PDF《泸州市兴泸水务 （集团） 股份有限公司》

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1 C Hong Kong Exchanges and Clearings Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Luzhou Xinglu Water (Group) Co., Ltd.* 泸州市兴泸水务(集 团) 股份有限公司(a joint stock company incorporated in the People's Republic of China with limited liability) (Stock code: 2281) BUSINESS UPDATE ENTERING INTO THE PPP PROJECT AGREEMENT IN RESPECT OF LESHAN CITY SHIZHONG DISTRICT WASTEWATER TREATMENT FACILITIES AND WASTEWATER COLLECTION PIPELINE NETWORKS CONSTRUCTION PROJECT The Board is pleased to announce that on

26 November

2018 (after trading hours), Leshan City Shizhong District Housing and Construction Bureau* (乐山市市中区住 房和建设局) and the Company entered into the PPP Project Agreement in respect of the PPP Project in Shizhong District, Leshan City, Sichuan Province, the PRC. This announcement is made by the Company to keep the shareholders and potential investors of the Company informed of the latest business development of the Group. INTRODUCTION The Board is pleased to announce that on

26 November

2018 (after trading hours), Leshan City Shizhong District Housing and Construction Bureau* (乐山市市中区住房和建设局) and the Company entered into the PPP Project Agreement in respect of the PPP Project in Shizhong District, Leshan City, Sichuan Province, the PRC. The PPP Project will be carried out through the public-private-partnership (commonly known as "PPP") model, which is an emerging cooperation model, supported by national policies, for the public and private sectors to work together under the leadership of the relevant PRC local government. While the PPP model typically involves the use of private sector capital in public sector works, there is no fixed cooperation model, as the extent and nature of the private sector's involvements are driven by the requirements of the local government concerned. C

2 C THE PPP PROJECT AGREEMENT Date:

26 November

2018 (after trading hours) Parties: (1) Leshan City Shizhong District Housing and Construction Bureau* (乐山市市中区 住房和建设局);

and (2) Luzhou Xinglu Water (Group) Co., Ltd.* (泸州市兴泸水务 (集团) 股份有限公司). Principal Terms Pursuant to the PPP Project Agreement, during the concession period, the Company will be responsible for, among other things, the investment and financing, construction and operation and maintenance in respect of the wastewater treatment facilities and wastewater pipeline networks of the PPP Project, and will be entitled to receive the wastewater treatment service fees and pipeline networks operation and maintenance fees from Leshan City Shizhong District Housing and Construction Bureau* (乐山市市中区 住房和建设局) semiannually at a reasonable profit margin of 6.97% according to the PPP Project Agreement. The concession period shall be

13 years for the Project under Construction (as defined below) commencing from the Business Operation Date and 10C13 years, varying for different wastewater treatment plants, for the Completed Project (as defined below) commencing from the Transfer Date. After the expiration of the concession period, the Company shall transfer the PPP Project to Leshan City Shizhong District Housing and Construction Bureau* (乐山市市中区住房和建设局) or its designated entity at nil consideration. Pursuant to the PPP Project Agreement, the Company and Leshan City Investment and Construction, as the government's funding representative, shall establish the Project Company in Shizhong District, Leshan City within