Beijing Enterprises Water Group Limited (stock code: 371) announced the signing of a new 2026 Deposit Services Master Agreement with BG Finance on 13 February 2026, covering a term from 13 February 2026 to 31 December 2028. This agreement will replace the existing 2024 Deposit Services Master Agreement (supplemented by the 2025 Supplemental Agreement).

Under the existing arrangements, the Group’s maximum daily outstanding deposit balances with BG Finance cannot exceed RMB980.00 million per year. Cumulative deposits have continued to rise, approaching RMB907.01 million for the financial year ended 31 December 2025. To accommodate increasing operational needs, the new document sets Proposed Annual Caps at RMB2.57 billion for each of the financial years ending 31 December 2026, 2027, and 2028.

BG Finance, an associate of two controlling shareholders of the Company, will continue offering deposit services on terms stated to be at least as favorable as those in the broader banking market. The objective is to secure efficient and flexible fund management for the Group, with non-exclusive terms allowing the Group to maintain relationships with other financial institutions if required.

Because the applicable ratios exceed 5% under the Listing Rules, the agreement’s Proposed Annual Caps constitute non-exempt continuing connected transactions and require independent shareholders’ approval. A special general meeting will be convened, and any controlling shareholders and their associates must abstain from voting on the proposal. A circular containing details of the transaction and a notice of meeting is expected to be distributed on or before 11 March 2026. Shareholders and potential investors are advised to exercise caution when dealing in the Company’s securities and to consult professional advisers if in doubt.