated to performance obligations according to the relative proportion of the stand-alone selling price of each performance obligation. (3) Borrowing costs incurred during the construction of PPP project assets shall be accounted for by the Company in accordance with the requirements of the Accounting Standards for Business Enterprises No. 17 – Borrowing Costs. The Company shall capitalise the part of the borrowing costs recognised as intangible assets when the relevant borrowing costs meet the conditions for capitalisation and shall carry forward to intangible assets when the assets of the PPP project reach the predetermined usable state. Borrowing costs other than those mentioned above shall be expensed.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 191 VIII. FINANCIAL REPORT (CONTINUED) V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (LXIII) PPP project contract (Continued) (4) According to the PPP project contracts, the Company has the right to charge fees to those who obtain public goods and services during the operation of the project. However, if the amount of fees is uncertain, this right does not constitute an unconditional right to receive cash. The consideration amount of relevant PPP project assets or the recognized construction revenue amount shall be recognized as intangible assets when the PPP project assets reach the predetermined usable state, and accounting treatment shall be carried out in accordance with the Accounting Standards for Business Enterprises No. 6 – Intangible Assets. (5) According to the PPP project contracts, during the operation of project, the conditions for the right to receive cash (or other financial assets) in an identifiable amount shall be recognized as receivables when the Company has the right to receive the consideration (which is only dependent on the factors of the passage of time), and accounting treatment shall be carried out in accordance with the Accounting Standards for Business Enterprises No. 22 – Recognition and Measurement of Financial Instruments. When the PPP project assets reach the predetermined usable state, the Company shall recognize the difference between the consideration amount of the relevant PPP project assets or the recognized construction revenue amount and the cash (or other financial assets) which is entitled to receive the ascertainable amount as intangible assets. (6) The PPP project assets of the Company in accordance with the provisions of this interpretation are not recognised as fixed assets. (7) According to the PPP project contracts, if the Company obtains other assets from the government that form part of the contract consideration payable by the government, the Company shall conduct accounting treatment in accordance with the provisions of the Accounting Standards for Business Enterprises No. 14 – Revenue, and shall not be regarded as government grants. (8) After the PPP project assets reach the predetermined usable state, the Company recognizes revenue related to operating services in accordance with the Accounting Standard for Business Enterprises No. 14 – Revenue. (9) In order to maintain a certain service capacity of PPP project assets or maintain a certain state of use before handing over the assets to the government, if the services provided by the Company under the PPP project contract do not constitute a single performance obligation, accounting treatment shall be carried out for the estimated expenditure in accordance with the Accounting Standards for Business Enterprises No. 13 – Contingencies.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026192 VIII. FINANCIAL REPORT (CONTINUED) VI. RESEARCH AND DEVELOPMENT EXPENDITURES (I) Research and development expenditures Item Amount for the period Amount for the previous period Employee benefits 2,136,750.51 2,131,665.29 Depreciation and amortisation 91,674.39 92,102.16 Utilities and property expenses 19,916.88 20,391.14 Travel expenses 126,943.11 123,501.45 Intermediary service fees 23,836.64 68,266.97 Materials expenses 369,427.44 Share-based payment expenses 1,306,236.00 Others 96,209.94 28,052.35 Total 4,170,994.91 2,463,979.36 Including: Expensed research and development expenditure 4,170,994.91 2,463,979.36 Capitalized research and development expenditure VII. CHANGES IN SCOPE OF COMBINATION (I) Business combinations involving enterprises not under common control 1. Business combinations involving enterprises not under common control that occurred during the current period Name of acquiree Time of acquisition of equity interests Consideration for acquisition of equity interests Percentage of equity interests acquired (%) Method of acquisition of equity interests Date of acquisition Basis for determining the date of acquisition Income of the acquiree from the date of acquisition to the end of the period Net profit of the acquiree from the date of acquisition to the end of the period Cash flows of the acquiree from the date of acquisition to the end of the period Xinmi Company 1 March 2026 129,278,500.00 90.00 Acquisition in cash 1 March 2026 Acquisition of control 19,545,896.52 7,670,149.32 38,295,663.78
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 193 VIII. FINANCIAL REPORT (CONTINUED) VII. CHANGES IN SCOPE OF COMBINATION (Continued) (I) Business combinations involving enterprises not under common control (Continued) 2. Cost of combination and goodwill Xinmi Company Cost of combination – Cash 129,278,500.00 – Fair value of non-cash assets – Fair value of debts issued or assumed – Fair value of equity securities issued – Fair value of contingent consideration – Fair value on the date of acquisition of equity interests held prior to the date of acquisition – Others Total cost of combination 129,278,500.00 Less: share of fair value of identifiable net assets acquired 129,390,488.35 Goodwill/cost of combination fell short from share of fair value of identifiable net assets acquired –111,988.35
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026194 VIII. FINANCIAL REPORT (CONTINUED) VII. CHANGES IN SCOPE OF COMBINATION (Continued) (I) Business combinations involving enterprises not under common control (Continued) 3. Identifiable assets and liabilities of the acquiree on the date of acquisition Xinmi Company Fair value at the date of acquisition Carrying amount at the date of acquisition Assets: 473,669,914.88 522,523,821.81 Cash at bank and on hand 5,046,276.37 5,046,276.37 Accounts receivable 57,423,194.52 57,423,194.52 Contract assets 6,801,463.40 Advances to suppliers 422,125.00 422,125.00 Other receivables 61,102.52 61,102.52 Inventories 1,932,724.36 1,932,724.36 Other current assets 6,101,813.02 6,101,813.02 Fixed assets 1,306,446.00 979,706.58 Intangible assets 21,698.11 16,917.50 Other non-current assets 401,354,534.98 443,738,498.54 Liabilities: 342,116,182.33 342,116,182.33 Accounts payables 69,715,766.78 69,715,766.78 Employee benefits payable 582,457.08 582,457.08 Taxes payable 21.00 21.00 Other payables 16,586,816.65 16,586,816.65 Current portion of non-current liabilities 20,872,099.12 20,872,099.12 Long-term borrowings 226,304,576.22 226,304,576.22 Deferred tax liabilities 8,054,445.48 8,054,445.48 Net assets 131,553,732.55 180,407,639.48 Less: minority interests 13,155,373.26 18,040,763.95 Net assets acquired 118,398,359.29 162,366,875.53
