On February 3, 2026, Shanxi Installation Group Co., Ltd. (Stock Code: 2520) (“Shanxi Installation”) entered into a joint venture agreement with Shanghai Jingyu and Shanxi Infrastructure. Under the agreement, the three parties will form a joint venture company to invest in a Build-Own-Operate (BOO) project, focused on constructing and operating a zero-liquid-discharge wastewater treatment facility.
Shanxi Installation will contribute RMB43.8962 million (55% of the registered capital), Shanghai Jingyu will contribute RMB27.9339 million (35%), and Shanxi Infrastructure will contribute RMB7.9811 million (10%). The total planned registered capital of the joint venture is RMB79.8112 million, payable by December 31, 2026. Upon establishment, the joint venture will become a non-wholly-owned subsidiary of Shanxi Installation and will be responsible for building, operating, and maintaining the wastewater treatment system. The project’s total investment is approximately RMB266.7 million, with the remainder (beyond equity investment) to be funded by external financing.
According to the announcement, Shanxi Infrastructure is a subsidiary of Shanxi Construction Investment Group Co., Ltd., the controlling shareholder of Shanxi Installation, and therefore constitutes a connected person under the Listing Rules. As one or more of the applicable percentage ratios related to the joint venture exceeds 0.1% but is less than 5%, the transaction falls under the reporting, announcement, and annual review requirements in Chapter 14A of the Listing Rules but is exempt from circular and independent shareholders’ approval requirements.
Shanxi Installation highlights that the project will operate for 20 years and is anticipated to offer long-term stable returns. It will also support the company’s strategic development in the low-carbon environmental protection sector by enhancing expertise in industrial wastewater treatment. The board of Shanxi Installation considers the terms of the transaction to be fair and reasonable and in the interests of the company and its shareholders as a whole.