SIIC

SIIC: acquired 100% equity stake in two water treatment companies through its 75.5% owned subsidiary SIIC Weifang: ( i) Dongguan Shijie, which is undertaking a 25-year wastewater treatment project with capacity of 60,000 tpd, for Rmb 87.99m, and (ii) Dongguan Fenggang, which is undertaking a 25-year wastewater treatment project with capacity of 50,000 tpd, for Rmb 78.57m Aggregate of Rmb166.56m falls in the higher range of their combined valuation of Rmb151.32-177.85m. The purchase will be wholly funded by internal funds and loan from wholly-owned subsidiary of the controlling shareholder of the company, and Shanghai Industrial Holdings. Growth in SIIC has been led by acquisitions. We believe these two acquisitions are just two of a few in the pipelines, strong balance sheet gives SIIC the muscle to execute more acquisition plans.