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 195 VIII. FINANCIAL REPORT (CONTINUED) VIII. INTERESTS IN OTHER ENTITIES (I) Equity in subsidiaries 1. Composition of the Group Subsidiaries Company type Registered capital Major business location Place of registration Nature of business Shareholding (%) Method of acquisitionDirect Indirect Changzhou Dynagreen Environmental and Thermoelectric Co., Ltd. (Changzhou Company) Limited liability company 138.40 million Changzhou, Jiangsu Changzhou, Jiangsu Waste treatment and power generation 75.00 25.00 Business combination under common control Haining Dynagreen Renewable Energy Co., Ltd. (Haining Company) Limited liability company 100.00 million Haining, Zhejiang Haining, Zhejiang Waste treatment and power generation 100.00 Business combination not under common control Yongjia Dynagreen Renewable Energy Co., Ltd. (Yongjia Company) Limited liability company 100.00 million Yongjia, Zhejiang Yongjia, Zhejiang Waste treatment and power generation 100.00 Establishment Pingyang Dynagreen Renewable Energy Co., Ltd. (Pingyang Company) Limited liability company 100.00 million Pingyang, Zhejiang Pingyang, Zhejiang Waste treatment and power generation 100.00 Establishment Wuhan Company Limited liability company 279.4843 million Wuhan, Hubei Wuhan, Hubei Waste treatment and power generation 100.00 Business combination under common control Taizhou Dynagreen Renewable Energy Co., Ltd. (Taizhou Company) Limited liability company 180.00 million Taizhou, Jiangsu Taizhou, Jiangsu Waste treatment and power generation 100.00 Establishment Rushan Dynagreen Renewable Energy Co., Ltd. (Rushan Company) Limited liability company 100.88 million Rushan, Shandong Rushan, Shandong Waste treatment and power generation 100.00 Establishment Anshun Company Limited liability company 100.00 million Anshun, Guizhou Anshun, Guizhou Waste treatment and power generation 100.00 Establishment Jurong Dynagreen Renewable Energy Co., Ltd. (Jurong Company) Limited liability company 100.00 million Jurong, Jiangsu Jurong, Jiangsu Waste treatment and power generation 100.00 Establishment Zhangqiu Dynagreen Renewable Energy Co., Ltd. (Zhangqiu Company) Limited liability company 172.94 million Zhangqiu, Shandong Zhangqiu, Shandong Waste treatment and power generation 100.00 Establishment Dynagreen Investment Holding Company Limited (Hong Kong Dynagreen) Limited liability company HK$ 806.7499 million Hong Kong Hong Kong Investment holding 100.00 Business combination under common control Pingyao Company Limited liability company 100.00 million Pingyao, Shanxi Pingyao, Shanxi Waste treatment and power generation 100.00 Establishment Huizhou Company Limited liability company 220.00 million Huizhou, Guangdong Huizhou, Guangdong Waste treatment and power generation 100.00 Establishment
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026196 VIII. FINANCIAL REPORT (CONTINUED) Subsidiaries Company type Registered capital Major business location Place of registration Nature of business Shareholding (%) Method of acquisitionDirect Indirect Tianjin Dynagreen Renewable Energy Co., Ltd. (Jizhou Company) Limited liability company 120.00 million Jizhou, Tianjin Jizhou, Tianjin Waste treatment and power generation 60.00 40.00 Establishment Tianjin Dynagreen Environmental Energy Co., Ltd. (Ninghe Company) Limited liability company 150.00 million Ninghe, Tianjin Ninghe, Tianjin Waste treatment and power generation 100.00 Establishment Shenzhen Jingxiu Environmental Engineering Technology Limited Company (Shenzhen Jingxiu) Limited liability company 20.80 million Shenzhen, Guangdong Shenzhen, Guangdong Construction engineering 100.00 Business combination not under common control Beijing Dynagreen Environment Co., Ltd. (Tongzhou Company) Limited liability company 375.00 million Tongzhou, Beijing Tongzhou, Beijing Waste treatment and power generation 100.00 Establishment Hong’an Dynagreen Renewable Energy Co., Ltd. (Hong’an Company) Limited liability company 100.00 million Hong’an, Hubei Hong’an, Hubei Waste treatment and power generation 100.00 Establishment Shantou Dynagreen Renewable Energy Co., Ltd. (Shantou Company) Limited liability company 210.00 million Shantou, Guangdong Shantou, Guangdong Waste treatment and power generation 75.00 25.00 Establishment Bobai Company Limited liability company 100.00 million Bobai, Guangxi Bobai, Guangxi Waste treatment and power generation 75.00 25.00 Establishment Bengbu Dynagreen Renewable Energy Co., Ltd. (Bengbu Company) Limited liability company 166.00 million Bengbu, Anhui Bengbu, Anhui Waste treatment and power generation 100.00 Establishment Beijing Dynagreen Renewable Energy Co., Ltd. (Miyun Company) Limited liability company 120.00 million Miyun, Beijing Miyun, Beijing Waste treatment and power generation 100.00 Establishment Yichun Dynagreen Renewable Energy Co., Ltd. (Yichun Company) Limited liability company 165.00 million Yichun, Jiangxi Yichun, Jiangxi Waste treatment and power generation 60.00 Establishment Yongjia Phase II Company Limited liability company 100.00 million Yongjia, Zhejiang Yongjia, Zhejiang Waste treatment and power generation 51.00 49.00 Establishment VIII. INTERESTS IN OTHER ENTITIES (Continued) (I) Equity in subsidiaries (Continued) 1. Composition of the Group (Continued)
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 197 VIII. FINANCIAL REPORT (CONTINUED) Subsidiaries Company type Registered capital Major business location Place of registration Nature of business Shareholding (%) Method of acquisitionDirect Indirect Huludao Lvyi Company Limited liability company 100.00 million Huludao, Liaoning Huludao, Liaoning Hazardous waste treatment 80.00 Business combination not under common control Fengcheng Dynagreen Environmental Protection Co., Ltd. (Fengcheng Company) Limited liability company 135.375 million Fengcheng, Jiangxi Fengcheng, Jiangxi Waste treatment and power generation 51.00 Business combination not under common control Huizhou Dynagreen Renewable Energy Co., Ltd. (Huizhou Phase II Company) Limited liability company 450.00 million Huizhou, Guangdong Huizhou, Guangdong Waste treatment and power generation 100.00 Establishment Dengfeng Company Limited liability company 100.00 million Dengfeng, Henan Dengfeng, Henan Waste treatment and power generation 100.00 Establishment Haining Dynagreen Haiyun Environmental Protection Energy Co., Ltd. (Haining Expansion Company) Limited liability company 390.00 million Haining, Zhejiang Haining, Zhejiang Waste treatment and power generation 60.00 Establishment Shishou Company Limited liability company 100.00 million Shishou, Hubei Shishou, Hubei Waste treatment and power generation 100.00 Establishment Jinsha Company Limited liability company 160.00 million Bijie, Guizhou Bijie, Guizhou Garbage transfer, treatment and power generation 100.00 Business combination not under common control Pingyang Phase II Company Limited liability company 110.00 million Pingyang, Zhejiang Pingyang, Zhejiang Waste treatment and power generation 100.00 Establishment Jingxi Company Limited liability company 120.00 million Jingxi, Guangxi Jingxi, Guangxi Waste treatment and power generation 100.00 Establishment Enshi Company Limited liability company 200.00 million Enshi, Hubei Enshi, Hubei Waste treatment and power generation 100.00 Establishment Huludao Power Generation Company Limited liability company 122.6575 million Huludao, Liaoning Huludao, Liaoning Waste treatment and power generation 100.00 Establishment Laizhou Company Limited liability company 200.00 million Laizhou, Shandong Laizhou, Shandong Waste treatment and power generation 87.50 Business combination not under common control Shuozhou Company Limited liability company 195.00 million Shuozhou, Shanxi Shuozhou, Shanxi Waste treatment and power generation 100.00 Establishment Zhangqiu Phase II Company Limited liability company 255.00 million Jinan, Shandong Jinan, Shandong Waste treatment and power generation 100.00 Establishment VIII. INTERESTS IN OTHER ENTITIES (Continued) (I) Equity in subsidiaries (Continued) 1. Composition of the Group (Continued)
