Earnings release
Page 1
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. DONGJIANG ENVIRONMENTAL COMPANY LIMITED* ʮ̡ (a joint stock limited company incorporated in the People’s Republic of China) (Stock code: 00895) UNAUDITED INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2026 The board (the “ Board ”) of directors (the “ Directors ”) of Dongjiang Environmental Company Limited* (the “ Company ”) hereby announces the unaudited interim results of the Company and its subsidiaries for the six months ended 30 June 2026. This interim results announcement, containing the full text of the 2026 interim report of the Company, complies with the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (“ HKEx”) in relation to information to accompany preliminary announcements of interim results. This announcement will be published on the websites of the Company (www.dongjiang.com.cn) and HKEx (www.hkexnews.hk), respectively. The 2026 interim report of the Company will be disseminated to the holders of H shares of the Company and will be also published on the websites of HKEx (www.hkexnews.hk) and the Company (www.dongjiang.com.cn) before 30 September 2026, respectively. By order of the Board Dongjiang Environmental Company Limited* Wang Bi’an Chairman Shenzhen, the PRC 27 August 2026 As at the date of this announcement, the Board comprises three executive Directors, being Mr. Wang Bi’an, Mr. Li Xiangli and Mr. Zhu Lintao; two non-executive Directors, being Mr. Liu Xiaoxuan and Ms. Hu Ruifang; and three independent non-executive Directors, being Mr. Lee Kwok Tung Louis, Mr. Li Jinhui and Ms. Xiang Ling. * For identification purpose only
Page 2
– 2 – 1INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED CORPORATE INFORMATION EXECUTIVE DIRECTORS WANG Bi’an (Chairman) LI Xiangli (Chief executive officer) ZHU Lintao (Employee Director) NON-EXECUTIVE DIRECTORS WANG Shi (resigned on 10 March 2026) LIU Xiaoxuan JIA Guorong (resigned on 20 April 2026) HU Ruifang (appointed on 29 June 2026) INDEPENDENT NON-EXECUTIVE DIRECTORS LEE Kwok Tung Louis LI Jinhui XIANG Ling AUTHORISED REPRESENTATIVES WANG Bi’an WU Qi COMPANY SECRETARY WU Qi AUDIT AND RISK MANAGEMENT COMMITTEE LEE Kwok Tung Louis (Chairman) LI Jinhui WANG Shi (resigned on 10 March 2026) XIANG Ling (appointed on 10 March 2026) REMUNERATION AND APPRAISAL COMMITTEE XIANG Ling (Chairman) LEE Kwok Tung Louis ZHU Lintao NOMINATION COMMITTEE LI Jinhui (Chairman) WANG Bi’an XIANG Ling STRATEGIC DEVELOPMENT COMMITTEE WANG Bi’an (Chairman) LI Jinhui WANG Shi (resigned on 10 March 2026)
Page 3
– 3 – 2 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 STOCK CODES A shares listed on Shenzhen Stock Exchange: 002672 H shares listed on The Stock Exchange of Hong Kong Limited: 00895 AUTHORISED REPRESENTATIVE TO ACCEPT SERVICE OF PROCESSES AND NOTICES Jeffrey Mak Law Firm AUDITORS WUYIGE Certified Public Accountants LLP LEGAL ADVISERS Jeffrey Mak Law Firm (as to Hong Kong law) Beijing Kangda (Guangzhou) Law Firm (as to PRC law) PRINCIPAL BANKER China Merchants Bank HONG KONG H SHARE REGISTRAR Tricor Investor Services Limited 17/F, Far East Finance Centre 16 Harcourt Road Hong Kong REGISTERED OFFICE 1st Floor, 3rd Floor, North of 8th Floor, 9th – 12th Floors Dongjiang Environmental Building No. 9 Langshan Road North Zone of Hi-tech Industrial Park Nanshan District, Shenzhen The People’s Republic of China COMPANY’S WEBSITE www.dongjiang.com.cn PRINCIPAL PLACE OF BUSINESS IN HONG KONG Suite 4201, 42/F Tower 1, Lippo Centre 89 Queensway, Admiralty Hong Kong
Page 4
– 4 – 3INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED DEFINITIONS In this report, unless the context otherwise requires, the following expressions shall have the following meanings: “A Share(s)” A share(s) in the share capital of the Company, with a par value of RMB1.00 each, which are subscribed for and traded in RMB on the Shenzhen Stock Exchange “Articles” the articles of association of the Company currently in force “Audit and Risk Management Committee” the audit and risk management committee of the Board “Baowu Environment” Baowu Group Environmental Resources Technology Co., Ltd.* (ʮ̡ ), a company incorporated in the PRC with limited liability, and a substantial shareholder of the Company as at the date of this report, which is controlled by China Baowu Steel Group Co., Ltd.,* (ʮ̡) “Board” the board of Directors “CG Code” the Corporate Governance Code as set out in Appendix C1 to the Listing Rules “Company” or “Dongjiang Environmental” Dongjiang Environmental Company Limited* (ٰڭ ʮ̡), a joint stock limited company incorporated in the PRC, whose H Shares and A Shares are listed on the Stock Exchange and the Shenzhen Stock Exchange, respectively “CSRC” China Securities Regulatory Commission “Director(s)” the director(s) of the Company
Page 5
– 5 – 4 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 “Elephant Logistics“ Guangdong Elephant Logistics Technology Co., Ltd.* (ʮ̡), a company established in the PRC with limited liability and a non-wholly-owned subsidiary of the Company “first half of 2026” or “Reporting Period” or “the First Half” the six months ended 30 June 2026 “Group” the Company and its subsidiaries “Guangdong Rising Holdings Group” Guangdong Rising Holdings Group Co., Ltd.* (؇ ʮ̡), a company incorporated in the PRC with limited liability, and a substantial shareholder of the Company as at the date of this report; which is ultimately controlled by the State-owned Assets Supervision and Administration Commission of the People’s Government of Guangdong Province* (؇ ึ) “H Share(s)” share(s) in the share capital of the Company, with a par value of RMB1.00 each, which are listed on the Stock Exchange, subscribed for and traded in HK$ “HK$” Hong Kong dollars, the lawful currency of Hong Kong “Hong Kong” the Hong Kong Special Administrative Region of the PRC “Listing Rules” the Rules Governing the Listing of Securities on the Stock Exchange “Model Code” the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules “PRC” the People’s Republic of China
Page 6
– 6 – 5INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED “RMB” Renminbi, the lawful currency of the PRC “SFO” the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “Shareholder(s)” holder(s) of Share(s) “Share(s)” A Share(s) and H Share(s) “Soho High Hope Group” Jiangsu Soho High Hope Group Co., Ltd.,* ( ϪᘽᘽႴ ʮ̡), formerly known as Jiangsu High Hope International Group Co., Ltd.,* ( Ϫᘽිᒿ ʮ̡), a joint stock limited company established in the PRC, which is listed on the Shanghai Stock Exchange with the stock code of 600981 and is a substantial shareholder of the Company as at the date of this report and is controlled by Jiangsu SOHO Holdings Group Co., Ltd.,* (ʮ̡) “Stock Exchange” The Stock Exchange of Hong Kong Limited “substantial shareholder” has the meaning ascribed to it under the Listing Rules “%” per cent In this interim report, the English names of the PRC entities are translations of their Chinese names and included herein for identification purposes only. In the event of any inconsistency between the Chinese and English names, the Chinese names shall prevail.
Page 7
– 7 – 6 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 The Board hereby announces the unaudited interim results of the Group for the six months ended 30 June 2026, together with the comparative figures of the corresponding period of 2025, as follows: Unless otherwise stated, in this report, the financial information without specifying denominated currency is presented in Renminbi, otherwise presented in the specified currency. CONSOLIDATED BALANCE SHEET As at 30 June 2026 Items Balance at the end of the period Balance at the beginning of the period Current assets: Monetary fund 1,019,673,354.55 1,206,668,947.31 Settlement deposits Lendings to banks and other financial institutions Held-for-trading financial assets Derivative financial assets Notes receivable 48,663,549.04 64,160,247.07 Trade receivable 670,425,482.21 745,887,890.30 Receivables financing 15,825,498.12 18,059,053.26 Prepayments 123,207,379.57 121,744,957.40 Premium receivable Reinsurance accounts receivable Provision for reinsurance contract receivable Other accounts receivable 213,950,996.07 222,980,539.93 Including: Interest receivable Dividend receivable Financial assets held under resale agreements Inventories 642,445,020.51 639,318,024.03 Including: Data resources Contract assets Assets held-for-sale Non-current asset due within one year 9,161,805.65 9,161,805.65 Other current assets 93,727,803.01 101,204,760.12 Total current assets 2,837,080,888.73 3,129,186,225.07
Page 8
– 8 – 7INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED Items Balance at the end of the period Balance at the beginning of the period Non-current assets: Loans and advances to customers Debt investments Other debt investments Long-term receivables Long-term equity investments 279,343,718.96 285,914,866.92 Investment in other equity instruments 12,242,896.51 4,242,896.51 Other non-current financial assets Investment properties 420,310,035.00 420,310,035.00 Fixed assets 4,022,390,233.42 4,282,996,525.15 Construction in progress 27,665,632.75 15,313,954.59 Productive biological assets Oil and gas assets Right-of-use assets 7,253,486.07 1,907,107.05 Intangible assets 1,205,180,887.74 1,237,068,471.77 Including: Data resources Development expenditure Including: Data resources Goodwill 377,999,953.79 377,999,953.79 Long-term unamortized expenses 50,114,788.30 55,013,649.16 Deferred income tax assets 60,838,946.38 60,694,626.34 Other non-current assets 27,032,318.11 36,979,589.67 Total non-current assets 6,490,372,897.03 6,778,441,675.95 Total assets 9,327,453,785.76 9,907,627,901.02 CONSOLIDATED BALANCE SHEET (Continued)
Page 9
– 9 – 8 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 Items Balance at the end of the period Balance at the beginning of the period Current liabilities: Short-term borrowings 1,718,987,276.33 1,648,729,219.93 Borrowings from central bank Loans from other banks Held-for-trading financial liabilities Derivative financial liabilities 11,620,363.97 3,768,510.75 Notes payable 20,000,000.00 Trade payable 420,023,502.39 521,018,268.23 Receipts in advance 1,334,831.95 834,893.77 Contract liabilities 194,535,352.56 157,321,459.13 Proceeds from disposal of financial assets under agreements to repurchase Receipt of deposits and placements from banks and other financial institutions Acting trading securities Acting underwriting securities Employee benefits payables 26,386,750.15 40,998,488.01 Tax payable 33,669,773.34 30,315,687.50 Other payables 191,251,389.52 304,137,151.63 Including: Interest payable Dividend payable Handling charges and commission payable Reinsurance accounts payable Liabilities held-for-sale Non-current liabilities due within one year 1,054,064,573.83 1,548,512,093.05 Other current liabilities 30,532,002.02 31,491,323.97 Total current liabilities 3,702,405,816.06 4,287,127,095.97 CONSOLIDATED BALANCE SHEET (Continued)
Page 10
– 10 – 9INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED Items Balance at the end of the period Balance at the beginning of the period Non-current liabilities: Provision for insurance contracts Long-term borrowings 1,642,081,063.12 1,298,437,307.66 Bonds payable 910,934,798.87 909,146,754.65 Including: Preferred shares Perpetual bond Lease liabilities 2,654,220.54 930,876.38 Long-term accounts payables 104,047,301.07 136,234,058.23 Long-term employee benefits payables Provisions 257,246,009.55 248,439,115.35 Deferred income 134,369,134.77 141,548,067.28 Deferred income tax liabilities 55,469,663.63 55,539,606.28 Other non-current liabilities 4,895,669.80 8,243,215.40 Total non-current liabilities 3,111,697,861.35 2,798,519,001.23 Total liabilities 6,814,103,677.41 7,085,646,097.20 CONSOLIDATED BALANCE SHEET (Continued)
Page 11
– 11 – 10 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 Items Balance at the end of the period Balance at the beginning of the period Owners’ equity: Share capital 1,105,255,802.40 1,105,255,802.40 Other equity instruments Including: Preferred shares Perpetual bond Capital reserve 1,314,741,156.60 1,314,741,156.60 Less: Treasury shares Other comprehensive income 27,288,354.05 27,221,023.83 Special reserve 10,216,594.36 5,878,887.05 Surplus reserve 269,816,271.96 269,816,271.96 General risk reserve Undistributed profits -615,242,109.92 -346,806,761.69 Total equity attributable to owners of the parent company 2,112,076,069.45 2,376,106,380.15 Minority interests 401,274,038.90 445,875,423.67 Total owners’ equity 2,513,350,108.35 2,821,981,803.82 Total liabilities and owners’ equity 9,327,453,785.76 9,907,627,901.02 CONSOLIDATED BALANCE SHEET (Continued)
Page 12
– 12 – 11INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED BALANCE SHEET OF THE PARENT COMPANY As at 30 June 2026 Items Balance at the end of the period Balance at the beginning of the period Current assets: Monetary fund 744,307,398.76 928,732,292.22 Held-for-trading financial assets Derivative financial assets Notes receivable 18,752,543.41 41,740,483.25 Trade receivable 166,972,542.36 180,397,074.75 Receivables financing 635,068.47 3,010,775.66 Prepayments 84,771,470.10 32,114,248.49 Other accounts receivable 2,206,728,831.93 2,285,026,737.11 Including: Interest receivable Dividend receivable 33,000,000.00 33,000,000.00 Inventories Including: Data resources Contract assets Assets held-for-sale Non-current assets due within one year 9,161,805.65 9,161,805.65 Other current assets 1,374,200.69 1,858,805.48 Total current assets 3,232,703,861.37 3,482,042,222.61
Page 13
– 13 – 12 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 Items Balance at the end of the period Balance at the beginning of the period Non-current assets: Debt investments Other debt investments Long-term receivables Long-term equity investments 3,401,200,253.87 3,396,639,621.32 Investment in other equity instruments 8,000,000.00 Other non-current financial assets Investment properties 132,876,435.00 132,876,435.00 Fixed assets 53,071,489.03 55,680,779.93 Construction in progress 4,899,981.60 4,899,981.60 Productive biological assets Oil and gas assets Right-of-use assets Intangible assets 24,670,595.58 27,015,980.75 Including: Data resources Development expenditure Including: Data resources Goodwill Long-term unamortized expenses 5,968,766.38 6,193,541.50 Deferred income tax assets 9,586,649.23 9,586,649.23 Other non-current assets 546,000.00 546,000.00 Total non-current assets 3,640,820,170.69 3,633,438,989.33 Total assets 6,873,524,032.06 7,115,481,211.94 BALANCE SHEET OF THE PARENT COMPANY (Continued)
Page 14
– 14 – 13INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED Items Balance at the end of the period Balance at the beginning of the period Current liabilities: Short-term borrowings 1,528,453,114.59 1,241,002,269.34 Held-for-trading financial liabilities Derivative financial liabilities 11,620,363.97 3,768,510.75 Notes payable 33,000,000.00 Trade payable 105,967,817.58 194,589,943.78 Receipts in advance Contract liabilities 38,734,148.03 11,147,070.65 Employee benefits payables 1,681,303.86 3,879,455.67 Tax payable 794,070.11 1,272,060.93 Other payables 872,430,938.93 979,375,466.02 Including: Interest payable Dividend payable Liabilities held-for-sale Non-current liabilities due within one year 750,525,000.00 1,223,646,564.25 Other current liabilities 4,999,570.90 5,283,972.93 Total current liabilities 3,315,206,327.97 3,696,965,314.32 BALANCE SHEET OF THE PARENT COMPANY (Continued)
Page 15
– 15 – 14 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 Items Balance at the end of the period Balance at the beginning of the period Non-current liabilities: Long-term borrowings 556,250,000.00 362,500,000.00 Bonds payable 910,934,798.87 909,146,754.65 Including: Preferred shares Perpetual bond Lease liabilities Long-term accounts payables Long-term employee benefits payables Provisions 48,851,554.99 48,851,554.99 Deferred income 4,168,361.39 4,603,687.01 Deferred income tax liabilities 3,024,757.68 3,024,757.68 Other non-current liabilities 16,554.62 16,554.62 Total non-current liabilities 1,523,246,027.55 1,328,143,308.95 Total liabilities 4,838,452,355.52 5,025,108,623.27 BALANCE SHEET OF THE PARENT COMPANY (Continued)
Page 16
