Zhitong Finance App News, Fuchun Environmental Protection (002479.SZ) issued an announcement. In order to promote Fuyang's full integration into Hangzhou and implement the Yongjiang development strategy, the company's Fuyang industrial base will be demolished and vacated in 2021. Since the wholly-owned subsidiary Zhejiang Huifeng Paper Co., Ltd. (“HSBC Paper” for short) is in the Fuyang industrial base factory area, HSBC Paper is also within the scope of government demolition and retirement. Recently, after negotiations, HSBC Paper and the Chunjiang Subdistrict Office of the People's Government of Fuyang District of Hangzhou reached an agreement and signed the “Industrial Enterprise Demolition Compensation Agreement”. The compensation price for the demolition is about 51.15 million yuan.

HSBC Paper was founded in 2013 and has not carried out substantial operations since its establishment. The assets involved in this demolition are mainly idle assets. After the demolition is completed, it will help to further optimize the company's asset structure and will not have a significant impact on the company's normal production and operation. After compensation for this eviction is completed, HSBC Paper will be vacated, liquidated and cancelled. According to the company's preliminary financial estimates, the transaction is estimated to lose 62.88 million yuan, including a loss of 27.98 million yuan for housing buildings (book value of 44.62 million yuan, compensation amount of 16.64 million yuan after assessment); loss of sewage rights of 34.9 million yuan (book value of 69.41 million yuan, compensation amount of 34.51 million yuan after evaluation).