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026198 VIII. FINANCIAL REPORT (CONTINUED) Subsidiaries Company type Registered capital Major business location Place of registration Nature of business Shareholding (%) Method of acquisitionDirect Indirect Shantou Sludge Company Limited liability company 13.00 million Shantou, Guangdong Shantou, Guangdong Sludge treatment 100.00 Establishment Huizhou Three-in-One Company Limited liability company 63.00 million Huizhou, Guangdong Huizhou, Guangdong Collection, storage, transportation and disposals of kitchen waste (including gutter oil and swill oil), municipal sludge and excrement 80.00 Establishment Shantou Kitchen Waste Company Limited liability company 32.72 million Shantou, Guangdong Shantou, Guangdong Disposal of kitchen waste and municipal domestic waste operational services 80.00 Establishment Wuhan Donghu Company Limited liability company 10.00 million Wuhan, Hubei Wuhan, Hubei Garbage transfer 100.00 Establishment Guangdong Promising Environmental Protection Company Limited (Guangdong Promising Company) Limited liability company 584.50 million Dongguan, Guangdong Dongguan, Guangdong Environmental protection industry and new energy investment 100.00 Business combination not under common control Dongguan Company Limited liability company 10.00 million Dongguan, Guangdong Dongguan, Guangdong Garbage transfer 100.00 Business combination not under common control Guangyuan Company Limited liability company 178.00 million Guangyuan, Sichuan Guangyuan, Sichuan Waste treatment and power generation 100.00 Business combination not under common control Xinmi Company Limited liability company 130.00 million Xinmi, Henan Xinmi, Henan Waste treatment and power generation 90.00 Business combination not under common control Jiamusi Company Limited liability company 209.00 million Jiamusi, Heilongjiang Jiamusi, Heilongjiang Waste treatment and power generation 100.00 Business combination not under common control Sihui Company Limited liability company 225.00 million Sihui, Guangdong Sihui, Guangdong Waste treatment and power generation 100.00 Business combination not under common control Shulan Boneng Environmental Protection Company Limited (Shulan Company) Limited liability company 90.00 million Shulan, Jilin Shulan, Jilin Waste treatment and power generation 100.00 Business combination not under common control Zhangye Company Limited liability company 6.00 million Zhangye, Gansu Zhangye, Gansu Garbage transfer 100.00 Business combination not under common control VIII. INTERESTS IN OTHER ENTITIES (Continued) (I) Equity in subsidiaries (Continued) 1. Composition of the Group (Continued)
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 199 VIII. FINANCIAL REPORT (CONTINUED) VIII. INTERESTS IN OTHER ENTITIES (Continued) (I) Equity in subsidiaries (Continued) 2. Significant non-wholly-owned subsidiaries The Group has no significant non-wholly-owned subsidiaries IX. Government grants (I) Government grants recognized in the profit or loss during the period Type Amount for the period Amount for the previous period Government grants related to assets 3,651,477.80 3,596,112.50 Government grants related to income 75,495,768.50 45,291,512.55 Total 79,147,246.30 48,887,625.05 1. Liabilities involving government grants Liability Balance at the end of the previous year Increase in grants in the period Amount included in non-operating income in the period Amount transferred to other income in the period Costs offset in the period Other changes Closing balance Assets/ income-related Infrastructure subsidies for the Anshun WTE project 24,092,191.83 617,382.24 23,474,809.59 Assets-related Subsidies for ecological civilisation construction of Zhangqiu 11,810,838.56 274,670.64 11,536,167.92 Assets-related Specific fund for ecological civilisation construction of the Finance Bureau of Hong’an County 25,048,336.01 514,691.88 24,533,644.13 Assets-related Specific fund for ecological civilisation construction of Shishou 14,962,630.96 298,258.44 14,664,372.52 Assets-related Enshi special financial subsidies 16,727,329.20 355,900.62 16,371,428.58 Assets-related Laizhou ecological civilisation subsidies 15,180,723.04 316,265.04 14,864,458.00 Assets-related Shuozhou City Human Settlement Improvement Award Supplementary Fund 12,888,404.91 263,926.38 12,624,478.53 Assets-related Special fund for pollution control, energy conservation and carbon reduction of Zhangqiu 18,266,254.00 371,517.00 17,894,737.00 Assets-related Special fund for ecological civilization construction of Dengfeng 9,019,101.63 200,424.54 8,818,677.09 Assets-related Others 17,699,818.85 1,500,000.00 438,441.02 18,761,377.83 Assets-related Total 165,695,628.99 1,500,000.00 3,651,477.80 163,544,151.19
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026200 VIII. FINANCIAL REPORT (CONTINUED) X. RISK RELATING TO FINANCIAL INSTRUMENTS (I) Categories of risks arising from financial instruments The Group is confronted with various financial risks in its operation: credit risk, liquidity risk and market risk (including exchange rate risk, interest rate risk and other price risk.). The above financial risks and the risk management policies adopted by the Group to minimize such risks are listed as follows: The Group aims to seek the appropriate balance between the risks and benefits from its use of financial instruments and to mitigate the adverse effects that the risks of financial instruments have on the Group’s financial performance. Based on such objectives, the Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and the relevant internal control systems are reviewed regularly to reflect changes in market conditions and the Group’s operating activities. The internal audit department of the Group undertakes both regular and random inspection of the internal control system for its compliance with risk management policies. 1. Credit risk Credit risk refers to the risk that transaction counterparty fails to perform its obligations under the contract and causes financial losses to the Group. Credit risk mainly arises from cash at bank and on hand, notes receivables, accounts receivables, receivables financing, contract assets, other receivables, etc. As at the balance sheet date, the carrying amount of the Group’s financial assets represents their full credit risk exposure. The Group’s cash at bank and on hand is mainly cash at bank deposited at state-owned banks and other large and medium-sized listed banks with good reputation and a higher credit rating. The Company considers that there is no significant credit risk and will rarely cause significant losses due to default by the banks. In addition, the Group develops relevant policies to limit the credit risk exposure on bills receivable, trade receivables, receivables financing, contract assets and other receivables, etc. The Group assesses the credit quality of and sets respective credit periods on its customers by considering their financial position, the availability of guarantee from third parties, their credit record and other factors such as current market conditions. The Group regularly monitors the credit record of the customers. For customers with a poor credit history, the Group will issue written demand to them, or shorten or cancel the credit periods, so as to ensure the overall credit risk of the Group is limited to a controllable extent.