News Release
15 March 2022
Everbright Environment Announces 2021 Yearly Results
Click here to download the presentation materials of 2021 Annual Results
Financial Highlights
| For the year ended 31/12/2008 | |||
| 2021 | 2020 | Change | |
| HK$’000 | HK$’000 | ||
| Revenue | 49,895,384 | 42,926,426 | 16% |
| Gross Profit | 16,463,382 | 14,103,833 | 17% |
| Earnings before interest and taxation, depreciation, and amortization (“EBITDA”) | 15,027,003 | 12,851,501 | 17% |
| Profit attributable Equity Holders of the Company | 6,804,099 | 6,015,863 | 13% |
| Basic earnings per share in Hong Kong cents | 110.76 | 97.93 | 13% |
| Final dividend (HKcs) | 15.0 | 16.0 | (6%) |
| Total dividend (HK cents) | 34.0 | 30.0 | 13% |
15 March 2022 Hong Kong-China Everbright Environment Group Limited (“Everbright Environment”) (SEHK 257) is pleased announce the consolidated results of the Company (or the “Company”) for the year ended 31/12/2021 (“2021”) or the “year under Review”.
The Group faced new situations, challenges, and opportunities during the year under review. It maintained “Value Creation” as its core and focused “Reducing pollution and carbon emissions” and “Solidifying existing strength and Pursuing innovation”. The Group developed its “Three Carbons” development strategies. It also set the development targets for “Becoming Carbon-Negative Enterprise”, Developing Zero-Carbon Plants and Pursuing a Low-Carbon Lifestyle”. It continued to grow in scale and profit by following the trends, persevering through the difficulties and fighting against many challenges.
The Group’s traditional business segments continued to grow and progress steadily during the year under review. Meanwhile, the emerging business sector gained momentum through active exploration. It had access to a variety of financing options, including short- and long-term financing. The Group also had ample capital and excellent results across all financial indicators. The Group’s total revenue was approximately HK$49.895 trillion, an increase by 16% over the year ended 31/12/2020 (“2020”); EBITDA was approximately HK$15.027 miliarde, an increase in 17% from 2020. Profit attributable to equity owners of the Company was approximately HK$6.804 million, an increase 13% from 2020. Basic earnings per share was HK110.76 Cents, an increase 13% from 2020. The Group’s total revenue was also approximately HK$48.364billion from its environmental energy, greentech, water sectors. The revenue from construction services increased 5% from 2020, to approximately HK$26.84billion, and the revenue from operations services increased 35% from 2020, to approximately HK$16.605billion. 56%, 34%, 10% and 10% respectively, of the total revenue come from construction services, operation service, and finance income.
The Group made steady progress in market expansion during the year under review despite fierce market competition. The Group has been expanding its traditional businesses, such as water treatment and waste-to-energy, but it also made great efforts to develop synergistic businesses like food and kitchen waste treatment, sludge disposal and waste sorting and transfer. It also promoted the growth of new businesses, such as resource recycling and energy-saving lighting, and environmental planning and design. The Group is aiming to build a portfolio of businesses that include co-development and asset-heavy businesses as well co-development and consumer businesses. It also plans to expand domestic and foreign businesses. The Group made breakthroughs in the solid-waste treatment market in Xinjiang Uygur Autonomous Region (“Xinjiang”) as well in the water services markets in Tianjin, Hebei Province, and Mauritius, and in the solar energy market within the Hong Kong Special Administrative Region (“Hong Kong”), further increasing its domestic and overseas market presence. The Group signed 69 new projects in 2021 (including acquisitions) and 2 supplementary deals on existing projects. This total investment was approximately RMB13.248 trillion. It covers various business areas, including waste-to-energy and food and kitchen waste treatment, as well as solar energy and water treatment. It also provided 2 waste sorting services, 6 environmental remediation service, 8 engineering, procurement, and construction (“EPC”) projects and 2 energy management contract (“EMC”) contracts. 1 operation and management (“O&M”) and 1 equipment supply service were also undertaken, with an estimated contract value of RMB331 millions. The new projects have major treatment and supply capacities. They can handle 13,100 tonnes/day household waste, 1,780 tons/day food waste, 100,000 tonnes/year hazardous and solid waste, 598,000 tons/year steam supply, and 543,000m.3Water treatment costs per day.
