Taizhou Water (01542) plans to increase the capital of Coastal Water Services by 300 million yuan to support the upgrading of water infrastructure

According to Zhitong Finance App, Taizhou Water (01542) announced that Binhai Water Services was established on June 7, 2016, with a registered capital of RMB 300 million. As of the date of this announcement, it is a subsidiary of the Company, with 51% and 49% of the interests of the Company and Taizhou City Water Service respectively. As of the date of this announcement, Coastal Sea's actual paid-in capital was RMB 300 million. It is mainly engaged in the financing, construction and operation management of the Taizhou Water Diversion Project. The project has been supplying water since October 2022.

Based on the current operating situation of Binhai Water Services, the board of directors reviewed and approved a capital increase of RMB 300 million for Binhai Water Services on December 5, 2025, of which the Company and Taizhou Urban Water will invest RMB 153 million and RMB 147 million respectively. Following the capital increase, the registered capital of Coastal Water Services will increase to RMB 600 million. The capital increase must be approved by shareholders by means of an ordinary resolution at the special shareholders' meeting.

The capital increase will be strategically used to upgrade infrastructure, optimize operational capacity, and enhance diversified water management solutions. The company believes that capital investment will significantly strengthen core business and management practices related to water diversion projects, thereby improving overall operating efficiency. This move is in line with the company's long-term strategic goals and the overall interests of the company and all shareholders.