CAPITAL ENV (03989) plans to invest 254 million yuan in the construction of a waste incineration heating and steam supply project in Yanjin County, Xinxiang City, Henan Province.

CAPITAL ENV (03989) announced that its wholly-owned subsidiary, Shenzhen Qianhai CAPITAL ENV Investment Co., Ltd. (Qianhai Shouchuang), plans to invest in the construction of a waste incineration heating and steam supply project in Yanjin County, Xinxiang City, Henan Province (the Project), with a total investment of 254 million RMB. Qianhai Shouchuang will establish a wholly-owned subsidiary, Yanjin County Shouchuang Heating Co., Ltd. (the company name will be finalized based on business registration), responsible for the entrusted operation of this project, with a registered capital expected to be 76.25 million RMB. The Project is located within the core manufacturing aggregation area of Xinxiang City, where the demand for steam is substantial. An intention to cooperate on steam supply has been reached with the advanced manufacturing development zone in Yanjin County and the municipal steam pipeline operator in the Xinxiang Economic and Technological Development Zone. The project will have an operating period of 29 years, and the return on investment will primarily come from steam supply revenue and waste processing service fees. Once completed, it will process 500 tons of waste daily and produce 250,000 tons of high-quality steam per year, effectively filling the regional steam supply gap.