BUILD KING HOLD (00240) plans to sell approximately 125 million yuan worth of its 75.576% equity interest in Wuxi Qianhui Sewage Treatment to Wuxi Huicheng Water Group.

BUILD KING HOLD (00240) and WAI KEE HOLD (00610) jointly announced that China State Construction Engineering Corporation (a subsidiary of LEGEND and WAI KEE) (as the seller) intends to sell 75.576% equity interest in Wuxi Qianhui Wastewater Treatment Co., Ltd. to Wuxi Huicheng Water Group Co., Ltd. for approximately RMB 125 million. Upon completion, China State Construction Engineering Corporation will continue to hold a 20% equity interest in the target company. The target company was established in 2005 as a special purpose company invested by China State Construction Engineering Corporation, engaging in the construction and operation of a wastewater treatment plant in Qianqiao Town, Huishan District, Wuxi City, Jiangsu Province, China and obtaining a 30-year franchise from the local government. Its registered capital is USD 10 million. The announcement stated that given the uncertain situation of the possible trial operation of a new wastewater treatment plant in the neighboring area, the sale transaction will enable LEGEND group and WAI KEE HOLD to realize most of their capital investment in the target company and bring in reasonable returns. In addition to improving the liquidity of LEGEND group through the cash inflow from the sale price and agreed profit distribution, the terms of the sale transaction allow LEGEND group and WAI KEE HOLD to retain a significant minority interest in the target company, as part of LEGEND group's environmental infrastructure investment portfolio in China. The proceeds from the sale transaction will be used as operating funds for LEGEND group.