Hanlan Environment: Proposed issuance of shares and payment of cash to acquire 100% equity of Yuefeng Environmental Protection, the controlling shareholder will be changed to Nanhai Holdings, and the shareholding ratio will reach 19.61%.

Hanlan Environment Announcement: The company plans to purchase 100% of the equity investment fund partnership of a listed company in Nanhai, Guangdong through the issuance of shares and cash payment, and to purchase 7.22% of the shares of Yuefeng Environmental Protection Power Co., Ltd. held by Zhendade Development Co., Ltd. in cash, ultimately achieving 100% control of Yuefeng Environmental Protection. At the same time, it is planned to issue shares to no more than 35 specific investors to raise up to 1.2 billion yuan in matching funds. The total consideration for this transaction is 2.998 billion yuan, with a share payment ratio of 43.21% and a cash payment ratio of 56.79%. After the completion of the transaction, the controlling shareholder of the company will change from the Water Supply Group to Nanhai Holdings, with the actual controller still being the Nanhai State-owned Assets Supervision and Administration Commission. This transaction still requires approval from the company's shareholders' meeting and the relevant regulatory authorities.