Tianhe (Baoding) Environmental Engineering Co., Ltd. announced that it has signed a capital increase agreement with Hebei Sitong New Metal Material Co., Ltd. (SZSE:300428) for the private placement of common shares for gross proceeds of CNY 80,000,000 on January 16, 2017. Post the closing, the registered capital of the company will increase from CNY 60,000,000 to CNY 65,854,500 and the excess amount will be injected into the capital reserve of the company. Post the closing, the investor will hold 8.89% stake in the company. The transaction has been approved at the 26th session of the 2nd directorate of the investor and does not require the approval from its stockholders. The company reported total assets of CNY 666,981,800, total liabilities of CNY 395,429,100, net assets of CNY 271,552,700, revenue of CNY 384,780,500, operating profit of CNY 50,928,800, and net profit of CNY 48,560,100 for the year ended December 31, 2016.