Zhixin Finance APP learned that China Water Industry Group (01129) has issued an announcement regarding the sale of all equity of Anfa International Limited. The company recently received a civil lawsuit from the court. The plaintiff, Yichun Municipal Municipal Development Co., Ltd., filed a civil claim against the company as the first defendant; the buyer as the second defendant; the company for sale as the third defendant; and Yichun Water Affairs as the third party regarding the sale.

The plaintiff claimed that according to Chinese law, the company must give written notice to and seek the consent of the plaintiff before transferring the equity of the for-sale company to any third party. Within 30 days from the date of sending the written notice, the plaintiff has the right to exercise the preemptive right to purchase the equity on the same terms.

The plaintiff claimed that the company infringed its statutory rights by selling the for-sale shares to the buyer without giving written notice to and seeking its consent.

The company is currently seeking legal advice from Chinese legal advisers on the above matters. As of the date of this announcement, as far as the directors are aware, the civil claim does not have a significant impact on the business operations and financial condition of the Group. The company will timely announce any further significant developments regarding the civil claim to its shareholders and potential investors through further announcements.