On January 29, 2026, Yuanda Engineering Company, a non-wholly-owned indirect subsidiary of the Company, entered into an Engineering, Procurement, and Construction (EPC) contract with Dazhou Energy. Under this agreement, Yuanda Engineering will provide system design, equipment procurement, construction and installation, and other technical support services for the desulfurization system of the Dazhou project, for a total consideration of RMB 199 million.
Yuanda Engineering has agreed to act as the general contractor, delivering a comprehensive suite of services for the Dazhou project's desulfurization system. These services encompass system design, equipment procurement, transportation and storage, construction and installation, commissioning, completion certification, training, performance quality assurance, final delivery, and follow-up services covering the entire defect liability period. During the defect liability period, which spans one year after the final system unit completes its 168-hour full-load test run, Yuanda Engineering is obligated to rectify any defects or damage that may arise.
Amid increasingly stringent flue gas emission standards for coal-fired power plants in China, Yuanda Engineering leverages its specialized expertise to offer desulfurization engineering contracting services, assisting clients in meeting regulatory requirements. By securing the EPC contract for the Dazhou project's desulfurization system, Yuanda Engineering is positioned to expand its market share in the flue gas treatment sector and solidify its standing in the environmental protection field, thereby advancing the Group's strategic objective of transitioning into a green, low-carbon energy provider.
The contract value is consistent with the prevailing market rates charged by other companies for providing comparable services on similar desulfurization systems. The Board of Directors believes that the consideration and the associated terms of the EPC contract are no less favorable than those obtainable from an independent third party.