Dongjiang Environmental Company Limited (Dongjiang Environmental) announced that its 40 %-owned subsidiary, Guangdong Elephant Logistics Technology Co., Ltd. (Elephant Logistics), has signed a Transportation and Distribution Service Contract with Shanghai Ouye Logistics Co., Ltd. (Ouye Logistics) after winning a public tender for the haulage of finished steel products produced by Zhongnan Co., Ltd.
The contract runs from 9 July 2026 to 30 June 2027. Service fees will be calculated at an awarded tender price of RMB0.2222 per ton-kilometre, multiplied by actual tonnage and distance. Based on current estimates, total consideration is expected to reach approximately RMB18.49 million (tax inclusive). Fees will be settled monthly via bank transfer.
Management has set annual caps of up to RMB15.00 million for each of the two periods—9 July 2026 to 31 December 2026 and 1 January 2027 to 30 June 2027—providing headroom against volume and distance fluctuations.
Because Ouye Logistics is a fellow subsidiary of Baowu Environment, a substantial shareholder of Dongjiang Environmental, the transaction is classified as a continuing connected transaction under Hong Kong Listing Rules Chapter 14A. The relevant percentage ratios exceed 0.1 % but remain below 5 %, triggering reporting, announcement and annual review requirements while exempting the deal from circular and independent shareholders’ approval. Non-executive director Mr. Liu Xiaoxuan, who holds a senior management position at Baowu Environment, abstained from the board vote on the agreement.
Dongjiang Environmental stated that the deal aligns with its strategic goal of expanding green logistics, supports revenue and profit growth, and complements the group’s broader ambition to become a leading comprehensive environmental services and resource-recycling enterprise in China.
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