CEB WATER has announced the termination of the concession agreement for the Zhangcun River Water Quality Purification Plant Phase II and Phase I Upgrade Project located in Laoshan District, Qingdao.

The company entered into a termination agreement with the relevant contracting parties on June 5, 2026, to formally end the concession agreement.

Under this termination agreement, all parties involved have mutually agreed to release and discharge each other from their respective rights and obligations as stipulated in the original concession agreement.

Furthermore, the contracting parties have agreed that the group will be reimbursed for its relevant expenditures and costs incurred in connection with this project.

As of the date of this announcement, the project company for this venture had not yet been established.

Following the execution of the termination agreement, the group will not proceed with the implementation of this project.

The board of directors believes that signing the termination agreement aligns with the overall interests of the company and its shareholders, and it is not expected to have any material adverse impact on the group's existing business, operations, or financial condition.