On March 21, 2017, Kangda International Environmental Company Limited, a wholly-owned subsidiary of Kangda International Group Co., Ltd., signed an equity transfer agreement with Wang Chuntian. Kangda Group acquires 100% stock equity of Shandong Fengmin Water at a contract price of not less than RMB 32.3 million.

      Shandong Fengmin Water is mainly engaged in the investment, construction and operation of the projects of untreated raw water, tap water, industrial water, agricultural water and water supply network. Shandong Fengmin Water has been granted franchise rights, which allow it invest, construct, operate and maintain a BOO project in Shandong Zhanhua Economic Development Zone.

      The equity transfer agreement signed between Wang Chuntian and Kangda Group and the transactions therein will facilitate the group to expand the business scale in Shandong and consolidate its market position.Kangda Group will be benefited from the expansion of water supply business in China, with more sources of earnings and profits.