Yunnan Water Investment : PROPOSED PROVISION OF GUARANTEES BY THE GROUP

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雲南水務投資股份有限公司

Yunnan Water Investment Co., Limited*

(a joint stock limited liability company incorporated in the People's Republic of China)

(Stock code: 6839)

PROPOSED PROVISION OF GUARANTEES BY THE GROUP

This announcement is made by the Company pursuant to the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance and Rule 13.09 of the Listing Rules.

(I) PROPOSED PROVISION OF GUARANTEES BY THE GROUP

On 5 March 2021, the Board has resolved to seek approval from the Shareholders at the EGM for the various guarantees as follows:

• (a) The Company will provide guarantees to the onshore subsidiaries controlled by the Company in respect of the credit business and other business of banks and other financial institutions, and provide guarantees to the offshore subsidiaries controlled by the Company in respect of the credit business and other business of banks and other financial institutions pursuant to the relevant requirements of the PRC; and

• (b) Guarantees in respect of the credit business and other businesses of banks and other financial institutions will be provided by onshore and offshore subsidiaries controlled by the Company to each other pursuant to the relevant requirements of the PRC.

According to the relevant provisions under Article 63 of the Articles of Association, the provision of guarantees contemplated under paragraphs (a) and (b) above is subject to approval by the Shareholders on a case-by-case basis. The Board, however, believes that granting a one-off approval and mandate by the Shareholders to the Board for handling all matters in relation to the provision of the relevant guarantees by the Company and its subsidiaries will enable the members of the Group to have greater flexibility in obtaining timely credit financing.

As such, at the EGM, approval by way of special resolution will be sought from the Shareholders in relation to the provision of the guarantees contemplated under paragraphs (a) and (b) above by the Company and its subsidiaries with a total amount not exceeding RMB7.2 billion. For the avoidance of doubt, the provision of guarantees by the Company and its subsidiaries contemplated under paragraphs (a) and (b) above is irrelevant to all the other existing guarantees provided by the subsidiaries.

The determined limit of guarantees mentioned above represents only the contemplated and maximum amount of guarantees to be provided. The specific amount of guarantee transactions shall be subject to the guarantee agreement(s) signed with the relevant financial institutions. The Company will comply with the relevant applicable requirements of the Listing Rules upon the signing of the relevant guarantee agreement(s).

The provision of above-mentioned guarantees will be carried out strictly in compliance with the requirements of the relevant laws and regulations of the PRC and the Stock Exchange and the Articles of Association.

The above-mentioned authorization shall remain valid and effective from the date on which the resolution for the provision of guarantees by the Group has been considered and approved by the Shareholders at the EGM to the date on which the annual general meeting of the Company is due to be convened in 2022.

• (II) THE EGM

  The EGM is expected to be held by the Company for the purpose of seeking approvals from the Shareholders, among others, on the special resolution on the provision of the relevant guarantees by the Group. Voting at the EGM will be carried out by way of poll.

  A circular containing information relating to, among others, the details on the provision of guarantees by the Group, together with the notice of the EGM, will be despatched to Shareholders in due course in accordance with the relevant requirements under the Listing Rules and the Articles of Association.

• (III) DEFINITIONS

  Unless the context otherwise requires, the following expressions shall have the following meanings in this announcement:

"Articles of Association"	articles of association of the Company;
"Board of Directors" or	the board of Directors;
"Board"
"Company"	Yunnan Water Investment Co., Limited* ( ථی˥ਕҳ༟
ٰ΅Ϟࠢʮ̡ ), a joint stock limited liability company
incorporated in the PRC, whose H Shares are listed on the
Main Board of the Stock Exchange;
"Director(s)"	the director(s) of the Company;
"Domestic Shares"	issued ordinary shares at a nominal value of RMB1.00
per share in the share capital of the Company which are
subscribed for and credited as paid up in RMB;
2

"EGM"	the extraordinary general meeting of the Company which is
expected to be held for the purposes of approving, among
others, the special resolution on the provision of the relevant
guarantees by the Group;
"Group"	the Company and its subsidiaries;
"H Shares"	the overseas listed foreign-invested ordinary shares of the
Company with a nominal value of RMB1.00 per share in
the share capital of the Company, which are listed on the
Main Board of the Stock Exchange (stock code: 6839) and
subscribed for and traded in Hong Kong dollars;
"Listing Rules"	the Rules Governing the Listing of Securities on the Stock
Exchange;
"PRC"	the People's Republic of China, for the purpose of this
announcement only, excluding Hong Kong Special
Administrative Region of the PRC, Macau Special
Administrative Region of the PRC and Taiwan;
"RMB"	Renminbi, the lawful currency of the PRC;
"Shares"	Domestic Shares and/or H Shares;
"Shareholders"	the shareholders of the Company;
"Stock Exchange"	The Stock Exchange of Hong Kong Limited;
"subsidiary/(ies)"	has the same meaning ascribed to it under the Listing Rules;
and
"%"	per cent.
Kunming, the PRC
5 March 2021

By order of the Board

Yunnan Water Investment Co., Limited*

Li Jialong

Chairman

As at the date of this announcement, the executive Directors are Mr. Yu Long (Vice-chairman) and Mr. Yang Fang, the non-executive Directors are Mr. Li Jialong (Chairman), Ms. Li Bo, Mr. Dai Richeng and Mr. Chen Yong, and the independent non-executive Directors are Mr. Liu Shuen Kong, Mr. Zhong Wei and Mr. Zhou Beihai.

* For identification purposes only