CR Construction clarifies RMB 20 million capital increase terms, joint venture accounting treatment

• CR Construction issued a supplemental clarification on its 23 July 2026 capital increase into a newly formed water-treatment venture.
• RMB 20 million injection will lift registered capital to RMB 40 million, leaving CR Construction and state-owned Yubang Holdings with 50% each.
• Investment rationale centers on Yubang’s local government backing, project access, financing channels, and expected environmental-services chain integration.
• Pricing set at par value due to the target’s nil net assets and no operating history; funding will come from internal resources.
• Target will be treated as a joint venture under the equity method, not consolidated, due to shared control and mutual veto rights on major decisions.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. CR Construction Group Holdings Ltd. published the original content used to generate this news brief via IIS, the regulatory disclosure system operated by the Hong Kong Stock Exchange (HKex) (Ref. ID: HKEX-EPS-20260810-12279089), on August 10, 2026, and is solely responsible for the information contained therein.