Shandong Gaochuang Construction Investment Group Co., Ltd. signed a cooperation framework agreement to acquire 9.91% stake in SafBon Water Service (Holding) Inc.,Shanghai (SZSE:300262) from Zhang Chunlin for approximately CNY 340 million on March 30, 2021. On April 6, 2021, an agreement was signed. Shandong Gaochuang Construction Investment Group Co., Ltd. will acquire 66.3 million shares at price of CNY 5.08 per share. In another transaction, Shandong Gaochuang Construction Investment Group will subscribe for 200.9 million new shares of SafBon Water Service (Holding) Inc.,Shanghai. On April 1, 2021, Zhang Chunlin pledged 38.35 million shares to Shandong Gaochuang Construction Investment Group Co., Ltd. and the registration procedure was completed. Shandong Gaochuang Construction Investment Group Co., Ltd. advanced an amount of CNY 80 million for the transfer of the first phase of shares. Once, Zhang Chunlin shall pledge 53.24 million including 38.35 already pledged and the registration procedures shall be completed by the Securities Depository and Clearing Company, within three working days, Shandong Gaochuang Construction Investment Group Co., Ltd. shall pay Zhang Chunlin, the advance payment of RMB 70 million for the second phase of the target share transfer. Within 5 working days from the date when the agreement comes into force and the prerequisites stipulated in the agreement are met, the advance payment for the first and second phases of SafBon Water Service’s share transfer mentioned above will be automatically converted to the transaction price. At the same time, Shandong Gaochuang Construction Investment Group Co., Ltd. will have 66.3 million shares of SafBon Water Service (Holding) Inc. Shanghai and Shandong Gaochuang Construction Investment Group Co., Ltd. shall continue to pay Zhang Chunlin, the transfer price amounting to CNY 85.91 million for the underlying shares on the premise that the Securities Depository and Clearing Company has completed the corresponding registration procedures. When the subject shares are registered and transferred with the securities registration and clearing company and Zhang Chunlin has completed its income tax payment obligation for the full price of the share transfer and has issued a tax application form and tax payment voucher issued by the tax authority. It is agreed that within 5 working days from the date when the corresponding directors and supervisors apply for resignation during the transition period and the prerequisites stipulated in this agreement are met, Shandong Gaochuang Construction Investment Group Co., Ltd. shall pay CNY 84.25 million. Within 5 working days from the date when the re-election of the board of directors of SafBon Water Service is completed, Shandong Gaochuang Construction Investment Group Co., Ltd. shall pay CNY 16.9 million. Huang Yanxun of Essence Securities Co., Ltd. acted as the financial advisor and Chen Wei and Ren Hui of Beijing King & Wood Mallesons acted as the legal advisors to SafBon Water Service (Holding) Inc.,Shanghai Shandong Gaochuang Construction Investment Group Co., Ltd. completed the acquisition of 9.91% stake in SafBon Water Service (Holding) Inc.,Shanghai (SZSE:300262) from Zhang Chunlin on June 21, 2021.