Shimao Services Holdings Limited (873) has issued additional information regarding the partnership formed for investing in and operating a sewage treatment project in Xingcheng City, Huludao, Liaoning Province. According to the announcement, the limited partner, Shanghai Shimao Tianjing, committed to 99% of the partnership’s capital, while Huludao Yongsheng, which contributes 1%, serves as the general partner responsible for overall management and project implementation.
Huludao Yongsheng is ultimately majority owned by Mr. Chen Zhiqiang, a senior engineer with over two decades of experience in water environment remediation and municipal engineering. Huludao Yongsheng and its affiliates employ around 100 professionals specializing in environmental protection and sewage treatment projects, having completed several major municipal projects, including works in Lushan City, Datong City, Tianquan County, and Xinyang City.
The announcement outlines that, although the capital contributions will be in a 99:1 ratio, the profit-sharing arrangement is set at 50:50. This decision was made after considering Huludao Yongsheng’s role in negotiating with government authorities, supervising project planning, and bearing unlimited liability for the partnership’s debts. Shanghai Shimao Tianjing has already contributed RMB280,170,000 in cash; Huludao Yongsheng will make its payment by 31 March 2026.
The sewage treatment project in Xingcheng City has not yet been secured, and the partnership is currently in the preliminary stage of planning, research, and data collection. Should the project remain unconfirmed after one year, Shanghai Shimao Tianjing may terminate the arrangement and receive a refund of its capital plus interest. If the project is ultimately granted, the partnership will construct and renovate sewage treatment facilities in phases, with local authorities overseeing daily maintenance of the city’s drainage pipeline network.
Shanghai Shimao Tianjing’s internal control mechanisms include regular reporting from Huludao Yongsheng, specialized reviews, veto rights on major decisions, on-site audits, and joint monitoring of all partnership fund management. These measures aim to maintain transparency and ensure that contributed capital remains safeguarded until the project in Xingcheng City is officially secured.