Dongjiang Environmental reported interim results for the six months to 30 June 2026 showing lower turnover but a modest improvement in bottom-line performance and cash generation.
Revenue and Margins • Operating revenue fell 9.48% year-on-year to RMB 1.36 billion, weighed down by a 62.10% contraction in rare- and precious-metals recovery sales to RMB 108.86 million. • Industrial waste treatment and disposal income slipped 6.04% to RMB 373.00 million, while industrial waste recycling and utilisation revenue rose 11.58% to RMB 720.95 million on firm metal prices. • Group gross profit margin improved to 4.70% (1H25: 3.24%) as higher copper-related product prices partly offset continued price pressure in non-hazardous treatment services.
Earnings • Operating loss narrowed to RMB 314.72 million (1H25: RMB 329.32 million). • Net loss attributable to shareholders reduced 3.50% to RMB 268.44 million. • Basic and diluted loss per share remained RMB 0.24 (1H25: RMB 0.25).
Cost Structure • Operating costs declined 10.85% to RMB 1.29 billion. • Selling expenses dipped 3.8% to RMB 40.26 million; administrative expenses increased 5.1% to RMB 179.54 million, reflecting higher staff benefits. • Finance costs dropped 23.8% to RMB 71.51 million, aided by lower average borrowing rates and exchange gains. • R&D spending contracted 31.8% to RMB 46.29 million amid tighter cost control.
Cash Flow and Liquidity • Net cash inflow from operating activities swung to RMB 89.84 million (1H25: outflow of RMB 50.71 million). • Free cash generation was tempered by a RMB 44.61 million net outflow from investing and a RMB 141.99 million net outflow from financing. • Cash and cash equivalents stood at RMB 1.00 billion (FY25 year-end: RMB 1.10 billion). • Net current liabilities improved to RMB 865.32 million (FY25: RMB 1.16 billion). • Total interest-bearing debt amounted to RMB 4.51 billion; gearing (total liabilities/total assets) rose to 73.05% (FY25: 71.52%).
Balance Sheet • Total assets fell 5.85% to RMB 9.33 billion, mainly on lower cash and fixed assets. • Total liabilities declined 3.83% to RMB 6.81 billion; equity attributable to shareholders slipped 11.1% to RMB 2.11 billion.
Operational Highlights • Ongoing “extreme cost reduction” initiatives generated savings of more than RMB 23 million; 55 efficiency projects delivered over RMB 15 million in gains. • 27 new patents (including four inventions) were secured; two additional patents granted in the United States. • The Company advanced in-house projects for converting waste phosphoric and fluorinated effluents into value-added products, with industrialisation nearing completion.
Credit Rating Update On 17 June 2026, China Chengxin International lowered the corporate credit rating of Dongjiang Environmental and its outstanding medium-term notes from AA+ to AA, citing ongoing industry pressure, sustained losses and elevated leverage.
Dividend The Board does not recommend an interim dividend for 1H26.
Outlook Management will continue focusing on technological upgrades, cost containment, asset revitalisation and the development of new recycling businesses to mitigate intense industry competition and improve profitability, while maintaining strict safety and environmental compliance.