Securities code: Cec Environmental Protection Co.Ltd(300172) securities abbreviation: Cec Environmental Protection Co.Ltd(300172) Announcement No.: 2022004 Cec Environmental Protection Co.Ltd(300172)
Announcement on investing another 80 million yuan to build seven distributed water purification stations in Suzhou and Nanjing
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、 Overview of foreign investment
1. Cec Environmental Protection Co.Ltd(300172) (hereinafter referred to as “the company” and ” Cec Environmental Protection Co.Ltd(300172) “) held the 13th meeting of the 5th board of directors on March 6, 2022, deliberated and approved the proposal on reinvestment in the construction of seven distributed water purification stations in Suzhou and Nanjing, and agreed that the company, as the main body of investment and construction, would reinvest in the construction of water purification stations in Shengze Town, Suzhou and Jiangning District, Nanjing Reconstruction of distributed water purification stations, including new Suzhou Asia Pacific wood industry station, Hong’an station, Qizhuang station and Xinan station; Reconstruction of seven sewage treatment stations including seven sewage treatment stations including Nanjing Shengli pump station, mamuqiao pump station and Qianhe pump station, with a design treatment scale of 48500 tons / day and a total investment of about 80 million yuan. The source of funds for the project is self financing and financing, of which the insufficient part is supplemented by self financing.
2. This item does not constitute a connected transaction or a major asset reorganization stipulated in the administrative measures for major asset reorganization of listed companies.
3. According to the relevant provisions of the Shenzhen Stock Exchange GEM Listing Rules, the articles of association and relevant laws and regulations, this investment is within the authority of the board of directors of the company and does not need to be submitted to the general meeting of shareholders for deliberation.
2、 Basic information of investment projects
（1） Suzhou distributed water purification project
1. Project Name: Suzhou distributed water purification project
2. Main body of project investment and construction: Cec Environmental Protection Co.Ltd(300172)
3. Construction site: Shengze Town, Wujiang, Suzhou
4. Construction content of the project: it is mainly used to treat the wastewater from jet looms in Suzhou Shengze textile park. The technology of “high efficiency air flotation three-phase enhanced biological reaction membrane coupling” is adopted. The design treatment scale is 39500 tons / day, and four sewage treatment stations are newly built.
Design daily processing capacity of regional processing station (ton)
Suzhou Shengze Asia Pacific wood industry station
Zhenhong’an station 12000
(newly built) Qizhuang station 8500
Xinan railway station 4000
Total 39500
5. New investment scale: about 70 million yuan
6. Construction site and floor area of the project:
(1) Asia Pacific wood station: the construction site is Zhanhua textile park on the South Second Ring Road, with a land size of 3000 square meters.
(2) Hong’an station: the construction site is located in the southeast of the intersection of fuqianxian and May 18th Village Road, with a land size of 1980 square meters.
(3) Qizhuang station: the construction site is Qizhuang village next to miaozhentao highway, with a land size of 3380 square meters. (4) Xinan station: the construction site is in the original Xinan station of Songtao line, with a land size of 1020 square meters. 7. Project duration: the construction period is 90 calendar days.
8. Source of project funds: self financing and financing.
9. Service contracts: relevant service contracts have been signed for four distributed water purification projects in Suzhou, with a total contract amount of RMB 1204.6 million and a service period of three years. For details, see the announcement disclosed by the company on March 7, 2022 (Announcement No.: 2022005).
10. Economic benefits of the project: according to the preliminary calculation of the company, after all the four treatment stations are completed and put into operation, according to the minimum treatment water volume, the average annual sales revenue can be about 40 million yuan.
(II) Nanjing distributed water purification project
1. Project Name: Nanjing distributed water purification project
2. Main body of project investment and construction: Cec Environmental Protection Co.Ltd(300172)
3. Construction site: Jiangning District, Nanjing
4. Construction content of the project: it mainly deals with the domestic sewage and river water in the forebay of the pump station in Nanjing Jiangning Development Zone. It is reconstructed by using the “high efficiency coagulation sedimentation + MBR” technology process. The design treatment scale is 9000 tons / day, and three sewage treatment stations are reconstructed (the three stations were invested and constructed by Cec Environmental Protection Co.Ltd(300172) in August 2018, and the original service has expired).
