Xingrong Environmental subsidiary awards large wastewater treatment contract

Chengdu Xingrong Environmental Co., Ltd. (Xingrong Environmental) announced that its wholly-owned subsidiary, Chengdu Drainage Co., Ltd., has awarded a construction contract for the High-tech West District Water Purification Center Project. Chengdu Environmental Engineering Construction Co., Ltd. (Environmental Construction Co.) was the successful bidder with a tax-inclusive price of CNY 663,304,900.00.

Environmental Construction Co. is a wholly-owned subsidiary of Chengdu Environmental Investment Group Co., Ltd., Xingrong Environmental's controlling shareholder. This makes the transaction a connected one. Due to its value, the transaction meets the threshold for shareholder general meeting review according to Shenzhen Stock Exchange rules, though the company has applied for an exemption. The project is located within the High-tech West District's urban ecological belt and has an estimated construction period of 600 calendar days.

The company stated that the transaction, decided through public bidding, ensures fair and transparent pricing, aligning with market levels. It is not expected to adversely affect Xingrong Environmental's financial position or operating results and will not compromise the company's independence. As of the disclosure date, cumulative connected transactions between Xingrong Environmental and Chengdu Environmental Group and its subsidiaries from January 1, 2025, total approximately CNY 571,000,000.00.