Securities code: 300172 securities abbreviation: Cec Environmental Protection Co.Ltd(300172) Announcement No.: 2022-002 Cec Environmental Protection Co.Ltd(300172)
Announcement on signing the PCO project contract of sewage treatment plant (with a total amount of about 180 million)
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
1、 Contract signing overview
Cec Environmental Protection Co.Ltd(300172) (hereinafter referred to as “the company” and ” Cec Environmental Protection Co.Ltd(300172) “) participated in the public bidding of the procurement, construction and operation integration (PCO) project of Liyang Shangxing Beishan sewage treatment plant (hereinafter referred to as “the project”) issued by Jiangsu ZTE industrial investment and Development Group Co., Ltd. (hereinafter referred to as “Jiangsu ZTE”).
On February 9, 2022, the company signed a contract with Jiangsu ZTE for the procurement, construction and operation integration (PCO) project of Liyang Shangxing Beishan sewage treatment plant, with a total contract amount of RMB 178.390891 million (including tax). The relevant contents are hereby announced as follows:
2、 Counterparty
1. Company name: Jiangsu Zhongxing Industrial Investment and Development Group Co., Ltd
2. Date of establishment: June 7, 2016
3. Registered address: No.1-1, Tonggang Avenue, Shangxing Town, Liyang City
4. Legal representative: Zhu Xudong
5. Registered capital: 1 billion yuan
6. Main business: park construction investment and management, engineering project investment, industrial investment, venture capital, housing construction engineering, municipal engineering, landscaping engineering, environmental protection engineering construction, real estate development and operation, engineering project management, property management, business planning, house demolition and leasing, research and development of new Shenzhen Agricultural Products Group Co.Ltd(000061) , flowers and trees, planting, acquisition of crops, flowers and trees Sales, aquaculture of aquatic products, tea planting, acquisition and sales of raw and fresh edible Shenzhen Agricultural Products Group Co.Ltd(000061) , ecological agricultural development, development of tourist attractions, land reclamation and consolidation, construction of agricultural infrastructure, operation of metal materials and building decoration materials. (for projects subject to approval according to law, business activities can be carried out only after approval by relevant departments).
7. Jiangsu ZTE has no relationship with the company.
8. In the last three fiscal years, the company had no business dealings with Jiangsu ZTE and recognized its revenue. 9. Within 12 consecutive months before the disclosure date of this announcement, the company has not signed a contract with Jiangsu ZTE and its subsidiaries.
10. Performance capability analysis: Jiangsu ZTE is a wholly-owned subsidiary of Liyang state owned assets management center, which is responsible for park construction investment and management, engineering project, industry, entrepreneurship and other investment. The company has large assets, good credit standing and strong performance ability.
3、 Main contents of the contract
1. Contract signatory
Party A: Jiangsu Zhongxing Industrial Investment and Development Group Co., Ltd
Party B: Cec Environmental Protection Co.Ltd(300172)
2. Contract content: procurement, construction and operation integration (PCO) project of Liyang Shangxing Beishan sewage treatment plant. The main construction contents include: sewage treatment, sludge treatment and odor treatment, with a total scale of 30000 tons / day and equipment installation of 15000 tons / day; The off-site collection system of the treatment plant includes a new Beishan sewage pump station, laying DN600 ~ DN1000 sewage pipeline, with a length of about 3.2km.
PCO mode is adopted, including project equipment procurement and installation, engineering construction, commissioning (joint commissioning), relevant technical training services, overall handover, warranty within defect warranty period and operation and maintenance of project facilities.
3. Contract amount: RMB 178.390891 million (including tax), of which the construction and installation cost is RMB 16.6930891 million and the one-year operation and maintenance cost is RMB 11.46 million.
4. Contract period: the total construction period is 231 calendar days and the operation period is 1 year.
5. Settlement and price payment: Party A shall pay the corresponding amount according to the payment conditions and progress agreed in the contract. 6. Liability for breach of contract: the rights and obligations of all parties, liability for breach of contract and compensation, dispute resolution, etc. have been clearly stipulated in the contract terms.
7. Effective conditions: it will take effect immediately after being signed and sealed by both parties.
4、 The impact of contracts on Listed Companies
1. In the field of urban water environment treatment, the company can provide sewage treatment, reclaimed water reuse and comprehensive treatment of water environment in cities and industrial parks. It has invested in, constructed or contracted and operated nearly 30 sewage treatment projects in China, mainly including Yinchuan in Ningxia, Jiangning South District in Nanjing, Dengfeng in Henan, Dajindian in Henan, Ningdong New District in Ningxia, Jiangsu Lianyungang Port Co.Ltd(601008) Lingang chemical park Sewage treatment plant of an internationally famous amusement city in Shanghai; Nanjing yangjiawei black odor water treatment; Nanjing distributed intelligent water purification Island (60000 tons / day), Nanjing Jiangning (mamuqiao, Qianhe River, Fanshen River, Shengli River) distributed water purification, Suzhou distributed water purification and other projects. The project will further expand the company’s urban water environment treatment business, enhance the scale of municipal water environment treatment business, strengthen brand awareness and market competitiveness, and provide support for improving the company’s ecological environment treatment ability.
2. The contract amount of this project accounts for about 19% of the total audited operating revenue in 2020. It is expected to have a positive impact on the company’s future operating performance and will not have an impact on the independence of the company’s business.
5、 Risk tips
1. During the performance period of this contract, there is a risk that the gross profit margin will decrease due to the increase of equipment, raw material prices, implementation labor costs and other factors.
2. The contract has made clear provisions on the breach of contract and disputes between both parties, but there may be the risk of failure to perform on schedule or in full due to force majeure during the performance of the agreement.
Please pay attention to investment risks.
6、 Contract review procedure
The above contract belongs to the company’s daily operation contract. According to the Shenzhen Stock Exchange GEM Listing Rules, the articles of association and other relevant provisions, it is not necessary to submit it to the board of directors or the general meeting of shareholders for deliberation, nor is it necessary for independent directors to express their opinions.
7、 Other relevant instructions
The company will disclose the performance in the regular report according to the follow-up progress of the contract in accordance with the Shenzhen Stock Exchange GEM Listing Rules, Shenzhen Stock Exchange GEM listed companies’ standardized operation guidelines and other relevant provisions.
8、 Documents for future reference
The company signed a contract with Jiangsu ZTE for the procurement, construction and operation integration (PCO) project of Liyang Shangxing Beishan sewage treatment plant.
It is hereby announced.
Cec Environmental Protection Co.Ltd(300172) board of directors February 9, 2022