Design daily processing capacity of regional processing station (ton)
Nanjing Jiangning Shengli pump station 3000
(reconstruction) mamuqiao pump station 3000
Qianhe pump station 3000
5. Investment scale of reconstruction: about 10 million yuan (total investment in 2018 is about 20 million yuan)
6. Construction site and floor area of the project:
(1) The construction site of the pump station is located in the west of Qinsheng Huaihe Road and in the west of Qinsheng Huaihe River. The land size of Shengli pump station project is 590 square meters.
(2) Mamuqiao pump station: the construction site is to the east of Shuanglong Avenue and to the south of NIUSHOUSHAN river. The land size of mamuqiao pump station project is 836.4 square meters.
(3) Qianhe pump station: the construction site is to the east of Shuanglong Avenue and to the north of NIUSHOUSHAN river. The land size of Qianhe pump station project is 600 square meters.
7. Project duration: the reconstruction duration is 30 calendar days.
8. Source of project funds: self financing and financing.
9. Service contracts: three distributed water purification projects in Nanjing (the three sewage treatment stations were won the bid and invested in the construction of Cec Environmental Protection Co.Ltd(300172) in August 2018, and the original service has expired). After participating in the bidding and winning the bid, the company has continued to sign the procurement service contract with the Management Committee of Nanjing Jiangning Economic and Technological Development Zone on February 24, 2022, The total contract amount is estimated to be 24.2 million yuan (subject to the settlement of the actual treated water volume). 10. Economic benefits of the project: according to the preliminary calculation of the company, after all the three treatment stations are completed and put into operation, the average annual sales revenue can be about 8 million yuan.
3、 Purpose of foreign investment, existing risks and impact on the company
(I) purpose of foreign investment
The total investment of the seven distributed water purification stations in Suzhou and Nanjing is about 80 million yuan, and the total amount of service contracts signed is about 144.66 million yuan. The investment meets the needs of the company’s strategic development and is conducive to promoting the company’s distributed water purification characteristic business in the provincial and national markets. The business adopts the idea of “source sewage interception, local purification, combination of collection and distribution and clear water recharge”, applies the self-developed high-efficiency air flotation three-phase enhanced biological reaction membrane coupling technology and sewage modular device (CBS), and is set nearby in the black and smelly river, the forebay of the pump station and the sewage collection area, With the advantages of “modular equipment, flexible layout, short construction period, high effluent quality, measurable and intelligent operation”, several high-quality demonstration projects have been successfully implemented, especially the Nanjing distributed intelligent water purification Island demonstration project (60000 tons / day), which provides guarantee for the water quality standard of national and provincial examination, and effectively realizes intelligent energy conservation and emission reduction and green resource circulation.
(II) existing risks
1. The investment income of this project is affected by the operation cost. During the operation period, there is a risk of insufficient investment income caused by factors such as consumables, equipment transformation and the increase of implementation labor cost.
2. The project adopts the government purchase service mode, and the project payment collection is affected by the payment efficiency of local government projects.
3. The project is affected by the policy, and there is a risk that the influent quality of the project will change and affect the effect of sewage treatment.
Please pay attention to investment risks.
(III) impact on the company
1. This investment and construction will further expand the market application prospect of distributed water purification characteristic business in the field of urban water environment, enhance the company’s brand awareness, promote the development of this business, and provide support for improving the company’s ecological environment governance ability.
2. The construction and operation of the project will increase the company’s income, which is expected to have a positive impact on the company’s future business performance (subject to the actual water treatment volume), and will not have an impact on the independence of the company’s business.
4、 Documents for future reference
1. Resolution of the 13th meeting of the 5th board of directors of the company.
It is hereby announced.
Cec Environmental Protection Co.Ltd(300172) board of directors March 6, 2022
