Due to the adjustment of electricity price in Shandong, an enterprise terminated the investment in two distributed photovoltaic projects.

On July 10, Venture Environmental Protection announced that its holding subsidiary Jiayuan Xinchuang Company's distributed photovoltaic power generation project in other cities, including two sub-projects, was implemented in Yishui Hazardous Waste Plant and Wendeng Sewage Treatment Plant, two projects of the company located in Shandong Province. The total investment is 18.82 million yuan.

Due to the introduction of electricity price adjustment policy in Shandong Province in November 2022, the adjusted time-sharing electricity price and time-sharing interval of industry and commerce have undergone significant changes, and the applicable electricity price in the daytime of photovoltaic system work has been significantly reduced. The internal rate of return of the project capital calculated according to the original design scheme and the adjusted process scheme could not meet the company's investment income requirements, so the board of directors agreed that Jiayuan Xinchuang Company terminated the distributed photovoltaic power generation project in other cities. On November 29,

2022, the Shandong Development and Reform Commission issued a circular on matters related to the time-of-use electricity price policy for industry and commerce, in order to give full play to the positive role of price leverage in promoting energy conservation and emission reduction and optimizing the allocation of resources, and to effectively link up the time-of-use electricity price policy with the price signals of the spot electricity market, and to promote the time-of-use electricity price policy. Decided to further improve the time-of-use electricity price policy for industry and commerce.

The floating proportion is as follows:

floating by 70% during peak hours, floating by 70% during valley hours, floating by 100% during peak hours, and floating by 90%

during valley hours. The periods are divided into:

from February to May every year, The daily peak period (including the peak period) from September to November is 5 hours, the valley period (including the deep valley period) is 5 hours, and the normal period is 14 hours;

the daily peak period (including the peak period) in January, June-August, and December is 6 hours, the valley period (including the deep valley period) is 6 hours, and the normal period is 12 hours. In principle, the

peak and deep valley periods shall not exceed 1095 hours throughout the year. It will be implemented from January 1, 2023.