Reference is made to the overseas regulatory announcement of the Company dated 10 April 2023 in relation to the successful bidding for the franchising project of Enshi Dasha Dam Phase I and Phase II (Tanjia Dam) Sewage Treatment Plants and their supporting pipelines; the overseas regulatory announcement of the company dated 23 May 2023 in relation to the investment in the franchising project of Ensh Dasha Dam Phase I and phase II (Tanjia Dam") Sewage Treatment Plants and their support pipelines and the establishment of the project company; and the discloseable transaction announcement of the Company dated 18 June 2023 in relation to the franchizing project of Enshi Dasha dam Phase I and Phase II (Tanjia Dam) Sewage treatment Plants and their supporting pipelines (collectively the " Announcements"). Unless the context otherwise requires, terms used in this announcement shall have the same meaning as those defined in the Announcements. The Company has considered and approved the Resolution in relation to the Termination of the Franchising Project of Enshi Dasha Dam phase I and Phase II (TanJia Dam) Sewage Treatment plants and Their Supporting Pipelines at the seventieth meeting of the ninth session of the Board of the Company held on 14 November 2025.

Due to the adjustment to the policy pertaining to the new PPP mechanism, the Board has agreed to terminate the Project. The Project involves no private capital participation, and provisions concerning, among others, minimum water volume and availability service fees within the JV Agreement and the Project Agreement are inconsistent with "No. 115 Circular".

On 31 January 2024, the eighth executive meeting of the National Development and Reform Commission adopted the Administrative Measures for Concession Operations in Infrastructure and Public Utilities () (2024 Order No. 17). As the notice of successful bid for the Project was issued on 10 April 2023, it constitutes a franchising project where the bidding and procurement procedures were not completed prior to February 2023.

Accordingly, it shall be implemented in accordance with "Order No. 17". On 4 February 2024, the Project Company received notification from the Enshi Municipal Government, requiring a rectification in accordance with the Guidelines on Regulating the Implementation of New Government and Social Capital Cooperation Mechanisms () (Guobanhan No.

115), as directed by the Hubei Provincial Development and Reform Commission. The Enshi Municipal Government submitted a rectification plan to the Hubei Provincial Development & Reform Commission in the way of termination of the project franchising, and held an ad hoc meeting to terminate the relevant matters explicitly. Subsequently, the Company, Wuhan Municipal and the Project maintained ongoing communications with the Enshi Municipal Housing and Construction Bureau and other relevant departments regarding the termination of relevant arrangements and reached mutual understandings.

Based on the above, the Board has agreed to terminated the Project. Upon analysis, the Company is of the view that the termination of the Project could achieve a balance in the investment and will not have an impact on the operation and development of the Company. Upon deliberation, the Board approved the termination of the Project by the Project by the Project.