– 16 – 15INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED Items Balance at the end of the period Balance at the beginning of the period Owners’ equity: Share capital 1,105,255,802.40 1,105,255,802.40 Other equity instruments Including: Preferred shares Perpetual bond Capital reserve 1,501,422,854.57 1,501,422,854.57 Less: Treasury shares Other comprehensive income 3,509,701.20 3,509,701.20 Special reserve Surplus reserve 253,304,996.86 253,304,996.86 Undistributed profits -828,421,678.49 -773,120,766.36 Total owners’ equity 2,035,071,676.54 2,090,372,588.67 Total liabilities and owners’ equity 6,873,524,032.06 7,115,481,211.94 BALANCE SHEET OF THE PARENT COMPANY (Continued)
Page 17
– 17 – 16 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 CONSOLIDATED INCOME STATEMENT (UNAUDITED) For the six months ended 30 June 2026 Items First half of 2026 First half of 2025 I. Total operating revenue 1,358,184,571.19 1,500,470,309.76 Including: Operating revenue 1,358,184,571.19 1,500,470,309.76 Interest income Premium earned Handling charges and commission income II. Total operating cost 1,659,315,566.22 1,846,670,942.48 Including: Cost of operation 1,294,407,599.44 1,451,916,569.17 Interest expenses Handling charges and commission expenses Surrenders Net claims expenses Net provisions for insurance reserve Insurance policy dividend paid Reinsurance costs Tax and levies 27,308,867.50 20,304,468.72 Selling expenses 40,257,723.69 41,851,616.53 Administrative expenses 179,540,865.39 170,893,774.94 Research and development expenses 46,286,118.48 67,829,792.46 Finance costs 71,514,391.72 93,874,720.66 Including: Interest expense 84,730,521.91 94,743,471.81 Interest income 1,546,181.96 2,603,195.24 Add: Other gains 12,741,144.50 16,917,438.43 Investment income (Loss represented in “-” signs) -3,746,558.84 8,232,515.82
Page 18
– 18 – 17INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED Items First half of 2026 First half of 2025 Including: Investment income from associates and joint ventures -5,650,571.01 6,044,247.78 Gains on derecognition of financial assets at amortized cost Foreign exchange gains (Loss represented in “-” signs) Gain from net exposure hedgings (Loss represented in “-” signs) Gains from changes in fair value (Loss represented in “-” signs) -11,233,568.73 2,797,574.60 Credit impairment losses (Loss represented in “-” signs) 8,598,859.78 -4,051,548.35 Asset impairment losses (Loss represented in “-” signs) -20,005,930.84 -7,049,014.26 Gains on disposal of assets (Loss represented in “-” signs) 61,950.02 37,313.81 III. Operatin g profit (Loss represented in “-” signs) -314,715,099.14 -329,316,352.67 Add: Non-operating income 4,176,456.21 4,117,710.29 Less: Non-operating expenses 4,121,158.51 -418,250.59 CONSOLIDATED INCOME STATEMENT (UNAUDITED) (Continued)
Page 19
– 19 – 18 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 Items First half of 2026 First half of 2025 IV. Total profi ts (Total loss represented in “-” signs) -314,659,801.44 -324,780,391.79 Less: Income tax expenses 3,814,120.88 3,460,345.21 V. Net profit s (Net loss represented in “-” signs) -318,473,922.32 -328,240,737.00 (1) Breakdown by continuity of operation 1. Net profits from continuing operations (Net loss represented in “-” signs) -318,473,922.32 -328,240,737.00 2. Net profits from discontinued operations (Net loss represented in “-” signs) (2) Breakdown by attributable interests 1. Net profits attributable to shareholders of the parent company (Net loss represented in “-” signs) -268,435,348.23 -278,177,080.22 2. Profit and loss attributable to minority interests (Net loss represented in “-” signs) -50,038,574.09 -50,063,656.78 CONSOLIDATED INCOME STATEMENT (UNAUDITED) (Continued)
Page 20
– 20 – 19INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED Items First half of 2026 First half of 2025 VI. Other comprehensive income, net of tax 67,330.22 28,522.21 Other comprehensive income attributable to owners of the parent company, net of tax 67,330.22 28,522.21 (1) Other comprehensive income that cannot be reclassified to profit and loss 1. Changes arising from remeasuring defined benefit plan 2. Other comprehensive income that cannot be reclassified to profit or loss under the equity method 3. Change in fair value of investments in other equity instruments 4. Change in fair value due to enterprise’s own credit risk 5. Others CONSOLIDATED INCOME STATEMENT (UNAUDITED) (Continued)
Page 21
– 21 – 20 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 Items First half of 2026 First half of 2025 (2) Other comprehensive income that will be reclassified to profit and loss 67,330.22 28,522.21 1. Other comprehensive income that can be reclassified to profit or loss under the equity method 2. Change in fair value of other debt investments 3. Amount of financial assets reclassified into other comprehensive income 4. Provision for credit impairment of other debt investments 5. Reserve for cash flow hedging 6. Exchange difference on translation of financial statements in foreign currency 67,330.22 28,522.21 7. Others Other comprehensive income attributable to minority interests, net of tax CONSOLIDATED INCOME STATEMENT (UNAUDITED) (Continued)
Page 22
– 22 – 21INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED Items First half of 2026 First half of 2025 VII. Total comprehensive income -318,406,592.10 -328,212,214.79 Total comprehensive income attributable to owners of the parent company -268,368,018.01 -278,148,558.01 Total comprehensive income attributable to minority interest -50,038,574.09 -50,063,656.78 VIII. Earnings per share: (1) Basic earnings per share -0.24 -0.25 (2) Diluted earnings per share -0.24 -0.25 CONSOLIDATED INCOME STATEMENT (UNAUDITED) (Continued)
Page 23
– 23 – 22 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 INCOME STATEMENT OF THE PARENT COMPANY (UNAUDITED) For the six months ended 30 June 2026 Items First half of 2026 First half of 2025 I. Operating revenue 259,408,800.24 350,817,891.13 Less: Cost of operation 250,680,694.31 343,887,443.53 Tax and levies 1,163,917.01 976,898.34 Selling expenses 582,166.71 833,075.94 Administrative expenses 30,706,475.14 29,209,399.50 Research and development expenses 7,412,436.61 8,604,172.88 Finance costs 15,144,712.15 28,181,429.71 Including: Interest expense 28,418,773.91 28,258,280.83 Interest income 1,284,652.24 1,795,214.27 Add: Other gains 964,875.18 1,740,910.92 Investment income (Loss represented in “-” signs) -1,757,380.48 10,742,515.82 Including: Investment income from associates and joint ventures -3,661,392.65 6,044,247.78 Gains on derecognition of financial assets at amortized cost (Loss represented in “-” signs) Gain from net exposure hedging (Loss represented in “-” signs) Gains from changes in fair value (Loss represented in “-” signs) -11,233,568.73 2,797,574.60 Credit impairment losses (Loss represented in “-” signs) 3,119,375.50 3,230,316.49 Asset impairment losses (Loss represented in “-” signs) Gains on disposal of assets (Loss represented in “-” signs) 30,081.19
Page 24
– 24 – 23INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED Items First half of 2026 First half of 2025 II. Operating profit (Loss represented in “-” signs) -55,188,300.22 -42,333,129.75 Add: Non-operating income 36,979.90 58,283.65 Less: Non-operating expenses 131,243.19 -710,745.82 III. Total profit (Total loss represented in “-” signs) -55,282,563.51 -41,564,100.28 Less: Income tax expenses 18,348.62 -17,651.30 IV. Net profit (Net loss represented in “-” signs) -55,300,912.13 -41,546,448.98 (1) Net profits from continuing operations (Net loss represented in “-” signs) -55,300,912.13 -41,546,448.98 (2) Net profits from discontinued operations (Net loss represented in “-” signs) V. Other comprehensive income, net of tax (1) Other comprehensive income that cannot be reclassified to profit and loss 1. Changes arising from remeasuring defined benefit plan 2. Other comprehensive income that cannot be reclassified to profit or loss under the equity method 3. Change in fair value of investments in other equity instruments 4. Change in fair value due to enterprise’s own credit risk 5. Others INCOME STATEMENT OF THE PARENT COMPANY (UNAUDITED) (Continued)
Page 25
– 25 – 24 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 Items First half of 2026 First half of 2025 (2) Other comprehensive income that will be reclassified to profit and loss 1. Other comprehensive income that can be reclassified to profit or loss under the equity method 2. Change in fair value of other debt investments 3. Amount of financial assets reclassified into other comprehensive income 4. Provision for credit impairment of other debt investments 5. Reserve for cash flow hedging 6. Exchange difference on translation of financial statements in foreign currency 7. Others VI. Total comprehensive income -55,300,912.13 -41,546,448.98 VII. Earnings per share: (1) Basic earnings per share (2) Diluted earnings per share INCOME STATEMENT OF THE PARENT COMPANY (UNAUDITED) (Continued)
Page 26
– 26 – 25INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED) For the six months ended 30 June 2026 Items First half of 2026 First half of 2025 I. Cash flows from operating activities: Cash received from sales of goods and rendering of services 1,795,365,912.76 1,703,361,655.81 Net increase in customer deposits and placements from banks and other financial institutions Net increase in borrowings from central bank Net increase in borrowings from other financial institutions Cash received from original insurance contract premium Net cash received from reinsurance business Net increase in deposits and investments from policyholders Cash received from interest, handling charges and commission Net increase in loans from banks and other financial institutions Net increase in cash from repurchase business Net cash received from acting trading securities Refund of taxes and levies 4,204,316.87 4,646,400.49 Other cash receipts relating to operating activities 44,472,400.42 32,804,729.85 Sub-total of cash inflows from operating activities 1,844,042,630.05 1,740,812,786.15
Page 27
– 27 – 26 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 Items First half of 2026 First half of 2025 Cash paid for goods and services 1,236,981,824.34 1,378,375,285.25 Net increase in customer loans and advances Net increase in placements with central bank and other banks Cash paid for compensation under original insurance contract Net increase in lendings to banks and other financial institutions Cash paid for interest, handling charges and commission Cash paid for policyholders’ dividend Cash paid to and on behalf of employees 292,299,389.18 285,835,914.40 Payments of taxes and levies 59,721,819.31 47,972,128.25 Other cash payments relating to operating activities 165,201,827.07 79,337,786.83 Sub-total of cash outflows from operating activities 1,754,204,859.90 1,791,521,114.73 Net cash flows from operating activities 89,837,770.15 -50,708,328.58 CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED) (Continued)
Page 28
– 28 – 27INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED Items First half of 2026 First half of 2025 II. Cash flows from investing activities: Cash received upon withdrawal of investments 1,280,000,000.00 1,125,000,000.00 Cash received from investment income 3,027,648.97 4,078,630.30 Net cash received from disposal of fixed assets, intangible assets and other long-term assets 335,193.29 21,316.00 Net cash received from disposal of subsidiaries and other operating units Other cash receipts relating to investing activities Sub-total of cash inflows from investing activities 1,283,362,842.26 1,129,099,946.30 Cash paid to acquire fixed assets, intangible assets and other long- term assets 37,757,535.36 74,667,503.87 Cash paid on investments 1,290,215,775.20 1,128,400,000.00 Net increase of mortgaged loans Net cash paid on acquisition of subsidiaries and other operating units Other cash payments relating to investing activities Sub-total of cash outflows from investing activities 1,327,973,310.56 1,203,067,503.87 Net cash flows from investing activities -44,610,468.30 -73,967,557.57 CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED) (Continued)
Page 29
– 29 – 28 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 Items First half of 2026 First half of 2025 III. Cash flows from financing activities: Cash received from investment 120,000.00 500,000.00 Including: Cash received from minority shareholders’ investment in subsidiaries Cash received from borrowings 1,696,179,650.08 2,162,766,719.80 Other cash receipts relating to financing activities Sub-total of cash inflows from financing activities 1,696,299,650.08 2,163,266,719.80 Cash payments for settlement of borrowings 1,770,006,808.90 1,923,127,699.10 Cash payments for distribution of dividend, profit or interest expenses 65,279,500.99 77,828,886.11 Including: Cash payments for distribution of dividends and profit by subsidiaries to minority shareholders 3,450,000.00 Other cash payments relating to financing activities 3,004,665.46 2,769,173.52 Sub-total of cash outflows from financing activities 1,838,290,975.35 2,003,725,758.73 Net cash flows from financing activities -141,991,325.27 159,540,961.07 CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED) (Continued)
Page 30
– 30 – 29INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED Items First half of 2026 First half of 2025 IV. Effect of foreign exchange rate changes on cash and cash equivalents 67,330.22 28,522.21 V. Net increase in cash and cash equivalents -96,696,693.20 34,893,597.13 Add: Balances of cash and cash equivalents at the beginning of the period 1,099,872,837.30 1,016,307,175.22 VI. Balances of cash and cash equivalents at end of period 1,003,176,144.10 1,051,200,772.35 CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED) (Continued)
Page 31
– 31 – 30 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 CASH FLOW STATEMENT OF THE PARENT COMPANY (UNAUDITED) For the six months ended 30 June 2026 Items First half of 2026 First half of 2025 I. Cash flows from operating activities: Cash received from sales of goods and rendering of services 663,356,479.09 400,867,002.89 Refund of taxes and levies Other cash receipts relating to operating activities 1,574,403,868.54 1,111,574,628.81 Sub-total of cash inflows from operating activities 2,237,760,347.63 1,512,441,631.70 Cash paid for goods and services 601,234,720.75 365,476,942.56 Cash paid to and on behalf of employees 26,693,505.03 25,147,163.11 Payments of taxes and levies 3,013,230.75 921,340.70 Other cash payments relating to operating activities 1,599,869,288.95 1,040,697,433.42 Sub-total of cash outflows from operating activities 2,230,810,745.48 1,432,242,879.79 Net cash flows from operating activities 6,949,602.15 80,198,751.91
Page 32
– 32 – 31INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED Items First half of 2026 First half of 2025 II. Cash flows from investing activities: Cash received from withdrawal of investments 1,280,000,000.00 1,125,000,000.00 Cash received from investment income 2,952,854.45 96,628,630.30 Net cash received from disposal of fixed assets, intangible assets and other long-term assets 68,469.77 Net cash received from disposal of subsidiaries and other operating units Other cash receipts relating to investing activities 90,720,000.00 Sub-total of cash inflows from investing activities 1,373,741,324.22 1,221,628,630.30 Cash paid to acquire fixed assets, intangible assets and other long- term assets 2,829,852.62 2,069,614.96 Cash paid on investments 1,295,022,025.20 1,138,400,000.00 Net cash paid on acquisition of subsidiaries and other operating units Other cash payments relating to investing activities 35,511,661.13 Sub-total of cash outflows from investing activities 1,333,363,538.95 1,140,469,614.96 Net cash flows from investing activities 40,377,785.27 81,159,015.34 CASH FLOW STATEMENT OF THE PARENT COMPANY (UNAUDITED) (Continued)
Page 33
