Taizhou Water Group Co., Ltd. (SEHK:1542) entered into equity transfer agreement to acquire 45% stake in Taizhou Luqiao Water Supply Co., Ltd. from Taizhou Luqiao District Urban Construction Group Co.,Ltd. for approximately CNY 120 million on May 20, 2021. The consideration is subject to adjustment. The consideration for the transfer of 45% equity interest in Luqiao Water Supply is CNY 124.42 million and shall be paid by Taizhou Water Group to Luqiao Urban Construction in cash in the following manner: CNY 37.326 million (being 30% of the consideration) (first instalment of Luqiao Consideration) is payable within 15 business days and the remaining balance of the consideration is payable within 12 months after completion of the Luqiao Water Supply acquisition and agreement between all parties on the audit results, consideration adjustment and loss and profit arrangements regarding transition period having been reached. For the year ended December 31, 2020, Taizhou Luqiao Water Supply Co., Ltd reported revenue of CNY 181.5 million, profit after tax of CNY 1.7 million and net assets of CNY 121.5 million. Upon completion of the Luqiao Water Supply Acquisition, the board of directors of Luqiao Water Supply shall be comprised of five directors, of which Taizhou Water Group shall be entitled to nominate two directors and the chairman. The supervisory committee of Luqiao Water Supply shall be comprised of three supervisors, of which Taizhou Water Group shall be entitled to nominate one supervisor. The transaction is subject to all decision-making and approval required in relation to the transactions contemplated under the Luqiao Equity Transfer Agreement having been obtained by Luqiao Urban Construction, the Luqiao Water Supply Valuation Report having been approved or registered with the competent state-owned asset management departments, the notification to or consents or confirmation of no objection of relevant creditors of Luqiao Water Supply having been obtained and approvals of the Board and shareholder’s resolutions of Taizhou Water to approve the transactions contemplated under the Luqiao equity transfer agreement having been obtained. As at October 29, 2021, certain conditions precedent, in particular, the completion of the business registration for the equity transfer with the relevant industrial and commercial administration, have not yet been satisfied, and Luqiao Water Supply is undergoing the business registration change procedures. As additional time is required for the fulfillment of the conditions precedent, the parties to the Luqiao equity transfer agreement have agreed to further postpone the date of completion of the Luqiao Water Supply Acquisition to on or before November 30, 2021, or such later date as they may further agree. As at November 30, 2021, certain conditions precedent, in particular, the completion of the business registration for the equity transfer with the relevant industrial and commercial administration, have not yet been satisfied, and Luqiao Water Supply is undergoing the business registration change procedures. As additional time is required for the fulfillment of the conditions precedent, the parties to the Luqiao Equity Transfer Agreement have agreed to further postpone the date of completion of the Luqiao Water Supply Acquisition to on or before December 31, 2021, or such later date as they may further agree. Taizhou Water Group Co., Ltd. (SEHK:1542) completed the acquisition of a 45% stake in Taizhou Luqiao Water Supply Co., Ltd. from Taizhou Luqiao District Urban Construction Group Co.,Ltd. on December 31, 2021.