C CARBONNEUTRAL (01372) has announced the formal signing of a strategic cooperation agreement with the People's Government of Hua County on March 23, 2026. The partnership will leverage the respective strengths of both parties in areas such as regional governance, policy guidance, resource integration, comprehensive carbon neutrality services, new energy technology application, and digital technology. The collaboration aims to jointly promote the development of a green, low-carbon, and circular economy at the county level and establish a long-term, stable strategic partnership.

The Hua County Government, the administrative body of Hua County in Henan Province, possesses extensive industrial application scenarios in agriculture, transportation, and energy. It is actively promoting high-quality economic and social development alongside a green transformation for the region. Hua County's capabilities in industrial planning, policy guidance, and resource integration make it an ideal partner for exploring low-carbon development models at the county level.

According to the agreement, the two parties will engage in in-depth cooperation focusing on the following key areas: 1. Dual-carbon Planning and Carbon Emission Management: Assisting Hua County in conducting regional carbon emission inventories, planning dual-carbon pathways, and establishing a carbon management system for key industries to enhance the local government's carbon governance capabilities. 2. Smart Energy and Microgrid Development: Jointly advancing the planning and construction of urban microgrids and smart energy management systems to improve regional energy efficiency and renewable energy integration capacity. 3. Transportation Electrification and Battery Closed-Loop Management: Promoting power battery iteration, cascade utilization, and closed-loop management for centralized operational vehicles like buses and heavy-duty trucks, while co-building a distributed charging and battery swapping network. 4. Exploration of Agricultural Machinery Electrification: Exploring the technical pathways and demonstration applications for converting agricultural machinery from fossil fuels to electricity, thereby promoting energy saving and emission reduction in the agricultural sector. 5. Co-building a Circular Economy Industrial Ecosystem: Collaborating on directions such as waste material recycling, resource regeneration, and green supply chains to jointly establish an industrial ecosystem for a county-level circular economy. 6. Carbon Asset Development and Model Innovation: Leveraging Hua County's resources in forestry, agriculture, and new energy to jointly develop carbon sink assets and explore digital management and financial applications for carbon assets.

As the first implemented project under this strategic cooperation, the initial phase of the microgrid smart battery swapping project, involving 20 swapping cabinets, officially commenced construction on April 24, 2026, and is expected to begin operations in early May. This project adopts a "swapping over charging" model and is projected to serve approximately 300 delivery riders and 1,000 residential users daily.

This strategic partnership represents a proactive response to the national "dual-carbon" strategy and is a significant practice for the group in extending its comprehensive carbon neutrality services to the county level. The rapid implementation of the microgrid smart battery swapping project demonstrates the group's efficient execution from agreement signing to project commencement, as well as the alignment of its technical solutions with the practical needs of the county.

The cooperation is expected to bring multiple strategic benefits to the group: 1. Tapping into the County-level Carbon Neutrality Market: As a major agricultural county, Hua County offers abundant carbon sink resources and new energy application scenarios, providing new growth opportunities for the group's businesses in carbon asset development, smart energy, and the circular economy. 2. Building a Replicable "County-level Dual-Carbon Services" Business Model: Through this cooperation, the group will develop an integrated county-level solution covering planning, technology, data, carbon assets, and finance, possessing the capability for nationwide replication. 3. Strengthening Carbon Asset Development and Digital Capabilities: By utilizing Hua County's resources in agriculture, forestry, and photovoltaics, the group will develop various types of carbon credits and utilize its blockchain and digital trading platform for asset verification and circulation. 4. Enhancing Brand Influence and Policy Synergy: Deep collaboration with a county-level government helps the group build a strong reputation at the local government level, laying the foundation for securing future government contracts and policy support.