Xinjiang Communications subsidiaries merge to streamline operations, boost competitiveness

Xinjiang Communications Construction Group Co., Ltd. has approved an absorption merger between its wholly-owned subsidiaries, Xinjiang Municipal Rail Transit Co., Ltd. and Xinjiang Jiaojian Tongda New Material Technology Co., Ltd. Following the merger, Municipal Rail Company will be the surviving entity, and Jiaojian Tongda Company will be dissolved. This move aims to integrate resources, reduce management costs, and improve operational efficiency and technological collaboration.

The merger's effective date is set for June 30, 2025. Upon completion, Municipal Rail Company's registered capital will increase to 55,000,000 yuan, combining the original capital of both companies. All assets, personnel, and technical patents of Jiaojian Tongda Company will be absorbed by Municipal Rail Company. Debt responsibilities from before the merger will remain with the original entities, but post-merger, all remaining debts will be assumed by Municipal Rail Company.

This absorption merger is not classified as a related party transaction or a major asset restructuring. The company expects the merger to expand the overall scale of Municipal Rail Company, strengthening its market competitiveness without materially impacting the company's normal operations or financial condition, or harming shareholder interests.