Capital Environment Holdings Limited (03989) disclosed that, on February 12, 2026, two research and development agreements were signed involving its subsidiaries and associates of controlling shareholder Beijing Capital Eco-Environment Protection Group Co., Ltd. (Capital Eco Group). The transactions seek to enhance AI-driven waste incineration and sanitation capabilities, with total consideration to the Group, when aggregated, subject to reporting and announcement requirements under Chapter 14A of the Listing Rules yet exempt from independent shareholders’ approval.
Under Agreement 1, Capital Technology First Branch Company—together with Alibaba Cloud Computing Co., Ltd., Nanjing Fuli Automation Technology Co., Ltd., Beijing University of Civil Engineering and Architecture, Huizhou Guanghui Energy Company Limited, and Xinxiang Capital Solid Environmental Energy Limited—will jointly develop an intelligent automation platform for waste storage bunker and garbage crane, along with an AI-powered optimization control platform for waste incineration. The total contract price is RMB9.65 million; of this, RMB3.61 million will be attributable to the participating subsidiaries of Capital Environment. The project term extends until April 30, 2027.
Under Agreement 2, Collaborative Innovation Technology Co., Ltd. and Capital Environmental Sanitation Company Limited will focus on unmanned sweeping vehicles and AI-enhanced operations optimization in a pilot area, with the aim of creating a scalable intelligent sanitation solution. The total contract price is RMB5.69 million; RMB560,000 will be received by the Group’s sanitation subsidiary. The project runs from February 15, 2026, to February 15, 2028.
Capital Eco Group, which holds around 45.11% of Capital Environment’s issued shares, constitutes a connected person of the company. Since Collaborative Innovation Technology Co., Ltd. is an associate of Capital Eco Group, both agreements fall under connected transaction rules. Following aggregation under Rule 14A.81, one or more applicable percentage ratios exceed 0.1% but remain below 5%. As a result, the combined transactions meet reporting and announcement requirements but are exempt from independent shareholders’ approval. According to the announcement, the AI initiatives align with the Group’s broader strategy to improve efficiency, reduce emissions, and expand its involvement in smart waste management and related environmental services.