This is a voluntary announcement made by the Company.
On 15 March 2018, the Purchaser, a wholly owned subsidiary of the Company, enteredinto the
Agreements to acquire, among others, 100% equity interest in the Water SupplyCompany I and
Water Supply Company II at the total consideration of approximatelyRMB122 million, of which
RMB115 million for repayment of debt and RMB7 million asthe transfer price.
To the best of the Directors’ knowledge, information and belief, and after making allreasonable
enquiries, the Vendors are Independent Third Parties.
The Water Supply Company I and Water Supply Company II are principally engaged inwater
supply in Xiayi County, Henan Province, PRC. The total daily water supplycapacity of the Water
Supply Company I and Water Supply Company II is approximately50,000 tonnes. The water
supply operation has been granted a concession to operatewater supply until 2044.
The Company is of view that the Acquisition will further strengthen its water supplybusiness in
Henan Province, PRC.
In this announcement, unless the context otherwise requires, the following words andphrases
have the following meanings:
“Acquisition” the acquisition of the Water Supply Company I and Water Supply Company II by
the Purchaser pursuant to the Agreements
“Agreements” the agreements dated 15 March 2018 made between the Vendors and the
Purchaser relating to, among others, the Water Supply Company I and Water Supply Company II
“Board” the board of directors of the Company
“Company” China Water Affairs Group Limited, a company incorporated in the Cayman Islands
and continued in Bermuda with limited liability, the shares of which are listed on the Stock Exchange
“Directors” the directors of the Company“Group” the Company and its subsidiaries
“Hong Kong” the Hong Kong Special Administrative Region of the PRC
“Independent Third Party” a third party who is independent of and not connected with the
Company or its connected persons (as defined under the Listing Rules)
“Listing Rules” the Rules Governing the Listing of Securities on the Stock Exchange
“PRC” The People’s Republic of China which, for the purpose of this announcement, excludes
Hong Kong, the Macau
Special Administrative Region and Taiwan
“Purchaser” 河南國源水務有限公司(Henan Guoyuan Water Affairs Co. Ltd.*), a company
incorporated in the PRC with limited liability and a wholly owned subsidiary of the Company
“Stock Exchange” The Stock Exchange of Hong Kong Limited“Vendors” the vendors under the
“Water Supply Company I” 夏邑縣聰辰自來水有限公司(Xiayi Congchen Water
Supply Co. Ltd.*)
“Water Supply Company II” 夏邑縣偉業水務有限公司(Xiayi Weiye Water Affairs
By order of the BoardChina Water Affairs Group Limited Duan Chuan Liang Chairman Hong Kong, 15 March 2018
As at the date of this announcement, the Board comprises four executive Directors,being Mr.
Duan Chuan Liang, Ms. Ding Bin, Ms. Liu Yu Jie and Mr. Li Zhong, fournon-executive Directors,
being Mr. Zhao Hai Hu, Mr. Zhou Wen Zhi, Mr. Makoto Inoueand Ms. Wang Xiaoqin, and four
independent non-executive Directors, being Mr. ChauKam Wing, Mr. Ong King Keung, Mr. Siu Chi
Ming and Ms. Ho Ping.
* For identification purposes only