Chengbang EcoEnvironment (603316.SH) plans to increase capital by no more than RMB 58 million to acquire 51% equity of Xincun Technology, and develop new productive forces.

Chengbang EcoEnvironment (603316.SH) announced that in order to optimize its business structure, develop new productive forces, and acquire new profit growth points, the company signed a Capital Cooperation Framework Agreement with the ultimate controller of Dongguan Xincun Electronic Technology Co., Ltd. (referred to as "Xincun Technology"), Wen Yu, registered shareholder Zi Yinghua, and Xincun Technology on September 19, 2024. The parties reached a preliminary agreement on the company's plan to acquire 51% of Xincun Technology's equity through a cash increase of no more than 58 million yuan. After the completion of this transaction, the company is expected to achieve financial consolidation with Xincun Technology. In recent years, the company's main business of ecological environment construction has faced significant challenges due to various factors. To address this, the company's development strategy is to steadily develop its existing ecological environment construction business and to enter high-technology and relatively cash-rich industries in the "new infrastructure" and "specialized, refined, unique, and new" sectors through investment and acquisition. By further optimizing its business structure, the company aims to enhance its industry position and core competitiveness. While continuing to develop its existing ecological environment construction business, the company also aims to acquire 51% of Xincun Technology's equity through this capital increase to develop new productive forces, acquire new profit growth points, and enhance the profitability of the listed company. Therefore, the planned capital cooperation is based on the long-term development needs of the company, aligns with its long-term plans and the interests of all shareholders, and will have a positive impact on the growth of its future main business. The Capital Cooperation Framework Agreement has not yet been signed into a formal capital increase agreement. Before the formal agreement is signed and implemented, the performance of this Capital Cooperation Framework Agreement will not have a significant impact on the company's performance.