CCCC to reduce stake in subsidiary, shift focus to clean energy

China Communications Construction Company (CCCC) announced that its subsidiary, China Second Highway Engineering Bureau Seventh Engineering Company, will undergo capital increase by introducing China Water Resources and Electric Power Foreign Company Limited (CWE) as an investor. CWE will inject 34,634 million yuan, including 11,000 million yuan in registered capital.

Following the transaction, CWE will hold 55% of the subsidiary, reducing China Second Highway Engineering Bureau's stake from 100% to 45%. This will result in the subsidiary no longer being consolidated into CCCC's financial statements.

This transaction is classified as a related-party transaction due to CWE being a wholly-owned subsidiary of China Communications Construction Group, CCCC's controlling shareholder. The deal aims to transition the subsidiary's operations towards water resources, power, and new clean energy sectors, enhancing its specialized capabilities and international contribution.

According to CCCC's semi-annual report for 2025, the company reported total assets of 2,018,485 million yuan and net assets attributable to shareholders of 322,190 million yuan, with a 2.80% increase compared to the previous year-end. The company’s revenue for the first six months was 337,054 million yuan, a 5.71% decrease from the previous year, while net profit attributable to shareholders was 9,568 million yuan, a 16.06% decrease. New contract signings reached 9,911 million yuan, with overseas business contributing 2,004 million yuan.