On August 6, 2016, Chongqing Kangda Environmental Protection (Group) Co., Ltd. formally signed a strategic cooperation agreement with Chengdu Financial Holding and Financial Development Equity Investment Fund Co., Ltd. The two parties agreed to establish “Chengdu Funds for Environmental Protection Industry” with the first phase investment between RMB 500 million and RMB 1 billion.

      According to the spirit ofReply on the Establishment of Western Tourism Development Fund and Western Financial Development Fund(CFJH [2010] No. 107) issued by Sichuan Provincial Office of Financial Work, Chengdu Financial Holding and Financial Development Equity Investment Fund Co., Ltd. was established with registered capital of RMB 750 million on December 8, 2011, becoming a platform of Chengdu Financial Holding Group Co., Ltd. for industrial fund raising and management. Since its establishment, Chengdu Financial Holding and Financial Development Equity Investment Fund Co., Ltd. has actively played the guiding role of state-owned capital through the market-oriented financing channel and the way of management and operation to attract all sorts of social capital to invest on industrial development and major projects of Sichuan Province and Chengdu City. It has raised the capital of over RMB 5 billion for a large number of provincial and municipal key projects, such as Tianfu New Area, North Area Reconstruction Project and Cultural Tourism Industry Planning, successfully completed the financial work for large-scale municipal projects, including several Provincial and Municipal First-Class Land Development Projects, Urban Reconstruction Project and Infrastructure Construction Project, and gained mature experience of involving in the local government projects by utilizing industrial fund mode.

      The achievement of the strategic cooperation agreement will further push the two parties to make use of their respective advantages, develop cooperation in the field of environmental protection industry resources or asset securitization of Chengdu, actively seek listed companies and launch the high-quality environmental protection projects through acquisition and reorganization to increase the rate of securitization of Chengdu’s environmental protection industry.