Qujing Zefeng Water Co., Ltd. entered into the Equity Transfer Agreement to acquire Qujing Dianchi Water Treatment Co., Ltd. from Kunming Dianchi Water Treatment Co., Ltd. for CNY 150 million on September 15, 2023. As of June 30, 2023, Qujing Dianchi Water Treatment Co., Ltd. reported net asset value of CNY 78.8 million. The net proceeds from the Disposal will be used as general working capital of Kunming Dianchi Water Treatment Co., Ltd. Mazars CPA Limited acted as auditor to Kunming Dianchi Water Treatment Co., Ltd.