According to the Zhitong Finance App, Shanghai Industrial Environment (00807) announced the progress of eight projects located in China, with a total processing scale of 197,500 tons. Among them, the total processing scale of 3 projects of 70,000 tons was raised; the total processing scale of the 3 projects was raised by 92,500 tons; 1 project was expanded by 15,000 tons; and the franchise period was extended for 1 20,000 ton project.

The 177,500-ton project received bid upgrades, price increases, and expansion

Shangshi Environmental (Beiliu) Sewage Treatment Co., Ltd., an indirect wholly-owned subsidiary of Shangshi Environmental, recently received a letter from the government regarding price increases for the Beiliu City Sewage Treatment Plant Project Phase I Project (Beiliu Phase I Project) and the Beiliu City Sewage Treatment Plant Expansion Project (Beiliu Expansion Project) to increase sewage treatment costs from January 2024. The design and treatment scale of the first phase of the Beiliu Phase I project is 40,000 tons/day, the design and treatment scale of the Beiliu expansion project is 40,000 tons/day, and all effluents implement Level A standards.

Shangshi Environmental, which indirectly holds 75.5% of the subsidiary Shangshi Environmental (Zaozhuang Yicheng) Sewage Treatment Co., Ltd., signed a bid increase agreement with the Zaozhuang Yicheng District Sewage Treatment Center Project (Yicheng Project) with the Zaozhuang Yicheng District Municipal People's Government. The total design and processing scale of the Yicheng project is 40,000 tons/day, including the first phase of the Yicheng project and the second phase of the Yicheng project. It was agreed that the effluent standards for the first phase of the Yicheng project and the second phase of the Yicheng project will be raised from Level A to quasi-Class IV standards, and the treatment price will be raised after the bid upgrade is completed.

Shangshi Environmental indirectly holds 98.76% of its subsidiary Shangshi United (Zaozhuang) Sewage Treatment Co., Ltd., and signed a bid increase agreement with the Zaozhuang Yicheng District Sewage Treatment Plant Expansion Project Phase I Project (Yicheng Expansion Project) with the Zaozhuang Yicheng District Sewage Treatment Plant Expansion Project. It was agreed that the effluent standard for the Yicheng expansion project would be raised from Level A to a quasi-Class IV standard, and that the treatment price would be raised after the bid upgrade was completed. The design and processing scale of the Yicheng expansion project is 30,000 tons/day.

Shangshi Environmental indirectly holds 60% of its subsidiary Lianxi Xianggang (Nanchang) Water Service Co., Ltd., and signed an expansion agreement with the Nanchang County Urban Management and Comprehensive Law Enforcement Bureau for the Xiangtang Development Zone Sewage Treatment Plant Project (Xiangtang Project). This expansion part has a design treatment scale of 15,000 tons/day, and the effluent implements Level A standards.

Anxi Southern Water Co., Ltd., an indirect wholly-owned subsidiary of Shangshi Environmental, recently received approval from the government to raise the price of the BOT Project Phase I (Longmen Phase I Project) for the Longmen Town Sewage Treatment Plant in Anxi County. The price increase dates back to November 1, 2023. The first phase of the Longmen project has a design and treatment scale of 12,500 tons/day. The effluent implements Class B standards, and the bid is awaiting construction.

20,000 ton project extends franchise period

Kaifa Xinquan Water (Taizhou) Co., Ltd., an indirect wholly-owned subsidiary of Shangshi Environmental, signed a supplementary agreement with the Taizhou Pharmaceutical High-tech Zone (Gaogang District) Binjiang Industrial Park Management Office to extend the 10-year franchise period using the TOT model after the expiration of the Binjiang Phase I project. The Binjiang Phase I project has a design treatment scale of 20,000 tons/day, and the effluent implements Level A standards.

The above projects are expected to make a positive contribution to the Group's performance.