Taizhou Water Group Co., Ltd. (SEHK:1542) agreed to acquire 45% stake in Taizhou Water Supply Co., Ltd. and Taizhou Jiaobei Water Supply Co., Ltd. from Taizhou Jiaojiang Urban Development Investment Group Co., Ltd. for CNY 46.6 million on May 20, 2021. Taizhou Water Group will pay CNY 23.2 million for Taizhou Water Supply and CNY 23.3 million for Jiaobei Water Supply. The consideration will be paid in cash. Under terms of consideration CNY13.98 million will be paid within 15 Business Days after satisfaction of deal conditions, CNY13.98 million is payable within 15 Business Days after completion of the Taizhou Water Supply and Jiaobei Water Supply Acquisition and the remaining balance of the consideration is payable within 12 months after completion of the Taizhou Water Supply Acquisition and Jiaobei Water Supply Acquisition and agreement between all parties on the audit results. Upon completion of the deal the board of directors of each of Taizhou Water Supply and Jiaobei Water Supply shall be comprised of five directors, of which Taizhou Water Group shall be entitled to nominate two directors and the chairman and on supervisory committee of each of Taizhou Water Supply and Jiaobei Water Supply shall be comprised of three supervisors, of which the Taizhou Water Group shall be entitled to nominate one supervisor. The deal will be terminated with the consent of all the parties, by the Taizhou Water Group in the event there has been material adverse change to Taizhou Water Supply and Jiaobei Water Supply or if there is an committed a material breach of any representations, guarantees, undertakings or obligations. For the year ended December 31, 2020 Taizhou Water Supply and Jiaobei Water Supply recorded the revenue of approximately CNY 300 million and profit after tax of CNY 4.6 million and net assets of CNY 65.48 million. The deal is subject to regulatory approval, approval from relevant creditors of Taizhou Water Supply and Jiaobei Water Supply, Payment of bank loans of Taizhou Water Supply and Jiaobei Water Supply, approval of regulatory authorities and antitrust approval of competent state-owned asset management departments. Taizhou Water Group Co., Ltd. (SEHK:1542) completed the acquisition of a 45% stake in Taizhou Water Supply Co., Ltd./Taizhou Jiaobei Water Supply Co., Ltd. from Taizhou Jiaojiang Urban Development Investment Group Co., Ltd. on December 31, 2021. All conditions pursuant to the transaction have met.