China Everbright Water Limited, an environmental protection company focusing on water environment management is pleased to announce that the Company has entered into an equity transfer agreement, a supplementary agreement to the equity transfer agreement, and a cooperation agreement with Tianjin Binhai Environmental Protection Asset Development Co., Ltd. through the Company's indirect wholly-owned subsidiary, Beijing Everbright Water Investment Management Co., Ltd.

Pursuant to the relevant agreements, Everbright Water purchases 65% equity interest in Tianjin Binhai New Area Huantang Sewage Treatment Co., Ltd., for a consideration of approximately RMB666 million (US$102.75 million). 

Huantang Company is currently a wholly state-owned enterprise. Upon completion of the Transaction, it will be converted into a mixed-ownership enterprise. As a major water treatment enterprise in the Binhai New Area of Tianjin Municipality, Huantang Company's main business scope includes wastewater treatment and recycling; pipeline engineering; municipal engineering; construction, management, operation, technical consultation, and ancillary services of wastewater treatment and reusable water facilities; research and development and operation of environmental protection technologies and environmental protection products; utilization and operation of renewable resources; sludge dewatering treatment and its application.

Huantang Company currently has two wastewater treatment projects and one reusable water project, with an aggregate designed daily water treatment capacity of 220,000 m³ and a pipeline network of 49km in length.