– 33 – 32 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 Items First half of 2026 First half of 2025 III. Cash flows from financing activities: Cash received from investment Cash received from borrowings 1,260,030,053.83 1,427,202,084.23 Other cash receipts relating to financing activities Sub-total of cash inflows from financing activities 1,260,030,053.83 1,427,202,084.23 Cash payments for settlement of borrowings 1,343,012,748.98 1,535,969,125.13 Cash payments for distribution of dividend, profit or interest expenses 52,456,201.78 48,742,643.04 Other cash payments relating to financing activities Sub-total of cash outflows from financing activities 1,395,468,950.76 1,584,711,768.17 Net cash flows from financing activities -135,438,896.93 -157,509,683.94 IV. Effect of foreign exchange rate changes on cash and cash equivalents V. Net increase in cash and cash equivalents -88,111,509.51 3,848,083.31 Add: Balances of cash and cash equivalents at the beginning of the period 830,924,136.03 760,261,184.33 VI. Balances of cash and cash equivalents at end of period 742,812,626.52 764,109,267.64 CASH FLOW STATEMENT OF THE PARENT COMPANY (UNAUDITED) (Continued)
Page 34
– 34 – 33INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY (UNAUDITED) For the six months ended 30 June 2026 First half of 2026 Equity attributable to owners of the parent company Other equity instruments Items Share capital Preferred shares Perpetual bond Others Capital reserve Less: Treasury shares Other comprehensive income Special reserve Surplus reserve General risk reserve Undistributed profits Others Sub-total Minority interests Total owners’ equity I. Balance at the end of last year 1,105,255,802.40 1,314,741,156.60 27,221,023.83 5,878,887.05 269,816,271.96 -346,806,761.69 2,376,106,380.15 445,875,423.67 2,821,981,803.82 Add: Changes in accounting policy Correction of previous errors Others II. Balance at the beginning of the current year 1,105,255,802.40 1,314,741,156.60 27,221,023.83 5,878,887.05 269,816,271.96 -346,806,761.69 2,376,106,380.15 445,875,423.67 2,821,981,803.82 III. Movement in the current period (Decrease represented by “-” signs) 67,330.22 4,337,707.31 -268,435,348.23 -264,030,310.70 -44,601,384.77 -308,631,695.47 (1) Total comprehensive income 67,330.22 -268,435,348.23 -268,368,018.01 -50,038,574.09 -318,406,592.10 (2) Owners’ contribution and reduction of capital 3,807,205.99 3,807,205.99 1. Owners’ contribution to ordinary shares 2. Capital contribution from holders of other equity instruments 3. Amount of share-based payment charged to owners’ equity 4. Others 3,807,205.99 3,807,205.99 (3) Profit distribution 1. Appropriation to surplus reserve 2. Appropriation to general risk reserve 3. Distribution to owners (or shareholders) 4. Others (4) Internal transfer of owner’s equity 1. Transfer of capital reserve into capital (or capital stock) 2. Transfer of surplus reserve to capital (or share capital) 3. Using surplus reserve to compensate deficit 4. Transfer of changes in defined benefit plans to retained earnings 5. Transfer of other comprehensive income to retained earnings 6. Others (5) Special reserve 4,337,707.31 4,337,707.31 1,629,983.33 5,967,690.64 1. Appropriation during the period 12,398,242.29 12,398,242.29 4,074,914.90 16,473,157.19 2. Utilization during the period 8,060,534.98 8,060,534.98 2,444,931.57 10,505,466.55 (6) Others IV. Balance at the end of the period 1,105,255,802.40 1,314,741,156.60 27,288,354.05 10,216,594.36 269,816,271.96 -615,242,109.92 2,112,076,069.45 401,274,038.90 2,513,350,108.35
Page 35
– 35 – 34 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY (UNAUDITED) (Continued) For the six months ended 30 June 2025 First half of 2025 Equity attributable to owners of the parent company Other equity instruments Items Share capital Preferred shares Perpetual bond Others Capital reserve Less: Treasury shares Other comprehensive income Special reserve Surplus reserve General risk reserve Undistributed profits Others Sub-total Minority interests Total owners’ equity I. Balance at the end of last year Figure 1,105,255,802.40 1,311,186,481.60 27,174,888.46 1,685,773.25 269,816,271.96 884,731,010.75 3,599,850,228.42 551,039,588.24 4,150,889,816.66 Add: Changes in accounting policy Correction of previous errors Others II. Balance at the beginning of the current year 1,105,255,802.40 1,311,186,481.60 27,174,888.46 1,685,773.25 269,816,271.96 884,731,010.75 3,599,850,228.42 551,039,588.24 4,150,889,816.66 III. Movement in the current period (Decrease represented by “-” signs) 28,522.21 3,122,834.25 -278,177,080.22 -275,025,723.76 -50,960,132.63 -325,985,856.39 (1) Total comprehensive income 28,522.21 -278,177,080.22 -278,148,558.01 -50,063,656.78 -328,212,214.79 (2) Owners’ contribution and reduction of capital 500,000.00 500,000.00 1. Owners’ contribution to ordinary shares 500,000.00 500,000.00 2. Capital contribution from holders of other equity instruments 3. Amount of share-based payment charged to owners’ equity 4. Others (3) Profit distribution -2,450,000.00 -2,450,000.00 1. Appropriation to surplus reserve 2. Appropriation to general risk reserve 3. Distribution to owners (or shareholders) -2,450,000.00 -2,450,000.00 4. Others (4) Internal transfer of owner’s equity 1. Transfer of capital reserve into capital (or capital stock) 2. Transfer of surplus reserve to capital (or share capital) 3. Using surplus reserve to compensate deficit 4. Transfer of changes in defined benefit plans to retained earnings 5. Transfer of other comprehensive income to retained earnings 6. Others (5) Special reserve 3,122,834.25 3,122,834.25 1,053,524.15 4,176,358.40 1. Appropriation during the period 9,326,173.24 9,326,173.24 3,758,221.30 13,084,394.54 2. Utilization during the period 6,203,338.99 6,203,338.99 2,704,697.15 8,908,036.14 (6) Others IV. Balance at the end of the period 1,105,255,802.40 1,311,186,481.60 27,203,410.67 4,808,607.50 269,816,271.96 606,553,930.53 3,324,824,504.66 500,079,455.61 3,824,903,960.27
Page 36
– 36 – 35INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED STATEMENT OF CHANGES IN OWNERS’ EQUITY OF THE PARENT COMPANY (UNAUDITED) For the six months ended 30 June 2026 First half of 2026 Other equity instruments Items Share capital Preferred shares Perpetual bond Others Capital reserve Less: Treasury shares Other comprehensive income Special reserve Surplus reserve Undistributed profits Others Total owners’ equity I. Balance at the end of last year 1,105,255,802.40 1,501,422,854.57 3,509,701.20 253,304,996.86 -773,120,766.36 2,090,372,588.67 Add: Changes in accounting policy Correction of previous errors Others II. Balance at the beginning of the current year 1,105,255,802.40 1,501,422,854.57 3,509,701.20 253,304,996.86 -773,120,766.36 2,090,372,588.67 III. Movement in the current period (Decrease represented by “-” signs) -55,300,912.13 -55,300,912.13 (1) Total comprehensive income -55,300,912.13 -55,300,912.13 (2) Owners’ contribution and reduction of capital 1. Owners’ contribution to ordinary shares 2. Capital contribution from holders of other equity instruments 3. Amount of share-based payment charged to owners’ equity 4. Others (3) Profit distribution 1. Appropriation to surplus reserve 2. Distribution to owners (or shareholders) 3. Others (4) Internal transfer of owner’s equity 1. Transfer of capital reserve into capital (or capital stock) 2. Transfer of surplus reserve to capital (or share capital) 3. Using surplus reserve to compensate deficit 4. Transfer of changes in defined benefit plans to retained earnings 5. Transfer of other comprehensive income to retained earnings 6. Others (5) Special reserve 1. Appropriation during the period 2. Utilization during the period (6) Others IV. Balance at the end of the period 1,105,255,802.40 1,501,422,854.57 3,509,701.20 253,304,996.86 -828,421,678.49 2,035,071,676.54
Page 37
– 37 – 36 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 STATEMENT OF CHANGES IN OWNERS’ EQUITY OF THE PARENT COMPANY (UNAUDITED) (Continued) For the six months ended 30 June 2025 First half of 2025 Other equity instruments Items Share capital Preferred shares Perpetual bond Others Capital reserve Less: Treasury shares Other comprehensive income Special reserve Surplus reserve Undistributed profits Others Total owners’ equity I. Balance at the end of last year 1,105,255,802.40 1,501,422,854.57 3,509,701.20 253,304,996.86 240,659,288.00 3,104,152,643.03 Add: Changes in accounting policy Correction of previous errors Others II. Balance at the beginning of the current year 1,105,255,802.40 1,501,422,854.57 3,509,701.20 253,304,996.86 240,659,288.00 3,104,152,643.03 III. Movement in the current period (Decrease represented by “-” signs) -41,546,448.98 -41,546,448.98 (1) Total comprehensive income -41,546,448.98 -41,546,448.98 (2) Owners’ contribution and reduction of capital 1. Owners’ contribution to ordinary shares 2. Capital contribution from holders of other equity instruments 3. Amount of share-based payment charged to owners’ equity 4. Others (3) Profit distribution 1. Appropriation to surplus reserve 2. Distribution to owners (or shareholders) 3. Others (4) Internal transfer of owner’s equity 1. Transfer of capital reserve into capital (or capital stock) 2. Transfer of surplus reserve to capital (or share capital) 3. Using surplus reserve to compensate deficit 4. Transfer of changes in defined benefit plans to retained earnings 5. Transfer of other comprehensive income to retained earnings 6. Others (5) Special reserve 1. Appropriation during the period 2. Utilization during the period (6) Others IV. Balance at the end of the period 1,105,255,802.40 1,501,422,854.57 3,509,701.20 253,304,996.86 199,112,839.02 3,062,606,194.05
Page 38
– 38 – 37INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 1. GENERAL The Company is a joint stock limited company incorporated in the People’s Republic of China (the “PRC”). The H Shares and A Shares of the Company are listed on The Stock Exchange of Hong Kong Limited and Shenzhen Stock Exchange, respectively. The address of the registered office and principal place of business of the Company is 1/F, 3/F, North of 8/F, 9/F-12/F of Dongjiang Environmental Building, No. 9 Langshan Road, North Zone of Hi-tech Industrial Park, Nanshan District, Shenzhen, the PRC. The functional reporting currency of the Company is RMB. The functional reporting currency of its overseas operations is the currency of the place in which they operate. The consolidated financial statements are presented in RMB. The Company and its subsidiaries (collectively referred to as the “Group”) are engaged in environmental protection industry. The business scope mainly includes: collection, treatment and comprehensive utilization of industrial waste; treatment of wastewater, waste gas and waste slag; design, construction and operation of environmental protection facilities; rare and precious metals recovery and utilization; sales of chemical products; production and trading of environmental protection materials, recycled environmental protection products, environmental protection equipments; development, promotion and application of new environmental protection products and technologies; investment in industrial enterprises; import and export of goods and technologies.
Page 39
– 39 – 38 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 2. BASIS OF PREPARATION The financial statements of the Group have been prepared on a going concern basis to reflect the transactions and events which have occurred, and in accordance with the disclosure requirements of the Accounting Standards for Enterprises – Basic Standards issued by Ministry of Finance of the PRC and other relevant regulations (hereinafter referred to as “Accounting Standard for Business Enterprises”), the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Hong Kong Companies Ordinance as well as the accounting policies and estimates applicable to the Group. The Directors of the Company have taken into account the Group’s available sources of funding for the next twelve months, including but not limited to the unutilised banking facilities ready available to the Group amounted to approximately RMB3,552 million as at 30 June 2026, as well as the expected net cash inflows from operating activities for the next twelve months. This forecast has considered the relevant measures taken by the Group to improve profitability and cash flow, including strict control over costs and expenses, enhanced tracking and risk management of accounts receivable collection, and improved efficiency in use of funds. The Board of the Company believes that the Group has sufficient working capital to continue as a going concern for the next twelve months. Accordingly, these financial statements have been prepared on the basis of going concern assumption. These interim results have not been audited by the auditors of the Company, but been reviewed by the Audit and Risk Management Committee of the Company.
Page 40
– 40 – 39INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 3. OPERATING REVENUE Operating revenue represents the net amount received and receivable for goods sold and services rendered by the Group to external customers, net of trade discounts. Analysis of the Group’s operating revenue during the Reporting Period is as follows: Six months ended 30 June 2026 For the six months ended 30 June 2026 For the six months ended 30 June 2025 Business segment (Unaudited) (Unaudited) Industrial waste recycling and utilization 720,947,468.22 646,104,217.38 Industrial waste treatment and disposal 372,999,731.85 396,990,856.03 Rare and precious metals recovery and utilization 108,862,853.93 287,227,264.88 Municipal waste treatment and disposal 38,029,037.99 44,642,362.92 Renewable energy utilization 4,842,681.12 10,590,979.26 Environmental engineering and services 27,683,938.53 28,246,587.57 Electronic waste dismantling 66,921,871.42 67,557,360.90 Others 17,896,988.13 19,110,680.82 Total 1,358,184,571.19 1,500,470,309.76
Page 41
– 41 – 40 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 4. SEGMENT INFORMATION The operations of the Company are classified into eight reportable segments. These reportable segments are determined based on the internal organisation structure, management requirements and reporting system. The management of the Company evaluates the operating results of the segment to decide resource allocation to them and to evaluate their business performance. Major products and services provided by each reportable segment of the Company includes industrial waste recycling and utilization, industrial waste treatment and disposal, rare and precious metals recovery and utilization, municipal waste treatment and disposal, renewable energy utilization, environmental engineering and services, electronic waste dismantling and others. Analysis of the Group’s segmental information by business segments during the Reporting Period is set out below. For the six months ended 30 June 2026 – unaudited Items Industrial Waste Recycling and Utilization Industrial Waste Treatment and Disposal Rare and Precious Metal Recovery and Utilization Municipal Waste Treatment and Disposal Electronic Waste Dismantling Environmental Engineering and Services Renewable Energy Utilization Others Unallocated Profits Inter-segment Offsets Total I. Operating revenue 732,494,257.67 404,181,675.03 108,862,853.93 38,029,037.99 66,921,871.42 41,088,624.81 4,842,681.12 23,407,677.08 0.00 -61,644,107.86 1,358,184,571.19 Including: Revenue from sale to external customers 720,947,468.22 372,999,731.85 108,862,853.93 38,029,037.99 66,921,871.42 27,683,938.53 4,842,681.12 17,896,988.13 0.00 0.00 1,358,184,571.19 Revenue from inter-segment transactions 11,546,789.45 31,181,943.18 0.00 0.00 0.00 13,404,686.28 0.00 5,510,688.95 0.00 -61,644,107.86 0.00 II. Cost of operation (inclusive of tax and levies) 640,377,709.21 408,456,210.69 110,821,189.09 23,914,795.62 71,004,555.96 23,710,631.71 4,793,572.57 11,328,934.59 27,308,867.50 0.00 1,321,716,466.94 III. Total profit -16,162,747.98 -170,474,064.71 -54,470,904.66 8,260,856.45 -13,061,950.12 -1,926,755.41 -2,046,571.99 -4,328,930.37 -53,566,010.30 -6,882,722.35 -314,659,801.44 IV. Total assets 1,799,755,725.21 4,775,116,778.27 984,688,196.88 519,451,536.60 413,337,156.82 454,586,830.89 139,529,896.71 378,763,455.62 3,375,617,367.25 -3,513,393,158.49 9,327,453,785.76 V. Total liabilities 1,120,967,760.98 2,920,686,997.21 639,379,663.87 415,093,083.29 284,708,855.95 158,922,195.56 7,291,866.66 187,670,715.68 3,819,320,992.10 -2,739,938,453.89 6,814,103,677.41 VI. Depreciation and amortization 29,518,843.49 224,902,818.78 26,197,679.00 10,692,465.42 10,767,293.30 3,628,819.20 997,917.99 447,464.67 3,544,351.15 0.00 310,697,653.00 VII. Newly increased amount of construction in progress, fixed assets and intangible assets 9,990,445.87 11,542,286.76 174,120.64 7,450.00 4,961,713.49 2,066,738.27 0.00 2,110,600.26 0.00 0.00 30,853,355.29 For the six months ended 30 June 2025 – unaudited Items Industrial Waste Recycling and Utilization Industrial Waste Treatment and Disposal Rare and Precious Metal Recovery and Utilization Municipal Waste Treatment and Disposal Electronic Waste Dismantling Environmental Engineering and Services Renewable Energy Utilization Others Unallocated Profits Inter-segment Offsets Total I. Operating revenue 661,524,909.18 418,926,680.14 287,227,264.88 44,642,362.92 67,557,360.90 40,908,544.61 10,590,979.26 26,187,343.82 0.00 -57,095,135.95 1,500,470,309.76 Including: Revenue from sale to external customers 646,104,217.38 396,990,856.03 287,227,264.88 44,642,362.92 67,557,360.90 28,246,587.57 10,590,979.26 19,110,680.82 0.00 0.00 1,500,470,309.76 Revenue from inter-segment transactions 15,420,691.80 21,935,824.11 0.00 0.00 0.00 12,661,957.04 0.00 7,076,663.00 0.00 -57,095,135.95 0.00 II. Cost of operation (inclusive of tax and levies) 612,693,001.17 431,978,186.47 259,881,610.82 35,778,445.20 65,512,799.41 22,918,386.58 12,335,942.91 10,818,196.61 20,304,468.72 0.00 1,472,221,037.89 III. Total profit -52,618,411.21 -194,426,714.65 -9,576,803.30 6,359,051.30 -9,750,112.09 3,576,311.30 -2,889,308.65 1,410,322.78 -64,556,291.94 -2,308,435.33 -324,780,391.79 IV. Total assets 2,058,040,740.42 4,651,893,891.00 1,167,575,291.95 865,980,124.59 530,803,216.88 495,011,212.08 165,300,218.81 537,355,732.74 4,058,805,724.12 -3,505,238,805.10 11,025,527,347.49 V. Total liabilities 590,227,037.62 2,992,964,446.48 708,512,980.80 464,895,132.62 324,163,962.03 52,019,994.86 8,628,852.16 185,237,837.18 2,624,874,196.37 -750,901,052.90 7,200,623,387.22 VI. Depreciation and amortization 30,494,959.52 234,222,756.64 26,273,603.18 11,906,588.98 10,205,678.55 3,091,820.04 4,034,718.97 368,149.04 5,855,287.88 0.00 326,453,562.80 VII. Newly increased amount of construction in progress, fixed assets and intangible assets 7,539,628.79 16,756,077.59 1,395,779.40 1,733,511.00 784,757.33 3,747,062.78 0.00 105,335.45 2,069,614.96 0.00 34,131,767.30
