Tianjin Capital Environmental Protection Group Company Limited (SHSE:600874) agreed to acquire Jiangsu Yonghui Resources Utilization Company Limited from Bosideng Corporation Limited and Gaoyou City Minjing Knitting & Garment Co., Ltd. for approximately CNY 400 million on December 24, 2020. Tianjin Capital Environmental Protection Group Company Limited will pay in cash by instalments. The first installment of 50% amount will be paid within 15 working days after the signing of the Equity Transfer Agreement. The final instalment will be made within 2 months after the completion of the registration of the change of the Equity Interest. Post acquisition Tianjin Capital Environmental Protection Group Company Limited (SHSE:60087) will hold 100% stake in Jiangsu Yonghui Resources Utilization Company Limited. After payment of first installment Company will engage an audit firm to conduct a supplemental audit on Jiangsu Yonghui Resources Utilization Company Limited by taking the Completion Date as the benchmark date, to confirm the book balance of construction payables, the book balance of other payables and the balance of non-operating debts (including bank loans), and calculate the final consideration payable by the Company after deducting the above three balances on the basis of the Base Consideration, and confirm the amount of final instalment. In a related transaction Tianjin Capital Environmental Protection Group Company Limited (SHSE:600874) signed an equity transfer agreement to acquire Gaoyou Compro Environmental Resources Company Limited from Bosideng Corporation Limited, Jiangsu Suyong International Trade Co., Ltd, Suzhou Kangbo Circuit Technology Co., Ltd., Gaoyou City Minjing Knitting & Garment Co., Ltd., Suzhou Industrial Park Xinkai Investment Consulting Partnership (Limited Partnership) and Gu Jieping (sellers) for approximately CNY 380 million on December 24, 2020. Consideration will be funded by the internal funds and the merger and acquisition loans. For the year ended December 2019, Jiangsu Yonghui Resources Utilization Company Limited reported net income of CNY 6.74 million and net assets. As on April 30, 2020, Jiangsu Yonghui Resources Utilization Company Limited Net assets of CNY63.8 million. The transaction is subject to -i) all authorizations or approvals required to be obtained for the signing and performance of the Agreement have been obtained by the Transferors and Tianjin Capital Environmental Protection Group Company Limited , including but not limited to the authorization of all internal authorities and the approvals of all approving authorities ii) the shareholders meeting and all internal authorities of Jiangsu Yonghui Resources Utilization Company Limited have approved and each shareholder of Target Company II has waived its pre-emptive rights iii) the Transferors and Jiangsu Yonghui Resources Utilization Company Limited have substantially performed and complied with all agreements, undertakings, obligations and conditions contained in the Equity Transfer Agreement that are required to be performed or complied with at the Completion. iv) there does not exist any on-going litigation, judicial proceedings, administrative penalties or other administrative orders or material adverse changes of the Transferors and Jiangsu Yonghui Resources Utilization Company Limited that would prohibit or restrict the equity transfer v) Jiangsu Yonghui Resources Utilization Company Limited does not have any undisclosed assets and liabilities and guarantees the truthfulness and accuracy of the financial statements as at the financial benchmark date vi) the Transferors have paid up the entire registered capital of Jiangsu Yonghui Resources Utilization Company Limited and completed the industrial and commercial registration, without any defects in the industrial and commercial registration or filing vii) the Transferors have signed all the letters of undertaking and has obtained the “Hazardous Waste Operation License” for 2020 viii) Jiangsu Yonghui Resources Utilization Company Limited is under normal operation and there is no material adverse change in the business, financial position and operating prospects. ix) the state-owned assets supervisory and administrative department of Tianjin Capital Environmental Protection Group Company Limited has filed the appraisal results of the assets involved in the equity transfer and x) Tianjin Capital Environmental Protection Group Company Limited has substantially performed and complied with all the agreements, undertakings, obligations and conditions contained in the Equity Transfer. Bosideng will provide a bank guarantee letter to the Company in the amount of CNY 10 million with a term of two years, or Bosideng shall issue a letter of undertaking bearing joint liabilities. On December 24, 2020, the transaction was approved by the Board of Directors of Tianjin Capital Environmental Protection Group Company Limited. The transaction is expected to complete the industrial and commercial registration of the equity transfer within 1 calendar month after the signing of the Equity Transfer Agreement and and completion date shall be the date of completion of the industrial and commercial registration of the equity transfer.