China Gezhouba Group Ecological Environment Engineering Co., Ltd. signed an agreement to acquire a 5% stake in Poten Environment Group Co., Ltd. (SHSE:603603) from SDIC Innovation Investment Management Co., Ltd. and Shanghai Fosun Chuangfu Equity Investment Management Company for CNY 87.5 million on January 6, 2021. Under the terms, China Gezhouba Group Ecological Environment Engineering Co., Ltd. will acquire approximately 12.5 million shares and 8.4 million shares, accounting for 3% and 2% of the total share capital of the Poten Environment Group Co., Ltd. from SDIC Innovation Investment Management Co., Ltd. and Shanghai Fosun Chuangfu Equity Investment Management Company respectively at a price of CNY 4.19 per share. China Gezhouba Group Ecological Environment Engineering Co., Ltd. shall pay 20% of consideration within five working days after the agreement and remaining 80% of consideration shall be paid within five working days from the completion of the transfer. Prior to this transaction, China Gezhouba Group Ecological Environment Engineering Co., Ltd. did not hold any shares of Poten Environment Group Co., Ltd. and after the equity change, it will directly hold approximately 20.9 million shares, accounting for a 5% stake of Poten Environment Group Co., Ltd. Based on the "Minutes of the 20th Chairman's Office Meeting of China Gezhouba Group Co., Ltd. in 2021" and "Minutes of the First Party-Government Joint Meeting of China Energy Engineering Group Co., Ltd. in 2021" received by the Poten Environment Group, the transaction was approved by China Gezhouba Group Co., Ltd. On April 23, 2021, at the twentieth meeting of the chairman's office, agreed to Gezhouba Eco's acquisition of 5% of Poten Environment and the transaction received shareholder's approval.