Chongqing Water Group projects significant rise in 2025 related party transactions

Chongqing Water Group Co., Ltd. has projected an increase in its 2025 recurring related party transactions, with the total estimated amount rising from an initial CNY34.8bn to CNY51.026bn, representing a new increase of CNY16.226bn. This was approved by the company's board of directors at its twelfth meeting on March 31, 2025, and subsequently at its twenty-first meeting on December 4, 2025, following a review by independent directors. The increase does not exceed 5% of the company's latest audited net assets and therefore does not require shareholder approval.

Key transactions contributing to this increase include new related party purchases of products, goods, and acceptance of services from Chongqing Water Conservancy Investment (Group) Co., Ltd. totaling CNY3.3bn, and new sales of products, goods, and provision of services to the same entity amounting to CNY10.924bn. Additionally, lease payments to Chongqing Water Environmental Holdings Group Co., Ltd. for the fourth phase of the Jiguan Stone Wastewater Treatment Plant project are projected to increase by CNY2.002bn, reaching CNY25.167bn.

The related party transactions are considered normal operating activities, adhering to fair, just, and reasonable pricing principles. The company expects these transactions will not lead to reliance on related parties or compromise its independence. Chongqing Water Group states that, as the largest professional water supply and drainage enterprise in Chongqing, these transactions will leverage related party resources and advantages, optimize resource allocation, reduce management and procurement costs, and enhance revenue and profit, strengthening its market position.