The Group was present in more than 210 locations in China’s 25 provinces, municipalities and autonomous regions. There were also overseas markets in Germany, Poland and Vietnam. The Group has secured 528 environmental protection project investments totaling RMB152.455 trillion. It also carried out 42 environmental remediation projects, 2 waste sorting service, 22 EPC projects and 5 EMC projects. The Group is the world’s leading waste-to–energy investor and operator. It managed 176 waste-to–energy projects in its environmental energy and greentech sector, with a combined daily household waste processing capacity totalling 150,300 tons.
Concerning project construction, the Group remained true to its seven principles of “productivity.efficiency.quality.cost-effectiveness.safety and integrity”. The Group also adhered to the COVID-19 pandemic (“Pandemic”) prevention measures in various locations. In 2021, 91 projects were completed and commenced operation. 8 projects also completed construction. 51 projects started construction simultaneously with 6 environmental remediation service, 1 waste sorting service and 4 EMC projects. 9 EPC projects were completed and delivered.
The Group maintained high standards of operations management during the past year, with a focus in “Cost Reduction and Efficiency Enhancement” and on “Value Creation”. The Group promoted digitalisation and intelligent management to ensure stability and compliance with relevant emission standard. It also increased the platform roles of its projects to improve its operations management proficiency, reduce costs, and increase efficiency.
The Group followed the national strategic goals of “Peaking Carbon emissions” and “Achieving Carbon Neutrality”, (“Dual Carbons”) and remained focused on the “Three Carbons’ development targets and action plan. It increased investments in and accelerated relevant work relating to “Carbon Emission Reduction”, including research and studies, technology research pilot programmes, and relevant exploration. This resulted in satisfying progress. The Group organized a series of talks, seminars, and symposiums on the “Dual Carbons theme to increase knowledge, depth of understanding, and breadth of view in the field. It also drafted reports, action plan, and the White Paper on Environmental Protection and Carbon Neutrality related to the “Dual Carbons”. The Group developed and improved its carbon emissions calculation model to match the domestic situation and to develop future plans to reduce carbon emissions. It also established the Carbon-Neutrality Technology Research and Development Center to help build an innovation platform for “Dual Carbons”. It also conducted research into core technologies related to “Dual Carbons”, such as carbon capture technology and other equipment. The Group conducted a pilot program on the monitoring of greenhouse gases emissions at sites. It was initiated in part by the Ministry of Ecology and Environment of China. This project helped to establish a solid foundation for the national calculation of carbon emissions for relevant industries. Additionally, China Everbright Water Limited (“Everbright Water”), a listed subsidiary of China, launched an “inplant solar energy” pilot program at Zibo’s waste water treatment facility in Shandong Province. In the meantime, the Group’s equipment manufacturing sector constructed solar energy facilities on the plants. These were also connected to power grid in July 2021. This project will allow for expansion of similar pilot programs.
The Group also did innovation work during the year under review. It also explored new business areas and expanded existing businesses. It actively participated, in terms of business models and ownership, in the mixed-ownership reform of China’s state-owned enterprises. It continued technology research and development (“R&D”) in the areas solid waste treatment, biomass utilization, waste sorting and intelligent control. This was a positive step. The Company and its subsidiaries have expanded their financing channels to include medium-term notes, super and short-term commercial paper, asset-backed notes with receivables relating the national subsidies, and “Carbon Neutrality”-linked bonds. This diversifies the Group’s financing sources.
