China Water Affairs Group Co., Ltd. ("China Water Affairs" or "the Company¡¨; stock code: 0855.HK), the leading comprehensive water enterprise in China, is pleased to announce that on 29 December 2017, the Company entered into the Framework Agreement with the Shishou Government relating to the urban-rural integrated water supply projects for Shishou City, Hubei Province, PRC.
Pursuant to the Framework Agreement, the Projects will involve a water company for the city with daily water supply capacity of approximately 100,000 tonnes; two waterworks for urban area with aggregate daily water supply capacity of approximately 80,000 tonnes and integrated water supply projects for six rural areas with total daily water supply capacity of approximately 40,000 tonnes.
The Company and the Shishou Government will set up a joint venture company to carry out the Projects. The Shishou Government will contribute to the capital of the joint venture company by way of appraised water assets and hold not more than 49%. The Company will contribute by cash and hold not less than 51% thereof. The joint venture company will be granted concessions on water supply. The details of the cooperation will be subject to the signing of the respective formal cooperation agreements and concession agreements.
Previously, Duan Chuanliang, chairman of the Company, expressed at the interim result announcement that China Water Affairs would continue with step-up efforts to detach from non-core businesses and the proceeds from disposal of non-core assets would be channeled to the provisions for expansion of mainstream business. While City water supply has always been the core water business of China Water Affairs, the Company will leverage on every profitable opportunities for development. China Water Affairs will ride on the trust from the government and the general public at large and its experience from operation and management accumulated through years of providing water services, as well as adhere to the rationale, "Excellence of the Highest Kind Resides in Water¡¨ and ¡§Returning Society with Benevolence", to proactively lay out in the water supply market on a nationwide scale. Meanwhile, the Company will strengthen internal management, accelerate the disposal of non-core assets with an aim to promoting the Group's core competitiveness and corporate value and to maximizing returns to shareholders.
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About China Water Affairs Group Limited
China Water Affairs Group Limited is principally engaged in city water supply, sewage treatment and drainage, and related value-added businesses in the PRC. Currently, the Group¡¦s businesses cover over 50 cities in 3 municipalities of Beijing, Tianjin and Chongqing, and in 13 provinces including Guangdong, Jiangxi, Henan, Jiangsu, Hubei, etc. With a well-established cooperative relationship with various local government authorities, the Group has positioned itself in a leading position in China¡¦s water industry.
This press release is distributed by Wonderful Sky Financial Group Company Limited for China Water Affairs Group Limited.
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