WATER INDUSTRY (01129) announced that on April 10, 2026, the company entered into a formal restructuring deed with the International Finance Corporation (IFC) to amend and supplement the existing IFC loan agreement. Under this deed, the company and IFC have conditionally agreed to revise certain terms of the loan agreement to implement a proposed debt restructuring. This restructuring will involve, among other items: (i) utilizing a bridge loan of HKD 131 million (approximately RMB 118 million) within eight business days after the deed's execution to settle a portion of the IFC debt (the first restructuring payment); (ii) issuing convertible bonds; (iii) using the proceeds from the first tranche of convertible bonds to fully repay the HKD 131 million bridge loan principal within five business days after fulfilling (or obtaining a waiver for) the conditions precedent in the subscription agreement; (iv) applying the proceeds from subsequent tranches of convertible bonds to repay the remaining IFC debt; (v) establishing and perfecting security over certain bank accounts of New China Water and the company in favor of IFC; and (vi) adjusting the proposed repayment dates for the IFC debt as outlined in the accompanying schedule. The proposed repayment schedule for the IFC debt aligns with the subscription timetable for the convertible bonds. The proceeds from the first bond tranche will be used to clear the bridge loan, while proceeds from subsequently subscribed bonds will be allocated to repay the IFC debt and other liabilities of the company. The completion dates for each bond tranche correspond to the restructured repayment dates for the IFC debt. The board believes that restructuring the repayment schedule through this deed provides the company with necessary financial flexibility, reducing the risk of facing liquidation, and is therefore in the overall interests of the company and its shareholders. As of the announcement date, no court has issued a winding-up order against the company. The company will endeavor to fulfill the conditions of the restructuring deed, maintain proactive communication with the petitioner and supporting creditors, and work towards an amicable resolution of relevant issues, including seeking the withdrawal or dismissal of the petition, under principles fair to other creditors.