Page 42
– 42 – 41INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 5. FINANCE COSTS Items Amount of the current period Amount of the previous period Interest expense 84,730,521.91 94,743,471.81 Less: interest income 1,546,181.96 2,603,195.24 Exchange gain or loss -12,347,018.00 1,517,236.25 Bank charges and others 677,069.77 217,207.84 Total 71,514,391.72 93,874,720.66 There was no capitalized interest expense from January to June 2026 (six months ended 30 June 2025: no capitalized interest expense). Breakdown of interest expenditure Items Amount of the current period Amount of the previous period Interest expenditure on loans from financial institutions 65,769,572.14 78,050,482.03 Bond interest based on effective interest rate 12,144,356.09 11,231,096.43 Interest expenditure on decommissioning expenses 6,668,413.02 5,361,938.94 Interest expense on lease liabilities 148,180.66 99,954.41 Sub-total 84,730,521.91 94,743,471.81 Less: Capitalised interest 0.00 0.00 Total 84,730,521.91 94,743,471.81
Page 43
– 43 – 42 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 6. TAXATION 1. Income Tax Expense Items Amount of the current period Amount of the previous period Income tax expense of the current period 4,028,383.57 3,749,946.01 Deferred income tax expense -214,262.69 -289,600.80 Total 3,814,120.88 3,460,345.21 2. Income Tax Items Amount of the current period Amount of the previous period Income tax expense of the current period – Mainland China 3,549,483.93 4,337,019.00 – Hong Kong – – Overprovision in prior years – Mainland China 478,899.64 -587,072.99 Total 4,028,383.57 3,749,946.01
Page 44
– 44 – 43INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 6. TAXATION (Continued) 3. Major taxes and tax rates Type of tax Basis of calculation Tax rate Value Added Tax Value-added tax is calculated as the difference of the output value-added tax, which is computed on assessable income at tax rates of 3%, 5%, 6%, 9% and 13%, and the deductible input VAT for the current period. 3%, 5%, 6%, 9% and 13% City Maintenance and Construction Tax Based on 5% and 7% of actual payment of turnover tax. 5% and 7% Enterprise Income Tax Enterprise Income tax rates are 15%, 16.5%, 20% and 25%, respectively. 15%, 16.5%, 20% and 25% Education Surcharge Based on 3% of actual payment of turnover tax. 3% Local Education Surcharge Based on 2% of actual payment of turnover tax. 2% Property Tax The property tax is levied at 1.2% of the taxable salvage value of the building or 12% of the rental income. 1.2%, 12%
Page 45
– 45 – 44 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 6. TAXATION (Continued) 3. Major taxes and tax rates (Continued) Particulars of tax paying entities using different enterprise income tax rates Name of taxable entities Income tax rate Nanping Oasis Environmental Technology Co., Ltd. Tax exemption Jingzhou Dongjiang Environmental Technology Co., Ltd. 15% Wandesi (Tangshan Caofeidian) Environmental Technology Co., Ltd 15% Fujian Oasis Solid Waste Treatment Co., Ltd. Half of 25% Jiangsu Dongjiang Environmental Services Co., Ltd. Half of 25% Shaoxing Huaxin Environmental Technology Co., Ltd 25% Huizhou Dongjiang Environment Technology Co., Ltd. 15% Kunshan Qiandeng Three Wastes Treatment Co., Ltd. 25% Jiangmen Dongjiang Environmental Technology Co., Ltd. 25% Qingyuan Xinlv Environmental Technology Co., Ltd. 25% Jiaxing Deda Resource Recycling Co., Ltd 25% Xiamen Oasis Environmental Industrial Co., Ltd 25% Jiangxi Dongjiang Environmental Technology Co., Ltd. 15% Shenzhen Baoan Dongjiang Environmental Technology Co., Ltd 15% Chenzhou Xiongfeng Environment Technology Co., Ltd. 15%
Page 46
– 46 – 45INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES Name of taxable entities Income tax rate Dongguan Humen Lvyuan Water Co., Ltd. 15% Xiantao Dongjiang Environmental Technology Co., Ltd. 15% Foshan Fulong Environmental Protection Technology Co., Ltd. 15% Dongjiang Environmental Company Limited 15% Shenzhen Longgang Dongjiang Industrial Waste Treatment Co., Ltd 15% Shenzhen Huabao Technology Co., Ltd. 15% Shenzhen Huatengzhi Technology Co., Ltd. 15% Shaoguan Dongjiang Environmental Renewable Resources Development Co., Ltd. 15% Dongguan Hengjian Environment Technology Co., Ltd. 15% Karamay Wosen Environmental Technology Co., Ltd. 15% Zhuhai Yongxingsheng Environmental Industrial Waste Recycling and Integrated Treatment Co., Ltd. 15% Shenzhen Dongjiang Feeds Additives Co., Ltd. 20% Yunnan Dongjiang Environmental Technology Co., Ltd. 20% Kunshan Port and Shipping Logistics Co., Ltd. 20% Qingdao Dongjiang Environmental Recycled Power Co., Ltd. 20% Nanchang Xinguan Energy Development Co., Ltd. 20% 6. TAXATION (Continued) 3. Major taxes and tax rates (Continued) Particulars of tax paying entities using different enterprise income tax rates (Continued)
Page 47
– 47 – 46 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES Name of taxable entities Income tax rate Hefei Xinguan Energy Development Co., Ltd. 20% Shenzhen Baoan Dongjiang Environmental Renewable Energy Co., Ltd. 20% Huizhou Dongjiang Logistic Co., Ltd. 20% Longyan Oasis Environmental Technology Co., Ltd. 20% Shenzhen Dongjiang Kaida Transport Co., Ltd. 20% Zhuhai Dongjiang Kaian Transportation Co., Ltd. 20% Guangdong Dongjiang Energy Saving Equipment Services Co., Ltd 20% Hunan Dongjiang Environmental Protection Investment Development Ltd. 25% Chengdu Hazardous Waste Treatment Centre Co., Ltd 25% Shenzhen Dongjiang Renewable Energy Co., Ltd. 25% Dongjiang Environmental (HK) Ltd. 16.50% Nantong Dongjiang Environmental Technology Co., Ltd 25% Yancheng Coastal Solid Waste Disposal Co., Ltd. 15% Xiamen Dongjiang Environmental Technology Co., Ltd. 25% Xinjiang Dongjiang Resource Recycling Co., Ltd. 25% 6. TAXATION (Continued) 3. Major taxes and tax rates (Continued) Particulars of tax paying entities using different enterprise income tax rates (Continued)
Page 48
– 48 – 47INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES Name of taxable entities Income tax rate Shenzhen Hengjian Tongda Investment Management Co., Ltd. 25% Hubei Tianyin Circulation Economic Development Co., Ltd. 25% Hubei Tianyin Hazardous Waste Centralized Disposal Co., Ltd. 25% Dongjiang Vehicle Resources Recycling (Hubei) Co., Ltd. 25% Xiantao Lvyi Environmental Technology Co., Ltd. 25% Hengshui Ruitao Environmental Technology Co., Ltd. 25% Jiangsu Dongheng Environmental Holdings Co., Ltd. 25% Shenzhen Qianhai Dongjiang Environment Technology Service Co., Ltd. 25% Weifang Dongjiang Environmental Blue Sea Environmental Protection Co., Ltd. 25% Mianyang Dongjiang Environmental Technology Co., Ltd. 25% Jieyang Dongjiang Guoye EnvironmentalProtection Technology Co., Ltd. 25% Zhuhai Dongjiang Environment Technology Co., Ltd. 25% Guangdong Elephant Logistics Technology Co., Ltd. 25% Dongjiang Baiyi (Xiamen) Technology Co., Ltd. 25% Wuhan Shenju Technology Co., Ltd. 25% 6. TAXATION (Continued) 3. Major taxes and tax rates (Continued) Particulars of tax paying entities using different enterprise income tax rates (Continued)
Page 49
– 49 – 48 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 6. TAXATION (Continued) 4. Tax incentives 1. Enterprise Income tax (1) According to Article 27 of the Enterprise Income Tax Law of the People’s Republic of China, enterprises that engage in environmental protection and energy saving and water saving projects which meet certain requirements enjoy full EIT exemption from the first year (that is the tax year in which the project generates revenue from production and business operation for the first time) to the third year, and 50% EIT reduction from the fourth year to the sixth year. In particular: Ǻ Nanping Oasis High-Temperature Steaming Project enjoyed full EIT exemption from 2024 to 2026 and 50% EIT reduction from 2027 to 2029; ǻ Materialization project and landfill project of Fujian Oasis enjoyed full EIT exemption from 2021 to 2023 and 50% EIT reduction from 2024 to 2026; Ǽ Jiangsu Dongjiang Rigid Landfill enjoyed full EIT exemption from 2021 to 2023 and 50% EIT reduction from 2024 to 2026. (2) According to Article 33 of the Enterprise Income Tax Law of the People’s Republic of China, only 90% of the revenue of an enterprise generated from production of products that are not restricted and prohibited by the state and meet the relevant national and industrial standards and of which the main raw materials are the resources specified in the Enterprise Income Tax Preferential Catalogue for Resource Comprehensive Utilization is included in the total revenue. Huizhou Dongjiang, Kunshan Purification, Jiangmen Dongjiang, Qingyuan Xinlv, Jiaxing Deda, Xiamen Oasis, Jiangxi Dongjiang, Baoan Dongjiang and Xiongfeng Environment are entitled to the incentive.
Page 50
– 50 – 49INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 6. TAXATION (Continued) 4. Tax incentives (Continued) 1. Enterprise Income tax (Continued) (3) According to the Announcement of Ministry of Finance, State Administration of Taxation, Ministry of Ecology and Environment and National Development and Reform Commission in relation to the Corporate Income Tax Issues on Third-Party Enterprises Engaging in Pollution Prevention and Control (Caishui [2023] No. 38 of Ministry of Finance, State Administration of Taxation, Ministry of Ecology and Environment and National Development and Reform Commissioning), third-party enterprises engaging in pollution prevention and control which meet the conditions are entitled to 15% EIT tax rate for a term from 1 January 2024 to 31 December 2027. Humen Lvyuan, Xiantao Dongjiang, Jingzhou Dongjiang and Foshan Fulong are qualified as enterprises engaged in pollution prevention and control, and enjoy this incentive in 2026. (4) According to Article 28 of the Enterprise Income Tax Law of the People’s Republic of China, Dongjiang Environmental, Longgang Dongjiang, Huizhou Dongjiang, Huabao Technology, Huateng Zhike, Shaoguan Dongjiang, Dongguan Hengjian, Fujian Oasis, Wosen Environmental, Jiangxi Dongjiang, Zhuhai Yongxingsheng, Baoan Dongjiang, Tangshan Wandesi, Foshan Fulong, Xiongfeng Environment and Coastal Solid Waste are entitled to tax incentive as new and high technology enterprises, and enjoy 15% EIT tax rate. (5) According to Article 3 of the Announcement of the Ministry of Finance and the State Taxation Administration on Relevant Tax Policies for Further Supporting the Development of Small and Micro – sized Enterprises and Individual Industrial and Commercial Households (Announcement No. 12 of 2023 by the Ministry of Finance and the State Taxation Administration) ( ৌ Ϟᗫ ʮѓ(ਕᐼ҅ʮ2023ϋୋ12 )), only 25% of the taxable income of small and micro – profitable enterprises is included in the taxable income and they enjoy a 20% corporate income tax rate, which shall be extended until 31 December 2027.
Page 51
– 51 – 50 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 6. TAXATION (Continued) 4. Tax incentives (Continued) 1. Enterprise Income tax (Continued) Dongjiang Feeds, Yunnan Dongjiang, Port and Shipping Logistics, Qingdao Dongjiang, Huateng Zhike, Nanchang Energy, Hefei Energy, Baoan Energy, Dongjiang Logistics, Longyan Oasis, Nanping Oasis, Dongjiang Kaida, Kaian Transportation and Dongjiang Energy Saving all being subsidiaries of the Company, qualified as small and micro-profit enterprises, and are entitled to the incentive in 2026. 2. Value Added Tax (1) Pursuant to the “Catalogue of Preferential VAT Treatment for Products and Labor Services Involving Comprehensive Utilization of Sources” (2022 Revision) in the Announcement on Improving the VAT Policies for the Resource Comprehensive Utilizations (2021 Announcement No. 40 of the Ministry of Finance and the State Administration of Taxation): Ǻ Revenue from power generation with biogas produced in the course of waste fermentation qualifies for tax incentive of refund of 100% VAT upon collection, and Renewable Energy, Nanchang Energy, Hefei Energy and Baoan Energy are entitled to the incentive; ǻ Revenue from garbage treatment, sludge treatment and disposal services qualifies for tax incentive of refund of 70% VAT upon collection, and Dongjiang Environmental, Nantong Dongjiang, Jiaxing Deda, Wosen Environmental, Jiangxi Dongjiang, Jiangsu Dongjiang, Hengshui Ruitao, Baoan Dongjiang and Huaxin Environmental are entitled to the incentive; Ǽ Revenue from wastewater treatment services qualifies for tax incentive of refund of 70% VAT upon collection, and Huizhou Dongjiang, Qianhai Dongjiang and Xiantao Dongjiang are entitled to the incentive;
Page 52
– 52 – 51INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 6. TAXATION (Continued) 4. Tax incentives (Continued) 2. Value Added Tax (Continued) (1) (Continued) ǽ Wastewater treatment services qualify for VAT exemption under tax incentive policies, and Humen Lvyuan and Jingzhou Dongjiang are entitled to the incentive; Ǿ Revenue from production and sales of resource comprehensive utilization products qualifies for tax incentive of refund of 30% VAT upon collection, and Huizhou Dongjiang, Qingyuan Xinlv, Jiaxing Deda, Xiamen Oasis, Jiangxi Dongjiang, Baoan Dongjiang and Xiongfeng Environment are entitled to the incentive. (2) According to the Notice on the Tax Policy of Platinum and Its Products (Caishui [2003] No. 86)* (݁ ( ৌ [2003]86 )), domestic platinum-producing companies are entitled to tax incentives of refund of 100% VAT upon collection for revenue from self-production and self-sale. Xiongfeng Environment is a domestic platinum-producing enterprise, and enjoys this incentive. (3) According to the Announcement on the Policy of Granting Additional Deduction On Input Tax of VAT For Advanced Manufacturing Enterprises (2023 Announcement No. 43 of the Ministry of Finance and the State Administration of Taxation) (ʮѓ(݁ ਕᐼ҅ʮѓ2023ϋୋ43 )), advanced manufacturing enterprises are allowed 5% additional deduction of input tax of VAT in the current period from 1 January 2023 to 31 December 2027. Huizhou Dongjiang, Dongguan Hengjian and Xiongfeng Environment enjoy the above-mentioned incentive of additional deduction on input tax of VAT.
