CGN Environmental Protection Industry Co. Ltd. singed a Share Transfer Agreement to acquire Jiangsu Penyao Water Development Co., Ltd. from Penyao Environmental Protection Co., Ltd. (SZSE:300664) for approximately CNY 300 million on April 26, 2023. Under the terms, CGN Environmental will pay 20% of the consideration within 10 working days after the agreement signing and effectivity, 30% within 10 working days after the completion of the transfer, 40% within 10 working days after the transition audit report is issued, and the remaining amount after the prerequisites are fulfilled. The transaction is approved in the 11th Meeting of Penyao Environmental's 4th Directorate held on April 26, 2023, and does not need the Shareholders' Approval. As of March 31, 2023, Jiangsu Penyao Water reported Total Assets of CNY 312.28 million and Net Assets of CNY 164.02 million.

CGN Environmental Protection Industry Co. Ltd. completed the acquisition of Jiangsu Penyao Water Development Co., Ltd. from Penyao Environmental Protection Co., Ltd. (SZSE:300664) on May 11, 2023.