CITIC ENVIROTECH LTD. (Company Registration Number: 200306466G)
=============================================================== INCORPORATION OF A JOINT VENTURE COMPANYThe Board of Directors (the 'Board') of CITIC Envirotech Ltd ('CEL' or the 'Company') refers to the announcement made by the Company on 10 October 2014, in relation to the agreement signed with Chengdu Xingrong Investment Co. Ltd ('XRTZ' or the 'Xingrong Group') to set up a 49%:51% joint venture ('JV') company with paid up capital of RMB50 million in Sichuan, China.
The Board wishes to announce that the Company has incorporated a joint venture company in Sichuan, China.
The 49% owned joint venture company known as Chengdu Xingrong Environment Co. Ltd has a total paid up capital of RMB50 million. The new JV company will provide Engineering, Procurement and Construction (EPC) services using CEL's membrane technologies and membrane products, as well as to undertake investments in water treatment projects in the western China.
The first block of projects to be undertaken by the JV is the expansion and upgrading of wastewater treatment plants and recycling of treated wastewater with combined capacity of 1 million m3/day using CEL's proprietary membrane bioreactor (MBR) and continuous membrane filtration (CMF) technology. The total value of the first block of projects is estimated to exceed RMB 1.5 billion.
XRTZ is a state-owned enterprise listed in the A-share of the Shenzhen Stock Exchange and is a prominent water company in China who owns about 5 million m3/day of water treatment concessions.
The capital injection of RMB24.5 million is funded by the proceeds from the Company's MTN bond raised in April 2015.
The above investment has no material effect on the net tangible assets per share or earnings per share of the Company for the financial year ending 31 December 2015.
None of the directors or substantial shareholders of the Company has an interest, direct or indirect in the above investment.
BY ORDER OF THE BOARD
Lotus Isabella Lim Mei Hua Company Secretary
30 October 2015
|
distributed by
|