Page 53
– 53 – 52 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 7. LOSS PER SHARE The calculation of the basic loss per share for the Reporting Period is based on the loss attributable to the ordinary equity holders of the Company of approximately RMB 268,435,348.23 (for the six months ended 30 June 2025: loss of RMB278,177,080.22) and the weighted average number of 1,105,255,802 shares (for the six months ended 30 June 2025: 1,105,255,802 shares) in issue during the Period. The Group has no potentially dilutive ordinary shares in issue during the Reporting Period and prior periods, therefore, the diluted (loss) earnings per share is the same as basic (loss) earnings per share for the periods presented. 8. DIVIDEND The Board did not recommend the declaration of an interim dividend for the six months ended 30 June 2026 (for the six months ended 30 June 2025: Nil). 9. OTHER INCOME Source of other income Amount of the period Amount of last period Government grants 12,624,023.73 15,551,224.04 Additional deduction of Input VAT 80,433.99 1,313,864.51 Refund of individual income tax fee 36,686.78 52,349.88 Total 12,741,144.50 16,917,438.43
Page 54
– 54 – 53INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 10. CASH AND CASH EQUIVALENTS Item Balance at the end of the period Balance at the beginning of the period Cash on hand 0.00 25,000.00 Bank deposits 647,356,593.90 767,612,170.71 Other monetary fund 15,983,108.79 98,976,376.33 Deposit placed with financial company 356,333,651.86 340,055,400.27 Total 1,019,673,354.55 1,206,668,947.31 Including: B ank deposits readily available for payments 1,003,176,144.10 1,099,847,837.30 Restricted cash and cash equivalents 16,497,210.45 106,796,110.01 11. OTHER RECEIVABLES As at 30 June 2026 As at 31 December 2025 Trade receivables 841,454,022.97 925,431,521.87 Less: P rovision for bad debts of trade receivables 171,028,540.76 179,543,631.57 670,425,482.21 745,887,890.30 Notes receivables 48,715,615.49 64,181,747.29 Including: Within 180 days 48,715,615.49 64,181,747.29 Less: Provision for notes receivables 52,066.45 21,500.22 Receivable financing 15,825,498.12 18,059,053.26 Prepayments 123,207,379.57 121,744,957.40 Other receivables 300,968,021.32 310,560,488.34 Less: Provision for bad debts of other receivables 87,017,025.25 87,579,948.41 Non-current asset due within 1 year 9,161,805.65 9,161,805.65 Non-current asset due within 1 year Total 1,081,234,710.66 1,181,994,493.61
Page 55
– 55 – 54 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 11. OTHER RECEIVABLES (Continued) Prior to the acceptance of new customers, the Group applies internal credit assessment policies to assess the credit quality of potential customers and formulates credit limit. Apart from requiring new customers to pay in advance, the Group formulates different credit policies for different customers. The credit period is generally three months, and can be extended to six months for major customers. Regarding sales, the Group recognizes trade receivable and operating revenue at the time point of outbound and acceptance of products, when calculation of the ages of the account begins. The Group does not hold any collateral over trade receivables. Ageing analysis of trade receivable, presented based on the recognition date is as follows: As at 30 June 2026 As at 31 December 2025 Aged Within 1 year 365,879,978.86 389,446,499.13 1 to 2 years 74,968,489.26 109,186,096.94 2 to 3 years 98,215,508.14 103,441,058.73 Over 3 years 302,390,046.71 323,357,867.07 Total 841,454,022.97 925,431,521.87
Page 56
– 56 – 55INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 12. INVENTORIES (1) Classification of inventories Balance at the end of the period Balance at the beginning of the period Item Book balance Provision for value reduction of inventories or impairment provision of contract performance costs Carrying amount Book balance Provision for value reduction of inventories or impairment provision of contract performance costs Carrying amount Raw materials 355,592,758.99 13,814,793.74 341,777,965.25 376,145,813.46 11,073,914.88 365,071,898.58 Work-in progress 135,048,190.06 16,585,732.17 118,462,457.89 144,838,065.96 110,113.67 144,727,952.29 Goods in stock 168,792,426.51 4,264,913.51 164,527,513.00 107,439,362.33 4,152,422.98 103,286,939.35 Contract performance cost 2,389,149.26 0.00 2,389,149.26 1,368,739.56 0.00 1,368,739.56 Goods in transit 12,239,264.71 0.00 12,239,264.71 21,561,560.50 396.00 21,561,164.50 Low-valued consumables 7,701,546.19 4,652,875.79 3,048,670.40 7,990,443.93 4,689,114.18 3,301,329.75 Total 681,763,335.72 39,318,315.21 642,445,020.51 659,343,985.74 20,025,961.71 639,318,024.03
Page 57
– 57 – 56 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 12. INVENTORIES (Continued) (2) Provision for value reduction and impairment provision of contract performance costs Item Balance at the beginning of the period Increase in the period Decrease in the period Balance at the end of the periodProvided Reversal or transfer Raw materials 11,073,914.88 3,220,524.46 479,645.60 13,814,793.74 Work-in progress 110,113.67 16,585,732.17 110,113.67 16,585,732.17 Goods in stock 4,152,422.98 199,674.21 87,183.68 4,264,913.51 Contract performance cost 0.00 0.00 0.00 0.00 Goods in transit 396.00 0.00 396.00 0.00 Low-valued consumables 4,689,114.18 0.00 36,238.39 4,652,875.79 Total 20,025,961.71 20,005,930.84 713,577.34 39,318,315.21 The balance of inventory at the end of the period excludes the capitalised amount of borrowing costs. 13. INVESTMENT IN OTHER EQUITY INSTRUMENTS Item Balance at the beginning of the period Gains recognised in other comprehensive income during the period Loss recognised in other comprehensive income during the period Cumulative gains recognised in other comprehensive income at the end of the period Cumulative loss recognised in other comprehensive income at the end of the period Dividend income recognised during the period Balance at the end of the period Reasons for designation as at fair value through other comprehensive income Yongxing SRCB Rural Bank Co., Ltd. 4,242,896.51 2,242,896.51 4,242,896.51 Long-term holding for strategic purpose Guangdong Embodiment Intelligence Technology Co., Ltd. 8,000,000.00 Long-term holding for strategic purpose Total 4,242,896.51 2,242,896.51 12,242,896.51
Page 58
– 58 – 57INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 14. LONG-TERM EQUITY INVESTMENTS Change during the period Balance (carrying amount) at the end of the periodInvestee Balance (carrying amount) at the beginning of the period Impairment provision at the beginning of the period Increase in investments Decrease in investments Gain and loss of investment recognised under equity approach Adjustments to other comprehensive income Change in other equity interests Cash dividend or profit declared or paid Impairment provision Others Impairment provision at the end of the period I. Joint venture Huizhou Dongjiang Veolia Environmental services Limited 88,872,927.57 -5,307,603.37 83,565,324.20 Dongjiang Chongmingniao Digital Technology (Guangdong) Co., Ltd. 2,249,860.30 -6,252.11 2,243,608.19 Dongjiang Baiyi (Xiamen) Technology Co., Ltd. 5,377,558.45 -1,414,956.30 3,962,602.15 0.00 Sub-total 96,500,346.32 -6,728,811.78 3,962,602.15 85,808,932.39 II. Associates Fujian Xingye Dongjiang Environmental Technology Co., Ltd. 76,549,212.75 649,856.65 77,199,069.40 ALBA Rising Green Fuel (Jieyang) Ltd. 63,719,177.10 -1,617,668.54 62,101,508.56 Jieyang Guangye Environmental Protection Energy Co., Ltd. 32,464,928.90 3,042,025.20 3,236,376.23 38,743,330.33 Dongguan Fengye Solid Waste Treatment Co., Ltd. 6,588,476.04 3,321,014.65 -848,215.00 5,740,261.04 3,321,014.65 Jieyang Guangye Environmental Technology Co., Ltd. 3,496,642.90 58,100.81 3,554,743.71 Guangdong Zihuan Investment Group Co., Ltd. 2,016,982.69 -567,969.95 1,449,012.74 Jieyang Guangye New Energy Environmental Protection Co., Ltd. 2,978,989.82 167,760.57 3,146,750.39 Jieyang Guangye Biotechnology Co., Ltd. 1,400,110.40 1,400,110.40 Shenzhen Resource Environmental Technology Company Limited 190,212.79 0.00 190,212.79 Zhenjiang Yongfurun Technology Co., Ltd. 200,000.00 200,000.00 Sub-total 189,414,520.60 3,511,227.44 3,042,025.20 1,078,240.77 193,534,786.57 3,511,227.44 Total 285,914,866.92 3,511,227.44 3,042,025.20 -5,650,571.01 3,962,602.15 279,343,718.96 3,511,227.44
Page 59
– 59 – 58 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 15. INVESTMENT PROPERTIES Investment properties measured at fair value Item Buildings and structures Total I. Balance at the beginning of the period 420,310,035.00 420,310,035.00 II. Movement in the current period Add: Purchase Transfer from inventories/ fixed assets/construction in progress Increase from business combination Less: Disposal Transfer to others Changes in fair value III. Balance at the end of the period 420,310,035.00 420,310,035.00 Other explanation 1. The fair value of buildings and structures includes the value of land use right attributable to rented buildings and structures. 2. As of the end of the period, none of properties of the Company is without title certificates. 16. FIXED ASSETS Item Balance at the end of the period Balance at the beginning of the period Fixed assets 4,022,390,233.42 4,282,996,525.15 Total 4,022,390,233.42 4,282,996,525.15
Page 60
– 60 – 59INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 16. FIXED ASSETS Details of fixed assets: Item Buildings and structures Plant and machinery Office equipment Transportation equipment Others Total I. Original carrying amount: 1. Balance at the beginning of the period 3,995,125,910.41 2,930,683,100.95 131,600,714.56 116,639,161.61 1,087,831,570.74 8,261,880,458.27 2. Increase in the period 0.00 5,029,546.71 1,206,270.82 1,586,248.06 1,860,182.80 9,682,248.39 (1) Purchase 0.00 4,456,095.38 1,092,111.52 1,586,248.06 1,041,214.88 8,175,669.84 (2) Transfer from construction in progress 0.00 573,451.33 114,159.30 0.00 818,967.92 1,506,578.55 (3) Increase from business combination 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3. Decrease in the period 18,803.42 16,491,742.80 3,724,255.78 1,286,752.43 1,778,634.98 23,300,189.41 (1) Disposal or retirement 18,803.42 11,447,618.28 2,527,844.27 1,286,752.43 1,590,410.19 16,871,428.59 (2) Transfer to construction in progress 0.00 0.00 0.00 0.00 0.00 0.00 (3) Others 0.00 5,044,124.52 1,196,411.51 0.00 188,224.79 6,428,760.82 4. Balance at the end of the period 3,995,107,106.99 2,919,220,904.86 129,082,729.60 116,938,657.24 1,087,913,118.56 8,248,262,517.25 II. Accumulated depreciation 1. Balance at the beginning of the period 1,178,447,640.71 1,839,496,027.80 110,849,663.10 79,450,804.02 664,989,104.08 3,873,233,239.71 2. Increase in the period 97,584,920.27 111,993,648.55 3,103,450.92 5,747,465.66 44,176,371.57 262,605,856.97 (1) Provision 97,584,920.27 111,993,648.55 3,103,450.92 5,747,465.66 44,176,371.57 262,605,856.97 3. Decrease in the period 18,239.32 10,371,347.25 2,438,552.97 1,248,149.86 1,461,727.50 15,538,016.90 (1) Disposal or retirement 18,239.32 10,371,347.25 2,438,552.97 1,248,149.86 1,461,727.50 15,538,016.90 4. Balance at the end of the period 1,276,014,321.66 1,941,118,329.10 111,514,561.05 83,950,119.82 707,703,748.15 4,120,301,079.78 III. Impairment provision 0.00 0.00 0.00 0.00 0.00 0.00 1. Balance at the beginning of the period 89,617,157.04 14,981,818.39 581,105.45 262,347.19 208,265.34 105,650,693.41 2. Increase in the period (1) Provision 3. Decrease in the period 0.00 0.00 0.00 0.00 79,489.36 79,489.36 (1) Disposal or retirement 0.00 0.00 0.00 0.00 79,489.36 79,489.36 4. Balance at the end of the period 89,617,157.04 14,981,818.39 581,105.45 262,347.19 128,775.98 105,571,204.05 IV. Carrying amount 0.00 0.00 0.00 0.00 1. Carrying amount at the end of the period 2,629,475,628.29 963,120,757.37 16,987,063.10 32,726,190.23 380,080,594.43 4,022,390,233.42 2. Carrying amount at the beginning of the period 2,727,061,112.66 1,076,205,254.76 20,169,946.01 36,926,010.40 422,634,201.32 4,282,996,525.15
Page 61
– 61 – 60 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 17. INTANGIBLE ASSETS Item Land use right Patent Non-patent technology Concession rights Emission rights Total I. Original carrying amount 1. Balance at the beginning of the period 889,160,116.86 21,579,015.71 75,930,593.45 1,156,633,629.19 10,849,900.20 2,154,153,255.41 2. Increase in the period 0.00 0.00 210,619.47 3,817,948.09 0.00 4,028,567.56 (1) Purchase 0.00 0.00 210,619.47 3,817,948.09 0.00 4,028,567.56 (2) Internal research and development (3) Increase from business combination 3. Decrease in the period 0.00 0.00 9,200.00 0.00 0.00 9,200.00 (1) Disposal 0.00 0.00 9,200.00 0.00 0.00 9,200.00 4. Balance at the end of the period 889,160,116.86 21,579,015.71 76,132,012.92 1,160,451,577.28 10,849,900.20 2,158,172,622.97 II. Accumulated amortization 1. Balance at the beginning of the period 162,265,414.94 8,511,020.84 55,570,450.99 624,340,893.30 7,637,165.44 858,324,945.51 2. Increase in the period 7,037,083.77 1,024,991.49 3,254,529.57 23,423,475.39 1,176,071.37 35,916,151.59 (1) Provision 7,037,083.77 1,024,991.49 3,254,529.57 23,423,475.39 1,176,071.37 35,916,151.59 3. Decrease in the period 0.00 0.00 9,200.00 0.00 0.00 9,200.00 (1) Disposal 0.00 0.00 9,200.00 0.00 0.00 9,200.00 4. Balance at the end of the period 169,302,498.71 9,536,012.33 58,815,780.56 647,764,368.69 8,813,236.81 894,231,897.10 III. Impairment provision 1. Balance at the beginning of the period 2,825,305.90 0.00 0.00 55,934,532.23 0.00 58,759,838.13 2. Increase in the period (1) Provision 3. Decrease in the period (1) Disposal 4. Balance at the end of the period 2,825,305.90 0.00 0.00 55,934,532.23 0.00 58,759,838.13 IV. Carrying amount 1. Carrying amount at the end of the period 717,032,312.25 12,043,003.38 17,316,232.36 456,752,676.36 2,036,663.39 1,205,180,887.74 2. Carrying amount at the beginning of the period 724,069,396.02 13,067,994.87 20,360,142.46 476,358,203.66 3,212,734.76 1,237,068,471.77
Page 62
– 62 – 61INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 18. OTHER ACCOUNTS PAYABLE The following is an ageing analysis of trade payables at the end of the Reporting Period, based on recognition date: As at 30 June 2026 As at 31 December 2025 Aged Within 90 days 206,881,695.39 315,054,202.83 91 to 180 days 33,704,867.63 17,243,175.26 181 to 365 days 51,156,437.89 40,779,073.35 Over 1 year 128,280,501.48 147,941,816.79 Trade payables 420,023,502.39 521,018,268.23 Notes payable 20,000,000.00 0.00 Including: Within 180 days 20,000,000.00 0.00 Receipts in advance 1,334,831.95 834,893.77 Other payables 191,251,389.52 304,137,151.63 Total 632,609,723.86 825,990,313.63
Page 63
– 63 – 62 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 19. SHORT-TERM BORROWINGS Item Balance at the end of the period Balance at the beginning of the period Pledged borrowings 106,503,420.19 179,650,000.00 Guaranteed borrowings 123,900,000.00 317,349,861.28 Credit borrowings 1,486,756,229.89 1,113,946,748.98 Discounted bills 1,803,114.59 36,847,675.70 Accrued interest on loans and interest adjustment 24,511.66 934,933.97 Total 1,718,987,276.33 1,648,729,219.93 At the end of this period, the Company had no overdue outstanding short-term borrowings. 20. LONG-TERM BORROWINGS Item Balance at the end of the period Balance at the beginning of the period Pledged loan 25,415,625.00 35,581,875.00 Pledged borrowings 748,830,008.29 586,480,008.29 Guaranteed borrowings 23,770,438.77 31,453,378.89 Credit borrowings 1,326,675,000.00 1,584,800,000.00 Guaranteed & mortgaged loan 251,827,936.98 287,827,936.98 Guaranteed & mortgaged & pledged loan 249,749,992.85 252,749,992.85 Long-term loans due within one year -984,187,938.77 -1,480,455,884.35 Total 1,642,081,063.12 1,298,437,307.66 The interest rate of long-term loans ranges from 2.3% to 3.9%.
