Zhongyuan Environment-Protection Co.,Ltd. (SZSE:000544) agreed to acquire five sewage treatment plants from Zhengzhou Sewage Purification Co. Ltd for CNY 4.3 billion in stock on January 25, 2015. Zhongyuan Environment-Protection will issue 300.9 million shares as consideration.

As of December 31, 2014, the acquired assets had total assets of CNY 2.36 billion, stockholders equity of CNY 2.36 billion, revenues of CNY 121.14 million, operating loss of CNY 59.42 million and net profit of CNY 59.46 million. At the same time, Zhongyuan Environment-Protection will issue shares to raise supporting funds of not more than CNY 1.14 billion. On January 25, 2015, the transaction was approved by Board of Directors of Zhongyuan Environment-Protection.

On September 25, 2015, the Henan Province State-owned Assets Supervision and Administration Commission approved the transaction. As on September 28, 2015, the transaction was approved by the shareholders of Zhongyuan Environment-Protection Co.,Ltd. As on March 10, 2016, the China Securities Regulatory Commission Listed Company Merger and Reorganization Examination Committee conditionally approved the deal. As on April 6, 2016, the China Securities Regulatory Commission approved the deal.

Central China Securities Co., Ltd. acted as financial advisor, Henan Mingshan Law Firm acted as legal advisor and Ruihua Certified Public Accountants acted as accountant for Zhongyuan Environment-Protection.