China Everbright Water Limited Announces 1QFY2015 Results

Singapore, 08 May 2015 – China Everbright Water Limited ("Everbright Water" or "the Group", SGX: U9E), an environmental protection company focuses on investment, operation and management of integrated environmental water business, announced the unaudited results for its first quarter ended 31 March 2015 ("1QFY2015").

During the quarter under review, the Group's revenue increased by 80% to HKD436.3 million as compared with 1QFY2014. This is mainly due to the construction revenue contribution from the undergoing upgrading and expansion work of Binzhou Boxing Waste Water Treatment Project and Suzhou Wuzhong Chengnan Waste Water Treatment Project Phase II and upgrading, as well as increase in operating income and finance income. Gross profit grew 63% to HKD217.6 million as compared with 1QFY2014, while gross profit margin fell from 55% for 1QFY2014 to 50% for 1QFY2015 resulting from higher construction revenue recognized for the quarter under review. Net profit attributable to shareholders of the Company increased 49% to HKD100.9 million as compared with 1QFY2014.

During the quarter under review, the Group's subsidiary, Everbright Water (Jiangyin) Limited obtained a subsidy of RMB5.66 million under the scheme of the 'Provincial Water Pollution Control in Lake Taihu Phase VIII' by the local government. This subsidy recognized the outstanding performance of the Group's projects in energy conservation and emission reduction, and also its sustainable growth.

On 19 January 2015, the Group has entered into subscription agreements with each of International Finance Corporation ("IFC") and Dalvey Asset Holding Ltd, which is a wholly-owned subsidiary of RRJ Capital Master Fund II, L.P. which was established by RRJ Capital ("RRJ"). The Subscriptions allow the Company to raise gross proceeds of about S$113,449,500 via the allotment and issuance of 120,690,957 new shares at S$0.94 per share, which will be used as working capital to fund the growth and expansion of the Company's business. It was completed on 21 April 2015.

Mr. Wang Tianyi, Executive Director, Vice-Chairman and CEO of Everbright Water, said, "The introduction of IFC and RRJ does not only optimize the shareholding structure of Everbright Water, but will also strengthen and advance the future development of Everbright Water. In return for the trust from the investment society, Everbright Water will continue to put in its best effort to undertake its corporate social responsibility and contribute to the economy.

On 16 April, the State Council announced the Water Pollution Prevention & Control Plan （《水污染防治行动计划》）, also known as the Clean Water Action Plan (水十条). The Ministry of Finance raised its budget on water pollution control from RMB6 billion for 2014 to RMB13 billion for 2015 to match the funding requirement by the Clean Water Action Plan, representing an 85.7% increase yoy.

On 16 April, the State Council announced the Water Pollution Prevention & Control Plan （《水污染防治行动计划》）, also known as the Clean Water Action Plan (水十条). The Ministry of Finance raised its budget on water pollution control from RMB6 billion for 2014 to RMB13 billion for 2015 to match the funding requirement by the Clean Water Action Plan, representing an 85.7% increase yoy.