Dongjiang Environmental Company Limited released its unaudited results for the period 1 January–31 March 2026.

Operating performance • Revenue fell 13.40 % year-on-year to RMB 602.64 million, reflecting weaker waste-management demand. • The Group recorded a net loss attributable to shareholders of RMB 150.22 million, 2.66 % wider than the prior-year period. Basic and diluted EPS were both negative RMB 0.14. • Excluding extraordinary items, the underlying net loss narrowed to RMB 149.28 million versus RMB 159.55 million a year earlier, benefiting from lower finance and R&D expenses.

Cost and expense dynamics • Operating costs declined 13.09 % to RMB 596.97 million, largely in line with the revenue contraction. • Finance costs dropped 30.40 % to RMB 37.97 million due to reduced interest expense and favourable FX movements. • R&D spending decreased 28.27 % to RMB 22.39 million, while administrative expenses were broadly stable at RMB 88.70 million.

Cash flow and liquidity • Operating activities consumed RMB 36.92 million, reversing a positive RMB 1.18 million inflow in Q1 2025; lower proceeds from bank-acceptance discounts were cited as the main driver. • Investing cash outflow was cut by 85.23 % to RMB 28.41 million following reduced use of structured deposits. • Financing inflow shrank 53.23 % to RMB 140.21 million amid lower net borrowings. Period-end cash and cash equivalents stood at RMB 1.17 billion.

Balance sheet highlights (31 March 2026) • Total assets amounted to RMB 9.68 billion, down 2.33 % from year-end 2025, while total liabilities slipped 0.83 % to RMB 7.03 billion. • Shareholders’ equity declined 6.22 % to RMB 2.23 billion, pushing the net-asset return to –6.53 % (Q1 2025: –4.15 %). • Short-term borrowings stood at RMB 1.67 billion, and long-term borrowings rose to RMB 1.55 billion.

Extraordinary items Net extraordinary loss totaled RMB 0.95 million, comprising RMB 4.28 million in government grants, a RMB 4.07 million negative fair-value change on financial instruments, and minor asset-disposal and tax effects.

Shareholder structure At quarter-end the company had 31,424 ordinary shareholders. Guangdong Rising Holdings remained the largest shareholder with a 24.09 % stake, followed by HKSCC Nominees (18.10 %) and Baowu Group Environmental Resources Technology (7.84 %).

Key movements in balances • Construction-in-progress grew 55.67 % to RMB 23.84 million, driven by technological renovation projects. • Other payables fell 37.09 % to RMB 191.32 million after litigation compensation payments. • Taxes payable decreased 35.60 % to RMB 19.52 million on lower VAT obligations.

Outlook Management attributes the quarter’s cash-flow pressure to reduced bank-acceptance proceeds and highlights ongoing cost-containment efforts, including lower financing expenses. The company continues to invest in technology upgrades, as reflected in higher construction-in-progress, while prioritising balance-sheet stability amid challenging market conditions.