Dongjiang Environmental reallocates unused proceeds to boost working capital

Dongjiang Environmental Company Limited announced on December 22, 2025, a change in the use of approximately 580.40 million yuan in unutilized net proceeds. These proceeds originated from a proposed non-public issuance of A Shares, which generated about 1,194.31 million yuan. As of November 30, 2025, the company had utilized 613.91 million yuan (51.40%) of the total net proceeds.

The board and the audit and risk management committee resolved to terminate the "Green Recycling Centre (Phase 1)" project in Jieyang and the "Smart Digitalization Development Project." The "Green Recycling Centre" project faced low capacity utilization and declining unit prices, while the "Smart Digitalization Development Project" was deemed unlikely to bring short-term direct economic benefits. The expansion of sewage treatment facilities in Jiangling County, Jingzhou, is also closing, with 10.00 million yuan reserved for outstanding fees and deposits.

Consequently, the company will reallocate 507.94 million yuan of the unutilized net proceeds to replenish its general working capital. This strategic adjustment aims to enhance capital utilization efficiency, optimize resource allocation, and provide financial support for daily operations and business development. The company states this change will not adversely impact normal operations or shareholder interests.