Dongjiang Environmental Company Limited (Dongjiang Environmental) announced that its 40%-owned subsidiary, Guangdong Elephant Logistics Technology Co., Ltd. (Elephant Logistics), intends to join a public tender to provide cargo transportation for finished steel products produced by Zhongnan Co., Ltd. The proposed mandate, covering the period from 1 July 2026 to 30 June 2027, carries a bid ceiling of RMB20.00 million.

If Elephant Logistics secures the contract, it will enter into a formal one-year agreement with Shanghai Ouye Logistics Co., Ltd. (Ouye Logistics). As Ouye Logistics is an associate of Baowu Environment—a substantial shareholder of Dongjiang Environmental—the prospective arrangement would constitute a continuing connected transaction under Chapter 14A of the Hong Kong Listing Rules. Accordingly, Dongjiang Environmental will issue further announcements upon any material developments, and the transaction would be subject to appropriate compliance procedures.

Management expects the transportation project to generate additional revenue streams and reinforce the group’s strategic shift towards green logistics and resource-recycling services. The board, including independent non-executive directors, considers the tender terms to be on normal commercial terms, fair and reasonable, and in the interests of shareholders as a whole. Non-executive Director Mr. Liu Xiaoxuan, who holds a senior management role at Baowu Environment, abstained from voting on the relevant board resolution due to his connected status.

The company emphasized that no binding agreement has yet been signed and the tender outcome remains uncertain. Shareholders and potential investors are advised to exercise caution when dealing in Dongjiang Environmental’s securities.