XINGLU WATER (02281) subsidiary entered into a sludge disposal service contract with Xinglu Environmental Protection.

Xinglu Water (02281) announced that on March 31, 2026 (after trading hours), the company's non-wholly owned subsidiary, Xinglu Sewage Treatment and Xinglu Environmental Protection, entered into a sludge disposal service contract (Service Contract). Under this agreement, Xinglu Environmental Protection agrees to provide sludge disposal services to Xinglu Sewage Treatment. Xinglu Environmental Protection is currently the only institution in the Luzhou area capable of disposing of sludge through incineration. In accordance with the relevant requirements for protecting the ecological environment in Sichuan Province implemented by Luzhou City, Xinglu Sewage Treatment will entrust Xinglu Environmental Protection to dispose of the sludge, which will effectively prevent safety and environmental risks in the production and operation process of Xinglu Sewage Treatment. The directors (including independent non-executive directors) believe that the transaction terms under the Service Contract are fair and reasonable, made on general commercial terms, and are conducted in the group's general and day-to-day business processes, benefiting the overall interests of the company and shareholders.