New Century Rating notes that according to an announcement issued on May 9, 2024 by Kunming Dianchi Water Co., Ltd. (“Dianchi Water”, stock code: 03768.HK), an investment subsidiary of Dianchi Lake, on May 9, 2024, the company holds 246 million shares of Dianchi Water Services (accounting for about 23.86% of the total shares of Dianchi Water) will be judicially auctioned on the auction platform. The judicial auction will be held from 10:00 a.m. on June 6, 2024 to 10:00 a.m. on June 7, 2024; as of May 9, 2024, the company held 660 million shares of Dianchi Water Services (about 660 million shares) of Dianchi Water (about 23.86% of the total shares) of Dianchi Water Services (64.16% of the total shares of Dianchi Water), and all shares are pledged/judicially frozen; if this judicial auction is finally completed, the number of Dianchi Water shares held by the company will be reduced to 415 million shares (accounting for about 40.30% of the total shares of Dianchi Water), which will not cause changes in the control of Dianchi Water Services.