Ever Reach Group (Holdings) Company Limited (Stock code: 3616) announced that its indirect wholly-owned subsidiary, Xuchang Hengda, and fellow shareholder Xuchang Shitou entered into a Capital Increase Agreement involving Xuchang Hengrun. Under the agreement, Xuchang Hengda will contribute RMB24 million, while Xuchang Shitou will contribute RMB36 million, increasing Xuchang Hengrun’s registered capital from RMB100 million to RMB160 million.

Following this transaction, Xuchang Hengda’s equity interest in Xuchang Hengrun will be adjusted from 80% to 65%, and Xuchang Shitou’s stake will rise from 20% to 35%. According to the announcement, Xuchang Hengrun will remain a non-wholly owned subsidiary of Ever Reach Group, and the company does not expect to record any gain or loss due to this deemed disposal under the Listing Rules.

Xuchang Hengrun’s total assets and net assets stood at approximately RMB835.95 million and RMB64.45 million, respectively, as of 30 September 2025. The additional capital is intended to strengthen Xuchang Hengrun’s financial position and support the ongoing real estate development project, Dongyue Garden, in Xuchang city. This transaction qualifies as a discloseable and connected transaction under the Listing Rules. Ever Reach Group states that the terms are fair and commercially reasonable, serving the overall interests of the company and its shareholders.