CGN Environmental Protection Industry Co. Ltd Entered into Equity Transaction Agreement to acquire Lu'an Yeji Yunshui Water Investment Co., Ltd from Yunnan Water Investment Co., Limited for CNY 87.3 million on December 28, 2022. The Purchaser shall pay the consideration in two installments: 60% of the consideration (i.e. CNY 52,377,540) shall be and has been paid to the Company within 5 Working Days from signing of the Yeji Equity Transaction Agreement; and 40% of the consideration (i.e. CNY 34,918,360) shall be paid to the Company within 7 Working Days after submission of the relevant materials for the change of registration to the responsible industry and commerce authority, and has been settled in January 2022.

Upon completion of the Yeji Disposal, Yeji Yunshui Water will cease to be a subsidiary. Luan Yeji Yunshui Water Investment Co Ltd Reported Turnover of CNY 20.5 million, Net Income of CNY 4 million, Total Assets Worth CNY 146.2 million and Total Common equity of CNY 44.1 million in year ending December 31, 2021. The transaction is subject to the Shareholder approval, the board approvals and other internal management bodies of the Company.