Kunming Dianchi Water Treatment Company Limited (“Dianchi Water Treatment” or the “Company”), successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited (“SEHK”) today. Stock code: 3768.

Morgan Stanley Asia Limited is the Sole Sponsor of this proposed listing. Morgan Stanley Asia Limited, China International Capital Corporation Hong Kong Securities Limited, Haitong International Securities Company Limited and Zhongtai International Securities Limited are Joint Global Coordinators, while Morgan Stanley Asia Limited (in relation to the Hong Kong Public Offering only), Morgan Stanley & Co. International plc (in relation to the International Offering only), China International Capital Corporation Hong Kong Securities Limited, Haitong International Securities Company Limited, Zhongtai International Securities Limited, Huatai Financial Holdings (Hong Kong) Limited, GF Securities (Hong Kong) Brokerage Limited, CCB International Capital Limited, BOCI Asia Limited, CMB International Capital Limited, Guotai Junan Securities (Hong Kong) Limited, China Everbright Securities (HK) Limited are Joint Bookrunners and Joint Lead Managers of this proposed listing. ZMF Asset Management Limited and Sinomax Securities Limited are the Joint Lead Managers of this proposed listing.

Dianchi Water Treatment is a leading municipal wastewater treatment and reclaimed water supply services provider in Yunnan Province, a provider of integrated water-related services including running water supply service and a core enterprises implementing the PRC’s strategic goal to treat pollutants at Dianchi Lake. The Company enjoys exclusive rights to provide wastewater treatment services in Kunming and some other parts of the PRC and remarkable competitive advantages in the wastewater treatment industry. As of March 16, 2017, the Company had a total of 34 plants under concession agreements, of which 29 were in operation, 2 were under construction and 3 were under development (two of them are located in Laos). Moreover, the Company had a total of 26 wastewater treatment plants in operation, with a total wastewater treatment capacity of 1.6 million m³ per day. Revenue from wastewater treatment service accounted for 83.7% of the total revenue for the year of 2016.

As of December 31, 2015, Dianchi Water Treatment ranked first in Yunnan Province, in terms of municipal wastewater treatment capacity, accounting for 34.0% of the designed municipal wastewater treatment capacities and 45.1% of the actual volume of wastewater treated in the province. Also, according to Frost & Sullivan, the Company ranked the first in Kunming City, in terms of municipal wastewater treatment capacity, accounting for 94.4% of the designed municipal wastewater treatment capacities in Kunming. Being an industry leader in effluent quality and energy efficiency in Yunnan Province, the Company has participated in setting the provincial industry standards for wastewater treatment services. As of December 31, 2016, 93.7% of the Company’s designed wastewater treatment capacity reached the National Class I Standard A, which is the highest national standard for wastewater treatment.

With the outstanding industry reputation and brand recognition, the Company is in a strong strategic position to capitalize on the Company’s strength in Yunnan’s municipal wastewater treatment industry, so as to obtain flexible financing, sustain profitability and fuel the growth into other regions in the PRC and Southeast Asia. Since 2011, through investment methods such as asset acquisitions, equity purchases and Public-Private-Partnership (“PPP”), the Company has added 26 wastewater plants to its portfolio with total investments amounting to approximately RMB1.4 billion. Through the acquisition activities, the business of the Company expanded into new areas such as the Guizhou, Anhui, Zhejiang and Jiangsu Provinces, as well as Laos.

Dianchi Water Treatment progressively expands overseas business in recent years. Apart from developing a wastewater treatment plant and a running water plant located in Laos, the Company signed a non-binding memorandum of understanding with the Lahore Development Authority in Pakistan, where the Company conducts feasibility study of BOT wastewater treatment projects. These projects mark the first step of the Company expanding into the Southeast Asian market, as well as the Company’s commitment to the national strategy of “One Belt, One Road”.

Ms. Guo Yumei, Chairperson of Kunming Dianchi Water Treatment Company Limited, stated, “Dianchi Water Treatment has become the fourth Yunnan company listed on the Main Board of SEHK, which is the new achievement of deepening financial cooperation between Yunnan Province and Hong Kong and will lead more quality enterprises of Yunnan to Hong Kong capital market. Dianchi Water Treatment will optimize the financing capacity, accelerate the integration of market resources, build the industry alliance for investment and business cooperation, expand the business layout worldwide through Hong Kong, the world’s most famous trade free port and international financial center, and its "common financial language" interconnected between Hong Kong and the world in the legal system, cultural exchange, information dissemination and other favorable conditions. Also, we will standardize the operation and enhance the value of the company to strive for stable and rapid development to deliver returns to our shareholders, customers and Society.”