Sound Global : Announcements and Notices - Sound Global Acquired a Water Supply Project in Shan County

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桑德國際有限公司

(Incorporated in the Republic of Singapore with limited liability)

Sound Global Ltd. ("Sound Global" or the "Company") is pleased to announce that, in December 2014, Sound Global, the People's Government of Shan County, Shandong and Yixing Huadu Green Environmental Co. Ltd. entered into the Supplemental Agreement to the Agreement in respect of the Franchise for Surface Water Supply Plant in Shan County, Shandong. Pursuant to the Agreement, the parties agreed that Sound Global shall acquire 100% equity interests in Huadu Water Co., Ltd. in Shan County and obtained the water supply project in Huadu County, Shandong. It has a licensed operating term of 30 years. The Agreement can be extended for further 5 years upon expiry. The aggregate investment for the project is approximately RMB120 million, which includes investment in conversion and extension. The water supply project in Shan County, Shandong is the only water supply project in Shan County. The daily water supply capacity of the project is designed to be 50,000 tonnes for a short term and 100,000 tonnes for a long term. As the project currently serves a total population of approximately 300,000 and the county has a planned urban population of 700,000 in the long term, the project is anticipated to have huge potential for capacity expansion in the future.
Shan County is well known as the origin of martial art, couplets, tomatoes and grey goats. With a population of over 140 million, Shan County is one of the most populated counties in Heze region of Shandong. The acquisition will lay a sound foundation for full expansion of the Company's regional water supply business in Shandong, Jiangsu and Anhui. Meanwhile, Sound Global has been granted the right of priority for the investment, construction and operation in respect of integration of regional water supply and drainage in Shan County and the right of priority for the new franchise in respect of the water supply project in Shan County.
None of the Directors or substantial shareholders of the Company has any interest, direct or indirect (other than through their shareholdings in the Company), in the above-mentioned transaction.
This transaction is not expected to have any material impact on the net earnings per share and the net tangible assets per share of the Company for the financial year ending 31 December 2014.

By Order of the Board Wen Yibo Chairman

Hong Kong, 18 December 2014

As of the date of this announcement, the executive Directors are Wen Yibo, Zhang Jingzhi, Wang Kai, Luo Liyang and Jiang Anping; and the independent non-executive Directors are Fu Tao, Seow Han Chiang Winston and Wong See Meng.

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