Tianjin Chuangye Environmental Protection Group Co., Ltd. 2025 Annual Report Summary

Section 1 Important Notice

1. The summary of this annual report is derived from the full text of the annual report. To fully understand the company’s operating results, financial condition, and future development plans, investors should carefully read the full annual report on www.sse.com.cn.

2. The company’s board of directors, directors, and senior management guarantee the authenticity, accuracy, and completeness of the content of this annual report, and confirm that there are no false records, misleading statements, or major omissions, and assume individual and joint legal responsibilities.

3. All directors of the company attended the board meeting.

4. Daxin Certified Public Accountants (Special General Partnership) issued an standard unqualified audit report for the company.

5. The profit distribution plan or capital reserve conversion plan approved by the board of directors:

After audit by Daxin Certified Public Accountants (Special General Partnership), the net profit attributable to the parent company’s shareholders for 2025 is RMB 862,357,236.56. Deducting the statutory surplus reserve of RMB 88,649,352.90 according to the Company Law of the People’s Republic of China and the company’s Articles of Association, plus the undistributed profit at the beginning of the year of RMB 6,133,464,906.76, minus the cash dividends of RMB 266,971,074.45 distributed for 2024, the actual distributable profit for shareholders in this year is RMB 6,640,201,715.97.

Based on the company’s production and operation conditions and capital status, to safeguard investors’ interests and actively reward investors, according to the company’s profit distribution policy, it is proposed that in 2025, RMB 2.09 (including tax) in cash dividends be distributed for every 10 shares to all shareholders, totaling RMB 328,217,379.77. The cash dividend payout ratio is 38.06% of the net profit attributable to the parent company’s shareholders for 2025. Capital reserve will not be converted into share capital in 2025.

This distribution plan is subject to approval at the 2025 annual general meeting of shareholders.

As of the end of the reporting period, the parent company has unresolved losses and their impact on dividends and other matters.

□Applicable √Not applicable

Section 2 Basic Information of the Company

1. Company Profile

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2. Main Business Overview during the Reporting Period

In October 2025, the Fourth Plenary Session of the 20th Central Committee of the Communist Party of China approved the “Proposal of the Central Committee of the Communist Party of China on Formulating the 15th Five-Year Plan for National Economic and Social Development,” which not only outlined the grand blueprint for economic and social development during the “Fifteen-Five” period but also explicitly set “new major progress in the construction of Beautiful China, peak carbon emissions achieved with steady decline afterward, and continuous improvement of ecological environment quality” as one of the development goals. The deployment for these goals includes: first, continuing to deepen pollution prevention and ecological system optimization, strengthening multi-pollutant synergistic control and regional governance, fighting the blue sky, clear water, and clean land battles, implementing solid waste comprehensive management actions, and improving environmental quality stability; second, promoting green transformation, accelerating the construction of a new energy system, scientifically planning pumped storage, vigorously developing new energy storage, accelerating smart grid and microgrid construction, and comprehensively enhancing the complementarity, resilience, and safety of the power system; third, actively and prudently advancing and achieving carbon peaking, improving the carbon emission statistics and accounting system, steadily implementing local carbon assessments, industry carbon control, corporate carbon management, project carbon evaluation, and product carbon footprint policies, strengthening carbon management infrastructure, market mechanisms, energy structure transformation, and emission reduction in key areas; fourth, accelerating the formation of green production and lifestyle, integrating green concepts into the entire economic and social chain, promoting industrial green upgrading, energy efficiency, green living advocacy, and urban-rural green development.

Overall, this is a critical period for the transition from the construction of Beautiful China to a new stage, driven by carbon peaking and carbon neutrality, with coordinated efforts to reduce carbon, pollution, expand green areas, and grow the economy. The environmental protection industry is moving toward systematic, platform-based, and comprehensive solutions, achieving overall improvement in industry functions and efficiency. For environmental protection enterprises, this involves shifting strategic positioning from “pollution control vendors” to “green value creators,” transforming from “traditional, single pollution control” to “green infrastructure construction + circular economy system building + urban integrated smart operation.” The core business model emphasizes pollution and carbon reduction synergy, driven by technological innovation and business model innovation, utilizing “technology empowerment, technology enabling, and technology leading” to achieve industry upgrading. Companies capable of providing comprehensive environmental solutions through strategic positioning, market layout, and capacity building will be more competitive.

This group focuses on the “dual carbon” goal, leading technological R&D and production innovation with green and low-carbon development, concentrating on wastewater treatment, recycled water utilization, sludge resource utilization, solid waste disposal, resource recycling, new energy cooling and heating, photovoltaic energy storage, and other businesses, and deeply developing the “N-dimensional integrated” business model.

During the reporting period, the company’s business scope and operating model remained unchanged from the previous year, still composed of basic and strategic new businesses. Basic businesses include municipal sewage treatment, water supply, recycled water, etc., which are the main sources of revenue and profit; strategic new businesses include new energy cooling and heating, sludge disposal and resource utilization, hazardous waste, photovoltaic power generation, and energy storage, which complement the basic businesses in profitability, added value, and investment recovery period, optimizing the overall business structure.

