Xingyuan Environment: The government repurchased the franchise rights of Chengdong Wastewater Treatment Plant with an asset value of 28.9467 million yuan.

Xingyuan Environment Announcement: Due to changes in environmental policies and reasons such as exceeding the influent standards, the concession period of the Fujian Province Zhao'an County Chengdong sewage treatment plant operated by Zhangzhou Xingyuan Waterworks Co., Ltd., a wholly-owned subsidiary of the company, has been terminated in advance. According to the agreement, the People's Government of Sidu Town, Zhao'an County, will repurchase the concession rights assets of the sewage treatment plant for 28.9467 million yuan. This transaction does not constitute a related party transaction or a major asset restructuring, and does not require approval of the shareholders' meeting. The early termination of this transaction is conducive to optimizing the company's resource allocation and will not have a significant impact on the company's normal operations.