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 201 VIII. FINANCIAL REPORT (CONTINUED) X. RISK RELATING TO FINANCIAL INSTRUMENTS (Continued) (I) Categories of risks arising from financial instruments (Continued) 2. Liquidity risk Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’s finance department in its headquarters. The Group monitors rolling forecasts of the Group’s shortterm and long-term liquidity requirements to ensure it has sufficient cash and securities that are readily convertible to cash to meet operational needs, while maintaining sufficient headroom on its undrawn committed borrowing facilities from major financial institutions so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities to meet the short-term and long-term liquidity requirements. The financial liabilities of the Group are analysed by their maturity date below at their undiscounted contractual cash flows: Closing balance Item Within 1 year 1 to 2 years 2–5 years Over 5 years Total Short-term borrowings 297,348,316.59 297,348,316.59 Accounts payables 525,067,490.33 525,067,490.33 Other payables 666,892,412.39 666,892,412.39 Long-term borrowings 1,043,580,731.37 1,445,577,864.68 3,194,025,380.77 2,456,245,027.17 8,139,429,003.99 Debentures payable 38,348,600.46 2,591,647,127.50 1,019,400,000.00 3,649,395,727.96 Lease liabilities 803,147.42 649,861.42 498,351.35 1,972,366.61 3,923,726.80 Long-term payables 26,593,834.15 32,811,071.14 77,309,602.45 249,358,575.66 386,073,083.40 Total 2,598,634,532.71 4,070,685,924.74 4,291,233,334.57 2,707,575,969.44 13,668,129,761.46 Balance at the end of the previous year Item Within 1 year 1 to 2 years 2–5 years Over 5 years Total Short-term borrowings 295,022,464.71 295,022,464.71 Accounts payables 522,488,062.31 522,488,062.31 Other payables 282,812,388.24 282,812,388.24 Long-term borrowings 1,048,319,671.98 1,958,197,954.39 3,253,611,562.46 2,654,282,203.52 8,914,411,392.35 Debentures payable 72,457,925.05 186,784,614.49 2,391,864,594.38 2,651,107,133.92 Lease liabilities 2,279,107.40 650,555.03 606,433.94 1,969,519.83 5,505,616.20 Long-term payables 26,373,334.15 26,373,334.15 79,120,002.45 262,016,414.31 393,883,085.06 Total 2,249,752,953.84 2,172,006,458.06 5,725,202,593.23 2,918,268,137.66 13,065,230,142.79
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026202 VIII. FINANCIAL REPORT (CONTINUED) X. RISK RELATING TO FINANCIAL INSTRUMENTS (Continued) (I) Categories of risks arising from financial instruments (Continued) 3. Market risk Market risk of financial instruments is the risk of fluctuation in the fair value of financial instruments or future cash flow arising from changes in market price. Market risk includes exchange rate risk, interest rate risk and other price risk. (1) Interest rate risk Interest rate risk is the risk of fluctuation in the fair value of financial instruments or future cash flow arising from changes in market interest rate. Interest-bearing financial instruments at fixed rates and at floating rates expose the Group to fair value interest risk and cash flow interest rate risk, respectively. The Group determines the appropriate weightings of the fixed and floating rate interest-bearing instruments based on the current market conditions and performs regular reviews and monitoring to achieve an appropriate mix of fixed and floating rate instruments. The Group will adopt interest rate swap instruments to hedge interest rate risk when necessary. As at 30 June 2026, if other variables remain constant and the borrowing rate calculated at floating interest rates increases or decreases by 50 basis points, the Group’s net profit will decrease or increase by approximately RMB27,666,000.00 (31 December 2025: approximately RMB30,290,000.00). (2) Exchange rate risk Exchange rate risk refers to the risk that the fair value or future cash flow of a financial instrument will fluctuate due to changes in foreign exchange rates. As at 30 June 2026, the Group had only a small number of financial instruments and foreign currencies measured at fair value, and there was no significant risk of fluctuations due to changes in foreign exchange rates.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 203 VIII. FINANCIAL REPORT (CONTINUED) XI. DISCLOSURE OF FAIR VALUE Inputs used in the fair value measurement are divided into three levels: Level 1 inputs refer to quoted prices (unadjusted) in active markets for identical assets or liabilities available on the measurement date. Level 2 inputs refer to inputs that are directly or indirectly observable for the relevant assets or liabilities other than Level 1 inputs. Level 3 inputs refer to unobservable inputs of the relevant assets or liabilities. Levels of the results of fair value measurement are decided by the lowest level of great significance in fair value measurement as a whole. (I) Fair value of assets and liabilities measured at fair value as at the end of the period As at 30 June 2026 and 31 December 2025, the Group had no assets and liabilities measured at fair value except for receivables financing. (II) Assets and liabilities not measured at fair value but for which the fair value is disclosed As at 30 June 2026 and 31 December 2025, financial assets and financial liabilities measured at amortised cost mainly include cash at bank and on hand, notes receivables, accounts receivables, other receivables, contract assets (including contract assets included in other non-current assets), long-term receivables, short-term borrowings, payables, lease liabilities, long-term borrowings, debentures payable and long-term payables. Their carrying amount is a reasonable approximation of their fair value.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026204 VIII. FINANCIAL REPORT (CONTINUED) XII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (I) Information on the parent company of the Company Name of the parent company Type Legal representative Place of registration Nature of Business Registered Capital Percentage of shareholding in the Company held by the parent company (%) Percentage of voting rights in the Company held by the parent company (%) BSAM Limited liability company Zhao Jifeng Beijing Investment management 30,000.00 million 31.79 31.79 Other explanations: in addition to the above direct shareholding, BSAM also holds 100% equity interest in Beijing State-Owned Assets Management (Hong Kong) Company Limited (“BSAM (HK)”), which holds 1.74% of the shares of the Company. BSAM also holds 100% equity interest in Beijing Industrial Development Investment Management Co., Ltd. (“Beijing Industrial Investment”), which holds 9.74% of the shares of the Company. BSAM is the ultimate controlling party of the Company. (II) Information on the subsidiaries of the Company Please refer to Note “VIII. Interests in other entities” for details of the information on the subsidiaries of the Company. (III) Information on other related parties Name of other related parties Relationship between other related party and the Company Shenzhen Crystal Digital Technology Co., Ltd. (“Shenzhen CDT”) A former subsidiary of the Company’s ultimate controlling party Beijing Software and Information Service Exchange Co., Ltd. (“Beijing Software and Information Service”) Shareholder and a subsidiary of the Company’s ultimate controlling party Beijing Securities Co., Ltd. (“Beijing Securities”) Shareholder and a subsidiary of the Company’s ultimate controlling party Bank of Beijing Co., Ltd. (“Bank of Beijing”) An associated company of the Company’s ultimate controlling party Beijing Rural Commercial Bank Co., Ltd. (“Beijing Rural Commercial Bank”) An associated company of the Company’s ultimate controlling party Capinfo Cloud Technology Co., Ltd. (“Capinfo Cloud Technology”) Shareholder and a subsidiary of the Company’s ultimate controlling party
