XINGLU WATER (02281) and the Development Group of Urban and Rural Water Affairs in Xuyong County have entered into a cooperation agreement for the integrated urban and rural water supply and drainage project in Xuyong County.

XINGLU WATER (02281) announced that on March 20, 2026 (after trading hours), after negotiation and discussion, Xuyong County Urban and Rural Water Development Group Co., Ltd. and the company entered into a cooperation agreement on the integrated urban and rural water supply and drainage project in Xuyong County. According to the cooperation agreement, Xuyong County Urban and Rural Water Development Group Co., Ltd. and its wholly-owned subsidiary Sichuan Xingsu will contribute assets related to the urban and township domestic water supply business in Xuyong County and its subordinate towns, while the company's non-wholly-owned subsidiary Xuanlu will contribute assets related to the urban domestic sewage treatment plant in Xuyong County and accounts receivable from sewage treatment for the sewage treatment plant. After the capital increase, the registered capital of Xingsu Water will increase to RMB 172 million, with the company and Xuanlu jointly holding 51% of the shares and Sichuan Xingsu holding 49%. Xingsu Water will operate the domestic water supply and sewage treatment business in Xuyong County's urban areas and subordinate towns (including sewage treatment in Xuyong County urban areas that has been entrusted to Yongxing Water Environment for operation, as well as sewage treatment in towns and rural areas). Integrated urban and rural water supply and drainage at the county level is a national strategy to ensure the water supply safety of urban and rural residents and comprehensively protect the ecological environment. Signing the cooperation agreement is the company's active response to the national strategy. The cooperation project will help the group expand its business to all county towns and subordinate town areas of Xuyong County, aligning with the group's strategy to expand its business scale for sustained and stable growth, enhance its reputation, develop its customer base, and set a benchmark for future projects.