Tianjin Capital Environmental Protection Group Company Limited (Stock Code: 1065) has announced revisions to the annual caps for four EPC agreements under the Recycled Water Pipeline Network Connection Project in the Main District of Tianjin. These agreements—covering the Second, Third, Fourth, and Fifth Tender Sections (Second Batch)—involve Water Recycling Company (a wholly owned subsidiary of Tianjin Capital) and various connected counterparties including Railway Fifth Institute, Environmental Investment Company, Tianjin Municipal Institute, Expressway Construction, and Urban Construction Design Institute.

According to the announcement, the group projects that the existing limits for 2026 and 2027 will be insufficient to cover anticipated fees. The 2026 annual cap for the Second Tender Section (Second Batch) Agreement will rise from RMB2.40 million to approximately RMB43.65 million, and the Third Tender Section (Second Batch) Agreement cap will move from RMB2.43 million to about RMB35.71 million. In addition, the Fourth and Fifth Tender Sections (Second Batch) for 2026 will see their caps go from RMB0 to RMB4.52 million and RMB4.83 million, respectively. As a result, the aggregated cap for 2026 will increase from RMB4.83 million to about RMB88.71 million.

For 2027, the Fourth Tender Section (Second Batch) Agreement’s annual cap will shift from RMB0.48 million to RMB4.52 million, and the Fifth Tender Section (Second Batch) Agreement’s cap will change from RMB0.65 million to RMB4.83 million. The aggregated 2027 cap will thus rise from RMB1.13 million to RMB9.35 million.

The company states that the project’s settlement phase is underway, prompting higher anticipated settlement payments to connected parties. These revisions, which maintain other terms and conditions of existing agreements, are intended to ensure the project can continue progressing as planned. The transaction is classified as a continuing connected transaction under the Listing Rules but is exempt from the independent shareholders’ approval requirement, as all percentage ratios remain below 5%. The company emphasizes that revising the annual caps aligns with the normal progression of activities and supports the long-term operations of the recycled water facilities in Tianjin.