Water Investee Company Update

13 Sep 2007 08:55

London Asia Chinese Private Equity13 September 2007 13 September 2007 London Asia Chinese Private Equity Fund Limited("LACPEF" or "the Fund") Profits Keep Flowing LACPEF, the AIM traded, China focused investment fund, is pleased to announcethat its two Singapore listed water investment, Asia Water Technology Ltd. ("Asia Water") and United Envirotech ("UE"), continue to perform strongly. Asia Water, which raised £30m of new capital during August, has invested in anew water project worth £50 million in the Huang-Pi District, Hubei Province,China. The project is being carried out jointly with Wuhan City municipalgovernment to bring potable water to over 1.1m residents of the Huang-PiDistrict of Wuhan, under a 30 year contract. The project will address watershortages in the region via the construction of three new water treatmentplants, the enhancement of seven existing plants and the construction of a 982kmof piping system. The project is expected to supply 253,000 tonnes of water tothe region daily. UE announced revenue for the quarter ended 30 June 07 of £3.2 million, up 32% onthe corresponding period, with net profit for the quarter up 45% to £0.7 millionand net assets of £19.3 million, including cash of over £6 million. The increasein profit resulted mainly from recently secured engineering contracts and fromits recently acquired subsidiary in Malaysia. Simon Littlewood, Fund Director, said: "The water sector is expanding rapidly inChina as the need to improve the quality of the existing supplies and shortagesin many parts of the country are being addressed. Asia Water and UE are bothideally placed to benefit from this growth, with established track records andreputations in the sector. We are working with both companies to ensure thatthey have adequate capital in place to enable them to take advantage of theopportunity." For further information please contact: John West/Andrew Dunn Cecilia Wong Hugh FieldTavistock Communications London Asia Ltd Collins Stewart Europe LtdTel: 020 7920 3150 Tel: +852 2251 8373 Tel: 020 7523 8000 cecilia.wong@londonasia.com This information is provided by RNS The company news service from the London Stock Exchange