XREC's subsidiary bidding, 663 million related party transactions approved

On September 9, 2025, XREC announced that its wholly-owned subsidiary, the Drainage Company, has publicly tendered for the construction section of the High-tech West District Water Quality Purification Center project. The controlling shareholder, Chengdu Environmental Group's wholly-owned subsidiary, Environmental Construction Company, won the bid with a bid price of RMB 663.3049 million, including tax. This transaction constitutes a related party transaction and has been exempted from the shareholders' meeting review by the Shenzhen Stock Exchange upon application, and does not require board review, thus not constituting a major asset reorganization. Environmental Construction Company is legally existing, operating normally, and has the capability to perform the contract. The contract duration is tentatively set at 600 days, and the transaction price is determined through bidding, which is in line with market levels and has no adverse impact on the company's finances or operations. From January 1, 2025, to the disclosure date, the company has accumulated related party transactions of approximately RMB 571 million