(31 May 2015, Hong Kong) China Water Affairs Group Limited (¡§China Water Affairs¡¨ or the ¡§Company¡¨, together with its subsidiaries known as the ¡§Group¡¨) (stock code: 0855.HK), a leading integrated water service provider in China, is pleased to announce that, on 26 May 2015, a wholly owned subsidiary of the Company entered into an equity transfer agreement to dispose the 1,000,000,000 ordinary shares in Jiu Rong Holdings Limited (¡§Jiu Rong Holdings¡¨) (stock code: 02358.HK) at a total consideration of HK$200 million.
On 29 May, the Group has received the consideration in the sum of HK$200 million. The cash proceeds received will be used to improve the operation efficiency and service level of operating core water business and expand the share in China water market.
Mr. Duan Chuanliang, Chairman of China Water Affairs, said, ¡§our strategic focus is the core water business. By disposing the non-core assets, we will be able to prioritize resources to accelerate the development of core business and increase returns for our shareholders. The sale of the entire ordinary shares in Jiu Rong Holdings is in line with the Group¡¦s business development strategy and demonstrates our commitment in the core water business.¡¨
¡§On 22 May, the State Council issued No. 42 guideline to promote the public-private partnership (¡§PPP¡¨) in public services. The guideline clarifies the central government¡¦s policy to comprehensively and profoundly promote the reform in the public services sector. We will leverage the golden opportunity for the growth of water business, scale up the investment and contribute to the economic development of the country. We believe our efforts would improve the people¡¦s living standards and ensure safety of the drinking water for the welfare of the society,¡¨ said Mr. Duan.
~ END ~
About China Water Affairs Group Limited
China Water Affairs Group Limited is principally engaged in waterworks investment and operations as well as other related businesses in the PRC. The Group¡¦s businesses include urban water supply, water supply systems management, meter installation and related value-added businesses. Currently, the Group is undergoing rapid development, with operations being extended to over 30 cities in various provinces and municipality including Hunan, Henan, Hainan, Jiangsu, Jiangxi, Hubei, Guangdong, Chongqing and Shanxi. With a well-established cooperative relationship with various local water authorities, the Group has achieved a leading position in the PRC water industry.
This press release is issued by PRChina Limited on behalf of China Water Affairs Group Limited.
For investor and media enquiries
Henry Chik / Peggy Yuan / Ivory Xu
Tel: (852) 2522 1838 / (852) 2522 1368 / (852) 2521 2823
Email: email@example.com / firstname.lastname@example.org / email@example.com