Beijing Capital Eco-Environment Protection Group (600008.SH) announced on June 4th that, in response to the request of the Hohhot Municipal Party Committee and Municipal Government, the company terminated the franchise agreement previously signed with the competent department of Hohhot City through negotiation, and gradually returned the transfer price that Beijing Capital Source Clear had already paid and paid corresponding interests. In addition, Beijing Capital Source Clear intends to sign the 'Hohhot Bendinying Sewage Treatment Plant Phase III Project Entrusted Operation Agreement' with Hohhot Housing and Urban-Rural Development Bureau. After the agreement is signed, Beijing Capital Source Clear will be responsible for the operation, management, and maintenance of the Bendinying Sewage Treatment Plant Phase III Project in the form of commissioned operation.
This project has changed from a franchise model to a commissioned operation model to implement the company's strategic adjustment from heavy-asset investment to light-asset investment in Hohhot City. The change in project operation mode, while ensuring that the company continues to hold the operating rights, improves the company's cash flow and helps the company achieve sustainable development.