Promote Professional Pollution Treatment - CT Environmental. Group Limited Achieved High Efficiency by Creating a One-stop

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1 Promote Professional Pollution Treatment - CT Environmental Group Limited Achieved High Efficiency by Creating a One-stop Market Pollution Treatment Service Model Environmental protection is one of China's basic policies. With continuously stricter pollution control and stronger supervision, currently, industrial wastewater has been deeply treated and some of that should be reclaimed. However, Chinese mechanism of pollution treatment does not meet the high standards and strict regulatory requirements. Starting from someone who pollutes should be responsible for treatment (refer to Chart 1) to someone pays the government for centralized pollution treatment (refer to Chart 2), however, did not receive best results because of the technology and accounting, either the loose pollution control but the environment polluted, or the strict pollution control but the companies relocated. Faced with this dilemma, CT Environmental Group Limited (CTEG) commits to innovate with the support of

2 relevant government authorities and to collaborate with technical institutes working together based on its own local management advantages, creating a one-stop and self-service business model for environmental pollution treatment corporates and wastewater discharge companies (refer to Chart 3). Chart 1, someone who pollutes should be responsible for treatment - both the government and enterprises receive bad results.

3 Chart 2, someone pays the government for pollution - the government receives bad results.

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5 Chart 3, the CT model of the pollution discharger and pollution treatment services provider both receive good results Under this model, the pollution treatment services provider and pollution discharge enterprises shall sign contracts to ensure the service contents and prices on their own based on the market rules and the provider should strictly monitor the discharge from enterprises and provide some point-to-point pollution treatment services according to the contract items and charge for it. Meanwhile, the pollution discharge enterprises shall pay for the treatment based on the contracts and strictly monitor the pollution treatment results as well. This model was carried out in the denim industry in Zengcheng Guangdong, and has obviously achieved great effect since this ten years. Denim industry is the traditional and famous business of Zengcheng. However, during the home of denim approaches to the world, the high pollution always arises. In order to get rid of the pollution, the Zengcheng people are exploring a new method to pollution treatment that is in accordance with the national situation without stop from decentralized treatment, centralized treatment to treatment in the industrial parks. CTEG, the listed company in Hong Kong, is the first organizer of this treatment model. CTEG not only developed the one-stop pollution treatment service model, but also

6 brought the new recycle economic energy to the traditional textile industry. To our great joy, CTEG has achieved the following results on three aspects while carrying out the business model in the textile industry in Xintang. Firstly, massive centralized industrial wastewater treatment and reclaim services. CTEG operates the wastewater treatment and water supply facilities of three industrial parks in Xintang with a capacity of about 400,000 m³per day through the one-stop and enterprise-to-enterprise service model. Our technical capabilities also allow us to reclaim post-treated wastewater for industrial use and the volume of all reclaimed water reaches 50%. Secondly, CTEG is the early mover to apply major national scientific projects for wastewater treatment to realize detoxication and harm reduction. That the post-treatment wastewater is discharged to the rivers of Xintang as the ecological water supply realizes the recycle of industrial water use and ecological water use. Thirdly, CTEG currently processes sludge produced as a by-product of the wastewater treatment into biomass fuel, materials for special use, and bio-organic fertilizer, realizing the recycle use of industrial solid waste as a new kind of energy and resource. CTEG s own one-stop business model of wastewater

7 treatment is approaching to the whole country with a new moving direction on the way to the recycle economic industry. Furthermore, the social recycle industry of regional municipal wastewater, industrial wastewater, garbage waste and solid waste is under plan and construction. (Note: The English version of this article is for reference only. To avoid any misinterpretation, please refer to the original Chinese version posted on the Chinese CTEG website.)