Yunnan water investment co., LTD subsidiary company plans to acquire a 90 per cent stake in jinlia environmental science technology in sanminh city for 277 million yuan

Yunnan Water Affairs Announcement, May 12, Yunnan Water Subsidiary Yunnan Solid Waste Investment Co., Ltd. and Zhongshan Chuangzhi Building Materials Technology Co., Ltd. entered into the equity transfer agreement, will be about 277 million yuan acquisition of Sanming City Jinli Environmental Technology Investment Co., Ltd. 90% stake.

It is reported that the Target Company is principally engaged in the construction, operation and management of the BOT project under the license agreement for a period of 30 years from 2012. On the date of the announcement, the first phase of the project plant design capacity of 600 tons per day, while the project factory design capacity is expected to reach 1,200 tons per day in the future. Profit after tax of RMB8.02 million in 2015 and RMB923.9 million in 2016 after tax. As at 31 December 2016, the net asset value of the Target Company was approximately RMB 290 million.

The Group intends to further expand its municipal waste incineration business in Fujian Province, China, through the acquisition of the Group's business strategy to expand its business for further development and penetration of the local market. The acquisition is of great significance and opens the way for the Group to acquire more business in the environmental protection industry in Fujian Province and thus further expand its business in Fujian Province in China and enhance the Group's profitability.