In the reporting period, the company invested in the Xianyang Road Phase II sewage treatment project, increasing the scale of equity-based sewage treatment by 150k cubic meters/day, terminated the implementation of Enshi City Dashaba Phase I and II (Tanjiaoba) sewage treatment plants and supporting pipelines, as well as Chibi City Lushui Industrial Park sewage treatment plant and supporting pipelines, reducing the scale of equity-based sewage treatment by 140k cubic meters/day. Additionally, a new recycled water project using DiaoDao investor + EPC + O model was added, increasing recycled water capacity by 50k cubic meters/day, with 54 km of pipelines connected throughout the year. Other water services remained unchanged. As of the end of the reporting period, the total water service capacity was 150k cubic meters/day, with equity water services at 6.1251 million cubic meters/day, including sewage treatment (5.2801 million), water supply (140k), recycled water (0.53 million). These projects are distributed across 15 provinces and autonomous regions nationwide; under entrusted operation mode, sewage treatment capacity is 50k cubic meters/day.

Units: 10,000 cubic meters/day

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Sewage treatment, water supply business models mainly adopt BOT, TOT, PPP; recycled water business mainly earns revenue from production and sales of recycled water and providing pipeline connection services, with no significant change from the beginning of the period.

During the reporting period, the company’s strategic new businesses mainly include:

(1) New energy cooling and heating: as of the end of the reporting period, total service area is 6.96 million square meters, mainly in Tianjin, with BOT and entrusted operation as the main models.

(2) Distributed photovoltaic power projects: as of the end of the reporting period, total designed capacity is 35 MWp, mainly in Tianjin and Dalian; market-based pricing is the main operation mode.

(3) Energy storage: total designed capacity is 22.381 MWh, with the Beishiqiao Sewage Treatment Plant in Xi’an as the company’s first energy storage project, with a capacity of 5.5 MWh; the company’s off-site sewage plant user-side energy storage projects are steadily advancing, with a total capacity of 16.876 MWh.

(4) Hazardous waste: during the reporting period, the implementation of Tancheng comprehensive material ecological disposal center project was terminated. As of the end of the period, the company owns four projects with a total disposal capacity of 181.3k tons/year, mainly in Shandong and Jiangsu provinces: Jiangsu Yonghui hazardous waste project (30k tons/year), Gaoyou Kangbo hazardous waste project (30k tons/year), Tancheng industrial waste disposal center (28k tons/year), Yishui Lushan Chemical Park hazardous waste disposal center (93.3k tons/year); one storage and transfer project of 20k tons/year; waste utilization PAC products of 75k tons/year. Under the condition of obtaining hazardous waste business licenses, the hazardous waste business adopts a fully market-oriented operation mode, guided by local government pricing, selecting waste-producing units independently, and charging for hazardous waste disposal services.

(5) Sludge disposal: as of the end of the period, total scale is 36,300 tons/day, mainly in Tianjin, Gansu, Zhejiang, Anhui. Equity sludge disposal projects include Linxia sludge project and Jinnan sludge plant, with a scale of 8,900 tons/day; other sludge disposal projects operate under entrusted mode, with a scale of 27,400 tons/day.

3. Main Financial Data and Indicators

3.1 Key financial data and indicators for the past three years

Units: RMB Yuan

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3.2 Key quarterly financial data during the reporting period

Units: RMB Yuan

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Differences between quarterly data and disclosed periodic reports

□Applicable √Not applicable

4. Shareholder Information

4.1 Total number of common shareholders, shareholders with restored voting rights of preferred shares, shareholders holding shares with special voting rights, and the top 10 shareholders at the end of the reporting period and one month before the disclosure of the annual report

Units: Shares

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4.2 Ownership and control relationship diagram between the company and controlling shareholders

√Applicable □Not applicable

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4.3 Ownership and control relationship diagram between the company and actual controllers

√Applicable □Not applicable

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4.4 Top 10 shareholders and total preferred shareholders at the end of the reporting period

□Applicable √Not applicable

5. Company Bonds

√Applicable □Not applicable

5.1 Bonds existing as of the approval date of the annual report

Units: RMB Yuan

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5.2 Bond interest payments and redemption during the reporting period

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5.3 Changes in credit ratings assigned by credit rating agencies to the company or bonds during the reporting period

□Applicable √Not applicable

5.4 Main financial data and indicators for the past two years

√Applicable □Not applicable

Units: RMB 10,000 Yuan

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Section 3 Important Matters

1. The company shall disclose major changes in operating conditions during the reporting period and significant matters that have or are expected to have a major impact on the company’s operations, based on the principle of materiality.

During the reporting period, the company’s overall operations remained stable. Compared with the previous year, there were no major changes in the main business, which still include sewage treatment, tap water supply, recycled water, new energy cooling and heating, road tolls, hazardous waste, and technological achievements transformation, which are the main sources of the company’s annual performance. In 2025, operating income was RMB 4,760.07 million, a decrease of 1.40% from the previous year; total profit was RMB 1,150.62 million, an increase of 9.89%; net profit attributable to the parent was RMB 862.36 million, an increase of 6.83%.

