Proposed additional acquisition of Chengdu Water Company

Hing Yung Investment (000598) September 29 issued a private release plan, the company intends to be no less than 16.90 yuan/share price of non-public offerings of not more than 140 million shares, the acquisition of the controlling shareholder Chengdu Xing Rong Group Co., Ltd. Chengdu City Water Limited liability company owned 100% Equity.　　Hing Yung Investment said that after the completion of the acquisition, the company's business will expand to the field of water supply, so that the company becomes engaged in collecting raw water collection, water production, transmission and distribution, water, sewage treatment and other business as a whole, the formation of integrated water supply and drainage group of the complete framework, is the company to achieve its own development strategy must pass. In the next few years, Xing Rong investment will actively participate in municipal sewage sludge disposal, renewable water projects, further extend the company's industrial chain, seize the opportunity of China's water industry market to accelerate development, through the new, mergers and acquisitions and bot to participate in different areas of sewage treatment or water supply projects, open up other regions of　　In the future water market competition to seize the opportunity.　　Xing Rong Investment wholly-owned subsidiary drainage company has signed with the Chengdu Municipal government, "sewage treatment concession agreement", clearly dividing the boundary between the government and the enterprise, so that the government back to the position, so that enterprises become a real market-oriented responsibility of the main body, the real realization of the "separation of enterprises and businesses", in line with the development of China's water market reform trends and changes. The non-public offering of the proposed acquisition of the water company also signed with the Chengdu Municipal government, "water concession agreement", clear since January 1, 2010 will become the city center town water Concession franchise to the water company, in addition, the water company and Chengdu, Pi County, the Waterworks Bureau signed "PI franchise agreement."