Chengdu Xingrong Environment (000598.SZ) announced on November 12 that its subsidiary, Xi Hui Water Environment Co., Ltd. (“Xi Hui Water Environment”), has launched the bidding process for the construction of the upgraded Tuanjie Township Sewerage Treatment Plant. After evaluation and public announcement, Chengdu Environmental Engineering & Construction Co., Ltd. (“Environmental Construction”), a wholly-owned subsidiary of the company's controlling shareholder, Chengdu Environment Investment Group Co., Ltd (“Chengdu Environment Group”), has been selected as the winning bidder with a total bid price of approximately RMB 0.17 billion. As Environmental Construction is a related party of the company, being a wholly-owned subsidiary of Chengdu Environment Group, this transaction constitutes a related-party transaction.

Project name: Tuanjie Township Sewerage Treatment Plant Upgrade Project; construction scale: the upgrading and expansion of Tuanjie Township Sewerage Treatment Plant (Phase I and II), and the introduction of Jiudaoyan Terminal Sewage Treatment Plant sewage into Tuanjie Sewerage Treatment Plant after upgrading. The processing capacity of Tuanjie Sewerage Treatment Plant will be 0.034 million tons/day after upgrading, and the provisional contract amount for this contract is approximately RMB 0.17 billion. The final settlement price shall be subject to the approved price.