According to the announcement of WG Env Tech (01845), on June 28, 2024, the seller, WG Development (Hong Kong) (the indirect wholly-owned subsidiary of the Company) and the buyer, Guangzhou WG Env Tech (the indirect non-wholly-owned subsidiary of the Company), entered into an equity transfer agreement, in which the seller agreed to sell and transfer and the buyer agreed to purchase all equity of the target company Debo Environment (Guangzhou), at a price of RMB 42 million.

The buyer is mainly engaged in providing solid waste solutions, while the target company is currently mainly engaged in project management services for solid waste disposal. All the existing solid waste disposal projects under the target company are constructed and commissioned by the buyer as the general contractor. The purpose of this transfer is to optimize the internal structure of the Group, strengthen the ability of resource integration, improve the collaboration ability of business and personnel, and enhance its operational efficiency by integrating the investment, construction and operation of projects involving similar technologies on the same platform. The Board of Directors believes that the transfer is in the overall interests of the company and shareholders.

After the completion of the transaction, the group's indirect shareholding in the target company will be reduced from 100% to 90%. The target company will remain a subsidiary of the Company, and the assets, liabilities and performance of the target company will continue to be included in the Group's consolidated financial statements.