Road Environment Technology Co., Ltd (688156.SH), a subsidiary of Jinsha Road, plans to increase capital and expand shares to introduce the Guizhou Ecological Fund and optimize governance structure.

Road Environment Technology Co., Ltd. (688156.SH) Announcement: The company's wholly-owned subsidiary, LuDe Biological Environmental Protection Technology (Jinsha) Co., Ltd. (referred to as "Jinsha LuDe"), plans to implement capital increase and expansion by introducing investors. The Guizhou Province Ecological Environmental Protection Development Equity Investment Fund Partnership Enterprise (Limited Partnership) (referred to as "Guizhou Ecological Fund") intends to subscribe to 32 million yuan in cash for the newly increased registered capital of Jinsha LuDe of 32 million yuan. The company waives its priority subscription rights for this capital increase. After the completion of this capital increase, the registered capital of Jinsha LuDe will increase to 112 million yuan. Guizhou Ecological Fund will hold 28.57% equity of Jinsha LuDe, and the company will hold 71.43% equity of Jinsha LuDe. Jinsha LuDe will still be a wholly-owned subsidiary within the company's consolidated financial statements. Jinsha LuDe is mainly engaged in the business of white wine dregs biotic fermentation feed. This capital increase and expansion will help optimize the governance structure of Jinsha LuDe, enhance its internal dynamics and comprehensive competitiveness, and provide financial support for the continuous investment in Jinsha LuDe's main business. It will improve Jinsha LuDe's asset structure and financial situation, align with the company's long-term development strategy, and help further enhance the company's core competitive advantages.