CDV HOLDINGS (08280): Joint venture plans to reduce capital

CDV HOLDINGS (08280) issued an announcement on January 19, 2026, stating that the joint venture company (an invested company of the company) has entered into a capital reduction agreement with New Alt Beijing (a wholly-owned subsidiary of the company) and other joint venture partners. According to the capital reduction agreement, the joint venture company will reduce its registered capital from RMB 31.7805 million to RMB 15 million, and will pay the total cash consideration specified below to the reducing parties in exchange for the cancellation of their respective equity, after which the reducing parties will no longer hold any equity in the joint venture company. As of the date of this announcement, the joint venture company is held by New Alt Beijing and other joint venture partners with approximately 31.47% and 68.53% respectively. After the completion of the capital reduction, the group will no longer hold any equity in the joint venture company. The capital reduction will bring financial and strategic benefits to the group. In addition to receiving a satisfactory financial return and improving liquidity through receiving a cash consideration of RMB 30 million, the transaction will optimize the group's portfolio by reallocating capital from non-core joint venture companies to core business areas with higher strategic priorities and expected returns, reducing the risk exposure and income volatility of non-core joint venture companies, thereby improving the overall risk situation and resilience of the group; and freeing up management time and operational energy previously devoted to regulated joint venture companies, allowing the group to focus more on its core operations and growth plans.