Beijing Enterprises Water Group (China) Investment Limited and Yangtze Ecology and Environment Co., Ltd. entered into an equity transfer and equity supplemental transfer agreement to acquire 29% stake in Wuhan Zhengye Dongfang Construction Investment Co., Ltd. from Beijing Orient Landscape & Environment Co., Ltd. (SZSE:002310) for approximately CNY 150 million on November 23, 2020. The consideration is paid in cash. Under the terms, Beijing Enterprises Water Group (China) Investment and Yangtze Ecology and Environment will acquire 4.83% and 24.17% stakes for CNY 24.97 million and CNY 124.9 million respectively. Out of CNY 24.9 million, first part of consideration is CNY 5.65 million which shall be paid by Beijing Enterprises Water Group (China) Investment Limited to Beijing Orient Landscape & Environment Co., Ltd. and second part of consideration of CNY 19.32 million shall be the outstanding registered capital to be injected by Beijing Enterprises Water Group (China) into the Wuhan Zhengye Dongfang Construction. Out of CNY 5.65 million, first installment of CNY 1.45 million will be payable within 20 business days after the effective date of equity transfer agreement, second installment of CNY 0.25 million will be payable within 20 days after the effective date of equity transfer supplemental agreement, third installment of CNY 3.38 million and fourth installment of CNY 0.57 million will be payable within 20 business days after the completion of the registration on the change of shareholding of Wuhan Zhengye Dongfang Construction Investment Co., Ltd. The consideration to be paid by Beijing Enterprises Water Group (China) Investment will be funded by internal resources. As of June 30, 2020 the net asset value of Wuhan Zhengye Dongfang Construction is CNY 209 million. The financials of Wuhan Zhengye Dongfang Construction for the year ended December 31, 2019 are net profit before tax of CNY 31 million and net profit after tax of CNY 23.26 million. Within 8 business days after receipt of first installment of the consideration, Beijing Orient Landscape & Environment Co., Ltd. shall procure Wuhan Zhengye Dongfang Construction Investment Co., Ltd. to complete the registration on the change of shareholding. Upon completion of agreement, Beijing Enterprises Water Group (China) Investment Limited will hold 10% in aggregate in Wuhan Zhengye Dongfang Construction Investment Co., Ltd. The transaction is subject to approval of Beijing Orient Landscape & Environment Co., Ltd., Beijing Enterprises Water Group (China) Investment, Yangtze Ecology and Environment and approval of relevant regulatory authority.