Nanfang Zhongjin Environment Co., Ltd. (SZSE:300145) agreed to acquire Wuxi Industrial Waste Safe Disposal Co., Ltd. and Wuxi Solid Waste Environmental Protection Disposal Co., Ltd. from Wuxi City Environmental Technology Co., Ltd. for approximately CNY 560 million on March 24, 2021. Consideration to be paid in shares. The 100% stake in Industrial Waste Company is priced at approximately CNY 408 million while the 100% stake in Solid Waste Company is priced at approximately CNY 153 million. The issue price for this asset acquisition is CNY 2.34 per share.

As of end of 2020, Wuxi Industrial Waste Safe Disposal and Wuxi Solid Waste Environmental Protection Disposal reported approximately CNY 172 million and CNY 40 million in total assets respectively, CNY 32 million and CNY 28 million in total common equity respectively, approximately CNY 102 million and CNY 24 million in revenues respectively, CNY 35 million and CNY 9.5 million in operating profits respectively and CNY 28 million and CNY 7 million in net profits respectively.

The transaction is subject to shareholder's approval of Nanfang Zhongjin Environment Co., Ltd. and the Shenzhen Stock Exchange and registered by the China Securities Regulatory Commission. The transaction has been approved by the Board of Wuxi Public Utilities Industrial Group Co., Ltd. and the Board of Nanfang Zhongjin Environment Co., Ltd. The State-owned Assets Supervision and Administration Commission of Wuxi already approved this transaction. On August 27, 2021, the 28th session of Nanfang Zhongjin Environment's 4th directorate approved this transaction. This transaction still needs to be approved by Nanfang Zhongjin Environment's shareholders' meeting, Shenzhen Stock Exchange and CSRC. As of November 2, 2021, Nanfang Zhongjin approval to issue share as consideration.

ZTF Securities Co., Ltd. acted as financial advisor, Beijing DHH Law Firm acted as legal advisor and ShineWing Certified Public Accountants Co., Ltd. acted as accountant to Nanfang Zhongjin in the transaction.