CDT Environmental Technology Investment Holdings Limited Announces Strategic Cooperation Agreement with Subsidiary of Chinese State-Owned Construction Group
CDT Environmental Technology Investment Holdings (NASDAQ: CDTG) has announced a strategic cooperation agreement with a subsidiary of a large state-owned construction group in China. This collaboration, focusing on infrastructure and construction projects in Fuzhou New Area, is valued at over RMB 3 billion, with an estimated RMB 1 billion net to CDT. The projects include water, sewage treatment, roads, and pipelines, and are expected to increase CDT’s revenue by more than 50% over the next 3-5 years. Fuzhou New Area is a major development zone, and this partnership aims to leverage both parties' expertise and resources to improve project competitiveness and operational efficiency.
- Strategic cooperation with a large state-owned construction group.
- Projects valued at over RMB 3 billion, with RMB 1 billion net to CDT.
- Projected revenue increase of more than 50% over the next 3-5 years.
- Leverage of expertise and resources to improve competitiveness and efficiency.
- Expansion of CDT’s market share in East China.
- Heavy reliance on the successful execution of projects in Fuzhou New Area.
- Potential financial and operational risks associated with large-scale infrastructure projects.
- Uncertainty in achieving the projected revenue increase.
Insights
CDT Environmental Technology Investment Holdings Limited (CDTG) signing a strategic cooperation agreement with a subsidiary of a prominent state-owned construction group in China presents significant growth potential. The collaboration is projected to boost CDT's revenue by
For investors, this forecasted revenue increase offers potential for sizeable returns. However, it is important to consider potential risks, such as project execution delays and regional economic conditions. The strategic cooperation aims to leverage shared resources and expertise, promising operational efficiency improvements, which could significantly impact CDT's bottom line.
From a market perspective, this agreement aligns CDT with a state-backed construction giant, enhancing its market influence. The focus on Fuzhou New Area, a developing urban center, underscores the project’s strategic importance. The area’s large scale and population provide a robust foundation for infrastructure development, likely resulting in steady project demand.
Investors should note the potential long-term benefits of this partnership, such as market share expansion in East China, reinforcing CDT's competitive positioning. However, understanding the broader economic implications in China's urbanization trends and policy support will provide further context to these anticipated growth figures.
Initial joint project in Fuzhou expected to generate an increase in revenue by more than
SHENZHEN, China, June 18, 2024 (GLOBE NEWSWIRE) -- CDT Environmental Technology Investment Holdings Limited (NASDAQ: CDTG) ("CDT"), a leading provider of waste treatment systems and services throughout China, announces the signing of a strategic cooperation agreement with a subsidiary of a large state-owned construction group in China. The parent company of the state-owned construction group is among the top 40 in ENR's 2023 ranking of the world's largest contractors.
Under the terms of the agreement, the two parties will jointly plan and build a number of infrastructure and construction projects in Fuzhou New Area, involving water, sewage treatment, roads, and pipelines, with an estimated value of more than RMB 3 billion -- with an estimated 1 billion RMB net to CDT -- which will contribute to an expected increase in CDT’s revenue by more than
While leveraging each party’s particular expertise, they will also share resources and improve project competitiveness and operational efficiency. As a local company, CDT has local network resources and market influence, while the large state-owned builder is positioned with the resources and financial strength to bid for the largest and most desirable projects throughout the region. The cooperation between the two sides is expected to produce synergies.
"This is an important step for us in the domestic market and will also significantly help the infrastructure construction and economic development of Fuzhou New Area," said Yunwu Li, CDT CEO. “This strategic cooperation will undoubtedly further enhance the market position of CDT. Investors and the market can expect the company to demonstrate synergistic value in more areas and create superior results. In addition to this cooperation, CDT and its partners will also cooperate on projects in other regions of China. As a company rooted in China, we remain committed to promoting the modernization of domestic infrastructure and continued economic prosperity through cooperation with top enterprises,” Mr. Li concluded.
As a key development and construction area of Fuzhou City, the new district will become an important strategic market for CDT. Further opportunities exist for the collaboration to work on jointly in East China, which will continue to expand CDT’s market share in East China and significantly enhance the company's competitive positioning throughout 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
This press release contains forward-looking statements that are based on the beliefs and assumptions of the management of CDT and on information currently available to such management. These forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond CDT’s control. Words such as “will,” “future,” “expects,” “believes,” and “intends,” or similar expressions, are intended to identify forward-looking statements. All statements, other than statements of historical fact, contained in this press release, including statements regarding future events, future financial performance, business strategy and plans, and objectives of CDT for future operations, are forward-looking statements. Although CDT does not make forward-looking statements unless it believes it has a reasonable basis for doing so, CDT cannot guarantee their accuracy. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, which may cause the actual results, levels of activity, performance or achievements of CDT and its markets to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on any forward-looking statement. CDT undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law.
Investor and Media Contact
United States
Core IR
Peter Seltzberg, SVP Investor Relations and Corporate Advisory
investors@cdthb.cn
212-655-0924
www.CoreIR.com
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