Group 1 - The company, Zhongyuan Environmental Protection Co., Ltd., has approved the acquisition of the Zhengzhou Sanhuan and Sihuan recycled water pipeline assets through a public bidding process during the third extraordinary shareholders' meeting held on December 22, 2025 [2] - On December 25, 2025, the Zhengzhou Public Resource Trading Center announced Zhongyuan Environmental Protection as the acquirer of the Sanhuan and Sihuan recycled water pipeline assets, and agreements were signed with the Zhengzhou Municipal Facilities Affairs Center and the Zhengzhou Urban Management Bureau [2] Group 2 - The company has completed the delivery of the Sanhuan recycled water pipeline assets and signed the asset delivery confirmation. From the date of delivery, all rights, benefits, and risks associated with the Sanhuan recycled water pipeline assets have transferred to Zhongyuan Environmental Protection [3] - Within 12 months from the asset delivery date, the Zhengzhou Municipal Facilities Affairs Center and the Zhengzhou Urban Management Bureau are responsible for conducting the final audit of the Shangyi Road recycled water pipeline project and transferring all related documents and procedures to Zhongyuan Environmental Protection [3]

Core Viewpoint - Zhongyuan Environmental announced plans to acquire 100% equity of Zhengzhou Xinhong Reclaimed Water Resource Development Co., Ltd. for 146 million yuan and Zhengzhou Gewo Environmental Development Co., Ltd. for 133 million yuan, totaling approximately 279 million yuan, marking another asset acquisition following the 4.421 billion yuan acquisition of Zhengzhou Sewage Purification Co., Ltd. in 2022 [1][4]. Group 1: Acquisition Details - The acquisitions of Xinhong and Gewo will be conducted through public bidding, with both transactions involving the Zhengzhou State-owned Assets Supervision and Administration Commission [1][4]. - Xinhong and Gewo were previously subsidiaries of Zhengzhou Sewage Purification Co., Ltd. and were transferred to Zhengzhou Public Utilities Investment Development Group Co., Ltd. before being reassigned to the Zhengzhou State-owned Assets Commission [1][4]. Group 2: Financial Performance - Xinhong's core business includes reclaimed water sales, metering, and maintenance services, reporting a revenue of 26.3011 million yuan and a net profit of 5.445 million yuan for the fiscal year 2024 [1][4]. - Gewo's main operations involve sludge treatment technology and has developed a comprehensive technical system, achieving a revenue of 61.5531 million yuan and a net profit of 7.4401 million yuan in 2024. However, its performance significantly declined in the first nine months of 2025, with revenue of only 1.13 million yuan and a net loss of 589,600 yuan [2][5]. Group 3: Valuation and Payment - The valuation of Xinhong's total equity was assessed at 146 million yuan as of September 30, 2025, reflecting an increase of 34.4669 million yuan, or a 30.90% appreciation over its book value [2][5]. - The acquisition is expected to be financed in cash, although specific funding sources have not been disclosed in the announcement [2][5].