Environmental Energy
The Group’s environmental energy sector was challenged in the market during the year under review. There will be fierce competition in 2021. It focused on three main business areas and used the Group’s “Five Points in One Line” process model for waste sorting. This includes sorting and transferring, selecting and recycling waste. Environmental energy has actively grown waste-to–energy synergy businesses while retaining its leadership position in the industry. Environmental energy secured 23 waste–to-energy synergistic contracts in 2021. The sector signed the Shihezi Integrated Waste Treatment Public-Private Partnership (“PPP”) project in Xinjiang. This will increase the Group’s presence in Xinjiang as well as strengthen the Group’s position in northwest China. Environmental energy secured 36 new projects, including acquisitions, during the year under review. Additionally, it completed 1 EPC project with a contract value RMB28 million. The new projects have a combined daily household waste processing capacity to 11,800 tonnes and a daily food and kitchen waste processing capability of 1,780 tons.
Environmental energy had 64 projects that were completed and started operation during the year under review. These projects are expected to have a daily household trash processing capacity (38,400 tonnes) and a daily food/kitchen waste processing capacity (2,945 tonnes). 35 projects, including 1 EPC project, were started construction with a daily household waste processing capability of 13,000 tonnes and daily food and kitchen waste processing capacities of 2,290 tonnes. It is important to mention that during the year under consideration, the Group’s ZhejiangQuzhou Waste-to-energy Project won the Luban Prize. This is the highest recognition in China’s construction industry. The award is the third for the Group’s environmental protection projects, after Shandong Ji’nan Waste-to-energy Project (Zhejiang Hangzhou Waste-to-energy Project) and Zhejiang Ji’nan Waste-to-energy Project (Zhejiang Hangzhou Waste-to-energy Project). This latest recognition reflects the excellence of the Group’s environmental energy engineering planning, construction, and management.
Environmental energy held 230 projects as of 31/12/2021. They invested a total of RMB89.865billion in the projects.
Greentech
The Group held a 69.7% interest in China Everbright Greentech Limited (“Everbright Greentech”), as of 31/12/2021.
Market development was achieved by Everbright Greentech acquiring a 60% equity stake at Kellon Green Energy Limited. This represents the Group’s entry into Hong Kong’s solar energy sector. Everbright Greentech signed 2 supplementary agreements and 17 new projects for its existing projects in 2021. The total investment was RMB1.201 billion. It also performed 6 environmental remediation services with a contract value of RMB150 million. The new projects have a combined annual household waste processing and steam supply capacity of 474 500 tonnes and a total annual capacity of 7 MW for solar power.
Everbright Greentech completed 16 projects during the year in review. 5 additional projects were also completed. These projects contributed a total household waste processing capacity and hazardous and solid waste processing capacities of 1,007.400 tonnes and 753,800 tons respectively. Six environmental remediation services were completed in 2021. 11 projects were also initiated construction with a combined annual hazardous and liquid waste processing capacity of 852,500 tons. 6 environmental remediation agencies began respective remediation work.
Everbright Greentech has invested in 137 environmental projects as of 31/12/2021. This total investment was RMB32.891 billion. These projects have a biomass raw material processing capacity in the range of 8,089 800 tonnes, a household waste processing capacity in the range of 4,069 7,750 tonnes, and a hazardous and solid waste processing capability of 2,941,900 tons. They are expected to produce 6,960,034,055kWh of annual on grid electricity and 5,118,000 tonnes annual steam supply.
Environmental Water
The Group held a 72.87% interest in Everbright Water at 31 December 2021.
In terms of market development, during the year under review, Everbright Water strode into two new domestic markets, Tianjin and Hebei, and consolidated its business layout in the Beijing-Tianjin-Hebei strategic region. Everbright Water also took on its first overseas O&M project, in Mauritius. This lays the foundation for future success in overseas markets. Everbright Water completed 15 new projects in the past year, totaling RMB3.756 billion. It also took on 1 O&M and 1 EPC project. These new projects will have a daily wastewater treatment capacity of 489,000m3A daily reusable water supply of 54,000m3.
