Capital Environment to fund subsidiary's operations, debt

Beijing Capital Environment Holdings Co., Ltd. (Capital Environment) announced its intention to provide financial assistance of 64.26 million yuan to its controlling subsidiary, Hebei Xiong'an Capital Environment Management Co., Ltd. The loan, which will be sourced from Capital Environment’s own funds, will have a term of one year from the date of the agreement and an annual interest rate of 4.55%.

The financial support aims to help Hebei Xiong'an Capital Environment manage its interest-bearing debt and bolster its operating capital. This decision was approved by the ninth board of directors during its tenth interim meeting for 2025, but it still requires approval from the company's shareholders due to the subsidiary's asset-liability ratio exceeding 70%.

As a controlling subsidiary within Capital Environment's consolidated financial statements, Hebei Xiong'an Capital Environment’s operations and financial management are subject to the parent company’s oversight, which is expected to mitigate risks. Capital Environment currently holds a 51% stake in Hebei Xiong'an Capital Environment. The company's total accumulated financial assistance to subsidiaries within its consolidated reporting scope amounts to 13.22 billion yuan, representing 42.95% of the company's latest audited net assets.