This is a voluntary announcement made by the Company.
On 20 April 2018, Gongan Government and the Company entered into a cooperationagreement pursuant to which the parties agreed to establish a joint venture company (“JVCompany”) which will be principally engaged in water supply business in Gongancounty, Hubei province, PRC.
Gongan Government or its designated entity Gongan Water Company will contribute tothe capital of the JV Company by injecting appraised water assets and will hold 49% ofthe equity interest in the JV Company. The Company or its subsidiary will contribute byway of cash and will hold 51% of the equity interest. The total registered capital of theJV Company will be approximately RMB237 million. The JV Company will be granteda concession on water supply in the existing water supply area of Gongan WaterCompany and such other areas as approved by the government. It is expected that thetotal designed daily water supply capacity of the JV Company will reach 130,000 tonnesper day.
The Group is currently a water supply operator in Jingzhou city, Hubei province. Thecooperation agreement represents a further expansion of the Group’s water supplybusiness in Hubei province.
To the best of the Directors’ information and belief, Gongan Government is a third partyindependent of the Company and its connected persons and is not a connected person ofthe Company.
In this announcement, unless the context otherwise requires, the following words andphrases have the following meanings:
“Board” the Board of directors of the Company
“Company” China Water Affairs Group Limited, a company
incorporated in the Cayman Islands and continued inBermuda with limited liability, the shares of which arelisted 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
“Listing Rules” the Rules Governing the Listing of Securities on the
“PRC” The People’s Republic of China which, for the purpose of this announcement, excludes Hong Kong, the Macau
Special Administrative Region and Taiwan
“Stock Exchange” The Stock Exchange of Hong Kong Limited
“Gongan Government” 公安縣人民政府 (The People’s Government of
Gongan), Hubei province, the PRC
“Gongan Water Company” 公 安 縣 宏 源 自 來 水 有 限 公 司 ( G o n g a n W a t e r Company), a state-owned enterprise under Gongan Government
By order of the BoardChina Water Affairs Group Limited Duan Chuan Liang
Hong Kong, 23 April 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