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These authorities may impose fines and penalties upon our operations in China, restrict our operating privileges in China, or take other actions that could have a material opposed impact upon our business, monetary condition, results of operations, popularity and prospects, in addition to the trading price of our common shares. Accordingly, in circumstances regarding a direct investigation or collection of proof performed by international authorities throughout the territory of the PRC, the foregoing actions are required to be performed via collaboration with or by acquiring prior consent from Chinese authorities. The CSRC has not issued any such definitive rule or interpretation, and we’ve not chosen to voluntarily request approval under the New M&A Rule. Founded in 2012 and headquartered in Yantai, China, Newater, operating its enterprise by way of its wholly owned subsidiary Yantai Jinzheng Eco-Technology Co. If prior CSRC approval was required, we might face regulatory actions or different sanctions from the CSRC or different Chinese regulatory authorities.

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