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 205 VIII. FINANCIAL REPORT (CONTINUED) XII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (Continued) (IV) Related party transactions 1. Related party transactions for purchase and sales of goods/provision and receipt of services Purchase of goods/receipt of services Name of related parties Amount for the period Amount for the previous period Shenzhen CDT 25,000.00 Beijing Software and Information Service 74,870.00 Beijing Securities 250,000.00 Bank of Beijing 214,000.00 Capinfo Cloud Technology 92,250.00 Others 48,890.00 49,331.00 Total 680,010.00 74,331.00 2. Borrowings from related parties Interest expenses Borrower Amount for the period Amount for the previous period Bank of Beijing 4,306,076.12 7,210,969.46 Beijing Rural Commercial Bank 753,906.54 2,620,017.80 Total 5,059,982.66 9,830,987.26 3. Remuneration of key management Item Amount for the period Amount for the previous period Remuneration of key management 3,917,340.78 3,968,501.24 4. Other related party transactions As at 30 June 2026, the deposits with the Bank of Beijing amounted to RMB22,601,434.89 (2025: RMB68,933,068.81) and the deposits with the Rural Commercial Bank of Beijing amounted to RMB289,872.00 (2025: RMB408,287.37); the interests income from the deposits with the Bank of Beijing amounted to RMB252,995.19 (January-June 2025: RMB25,048.27) and the interests income from the deposits with the Rural Commercial Bank of Beijing amounted to RMB2,010.56 (January- June 2025: RMB6,034.71); handling fees for the transactions with the Bank of Beijing amounted to RMB830.00 (January-June 2025: RMB290.00) and handling fees for the transactions with the Rural Commercial Bank of Beijing amounted to RMB339.69 (January-June 2025: RMB543.50)
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026206 VIII. FINANCIAL REPORT (CONTINUED) XII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (Continued) (V) Outstanding items such as receivables from and payables to related parties 1. Receivables from related parties Item Related party Book balance at the end of the period Book balance at the end of the previous year Prepayments Other 59,979.96 2. Payables to related parties Item Related party Book balance at the end of the period Book balance at the end of the previous year Accounts payables Beijing Software and Information 38,000.00 Other payables Beijing Software and Information 16,100.00 3. Long-term borrowings Item Related party Book balance at the end of the period Book balance at the end of the previous year Long-term borrowings Bank of Beijing 358,224,227.79 395,330,366.66 Beijing Rural Commercial Bank 49,155,713.28 56,655,713.28 Total 407,379,941.07 451,986,079.94
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 207 VIII. FINANCIAL REPORT (CONTINUED) XII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (Continued) (VI) Share-based payment (I) Summary of share-based payment Pursuant to the resolutions of the 2025 third extraordinary general meeting of Shareholders of the Company, the resolutions of the 17th meeting of the fifth session of the Board, and the payment of incentive participants, the actual number of incentive participants under the initial grant of the incentive scheme is 188, the number of of restricted shares granted under the initial grant is 35.77 million shares at the initial grant price of RMB2.95 per share, and the grant date is 2 December 2025; pursuant to the Resolution on Grant of Reserved Restricted Shares (First Batch) to Incentive Participants, 1.36 million restricted shares are granted to 3 incentive participants at the grant price of RMB3.56 per share, and the grant date is 2 December 2025. The Company completed the registration with the Shanghai Branch of China Securities Depository and Clearing Corporation Limited on 23 December 2025. The lock-up period of the restricted shares granted under the incentive scheme shall be 24 months, 36 months and 48 months respectively from the date of registration of the equity under the grant. Upon the expiry of the lock-up period, the Company will process the unlocking of the restricted shares for the incentive participants that meet the unlocking conditions. The restricted shares held by any incentive participant who fails to meet the unlocking conditions shall be repurchased and cancelled by the Company. (II) Equity-settled share-based payment Method for determining the fair value of equity instruments on the grant date: Based on the market price of the tradable A shares on the grant date Method for determining the best estimate of the number of exercisable equity instruments: The Company’s management makes the best estimate after considering the impact of relevant factors such as the latest changes in the number of exercisable employees and the degree of achievement of performance targets Reasons for significant differences between current period estimates and prior period estimates: Nil Cumulative amount of equity-settled share-based payments included in capital reserve: RMB29,730,863.22 (III) Cash-settled share-based payment Nil (IV) Share-based payment expenses Amount for the period Grantees Equity-settled share-based payment Cash-settled share-based payment Total Research staff 1,306,236.00 1,306,236.00 Administrative staff 22,113,996.00 22,113,996.00 Production, operation and other staff 2,944,404.00 2,944,404.00 Total 26,364,636.00 26,364,636.00 (V) Modifications and termination of share-based payment Nil
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026208 VIII. FINANCIAL REPORT (CONTINUED) XIII. COMMITMENTS AND CONTINGENCIES (I) Significant commitments 1. Significant commitments as at the balance sheet date As at the balance sheet date, the Company had no significant commitments (II) Contingencies 1. Significant contingencies as at the balance sheet date As at the balance sheet date, the Company had no significant contingencies. XIV. POST BALANCE SHEET EVENTS According to the resolution of the Board on 28 August 2026, the Board proposed that the Company distribute a cash dividend of RMB0.11 for every share to all shareholders based on the aggregate share capital on the share-based equity registration date. Calculated based on the approximately 1,430,584,800 issued shares of the Company as at 30 June 2026, it is proposed to distribute cash dividends of approximately RMB157.3643 million. The abovementioned proposal is subject to approval at the Shareholders’ general meeting and is not recognised as liabilities in the financial statements. XV. CAPITAL MANAGEMENT The main objectives of the Group capital management are: To ensure the Group’s ability to continue as a going concern so as to continuously provide returns to shareholders and other stakeholders; In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, refund capital to shareholders, issue new shares or sell assets to reduce debts; The Group’s total capital is calculated as ‘shareholders’ equity’ as shown in the consolidated balance sheet. The Group is not subject to external mandatory capital requirements, and monitors capital on the basis of gearing ratio. As at 30 June 2026 and 31 December 2025, the gearing ratios of the Group are shown as follows: Closing balance Balance at the end of the previous year Gearing ratio 60.25% 60.45%
