Group 1 - The company intends to acquire the assets of Zhengzhou's Sanhuan and Sihuan recycled water pipelines through a public bidding process, with a total listing price of RMB 145,764.02 million [8][19][33] - The acquisition aligns with national policies promoting recycled water utilization, enhancing resource allocation and expanding the company's operational capabilities in the recycled water sector [37][39] - The company has established a dedicated recycled water division to drive market development and improve operational efficiency [38][40] Group 2 - The board of directors has approved the proposal to participate in the bidding for the assets, with a maximum bidding price not exceeding 5% of the listing price [11][50] - The acquisition is expected to enhance the company's profitability, with projected average annual net profits of RMB 12,576.57 million starting from 2031 [41][42] - The company plans to finance the acquisition through a combination of self-owned and raised funds, ensuring manageable cash flow during the initial investment phase [36][43] Group 3 - The Sanhuan assets include eight sub-assets, with a book value of RMB 44,471.43 million as of September 30, 2025, while the Sihuan assets are recorded as construction in progress with a book value of RMB 84,089.91 million [18][23] - The company has engaged third-party firms for due diligence and asset evaluation to ensure compliance and mitigate risks associated with the acquisition [9][10][24] - The acquisition is not expected to constitute a major asset restructuring as defined by relevant regulations [13]

Core Viewpoint - Ulaanbaatar City has actively promoted the construction of a national pilot city for reclaimed water utilization, exploring multi-water collaboration and achieving a reclaimed water utilization rate exceeding 90% [1] Group 1: Reclaimed Water Utilization - Ulaanbaatar City has implemented a unified configuration and scientific management of multiple water sources, including reclaimed water, mine water, brackish water, and rainwater [1] - The city has developed a comprehensive plan for reclaimed water utilization, including the "Three Zones, One Park, Multiple Points" layout to cover the entire city [1] - A total of 49 industrial enterprises have been configured to use reclaimed water, with a permitted water volume of 26.22 million cubic meters, effectively alleviating water supply issues for these enterprises [1] Group 2: Planning and Management - The city emphasizes planning as a guiding principle and has integrated reclaimed water into the overall water resource management system [1] - Ulaanbaatar has set annual minimum utilization targets for unconventional water sources, including reclaimed water, as part of the strictest water resource management assessment [1]