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Dongjiang Environmental Company ( (HK:0895) ) has issued an announcement.
Dongjiang Environmental Company Limited has announced that its controlling subsidiary, Mianyang Dongjiang Environmental Technology, continues to struggle with weak waste collection volumes, declining treatment prices and liquidity pressure, leaving it unable to meet repayment obligations on a loan from Postal Savings Bank. The parent company, which had provided a joint liability guarantee on the RMB260 million facility, has already compensated the lender under the guarantee and will now make an additional payment of RMB21.3355 million, recognizing this amount as a receivable from the subsidiary.
Management plans to push Mianyang Dongjiang to expand its market efforts, cut production and operating costs and improve performance in order to repay the receivable, while also enforcing counter-guarantee arrangements by issuing demand letters to counter-guarantors. Dongjiang Environmental has reserved the right to pursue legal or arbitration proceedings to protect the interests of the company and its shareholders and has cautioned investors to exercise care when trading its shares as it continues to update the market on further developments.
The most recent analyst rating on (HK:0895) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Dongjiang Environmental Company stock, see the HK:0895 Stock Forecast page.
More about Dongjiang Environmental Company
Dongjiang Environmental Company Limited is a PRC-based environmental services provider focused on hazardous waste treatment and related environmental technologies. Through subsidiaries such as Mianyang Dongjiang Environmental Technology, the group collects, transports and processes hazardous waste, operating in a sector currently characterized by intense competition and pricing pressure.
YTD Price Performance: 6.31%
Average Trading Volume: 3,302,036
Technical Sentiment Signal: Hold
Current Market Cap: HK$5.4B
See more insights into 0895 stock on TipRanks’ Stock Analysis page.