On January 17, 2024, Shanghai Dazhong Jiading Sewage Treatment Co., LTD. held the Distributed Photovoltaic Power Generation project groundbreaking ceremony. Zhang Rongzheng, Assistant President of the Compnay, Fan Jingchao, Executive Deputy General Manager of Shanghai Dazhong Jiading, Lai Xianbin, General Manager of Shanghai International Tourism Resort New Energy Co., LTD., and Chen Yonggang, Chairman of Hunan Xiaohao New Energy Co., LTD., attended the ceremony.

Zhang Rongzheng pointed out: As an important part of the modern energy system, the photovoltaic power generation industry has great significance in promoting modern urban construction and building a modern energy system. The construction of the "photovoltaic + water" mode effectively combines urban sewage treatment and photovoltaic power generation system, makes full use of the site space and maximizes the use of non-fossil energy.

Dazhong Jiading provides land for this distributed photovoltaic project and has the priority to the consumption of photovoltaic power generation. Huadian makes the initial investment and takes the responsibilities for subsequent operation and maintenance. Hunan Xiaohao undertakes the construction process. The project has a designed installed capacity of 8.82MWp, using a plant space area of about 60,000 square meters, and is expected to generate an annual average of 9.0132 billion kWh. The mode of spontaneous self-use and surplus power grid connection is adopted, giving priority to the use of Dazhong Jiading, thus greatly improving the self-sufficiency rate of clean energy in the plant. Compared with traditional thermal power, it can save 2,710.27 tons of standard coal and reduce CO2 emissions by 7,426.88 tons per year, which will greatly improve the Company's ESG level.

The total investment of the project is about RMB50 million, and Huadian will fully bear the pre-investment and subsequent operation and maintenance. Dazhong Jiading purchases electricity from Huadian at the 76% discount level of the national grid in the same period. The expected annual electricity cost savings is RMB1.5 million.