On August 21, Gelunhui announced that on August 20, 2024, its wholly-owned subsidiary in Shenzhen Qianhai, entered into a capital increase agreement with Beijing Capital Eco-Environment Protection Group and Shenzhen Qianhai, under which Shenzhen Qianhai and Beijing Capital Eco-Environment Protection Group agreed to make additional capital contributions in proportion to their existing equity interests in Capital Env. After the increase, Shenzhen Qianhai and Beijing Capital Eco-Environment Protection Group will continue to hold 51% and 49% of the equity in Capital Env, respectively, while Capital Env will remain a non-wholly-owned subsidiary of the company.
The registered capital of Capital Env will increase from RMB 9.8039 million to RMB 0.1 billion, and Beijing Capital Eco-Environment Protection Group and Shenzhen Qianhai will make additional capital contributions in the amount of RMB 44.1961 million and RMB 46 million, respectively, based on their existing equity interests.
The announcement indicated that the capital increase will help Capital Env strengthen its financial position, enhance its operational and financing capabilities, and meet its expected funding needs for the continued development of urban and rural environmental sanitation services in China. It is believed that the capital increase will lay a solid foundation for the future exploration and development of Capital Env, thereby benefiting the long-term development of the group.