Group 1 - The core announcement involves the exchange of convertible bonds by Kanda Environmental, allowing bondholders to convert their bonds into 546,728,004 shares, representing approximately 25.55% of the company's total issued share capital at an exchange price of HKD 0.25 per share [1] - Following the completion of the exchange on July 21, 2025, the combined ownership of Duan Chuanliang and Sharp Profit will amount to 1,155,718,004 shares, which is about 54.01% of the total issued share capital of the company [1] - Sharp Profit, a wholly-owned subsidiary of China Water, is a major shareholder, holding approximately 28.46% of the company's total issued share capital as of the date of the announcement [1] Group 2 - Due to the bond exchange, Duan Chuanliang is required to make a mandatory unconditional cash offer for all shares, excluding those already owned or agreed to be acquired by him and Sharp Profit [2] - Duan and Sharp Profit will act as joint offerors for the share offer, with an expected acquisition distribution of approximately 93.00% and 7.00% respectively [2] - China Water, through its subsidiary Sharp Profit, is positioned to maintain or increase its strategic investment in the company, which is primarily engaged in urban water supply, wastewater treatment, and environmental services [2]