2. If the company’s annual report discloses delisting risk warnings or termination of listing, the reasons for such risks or termination shall be disclosed.

□Applicable √Not applicable

Stock Code: 600874 Stock Abbreviation: Chuangye Huanbao Announcement No.: Lin 2026-010

Bond Code: 243568 Bond Abbreviation: GK Jin Chuang 01

Tianjin Chuangye Environmental Protection Group Co., Ltd.

Announcement on Continuing to Engage the Accounting Firm

The company’s board of directors and all directors guarantee that this announcement contains no false records, misleading statements, or major omissions, and bear legal responsibility for its truthfulness, accuracy, and completeness.

Important Notice:

● Proposed accounting firm: Daxin Certified Public Accountants (Special General Partnership)

1. Basic information of the proposed accounting firm

(1) Organization information

1. Organization info

Daxin Certified Public Accountants (Special General Partnership) (hereinafter “Daxin”) was established in 1985, restructured into a special general partnership in March 2012, headquartered in Beijing, with registered address at 22nd Floor, No. 1 Zhichun Road, Haidian District. Daxin has 33 branches nationwide, a branch in Hong Kong, and initiated the Daxin International Accounting Network in 2017, currently with 48 network member firms in the US, Canada, Australia, Germany, France, UK, Singapore, etc. Daxin is one of the earliest Chinese CPA firms engaged in securities services, among the first to obtain H-share audit qualifications, with over 30 years of securities business experience.

2. Personnel info

Chief Partner: Mr. Xie Zemin. As of December 31, 2025, Daxin employed 3,914 staff, including 182 partners and 1,053 CPAs. Over 500 CPAs have signed securities service audit reports.

3. Business info

In 2024, revenue was RMB 6.45M, serving over 10,000 companies. Revenue breakdown: audit RMB 315k, securities RMB 405 million. In 2024, 221 listed company audit clients (including H-shares), average assets RMB 323k, total fees RMB 282 million. Mainly in manufacturing, information technology, power, science and tech services, water and environment, and public facilities. Our industry peers have 7 listed audit clients.

4. Investor protection capacity

Professional insurance and risk fund combined exceed RMB 200 million, with proper provisions and coverage.

5. Integrity record

In the past three years, no criminal penalties, 10 administrative penalties, 16 regulatory measures, and 18 disciplinary actions. 67 staff members with no criminal penalties, 25 with administrative penalties, 34 with regulatory measures, and 46 with disciplinary actions.

(2) Project info

1. Basic info

Proposed signing partner: Mr. Shi Chenqi

Mr. Shi Chenqi, partner, qualified CPA, CPA since 2010, engaged in listed company audits since 2013, practicing at this firm since 2013. Signed or reviewed 5 listed company audit reports in the past three years.

Proposed signing CPA: Mr. Liu Yong

Mr. Liu Yong, partner, CPA since 2008, engaged in listed company audits since 2010, practicing at this firm since 2013. Signed or reviewed 3 listed company audit reports in the past three years.

Proposed signing CPA: Ms. Tian Yuhan

Ms. Tian Yuhan, CPA since 2022, engaged in listed company audits since 2020, practicing at this firm since 2024. Signed or reviewed 0 listed company audit reports in the past three years.

Project quality review personnel: Mr. Zhu Xueliang

Mr. Zhu Xueliang, CPA and asset appraiser, CPA since 2009, engaged in audit quality review for listed and listed companies since 2014, practicing at this firm since 2022, reviewed over 5 listed company audit reports in the past three years.

2. Integrity record

Proposed signing partners, CPA signers, and review personnel have no criminal penalties or regulatory sanctions in the past three years.

3. Independence

No violations of CPA ethical requirements, no holding or trading of company shares, and no other economic interests affecting independence. Regular rotation complies with regulations.

4. Audit fee

The audit fee is determined through open bidding based on work volume and fairness. The fee for the 2026 financial statement audit project is RMB 3.09 million (internal control audit RMB 520k). For 2025, the fee was RMB 3.09 million (internal control RMB 520k).

Second, procedures for the proposed renewal of the accounting firm

(1) Audit and risk control committee review

The committee believes Daxin has rich experience in listed company audits, qualified and capable. During the 2025 audit, Daxin strictly followed laws, regulations, ethics, independence, objectivity, and fairness, and performed according to standards. Its professional competence, investor protection, independence, and integrity meet requirements. The committee agrees to renew Daxin as the company’s 2026 financial and internal control auditor, and submits this to the 10th Board for approval.

(2) Board review and voting

The 10th Board approved the proposal to continue engaging Daxin as external auditor and authorized the shareholders’ meeting to approve this appointment. The Board believes this aligns with laws, regulations, and the company’s needs, and benefits long-term interests. The proposal will be submitted to the 2025 annual general meeting.

(3) The renewal is subject to approval at the 2025 shareholders’ meeting and takes effect upon approval.

This announcement is made accordingly.

Tianjin Chuangye Environmental Protection Group Co., Ltd.

Board of Directors

March 25, 2026