CITIC ENVIROTECH LTD. (Company Registration Number: 200306466G)
The Board of Directors (the 'Board') of CITIC Envirotech Ltd ('CEL' or the 'Company') refers to the announcement made by the Company on 24 November 2014, in relation to the agreement signed with Beijing Drainage Equipment Co. Ltd ('BDE'), a wholly owned subsidiary of Beijing Drainage Group Co Ltd ('BDG') to set up a 49%:51% joint venture company with a total paid up capital of RMB48 million in Beijing.
The Board wishes to announce that the Company has incorporated a joint venture company in Beijing, China.
The 49% owned joint venture company known as Beijing Beipai Membrane Technology Co Ltd ('Beipai') has a total paid up capital of RMB48 million. The main activity of Beipai is to set up a new state of art manufacturing facility with an initial capacity of assembling 2 million square meter of membrane fibers into membrane modules. Memstar Pte Ltd, CEL's wholly owned subsidiary, will sell membrane fibers to the joint venture company.
BDG is the leading water treatment state-owned-enterprise (SOE) in Beijing. Its registered capital is RMB1.8 billion and its asset value is more than RMB15 billion.
The capital injection of RMB23.52 million is funded by the proceeds from the Company's MTN bond raised in April 2015.
That above investment has no material effect on the net tangible assets per share or earnings per share of the Company for the financial year ending 31 December 2015.
None of the directors or substantial shareholders of the Company has an interest, direct or indirect in the above investment.
BY ORDER OF THE BOARD
Lotus Isabella Lim Mei Hua Company Secretary
8 October 2015
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