SHANXI INSTALL (02520) announced that on February 3, 2026, the Company, Shanghai Jingyu, and Shanxi Infrastructure entered into a joint venture agreement to establish a joint venture company for investing in a Build-Own-Operate (BOO) project. Under the agreement, SHANXI INSTALL, Shanghai Jingyu, and Shanxi Infrastructure will contribute RMB 43.8962 million, RMB 27.9339 million, and RMB 7.9811 million, respectively, representing 55%, 35%, and 10% of the joint venture's registered capital. The Company's capital contribution will be funded from its internal resources. Once established, the joint venture will become a non-wholly owned subsidiary of SHANXI INSTALL. The purpose of forming the joint venture is to invest in the BOO project, which involves the construction and operation of a zero-liquid-discharge facility for the Shanxi Lanhua Energy Conservation and Environmental Protection Upgrade Project, including systems for wastewater treatment, domestic sewage reuse, saline wastewater treatment, concentrated brine treatment, and evaporation crystallization. The joint venture company will be responsible for the construction, operation, and maintenance of the BOO project and will collect fees for wastewater treatment services. The total investment for the BOO project is estimated to be RMB 267 million; aside from the equity investment from the joint venture parties for establishing the company, the remaining funds will be obtained through external financing. The BOO project has an estimated construction period of 15 months and an operational service term of 20 years, with post-term cooperation matters to be renegotiated by the parties. The Board of Directors anticipates that the BOO project will bring the following benefits to the Company: with an operational cycle potentially lasting up to 20 years, the project is expected to provide long-term, sustainable investment returns, enhancing the Company's profitability and risk resilience. By investing in the BOO project, the Company can further solidify its market position in the industrial wastewater treatment sector and refine its environmental industry chain integrating "solid waste + water services," aligning with its long-term strategy for low-carbon environmental protection development. The Company will gain experience in municipal wastewater treatment projects through operating the joint venture, and the implementation of the BOO project will strengthen its technical capabilities in the challenging field of high-difficulty industrial wastewater treatment. In accordance with Shanxi Province's requirements, coking/coal chemical enterprises must be equipped with zero-liquid-discharge wastewater facilities; as a provincial-level upgrade project, the BOO initiative holds demonstrative significance, providing the Company with experience and a foundation for subsequently undertaking similar projects for other enterprises within the province.