Group 1 - The company received an inquiry letter from the Shanghai Stock Exchange regarding its proposed acquisition of a 40% stake in Huaxin Environmental Technology Co., Ltd. for 67.64 million yuan [1][2] - The inquiry highlights potential conflicts of interest due to the company's controlling shareholder providing a loan of 75.87 million yuan to the seller, which is comparable to the transaction amount [2][3] - The inquiry requests additional disclosures about the loan's background, repayment arrangements, and the financial capability of the seller [2][3] Group 2 - The target asset, Huaxin Environmental, reported revenues of 59.17 million yuan and a net profit of 158,500 yuan in 2024, but incurred a loss of 596,300 yuan in the first half of 2025 [2][3] - The inquiry seeks detailed information on the target asset's business model, market position, and reasons for its financial performance, as well as the strategic rationale for the acquisition [2][3] - The company is required to clarify its funding sources for the transaction, given its reported cash of 246 million yuan, with 211 million yuan being restricted, and an asset-liability ratio of 79% [3]