Everbright Environment Secures Zoucheng Waste Sorting Project and Zoucheng Waste Transfer Project in Jining City, Shandong Province

19 March 2021, Hong Kong – China Everbright Environment Group Limited ("Everbright Environment" or the "Company") (SEHK: 257) is pleased to announce that the Company has recently secured Zoucheng Urban Rural Household Waste Sorting Project ("Zoucheng Waste Sorting Project") and Zoucheng Rural Household Waste Municipal-level Transfer Service Project ("Zoucheng Waste Transfer Project") in Jining City of Shandong Province, commanding a total investment of approximately RMB32.6 million.

Zoucheng Waste Sorting Project and Zoucheng Waste Transfer Project will be operated and managed by Everbright Environmental Protection (China) Company Limited, a wholly-owned subsidiary of Everbright Environment. According to the project service contract, Zoucheng Waste Sorting Project has a service period of 3 years, with the service covering 57 communities and public institutions in the urban area, in addition to 13 towns and 300 villages in the rural area. According to the project concession agreement, Zoucheng Waste Transfer Project, with a concession period of 12 years, will be responsible for the upgrading and operation of the 30 existing waste transfer stations, the construction and operation of 9 new waste transfer stations in the rural area, and also waste transferring between the waste transfer stations and Zoucheng Waste-to-energy Project of Everbright Environment. The relevant service fees of the two projects during the service period and the concession period have been included in the annual fiscal budget for Zoucheng City, with an estimated total amount of nearly RMB270 million.

Phase I and Phase II of Zoucheng Waste-to-energy Project of Everbright Environment completed construction and commenced operation in 2017 and 2019, respectively, with a total designed daily waste processing capacity of 900 tonnes. In 2020, the Company secured Zoucheng Sludge Dehydration and Incineration Project, with a designed daily sludge processing capacity of 100 tonnes. The project is currently in the preparatory stage and is well underway.

Mr. Wang Tianyi, Chairman of the Board and CEO of Everbright Environment, said: "Securing Zoucheng Waste Sorting Project and Zoucheng Waste Transfer Project will help Everbright Environment improve its 'Five Points in One Line' technical process for waste sorting in Zoucheng City, setting a good example of applying such a model for other projects in the future. The Company's recent success in securing several waste sorting and transfer projects accelerates the implementation of its new business. This also demonstrates the Company's determination to venture out of the comfort zone, as well as its effort to strike a balance between asset-light and asset-heavy businesses. Going forward, Everbright Environment will continue to be committed to its business development, as well as to gradually enhance its presence across the entire value chain relating to the waste treatment business through practical actions and quality services. In doing so, the Company aims to boost the overall efficiency and profitability of its waste treatment business. It will steadily drive strategic transformation and high-quality development so as to be better positioned to participate in and support the development of zero-waste cities in China."