Executives Deciphering Environmental Enterprises How To Break Through Green Power In The "Cold Winter", Landing A Shares To Help Develop New Markets

The green power Huiyang environmental Park, which is located in the 666 village of Tian tou village, Shatin Town, Huizhou, has become a landmark landmark in the city.

The total area of 1700 acres of construction projects in the park include garbage incineration power plant, garbage emergency landfill, food waste treatment plant, sludge treatment plant, excrement treatment plant and other solid waste treatment links. Every day, 1200 tons of garbage are used for incineration power generation.

Unlike the stereotype of garbage disposal plants and mosquitoes, the green hills are surrounded by air and fresh air. Even in garbage storage ponds, there is no smell. Every once in a while, students and residents come to visit and study the local green environmental protection theme park in Huizhou.

"We have done monitoring, the actual emissions of trace hazardous substances, the world's most stringent EU standards are low, and the project has been running for so many years, the surrounding residents have never reflected the smell and harm of the factory. Before, someone asked whether our factory did not run because there was no smoke on the chimney, and no noise was heard in the factory, but in fact, we were running normally for twenty-four hours." Recently, Qiao Dewei, general manager of green power, said in an interview with the economic news reporters in twenty-first Century.

This is just a part of green power environmental protection construction project. There are many such solid waste treatment circular economy industrial parks in 20 provinces and cities nationwide.

In June 11, 2018, the green power environmental protection group Limited by Share Ltd (hereinafter referred to as "green power") was officially listed on the Shanghai stock exchange, becoming the first A+H share enterprise in China's garbage power generation industry, and has also injected new technological forces into the Shanghai Stock Exchange.

Breakout industry "cold winter"

According to public information, green power is one of the earliest enterprises engaged in MSW incineration power generation in China, mainly engaged in the investment, construction, operation, maintenance and technical consultant business of MSW incineration power plants by means of BOT and other franchising businesses.

Green power was founded in 2000. In 2005, Beijing state owned company increased its capital and later gained control. Green power became a state-owned enterprise. In June 2014, the company listed on the main board of the Hongkong stock exchange. In June 2018, the green power landed on the A share market.

As of June 30, 2019, there were 20 green power projects in the field of municipal solid waste incineration and power generation, 7 projects under construction, 14 projects being built, and the garbage disposal capacity of operation projects reached 18610 tons / day, installed capacity of 363.5MW, the capacity of garbage disposal in construction projects was 7850 tons / day, and the processing capacity was in the forefront of the industry.

Recalling the company's development process, Qiao Dewei admitted that becoming a state-owned subsidiary of Beijing subsidiary is an important time node for the company.

"With the power of capital, we have done a lot of marketing, technological research and management improvement. The intervention of state-owned assets has made the company make great adjustments in terms of capital, market and talent. Besides, the government has released more projects and increased its strength. Joe De Wei said.

In 2018, along with the macroeconomic policy changes, many heavy assets and capital intensive industries were in a predicament. The listed companies of the environmental protection industry represented by oriental gardens and beautiful ecology were plunged into financial difficulties. But this year, green power ushered in a record high and successfully launched.

Qiao De Wei said that although the company's projects are BOT or PPP projects, they need to invest a lot of money, but green power bank credit has been very good. "In addition to the offshore Asian open bank, because the internal requirements are not the same, it needs to be guaranteed by the controlling shareholders. Other bank loans are the company's own credit. In 2018, financial leverage, our credit was completely intact.

In Qiao Dewei's view, some PPP companies were nearly bankrupt last year. This is not just because of their private enterprise background, because some state-owned enterprises are also facing a crisis. The core question lies in whether your business mode is easy to understand and whether the company can make money.

"Focus on the main business", "do not chase hot spots", "skilled skills" and "business models can be duplicated" are the main reasons why Qiao Dewei's green power can get bank trust.

In addition, reporters during the visit also learned that at the operational level, green power has always adhered to the principle of "prudence". "We will not consider the project below 500 tons, because we must lose money. Many colleagues began to do some very small projects in order to grab the market or compete for strange competition, but we have maintained our own strength in this respect." Joe De Wei said.

Landing A shares to start again

If state-owned assets are overweight, for green power is "more powerful", then landing A share market is a new journey of "green dream" of green power.

"Although we were listed on the Hong Kong stock market before, many people in China are still not familiar with us. Many government departments do not know that after landing A shares, they see the company's strength and project performance, because our large number of projects in China, the company's new orders increase, business is developing rapidly."

In the year of A share listing (2018), green power revenue grew by 34.43%, net profit increased by 32.11%. By 2019, business continued to grow steadily. In the first three quarters of 2019, the total amount of garbage generated by the subsidiary companies was 5 million 233 thousand and 500 tons, up 53.67% over the same period last year; the cumulative generating capacity was 1 billion 672 million 572 thousand and 600 degrees, an increase of 49.89% over the previous year.

Although A shares have not been listed for a long time, green power has completed two mergers and acquisitions, and continues to explore the market. At the end of last year, at the end of last year, the acquisition of Guangdong Bo Hai Xin could be environmentally friendly at 610 million yuan, increasing the incineration capacity of 2700 tons / day and 5500 tons / day, and the refuse transfer capacity of 800 tons / day.

In January this year, green power released a notice on the acquisition of 100% stake in Guizhou Jinsha Green Energy Co. Ltd., the purchase price was RMB 68 million 115 thousand and 400 yuan, and further opened up the integration project of garbage disposal and incineration power generation in Jinsha County, Guizhou province.

In October 30th, the green power capital operation started again, and its proposed increase in financing was not more than 2 billion 390 million yuan, and invested in two phase projects of Huizhou, sands project, Pingyang two phase project, Shishou project, Yongjia two phase project and repayment of bank loans.

"A share financing has gained a certain amount of construction capital for the company, and has accelerated the project construction of the company. The brand strength has been further strengthened. The two mergers and acquisitions after A has also greatly increased the scale of the company's garbage disposal. We expect that through the new project development, merger and reorganization, the market scale will increase rapidly and achieve greater development in the future." Joe De Wei said.