Huaxin Environmental Protection: China International Capital Corporation Wealth Beijing Branch, Beijing 22nd Century Brothers Investment Management Co., Ltd., and other institutions conducted a research visit to our company on March 27.

Securities Star News: On March 27, 2026, Huanxin Environmental Protection (301265) issued an announcement stating that on March 27, 2026, the company was investigated by the following individuals: Long Yong Dan, Director and Investment Manager of China Jincheng Wealth Beijing Branch; Hu Yupiao Wang Wei, Beijing Twenty-Second Century Brothers Investment Management Co., Ltd.; Fei Ao, Chairman of Beijing Xinhan Capital Management Co., Ltd.; Qingan Zheng, Partner of Beijing Guoding Shichuang Investment Management Co., Ltd.; WenZhong Xu, Deputy General Manager of the Beijing Investment Department of China National Resources and Investment (Group) Co., Ltd.; Xiaolong Chen, General Manager of Tianyu Space (Beijing) Technology Co., Ltd.; Donghua Shi, Manager of Beijing Zhongke Zhisheng Co., Ltd.; Kaimao Zhou, General Manager of Jimao United (Beijing) Technology Development Co., Ltd.; Shuai Wang, Manager of Hangzhou Deep Technology Co., Ltd.; JianCan Wang, Manager of Online Tuyou (Beijing) Technology Co., Ltd.

The specific details are as follows:

Q: What is the company’s business development history, and how does it plan its transformational development strategy?

A: Since the company was established, it has consistently adhered to the guidance of national policies and acted in response to the times. It started with the collection, dismantling, and disposal of electronic waste, then gradually upgraded to the collection and dismantling of scrapped motor vehicles, the safe disposal of hazardous waste, and resource utilization. It continued to develop into a transformation and development toward the recycling and utilization of precious metals and non-ferrous metals. Up to now, the company has opened up strategic emerging businesses, built technical barriers, and formed new growth curves. The company’s current development and transformation strategy is to, on the basis of consolidating traditional stable businesses such as the dismantling of electronic waste, the dismantling of scrapped motor vehicles, and the harmless disposal of hazardous waste, promote industrial upgrading through projects such as precious metal extraction and resource utilization of cobalt-containing slag. Meanwhile, it actively lays out strategic emerging businesses such as the remanufacturing of recycled cathode copper, catalytic hydrotreating and refining of waste mineral oil, and the remanufacturing of storage chips to build technical barriers and new growth curves. Relying on sustained R&D investment, patented technologies, and information-technology innovation methods, the company builds a technology-driven system with differentiated competitive advantages that covers resource recycling and high value-added product manufacturing, thereby enabling the company to grow continuously.

Q: How does the company position its traditional businesses in the future?

A: In the field of electronic waste dismantling, the company has two dismantling bases—Beijing and Fengzhen City, Wulanchabu City, Inner Mongolia—of which the Beijing market is in a leading position. In the field of harmless disposal of hazardous waste, the company’s subsidiaries have a landfill capacity qualification for an annual output of 95,000 tons and qualifications for the incineration of 30,000 tons of hazardous waste + 20,000 tons of industrial solid waste, making them relatively large in scale within the industry. In the field of scrapped motor vehicle dismantling, the company’s subsidiary Huanxin Kaiye is one of seven motor vehicle dismantling enterprises in Beijing.

The company’s positioning for its traditional businesses is to adhere to stable development and continuously contribute cash flow, providing strong assurance for the company’s business transformation and upgrading.

Q3, Regarding the company’s technical talent reserves for new projects, how does it ensure the talent needs for new businesses?

For traditional businesses and upstream-and-downstream extension businesses, the company has sufficient reserves of technical personnel. Through years of technical accumulation and ongoing R&D investment, the company has cultivated its own technical and engineering talent and built a team of people with solid technical capabilities, providing strong support for the development of relevant businesses. In building talent tiers, the company attaches great importance to reserving professional technical talent. For the new project you are focusing on and the future business layout, the company has already, through a combination of internal cultivation and external recruitment, allocated sufficient technical backbones to each of the key projects to support the company’s technological innovation and the landing of projects for mass production.

For emerging businesses involved in new projects such as those in Hainan and Yunnan, the company continues to build and improve the talent team through various forms including talent introduction and industry-university-research cooperation. The current talent reserves are basically aligned with the stage of development of existing businesses and generally meet business development needs. Going forward, the company will follow an overall talent development strategy of “hiring people for business needs, retaining people with compensation and benefits, and attracting people with promising development prospects,” continue to increase investment in talent, and further accelerate and improve the efficiency of introducing new talent through effective means such as capital operations.

Q: What is the progress of the company’s Hainan project construction?

A: At present, the project’s Phase I is progressing smoothly, and the company is actively pushing forward with project construction. For Phase II and Phase III, they will be advanced as needed based on the development of Phase I. The specific construction and commissioning timelines will be disclosed in a timely manner in accordance with regulatory requirements based on project progress. Thank you for your understanding and support!

Huanxin Environmental Protection (301265) main businesses: dismantling electronic waste, dismantling scrapped motor vehicles, recycling and reuse of obsolete electronic equipment, harmless disposal of hazardous waste and resource reuse, and the comprehensive recovery and utilization of regenerated cathode copper and precious and rare metals.

Huanxin Environmental Protection’s 2025 third quarterly report shows that in the first three quarters, the company’s main revenue was 682 million yuan, up 53.29% year over year; net profit attributable to shareholders was 54.331 million yuan, up 34.2% year over year; net profit after non-recurring items was 48.4737 million yuan, up 48.26% year over year. Of this, in the third quarter of 2025 alone, the company’s single-quarter main revenue was 264 million yuan, up 38.56% year over year; single-quarter net profit attributable to shareholders was 16.0599 million yuan, down 11.9% year over year; and single-quarter net profit after non-recurring items was 13.5151 million yuan, down 13.79% year over year. The asset-liability ratio was 12.78%, investment income was 4.6313 million yuan, financial expenses were -0.753 million yuan, and gross profit margin was 19.76%.

The above content has been compiled from publicly available information by Securities Star and generated by an AI algorithm (Internet Information Security Filing No. 310104345710301240019). It does not constitute investment advice.