Xiangyu to Established a JV with State Owned Enterprise in Hunan Province so as to secure RMB 2 Billion Environmental Protection Project (Hong Kong, [.]October 2012) Xiangyu Dredging Holdings Limited (“Xiangyu Dredging” or the “Company”, stock code: 871), the largest privately owned dredging company in China in terms of dredging volume in 2010, is pleased to announce to have reached legally binding framework agreement with ZhuzhouCyclic Economy Investment and Development Co., Ltd.* (株洲循環經濟投資發展有限責任公司) (“Zhuzhou Investment”) at Hunan Province in China. In accordance to the agreement, Xiangyu Dredging and Zhuzhou Investment have agreed to take steps to incorporate a new enterprise (“New JV”). Under the agreement, by following the plan, the New JV will take part in environmental management and construction of infrastructure in the Qingshui Lake area (“Qingshui Lake Projects”). These projects are quintessential to the environmental management program of the ZhuzhouQingshuitang Cyclic Economy Industrial Zone at Hunan Province. These projects are expected to last for about five years. The total project value of the Qingshui Lake Projects is expected to reach approximately RMB2 billion. The initial registered capital of New JV is RMB50 million. The Company and Zhuzhou Investment will initially inject RMB40 million and RMB10 million (which represents 80% and 20% respectively of the initial registered share capital of New JV). Zhuzhou InvestmentZhuzhou Investment is a State-owned enterprise established by the Committee of ZhuzhouQingshuitang Cyclic Economy Industrial Zone(株洲清水塘循環經濟工業區委員會).It is the financing and investment platform of the local government of the ZhuzhouQingshuitang Cyclic Economy Industrial Zone, which is responsible for, among other matters, the environmental management, building of infrastructure in the QingshuiLake area, Hunan Province, the PRC. |