Donghua Engineering Technology Co., Ltd. (hereinafter referred to as "the Company" or "Donghua Technology") hereby announces the main operational situation for Q1 2026 (excluding sales of industrial and new materials) as follows:
1. Overall Production and Operation Situation
| Project Type | Q1 New Contracts Signed | Q1 Bids Won but Not Signed | Cumulative Signed Unfinished Orders as of Report Date |
|---|---|---|---|
| Quantity (units) | Amount (10,000 RMB) | Quantity (units) | |
| Design Technical Services | 40 | 4,204.51 | 0 |
| General Contracting for Consulting and Design Projects | 8 | 402,555.26 | 0 |
| Total (including EPC+0) | 48 | 406,759.77 | 0 |
2. Major Project Execution Status
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Congo (Brazzaville) 1200kt/a Potash Fertilizer Project General Contracting
This contract was signed in July 2013 and is a general contracting agreement. The Company is primarily responsible for the overall construction of this project, with a performance period of approximately 36 months. The contract price consists of a fixed part of USD 497,391,000 and a non-fixed part of USD 24,462,000, which will be paid by the owner according to the contract's payment conditions and proportions. Currently, the project is in a suspended state, and due to changes in the actual controller of the project, significant changes in construction scale, product plans, and construction conditions may occur, leading to uncertainties in contract performance and risks in project settlement and receivables. The impairment provision accrued by the Company for this project is RMB 243.77 million. The Company is taking steps to manage the already procured equipment contracts while closely monitoring project progress and enhancing communication with relevant parties to promote project restructuring and restart. As of March 31, 2026, the cumulative recognized revenue for this project is RMB 208.14 million, with cumulative receipts amounting to RMB 134.95 million and cumulative recognized project settlement of RMB 139.76 million. -
Weng'an Donghua Xingjing Ecological Development Co., Ltd. Weng'an County Caotang "Shiwutang" Landscape Project (Phase I) EPC General Contracting
This contract was signed in May 2017 and is an EPC contract. The Company is responsible for landscape design, procurement of equipment and materials, construction, training of owner personnel, and providing technical guidance, support, and services for project acceptance. The construction period is approximately 19 months, with a contract amount of RMB 874.49 million (estimated). As of March 31, 2026, the cumulative recognized revenue for this project is RMB 773.43 million, with cumulative receipts of RMB 648.02 million and cumulative recognized project settlement of RMB 775.68 million. The Company is involved in litigation regarding payment with the subcontractor for this project. The Guizhou Provincial High People's Court made a second-instance judgment in March 2026. -
Xinjiang Tianye (Group) Co., Ltd. 1 Million Tons/Year Syngas to Ethylene Glycol Phase I Project
This contract was signed in December 2017 and is a general contracting agreement. The Company is responsible for all work required to complete the construction of the contract facilities, including civil engineering, water supply and drainage, equipment, piping, instrumentation and control, and electrical work. The construction period is approximately 26 months, with a contract amount of RMB 1.08 billion (tentative price). Final settlement is currently underway. As of March 31, 2026, the cumulative recognized revenue for this project is RMB 1.06 billion, with cumulative receipts of RMB 1.06 billion and cumulative recognized project settlement of RMB 983.82 million. The owner's performance capability has not changed significantly, and there are no major risks in future settlement and receivables.