Subsidiary consortium of Dayu Irrigation Group (300021.SZ) pre-win the bid for the construction project of the intelligent water network (Southern Irrigation Area) at Hengshan Reservoir in Huili City, Sichuan Province.

Dayu Irrigation Group (300021.SZ) announced that on February 20, 2025, the Sichuan Province Public Resource Trading Information Network released the bid evaluation results for the Hengshan Reservoir Smart Water Network (Southern Irrigation District) Construction Project in Huili City. A consortium composed of the company's wholly-owned subsidiary, Gansu Dayu Irrigation Group Water Resources and Hydropower Engineering Co., Ltd., and Sichuan Shuifa Construction Co., Ltd. (the lead member of the consortium) became the first candidate for the bid for the construction project of the Hengshan Reservoir Smart Water Network (Southern Irrigation District) under a concession. The bid amount for this project is: agricultural water service fee unit price of 2.35 yuan/m, project duration of 40 years, with a construction period of 2 years and an operational period of 38 years. The total investment in the project is approximately 457 million yuan, and it is considered a medium-sized irrigation project. This pre-winning bid project is an important achievement in the company's firm implementation of the national rural revitalization and food security strategy, as well as the promotion of the "Three Rural Issues, Three Waters, and Three Networks" strategic concept. It also demonstrates the company's ability to participate in the construction of modernized irrigation districts in Sichuan Province. The project represents a beneficial exploration of water price reform under the concession operation model in Sichuan Province, and it is a practical implementation of long-term operation in the irrigation district, aligning with the company's development strategy. If the project is successfully awarded and implemented in the future, it will benefit the company in improving its technical capabilities in the construction of modernized large and medium-sized irrigation projects and in the operation and maintenance of modernized irrigation districts. It will also enhance the company's influence in Sichuan Province by further increasing the level of information technology in modernized irrigation district construction. The subsequent signing of a formal contract and successful implementation of the project will have a positive impact on the company's future operational performance.