Page 64
– 64 – 63INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 21. LONG-TERM ACCOUNTS PAYABLE Item Balance at the end of the period Balance at the beginning of the period Long-term accounts payable 104,047,301.07 136,234,058.23 Total 104,047,301.07 136,234,058.23 Long-term accounts payable by nature Item Balance at the end of the period Balance at the beginning of the period Finance lease payables 168,598,076.67 200,147,777.77 Less: L ong-term accounts payable due within one year 64,550,775.60 63,913,719.54 Total 104,047,301.07 136,234,058.23
Page 65
– 65 – 64 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 22. BONDS PAYABLE (1) Bonds payable Item Balance at the end of the period Balance at the beginning of the period First Tranche of Medium-term Notes in 2024 of Dongjiang Environmental Company Limited (24 Dongjiang Environmental MTN001) 508,339,192.00 501,305,893.74 First Tranche of Medium-term Notes in 2025 of Dongjiang Environmental Company Limited (25 Dongjiang Environmental MTN001) 402,595,606.87 407,840,860.91 Total 910,934,798.87 909,146,754.65 (2) Increase or decrease in bond payables (excluding other financial instruments such as preferred shares and perpetual bonds classified as financial liabilities) Bond name Par value Coupon rate Issue date Term of bond Issued amount Balance at the beginning of the period Issued during the period Interest provision based on par value Premium/ discount amortization Repayment during the period Balance at the end of the period Default or not First Tranche of Medium-term Notes in 2024 of Dongjiang Environmental Company Limited (24 Dongjiang Environmental MTN001) 500,000,000.00 2.77% 20 November 2024 2+1 500,000,000.00 501,305,893.74 0.00 6,868,083.01 165,215.25 508,339,192.00 No First Tranche of Medium-term Notes in 2025 of Dongjiang Environmental Company Limited (25 Dongjiang Environmental MTN001) 400,000,000.00 2.66% 28 March 2025 2+1 400,000,000.00 407,840,860.91 0.00 5,276,273.08 118,472.88 10,640,000.00 402,595,606.87 No Total 900,000,000.00 909,146,754.65 12,144,356.09 283,688.13 10,640,000.00 910,934,798.87
Page 66
– 66 – 65INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 23. NET CURRENT ASSETS As at 30 June 2026 As at 31 December 2025 Current assets 2,837,080,888.73 3,129,186,225.07 Less: Current liabilities 3,702,405,816.06 4,287,127,095.97 Net current assets -865,324,927.33 -1,157,940,870.90 24. TOTAL ASSETS LESS CURRENT LIABILITIES As at 30 June 2026 As at 31 December 2025 Total assets 9,327,453,785.76 9,907,627,901.02 Less: Current liabilities 3,702,405,816.06 4,287,127,095.97 Total assets less current liabilities 5,625,047,969.70 5,620,500,805.05
Page 67
– 67 – 66 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 25. LEASES (1) Assets leased from the Company The rental income from lands and buildings (net of government rent, rates and other expenditure) for the current period was RMB5,607,775.80 (same period of last year: RMB5,684,646.06). As at the end of the Period, the Company as a lessor had minimum future rent receivable under non-cancellable operating leases in respect of leased office and plants properties in the following periods summarized as follows: Period As at 30 June 2026 As at 30 June 2025 Within one year 11,238,873.56 10,894,111.22 1 to 2 years 10,774,023.13 9,126,505.20 Total 22,012,896.69 20,020,616.42 (2) Assets leased to the Company The Company as a Lessee Type Amount Short-term lease expense included in current profit or loss 3,133,996.72 Lease expense of low value assets Variable lease payments not included in the lease liability measurement Income from sublease of right-of-use assets Total cash outflow related to leases 6,134,400.63 Gain or loss from sales and leaseback transactions
Page 68
– 68 – 67INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 26. DISCLOSURE OF FAIR VALUE 1. Fair value of assets and liabilities measured at fair value at the end of the period Fair value at the end of the period Item Level 1 fair value measurement Level 2 fair value measurement Level 3 fair value measurement Total I. Continuous fair value measurement – – – – (ii) Receivable financing 15,825,498.12 15,825,498.12 (1) Notes receivable 15,825,498.12 15,825,498.12 (ii) Other debt investments 12,242,896.51 12,242,896.51 (iv) Investment properties 420,310,035.00 420,310,035.00 2. Leased buildings 420,310,035.00 420,310,035.00 Total assets with continuous fair value measurement 15,825,498.12 432,552,931.51 448,378,429.63 (vi) Held-for-trading financial liabilities 11,620,363.97 11,620,363.97 Derivative financial liabilities 11,620,363.97 11,620,363.97 Total liabilities with continuous fair value measurement 11,620,363.97 11,620,363.97 II. Not continuous fair value measurement – – – –
Page 69
– 69 – 68 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 26. DISCLOSURE OF FAIR VALUE (Continued) 2. Qualitative and quantitative information on valuation technique and important parameters used for continuous and not continuous level 2 fair value measurement items For receivable financing, the Company uses the present value of cash flows method to determine its fair value, which approximates the carrying amount. For derivative financial liabilities, the Company uses the discounted cash flow valuation technique based on observable market data, and the market prices of the fair value items are derived from the fair value report of banks. 3. Qualitative and quantitative information on valuation technique and important parameters used for continuous and not continuous level 3 fair value measurement items For investment in other equity instruments, the Company regards the investment cost and the operating results of the invested enterprise as a reasonable estimate of fair value in measurement because the operating environment, operating conditions and financial status of the investee have not changed substantially. For investment properties, the Company entrusts an external appraiser to evaluate its fair value. The methods adopted mainly include rental income mode and cost approach. The inputs used mainly include rental growth rate, capitalisation rate and unit price. 4. Fair value of financial assets and financial liabilities not measured at fair value The Company’s financial assets and liabilities measured at amortized cost mainly include: accounts receivable, loans, accounts payable, bond payables, etc. As at 30 June 2026, there was no significant difference between the carrying amount and fair value of the above financial assets and financial liabilities.
Page 70
– 70 – 69INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 27. CHANGES IN SCOPE OF CONSOLIDATION Compared with the beginning of the year, two consolidated entities were newly added for other reasons, and one consolidated entity was deconsolidated due to the deregistration of a subsidiary during the current period: (1) In April 2026, Huateng Zhike, a subsidiary of the Company, established a wholly-owned subsidiary, Wuhan Shenju Technology Co., Ltd., with a registered capital of RMB10 million. (2) In June 2026, Qianhai Dongjiang, a subsidiary of the Company, entered into a supplemental agreement with the minority shareholder of Dongjiang Baiyi (Xiamen) Technology Co., Ltd., a joint venture, to adjust the decision-making mechanism such that major operational decisions require the consent of more than half of the board members. As the number of board members appointed by the Company reached more than two-thirds, enabling it to independently control board decisions, the joint venture was included in the scope of consolidation. The registered capital of this company is RMB10 million, of which Qianhai Dongjiang’s subscribed contribution accounted for 51% of the registered capital. (3) In January 2026, Sanming Oasis Environmental Technology Co., Ltd., a wholly-owned subsidiary of Xiamen Dongjiang, a subsidiary of the Company, completed its deregistration procedures.
Page 71
– 71 – 70 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 28. COMMITMENTS AND CONTINGENCIES (1) Important commitments Item Balance at the end of the period Balance at the beginning of the period – Large amount outsourcing contract 22,950,882.20 63,457,973.59 – Commitment to purchase and build long-term assets 6,946,340.00 16,172,858.76 – Commitments to external investment 40,704,111.64 40,976,136.84 Total 70,601,333.84 120,606,969.19 (2) Contingencies 1. Cancellation of concession in Shaoyang, Hunan Province On 27 February 2008, Shaoyang Municipal People’s Government and its authorized unit Shaoyang Municipal Administration and Law Enforcement Bureau (whose name is changed to “Shaoyang Municipal Administration and Comprehensive Law Enforcement Bureau”, hereinafter referred to as “Shaoyang Urban Management Bureau”) as Party A signed the Shaoyang Municipal Domestic Waste Sanitary Landfill Construction and Concession Contract (the “Concession Contract”) with Dongjiang Environmental and its authorized unit Hunan Dongjiang as Party B. It was agreed that Party A would grant Party B the Concession of Shaoyang Municipal Domestic Waste Sanitary Landfill for a period of 30 years from June 2011 to June 2041, counting from the opening date of the landfill.
Page 72
– 72 – 71INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 28. COMMITMENTS AND CONTINGENCIES (Continued) (2) Contingencies (Continued) 1. Cancellation of concession in Shaoyang, Hunan Province (Continued) During the process of the implementation of Concession Contract, Shaoyang’s domestic garbage was converted from landfill to incineration due to policy changes. On 29 February 2024, Shaoyang Municipal People’s Government served a letter to Dongjiang Environmental Protection, revoking the Concession Contract and recovering the concession on the grounds of major public interests such as energy saving and emission reduction. The Company negotiated with the Shaoyang Municipal People’s Government regarding compensation for the government’s unilateral termination of the contract. On 18 April 2024, the transfer of assets and operational maintenance responsibilities for the Shaoyang Municipal Domestic Waste Sanitary Landfill and its leachate treatment facilities was completed. As multiple rounds of negotiations between the two parties failed to reach an agreement after the transfer, on 29 September 2024, the Company initiated an administrative lawsuit, demanding that the Shaoyang Municipal People’s Government pay the project investment amount and other related costs. The case was heard in court on 21 November 2024. The Company received the Administrative Judgment ((2024) Xiang 05 Xing Chu No. 125) from the Shaoyang Intermediate People’s Court. The main contents of the first-instance judgment are as follows: (1) The defendant, Shaoyang Municipal People’s Government, is ordered to make a compensation decision to the plaintiffs, Dongjiang Environmental Company Limited and Hunan Dongjiang Environmental Protection Investment Development Ltd., within 60 days from the effective date of this judgment; (2) The other claims of the plaintiffs, Dongjiang Environmental Company Limited and Hunan Dongjiang Environmental Protection Investment Development Ltd., are dismissed.
Page 73
– 73 – 72 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 28. COMMITMENTS AND CONTINGENCIES (Continued) (2) Contingencies (Continued) 1. Cancellation of concession in Shaoyang, Hunan Province (Continued) The Company, aggrieved by the first-instance judgment, filed an appeal with the Hunan Provincial Higher People’s Court. On 26 February 2026, the Company received the Administrative Judgment ((2025) Xiang Xing Zhong No. 1088) from the Hunan Provincial Higher People’s Court. The second-instance judgment is as follows: the appeal is dismissed, and the original judgment is upheld. As of the date of this report, the Company has received the Compensation Notice served by the Shaoyang Urban Management Bureau and has submitted its statements and defence arguments in response. 2. Progress on the Guarantee Litigation of Tangshan Wandesi On 24 December 2021, the Company convened the 15th meeting of the seventh session of the board of directors and approved the “Proposal on Providing Guarantee for the Bank Facility of a Non-wholly-owned Subsidiary”. To meet working capital requirements and reduce financing costs, Wandesi (Tangshan Caofeidian) Environmental Technology Co., Ltd (“Tangshan Wandesi”) applied for a comprehensive credit facility from HSBC Bank (China) Co., Ltd. Tangshan Branch (“HSBC”) with a limit not exceeding RMB200 million. The Company agreed to provide a joint liability guarantee for RMB160 million of such facility with a term not exceeding five years./uni00A0The other shareholders of Tangshan Wandesi, namely Nanjing Wandesi Environmental Protection Technology Co., Ltd. (hereinafter “Nanjing Wandesi”) and Guantuo Technology (Hebei) Co., Ltd. (“Guantuo Technology”), provided counter-guarantee measures by pledging their respective 16% and 4% equity interests in Tangshan Wandesi to the Company. The Company entered into Equity Pledge Agreements with Nanjing Wandesi and Guantuo Technology, respectively, completed the relevant equity pledge registration procedures, and obtained the “Notice of Registration of Equity Pledge” issued by the Tangshan Caofeidian District Administrative Approval Bureau. The Company issued a letter of guarantee to HSBC agreeing to provide a guarantee for Tangshan Wandesi, with a maximum debt amount of RMB160 million.
Page 74
– 74 – 73INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 28. COMMITMENTS AND CONTINGENCIES (Continued) (2) Contingencies (Continued) 2. Progress on the Guarantee Litigation of Tangshan Wandesi (Continued) In view of the continuous fierce competition in the hazardous waste industry, the collection and transportation of waste materials of Tangshan Wandesi after it was put into operation did not meet expectations. The disposal prices continued to decline and the capital turnover of production and operation was difficult. Tangshan Wandesi was unable to timely repay relevant funds to HSBC. In accordance with the relevant provisions of the Letter of Guarantee, the Company shall fulfill its guarantee subrogation obligations in the amount of RMB111.0977 million (comprising the loan principal of RMB110.3509 million and interest of RMB0.7468 million). The Company filed a lawsuit with the Tangshan Caofeidian District People’s Court against Nanjing Wandesi and Guantuo Technology as defendants, seeking a court order to auction or sell the equity interests registered under the “Notice of Registration of Equity Pledge” and requesting priority compensation from the proceeds of such auction or sale. The court accepted the case on 11 October 2025 under docket number (2025) Ji 0209 Min Chu No. 6191. As of the date of this report, no first-instance judgment has been issued in this case.
Page 75
– 75 – 74 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 28. COMMITMENTS AND CONTINGENCIES (Continued) (2) Contingencies (Continued) 3. Series of Cases Filed by Wosen Environmental against Hoshine Silicon Industry Co., Ltd. and Its Subsidiaries Wosen Environmental entered into Hazardous Waste Disposal Service Contracts with subsidiaries of Hoshine Silicon Industry Co., Ltd. (“Hoshine Silicon”) during the period from 2022 to 2024, including Hoshine Silicon (Shanshan) Co., Ltd. (“Shanshan Hoshine”), Xinjiang Western Hoshine Silicon Industry Co., Ltd. (“Western Hoshine”), Xinjiang Hoshine Silicon New Materials Co., Ltd. (“Hoshine Silicon New Materials”) and Xinjiang Central Hoshine Silicon Co., Ltd. (“Central Hoshine”). During the performance of the contracts, Wosen Environmental completed the disposal of the corresponding hazardous waste on multiple occasions as agreed. After both parties confirmed the completion, Wosen Environmental issued the relevant invoices to the counterparties, who were obliged to pay the corresponding amounts within 5/30 days of receiving the invoices. However, as of now, the counterparties have not made any payment. In view of the above, Wosen Environmental filed a lawsuit with the Urumqi Intermediate People’s Court against Hoshine Silicon, Shanshan Hoshine, Western Hoshine, Hoshine Silicon New Materials and Central Hoshine as defendants, seeking an order requiring Shanshan Hoshine, Western Hoshine, Hoshine Silicon New Materials and Central Hoshine to pay hazardous waste disposal fees, overdue interest, legal costs and other expenses, with Hoshine Silicon assuming joint and several liability. The total amount claimed is approximately RMB30.8888 million. As of the date of this report, the parties have reached a settlement.
Page 76
– 76 – 75INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 28. COMMITMENTS AND CONTINGENCIES (Continued) (2) Contingencies (Continued) 4. Progress on the Guarantee Subrogation of Mianyang Dongjiang On 9 July 2020, the Company convened the 54th meeting of the sixth session of the board of directors, which considered and approved the “Proposal on Providing Guarantee for Mianyang Dongjiang Environmental Technology Co., Ltd. in Connection with its Application for Bank Credit Facility”. To meet working capital needs and reduce financing costs, Mianyang Dongjiang applied for borrowings from the Mianyang Branch of Postal Savings Bank of China Co., Ltd. (the “PSBC Mianyang Branch”) in the principal amount of RMB246 million, with a term from 1 April 2021 to 25 March 2030. The Company provided a joint liability guarantee for the above borrowings. Sichuan Diwosi Environmental Protection Technology Co., Ltd. (“Diwosi”) and Mianyang Xinkeyuan Environmental Protection Technology Co., Ltd. (“Xinkeyuan”) provided counter-guarantee measures by pledging their respective 29.5% and 19.5% equity interests in Mianyang Dongjiang to the Company. Accordingly, the Company entered into counter-guarantee contracts with Diwosi and Xinkeyuan respectively, completed the relevant equity pledge registration procedures, and obtained the “Notice of Registration of Equity Pledge” issued by the Mianyang Fucheng District Administrative Approval Bureau. The Company entered into a joint liability guarantee contract with PSBC Mianyang Branch, agreeing to provide a joint liability guarantee for Mianyang Dongjiang for a term of nine years. In view of the continuous fierce competition in the hazardous waste industry, Mianyang Dongjiang’s operations after commissioning did not meet expectations,/uni00A0leading to difficulties in capital turnover of production and operation and its inability to timely repay relevant funds to PSBC Mianyang Branch. The Company has, in accordance with the relevant provisions of the joint liability guarantee contract, successively performed its guarantee subrogation obligations to PSBC Mianyang Branch, with an aggregate principal and interest amount of RMB84.882 million.
Page 77
– 77 – 76 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 28. COMMITMENTS AND CONTINGENCIES (Continued) (2) Contingencies (Continued) 4. Progress on the Guarantee Subrogation of Mianyang Dongjiang (Continued) The Company filed a lawsuit with the Sichuan Mianyang High-tech Industrial Development Zone People’s Court against Diwosi and Xinkeyuan as defendants, seeking a court ruling to confirm that the Company holds a pledge over the equity interests in Mianyang Dongjiang held by Diwosi and Xinkeyuan, and an order to auction or sell the equity interests registered under the “Notice of Registration of Equity Pledge” and requesting priority compensation from the proceeds of such auction or sale. The case is currently at the first-instance trial stage. Except for the above contingencies, as at 30 June 2026, the Company had no other major contingencies. 29. RELATED PARTIES TRANSACTIONS (1) Transactions for purchase of goods, provision and receipt of services Purchase of goods and accepting service from related parties Unit: RMB Related party Details of related party transactions January-June 2026 January-June 2025 (unaudited) (unaudited) Joint ventures Accepting service 305,554.27 818,201.04 Associates Accepting service 309,152.80 58,129.41 Other related parties Purchase of goods and accepting service 335,872.22 1,737,606.21 Total 950,579.29 2,613,936.66
Page 78
– 78 – 77INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 29. RELATED PARTIES TRANSACTIONS (Continued) (1) Transactions for purchase of goods, provision and receipt of services (Continued) Sales of goods and rendering of services to related parties Unit: RMB Related party Details of related party transactions January-June 2026 January-June 2025 (unaudited) (unaudited) Joint ventures Trademark Royalty and rendering of services 2,071,275.72 2,589,948.73 Associates Rendering of services 1,511,729.86 0.00 Other related parties Rendering of services 1,031,066.46 2,023,108.79 Total 4,614,072.04 4,613,057.52 (2) Guarantee status Unit: RMB Secured Party Associative relationship Guarantee amount Commencement date of guarantee Maturity date of guarantee Whether guarantee has been performed Mianyang Dongjiang Environmental Technology Co., Ltd. Subsidiary 246,000,000.00 1 April 2021 25 March 2030 No Foshan Fulong Environmental Protection Technology Co., Ltd. Subsidiary 160,497,000.00 18 March 2020 18 March 2030 No Xiamen Oasis Environmental Industrial Co., Ltd Subsidiary 80,000,000.00 27 June 2024 27 June 2027 No Fujian Xingye Dongjiang Environmental Technology Co., Ltd. Joint ventures 57,375,000.00 30 June 2021 15 September 2026 Yes Dongguan Fengye Solid Waste Treatment Co., Ltd. Joint ventures 44,000,000.00 15 October 2018 15 October 2033 Yes
Page 79
– 79 – 78 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 29. RELATED PARTIES TRANSACTIONS (Continued) (3) Key Management Compensation Unit: RMB For the six months ended 30 June 2026 For the six months ended 30 June 2025 Item (unaudited) (unaudited) Key Management Compensation 3,615,908.10 3,620,453.15 (4) Other related party transactions 1) Entering into the Financial Services Agreement with Guangdong Rising Finance Co., Ltd. On 24 December 2024, the third meeting of the eighth session of the board of directors of the Company considered and approved the Proposal on Entering into the New Financial Services Agreement and Related Party Transactions, which agreed the Company to enter into the Financial Services Agreement with Guangdong Rising Finance Co., Ltd. (“Rising Finance”), pursuant to which Rising Finance shall provide the Company (including its branches and subsidiaries) with deposits, settlements, credit facilities and other financial services as approved by the National Financial Regulatory Administration. In particular, during the validity period of the agreement, the maximum daily deposit balance of the Company placed with Rising Finance shall not exceed RMB550 million, within which the Company and Rising Finance shall carry out the relevant settlement services; at the same time, Rising Finance shall offer the Company (including its branches and subsidiaries) a comprehensive credit facility of up to RMB1.5 billion. As at 30 June 2026, the Company had a deposit balance of RMB356,333,651.86 with Rising Finance, and a loan balance of was RMB469,400,000.00 from Rising Finance based on actual capital requirements. The interest income from deposits with Rising Finance amounted to RMB364,078.67 and the interest expense from loans from Rising Finance amounted to RMB6,586,432.93 during the Reporting Period. For details, please refer to the Company’s announcement dated 24 December 2024.
