Dongjiang Environmental Protection Releases 2025 Annual Report, Focuses on Core Business and Accelerates Transformation

On the evening of March 27, Dongjiang Environmental Protection (002672), a benchmark company in China’s hazardous waste disposal sector, officially released its 2025 annual report. During the reporting period, the company achieved operating revenue of 3.46B yuan and attributable net profit of -1.23B yuan. In 2025, the market competitive landscape in the hazardous waste industry did not improve noticeably, and the industry as a whole continued to face significant operating pressure, putting some strain on the company’s operating performance.

In the annual report, Dongjiang Environmental Protection stated that going forward, the company will take various measures to prevent problems before they occur, continuously optimize its asset structure, accelerate cash collection, and strive to improve its profitability. It will build core competitiveness through technological upgrades and technological innovation. While actively cultivating new businesses, the company will also continue to identify high-quality M&A targets and create new performance growth points through acquisitions.

After 26 years of deep cultivation, Dongjiang Environmental Protection has built a comprehensive system for hazardous waste treatment and disposal. It holds the disposal qualifications for the vast majority of hazardous wastes listed in the latest national catalog, with annual hazardous waste treatment and disposal capacity exceeding 2.8 million tons. The company’s annual output of resource-based products exceeds 110k tons, and it has deployed more than 40 industrial bases. Guided by the “dual carbon” goals, the company continues to solidify its leading position in the hazardous waste treatment industry by transforming into high-value, diversified resource-based products and driving innovation, and is accelerating its move toward becoming a leading comprehensive environmental services provider and resource recycling enterprise.

Currently, the hazardous waste treatment industry is in a deep adjustment period where excess capacity and price wars are intertwined, and intense market competition has formed a period-specific impact on the company’s short-term operating performance. As an industry leader, Dongjiang Environmental Protection, backed by comprehensive qualification advantages and processing capacity, holds its ground and advances with resilience during the industry’s in-depth reshuffling. With the continued strengthening of environmental supervision and the ongoing operating pressure across the industry, some smaller enterprises and non-compliant capacities are expected to accelerate their exit from the market. Industry concentration is expected to further increase. Meanwhile, relying on the financing advantages brought by its state-owned enterprise background and scale effects, Dongjiang Environmental Protection is expected to capture a larger market share during the industry reshuffle and enhance its pricing power, further consolidating its leading position in the industry.

At the same time, Dongjiang Environmental Protection is firmly advancing its strategic transformation, focusing on high value-added resource recycling, and has clarified its transformation strategy of “three industrial chains and twelve business lines.” It is gradually extending from traditional hazardous waste disposal businesses with low gross margins to the resource recycling and comprehensive environmental services sectors with higher value added, continuously cultivating new momentum for performance growth. Specifically, in the field of in-depth processing of precious metals, the company relies on subsidiaries such as Xiongfeng Environmental Protection to steadily extend into downstream in-depth processing of precious metals such as bismuth, tellurium, and antimony, deeply mining high-value links in the industrial chain. In the field of high-end resource-based products, it focuses on developing high-end copper salt products such as nano-scale basic copper sulfate and copper hydroxide, continuously increasing product value added. In terms of setting up new tracks, the company, through the establishment of a joint venture, Dongjiang Automobile Resource Recycling (Hubei) Co., Ltd., has officially entered the new area of remanufacturing automotive components. These new business deployments are expected to become important support for the company’s future performance growth and drive the company to achieve high-quality development.

As an important lever for Dongjiang Environmental Protection to improve its business layout and strengthen its core competitiveness, the company stated clearly in investor research and communications that in the future it will continue to focus on related areas such as the “big environmental protection” sector and new materials. It will emphasize identifying M&A targets that have high-quality development potential and can create synergy with the company’s main business. Leveraging market-oriented M&A and integration tools, the company will further fill business gaps, enrich its business matrix, and continuously strengthen its core competitive advantages.

Of note is that, according to disclosure in its investor research meeting minutes, Dongjiang Environmental Protection has established an overseas attack task force. Relying on existing shareholders’ overseas resources, it is steadily advancing projects; currently, several reserved projects are in the follow-up stage, with a focus on core markets such as Southeast Asia. The company has clarified its overseas business development approach: it will adhere to a prudent principle of asset investment, with its core development direction centered on delivering management experience and technical services. Based on a thorough assessment of various potential risks, including geopolitics and exchange rates, it will actively explore high-quality opportunities for gains in areas such as resource recycling and remanufacturing.

Looking ahead, Dongjiang Environmental Protection said it will continue to focus on its core hazardous waste treatment business, coordinate the optimization and upgrade of domestic operations and the expansion of overseas market strategy. At the same time, it will rely on market-oriented M&A and integration to enrich its business matrix and address development shortcomings, and will improve operating performance through multiple measures such as strategic transformation, technological innovation, and cost control. The company will continuously enhance its core competitiveness, strive to create long-term and stable investment value for a broad range of investors, help the industry transition to a comprehensive service model of “resource utilization + harmless disposal,” and provide strong support for the realization of the goals of “zero-waste cities” and “dual carbon.”

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