China Energy Conservation and Environmental Protection Technology Co., Ltd. 2025 Annual Report Summary

Stock Code: 300388 Stock Abbreviation: Energy Conservation Guozhen Announcement No.: 2026-003

1. Important Reminders

This summary of the annual report is derived from the full annual report. To fully understand the company’s operating results, financial condition, and future development plans, investors should carefully read the full annual report published in the media designated by the China Securities Regulatory Commission.

All directors have attended the board meeting that reviewed this report.

Dahua Certified Public Accountants(Special General Partnership) issued an unqualified opinion on the company’s financial statements for the year: standard unqualified opinion.

Notice of Non-Standard Audit Opinions

□ Applicable √ Not applicable

The company was unprofitable at listing and has not yet achieved profitability.

□ Applicable √ Not applicable

Profit distribution plan or capital reserve conversion plan approved by the board of directors for the reporting period.

√ Applicable □ Not applicable

The profit distribution plan approved by the board of directors for this period is: based on 681,042,231 shares, a cash dividend of RMB 0.31 per 10 shares (tax included) will be distributed to all shareholders; no bonus shares will be issued (tax included); and the capital reserve will be converted into 0 shares per 10 shares for all shareholders.

The preferred stock profit distribution plan approved by the board of directors for this reporting period.

□ Applicable □ Not applicable

2. Basic Information of the Company

3. Company Introduction

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2. Main Business or Product Introduction for the Reporting Period

(1) Business scope and main business of the company

The company has long been committed to the comprehensive utilization and development of water resources, serving over twenty provinces, cities, autonomous regions, and directly administered municipalities across China. It has established and owns a complete industrial chain advantage, providing clients with project investment, technological R&D, design and construction, equipment manufacturing and integration, and project operation services in the environmental protection field. In recent years, the company has focused on urban water environment management, industrial wastewater treatment, and rural water environment management. Upholding the mission of “making the sky bluer, the mountains greener, the water clearer, and life better,” it aims to create a clean, beautiful, harmonious living environment for humanity.

1. Urban Water Environment Comprehensive Management

Includes investment, construction, and operation of municipal sewage treatment plants and pipelines; black and odorous water body management, river standard upgrading; basin comprehensive management (rivers, lakes, etc.) and landscape improvement; water ecological restoration, water quality purification and maintenance in parks, scenic spots, schools, and other dispersed areas; ecological deep treatment of effluent from urban sewage treatment plants; and treatment of domestic sewage. For different scales and water quality requirements, the company has established a complete industrial ecological chain, providing integrated solutions and implementation platforms, focusing on technical solution optimization and later smart operation and maintenance.

2. Industrial Wastewater Treatment

The company’s controlling subsidiary, Maiwang Environmental Technology Co., Ltd., is a leading domestic provider of environmental protection and energy services in the industrial sector. It possesses zero discharge technology, refractory wastewater treatment technology, integrated biological reactors, sludge harmless treatment technology, high-efficiency anaerobic devices, and advanced technologies and equipment such as vortex gas flotation and sequential aeration flotation. As a pioneer supplier of zero industrial wastewater discharge, it can solve clients’ full-process solutions from wastewater, reuse water, concentrated saltwater, to zero discharge. It has successfully completed hundreds of projects in industries including petrochemical, coal chemical, chemical, steel, coking, pharmaceuticals, food and beverage, automotive manufacturing, dyeing, and municipal sectors.

3. Rural Water Environment Management

The company offers comprehensive solutions including planning, design, investment, construction, and operation. It adapts to local conditions by constructing new water supply and drainage facilities, improving domestic sewage, domestic waste, village roads, and ditches, and enhancing rural infrastructure and drinking water safety. Considering China’s large rural population, dispersed spatial distribution, small wastewater discharge, water quality fluctuations, and intermittent discharge, the company has launched multiple integrated process solutions combining decentralized drainage planning, advanced efficient integrated sewage treatment equipment, the latest IoT and smart operation technologies, characterized by layout economy, small land footprint, standardized equipment selection, low maintenance costs, and automated, intelligent operation.

(2) Main Business Models

The company’s business models mainly include investment operation, environmental engineering EPC, water treatment equipment manufacturing and sales, and water environment design consulting, as detailed below:

1. Investment Operation

This involves acquiring operating rights for projects in water services such as drainage networks and pump stations, urban and rural sewage treatment plants, basin management, and industrial wastewater treatment through PPP, BOT, TOT, BOO, and entrusted operation models. The company establishes project companies as needed for investment and management. By operating and maintaining drainage networks and pump stations, it ensures urban drainage safety; by controlling and operating equipment and facilities, it reduces pollutants in sewage from treatment plants and basin projects, purifying water quality to meet discharge standards and water quality assessment sections.

2. Environmental Engineering EPC

This service involves full design, procurement, construction, and commissioning of water pollution control projects entrusted by clients, under EPC contracts. The company is responsible for project quality, schedule, and investment costs, providing cost-effective EPC services. Some parts of the project are subcontracted to qualified enterprises, which are responsible to both the company and the client per subcontract agreements.

3. Water Treatment Equipment Manufacturing, Sales, and Integration

This includes research, design, processing, manufacturing, and integration of various equipment needed for municipal sewage treatment, rural water environment management, industrial wastewater treatment, and basin water environment management. Main equipment includes pretreatment, biochemical treatment, sludge-water separation, chemical dosing, high-efficiency aeration, deep treatment, industrial wastewater treatment, rural town integrated sewage treatment, and treatment facilities for urban rivers and lakes. Catering to the diverse and differentiated needs of water pollution control projects, the company provides standard and non-standard equipment, spare parts for operators, and on-site installation guidance and commissioning services for construction units.

4. Water Environment Design and Consulting

This service provides professional consulting and technical guidance for water pollution control projects based on customer needs and investments, offering integrated solutions for municipal sewage, rural sewage, industrial wastewater, and basin management, supporting project construction and equipment installation with scientifically feasible implementation basis.

3. Key Financial Data and Indicators

(1) Main financial data and indicators for the past three years

Does the company need to retrospectively adjust or restate previous years’ financial data?

□ Yes √ No

Yuan

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(2) Key quarterly financial data

Unit: Yuan

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Are the above financial indicators or their totals significantly different from the related financial indicators disclosed in the company’s quarterly or semi-annual reports?

□ Yes √ No

4. Share Capital and Shareholder Information

(1) Top 10 shareholders and shareholders with voting rights restored, and their shareholding status

Unit: Shares

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Shareholders holding more than 5%, top 10 shareholders, and top 10 unrestricted circulating shareholders involved in securities lending and borrowing

□ Applicable √ Not applicable

Changes in shareholding due to securities lending/return by the top 10 shareholders and top 10 unrestricted circulating shareholders

□ Applicable √ Not applicable

Does the company have arrangements for differences in voting rights?

□ Applicable √ Not applicable

(2) Total number of preferred shareholders and top 10 preferred shareholders’ shareholding

The company had no preferred shareholders during the reporting period.

(3) Disclose the ownership and control relationship between the company and the actual controller in a block diagram

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5. Bonds Outstanding as of the date of approval of the annual report

□ Applicable √ Not applicable

3. Important Matters

None