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 209 VIII. FINANCIAL REPORT (CONTINUED) XVI. NOTES TO MAJOR ITEMS OF FINANCIAL STATEMENTS OF THE COMPANY (I) Accounts receivables 1. Accounts receivables disclosed by aging based on their recording dates Aging Closing balance Balance at the end of the previous year Within 1 year 29,790,621.48 27,004,421.64 1 to 2 years 37,994,045.02 35,570,954.80 2 to 3 years 4,870,004.12 Over 3 years 165,374,250.00 189,374,250.00 Sub-total 238,028,920.62 251,949,626.44 Less: Provision for bad debts Total 238,028,920.62 251,949,626.44 2. Accounts receivables disclosed according to the method of provision for bad debts Closing balance Balance at the end of the previous year Book balance Allowance for bad debts Carrying amount Book balance Allowance for bad debts Carrying amountCategory Amount Proportion (%) Amount Proportion ratio (%) Amount Proportion (%) Amount Proportion ratio (%) Provision for bad debts on an individual basis Provision for bad debts on credit risk characteristic group basis 238,028,920.62 100.00 238,028,920.62 251,949,626.44 100.00 251,949,626.44 Including: Total outsourcing service fees and royalties receivable 238,028,920.62 100.00 238,028,920.62 251,949,626.44 100.00 251,949,626.44 Total 238,028,920.62 100.00 238,028,920.62 251,949,626.44 100.00 251,949,626.44
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026210 VIII. FINANCIAL REPORT (CONTINUED) XVI. NOTES TO MAJOR ITEMS OF FINANCIAL STATEMENTS OF THE COMPANY (Continued) (I) Accounts receivables (Continued) 3. Five largest accounts receivables and contract assets aggregated by debtors Name Closing balance of accounts receivables Closing balance of contract assets Closing balance of accounts receivables and contract assets Percentage of total balance of accounts receivables and contract assets (%) Closing balance of provision for bad debts of accounts receivables and provision for impairment of contract assets Huizhou Phase II Company 98,392,500.00 98,392,500.00 41.34 Tongzhou Company 49,390,573.78 49,390,573.78 20.75 Dengfeng Company 34,960,000.00 34,960,000.00 14.69 Jinsha Company 30,821,750.00 30,821,750.00 12.95 Fengcheng Company 10,000,000.00 10,000,000.00 4.20 Total 223,564,823.78 223,564,823.78 93.92 (II) Other receivables Item Closing balance Balance at the end of the previous year Interests receivable 105,488,771.39 90,139,623.10 Dividends receivable 2,370,550,000.00 1,887,850,000.00 Other receivables 1,074,751,800.71 1,083,882,237.81 Total 3,550,790,572.10 3,061,871,860.91
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 211 VIII. FINANCIAL REPORT (CONTINUED) XVI. NOTES TO MAJOR ITEMS OF FINANCIAL STATEMENTS OF THE COMPANY (Continued) (II) Other receivables (Continued) 1. Interests receivable (1) Classification of interests receivable Item Closing balance Balance at the end of the previous year Interests on borrowings receivable from subsidiaries 105,488,771.39 90,139,623.10 Total 105,488,771.39 90,139,623.10 2. Dividends receivable (1) Details of dividends receivable Item Closing balance Balance at the end of the previous year Dividends receivable aged within 1 year 612,100,000.00 947,300,000.00 Dividends receivable aged over 1 year 1,758,450,000.00 940,550,000.00 Total 2,370,550,000.00 1,887,850,000.00 3. Other receivables (1) Disclosed by aging Aging Closing balance Balance at the end of the previous year Within 1 year 605,306,590.72 320,795,248.58 1 to 2 years 58,627,071.09 125,349,296.76 2 to 3 years 136,863,877.59 167,284,423.87 Over 3 years 352,920,663.28 479,302,003.62 Sub-total 1,153,718,202.68 1,092,730,972.83 Less: Provision for bad debts 78,966,401.97 8,848,735.02 Total 1,074,751,800.71 1,083,882,237.81
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026212 VIII. FINANCIAL REPORT (CONTINUED) XVI. NOTES TO MAJOR ITEMS OF FINANCIAL STATEMENTS OF THE COMPANY (Continued) (II) Other receivables (Continued) 3. Other receivables (Continued) (2) Disclosed according to the method of provision for bad debts Closing balance Balance at the end of the previous year Book balance Allowance for bad debts Carrying amount Book balance Allowance for bad debts Carrying amountCategory Amount Proportion (%) Amount Proportion ratio (%) Amount Proportion (%) Amount Proportion ratio (%) Provision for bad debts on an individual basis 316,766,784.23 27.46 78,641,676.53 24.83 238,125,107.70 8,641,676.53 0.79 8,641,676.53 100.00 Provision for bad debts on credit risk characteristic group basis 836,951,418.45 72.54 324,725.44 0.04 836,626,693.01 1,084,089,296.30 99.21 207,058.49 0.02 1,083,882,237.81 Total 1,153,718,202.68 100.00 78,966,401.97 6.84 1,074,751,800.71 1,092,730,972.83 100.00 8,848,735.02 0.81 1,083,882,237.81 Significant other receivables with provision for bad debts on an individual basis: Closing balance Balance at the end of the previous year Name Book balance Allowance for bad debts Proportion ratio (%) Provision basis Book balance Allowance for bad debts Huludao Lvyi Company 308,125,107.70 70,000,000.00 22.72 Had risk on collection Dynagreen Environment Investment Limited 5,160,600.00 5,160,600.00 100.00 Had long ageing and risk on collection 5,160,600.00 5,160,600.00 Guizhou Xijie Environmental Health Management Co., Ltd. (൮ψГᆎᐑྤሊ͛၍ଣ ʮ̡) 2,668,488.18 2,668,488.18 100.00 Had long ageing and risk on collection 2,668,488.18 2,668,488.18 Total 315,954,195.88 77,829,088.18 24.63 7,829,088.18 7,829,088.18
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 213 VIII. FINANCIAL REPORT (CONTINUED) XVI. NOTES TO MAJOR ITEMS OF FINANCIAL STATEMENTS OF THE COMPANY (Continued) (II) Other receivables (Continued) 3. Other receivables (Continued) (2) Disclosed according to the method of provision for bad debts (Continued) Provision for bad debts on credit risk characteristic group basis: Items for which allowance is made on group basis: Closing balance Name Other receivables Allowance for bad debts Proportion ratio (%) Receivable from related parties 829,132,575.28 Others 7,818,843.17 324,725.44 4.15 Total 836,951,418.45 324,725.44 0.04 (3) Provision for bad debts Stage I Stage II Stage III TotalAllowance for bad debts ECL for the following 12 months Lifetime ECL (without credit impairment) Lifetime ECL (with credit impairment) Balance at the end of the previous year 207,058.49 8,641,676.53 8,848,735.02 Balance at the end of last year during the period – Transferred to Stage II – Transferred to Stage III – Reversed to Stage II – Reversed to Stage I Made in the period 117,666.95 117,666.95 Reversed in the period Charged off in the period Written off in the period Other changes (Note) 70,000,000.00 70,000,000.00 Closing balance 324,725.44 78,641,676.53 78,966,401.97 Note: The borrowing originally granted by the parent company to Huludao Lvyi Company with a term of more than one year was presented under “long-term receivables” and provision was made for bad debts in an amount of RMB70.00 million. In the period, the term of the borrowing was adjusted to within one year. Therefore, it was reclassified to “other receivables”, with the corresponding provision for bad debts transferred accordingly.