Everbright Water continued to follow a systematic approach to project construction. 6 projects, including 1 EPC project, were completed during the year under review. The total daily water treatment capacity was 130,000 m.3. 11 projects were completed and have commenced operation. 5 projects (including EPC Projects) are now complete construction. The total design daily water treatment capacity is 321,500m3.
Everbright Water owned and had invested in 153 water projects by the 31st of December 2021. This total investment was RMB28.43434 billion. It also secured 4 EPC and 3 O&M projects. These projects will have a combined annual wastewater treatment capacity of 2,175,619,000m391,469,000 m annual reusable water supply capacity3, with an annual water supply capacity to 310,250,000m3. The waste water heat pump projects provide heating & cooling services in an area of 295,000m2.2.
Equipment Manufacturing
The Group’s equipment manufacturing segment used Everbright environmental Technical Equipment Limited (Changzhou), Limited as the main platform to establish a new development structure that blends traditional and new business. The sector has also strengthened its position as a leader in the industry.
Equipment manufacturing expanded its market share in the year under review. It actively explored the fields of food and hazardous waste treatment, industrial waste treatment, and medical waste treatment. It also expanded into markets like Thailand, India, Bulgaria, and Bulgaria. The sector signed 26 contracts for external sales and sold 44 sets to external markets in 2021. This included grate furnaces and flue gas purification system, as well as leachate treatment systems. It also secured contracts in 2021 for the external sale and purchase of complete sets of equipment. This contract value was RMB926 billion. In addition to this, equipment manufacturing established the Everbright Electric Appliance Division. It launched a series purifier products during the current year. The division has made positive progress in sales of water purifier products, starting with the water purifier line.
Equipment manufacturing was responsible for 53 service items in China’s 19 provinces, cities, and autonomous regions. It supplied 38 sets to clients and projects of the Group, as well as 38 sets of furnaces. The furnaces have a daily processing capacity of 19,500 tons. It also sold 109 sets.
Equipment manufacturing actively developed services to cover the full life cycle of projects during the year under consideration in terms of after-sales. Equipment manufacturing signed 160 contracts for external after-sales service, with a total contract value in excess of RMB124 million. The sector completed 217 aftersales service projects between 2021 and 2023.
Equipment manufacturing was a strong advocate of technological innovation, putting emphasis on market demand and changes. They also made great efforts to promote product optimisation and innovative R&D. A number of technical projects were undertaken and researches conducted. The Group’s own 1,000-tonne/day grate furnace, was also successfully used in the Jiangsu Wujiang Waste to Energy Project.
Eco-recycling
In 2021, the Group’s Eco-Recycling Sector embraced the “Five Points in One Line”, a process model for waste collection and recycling, and the strategic plan “One Body and Two Wings”. The focus was on three areas: waste sorting and zero-waste city integration, resource recycling, and environmental sanitation integration.
Eco-recycling secured Shandong Ji’nan Kitchen Waste Treatment Project (“Ji’nan Kitchen Waste Project”), an investment of approximately RMB449 millions during the year under review. It also signed contracts to provide regional waste sorting service in Suzhou Wujiang Qidu Town. During the year under consideration, Changzhou Waste Sorting Service was operational, and Ji’nan Kitchen Waste Project was constructed.
Greenergy
The Group’s 2021 greenergy sector was focused on the R&D manufacturing and sales energy-saving and healthy lighting products. Software and hardware products were also developed to support the development of smart cities based on greenergy intelligent light poles. Greenergy provides lighting services for a variety of purposes, including tourism sites and urban streets, as well as solutions for the development smart cities.
