Xinjiang Communications Construction Group (002941.SZ) plans to invest 33 million yuan to acquire 66% equity of Shule Huitong Iron Material Special Line Pipe Operation Service Company.

Xinjiang Communications Construction Group (002941.SZ) announced that the company plans to sign a "Capital Increase and Stock Expansion Agreement" with Yelejiaowu Construction Development Co., Ltd. ("Yelejiaowu Company"). The agreement stipulates that the company will invest in Yelehuitong Railway Special Line Pipe Operation and Service Co., Ltd. ("Yelehuitong Company") in the form of capital increase, with a total investment amount of 33 million yuan. After this capital increase and stock expansion, the company will hold 66% of the shares, while Yelejiaowu Company will hold 34% of the shares. Yelehuitong Company will be responsible for organizing the investment, financing, construction, operation, and maintenance of the Yelehuitong project. It is reported that the newly built Yelehuitong Railway Special Line project ("Yelehuitong project") has a preliminary design estimated total investment of 656 million yuan, with construction and installation costs of 430 million yuan, and a construction period of 2 years. Once the project is completed and opened to traffic, it will mainly serve the industrial, agricultural and import and export goods in the southern part of Kashgar region and Yele county. This project will not only bring investment returns and increase operating income to the company, but also continuously promote the development and strengthening of the emerging railway sector on the basis of consolidating traditional businesses such as construction. It will also boost the development of the railway industry.