Chongqing Water Group expands wastewater capacity, forecasts increased related-party deals

Chongqing Water Group announced the acquisition of three wastewater treatment projects from Chongqing Water Affairs Environment Holding Group for a total of RMB 254,808,819.34. The acquisition includes the second phase expansion projects for Fusheng, Wulong, and Wansheng Nantong wastewater treatment plants, along with related assets and liabilities. This move is expected to enhance the company's market share and align with its strategic growth.

The acquisition, approved by the board on December 4, 2025, is a related-party transaction. Furthermore, the company forecasts a significant increase in its 2025 routine related-party transactions, raising the total estimated value from RMB 34.8 bn to RMB 51.026 bn. This additional RMB 16.226 bn in transactions primarily involves providing and purchasing water-related services from Chongqing Water Investment (Group) and leasing projects from Chongqing Water Affairs Environment Holding Group.

These transactions, including the acquisition, are valued at RMB 46.43928 bn, remaining within 5% of the company's latest audited net assets. Both the acquisition and the increased related-party transactions are considered normal operating activities, priced at fair market value, and are not expected to compromise the company's independence.