CDT Environmental Technology Investment Holdings CDTG

CDT Environmental Technology Investment Holdings Limited is a holding company that through its subsidiaries develops produces sells and installs sewage treatment systems and provides sewage treatment services in the People's Republic of China. The company was incorporated on November 28 2016 under the laws of the Cayman Islands. It holds all of the outstanding equity of Chao Qiang Holdings Limited and CDT Environmental Technology Group Limited both incorporated in the British Virgin Islands. Through these intermediaries CDT Environmental Technology Investment Holdings Limited ultimately owns one hundred percent of Shenzhen CDT Environmental Technology Co Ltd the operating subsidiary in the People's Republic of China. Its core activities involve the design manufacture installation and ongoing operation of decentralized rural sewage treatment plants. The company also offers on site septic tank treatment services using mobile and fixed systems. These operations serve municipalities state owned construction companies and residential and business property management companies across China.

Revenue is generated primarily from the sale of sewage treatment equipment and the construction installation and commissioning of rural sewage treatment plants. The company also earns fees from operation and maintenance contracts for those plants and from providing on site septic tank treatment services. Customers pay for the systems upfront or through service agreements that include long term support. This model creates recurring income streams while expanding the installed base of treatment facilities. Revenue from sewage treatment systems includes the sale of equipment construction fees and installation charges. Revenue from sewage treatment services comprises operation and maintenance fees for rural plants and charges for on site septic tank treatment.

The company operates through the following segments. These segments reflect the company's two principal lines of business.

• Sewage treatment systems: designs manufactures sells and installs rural sewage treatment equipment using proprietary quick separation technology and provides construction commissioning and long term operation and maintenance services for decentralized treatment plants.
• Sewage treatment services: provides on site septic tank treatment using mobile and fixed systems that extract waste dehydrate solids and filter residue and offers maintenance contracts that are typically renewed annually or biennially for urban and rural customers.

CDT Environmental Technology Investment Holdings Limited holds a leading position in the PRC rural sewage treatment market due to its patented quick separation technology. The company has completed more than 60 treatment plants in Fujian Jiangxi and Liaoning provinces delivering a combined daily capacity of over 3 400 tons of treated sewage. Its technology combines aerobic and anaerobic processes in a single tank resulting in high quality effluent low operating costs and a system lifespan exceeding ten years without core component replacement. Competitors mainly consist of regional firms that rely on A2 O or A O processes which are less stable and often fail to meet national discharge standards. The firm differentiates itself through technological expertise long term customer relationships and a strong intellectual property portfolio including two invention patents and 34 utility model patents. The addressable market for rural sewage treatment in China is projected to exceed twenty billion US dollars by twenty thirty driven by government mandates for improved sanitation. The company's proprietary technology reduces energy consumption and odor while meeting national discharge standards for effluent quality. Barriers to entry include stringent performance standards product qualification requirements and the need for established relationships with state owned construction firms.

The company's customer base consists mainly of local governments state owned construction companies and residential and business property management firms. These entities contract for the design construction installation and ongoing service of rural sewage treatment plants and for on site septic tank treatment in urban and rural areas. These customers typically renew service contracts annually or biennially. The company has established sales and marketing networks in nine provinces including Fujian Jiangxi Liaoning Zhejiang and Beijing. It operates twelve majority owned subsidiaries and two branch offices to support local project execution and customer service.