TAIZHOU WATER (01542) plans to invest 200 million yuan to participate in the establishment of a fund, fulfilling the responsibilities of state-owned enterprises and focusing on the upgrading of the automotive and medical health industries.

TAIZHOU WATER (01542) announced that the board of directors has proposed that the company will sign a fund partnership agreement with Taizhou Jintou Chuangyue, Shanghai Yicun, Taizhou Jintou Equity Investment, Taizhou State-owned Asset Investment, and Taizhou Kaitou, to establish a fund with an initial proposed scale of RMB 1.01 billion. The company's proposed capital contribution is RMB 200 million, accounting for approximately 19.8% of the total committed capital of the fund. In order to achieve national strategic goals and reinforce its responsibilities as a municipal state-owned enterprise, the fund serves as an effective tool to attract industries. It mobilizes social capital to enhance industrial investment and provides support to projects through management resources. The fund focuses on key industries such as automotive and healthcare, in coordination with municipal market reforms to enhance the strategic value of the group within the state-owned asset system. In recent years, the government has continuously introduced incentives to encourage mergers and acquisitions as important tools for promoting industrial upgrading and technological innovation. Policies such as the six merger and acquisition measures by the China Securities Regulatory Commission and the "Several Policy Measures to Promote High-Quality Development of Entrepreneurial Investment" (State Council Document [2024] No. 31) explicitly support listed companies in conducting mergers around the supply chain. Zhejiang Province and Taizhou have successively introduced supporting policies to encourage the establishment of merger funds and guide state-owned capital towards strategic emerging industries. As an important source of private economy, Taizhou has 72 A-share listed companies, but 80% of them have a market value below RMB 10 billion and lack billion-level leading enterprises. This project reflects Taizhou's state-owned enterprises' proactive response to national and local policies, fulfilling corporate responsibilities, and promoting the high-quality development of regional industries.