Luzhou Xinglu Water (Group) Co., Ltd. (Stock code: 2281) entered into a Service Contract on October 31, 2025, with Xinglu Property Management, a wholly owned subsidiary of its controlling shareholder. The contract covers landscaping and cleaning services for office premises, water treatment plants, and other water supply facilities. The term is two years, from October 31, 2025, to October 30, 2027, with an annual service fee of approximately RMB1.4223 million, paid quarterly.

Historical data show that similar management fees paid to Xinglu Property Management by the group reached RMB3.599 million in 2022, RMB4.094 million in 2023, and RMB4.259 million in 2024. Looking ahead, the new arrangement sets out annual caps for the years ending December 31, 2025, 2026, and 2027, as well as up to August 25, 2028, taking into account ongoing transactions under previous service agreements.

Under the Listing Rules, as Xinglu Property Management is a connected person of the company, this transaction constitutes a continuing connected transaction. However, because the applicable percentage ratios exceed 0.1% but remain below 5%, only the reporting and announcement requirements apply, exempt from the need for a circular or independent shareholders’ approval. The board views the terms of the Service Contract as fair and reasonable, conducted on normal commercial terms, and in the ordinary course of business.