Taizhou Water Group Co., Ltd. (Taizhou Water, 01542 HK) announced that, since 1 January 2026, it has continued to source raw water from Changtan Reservoir through Huangyan Reservoir Development without signing the 2026 Huangyan Reservoir Water Supply Framework Agreement, resulting in a continuing connected transaction valued at approximately RMB15.00 million.

Huangyan Reservoir Development is an indirect wholly-owned subsidiary of Taizhou Huangyan State-owned Capital Investment Operation Group, the holding company of Yongning Financial Consulting, which owns about 13.34% of Taizhou Water’s issued share capital. This shareholding status makes Huangyan Reservoir Development a connected person under Chapter 14A of the Hong Kong Listing Rules.

Because one or more applicable percentage ratios for the RMB15.00 million transaction exceed 5%, the deal falls under the reporting, announcement, annual review and independent shareholders’ approval requirements. The absence of a written agreement and prior independent shareholders’ approval constitutes a breach of Rules 14A.34, 14A.35 and 14A.36.

Taizhou Water attributes the lapse to a prolonged internal approval process at Huangyan Reservoir Development. The company states it is negotiating the 2026 Framework Agreement and will issue the necessary announcement and circular, and seek independent shareholders’ approval, once the agreement is finalized.

Taizhou Water is a leading water supply service provider in Taizhou, engaged in raw-water and municipal-water supply, direct tap-water distribution and pipeline installation. Huangyan Reservoir Development focuses on reservoir construction, operation and raw-water sales and is ultimately wholly owned by the Finance Bureau of Huangyan District of Taizhou.