Beijing Yanlong Water Supply Co., Ltd.

Beijing Yanlong Water Affairs Group Co., Ltd. is a comprehensive enterprise wholly owned by the state and under the jurisdiction of Changping District, Beijing. The company was established in 1998 and was officially renamed Beijing Yanlong Water Affairs Group Co., Ltd. on December 3, 2013, with a registered capital of 186 million yuan. Beijing Yanlong Water Affairs Group Co., Ltd. is a water affairs integrated investment and financing platform company that integrates water engineering investment and construction, project investment and operation management of water supply plants and reclaimed water plant facilities and affiliated pipelines, general contracting of engineering project construction, electrical automation engineering installation, engineering survey and design, water quality technical testing, pump maintenance, drilling services, and reclaimed water supply services. The Group has six subsidiaries: Beijing Changshuixing Drilling Co., Ltd., Beijing Yichang Water and Electricity Installation Co., Ltd., Beijing Xiaguang Pump Maintenance Co., Ltd., Beijing Yanping Water Conservancy Engineering Survey and Design Co., Ltd., Beijing Yanlong Drainage Co., Ltd., and China Energy Conservation Yanlong (Beijing) Water Affairs Co., Ltd. The Group has six branch companies: Eastern Water Source Plant, Eastern Water Supply Management Office, Central Water Supply Management Office, Western Water Source Plant, Western Water Supply Management Office, and Northern Water Source Plant. The Group's business is divided into the following aspects: 1. Water supply services; 2. Water affairs project management; 3. Sewage and reclaimed water project management and services; 4. Engineering design; 5. Engineering construction, pump maintenance, water and electricity installation, etc. (1) The Group's main business (in terms of water supply services): The Group is the main operator of township water supply services in Changping District, Beijing, controlling a water supply area of approximately 280 square kilometers, with a water supply pipeline length of more than 570 kilometers (excluding pipelines within residential communities). It has a total of 283 employees and serves a population of more than 400,000. The Group has six branch companies managing 16 water supply plants, responsible for the operation, water quality testing, and safety management of the water plants. They are: Shangyuan Water Plant, Xingshou Water Plant, Dongxiaokou Water Plant, Beiqijia Water Plant, Xiaotangshan Water Plant, Future Science and Technology City Water Plant, Gaokou Water Plant, Machikou Water Plant, Yangfang Water Plant, Liucun Water Plant, Shahe Water Plant, Heishanzhai Water Plant, Duijiuyu Water Plant, Ming Tombs Water Plant, Xiangtan Water Plant, and Nanshao Water Plant. It is also responsible for the patrol and maintenance of water supply facilities in the corresponding areas, meter reading, fee collection, and user management for enterprises, institutions, and residential communities. (2) Project management: While doing a good job in water supply services, the Group, as the management platform for water conservancy engineering projects of the Changping District Water Affairs Bureau, is responsible for the management of a series of water affairs engineering projects, including the third and fourth phases of small and medium-sized river governance projects in Changping District, the external supporting pipeline project of the second phase of the Changping Reclaimed Water Plant, the water replenishment and expansion project of the Ming Tombs Reservoir, and the black and odorous water body remediation project in Changping District. (3) Sewage and reclaimed water project management and services: The sewage and reclaimed water business is mainly undertaken by the Group's subsidiaries Beijing Yanlong Drainage Co., Ltd. and China Energy Conservation Yanlong (Beijing) Water Affairs Co., Ltd., which are responsible for the operation and management of sewage and reclaimed water treatment facilities (either received or entrusted for operation), and the operation and fee collection business of reclaimed water in the Future Science and Technology City Reclaimed Water Plant and other areas. (4) Engineering design: The Group's subsidiary Beijing Yanping Water Conservancy Engineering Survey and Design Co., Ltd. is responsible for the survey and design of engineering projects within the Group and those contracted externally. (5) Engineering construction, pump maintenance, and water and electricity installation: The Group's subsidiaries Beijing Changshuixing Drilling Co., Ltd., Beijing Yichang Water and Electricity Installation Co., Ltd., and Beijing Xiaguang Pump Maintenance Co., Ltd. are responsible for general contracting of engineering project construction, pump maintenance, drilling services, water and electricity installation, and electrical automation engineering installation within the Group and for externally contracted projects.