Singapore and Hong Kong, 15 January 2024 – China Everbright Water Limited (“Everbright Water” or the “Company”; stock codes: U9E.SG and 1857.HK) (中國光大水務有限公司), an environmental protection company focusing on water environment management, is pleased to announce that the Company has recently secured several asset-light businesses in China and other countries. This marks a successful export of its technology and experience in industrial waste water treatment, and good progress in exploring and developing fields such as water-related business for industrial sectors.
The consortium led by Everbright Water recently secured the construction and operation project of the industrial waste water treatment plant in the Huai’an Lianshui New Materials Industrial Park (“Lianshui New Materials Industrial Park Plant”) in Jiangsu Province. Under the project, Everbright Water is responsible for providing operation and management services for a period of five years, with the option to renew for an additional three years upon expiry. With a total designed daily industrial waste water treatment capacity of 10,000 m3, Lianshui New Materials Industrial Park Plant will be constructed in two phases, each of which has a designed daily treatment capacity of 5,000 m3. The key indicators of discharged water will comply with the Grade A standard according to the Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (DB32/4440-2022), with a specific reference standard of 1.3 mg/litre for fluoride. The project marks Everbright Water’s third project in the Lianshui market, demonstrating the recognition of the Company’s service capabilities and strengths by the relevant local authorities and its corporate clients. The implementation of the project will not only promote resource sharing and innovation in technology and operation, but also improve the overall service efficiency and operational effectiveness of the Company’s existing projects in Lianshui, thereby laying a solid foundation for further business deployment in the local market.
Separately, Everbright Water has been actively exploring market opportunities in response to China’s “Belt and Road” initiative. Following the implementation of several asset-light businesses in various countries such as Mauritius and Indonesia through its joint venture company or subsidiaries based on different models, including operation and management and provision of technical services and technological processes, Everbright Water has further made breakthroughs in the African and Middle East markets with asset-light business. In particular, Everbright Water (through its 80%-owned subsidiary) signed an equipment supply service agreement for the Tanzania Oilfield Waste Water Treatment Project (in which Everbright Water will provide technological and equipment supply services) and a technological process service agreement for the Abu Dhabi Paper Mill Waste Water Recycling Project (in which Everbright Water will provide technological processes including technology and equipment). Both contracts amounted to a total contract value of USD2.2 million (approximately RMB15 million). The successful implementation of these two projects further enriches the Company’s service scope and enhances its capabilities in the field of industrial waste water, contributing to the continuous development of the Company’s overseas business expansion and service capabilities and the Company’s effort to support China’s green “Belt and Road” development.
In recent years, Everbright Water has been actively promoting the balance between its asset-light and asset-heavy businesses by dedicating more efforts towards expanding its asset-light businesses in various aspects such as business models, areas and synergies. As a result, the Company has made gradual progress in expanding its asset-light businesses and therefore achieved significant milestones since 2023. These milestones include the introduction of the EPCO (Design-Procurement-Construction-Operation) model and the expansion of its business scope to rural water environment treatment, development of zero-carbon parks and industrial parks, and industrial waste water treatment for semiconductors, new materials, paper and other industrial sectors. These achievements have enriched the Company’s experience and improved its service capabilities in asset-light businesses. In the first half of 2023 alone, Everbright Water successfully implemented asset-light businesses with a contract value exceeding RMB1 billion, nearly doubling the total contract value of asset-light businesses in the entire year of 2022. This trend indicates that the balance between the Company’s asset-light and asset-heavy businesses has been further optimised. Moving forward, Everbright Water will continue to expand its asset-light business while consolidating its position and strengths in traditional business areas. It will delve deeper into the development of asset-light business models through technology and services. By striking a balance and integrating both asset-light and asset-heavy approaches, the Company aims to effectively promote its comprehensive “water-related” business layout in response to industry adjustments and industrial upgrading, with the ultimate goal of “Creating Value to Industries through Various Water-related Businesses”.
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