Corporate Profile

One of the key challenges facing mankind today is the supply of clean water. Though 80% of the earth's surface is water, less than 1% is suitable for consumption or industrial use.

At Asia Water Technology Ltd, we specialise in driving large scale municipal and industrial projects, offering innovative and effective engineering solutions for water purification and wastewater treatment systems. While we strive for technological excellence, we remain dedicated to the protection of our environment and the conservation of the world's precious water resources.

Growing with the flow
Asia Water Technology was successfully listed on the Singapore Exchange in March 2005 and has been on a growth path since, securing breakthrough projects in the tap water and wastewater treatment business and nuclear power plant water purification arena in the People's Republic of China.

We conduct our business primarily in Wuhan in the PRC through our subsidiary, Wuhan Kaidi Water Services Co., Ltd. ("Kaidi Water") which was incorporated in 1996. Kaidi Water provides water purification treatment and wastewater treatment systems through our close working relationships with international partners to ensure the needs of municipals and industries for purified water are met.

To fuel further developments, we carried out three rounds of share placements in 2006. Our EPS was maintained and returns were not compromised. Instead these have significantly propelled our growth and expansion plans.

Waves of Progress
In June 2004, together with three other partners, Asia Water Technology incorporated an associate company which obtained a license to build and operate a municipal wastewater treatment plant west of Han Kou within the Hubei Province (the 'Hanxi Project'). Currently, the wastewater treatment plant serves an estimated population of 600,000, and treats up to 400,000 tonnes of water daily.

In May 20 0 5, we were awarded another RMB 193 million contract for the procurement, installation and commissioning of the wastewater treatment system of this mega municipal wastewater treatment plant.

In the same year, we incorporated another subsidiary in Huaiyuan, Anhui Province, operating a tap water plant, with a daily capacity of 10,000 tonnes per day, under its wing. We also secured a tap water treatment contract worth RMB 111.7 million in Tianmen City, Hubei Province.

2006 proved to be a watershed year for us. We secured a second nuclear power plant contract, while Kaidi Water, invested in a build-operate-transfer project in Linghai City, Zhejiang Province. When operational, this plant will treat the industrial wastewater generated by the nearby Zhejiang Pharmaceutical Park.

In October 2006, we secured a build-ownoperate water project worth RMB 256 million in Lv Liang City, Shanxi Province. To be completed by the end of 2007, this plant is expected to supply up to 20 million tonnes of water annually to the region.

We began 2007 with the successful acquisition of Tianmen Kaidi, a tap water tre atment specialist in central Hubei Province. This gives us the monopoly of being the sole provider of tap water to the people of Tianmen City.

Making a Splash with Technology
Our in-house resarch into biochemical wastewater treatment process was given a boost when the PRC and Wuhan City Science and Technology bureaus awarded us a total of RMB 8 million in research grant, covering its total cost. It was a vote of confidence in our technological capabilities as Kaidi Wate r is one of the only two water treatment companies in China to have been awarded such a grant.

In 2006, the PRC's Ministry of Science and Technology accepted a bio-treatment wastewater research project conducted by Kaidi Water. This new technology will be applied to selected municipal water treatment projects once its patent is approved.

Refreashing Outlook
China's huge appetite for electricity and the increasing need to treat wastewater to curb its water shortages are favourable opportunities for Asia Water's expansion. We are focused on expanding our capabilities for large-scale municipal and industrial projects. While we hold market share in the power plant water treatment segment, we will continue to explore this area as well as source for seawater desalination prospects.

With the flood of opportunities before us, Asia Water is well positioned to ride high on the wave of growth.