East Lake High-Tech addresses digital transformation, capital strategy at half-yearly briefing

Wuhan East Lake High Technology Group (the company) held its 2025 half-yearly results briefing on October 21, 2025. During the session, the company outlined its focus on environmental technology, park operations, and digital technology as its three main business sectors. The company confirmed it is strengthening its professional talent pool and organizational structure, with an ongoing public selection for a vice general manager overseeing investment businesses and the establishment of an innovation research institute and digital information department.

Investors raised concerns about the company's significant cash holdings. As of June 30, 2025, the company reported a monetary cash balance of 1.873 bn yuan and long-term borrowings of 2.444 bn yuan. The company clarified that a portion of its cash is earmarked for specific purposes, such as convertible bond special funds and pre-sale regulatory funds, and affirmed its commitment to optimizing asset allocation strategies to enhance capital utilization efficiency while ensuring fund safety for operational and investment needs.

The company also addressed its "dual-wheel drive" strategy, encompassing fund cultivation and equity mergers and acquisitions. Despite investor queries regarding the perceived stagnation of this strategy, with over a hundred targets screened but no projects closed in three years, the company reassured investors that its strategic initiatives are actively progressing and denied any "stagnation."