Dongjiang Environmental's wholly owned subsidiary Xiamen Oasis has received a tax administrative penalty decision.

Dongjiang Environmental (00895) announced that its wholly-owned subsidiary Xiamen Oasis Environmental Protection Industry Co., Ltd. (Xiamen Oasis) recently received the "Tax Administration Penalty Decision" (Xia Tax II Penalty [2025] No. 190) issued by the Second Inspection Bureau of Xiamen Taxation Bureau of the State Administration of Taxation. 1. Facts: Xiamen Oasis purchased old household appliances from individuals from September to October 2015 and obtained 350 value-added tax special invoices issued by a third party, Shuyang Yuanfeng Recycling Resources Co., Ltd., for tax deduction amounting to RMB 3.8556 million. This resulted in underpaid taxes amounting to RMB 22.6802 million and constituted tax evasion. 2. Penalty Decision: In accordance with Article 63(1) of the People's Republic of China Tax Collection and Administration Law, Xiamen Oasis's underreporting of income on its books resulting in underpaid taxes constitutes tax evasion. The company is fined 0.5 times the amount of the underpaid taxes, totaling RMB 2.0242 million. The above tax administrative penalty involved violations that occurred before October 2015. Since the change in control of the company to Guangdong Guangsheng Holdings Group Co., Ltd. in October 2016, the company has gradually conducted self-inspection and standardized internal management of its operations, strengthening responsibility awareness at all levels. The company will handle historical issues correctly in accordance with the law, enhance communication with administrative authorities, and further study relevant laws and regulations to prevent such situations from happening again.