Media
News Release
13 Jun 2018

Everbright Water Acquires Xuzhou Municipal Engineering Design Institute Co., Ltd. in Jiangsu Province


Singapore, 13 June 2018 – China Everbright Water Limited ("Everbright Water" or the "Company", SGX: U9E) (中国光大水务有限公司), an environmental protection company focusing on water environment management, is pleased to announce that the Company signed an equity stake purchase agreement today with Xuzhou Municipal Engineering Design Institute Co., Ltd. ("Xuzhou Municipal Design Institute") in Jiangsu Province and its existing shareholders to acquire the entire equity interest in Xuzhou Municipal Design Institute at a cash consideration of RMB82 million*.

Established in 2004, Xuzhou Municipal Design Institute is the only national grade-A municipal design institute located within 20 prefecture-level cities in the Huaihai Economic Zone. It has a number of important qualifications, including multiple grade-A qualifications for municipal sector, grade-A qualification for construction sector, grade-A qualification for engineering consultation, among others. The institute is principally engaged in the survey, mapping, design and consultation of projects relating to roads, bridges, tunnels, water supply, drainage, heat, gas, electricity, construction, landscape, sanitation, highways and water conservancy, as well as the consultation of project costs, project management, etc. Additionally, the institute is part of the first batch of the pilot enterprises in Jiangsu Province envisioned to test engineering procurement construction (EPC) and life-cycle consultation services. It is also one of the high-tech enterprises in the province.

The acquisition of Xuzhou Municipal Design Institute has great significance for Everbright Water to further enrich its full-service business chain. Firstly, the institute will complement the Company’s capabilities in the field of municipal engineering design. Furthermore, by having its own municipal design institute, the Company will enhance the efficiency of its engineering design works while reducing the relevant costs. With this new platform, the Company will also be able to undertake design projects relating to water services to create a new source of profit growth. Following the completion of the acquisition, Everbright Water will undergo a comprehensive integration of its internal technical design resources to improve its strength in municipal engineering design related to the water environment sector. In addition, it will continuously enhance its capabilities in providing full-services from the early-stage planning and design till the final-stage operation and management.

Mr. Wang Tianyi, CEO of China Everbright International Limited and Chairman of Everbright Water, said: "In recent years, with China furthering its ecological conservation and green development, the market for comprehensive management of water environment, comprehensive protection of water ecology and comprehensive utilisation of water resources has been growing. In addition to the strategies concerning new urbanisation, rural revitalisation and ecological protection for Yangtze River Economic Belt, there is a rapidly increasing demand for professional integrated planning and design services. As an integrated water services group, Everbright Water will adhere to its corporate mission of "Devoted to Ecology and Environment for a Beautiful China", seize opportunities arising from the market and relevant policies, fully integrate its resources and advantages in areas such as technology, investment, construction, operation, management and corporate brand. In addition, it will leverage on the expertise and capabilities of Xuzhou Municipal Design Institute, so as to further expand the business chain and broaden its business scope. Its aim is to properly synchronize its light- and heavy-assets with its businesses, and pursue excellent sustainable development."

*Note: For details about the acquisition, please refer to the announcement of the Company published on 13 June 2018.