Brief Introduction

The company,was Established in 1999 and incorporated into Xiangtan Electrochemical by asset securitizationin January, 2015, is the wholly owned subsidiary of Xiangtan Electrochemical. The company's registered capital is 143 millionyuan and the daily wastewater treatment capacity is200,000 tons. The business includes: Centralized treatment of urban sewage and related technical services, industrial wastewater treatment and sludge treatment, application and development ofutility technology for wastewater treatment. The company controls Hexi Wastewater Treatment Plant, Heling Wastewater Treatment Plant and Sludge Treatment Center.

Project Construction &Operation

1. Hexi Wastewater Treatment Plant

Located in Xiangzhu Village, Hutan Town, Yuhu District. Covers an area of 155 mu(include two pump station). The daily wastewater treatment capacity is 200,000 tons. At the end of 2014, the upgrading and reconstruction projectcompleted and the discharge standards have been raised from national level 1 B to national level 1 A.

2. Heling Wastewater Treatment Plant

Located in the southwest of Xiangtan Electrochemical Industry & Logistics Park.The total design scale is 50,000 t/dand is constructed in two stages, which the first stage ( began to construct on Aug.30, 2016 ) has beenfinished with the scale of 10,000 t/d.

3. Sludge Treatment Center

Located in Heling Wastewater Treatment Plant. The sludge treatment scale is 150 t/d fornow.

4. Jiuhua Wastewater Treatment Plant

Located in XiangtanEconomic and Technological DevelopmentZone. Covers an area of 98 mu. The design scale is 100,000 t/d. It is constructed in two stages:the first stage began to construct in Oct., 2013 and finished in Dec., 2015 with the scale of 50,000 t/d. This project is jointly invested and constructed by Xiangtan JiuhuaEconomic Construction Investment Co.,Ltd., Xiangtan Guozhong Wastewater Treatment Co.,Ltd. and our company with a registered capital of 120 million yuan, which our company accounts for 6% of the stock.

The Development Plan

Through capturing the favorable opportunity of national policy support for waster-water treatment and environmental protection industries, develop the scale of waste-water treatment and expand the business scope. The development direction extends from the single sewage treatment to the comprehensive entity of sewage treatment, industrial waste-water treatment,sludge treatment and energy conservation and environmental protection by taking advantage of various financing methods of listed companies,actively raise funds, increase investment in municipal sewage treatment and other environmental protection industries, and strengthening the environmental protection sector.