HONG KONG, Dec. 7, 2015 /PRNewswire/ -- Huazhang Technology Holding Limited ("Huazhang" or the "Group", stock code: 1673) announced that, Zhejiang Huazhang, an indirect wholly-owned subsidiary of the Company, conditionally agreed to acquire 70% of Wuhan Wukong Control System Engineering Co., Limited, a construction of wastewater treatment facilities company in the PRC, with a consideration of RMB7.42 million (equivalent to approximately HK$8.99 million), which will be satisfied in cash. The Remaining Shareholders have also granted an option to Zhejiang Huazhang to require the respective Remaining Shareholders to sell the remaining 30% Shares in aggregate after the end of the financial year ending 30 June 2018.
Wuhan Wukong Control System Engineering principally engaged in the business of design and construction of wastewater treatment facilities in the PRC as well as other construction and fixture installation projects and the ancillary services, with a registered capital of RMB12 million, and it holds the licenses and permits in construction of wastewater treatment facilities in the PRC. Currently, it has entered into 11 contracts in relation to construction projects or supplies of equipment for environmental protection or wastewater treatment facilities.
Mr. Zhu Gen Rong, Chairman of Huazhang, said, "As Wuhan Wukong Control System Engineering holds the licenses and permits in construction of wastewater treatment projects in the PRC, we considered that, by acquiring it, the Group will be able to diversify the Group's sludge treatment products into the upstream of water-treatment business with growth potential and to broaden its sources of income that can bring return to the Company and the Shareholders. It also allows the Group to capture opportunities under The Action Plan to Tackle Water Pollution."
About Huazhang Technology Holding Limited
The Group is principally engaged in research and development, manufacture and sale of industry automation systems, sludge treatment products and corresponding services. The Group's industrial automation systems and sludge treatment products are custom-built in accordance with the specifications and requirements provided by the Group's customers. The Group is also engaged in the provision of after-sales and other services Group's existing customers.
