CSC Development (00830) plans to sell its 15% equity stake in Southwest China Construction Wall Material Technology for 7.5328 million yuan.

CSC Development (00830) announced that on December 31, 2025, the seller (a wholly-owned subsidiary of the company, Far East Li Jin Curtain Wall (Shanghai) Co., Ltd.) intends to sell 15% equity of the target company (China Southwest Institute of Architectural Design and Research Co., Ltd.) to the buyer (China State Construction Engineering Corporation Southwest Design Institute Co., Ltd.) for a price of RMB 7.5328 million. The business scope of the target company mainly covers the development, production, sales, and investment of building decoration materials, insulation materials and anchoring systems, hardware, sealing materials, and system products. At the date of this announcement, the seller holds 15% equity in the target company. After the completion of the transaction, the seller and the company will no longer directly or indirectly hold any equity in the target company. The directors believe that the sale provides the group with a timely and strategic opportunity to completely divest from the non-controlling equity in the target company. The company has never had control or significant influence over the operations and strategic decisions of the target company. The sale will help the group further streamline and optimize its business portfolio by selling non-core assets and reallocating resources to core business areas that offer higher returns and align more closely with the group's strategy. Continuing to hold minority equity would require ongoing monitoring and potential future capital injections, without the corresponding influence or potential return on investment that matches the group's core competencies. Moreover, exiting the equity will allow the group to focus more on its strategic direction, with the released funds and management resources being concentrated on two core growth pillars: (i) high-end curtain wall construction business, where the group has leading technological capabilities, a good reputation, and a stable backlog of contracts; (ii) rapidly growing Building Integrated Photovoltaics (BIPV) business, which aligns well with global decarbonization trends and the national "dual carbon" goals, making it a strategic focus for the group. Furthermore, by focusing on these core businesses, the group will be better positioned to achieve business breakthroughs, undertake landmark projects, expand market share, and create long-term sustainable value for shareholders.