Jiangsu United Water Technology (603291.SH) plans to increase its investment in e4E company to expand its presence in the related fields of green and low-carbon technology.

Jiangsu United Water Technology (603291.SH) announced that United Earth4Earth Holding (hereinafter referred to as "e4E Company") is a joint venture company in which the company has invested through its Hong Kong wholly-owned subsidiary Jiangsu United Water Technology (International Investment) Co., Ltd. (hereinafter referred to as "Jiangsu United Water Technology International Investment"). e4E Company is mainly engaged in the research and development of carbon reduction, carbon conversion, carbon capture, carbon sequestration technologies, as well as the research and development, production, and sales of carbon-absorbing new materials. In 2024, Jiangsu United Water Technology International Investment subscribed for 10,000 shares of e4E Company's newly issued A Series Convertible Preferred Stock with its own funds of RMB 30 million (converted into equivalent US dollars), acquiring 100% of the issued A Series Convertible Preferred Stock of e4E Company, accounting for 50% of the total issued shares of e4E Company (common stock + A Series Convertible Preferred Stock). Given the continuous acceleration of the development and commercialization of green and low-carbon technologies and the huge potential demand in the future market, Jiangsu United Water Technology International Investment, along with Shanghai Yixinhengshen Entrepreneurship Investment Partnership Enterprise (Limited Partnership) (hereinafter referred to as "Yixinhengshen Entrepreneurship Investment"), intends to jointly sign a "B Series Convertible Preferred Stock Purchase Agreement" with e4E Company. e4E Company plans to issue 3,200 shares of B Series Convertible Preferred Stock, with Jiangsu United Water Technology International Investment subscribing for 2,400 shares of B Series Convertible Preferred Stock with its own funds of RMB 24 million (converted into equivalent US dollars), and Yixinhengshen Entrepreneurship Investment subscribing for 800 shares of B Series Convertible Preferred Stock with cash of RMB 8 million (converted into equivalent US dollars). After this capital increase, Jiangsu United Water Technology International Investment will hold 100% of the issued A Series Convertible Preferred Stock of e4E Company and 75% of the issued B Series Convertible Preferred Stock of e4E Company. Jiangsu United Water Technology International Investment will hold a combined total of 53.45% of e4E Company's total issued shares (common stock + A Series Convertible Preferred Stock + B Series Convertible Preferred Stock). After this capital increase, Jiangsu United Water Technology International Investment, holding convertible preferred stock, will not control the board of directors and shareholders' meeting of e4E Company, nor have control over it. Therefore, e4E Company is not included in the consolidated financial statements of the company. The announcement stated that investing in e4E Company will help the company quickly establish a presence in the green and low-carbon technology field and further explore specific application scenarios, in line with the national dual-carbon strategy. At the same time, this external investment is also an important strategic move for the company to expand international business, accelerate internationalization, and lay out industrial investment through its Hong Kong subsidiary.