Qihe Environmental Protection

(00976): Longxin
Reorganization Company has
concluded a reorganization
investment agreement and
resumed trading on November
1st.
2022-11-01

Zhitong Finance APP News, Qihe Environmental Protection (00976)

issued an announcement, covering the potential reorganization of
controlling shareholders, the company's indirect controlling
shareholders Longxin Group Co., Ltd., Longxin Holdings Co., Ltd.
and Yushang Investment Group Co., Ltd. (controlling shareholders),
as well as ten other companies related to controlling shareholders.
The division (collectively referred to as the "Longxin Reorganization
Company" with the controlling shareholders) is being reorganized
under the supervision of the Fifth Intermediate People's Court of
Chongqing.

On the date of this announcement, the controlling shareholders

indirectly held about 60.95% of all the issued share capital of the
company through Chongqing Merchantshang Investment Group
(Hong Kong) Co., Ltd.

On October 27, 2022, the company received a notice from Beijing

Long'an Law Firm and Beijing Dacheng (Shanghai) Law Firm, the
co-managers of Longxin Reorganization Company. Longxin

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 Reorganization Company has cooperated with China Partner
(Shanghai) Equity Investment Fund Management Co., Ltd. and
Chongqing Development Investment Co., Ltd. The company
(Chongqing Development, together with the equity investment of
China Partners (Shanghai) is collectively referred to as
"reorganization investors") to enter into a reorganization investment
agreement.

The company was informed by the manager that the reorganization

investment agreement concluded by the reorganization investor
and Longxin Reorganization Company on the reorganization is
legally binding, but the agreement can only be true until (including)
the creditors of Longxin Reorganization Company are approved by
the creditors' meeting and approved by the Chongqing
Intermediate Court.

The company was also informed by the management that the draft
reorganization plan has been submitted to the Chongqing
Intermediate Court and the creditors of Longxin Reorganization
Company. The reorganization creditors' meeting will be held on
November 14, 2022 to consider and approve the reorganization
plan as appropriate. If the reorganization plan is approved by the
creditors of Longxin Reorganization Company, the administrator will
submit the reorganization plan to the Chongqing Intermediate Court
for approval.

On the date of this announcement, the approval of the creditor and

the permission of the court have not been obtained. There is no
guarantee that the reorganization will be approved by the creditors
of Longxin Reorganization Company and the Chongqing
Intermediate Court. The follow-up progress and results of the
reorganization are still uncertain. If the reorganization is not
successfully implemented, there is a risk of declaring the controlling

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 shareholders bankrupt. If the above approval and permission are
obtained and the reorganization is implemented, the final beneficial
owner of the controlling shareholder may change, which may
trigger a mandatory comprehensive offer under the acquisition
code.

It is reported that China Partner (Shanghai) Equity Investment is a

limited company established in China, mainly engaged in equity
investment management and investment management. The
ultimate beneficial owner and actual controller is Mr. Bi Hao.
Chongqing has developed into a limited company established in
China and a wholly state-owned enterprise. Its business scope
includes but is not limited to the investment and management of
funds, equity, debts, etc., the management, development and
operation of state-owned resources, assets and assets formed by
trustee or transfer investments, and capital operation management.

The company has applied for the resumption of trading of shares on

the Stock Exchange from 9:00 a.m. on November 1, 2022.

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