Inner Mongolia Herun Environmental Engineering Co., Ltd. signed an agreement to acquire 25% stake in Xiamen Luluxing Green Project Construction Co., Ltd. from Inner Mongolia M-Grass Ecology And Environment Co., Ltd. for approximately CNY 110 million.
July 14, 2020
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Inner Mongolia Herun Environmental Engineering Co., Ltd. signed an agreement to acquire 25% stake in Xiamen Luluxing Green Project Construction Co., Ltd. from Inner Mongolia M-Grass Ecology And Environment (Group) Co., Ltd. for approximately CNY 110 million on July 14, 2020. The parties agreed that the first equity transfer price shall be paid in cash according to the following progress: within ninety days after the entry into force of this agreement, buyer shall pay 50% of the equity transfer price and the remaining 50% of equity transfer payment shall be paid within one year after signing the present agreement. After transfer, Inner Mongolia M-Grass Ecology And Environment (Group) Co., Ltd. will retain a 35% stake in Xiamen Luluxing Green Project Construction Co., Ltd. Xiamen Luluxing Green Project Construction reported total assets of CNY 545.08 million, net assets of CNY 264.18 million, operating revenue of CNY 148.08 million and net loss of CNY 14.45 million for the year ending 2019. On July 14, 2020, Inner Mongolia M-Grass Ecology And Environment’s board of directors reviewed and approved the transaction. This equity transfer is within the approval authority of the Inner Mongolia M-Grass Ecology And Environment's board of directors, and does not need to be submitted to the shareholders' meeting for consideration. The amount of investment income from the transaction is expected to have an impact on the Inner Mongolia M-Grass Ecology And Environment’s net profit of approximately CNY 11.97 million. It will not have a significant impact on the Inner Mongolia M-Grass Ecology And Environment's financial status and operating results, nor will it affect the normal development of the Inner Mongolia M-Grass Ecology And Environment's existing business.
M-Grass Ecology and Environment Group Co Ltd, formerly Inner Mongolia M-Grass Ecology And Environment Group Co Ltd, is a China-based company principally engaged in ecological restoration and seed technology development. The Company's main businesses include construction and operation of natural ecological environment, sales of grass seeds and native plants, photovoltaic power generation and construction of big data platforms. The Company's services can be used in various ecological environments such as mines, grasslands, urban green spaces, and deserts.
Inner Mongolia Herun Environmental Engineering Co., Ltd. signed an agreement to acquire 25% stake in Xiamen Luluxing Green Project Construction Co., Ltd. from Inner Mongolia M-Grass Ecology And Environment Co., Ltd. for approximately CNY 110 million.
M-GRASS ECOLOGY AND ENVIRONMENT (GROUP) CO., LTD. 
