BINHAI INV (02886) announced that its wholly-owned subsidiary Taicheng Clean Energy entered into a capital injection agreement on August 22, 2025, with Tianjin Water Conservancy Engineering and Tianshui Smart City. The agreement involves a cash injection of RMB 10.3651 million to Tianshui Smart City in exchange for a 49% equity stake.

Of the injection amount, RMB 9.6078 million will be used to increase Tianshui Smart City's registered capital, while RMB 757,300 will be allocated to increase its capital reserve. Tianshui Smart City is a direct wholly-owned subsidiary of Tianjin Water Conservancy Engineering, which is an affiliate of TEDA.

This capital injection represents a strategic cooperation between the Group and Tianjin Water Conservancy Engineering, aimed at raising funds for Tianshui Smart City's business operations and expansion while developing it into a professional gas engineering platform. Upon completion of the injection, Taicheng Clean Energy will become a new shareholder of Tianshui Smart City, with Taicheng Clean Energy and Tianjin Water Conservancy Engineering holding 49% and 51% stakes respectively.

The Group expects to benefit from Tianshui Smart City's multi-faceted business development in several ways:

First, Tianshui Smart City can participate deeply in the preliminary planning and construction briefings of the Group's related engineering projects, enabling precise control over project progress, quality, and safety. Additionally, leveraging Tianjin Water Conservancy Engineering's comprehensive capabilities, Tianshui Smart City can help the Group enhance its capital coordination capacity and risk resistance for large-scale projects, ensuring efficient advancement of key projects.

Second, the Group can implement centralized procurement and large-scale construction through Tianshui Smart City to further reduce raw material and labor costs, helping avoid profit diversion to third-party construction units. Simultaneously, Tianshui Smart City can utilize Tianjin Water Conservancy Engineering's resources to seek financial support from central and local government agencies, maximizing project returns while ensuring the Group's compliance with regulatory requirements.

Third, based on Tianshui Smart City's foundation in developing intelligent technologies, the Group can integrate IoT monitoring, intelligent early warning, and other technologies in the future to build a gas engineering emergency management platform, achieving "single-platform dispatch" for incident response. This digital upgrade can enhance project operational safety and resilience, injecting innovative momentum into the Group's business operations.