CECEP Environmental Protection Equipment Co.,Ltd. (SZSE:300140) agreed to acquire CECEP Environmental and CECEP (Shijiazhuang) and CECEP (Cangzhou) and CECEP (Baoding) and CECEP (Qinhuangdao) and Chengd Huanneng from Hebei Province Construction & Investment Group Co.,Ltd. and China National Environmental Protection Group Co., Ltd for CNY 15 billion on June 5, 2022. As per the agreement, CECEP Environmental Protection will acquire CECEP Environmental Protection will acquire 100% equity of CECEP Environmental Technology from China National Environmental Protection Group. CECEP Environmental Protection will acquire additional 19% in CECEP (Shijiazhuang) Environmental, additional 19% equity of CECEP (Cangzhou) Environmental, additional 19% equity of CECEP (Baoding) Environmental, additional 19% equity of CECEP (Qinhuangdao) Environmental and additional 14% of Chengde Huanneng Thermal Power from Hebei Province Construction & Investment Group Co.,Ltd. The consideration will be paid in cash and shares. The company will fund the transaction by issuing shares to no more than 35 qualified specific investors to raise supporting funds by means of price inquiry. The raised funds shall not exceed CNY 3 billion and the number of issued shares shall not exceed 30% of the share capital of CECEP Environmental Protection Equipment Co. As of December 16, 2022, The transaction plan has been reviewed and approved by the internal decision-making bodies of the target companies Environmental Technology, CECEP Shijiazhuang, CECEP Baoding, CECEP Cangzhou, CECEP Qinhuangdao, and Chengde Huanneng Thermal Power; minority shareholders of CECEP Baoding, CECEP Cangzhou, CECEP Qinhuangdao, and Chengde Huanneng Thermal Power have waived their right of first refusal for relevant equity transfers. The formal plan of this transaction has been reviewed and approved by the resolution of the 32nd meeting of the 7th board of directors of CECEP Environmental Protection Equipment. The transaction was approved by the State-owned Assets Supervision and Administration Commission of the State Council. The transaction has been approved in principle by China Energy Conservation and Environmental Protection Group, the controlling shareholder of the listed company, the transaction has been approved by the counterparties China National Environmental Protection Group Co., Ltd and Hebei Province Construction & Investment Group Co.,Ltd and The transaction plan has been reviewed and approved at the twenty-sixth meeting of the seventh board of directors of the listed company. China National Environmental Protection Group Co., Ltd. commits to a lock up period of 36 months since issuance date and Subscribers in the Private Placement transaction commit to a lock up period of 6 months since issuance date. The other approvals pending for the transaction are The board of directors of the listed company needs to again consider and approve the formal plan for this transaction, The asset appraisal report of this transaction needs to be filed by the State-owned Assets Supervision and Administration Commission of the State Council, The general meeting of shareholders of the listed company needs to approve the formal plan of the transaction, and agreed that the counterparty and its concerted actors would be exempted from the acquisition of the listed company by tender, The Anti-Monopoly Bureau of the State Administration for Market Regulation approves the review of the concentration of operators involved in this transaction, The transaction needs to be approved by the State-owned Assets Supervision and Administration Commission of the State Council, Approval by the Shenzhen Stock Exchange and registered with the China Securities Regulatory Commission and Others required by relevant laws and regulations may involve necessary approvals, approvals, filings or licenses. CECEP Environmental Technology Co., Ltd recorded total assets of CNY 26.25 billion, operating income of CNY 8.08 billion, net profit of CNY 576 million and common equity of CNY 7.9 billion.

Kang Haoyu, Wang Zeshi and Li Zhongjie of CITIC Securities acted as financial advisor and Hou Zhiqin and Gui Fang of Grandall Law Firm acted as legal advisor of CECEP Environmental Protection. Wu Yuguang, Xie Hui, Liang Li and Tong Huan of Mazars Certified Public Accountants represented target.

CECEP Environmental Protection Equipment Co.,Ltd. (SZSE:300140) completed the acquisition of CECEP Environmental and CECEP (Shijiazhuang) and CECEP (Cangzhou) and CECEP (Baoding) and CECEP (Qinhuangdao) and Chengd Huanneng from Hebei Province Construction & Investment Group Co.,Ltd. and China National Environmental Protection Group Co., Ltd on June 27, 2023.