Everbright International Wins Bid for Jiangxi Shangrao Waste-to-energy EPC Project, Forging an "Asset-light" Model for Exporting of Management and Technology Services

5 September 2018, Hong Kong - China Everbright International Limited ("Everbright International" or the "Group") (HKSE: 00257) is pleased to announce that a consortium formed by the Group and its partners has won the bid for the design and construction of Jiangxi Shangrao Waste-to-energy Project ("Shangrao Project"), with a leading score in the overall bidding process. Following the "Engineering, Procurement and Construction" (EPC) business model, the Group will be responsible for all the construction work of Shangrao Project, as well as the design, procurement and construction of the project’s access road. With a designed daily household waste processing capacity of 1,500 tonnes, Shangrao Project represents another demonstrative project of great significance for the Group.

In July 2017, Everbright International’s first "dual-entrusted" (entrusted construction and entrusted operation) project, Guangdong Dongguan Machong Waste-to-energy Project, completed construction and commenced operation. This demonstrates a breakthrough for the Group’s exploration of the EPC business model and the Group’s first step leap from entrusted construction to entrusted operation.

In November 2017, Jiangsu Wuxi Xidong Waste-to-energy Project commenced operation and has become the first household waste-to-energy project that was re-launched on the original project site under the entrusted operation model.

In the first half of this year, Everbright International had secured Shengyang Daxin Landfill Leachate Treatment Project and Liaoyang Landfill Leachate Treatment Project in Liaoning Province, to provide emergency treatment of stored leachate, which encourages the Group to further expand its asset-light business.

Mr. Wang Tianyi, CEO of Everbright International, said, "'Asset-heavy' models, represented by the BOT (Build-Operate-Transfer) model, have been the mainstream business models of the environmental protection industry for a long time. Such ‘asset-heavy’ models have been playing an important role in terms of safeguarding the stable development of the industry, ensuring stable operation of projects, assisting excellent enterprises to grow in scale and strength, facilitating strong players to drive out the weak, among others. However, as the environmental protection industry develops rapidly, where regulations have been tightened, some projects invested by enterprises or the local governments may not be capable enough in construction, equipment, technology and operation. As a result, this inspires huge opportunities for excellent environmental protection enterprises to develop ‘asset-light’ business, such as EPC and exporting of management and technology services.

Mr. Wang continued, "Everbright International, by fully leveraging its competitiveness in investment, design, construction, operation, technology, management and standard setting, will continue paying close attention to the development of the traditional ‘asset-heavy’ business models. In the meantime, the Group will also explore ‘asset-light’ models like EPC and the ‘dual-entrusted’ model, with an aim of supporting the Group to achieve steadier development and more satisfying investment return amidst the ever-changing market environment."