The Board announced that on 24 January 2018, Yunnan Water Investment Co., Limited, Qinyang Qinbei Construction Investment Co., Ltd. (Qinbei Construction) and YCIH No.5 Construction Co., Ltd. (YCIH) entered into the Joint Venture Agreement, pursuant to which the parties to the Joint Venture Agreement agreed to establish the JV Company in Qinyang City, Henan Province, the PRC with a registered capital of RMB 442,003,000. Pursuant to the terms of the Joint Venture Agreement, the JV Company will be owned as to 89.9% by the Company, 10% by Qinbei Construction and 0.1% by YCIH. The JV Company will be responsible for the investment, financing, construction and operation maintenance businesses of the PPP Project. The scope of business of the JV Company includes the investment, financing, construction, operation and management of water resources, urban water supply, wastewater treatment, reusable water, solid waste treatment and ecological water system projects. The above-mentioned business scope shall be subject to the final approval by the industrial and commercial registration authority.