Chongqing Water Group to acquire three sewage treatment plants for $381.5m

Chongqing Water Group (the Company) announced a resolution from its board of directors on December 12, 2025, to acquire three sewage treatment plant expansion projects. Specifically, its subsidiaries will acquire assets and related debts from Chongqing Water Environment Holdings Group Co. Ltd. for the Nanchuan Dongcheng, Guoyuan, and Yuexilai sewage treatment plant phase II expansion projects.

The total assessed value of the assets to be acquired is yuan 444,424,295.71, with liabilities valued at yuan 62,896,894.71, resulting in a net asset value and transaction price of yuan 381,527,401.00. The Nanchuan Dongcheng project's net assets are assessed at yuan 21,219,650.00, representing a decrease of yuan 177,830.57 (7.73%) from their book value. The Guoyuan project's net assets are assessed at yuan 100,256,000.00, a decrease of yuan 4,579,548.54 (4.37%) from their book value. The Yuexilai project's net assets are assessed at yuan 259,997,751.00, a decrease of yuan 13,004,801.38 (4.76%) from their book value.

The acquisitions, based on appraisals as of September 30, 2025, await approval from the Company’s shareholders. The board also approved the convening of the Fifth Interim Shareholders' Meeting in 2025 to discuss the acquisition.