Beijing Capital Co., Ltd (SHSE:600008) and Beijing Capital (Hong Kong) Limited agreed to acquire 51% stake in Linyi Guanghua Water Service Co., Ltd. and Shandong Liangshan Haiyuan Water Service Co., Ltd. for approximately CNY 100 million on January 20, 2014. Beijing Capital Co., Ltd is acquiring Shandong Liangshan Haiyuan Water Service for CNY 74.8 million and Beijing Capital (Hong Kong) Limited is acquiring 51% stake in Linyi Guanghua Water Service Co., Ltd for CNY 27.5 million. As of December 31, 2013, the Liangshan Haiyuan's audited total assets is CNY 57.81 million, net asset is CNY 49.54 million, revenue is CNY 14.43 million and net profit is CNY 5.68 million. As of December 31, 2013, Linyi Ganghua's audited total assets is CNY 42.17 million, net asset is CNY 40.94 million, revenue is CNY 12.92 million and net profit is CNY 3.66 million.

The Directorate of Beijing Capital approved the transaction. The transaction was approved in the fifth Directorate meeting of Beijing Capital on May 23, 2014.