Taizhou Water Group (1542) reported an ongoing connected transaction involving the provision of raw water from Changtan Reservoir. Since January 1, 2026, Huangyan Reservoir Development has continued supplying raw water under previous arrangements, while both parties negotiate the 2026 Huangyan Reservoir Water Supply Framework Agreement. The new agreement is to cover a term from January 1, 2026 to December 31, 2028.

According to official data, the historical transaction amount for January 2026 reached approximately RMB7.3 million. Under the proposed terms, the annual cap for payments to Huangyan Reservoir Development is expected to be RMB80 million each year until December 31, 2028. The pricing follows water rates approved by Taizhou Development and Reform Commission.

Huangyan Reservoir Development is deemed a connected person to Taizhou Water Group because of its ownership structure, making these transactions subject to reporting, announcement, annual review, and in some instances Independent Shareholders’ approval under Hong Kong listing rules. Taizhou Water Group attributes the delay in finalizing a written agreement to extended internal approvals needed by Huangyan Reservoir Development but confirms that raw water supply continues uninterrupted, ensuring a stable service for local residents and municipal providers in Taizhou.