Fujian Zhonghai Port and Shipping Construction Development Co., Ltd. agreed to acquire 41.21% stake in Poten (Wuyishan) Shuimei Co., Ltd. from Poten Environment Group Co., Ltd. (SHSE:603603) for approximately CNY 120 million on August 10, 2020. The transaction price is CNY 0 for the transfer of shares and another CNY 123.63 million for the payment of the corresponding contribution amount for said unpaid capital being transferred. Post completion, Fujian Zhonghai Port and Shipping Construction Development holds 41.21% stake and Poten Environment Group holds 48.78% stake in Poten (Wuyishan) Shuimei. In 2019, Poten (Wuyishan) Shuimei reported total assets of CNY 778.6 million, Net assets of CNY 2 million and net loss of CNY 142.1 million. The transaction requires the formal written consent of the Wuyishan Municipal Government and it has been reviewed and approved at the 21st meeting of the third Board of Directors of Poten Environment Group Co., Ltd.