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026214 VIII. FINANCIAL REPORT (CONTINUED) XVI. NOTES TO MAJOR ITEMS OF FINANCIAL STATEMENTS OF THE COMPANY (Continued) (II) Other receivables (Continued) 3. Other receivables (Continued) (4) Allowances for bad debts made, reversed or recovered for the period Category Balance at the end of the previous year Changes in the current period Closing balanceProvision Recovered or reversed Charged off or written off Other changes Provision on an individual basis 8,641,676.53 70,000,000.00 78,641,676.53 Others 207,058.49 117,666.95 324,725.44 Total 8,848,735.02 117,666.95 70,000,000.00 78,966,401.97 (5) Receivables by nature Nature Book balance at the end of the period Book balance at the end of the previous year Current accounts within the Group 1,137,257,682.98 1,077,357,880.88 Receivable current accounts of former shareholders 5,973,188.35 5,973,188.35 Others 10,487,331.35 9,399,903.60 Total 1,153,718,202.68 1,092,730,972.83
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 215 VIII. FINANCIAL REPORT (CONTINUED) XVI. NOTES TO MAJOR ITEMS OF FINANCIAL STATEMENTS OF THE COMPANY (Continued) (II) Other receivables (Continued) 3. Other receivables (Continued) (6) Five largest other receivables aggregated by debtors Name Nature Closing balance Aging Percentage of total closing balance of other receivables (%) Closing balance of allowance for bad debts Huludao Power Generation Company Current accounts of subsidiaries within the Group 380,560,440.70 Within 1 year, 1 to 2 years, 2–3 years, 3–4 years 32.99 Huludao Lvyi Company Current accounts of subsidiaries within the Group 308,125,107.70 Within 1 year, 1 to 2 years, 2–3 years, 3–4 years, 4–5 years 26.71 70,000,000.00 Ninghe Company Current accounts of subsidiaries within the Group 277,643,840.40 Within 1 year, 1 to 2 years, 2–3 years, 3–4 years, 4–5 years, Over 5 years 24.07 Dengfeng Company Current accounts of subsidiaries within the Group 115,043,938.95 Within 1 year, 1 to 2 years, 2–3 years, 3–4 years 9.97 Pingyang Phase II Company Current accounts of subsidiaries within the Group 11,975,326.68 Within 1 year, 1 to 2 years, 2–3 years, 3–4 years 1.04 Total 1,093,348,654.43 94.78 70,000,000.00 (III) Long-term equity investments Closing balance Balance at the end of the previous year Item Book balance Provision for impairment Carrying amount Book balance Provision for impairment Carrying amount Investment in subsidiaries 6,752,687,576.17 156,139,358.86 6,596,548,217.31 6,763,846,518.17 326,139,358.86 6,437,707,159.31 Investment in associates and joint ventures 7,637,882.39 7,637,882.39 Total 6,760,325,458.56 156,139,358.86 6,604,186,099.70 6,763,846,518.17 326,139,358.86 6,437,707,159.31
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026216 VIII. FINANCIAL REPORT (CONTINUED) XVI. NOTES TO MAJOR ITEMS OF FINANCIAL STATEMENTS OF THE COMPANY (Continued) (III) Long-term equity investments (Continued) 1. Investment in subsidiaries Investee Balance at the end of the previous year Provision for impairment Balance at the end of the previous year Movements in the period Closing balance Balance of provision for impairment at the end of the period Increase in the period Decrease in the period Provision for impairment in the period Others Changzhou Company 142,255,621.22 651,924.00 142,907,545.22 Taizhou Company 180,023,880.00 143,280.00 180,167,160.00 Haining Company 86,000,000.00 86,000,000.00 Yongjia Company 100,060,894.00 472,824.00 100,533,718.00 Pingyang Company 100,033,432.00 200,592.00 100,234,024.00 Wuhan Company 278,022,376.40 888,336.00 278,910,712.40 Rushan Company 100,913,432.00 200,592.00 101,114,024.00 Anshun Company 102,132,433.98 293,724.00 102,426,157.98 Zhangqiu Company 173,024,774.00 508,644.00 173,533,418.00 Jurong Company 100,075,706.87 293,724.00 100,369,430.87 Huizhou Company 220,987,591.23 200,592.00 221,188,183.23 Pingyao Company 20,017,204.55 20,017,204.55 Jizhou Company 72,078,804.00 365,364.00 72,444,168.00 Hong Kong Dynagreen 741,830,077.55 942,066.00 742,772,143.55 Shenzhen Jingxiu 27,047,295.00 6,529,123.47 27,047,295.00 6,529,123.47 Ninghe Company 149,695,009.39 149,610,235.39 508,644.00 150,203,653.39 149,610,235.39 Hong’an Company 100,086,464.08 343,872.00 100,430,336.08 Tongzhou Company 375,088,198.59 128,952.00 375,217,150.59 Shantou Company 157,578,804.00 472,824.00 158,051,628.00 Bobai Company 75,057,312.00 343,872.00 75,401,184.00 Bengbu Company 166,084,774.00 573,120.00 166,657,894.00 Miyun Company 120,057,312.00 343,872.00 120,401,184.00 Yongjia Phase II Company 51,005,970.00 35,820.00 51,041,790.00
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 217 VIII. FINANCIAL REPORT (CONTINUED) Investee Balance at the end of the previous year Provision for impairment Balance at the end of the previous year Movements in the period Closing balance Balance of provision for impairment at the end of the period Increase in the period Decrease in the period Provision for impairment in the period Others Huludao Lvyi Company 170,005,970.00 170,000,000.00 170,005,970.00 –170,000,000.00 Huizhou Phase II Company 450,069,252.00 367,752.00 450,437,004.00 Dengfeng Company 100,035,820.00 343,872.00 100,379,692.00 Shishou Company 100,057,312.00 347,454.00 100,404,766.00 Haining Expansion Company 234,114,624.00 687,744.00 234,802,368.00 Guangdong Promising Company 610,113,430.00 358,200.00 610,471,630.00 Jinsha Company 162,423,682.00 457,302.00 162,880,984.00 Pingyang Phase