Taizhou Water Group Co., Ltd. (Taizhou Water) has entered into a new Huangyan Reservoir Water Supply Framework Agreement with Huangyan Reservoir Development on 31 March 2026, securing the continued provision of raw water from the Changtan Reservoir for a term lasting until 31 December 2028.
The agreement maintains existing commercial terms: pricing is based on rates approved and adjusted by the Taizhou Development and Reform Commission, and settlement will be made monthly according to actual volumes supplied.
Historical procurement from Changtan Reservoir totalled RMB 43.10 million in 2023, RMB 84.40 million in 2024 and RMB 70.90 million in 2025. Reflecting these figures and the permitted water-intake quota, Taizhou Water has set an annual cap of RMB 80.00 million for each of the three years ending 31 December 2028.
Huangyan Reservoir Development is an indirect wholly-owned subsidiary of Taizhou Huangyan State-owned Capital Investment Operation Group Co., Ltd., the parent of Yongning Financial Consulting, which holds about 13.34% of Taizhou Water. The transaction therefore constitutes a continuing connected transaction under Chapter 14A of the Hong Kong Listing Rules. As the applicable percentage ratios exceed 5%, the arrangement requires reporting, announcement, annual review and independent shareholders’ approval. Yongning Financial Consulting and its associates will abstain from voting.
An Independent Board Committee comprising all independent non-executive directors will review the framework agreement, with Honestum International Limited engaged as independent financial adviser. A circular containing further details and a notice of a general meeting is scheduled for dispatch on or before 15 April 2026.
Taizhou Water’s board states that the agreement secures a stable raw water supply from the city’s largest reservoir, supporting ongoing operations, and confirms that terms are on normal commercial footing. Non-executive director Ms. Fang Ya, nominated by Yongning Financial Consulting, abstained from the relevant board vote; no other director was required to abstain.