The board of directors of China Water Industry Group Limited announced that on 8 June 2023, Huoqiu Huizhao Renewable Energy Technology Co., Ltd. (the Lessee), being an indirect non-wholly owned subsidiary of the company, entered into the Transfer Agreement with Jiangsu Leasing, pursuant to which Jiangsu Leasing shall purchase the subject leased assets under the Finance Lease Agreement, comprising a power generating facility and fertilizer granulation equipment which is/will be situated in Lu'An City, Anhui Province, the PRC during the lease period (Leased Assets) from the Lessee for the Purchase Price of RMB 8,200,000 (equivalent to approximately HKD 9,046,000). On the same date, the Lessee also entered into the Finance Lease Agreement with Jiangsu Financial Leasing Co., Ltd. (Jiangsu Leasing), pursuant to which Jiangsu Leasing shall lease back the Leased Assets to the Lessee for a lease consideration comprising the principal amount equivalent to the Purchase Price and the interest accrued thereon at a rate of 7.8797% per annum for a lease period commencing from 9 June 2023 to 9 June 2026. As security for the due and punctual performance of the Lessee's obligations under the Finance Lease and Incidental Documentations, (i) Guarantor A executed the Guarantee I; (ii) Guarantor B executed the Guarantee II; (iii) Guarantor C executed the Guarantee III; (iv) Guarantor D executed the Guarantee IV; (v) the Lessee executed the Pledge over Account Receivable; (vi) Chargor A executed the Legal Charge I; (vii) Chargor B executed the Legal Charge II; (viii) Guarantor D executed the Legal Charge III; (ix) the Lessee executed the Legal Charge IV, each in favour of Jiangsu Leasing.