HC ENV TECH (02265) announced that on January 26, 2026, the buyer, Shandong Jinjia Environmental Protection Co., Ltd. (an indirect wholly-owned subsidiary of the Company), entered into a sale and purchase agreement with the sellers (Mr. Sheng Yunti and Ms. Sheng Wenfeng). Pursuant to the agreement, the buyer conditionally agreed to acquire, and the sellers conditionally agreed to sell, the equity interest (which collectively represents 100% of the equity of the target company, Laizhou Jinxing Chemical Co., Ltd.) for a total consideration of RMB 71.17 million. As of the date of this announcement, the target company is 96% and 4% owned by Seller A and Seller B, respectively. Upon completion, the buyer will hold the entire equity interest of the target company, making it an indirect wholly-owned subsidiary of the Company, and consequently, the financial performance of the target company will be consolidated into the Group's financial statements. As of the announcement date, the primary assets of the target company include the land use right for an industrial plot located in the Yinhai Chemical Industrial Park in Laizhou City, Shandong Province, China, with a total area of approximately 175,200 square meters, expiring in June 2072; properties under construction, including plants, buildings, and warehouses, with a current gross floor area of approximately 125,100 square meters; and other infrastructure, production lines, and machinery. The primary assets of the target company include the land use right for an industrial plot located in the Yinhai Chemical Industrial Park in Laizhou City, Shandong Province, China. This site is adjacent to the Group's existing plant, which is also located within the same industrial park. Following the acquisition, the Group will proceed to complete the construction and obtain the necessary administrative approvals. Based on the Directors' best estimate, and subject to obtaining relevant regulatory approvals, the primary assets of the target company are expected to commence operations as the Group's new production facility no later than the third quarter of 2026. Consolidating operations within the same industrial park is anticipated to enhance management efficiency, streamline logistics, and enable resource sharing between the two production bases. The Group currently operates a plant dedicated to the reprocessing of pyrite concentrate for sulfuric acid production, achieving outputs of approximately 219,300 tons and 224,200 tons in 2024 and 2025, respectively, with capacity utilization rates of 91.4% and 93.4%. Once the target company is fully operational, it is expected to provide an additional sulfuric acid production capacity of approximately 200,000 tons through pyrite concentrate reprocessing. This move will substantially increase the Group's overall production capacity, enabling it to capture a larger market share and meet growing customer demand. The Directors believe that, compared to building a new plant from the ground up, the acquisition allows the Group to acquire land, infrastructure, and production facilities that are already under construction. This approach is expected to reduce development risks and time costs, thereby facilitating a more timely commencement of production. Furthermore, the target company's primary assets include production lines for sulfamic acid and magnesium sulfate, which are downstream products of sulfuric acid. Therefore, the acquisition is expected to accelerate the diversification of the Group's product supply, generate new revenue streams, and further consolidate its business portfolio.