Guangdong Water Investment Co agreed to acquire 21% stake in Jiacheng Environmental Engineering Co., Ltd. from Bohai Water Industry Co.,Ltd (SZSE:000605) for approximately CNY 370 million on April 19, 2021. The Second Share Transfer Consideration shall be payable by Guangdong Water Investment Co to Bohai Water in two stages (i) approximately CNY 110 million being the deposit for the Public Bidding, which shall be applied as the partial settlement (ii) approximately CNY 260 million being the balance of the Second Share Transfer Consideration shall be transferred by Guangdong Water Investment Co to a designated settlement account of Bohai Water within two business days of the date of the Second Share Transfer Agreement. The Group intends to finance the aforesaid amount by the Group’s internal financial resources. Pursuant to the terms and conditions of the Second Share Transfer Agreement, Bohai Water shall pledge its 19% equity interest in Jiacheng Environmental Engineering to Guangdong Water Investment Co as guarantee of its obligations under the Second Share Transfer Agreement for a period of three years. As of December 31, 2020, Jiacheng Environmental Engineering Co., Ltd. reported a revenue of approximately CNY 704 million, net income of CNY 3.5 million and net assets of approximately CNY 920 million. The transaction is expected to be completed before end of April 2021. Guangdong Water Investment Co completed the acquisition of 21% stake in Jiacheng Environmental Engineering Co., Ltd. from Bohai Water Industry Co.,Ltd (SZSE:000605) on April 19, 2021.