II Company 110,102,684.00 508,644.00 110,611,328.00 Jingxi Company 120,057,312.00 343,872.00 120,401,184.00 Enshi Company 200,054,018.00 324,108.00 200,378,126.00 Guangyuan Company 150,450,374.00 15,431,034.00 165,881,408.00 Zhaoqing Company 225,949,820.18 472,824.00 226,422,644.18 Huludao Power Generation Company 123,153,404.00 526,554.00 123,679,958.00 Shuozhou Company 195,081,282.00 379,692.00 195,460,974.00 Shantou Sludge Company 13,035,820.00 214,920.00 13,250,740.00 Huizhou Three-in-One Company 50,421,492.00 128,952.00 50,550,444.00 Fengcheng Company 97,156,885.13 601,776.00 97,758,661.13 Shantou Kitchen Waste Company 2,405,970.00 17,910.00 2,423,880.00 Wuhan Donghu Company 10,000,000.00 10,000,000.00 Xinmi Company 129,421,780.00 129,421,780.00 Total 6,763,846,518.17 326,139,358.86 158,847,028.00 170,005,970.00 –170,000,000.00 6,752,687,576.17 156,139,358.86 XVI. NOTES TO MAJOR ITEMS OF FINANCIAL STATEMENTS OF THE COMPANY (Continued) (III) Long-term equity investments (Continued) 1. Investment in subsidiaries (Continued)
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026218 VIII. FINANCIAL REPORT (CONTINUED) XVI. NOTES TO MAJOR ITEMS OF FINANCIAL STATEMENTS OF THE COMPANY (Continued) (III) Long-term equity investments (Continued) 2. Investment in associates and joint ventures Movements in the period Investee Balance at the end of the previous year (Carrying amount) Provision for impairment Balance at the end of the previous year Increase in investment Decrease in investment Gain or loss of investment recognized using equity approach Adjustments to other comprehensive income Changes in other equity Declaration of payment of cash dividend or profit Provision for impairment Others Closing balance (Carrying amount) Balance of provision for impairment at the end of the period 1. Joint venture Dynagreen Alliance Limited 7,865,370.00 –182,642.57 –44,845.04 7,637,882.39 Total 7,865,370.00 –182,642.57 –44,845.04 7,637,882.39 3. Impairment test of long-term equity investments Item Balance at the end of the previous year Increase in the period Decrease in the period Closing balance at the end of the year Ninghe Company 149,610,235.39 149,610,235.39 Shenzhen Jingxiu 6,529,123.47 6,529,123.47 Huludao Lvyi Company 170,000,000.00 170,000,000.00 Total 326,139,358.86 170,000,000.00 156,139,358.86
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026 219 VIII. FINANCIAL REPORT (CONTINUED) XVI. NOTES TO MAJOR ITEMS OF FINANCIAL STATEMENTS OF THE COMPANY (Continued) (IV) Revenue and operating costs 1. Revenue and operating costs Amount for the period Amount for the previous period Item Revenue Cost Revenue Cost Principal businesses 48,379,808.24 6,176,892.22 64,565,558.09 4,417,844.73 Other businesses 610,169.49 610,169.49 Total 48,989,977.73 6,176,892.22 65,175,727.58 4,417,844.73 (V) Investment income Item Amount for the period Amount for the previous period Investment income from long-term equity investments under cost method 656,100,000.00 1,117,700,000.00 Investment income from long-term equity investments under equity method –182,642.57 Investment income from disposals of subsidiaries 1,478.72 1,689,427.04 Interest income 20,493,327.66 25,421,552.52 Total 676,412,163.81 1,144,810,979.56
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Dynagreen Environmental Protection Group Co., Ltd. Interim Report 2026220 VIII. FINANCIAL REPORT (CONTINUED) XVII. SUPPLEMENTAL INFORMATION (I) Breakdown of non-recurring gains and losses items for the current period Item Amount Note Gains and losses from disposal of non-current assets, including the written-off portion of the asset impairment provision –40,794.09 Government grants recognised through profit or loss, except for government grants which are closely related to the Company’s normal operation, comply with the provisions of national policies, are enjoyed in accordance with the defined standards, and have a continuous impact on the profit or loss of the Company 714,723.98 Gain from the difference between the cost of investment on the subsidiaries, assoicated companies and joint ventures and the shared fair value of identifiable net assets of the investee 111,988.35 Other non-operating income and expenses apart from the aforesaid items 361,714.90 Other gain or loss items meeting the definition of non-recurring gains or losses 348,858.89 Sub-total 1,496,492.03 Effect of income tax –165,965.07 Effect of minority interests (after tax) 46,681.48 Total 1,377,208.44 (II) Return on net assets and earnings per share Weighted average return on net assets (%) Earnings per share (RMB) Profit for the Reporting Period Basic earnings per share Diluted earnings per share Net profit attributable to holders of ordinary shares of the Company 5.46 0.33 0.30 Net profit attributable to holders of ordinary shares of the Company after deducting non-recurring profit or loss items 5.44 0.33 0.30 Dynagreen Environmental Protection Group Co., Ltd. (Company Seal) 28 August 2026
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By order of the Board Dynagreen Environmental Protection Group Co., Ltd.* Cheng Suning Chairman Shenzhen, the PRC 28 August 2026 As of the date of this announcement, the executive director is Mr. Cheng Suning; the non- executive directors are Mr. Hu Tianhe, Mr. Yan Chunxu and Mr. Hu Yong; the independent non-executive directors are Ms. Ouyang Jiejiao, Mr. Zheng Zhiming and Mr. Zhou Beihai; and the employee director is Mr. Hu Shengyong.