Dongjiang Environmental Company Limited (00895) announced that the company recently received the "Decision on Taking Regulatory Talk Measures Against Dongjiang Environmental Company Limited" ([2025] No. 261) issued by the Shenzhen Securities Regulatory Bureau of the China Securities Regulatory Commission. The main contents are as follows: (1) Irregularities in financial accounting: "The company had issues with revenue recognition for individual projects spanning periods, irregular revenue recognition for the rare and precious metal recycling business involving priced transactions and landfill gas power generation business, insufficient basis for accounting policy changes in revenue recognition for anode slime sales business coupled with irregular cost accounting, inadequate basis for the amortization period of特许经营许可权 for individual projects, and irregular capitalization of interest on loans for the heavy metal sludge workshop. Furthermore, the company had deficiencies in internal controls related to revenue, and inconsistencies between the recognition criteria for goodwill-related asset groups in 2022 and the disclosures in the annual report. These situations do not comply with the relevant provisions of Accounting Standards for Business Enterprises." (2) Irregularities in corporate governance: "The operations of the company's 'Three Meetings' (namely the shareholders' meeting, board of directors, and board of supervisors) were irregular, and the registration and management of insider information custodian files were non-compliant. These situations do not comply with the relevant provisions of the 'Rules for Shareholders' Meetings of Listed Companies' and other governance guidelines. The aforementioned situations reflect problems in your company's financial accounting, internal controls, and corporate governance. The related financial accounting issues have led to non-standard information disclosure by the company. According to the 'Measures for the Administration of Information Disclosure by Listed Companies', our bureau has decided to take regulatory talk measures against your company. The Shenzhen Securities Regulatory Bureau requires the company's Chairman, President, Chief Financial Officer, and Board Secretary to subsequently bring valid identification documents to the Shenzhen Securities Regulatory Bureau to accept the regulatory talk as required. If the company disagrees with the aforementioned regulatory measures, it may apply for administrative reconsideration to the China Securities Regulatory Commission within 60 days from the date of receiving the decision, or file a lawsuit with a competent people's court within 6 months. The implementation of the aforementioned regulatory measures will not be suspended during the period of reconsideration or litigation." After receiving the decision, the company attached great importance to the related matters stated therein. It will organize relevant personnel to deeply study related laws and regulations, effectively improve the corporate governance level, promote the company's healthy and stable development, and safeguard the interests of the company and all shareholders. The aforementioned administrative regulatory measures will not affect the company's normal production and operating activities. Investors are advised to pay attention to investment risks.