Group 1 - The company, Zhongyuan Environmental Protection Co., Ltd., has approved the acquisition of the Zhengzhou Sanhuan and Sihuan recycled water pipeline assets through a public bidding process during the third extraordinary shareholders' meeting held on December 22, 2025 [2] - On December 25, 2025, the Zhengzhou Public Resource Trading Center announced Zhongyuan Environmental Protection as the acquirer of the Sanhuan and Sihuan recycled water pipeline assets, and agreements were signed with the Zhengzhou Municipal Facilities Affairs Center and the Zhengzhou Urban Management Bureau [2] Group 2 - The company has completed the delivery of the Sanhuan recycled water pipeline assets and signed the asset delivery confirmation. From the date of delivery, all rights, benefits, and risks associated with the Sanhuan recycled water pipeline assets have transferred to Zhongyuan Environmental Protection [3] - Within 12 months from the asset delivery date, the Zhengzhou Municipal Facilities Affairs Center and the Zhengzhou Urban Management Bureau are responsible for conducting the final audit of the Shangyi Road recycled water pipeline project and transferring all related documents and procedures to Zhongyuan Environmental Protection [3]

Core Viewpoint - Zhongyuan Environmental Protection (000544.SZ) plans to acquire the Zhengzhou Municipal Facilities Affairs Center's assets related to the Zhengzhou Third and Fourth Ring Reclaimed Water Pipeline through a public bidding process, with the total valuation set at RMB 1.45764 billion [1][2]. Group 1 - The company intends to acquire the Third and Fourth Ring assets, which will be utilized for reclaimed water industrial use, urban miscellaneous use, clean energy utilization, and ecological landscape replenishment [1]. - The assets are being publicly auctioned with a starting price of RMB 1.45764 billion, as assessed by Henan Mingdao Real Estate Asset Appraisal Co., Ltd. using the cost method [1]. - The final acquisition price and whether the company will successfully become the buyer remain uncertain [1]. Group 2 - A portion of the Third Ring assets originally belonged to the company's controlling shareholder, Zhengzhou Public Utilities Investment Development Group Co., Ltd., through its wholly-owned subsidiary, Zhengzhou Public Run City Water Conservancy Co., Ltd. [2]. - The Third Ring assets were transferred without compensation to the Zhengzhou Urban Management Bureau on November 17, 2025, and subsequently to the Municipal Facilities Center on November 18, 2025 [2]. - Given the short timeframe of the transfer and the relationship with the controlling shareholder, if the company successfully bids, the transaction will be classified as a related party transaction [2].