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| To Provide Synergies in Wastewater Treatment and Enhanced Revenue Base |
HONG KONG, May 20, 2014 - (ACN Newswire) - CT Environmental Group Limited ("CTEG" or the "Group;" stock code: 1363), a provider of one-stop centralized and customized wastewater treatment services, industrial water supply services and sludge treatment services in China, has announced that its subsidiary has entered into an agreement with the beneficial owner of Guangzhou Yinglong Wastewater Treatment Company Limited ("Guangzhou Yinglong,") to acquire 49% of its equity interest.
Guangzhou Yinglong is principally engaged in the treatment of industrial wastewater. Prior to this agreement, CTEG has held 46% of equity interest in Guangzhou Yinglong. Upon completion, the Group will hold 95% of equity interest in Guangzhou Yinglong, and Guangzhou Yinglong is to become a subsidiary of the Group with its financial results to be consolidated into the Group's accounts.
The consideration of RMB196,000,000 is to be settled in cash. According to the unaudited management accounts of Guangzhou Yinglong, the net profit after taxation and extraordinary items for the year ended 31 December 2013 and the year ended 31 December 2012 were RMB39,135,000 and RMB40,973,000 respectively. The net asset value as of 31 December 2013 was RMB406,397,000.
CTEG Chairman Mr. Tsui Cham To said, "The acquisition of additional equity interest in Guangzhou Yinglong represents an important achievement in the growth of CTEG, thus it is in the interests of the Group and the shareholders as a whole. The transaction not only strengthens our revenue base, but also marks a significant positive business development advance in the Guangdong Province. After Guangzhou Yinglong becomes a subsidiary of the Group, it will deliver outstanding synergies to all of the Group's existing businesses. This will boost Guangzhou Yinglong's efficiency in treatment procedures as well as lower treatment costs, which consolidates the Group's industry leading position and competitive advantage as an industrial wastewater treatment services provider in Guangdong and also contributes to the protection of the local environment. "
About CT Environmental Group Limited
Headquartered in Zengcheng city in Guangdong province, CTEG provides one-stop centralized and customized wastewater treatment and industrial water supply services. CTEG has historically focused on providing wastewater treatment and industrial water supply services to the textile industry and has subsequently extended wastewater treatment services to pulp and paper-making as well as the food and beverage industry, with future plans to expand into other industries. The Group currently has treatment facilities in Guangdong and Hunan provinces, and is building a new facility in Sichuan province. These facilities have daily aggregate constructed capacities of 475,000 m(3) for wastewater treatment and 150,000 m(3) for industrial water supply. Projects under construction or in the pipeline have total designed daily capacities of 355,000 m(3) for wastewater treatment and 100,000 m(3) for industrial water supply. The Group is also engaged in the sludge treatment business. The sludge treatment facilities have commenced operations in the second half year of 2013, and have an annual aggregate capacity of 693,000 tonnes for sludge treatment. On March 6, 2014, CTEG was honored as a "Green Participant" in the "Hang Seng Pan Pearl River Delta Environmental Awards" jointly organized by Hong Kong Hang Seng Bank and Federation of Hong Kong Industries.
About Guangzhou Yinglong Wastewater Treatment Company Limited
Guangzhou Yinglong is located in Xintang Town, Zengcheng City. Facing Dongguan on the opposite side of the Pearl River and adjacent to the East Zone of Guangzhou Economic and Technological Development Zone, Xintang Town is the industrial hub of Zengcheng and a famous production center of denim garments in China. The town serves as home to more than 3,000 textile and garment manufacturing enterprises. It accounted for 60% of the country's total denim garment production, generating annual production valued at more than RMB30 billion. Xintang Town also has more than 100 bleaching and dyeing enterprises. It has become an important part of the garment industrial chain.
Guangzhou Yinlong is a major enterprise located in Xintang Environmental Protection Industrial Park. It specializes in the centralized treatment of industrial wastewater generated from the bleaching and dyeing of denim and textile products. It has a planned capacity of 250,000 tonnes per day and occupies an area of 208 acres. Currently, wastewater treatment capacity can reach up to 100,000 m3. The second phase is still under construction and is expected to be completed in late 2014, raising wastewater treatment capacity by 150,000m3. This will make it the largest industrial wastewater treatment facility in Guangdong Province, providing wastewater treatment services to close to one hundred denim washing and printing and dyeing customers in the industrial park.
Upon completion of the equity transaction, CTEG will be responsible for the treatment of wastewater generated from weaving, printing and dyeing activities in the industrial parks in Zengcheng. The transaction has also established a solid foundation for the Group's business expansion.
Media Enquiries
Strategic Financial Relations (China) Limited
Ms. Esther Lau
Tel: (852) 2864 4845
Email: esther.lau@sprg.com.hk
Topic: Press release summary
Source: CT Environmental Group Limited
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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