Dongjiang Environmental Company Limited (Dongjiang Environmental) disclosed on 18 September 2026 that it will honour additional guarantee obligations totaling RMB18.14 million on behalf of its controlling subsidiary, Mianyang Dongjiang Environmental Technology Co., Ltd. (Mianyang Dongjiang). The payment comprises RMB16.95 million in outstanding principal and RMB1.19 million in accrued interest owed to Postal Savings Bank of China.

The obligation stems from a joint-liability guarantee Dongjiang Environmental provided to support Mianyang Dongjiang’s RMB260 million loan facility first announced on 9 July 2020. Since commencing operations, Mianyang Dongjiang has struggled with lower-than-expected waste collection volumes and falling treatment prices amid heightened industry competition, leading to persistent liquidity pressure and repayment delays.

In line with the guarantee agreement, Dongjiang Environmental has booked the RMB18.14 million outlay as a receivable from Mianyang Dongjiang. Management stated it will intensify efforts to help the subsidiary boost market penetration, cut operating costs and improve cash generation to expedite reimbursement.

Separately, Dongjiang Environmental has issued demand letters to the counter-guarantors and initiated legal proceedings against Diwosi and Xinkeyuan at the People’s Court of Mianyang High-tech Industrial Development Zone. The case was heard on 8 September 2026 and a verdict is pending.

The company indicated it will continue to update investors as developments unfold and urged shareholders and potential investors to exercise caution when trading its shares.