CANVEST ENV (01381) subsidiary Ying County Guangdong Fengshou received an administrative decision.

Canvest ENV (01381) announces that on April 7, 2025, the company received an administrative decision from the Housing and Urban-Rural Development Bureau of Xinyi City, Guangdong Province (the Bureau) regarding the performance under the concession operation contract of Xinyi CANVEST ENV Power Co., Ltd. (Xinyi Yuefeng), an indirect wholly-owned subsidiary of the company, for the Xinyi Green Energy Environmental Protection Power Generation Project. According to the decision, Xinyi Yuefeng was found to have received solid waste incineration fly ash generated outside Xinyi City without prior consent from the Bureau from 2020 to March 2024, and disposed of the fly ash at the designated landfill site specified in the contract, generating revenue of RMB 108 million. The Bureau has ordered Xinyi Yuefeng to compensate the amount to the Xinyi City Government within 15 days of receiving the decision. Under the decision, Xinyi Yuefeng may: (i) submit an administrative reconsideration to the Xinyi City Government within 60 days of receiving the decision, or (ii) file an administrative lawsuit with the Maonan District People's Court of Maoming City within six months of receiving the decision. The company has assessed the content of the decision and after careful consideration, has decided to file an administrative lawsuit against the decision in accordance with applicable laws and regulations. The company is committed to maintaining the highest standards of corporate governance and compliance with all applicable laws and regulations. The company will take all necessary measures to protect the interests of the company and its shareholders. The company is actively pursuing the administrative lawsuit. As the administrative litigation process is still in its early stages, the company is unable to fully assess the impact of the decision. However, the Board believes that the decision will not have any significant adverse impact on the operations of the group, and the business and operations of the group remain normal. The company will make further announcements in accordance with the relevant listing rules to inform shareholders and potential investors of any further significant developments in the administrative lawsuit. Shareholders and potential investors are advised to exercise caution when buying or selling securities of the company.