The WATER INDUSTRY (01129) has entered into a formal restructuring agreement with IFC to amend and supplement the IFC loan agreement.

The WATER INDUSTRY (01129) announcement was made on April 10, 2026, that the company has entered into a formal restructuring agreement with IFC to amend and supplement the IFC loan agreement. Under this agreement, the company and IFC conditionally agreed to revise certain terms of the IFC loan agreement to implement the proposed debt restructuring of the company. The restructuring will involve (including but not limited to): (i) Within 8 business days after the date of the restructuring agreement, utilizing a bridge loan of HK$131 million (equivalent to approximately RMB 118 million) to partially repay the IFC debt (first restructuring payment); (ii) Issuance of convertible bonds; (iii) Within 5 business days after the fulfillment (or waiver) of the conditions precedent in the subscription agreement, utilizing the proceeds from the first batch of convertible bonds to fully repay the bridge loan principal of HK$131 million (equivalent to approximately RMB 118 million); (iv) Utilizing the proceeds from future batches of convertible bonds to repay the IFC debt; (v) Setting up and perfecting guarantees for several bank accounts of New China Water and the company for the benefit of IFC; and (vi) Proposed repayment dates for the restructuring of IFC debt as indicated in the above table. The proposed repayment schedule for the IFC debt coincides with the subscription timetable for the convertible bonds, where the bond proceeds from the first batch will be used to repay the bridge loan, and the bond proceeds from subsequent batches subscribed will be used to repay the IFC debt and other liabilities of the company. The completion dates for each batch of convertible bonds will coincide with the restructuring repayment dates of the IFC debt. The Board considers that entering into the restructuring agreement to revise the repayment dates of the IFC debt will provide the company with sufficient breathing room to reduce the risk of liquidation, thereby serving the overall interests of the company and its shareholders. As of the date of this announcement, no winding-up order has been issued by the court to liquidate the company. The company will endeavor to fulfill the conditions of the restructuring agreement, maintain active and good communication with the petitioner and the supporting creditors, and negotiate in a friendly manner with the petitioner and the supporting creditors on a fair basis to properly address related issues (including making efforts to have the petition withdrawn or dismissed as soon as possible).