China Everbright Water Limited announced that the Company and Shanghai Communications Construction have incorporated a joint venture company, EW Water (Anyang) Co., Ltd. (Guang Shui Shui Wu (An Yang)You Xian Gong Si) (the New JV Company), in the People's Republic of China (the "PRC") for the purpose of undertaking the waste water treatment plant in Anyang City, Henan Province, the PRC. The New JV Company has been incorporated with a registered capital of RMB 220,995,600 and a shareholding breakdown as follows: Name of Shareholders, Equity Stake, The Company, 99%, Shanghai Communications Construction, 1%. The incorporation of the New JV Company results in the New JV Company becoming a non-wholly owned subsidiary of the Company.

The principal business activities of the New JV Company include (but are not limited to) waste water treatment and reusable water; municipal facility management; water pollution management; water environment pollution prevention and control services; solid waste management; technology services; technology development. None of the Directors or controlling shareholders of the Company has any interest, direct or indirect, in the incorporation of the New JV company. Each of (i) Shanghai Communications Construction; and (ii) Anyang Housing and Development Bureau is not regarded as an "interested person" of the Company or an associate of an "interested person" of The Company under the listing manual of the Singapore Exchange Securities Trading Limited.

To the best of the knowledge, information and belief of the Directors having made all reasonable enquiries, each of (i) Shanghai Communications construction (whose ultimate beneficial owner is China Communications Construction Company Limited (Zhong Guo Jiao Tong Jian She Gu Fen You Xian Gong Si), the shares of which are listed on the Shanghai Stock Exchange (Stock Code: 601800) and The Stock Exchange of Hong Kong Limited (the "SEHK") (Stock Code: 1800)); and (ii) Anyang housing and Development Bureau (being a government authority under the People's Government of Anyang City), is a third party independent of the Company and its connected person(s) for the purpose of the Rules Governing the Listing of Securities on the SEHK (the " SEHK Listing Rules").