The board of directors of CITIC Envirotech Ltd. announced that the Group has incorporated a subsidiary in Liaoyang City, Liaoning Province, China. The 100% owned subsidiary known as United Envirotech Water Resource (Liaoyang Taizihe) Co. Ltd. (UE Liaoyang Taizihe) has a registered capital of USD 28,623,200.

As announced on November 23, 2015, the setting up of UE Liaoyang Taizihe is to undertake the PPP project involving an investment of RMB 549 million into 4 wastewater treatment plants and/or its associated pipe network in Liaoyang City. In return, the company is expected to enjoy a mutually agreed rate of return on the capital invested and will be granted concessions to operate and maintain (“O&M”) these 4 plants. The total wastewater treatment capacity of the 4 plants is approximately 285,000 m /day and the concession periods for the O&M vary between 15 years - 20 years.

The capital injection of USD 28,623,200 is funded from the proceeds of the previous issuance of the MTN bond and the Senior Perpetual Securities.