Water Industry (01129) announced that on September 26, 2025, the company (as purchaser) entered into two non-binding memorandums of understanding with Seller A (Zhang Zhilong) and Seller B (Li Xueying) regarding the possible Acquisition A for the company to acquire all limited partnership interests in the target limited partnership (Zhejiang FTZ Shanxing Enterprise Management Consulting Partnership (Limited Partnership)); and with Seller C (Beijing Kangyun Information Consulting Center (Limited Partnership)) regarding the possible Acquisition B for the company to acquire 1% equity interest in the target company (Beijing Suishenbao Information Technology Co., Ltd.).

The target limited partnership is a limited partnership established under Chinese law, primarily engaged in providing consulting business services, including marketing and information technology services. The target company is a company established in China, primarily engaged in designing and developing intellectual property; providing software application services and related training courses; and providing customized marketing services for new media businesses.

Although the sustainable development of China's environmental protection industry continues to face unprecedented severe challenges, the company has prioritized business transformation as its top priority, steadfastly focusing on the market positioning of "China biomass gas operation service provider," striving to achieve long-term development in fierce market competition. To further enhance the group's profitability and sustainable development, the board of directors is actively evaluating opportunities to expand existing businesses and/or invest in new businesses to broaden the group's revenue base.

The possible acquisitions, once implemented, will present an attractive investment opportunity for the group to participate in China's information technology business. This is expected to help diversify the group's revenue sources and enhance shareholder returns. Furthermore, the company has noted that the introduction of Internet of Things (IoT) technology and artificial intelligence (AI) across various industries has become a global trend, and business digitalization has become inevitable. Therefore, the directors believe that the digital solutions market has promising prospects with excellent development potential.