Tianjin Capital Environmental Protection Group Company Limited announced that, on 10 July 2018, the Board considered and approved the resolution for the Company to initiate the PPP Project Contract with Beijing OriginWater, Beijing Jiuan Construction, Tianjin Haihe Construction and Tianjin Water Bureau and TURCC, pursuant to which, inter alia, the parties agree to implement the PPP Project, which covers the adoption of "Build-Operate-Transfer (BOT)" model for the implementation of the PPP Project by the Project Company. On the same day, the Board considered and approved the resolution for the Company to enter into the Joint Venture Contract with Beijing OriginWater, Beijing Jiuan Construction and Tianjin Haihe Construction (Government Representative), pursuant to which, inter alia, the parties agree to establish the Project Company for the implementation of the PPP Project. The registered capital of the Project Company will be RMB 650,000,000 (equivalent to approximately HKD 767,000,000), among which, the Company agrees to contribute in cash of RMB 195,000,000 (equivalent to approximately HKD 230,100,000), representing 30% of the registered capital of the Project Company; Beijing OriginWater agrees to contribute in cash of RMB 227,500,000 (equivalent to approximately HKD 268,450,000), representing 35% of the registered capital of the Project Company; Beijing Jiuan Construction agrees to contribute in cash of RMB 32,500,000 (equivalent to approximately HKD 38,350,000), representing 5% of the registered capital of the Project Company; the Government Representative agrees to contribute in cash of RMB 195,000,000 (equivalent to approximately HKD 230,100,000), representing 30% of the registered capital of the Project Company.