Nanjing Wondux Environmental Protection Technology Corp., Ltd. (SHSE:688178) agreed to acquire 80.50% stake in Beijing Fairyland Environmental Technology Co., Ltd from group of investors for approximately CNY 230 million on February 28, 2021. Nanjing Wondux entered into an agreement to acquire 80.50% stake in Beijing Fairyland Environmental from group of investors on March 12, 2021. Nanjing Wondux will pay 5% of the consideration through share issuance, 65% through issuance of convertible bonds, 30% through cash. The issue price for the asset acquisition is CNY32.30 per share. As a part of the transaction, transaction will be financed through the issue of convertible corporate bonds to not more than 35 investors to raise supporting funds of not more than CNY 161 million. If there are any shortfalls, Nanjing Wondux shall use its own funds or self-raised funds to pay. As of July 29, 2021, Nanjing Wondux decided to apply to the Shanghai Stock Exchange to suspend the review of this major asset reorganization until all additional audits and related information updates are completed. For the year ended December 31, 2020, Beijing Fairyland Environmental had total assets of CNY 275 million, owner's equity of CNY 74 million, revenues of CNY 194 million, operating profit of CNY 11 million and net profit of CNY 11 million.

On March 12, 2021, the 19th session of Nanjing Wondux's 2nd directorate approved this transaction's preliminary plan. On May 7, 2021, the 22nd session of Nanjing Wondux's 2nd directorate approved the transaction. This transaction was approved by Tibet Shannan Silicon-Valley Paradise Changji Investment Management Co., Ltd.'s internal decision-making meeting, Beijing Zhuyuan Capital Management Co., Ltd.'s shareholders' meeting, Changsha Banghui Network Technology Co., Ltd.'s executive director, Tianjin Zhongcheng Environmental Energy Enterprise Management Consulting Center (Limited Partnership)‘s partner meeting and by Beijing Yinyu Zhongchuang Technology Co., Ltd.'s executive director. This transaction is subject to approval by Nanjing Wondux's shareholders' meeting and CSRC. As of May 24, 2021, Nanjing Wondux Environmental Protection Technology Corp., Ltd. approved the Issuance of Shares and Convertible Bonds and Cash, and Raising of Supporting Funds. As on September 2, 2021, Nanjing Wondux Environmental Protection Technology Corp., Ltd. of supervisors approved the transaction. As of October 15, 2021, the second meeting of the third board of directors of Nanjing Wondux Environmental Protection Technology Corp., Ltd. approved the transaction. Huatai United Securities Co., Ltd. acted as financial advisor, C&T Partners acted as legal advisor and Jonten Certified Public Accountants acted as accountant to Nanjing Wondux.