China Water Affairs : VOLUNTARY ANNOUNCEMENT - FORMATION OF A JOINT VENTURE IN LUSHAN
November 06, 2019 at 03:35 am EST
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
(Incorporated in the Cayman Islands and continued in Bermuda with limited liability)
(Stock Code: 855)
VOLUNTARY ANNOUNCEMENT
FORMATION OF A JOINT VENTURE IN LUSHAN
This is a voluntary announcement made by the Company.
On 5 November 2019, Lushan Government and Silver Dragon Water Investment Company Limited ("SDWI"), a wholly-owned subsidiary of the Company entered into a cooperation agreement pursuant to which the parties agreed to establish a joint venture company ("JV Company") which will be principally engaged in water supply business in Lushan county, Henan province, PRC.
Lushan Government or its designated entity Lushan Water Company will contribute to the capital of the JV Company by injecting appraised water assets and will hold 20% of the equity interest in the JV Company. SDWI will contribute by way of cash and will hold 80% of the equity interest. The total registered capital of the JV Company will be approximately RMB120 million. The JV Company will be granted a concession on water supply in the existing water supply area of Lushan Water Company and such other areas as approved by the government for 30 years. The urban and total population of Lushan county reach approximately 250,000 and 1 million respectively. It is expected that the total designed daily water supply capacity of the JV Company will reach 30,000 tonnes per day.
The Group is currently the water supply operators in multiple locations in Henan province. The cooperation agreement represents a further expansion of the Group's water supply business in Henan province and strengthen the synergy effect in the region and province.
To the best of the Directors' information and belief, and after making all reasonable enquiries, the Lushan Government is a third party independent of the Company and its connected persons and is not a connected person of the Company.
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DEFINITIONS
In this announcement, unless the context otherwise requires, the following words and phrases have the following meanings:
"Board"
the Board of directors of the Company
"Company"
China Water Affairs Group Limited, a company
incorporated in the Cayman Islands and continued in
Bermuda with limited liability, the shares of which are
listed on the Stock Exchange
"Directors"
the directors of the Company
"Group"
the Company and its subsidiaries
"Hong Kong"
the Hong Kong Special Administrative Region of the
PRC
"Listing Rules"
the Rules Governing the Listing of Securities on the
Stock Exchange
"PRC"
The People's Republic of China which, for the purpose
of this announcement, excludes Hong Kong, the Macau
Special Administrative Region and Taiwan
"RMB"
Renminbi, the lawful currency of the PRC
"Stock Exchange"
The Stock Exchange of Hong Kong Limited
"Lushan Government"
魯山縣人民政府 (The People's Government of
Lushan), Henan province, the PRC
"Lushan Water Company"
魯山縣城南水業有限公司 (Lushan Water Company), a
state-owned enterprise under Lushan Government
By order of the Board
China Water Affairs Group Limited
Duan Chuan Liang
Chairman
Hong Kong, 6 November 2019
As at the date of this announcement, the Board comprises five executive Directors, being Mr. Duan Chuan Liang, Ms. Ding Bin, Ms. Liu Yu Jie, Mr. Li Zhong and Mr. Duan Jerry Linnan, four non-executive Directors, being Mr. Zhao Hai Hu, Mr. Zhou Wen Zhi, Mr. Makoto Inoue and Ms. Wang Xiaoqin, and four independent non-executive Directors, being Mr. Chau Kam Wing, Mr. Ong King Keung, Mr. Siu Chi Ming and Ms. Ho Ping.
For identification purposes only
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Disclaimer
China Water Affairs Group Ltd. published this content on 06 November 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 November 2019 08:34:21 UTC
China Water Affairs Group Ltd, formerly China Silver Dragon Group Ltd, is an investment holding company principally engaged in city water supply operation and construction. The Company operates its business through three segments. The City Water Supply Operation and Construction segment engages in the provision of water supply operation and construction services. The Environmental Protection segment engages in the provision of sewage treatment and drainage operation and construction services, solid waste and hazardous waste business, environmental sanitation and water environment management. The Property Development and Investment segment engages in the development of properties for sale and investment in properties for long term rental.