Sapphire : Investment In An Associated Company - Additional Investment

SAPPHIRE CORPORATION LIMITED

(Incorporated in the Republic of Singapore)

(Company Registration No. 198502465W)

INVESTMENT IN AN ASSOCIATED COMPANY

• ADDITIONAL INVESTMENT

The Board of Directors (the "Board") of Sapphire Corporation Limited (the "Company") together with its subsidiaries (collectively known as the "Group"), refers to the Company's announcements dated 19 November 2018, 30 December 2018, 14 January 2019, 15 August 2019 and 26 December 2019 (the "Announcements").

Unless otherwise defined herein, capitalised terms shall have the same meanings ascribed to them in the Announcements.

The Company's subsidiary, Ranken Railway Construction Group Co., Ltd ("Ranken") has injected additional RMB 10.0 million in cash into the share capital of Chengdu Derun Jinlong Environmental Management Co., Ltd. ("CDJ Environmental Management Co.") representing 25% of the additional capital reserves of CDJ Environmental Management Co.. ("Additional Investment"). Chongqing Derun Environment Co., Ltd., Chengdu Wuhou Industrial Development Investment Management Group Co., Ltd. and Beijing Enterprises Water (China) Investment Limited have injected additional capital reserves in CDJ Environmental Management Co. in accordance with their respective proportion of shareholdings in CDJ Environment Management Co.. The equity interests of the Shareholders in CDJ Environmental Management Co. and their respective contributions as at the date of this announcement are set out below:

Shareholders	Registered	Capital	Total Equity	%
	Capital	Reserves	Interests
	(RMB'000)	(RMB'000)	(RMB'000)
Chongqing Derun Environment
Co., Ltd.	29,000	101,500	130,500	58
(重庆德润环境有限公司)
Ranken	12,500	43,750	56,250	25
Chengdu Wuhou Industrial
Development Investment
Management Group Co., Ltd.	5,000	17,500	22,500	10
(成都武侯产业发展投资管理集
团有限公司)
Beijing Enterprises Water (China)
Investment Limited (北控水务	3,500	12,250	15,750	7
（中国）投资有限公司 )
Total	50,000	175,000	225,000	100

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The Shareholders will be injecting additional capital reserves from time to time and the total capital reserves in CDJ Environmental Management Co. is expected to be about RMB 223 million. As at the date of this announcement, the capital reserves in CDJ Environmental Management Co. is RMB 175 million. The Additional Investment is funded through Ranken's internal resources and is not expected to have any material impact on the Group's earnings per share and the net tangible assets per share for the financial year ending 31 December 2020.

Following the injection of funds, CDJ Environmental Management Co. remains as an associated company of the Group.

None of the Directors or substantial shareholders of the Company has any interest, direct or indirect, in the above transaction, other than in their respective capacities as a Director and/or substantial shareholder of the Company and Mr Cheung Wai Suen's direct interest in Chengdu Kai Qi Rui Business Management Co., Ltd and Ranken of 2.0% and 0.4% respectively.

By Order of the Board

SAPPHIRE CORPORATION LIMITED

Wang Heng

Chief Executive Officer and Executive Director

11 August 2020

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