Gelonghui, March 29丨Zhongyuan Environmental Protection (000544.SZ) announced that the Bagang Sludge Treatment Plant is a sludge treatment plant operated by Zhengzhou Sewage Purification Co., Ltd. (“Purification Company”), a wholly-owned subsidiary of Zhongyuan Environmental Protection. In order to further dispose of the sludge products (nutritious soil) of Bagang Sludge Plant, the purification company plans to sign separate service contracts with the related party Zhengxing Environmental Energy Co., Ltd. (“Zhengxing Company”) and the related party Dongxing Environmental Energy Co., Ltd. (“Dongxing Company”). Xing Company and Dongxing Company are responsible for Bagang Sludge Plant The problem of subsequent disposal of sludge products (nutrient soil) is mixed with household waste and eventually incinerated.

The unit price for disposal of sludge products (nutritious soil) is 60 yuan/ton. The amount of sludge disposed of is transferred to Zhengxing Company and Dongxing Company for disposal according to the actual situation. The service fee is actually settled based on the final actual transfer and disposal volume. The total cost is estimated to be about 5.4 million yuan. The purification company pays Zheng Xing Company and Dongxing Company in accordance with the agreement.