*ST Sihuan: Announcement of Jiangsu Sihuan Biological Co., Ltd. on the capital reduction of its wholly-owned subsidiary
Stock Code: 000518 Stock Abbreviation: *ST Sihuan Announcement Number: Lin-2025-52
Jiangsu Sihuan Biological Co., Ltd.
Announcement on capital reduction of wholly-owned subsidiaries
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete, and contains no false records, misleading statements or major omissions.
1. Basic situation of this capital reduction
Based on the actual needs of management and development, Jiangsu Chenwei Ecological Park Technology Co., Ltd. (hereinafter referred to as "Chenwei Ecological Park"), a wholly-owned subsidiary of Jiangsu Sihuan Biological Co., Ltd. (hereinafter referred to as the "Company"), plans to reduce its registered capital by 150 million yuan. After this capital reduction, the registered capital of Chenwei Ecological Park was reduced from RMB 400 million to RMB 250 million, and it remains a wholly-owned subsidiary of the company.
The company held the 16th meeting of the 10th board of directors on August 25, 2025, and reviewed and approved the "Proposal on the Capital Reduction of the Wholly-Owned Subsidiary Jiangsu Chenwei Ecological Park Technology Co., Ltd." According to relevant regulations such as the Stock Listing Rules of the Shenzhen Stock Exchange and the Articles of Association, this transaction does not constitute a related transaction or a major asset reorganization. This capital reduction does not need to be submitted to the company's shareholders' meeting for review.
2. Basic information on the entities involved in this capital reduction
Company name: Jiangsu Chenwei Ecological Park Technology Co., Ltd.
Type: Limited liability company (non-natural person investment or controlling legal person investment)
Legal representative: Feng Jing
Registered capital: 400 million yuan
Date of establishment: March 23, 2015
Address: No. 8, Xinyu Middle Road, Xinqiao Town, Jiangyin City
Business scope: construction project design; construction project construction; residential interior decoration and decoration; building intelligent system design; roadbed and pavement maintenance operations; construction labor subcontracting; building demolition operations (except blasting operations); road cargo transportation (excluding dangerous goods) (projects that require approval according to law can only be carried out with the approval of relevant departments, and specific business projects are subject to the approval results) General projects: flower planting; sales of silviculture and wood and bamboo harvesting machinery; preliminary processing of non-edible forest products; forest management and management; forest rehabilitation; sales of forestry products; sales of agricultural and sideline products; cultivation of Chinese herbal medicine; leisure and sightseeing activities; construction of landscaping projects; urban greening management; natural ecosystem protection and management; tourist attraction management; municipal facilities management; earthworks. Stock code: 000518 Stock abbreviation: *ST Fourth Ring Announcement Number: Lin -No. 2025-52
Construction; engineering management services; forest park management; planning and design management; agricultural and horticultural services; sales of arts and crafts and ceremonial items (except ivory and its products); sales of metal structures; installation services of general machinery and equipment; engineering and technology research and experimental development; fire protection technical services; sales of fire protection equipment; intelligent agricultural management; sewage treatment and recycling; development of intelligent water systems; building cleaning services; construction Sales of building materials; construction of sports facilities and facilities; labor services (excluding labor dispatch); external contracting projects; project cost consulting business; sales of metal materials; sales of building decoration materials; sales of machinery and equipment; sales of doors and windows; sales of steel products for construction; retail of kitchenware, sanitary ware and daily sundries; sales of lamps; sales of daily necessities (except for projects that require approval according to law, business activities can be carried out independently with a business license in accordance with the law)
Equity relationship: The company holds 100% equity of Chenwei Ecological Park.
The main financial indicators for the latest year and period:
Unit: Yuan June 30, 2025 (without December 31, 2024 (reviewed project
Audit) Accounting)
Total assets 305,858,157.25 360,662,761.81 Total liabilities 72,764,844.96 125,097,789.04 Net assets 233,093,312.29 235,564,972.77 Projects January-June 2025 (unaudited) 2024 Year-end (audited) operating income 86,929,445.66 4,088,474.99
Total profit -2,471,660.48 -70,306,687.17 Net profit -2,471,660.48 -70,306,687.17 After inquiry, Chenwei Ecological Park is not the person subject to execution for breach of trust.
3. The purpose of this capital reduction, existing risks and impact on the company
The planned capital reduction of Chenwei Ecological Park is based on the company's medium and long-term development strategic plan and will help improve the efficiency of asset management.
After the completion of this capital reduction, Chenwei Ecological Park will still be a wholly-owned subsidiary of the company, which will not cause changes in the scope of the company's consolidated statements, will not have an adverse impact on the company's financial status and operating results, and will not harm the legitimate rights and interests of the company and other shareholders.
4. Documents for reference
Stock Code: 000518 Stock Abbreviation: *ST Sihuan Announcement Number: Lin-2025-52 Resolution of the 16th Meeting of the 10th Board of Directors of the Company
Announcement is hereby made.
Jiangsu Sihuan Biological Co., Ltd.
August 26, 2025