Initial joint project in Fuzhou expected to generate an increase in revenue by more than 50% over next three years
SHENZHEN, China, June 18, 2024 — CDT Environmental Technology Investment Holdings Limited (NASDAQ: CDTG) (“CDT”), a leading provider of waste treatment systems and services throughout China, has signed a strategic cooperation agreement with a subsidiary of a major state-owned construction group in China. The parent company of the state-owned construction group is ranked among the top 40 in ENR’s 2023 list of the world’s largest contractors.
The agreement outlines a joint effort to plan and build various infrastructure and construction projects in Fuzhou New Area, encompassing water, sewage treatment, roads, and pipelines. These projects are estimated to have a total value exceeding RMB 3 billion, with an expected net profit of RMB 1 billion for CDT. This collaboration is projected to contribute to a more than 50% increase in CDT’s revenue over the next 3-5 years. Fuzhou New Area is the 14th State-level new district in China, established in September 2015, and aims to demonstrate a new model of urbanization and foster integrated development between urban and rural areas. Located in the coastal area of Fuzhou, the capital city of Fujian Province, Fuzhou New Area spans 800 square kilometers and currently has a permanent population of 1.55 million.
The two parties will leverage their respective expertise while sharing resources to enhance project competitiveness and operational efficiency. As a local company, CDT benefits from local network resources and market influence, while the large state-owned builder brings its resources and financial strength to secure the largest and most desirable projects in the region. This collaboration is anticipated to generate synergies.
“This represents a significant step for us in the domestic market and will also significantly contribute to the infrastructure construction and economic development of Fuzhou New Area,” said Yunwu Li, CDT CEO. “This strategic cooperation will undoubtedly strengthen CDT’s market position. Investors and the market can anticipate the company to demonstrate synergistic value in more areas and achieve superior results. Beyond this specific cooperation, CDT and its partners will also collaborate on projects in other regions of China. As a company rooted in China, we remain dedicated to promoting the modernization of domestic infrastructure and continued economic prosperity through partnerships with leading enterprises,” Mr. Li concluded.
As a key development and construction area within Fuzhou City, the new district will become a strategically important market for CDT. Further opportunities exist for the collaboration to expand into East China, which will contribute to increasing CDT’s market share in East China and significantly enhance the company’s competitive positioning across its markets in China.
About CDT Environmental Technology Investment Holdings Limited
CDT, headquartered in Shenzhen, China, is a leading national player in China’s waste treatment sector that designs, develops, manufactures, sells, installs, operates and maintains sewage treatment systems and provides sewage treatment services in China, and is dedicated to promoting sustainable development through innovative solutions. Founded by pioneers in waste treatment, CDT aims to advance next-generation technologies that directly address environmental challenges and promote sustainable solutions. CDT is a recognized brand in China and is committed to innovation and customer satisfaction.
CDT’s mission is to help its customers achieve their critical infrastructure objectives while enabling positive change in technological environmental protection. It collaborates with industry leaders, environmental experts, and stakeholders to develop and implement advanced waste treatment solutions. Recently listed on the Nasdaq Capital Market, CDT is a prominent player in the waste treatment market, capable of providing comprehensive solutions to diverse customer needs, and has completed more than 150 plants across China.
For more information, visit CDT’s website at https://www.cdthb.cn.
Forward Looking Statements
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