Page 80
– 80 – 79INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 29. RELATED PARTIES TRANSACTIONS (Continued) (4) Other related party transactions (Continued) 2) Capital injection into Guangdong Embodiment Intelligence Technology Co., Ltd. by way of taking part in the public tender On 22 December 2025, the eleventh meeting of the eighth session of the board of directors of the Company considered and approved the Proposal on Capital Injection into Guangdong Embodiment Intelligence Technology Co., Ltd. by Way of Taking Part in the Public Tender and Related Party Transactions. In order to expand the Company’s business scope and capture opportunities in the artificial intelligence industry, the Company intends to inject capital in Guangdong Embodiment Intelligence Technology Co., Ltd. (“Embodiment Intelligence”) by way of taking part in the public tender, with a proposed investment of not more than RMB12 million to subscribe for no more than 4% of the equity interests in Embodiment Intelligence. Based on the final results of public tender, the Company invested RMB8 million and held 2.6666% of the shares of Embodiment Intelligence after its capital increase, and the Capital Injection Agreement/uni00A0was signed in February 2026. For details, please refer to the Company’s announcements dated 22 December 2025, 16 January 2026 and 3 February 2026. 3) Entering into the 2026 Framework Agreements with Guangdong Rising Holdings Group On 27 March 2026, the fourteenth meeting of the eighth session of the board of directors of the Company considered and approved the Proposal on Entering into the 2026 Framework Agreements and Progress on Related Party Transactions. To further leverage synergies, it was approved that the Company enter into the/uni00A0Product Sales Framework Agreement,/uni00A0the Service Framework Agreement/uni00A0and/uni00A0the Raw Materials Procurement Framework Agreement/uni00A0with Guangdong Rising Holdings Group within the expected categories and limits approved for routine related party transactions in 2026. The respective cap amounts under each agreement shall not exceed RMB40 million, RMB10 million and RMB100 million. For details, please refer to the Company’s announcements dated 22 December 2025 and 27 March 2026.
Page 81
– 81 – 80 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 UNAUDITED INTERIM FINANCIAL STATEMENT NOTES 29. RELATED PARTIES TRANSACTIONS (Continued) (4) Other related party transactions (Continued) 4) Participating in tender for project of related parties On 26 June 2026, the eighteenth meeting of the eighth session of the board of directors of the Company considered and approved the Proposal on Participating in Tender for Relevant Project and Related Party Transactions,/uni00A0approving that Elephant Logistics, a subsidiary, participate in the tender with a cap of RMB30 million for the “2026-2027 Delivery and Distribution Project 2 for Finished Steel Products of Zhongnan Co., Ltd. by Cargo Transportation” of Shanghai Ouye Logistics Co., Ltd., a related party./uni00A0Elephant Logistics received the/uni00A0Notice of Award/uni00A0from Ouye Logistics in July, confirming that it had won the bid for Item 1 (Dongguan, Guangdong), with a bid amount of RMB18,491,263.84 (inclusive of tax)./uni00A0The final settlement amount is subject to actual service performance and assessment results, and both parties have signed the relevant distribution contract. For details, please refer to the Company’s announcements dated 26 June 2026 and 9 July 2026. 30. APPROVAL OF THE CONDENSED INTERIM FINANCIAL INFORMATION The condensed interim financial information of the Group for the six months ended 30 June 2026 was approved by the Board on 27 August 2026.
Page 82
– 82 – 81INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS REVIEW In the first half of 2026, the Company, in line with its “15th Five-Year Strategic Plan”, actively implemented the overall work requirements of the “Three Pillars and Four Strengths”, adhered to deepening reforms and enhancing operational quality, and continuously drove management efficiency improvements. While maintaining and improving its core hazardous waste disposal business, the Company also explored and cultivated new business areas, and continued to increase investment in technological innovation to promote the high-value and diversified transformation of its recycling products. During the Reporting Period, the hazardous waste industry remained highly competitive, with the downward trend in unit prices for non-hazardous treatment services not yet reversed and negative gross margins persisting. At the same time, fluctuations in metal prices led to an improvement in gross profit margins of recycling products, facilitating the profitability improvement of recycling business. In the first half of 2026, the Company recorded operating revenue of approximately RMB1,358 million, a year-on-year decrease of 9.48%; net loss attributable to parent company was RMB268 million, narrowing by 3.50% year-on-year; and net cash flows from operating activities amounted to RMB89.8378 million, representing a year-on-year increase of 277.17%. For its core hazardous waste disposal business, the Company actively advanced process development and technical transformation during the Reporting Period. Key in-house research projects, including the “industrialization of preparing monoammonium phosphate from waste phosphoric acid” and “industrialization research on preparing calcium fluoride from fluorine-containing waste liquid”, are near production. Meanwhile, benefiting from rising metal prices, the Company’s high-end products such as copper hydroxide and firework-grade copper oxide achieved growth in both revenue and profitability. In addition, the Company adopted an asset-light model to establish joint ventures with various enterprises to carry out multiple collaborations in areas such as auto parts dismantling, energy saving transformation, environmental consulting and green logistics, continuously exploring and cultivating new businesses in resource recycling.
Page 83
– 83 – 82 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 In terms of technological innovation, the Company focused on objectives including “cost reduction and efficiency enhancement in copper-containing waste recycling”, “differentiated and high-value-added copper products” and “comprehensive utilization of waste acid”, carried out a series of key core technology research and applied studies, and orderly implemented projects under the national key R&D programme. Meanwhile, it engaged in industry-university-research collaboration and technical exchanges with prestigious universities and institutions such as Tsinghua University, South China University of Technology, and the Guangdong-Hong Kong-Macao Ecological and Environmental Science Center, continuously optimizing the innovation ecosystem for collaborative research and application. During the Reporting Period, the Company secured 27 new patents, including four invention patents , and obtained two U.S. patents for “A System for Determining Evaporation Endpoint Using Image Recognition in Ammonia-Nitrogen Wastewater Evaporation Crystallization” and “A Method for Recycling of High-salt Sludge Containing Sodium Chloride and Sodium Sulphate”. In talent development, the Company relied on its “1+1+2+N” cultivation system to conduct tiered and classified training for operational management, technical and skilled personnel. During the Reporting Period, it completed the “Woodpecker Training Camp” programme for the safety and environmental system, and plans to launch the “Flying Dragon Training Camp” for senior executives of subsidiaries and the “Flying Eagle Training Camp” for technical personnel in the second half of the year. Meanwhile, based on the 2025 annual assessment results, the Company adjusted the internal management grades and remuneration of the leadership teams of nine subsidiaries, eliminated certain underperforming managers, and strictly implemented the “Three Capabilities” mechanism. In cost reduction and efficiency enhancement, the Company introduced a special “extreme cost reduction” action plan, achieving cumulative cost reductions of over RMB23 million during the Reporting Period through initiatives such as process optimization, auxiliary material substitution and waste-to-waste treatment. In addition, based on market conditions, it implemented 55 “extreme rate efficiency improvement” projects across its subsidiaries and branches, including projects on asset revitalization, expansion of environmental treatment services and utilization of steam resources, which generated cumulative efficiency gains of over RMB15 million.
Page 84
– 84 – 83INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED Currently, the low-price competition trend in the hazardous waste disposal industry has not reverse , and coupled with uncertainties arising from metal price fluctuations, the Company is still facing operational pressures. To address potential risks and facilitate stable and sustainable development, in the second half of the year, the Company will firmly anchor its strategic direction as a “comprehensive environmental service provider” and “resource recycling” enterprise, and optimize resource allocation towards in-depth resource utilization and green and low-carbon initiatives. While stabilizing its core hazardous waste disposal business, the Company will continue to deepen the reform of market-oriented operating mechanisms; intensify efforts in key technological breakthroughs for hazardous waste recycling; actively promote the cultivation of new businesses to expand growth opportunities; and persistently implement lean management, cost reduction and efficiency enhancement, thereby laying a solid foundation for the Company’s long-term and healthy development. POSSIBLE RISKS AND COUNTERMEASURES 1. Risk related to intensified market competition and operation Encouraged by the national policy regarding strengthening support of the industrial waste treatment and disposal industry, large state-owned enterprises and private capital entered the industry aggressively, leading to a substantial increase in the hazardous waste treatment and disposal capacity that has outstripped market demand, with homogeneous competition becoming increasingly fierce. As industry adjustment continues, the Company’s business faces risks including intensified competition, declining gross profit margins and difficulties in recovering accounts receivable. Coupled with the impact of credit rating downgrades, the Company’s liquidity is under greater pressure. Due to process upgrades by waste-generating enterprises and the promotion of “zero-waste” policies, together with fierce competition from cement kiln incineration lines, the Company’s upstream procurement costs for hazardous waste collection and transportation have continued to rise, while downstream quotations for harmless disposal services have been under downward pressure, making it significantly more difficult to secure quality hazardous waste sources. The combination of these factors has continuously squeezed the Company’s operating revenue and profit margins, resulting in sustained losses. Going forward, the Company will firmly focus on the overall deployment of the “Three Pillars and Four Strengths”, optimize the fundamental hazardous waste business, advance internal operational reforms and the disposal of inefficient and ineffective assets under the special reform plan of “making breakthrough with differentiated strategies tailored to each enterprise”, and continue to explore new business opportunities to create new performance growth points.
Page 85
– 85 – 84 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 2. Risk related to production safety and environmental protection Hazardous waste possesses hazardous properties such as toxicity, flammability and strong corrosiveness. The Company’s businesses of hazardous waste collection and transportation, warehousing and storage, incineration disposal and safe landfill involve production safety risks including material leakage, fire and explosion. At present, ecological and environmental supervision continues to intensify. National and local authorities are continuously tightening compliance control standards for online monitoring, compliant discharge of wastewater and exhaust gas, solid waste record archiving, and hazardous waste transfer manifest management. At the same time, environmental laws and regulations, pollutant discharge standards for hazardous waste disposal, catalogue of hazardous wastes, and control limits for landfill sites are being continuously updated and raised. If the Company fails to adapt in a timely manner, it may face compliance risks and environmental protection pressure. The Company will always adhere to the bottom line of production safety and environmental compliance, establish a closed-loop management and control system covering the entire business process, regularly conduct cross-base safety inspections, all-staff practical safety training and special assessments on hazardous waste classification management, and improve the pre-entry risk assessment mechanism for hazardous waste, thereby reducing various safety and environmental compliance risks from the source of operations. 3. Risk related to metal price fluctuation The main products of the Company are recycled products such as copper sulfate, basic copper chloride and copper oxide, and metal products such as crude lead, crude silver, refined tellurium and antimony oxide. The selling prices of these products are determined based on their metal element content and with reference to the spot prices of metals published by metal exchanges, and may be subject to fluctuations in metal prices. The Company will firmly implement the procurement-production-sales plan, increase efforts in product sales, accelerate operating turnover, reduce inventory backlog and prevent and control the price risk caused by fluctuations in metal prices.
Page 86
– 86 – 85INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED FINANCIAL REVIEW Total operating revenue For the six months ended 30 June 2026, the Group’s total operating revenue amounted to RMB1,358,184,571, representing a decrease of 9.48% as compared to the corresponding period of 2025 (for the six months ended 30 June 2025: RMB1,500,470,310). The decrease in total operating revenue was mainly attributable to a year-on-year 62.1 0% decrease in revenue from rare and precious metals recovery and utilization business to RMB108,862,854 (for the six months ended 30 June 2025: RMB287,227,265). Meanwhile, revenue from harmless treatment business decreased due to downturn of the market. Operating revenue from industrial waste treatment and disposal amounted to RMB372,999,732, representing a year-on-year decrease of 6.04% (for the six months ended 30 June 2025: RMB396,990,856). Revenue from the business of sales of recycled products increased by 11.58% to RMB720,947,468 (six months ended 30 June 2025: RMB646,104,218) as compared with the same period of last year due to the increase in metal prices and the increase in sales discount rate. Profit For the six months ended 30 June 2026, the Group’s integrated gross profit margin was 4.70% (for the six months ended 30 June 2025: 3.24%), representing an increase of 1.46 percentage points as compared to the corresponding period of last year. For the six months ended 30 June 2026, the Group recorded net profit attributable to shareholders of the parent company of RMB-268,435,348 (for the six months ended 30 June 2025: RMB-278,177,080), representing a reduction in loss of 3.50 % year-on-year. During the Reporting Period, although the increase in metal prices led to a moderate improvement in the gross profit margin of the recycling business, the overall market competition remained intense, and the profit margin of the Company’s principal businesses of non-hazardous treatment and precious metals continued to be under pressure, resulting in the gross profit margin remaining at a relatively low level.
Page 87
– 87 – 86 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 Selling expenses For the six months ended 30 June 2026, the Group’s selling expenses were RMB40,257,724 (for the six months ended 30 June 2025: RMB41,851,617), accounting for 2.96% of the total operating revenue (for the six months ended 30 June 2025: 2.79%). During the Reporting Period, the Company’s selling expenses decreased as a result of effective management and control. Administrative expenses For the six months ended 30 June 2026, the Group’s administrative expenses were RMB179,540,865 (for the six months ended 30 June 2025: RMB170,893,775), accounting for 13.22% of the total operating revenue (for the six months ended 30 June 2025: 11.39%). The year-on-year increase in administrative expenses during the Reporting Period was primarily attributable to the increase in post-employment compensation resulting from adjustments to the personnel structure. Finance costs For the six months ended 30 June 2026, the Group’s finance costs were RMB71,514,392 (for the six months ended 30 June 2025: RMB93,874,721), accounting for 5.27% of the total operating revenue (for the six months ended 30 June 2025: 6.26%). The year-on-year decrease in finance costs during the Reporting Period was primarily attributable to the decrease in the overall financing interest rate and the impact of exchange gains and losses on foreign currency borrowings. Income tax expenses For the six months ended 30 June 2026, the Group’s income tax expenses were RMB3,814,121 (for the six months ended 30 June 2025: RMB3,460,345), accounting for -1.21% of the total profit (for the six months ended 30 June 2025: -1.07%). The increase in income tax expense was mainly due to the/uni00A0reduction in loss of total profit during the Reporting Period. Financial position and liquidity As of 30 June 2026, net current assets of the Group amounted to RMB -865,324,927 (31 December 2025: RMB-1,157,940,871), including total cash and cash equivalents of approximately RMB1,003,176,144 (31 December 2025: RMB1,099,872,837).
Page 88
– 88 – 87INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED As of 30 June 2026, total liabilities of the Group amounted to RMB6,814,103,677 (31 December 2025: approximately RMB7,085,646,097). Based on the total liabilities and total assets of the Group, the gearing ratio of the Group was 73.05% (31 December 2025: 71.52%). The current liabilities of the Group amounted to RMB3,702,405,816 (31 December 2025: RMB4,287,127,096). As of 30 June 2026, bank loans of the Group amounted to RMB4,514,301,029 (31 December 2025: RMB4,627,761,340). According to the rating report issued by China Chengxin International Credit Rating Co., Ltd. (the “China Chengxin International ”), a rating agency, on 17 June 2026, the corporate credit rating of Dongjiang Environmental, as well as the ratings of the First Tranche of Medium-term Notes in 2024 (bond abbreviation: 24 Dongjiang Environmental MIN001) and the First Tranche of Medium-term Notes in 2025 (bond abbreviation: 25 Dongjiang Environmental MTN001) issued in the interbank bond market, were both downgraded from AA+ (outlook: stable) to AA (outlook: stable). The main reasons for the downgrade were as follows: the hazardous waste disposal industry in which the Company operates continued to experience a downturn, the Company has recorded consecutive years of losses and its operating loss further widened in 2025, making it difficult to turn around losses in the short term; sustained losses have eroded the equity base, and coupled with a relatively large debt scale, the financial leverage ratio has risen to a relatively high level; the Company faced pressure to redeem and repay bonds, and the internal control governance and financial accounting compliance required improvement. At the same time, China Chengxin International also acknowledged that the Company’s strong shareholder background provides solid support in terms of human resources, resource coordination and capital support. In addition, the Company maintains its leading position in the hazardous waste treatment industry in China, and the increase in net cash flows from operating activities during the period under review supported the Company’s creditworthiness. During the Reporting Period, the Group’s operating activities were carried out in an orderly manner, and the Board believes that the Group has a sound financial position and strong liquidity to meet its operation and business development needs in the future. Assets Charges and Pledges As of 30 June 2026, the Group’s assets charged and pledged for bank borrowings included property, plant and equipment, intangible assets and accounts receivable. The aggregate amount of the charged assets was RMB1,655,096,111.
