DeTeam Partners Leading State-Owned Enterprise, Dalian Shipbuilding for the Construction of Production Facilities for Coal Upgrading Plant

HONG KONG, BEIJING and SINGAPORE, Nov. 11, 2013 /PRNewswire/ --

• Dalian Shipbuilding is a subsidiary of China Shipbuilding Industry Corporation
• Production Facilities shall be capable of processing 3 million tons of low-rank coal and can produce 2 million tons of clean brown coal annually
• Tentative Total Project Costs Approximately RMB 458.85 million (equivalent to approximately HKD 587.33 million)
• Project expected to be completed by 25 October 2014

DeTeam Company Limited (HKSE: 0065, "DeTeam" or "the Company", together with its subsidiaries, the "Group"), today announced the strategic partnership with Dalian Shipbuilding, a subsidiary of China Shipbuilding Industry Corporation, to construct the production facilities for the coal upgrading plant in Xilinhaote, Inner Mongolia.

The project management contract is signed between Beijing Guochuan and Xilinhaote Guochuan, subsidiaries of the Company, and Dalian Shipbuilding with tentative cost of approximately RMB 458.85 million (equivalent to approximately HK$587.33 million). The total project costs shall not exceed RMB 560 million (equivalent to approximately HK$716.80 million). The production facilities will be located at Xilinhaote in Inner Mongolia and shall be capable of processing 3 million tons of low-rank coal and producing 2 million tons of clean brown coal annually. The construction of the facilities is expected to be completed by 25 October 2014.

Co-Chairman of DeTeam, Mr. XU Bin commented, "We are extremely honoured to partner with Dalian Shipbuilding to construct the production facilities in Xilinhaotein Inner Mongolia. Dalian Shipbuilding is one of the most established State-Owned Enterprises in China with more than RMB 80 billion assets. They have shown their support for our partnership by providing financial support for our construction project. We believe the co-operation with Dalian Shipbuilding will facilitate the establishment of the Production Facilities which will further promote the Company's coal upgrading business.

Executive Director, Mr Zhang Fusheng added, "DeTeam is positioning itself as the service solution provider to the coal energy giants. Amid the recent change in energy structure in China, coal will remain China's dominant energy source, making up more than 2/3 of energy consumption. Leveraging on our successful experience in Changchun and the support of Dalian Shipbuilding, we can speed up the development of the coal upgrading business in Inner Mongolia and boost the profitability of the Group in the foreseeable future."

The Group views the prospect of coal upgrading industry to be promising as recent government policies are favorable towards striking a balance between energy consumption and managing air pollution in China. The mainstream solution to air pollution is the development of alternative energies. However, considering the production cost and the maturity of technologies, alternative energies are unable to be launch in large scale in the foreseeable future. Clean Coal Technology (CCT) on the other hand, is a practical way to curb pollution issues in China and coal upgrading technology is one of the key aspects in CCT.

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