Dongjiang Environmental Steps Up Guarantee Payments as Hazardous Waste Subsidiary Struggles

Dongjiang Environmental Company ( (HK:0895) ) has shared an announcement.

Dongjiang Environmental Company Limited announced that its controlling subsidiary, Mianyang Dongjiang Environmental Technology, continues to face liquidity pressures as hazardous waste volumes and treatment prices fall short of expectations in a highly competitive market, leaving it unable to meet loan repayment obligations to Postal Savings Bank. The parent company will further perform its joint-liability guarantee obligations by paying an additional RMB1.37 million in loan interest on behalf of the subsidiary, has booked this amount as a receivable from Mianyang Dongjiang, and is pushing operational improvements and cost reductions at the unit while also calling on counter-guarantors to assume their responsibilities and reserving the option of legal action to protect shareholders’ interests.

The most recent analyst rating on (HK:0895) stock is a Hold with a HK$2.50 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-incorporated environmental services company listed in Hong Kong that operates in the hazardous waste treatment and related environmental technology sector. Through subsidiaries such as Mianyang Dongjiang Environmental Technology, it focuses on the collection, transportation and treatment of hazardous waste, serving industrial clients amid increasingly intense competition and pricing pressure in this niche of the environmental protection industry.

Average Trading Volume: 4,853,754

Technical Sentiment Signal: Sell

Current Market Cap: HK$4.98B

For a thorough assessment of 0895 stock, go to TipRanks’ Stock Analysis page.