Jun 16, 2005

Dragon Venture Subsidiary, Yazheng, Signs 3 Contracts

Dragon Venture, a holding company of high-tech companies in China, reports today that Shanghai Yazheng Information Technology Company, Limited ("Yazheng"), a subsidiary of DRGV, recently signed three contracts to provide water control automation systems for Qidong Water Company, Nanhui Huinan Water Company, and Songjiang Jiuting Waste Water Treatment Company. Three contracts have a total value of over RMB 3 million (approximately US$360,000).
Yazheng will employ proprietary applications in conjunction with hardware developed by Schnide and Siemens, to furnish water control automation systems for these companies. The whole process includes a raw water pre-process system and regular water treatment. Yazheng expects to provide increased control measures and in turn yield higher water quality.
In China, water resources shortage, together with severe water pollution, is becoming the bottleneck of continuing development and economic growth. In many cities, water supply and drainage including sewage treatment are an indispensable part of each cities infrastructure and environmental construction in order to attract investments. In the meanwhile, the infrastructure of water supply and water treatment is an important sign of the completion of city facilities, vigor and prosperity. In the past few years, the local governments have adopted aggressive financing policies to encourage infrastructure construction including water supply and drainage, which resulted in faster development and more significant growth of municipal supplied water and wastewater treatment.
From 1998 to 2002, China has invested a total of approximately US$10 billion in city water supply, of which approximately $7.25 billion went to wastewater treatment and has added 286 wastewater treatment facilities. From 2001 to 2002, the fixed assets invested totaled $6 billion for wastewater treatment, increased at an annual rate of 5.72% for wastewater treatment, compared with the year 2000. Obviously, China has attached great importance to wastewater treatment.
Lawrence Wang, CEO of Dragon Venture and General Manager of Yazheng, commented, "We are very pleased to sign three contracts that demonstrate the excellence of our software system that was developed by our own software engineers. The importance of water preservation to mankind will become a precious commodity which determines the degree of wealth of a nation. Likewise, how a nation treats its water resources will decide its rise and decline. Industry authorities believe that nations that give water treatment first priority will gain a competitive advantage. City water supply and treatment is a tough and challenging task that has become an increasingly important component of a municipality's development. Given the support of the government authorities, we believe this industry offers tremendous development potential. We believe our Company will benefit from the significant investment by public funding for years to come."