Page 89
– 89 – 88 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 Significant investments, acquisitions and disposals of subsidiaries, associates and joint ventures During the Reporting Period, the Group had no significant investments, acquisitions and disposals of subsidiaries, associates and joint ventures. Future plans for material investments or capital assets Save as disclosed in this report, the Group does not have other future plans for material investments or capital assets. INTEREST RATE AND FOREIGN EXCHANGE RISKS Interest rate risk The Group is exposed to the fair value interest rate risks as a result of its fixed-rate bank loans. The Group currently has no interest rate hedging policy. However, the management closely monitors the interest rate risk, and will consider other necessary actions should a significant risk be foreseeable. The Group is also exposed to cash flow interest rate risk as a result of its floating-rate bank loans. The Group’s policy is to maintain the floating-rate bank loans to reduce the cash flow interest rate risk. The Group’s cash interest rate risk mainly concentrated on the Group’s RMB borrowings resulting from fluctuations in the benchmark interest rate published by the People’s Bank of China. Financial liabilities at floating interest rate expose the Company to cash flow interest rate risk, while financial liabilities at fixed interest rate expose the Company to fair value interest rate risk. The Company determines the relative proportions of contracts between fixed and floating interest rates depending on the market conditions. Foreign exchange risk The Group primarily operates in the Mainland China, and its business are primarily settled in Renminbi. However, the recognized foreign currency assets and liabilities and future foreign currency transactions (foreign currency assets and liabilities and foreign currency transactions are mainly denominated in Hong Kong dollars and US dollars) of the Company are still exposed to foreign exchange risks. The Company pays close attention to the impact of exchange rate changes on the Company. The Company has currently adopted forward foreign exchange contract measures to hedge against foreign exchange risks for its foreign exchange borrowings. The Company will consider necessary hedging actions should a significant foreign exchange risk be foreseeable.
Page 90
– 90 – 89INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED Contingent liabilities Save as disclosed in note 28 of the unaudited interim financial statements, the Group had no other significant contingent liabilities for the six months ended 30 June 2026. Information on Employees and Remuneration Policies As of 30 June 2026, the Group had 3,700 full-time employees, as compared to 3,893 employees as of 31 December 2025. The total staff cost for the six months ended 30 June 2026 was approximately RMB278,529,521, as compared to RMB274,589,998 for the corresponding period in 2025. The Group offers continuous training, remuneration package and additional benefits to its employees, including retirement benefits, housing allowance and medical insurance. EVENTS DURING THE PERIOD Connected Transaction – Capital Injection into Embodiment Intelligence On 3 February 2026, the Company and Guangdong Embodiment Intelligence Technology Co., Ltd.* (ʮ̡, “Embodied Intelligence”) entered into a capital increase agreement (the “Capital Increase Agreement”), pursuant to which the Company agreed to inject RMB8.00 million in cash as capital contribution to Embodied Intelligence. Upon completion of the capital increase, the Company held approximately 2.67% of the equity interest in Embodied Intelligence. For details, please refer to the announcements of the Company dated 22 December 2025, 16 January 2026 and 3 February 2026. Continuing Connected Transaction Service Framework Agreement On 27 March 2026, the Company and Guangdong Rising Holdings Group have entered into the Service Framework Agreement, pursuant to which the Company and its subsidiaries shall provide industrial waste treatment, transportation and technical consultancy services to Guangdong Rising Holdings Group and its subsidiaries for a term from the date of the Service Framework Agreement (i.e. 27 March 2026) to 31 December 2026.
Page 91
– 91 – 90 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 Products Sales Framework Agreement On 27 March 2026, the Company and Guangdong Rising Holdings Group have entered into the Products Sales Framework Agreement, pursuant to which the Company and its subsidiaries shall sell recycled products to Guangdong Rising Holdings Group and its subsidiaries for a term from the date of the Products Sales Framework Agreement (i.e. 27 March 2026) to 31 December 2026. Raw Material Procurement Framework Agreement On 27 March 2026, the Company and Guangdong Rising Holdings Group have entered into the Raw Materials Procurement Framework Agreement, pursuant to which the Company and its subsidiaries shall purchase raw materials from Guangdong Rising Holdings Group and its subsidiaries for a term from the date of the Raw Materials Procurement Framework Agreement (i.e. 27 March 2026) to 31 December 2026. For details, please refer to the Company’s announcement dated 27 March 2026. EVENTS AFTER THE PERIOD Continuing Connected Transaction – Transportation and Distribution Service Contract On 9 July 2026, Elephant Logistics, a subsidiary of the Company, and Shanghai Ouye Logistics Co., Ltd.* (ʮ̡) (“Ouye Logistics ”) entered into the Transportation and Distribution Service Contract (the “ Transportation and Distribution Service Contract ”), pursuant to which Elephant Logistics shall provide transportation services for finished steel products of Zhongnan Co., Ltd.* (΅) to Ouye Logistics for a term from the date of the Transportation and Distribution Service Contract (i.e. 9 July 2026) to 30 June 2027. For details, please refer to the Company’s announcements dated 9 July 2026.
Page 92
– 92 – 91INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED USE OF PROCEEDS FROM THE NON-PUBLIC ISSUANCE OF A SHARES The net proceeds from the non-public issuance of A Shares were approximately RMB1,194.31 million. During the Reporting Period, the net proceeds were applied as follows: Proposed use of proceeds Original allocation of net proceeds Unutilised net proceeds as at 1 January 2026 Re-allocation of unutilised net proceeds Revised allocation of the unutilised net proceeds Utilised net proceeds during the six months ended 30 June 2026 Unutilised net proceeds as at 30 June 2026 Expected timeline (RMB’ million) (RMB’ million) (RMB’ million) (RMB’ million) (RMB’ million) (RMB’ million) Development of the green recycling centre (phase 1) located in Petrochemical Industrial Area, Dananhai, Jieyang* (ऎͩʷ ʈุਜ) 410.00 264.25 (264.25) – – – – Expansion of the sewage treatment facilities (phase 2) located in Jiangling County, Jingzhou, Hubei Province* (ঠψ̹Ϫጤ) 165.00 93.99 (83.99) 10.00 – 10.00 By December 2028 Smart digitalization development project 184.31 158.79 (158.79) – – – – Modification and upgrade of hazardous waste treatment project 95.00 62.46 – 62.46 – 62.46 By December 2028 Replenishment of general working capital (Note) – Purchase of raw materials – – 255.00 255.00 255.00 – – – Labour costs – – 100.00 100.00 22.64 77.36 By December 2027 – Research, development and other costs – – 152.03 152.03 66.90 85.13 By December 2027 Sub-total 340.00 – 507.03 507.03 344.54 162.49 Total 1,194.31 579.49 579.49 344.54 234.95 Note: Reference is made to the announcements of the Company dated 30 January 2026 and 22 December 2025, and the circular of the Company dated 12 January 2026 in relation to the change in use of proceeds from the non-public issuance of A shares. At the first extraordinary general meeting of the Company in 2026 held on 30 January 2026, the resolutions on the re-allocation of the net proceeds for replenishment of working capital have been approved by the Shareholders.
Page 93
– 93 – 92 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 Details of the re-allocation of net proceeds are set out as follows: (1) the Company has completed the expansion project of the sewage treatment facilities (phase 2) located in Jiangling County, Jingzhou, Hubei Province* (ঠψ̹Ϫጤ). Except for approximately RMB10.00 million reserved specifically for the settlement of outstanding survey and design fees and quality retention funds in respect of the project, the remaining unutilised net proceeds of RMB83.99 million have been re-allocated for replenishment of general working capital. (2) taking into the Company’s operational and development needs and optimization of resources allocation, the Company has terminated the development of the Green Recycling Centre (Phase 1) located in Petrochemical Industrial Area, Dananhai, Jieyang* ( ౧ ऎͩʷʈุਜ) and the smart digitalization development project. The unutilised net proceeds from the above two projects, amounting to RMB264.25 million and RMB158.79 million, respectively, have been re-allocated for replenishment of general working capital. DIRECTORS’ AND CHIEF EXECUTIVE’S INTEREST S AND SHORT POSITIONS IN SHARES, UNDERLYING SHARES AND DEBENTURES As at 30 June 2026, none of the Directors or chief executive of the Company had any interest and short position in the Shares, underlying shares or debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) as recorded in the register of interests required to be kept by the Company pursuant to Section 352 of the SFO, or as otherwise notified to the Company and the Stock Exchange pursuant to the Model Code.
Page 94
– 94 – 93INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED SUBSTANTIAL SHAREHOLDERS’ INTERESTS AND SHORT POSITIONS IN SHARES AND UNDERLYING SHARES As at 30 June 2026, as far as the Directors and chief executive of the Company are aware, the person(s) below (other than the Directors and chief executive of the Company) had interests or short positions in the Shares, underlying shares or debentures of the Company which would fall to be disclosed to the Company and the Stock Exchange under the provisions of Divisions 2 and 3 of Part XV of the SFO or which were recorded in the register of the interests required to be kept by the Company under Section 336 of the SFO. Name of Shareholder Nature of interest Class of Shares Number of Shares Long position/ Short position Approximate percentage of the relevant class of Shares (Note 1) Approximate percentage of the total issued share capital of the Company (Note 1) Guangdong Rising Holdings Group Beneficial owner A Shares 266,279,028 Shares Long position 29.42% 24.09% Interest of controlled corporation H Shares 25,179,200 Shares (Note 2) Long position 12.58% 2.28% Rising Investment Development Co., Ltd.* (ࠢ ʮ̡ Beneficial owner H Shares 22,283,200 Shares (Note 2) Long position 11.13% 2.02% Guangdong Rising H.K. (Holding) Limited.* ٰ ʮ̡ Beneficial owner H Shares 2,896,000 Shares (Note 2) Long position 1.45% 0.26% Baowu Environment Beneficial owner A Shares 86,629,001 Shares Long position 9.57% 7.84% Interest of controlled corporation A Shares 37,664,783 Shares (Note 3) Long position 4.16% 3.41% Shanghai Baosteel New Building Materials Technology Co., Ltd* (Ҧ ʮ̡ Beneficial owner A Shares 37,664,783 Shares (Note 3) Long position 4.16% 3.41%
Page 95
– 95 – 94 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 Name of Shareholder Nature of interest Class of Shares Number of Shares Long position/ Short position Approximate percentage of the relevant class of Shares (Note 1) Approximate percentage of the total issued share capital of the Company (Note 1) Soho High Hope Group Beneficial owner A Shares 50,087,669 Shares Long position 5.53% 4.53% Interests of controlled corporation A Shares 25,995,038 Shares (Note 4) Long position 2.87% 2.35% Interests of controlled corporation H Shares 18,204,800 Shares (Note 4) Long position 9.10% 1.65% Jiangsu Soho Technology Innovation Investment Co., Ltd.* (߅ ʮ̡ Beneficial owner A Shares 25,995,038 Shares (Note 4) Long position 2.87% 2.35% Beneficial owner H Shares 18,204,800 Shares (Note 4) Long position 9.10% 1.65% Notes: 1. The percentage is calculated on the basis of 1,105,255,802 Shares (including 200,137,500 H Shares and 905,118,302 A Shares) in issue as at 30 June 2026. 2. Rising Investment Development Co., Ltd.* (ʮ̡) and Guangdong Rising H.K. (Holding) Limited.* (ʮ̡) are wholly-owned subsidiaries of Guangdong Rising Holdings Group. Therefore, Guangdong Rising Holdings Group was deemed to be interested in the 25,179,200 H Shares held collectively by Rising Investment Development Co., Ltd.* (ʮ̡) and Guangdong Rising H.K. (Holding) Limited.* (ʮ̡ ) under Part XV of the SFO. 3. Shanghai Baosteel New Building Materials Technology Co., Ltd.* (ҿ ʮ̡ ) is a wholly-owned subsidiary of Baowu Environment. Therefore, Baowu Environment was deemed to be interested in the 37,664,783 A Shares held by Shanghai Baosteel New Building Materials Technology Co., Ltd.* (ʮ̡) under Part XV of the SFO. 4. Jiangsu Soho Technology Innovation Investment Co., Ltd.* (ʮ̡), formerly known as Jiangsu High Hope Venture Capital Co., Ltd.* ( Ϫᘽිᒿ௴ุҳ༟Ϟ ʮ̡), is a wholly-owned subsidiary of Soho High Hope Group. Therefore, Soho High Hope Group was deemed to be interested in the 25,995,038 A Shares and 18,204,800 H Shares held by Jiangsu High Hope Venture Capital Co., Ltd.* (ʮ̡) under Part XV of the SFO.
Page 96
– 96 – 95INTERIM REPORT 2026 DONGJIANG ENVIRONMENTAL COMPANY LIMITED Save as disclosed above, as at 30 June 2026, the Directors and chief executive of the Company are not aware of any other person (other than the Directors and chief executive of the Company) who has interests or short positions in the Shares, underlying shares or debenture of the Company which would fall to be disclosed to the Company and the Stock Exchange under the provisions of Divisions 2 and 3 of Part XV of the SFO or which were recorded in the register of the interests required to be kept by the Company under Section 336 of the SFO. SHARE SCHEMES During the Reporting Period, the Company did not have any share scheme (as defined under Chapter 17 of the Listing Rules). COMPETING INTERESTS OR BUSINESS During the Reporting Period, none of the Directors, chief executive or the substantial shareholders of the Company and their respective associates are considered to have interests in a business which competes or is likely to compete, either directly or indirectly, with the businesses of the Group, as defined in the Listing Rules. AUDIT AND RISK MANAGEMENT COMMITTEE AND REVIEW OF THE INTERIM RESULTS The Company has established an Audit and Risk Management Committee in compliance with Rule 3.21 of the Listing Rules and Code Provision D.3 of the CG Code for the purpose of reviewing and supervising the Group’s financial reporting process, risk management and internal audit functions and control. As at 30 June 2026, the Audit and Risk Management Committee of the Company comprised of three independent non-executive Directors, namely Mr. Lee Kwok Tung Louis, Mr. Li Jinhui and Ms. Xiang Ling. Mr. Lee Kwok Tung Louis, who holds the appropriate professional qualifications as required under Rule 3.10(2) and Rule 3.21 of the Listing Rules, serves as the chairman of the Audit and Risk Management Committee. The Audit and Risk Management Committee has reviewed the interim results and financial statements of the Group for the six months ended 30 June 2026 and this report , but the unaudited condensed consolidated financial statements of the Group for the six months ended 30 June 2026 have not been audited by the auditor of the Company. PURCHASE, SALE AND REDEMPTION OF LISTED SECURITIES Neither the Company nor any of its subsidiaries repurchased, sold or redeemed any of the Company’s listed securities during the Reporting Period.
Page 97
– 97 – 96 DONGJIANG ENVIRONMENTAL COMPANY LIMITED INTERIM REPORT 2026 INTERIM DIVIDEND The Board does not recommend the payment of any interim dividend for the six months ended 30 June 2026 (for the six months ended 30 June 2025: Nil). CORPORATE GOVERNANCE The Company has been firmly committed to achieving and maintaining high overall standards of corporate governance and has always recognised the importance of accountability and communication with shareholders through continuous effort in improving its corporate governance practices and processes. Through the establishment of a quality and effective Board, a comprehensive internal control system and a stable corporate structure, the Company strives to achieve complete and transparent information disclosure, enhance stable operation and consolidate and increase shareholders’ value and profit. The Company has complied with all the applicable Code Provisions in the CG Code throughout the Reporting Period. CHANGES IN INFORMATION OF DIRECTORS There is no information required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules. SECURITIES TRANSACTIONS BY DIRECTORS The Company has adopted the Model Code as the code of conduct of securities transactions by the Directors . Having made specific enquiries with all Directors by the Company, they confirmed that they have complied with the requirements set out in the Model Code during the Reporting Period. By order of the Board Dongjiang Environmental Company Limited* WANG Bi’an Chairman Shenzhen, Guangdong, the PRC 27 August 2026 * for identification purpose only