The group’s technology and Beijing Capital’s resources the JV to further expand its magnetic water treatment business.
China Environmental Technology Holdings Limited (“China Environmental Technology”) announced that it has entered into an agreement with Beijing Capital (Hong Kong) Limited in relation to the establishment of a joint venture company (“JV”) regarding the magnetic sewage treatment business. Under the agreement, the Group and Beijing Capital (HK) agree to advance an interest-free loan of HK$5 million to establish a wholly foreign owned enterprise (“WFOE”) company named Beijing Shuoqiang Innovative Environmental Protection Co., Ltd (Beijing Shuoqiang). Beijing Shuoqiang is principally engaged in investment and operation of urban environmental projects, the sales and provision of special purpose environmental equipments, technology promotion and consultation services relating to magnetic water treatment equipment.
Established in 2004, Beijing Capital (HK) is a wholly-owned subsidiary of Beijing Capital Co., Ltd. (“Beijing Capital”), the shares of which are listed on the Shanghai Stock Exchange. Beijing Capital (HK) is principally engaged in the investment and financing businesses related to water treatment and environmental protection, as well as value-added chain business and international cooperation business. The Group had entered into a letter of intent in November last year with Beijing Capital (HK) to establish a joint venture company, which will be engaged in sales and provision of technology promotion and consultation services relating to magnetic isolation water treatment equipment and highly-magnetic soil water treatment equipment, according to a China Environmental Technology report.
Mr. Zhang Fang Hong, Chief Executive Officer of China Environmental Technology, said, “The Group is pleased to collaborate with Beijing Capital (HK). After the acquisition of Beijing Jingrui Kemai Water Purification Technology Co., Ltd in November 2010, the Group has been holding additional know-how and technology in sewage and water purification. We believe the Group’s technology feature combined with resource and advantages of Beijing Capital Group as well as the domestic market demands in sewage water treatment and the strong developing trend, and the business network of Beijing Capital (HK), will enables the JV to combine both resource and technology to maximize the abilities and advantages. We also expect the JV, through the application of the magnetic water treatment equipment, to meet the market demand for urban and rural sewage treatment, water treatment for natural water such as lakes and rivers, urban landscape water treatment, upgrading and reconstruction of urban sewage treatment into water for emergency use and high-phosphates industrial wastewater treatment.”
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