In terms of market expansion during the year under review greenergy signed contracts based on an EMC Model for Tianjin Jiangbei Urban District Streetlight Retrofitting Project (“Tianjin Jianghai Project”) and Jiangsu Nanjing Jiangbei New Material Science and Technology Park Project (“Nanjing Jiangbei Project”), greenergy secured six EPC projects in Shandong Jiangsu Shaanxi Zhejiang, Zhejiang, Zhejiang, Guangdong Provinces. It also acquired 1 equipment supply service for Guangdong. This total contract value is approximately RMB115 millions. Greenergy also signed 74 contracts to sell Everbright New Sodium Lamps (and LED lamps) externally, for a total contract value of RMB12.69 millions.
Construction of projects was completed during the year under review by greenergy’s Tianjin Jinghai Projects, Nanjing Jiangbei Projects, Shandong Ji’nan Streetlight Retrofitting EMC Projects and Tengzhou Streetlight Retrofitting EMC Projects. Construction was also completed for EPC projects in the year under review. Shandong Ji’nan Sungeng Street Streetlight Refitting Project and 3 EPC Projects secured by greenergy were also completed. Greenergy Intelligent Industrial Park also completed construction in a timely manner. This will serve as greenergy’s national R&D base and production base, allowing it to take advantage of its strengths in energy-saving lighting technology, product scale production, and other benefits.
greenergy also promoted R&D, optimization and improvement of its lighting products. This gave the company a solid foundation to grow its product portfolio and expand its business. Greenergy’s Shenzhen office received the 3A Enterprise Credit Certificate and 5A Energy Performance Contracting certification, while its Ji’nan branch was awarded the qualification for Municipal Construction General Contracting Works and Grade 3 Qualification for Urban and Road Lighting Project. The Nanjing branch also obtained “Three System Certification.”
Envirotech
In 2021, the Group’s envirotech segment had been leveraging its “Four-in-One” technological innovations and R&D layout with platforms in Hong Kong Shenzhen Nanjing, Nanjing, Qingdao and Nanjing, to foster and accelerate the Group’s strategic transformation, structure optimization and new business development. The sector strives to be a global platform dedicated green technological innovation.
Envirotech’s R&D strategy in 2021 was to support the development of new business, traditional business, and future development. Envirotech offered technical support services that covered grate furnace, fluegas purification, leachate treatment and control systems. The Group signed a cooperation agreement in 2013 with Hong Kong Science and Technology Parks Corporation, to become strategic partners. This was in order to create a green technology incubation and marketing platform in Hong Kong, which will support the development and growth of start-ups in this industry and foster green technological innovation.
The Group was granted 283 patents in 2021. This included 24 invention patents and 161 utility patents. It also published 18 major technical papers. The Group had received over 1,300 patents as of December 31, 2021.
Environmental Planning
The Group’s 2021 environmental planning sector used the Everbright Ecological and Environmental Planning and Design Institute, (the “Institute”), as the main platform. It focuses on environmental protection and energy. It seeks to expand the business scope and industry chain by enhancing technical capabilities, exploring diversified business operations, and building core technological capabilities.
The Institute made an active effort during the year under review to meet the needs and undertake relevant services to the Group’s business areas. It also continued to increase its efforts to explore and plan for external business opportunities. It signed a number internal and external service agreements in the fields of consulting, design, EPC, and other fields with a total contract value exceeding RMB143 million.
The Institute was able to obtain the Grade I Qualification for Professional Contractors of Environmental Protection Engineering Work, the Grade A Qualification of Environmental Engineering Work for Solid Waste and the Grade B Qualification of Architecture Construction. This is a good start towards becoming a Grade-A design institute.
Everbright Environment’s Executive Director and Chief Executive Officer, Mr. Luan Zusheng stated that the world was still experiencing accelerated changes in 2021. This was due to the continued attacks of the Pandemic. China maintained its leadership position in economic development and Pandemic prevention, control and control around the world. The country started the 14th Five Year Plan on the right foot. Everbright Environment maintained its top priority of providing quality environmental services despite the external environment that was becoming increasingly complex and severe. It has achieved steady, healthy, and steady growth by overcoming both domestic and international challenges. This further strengthened its competitiveness and established its industry-leading position. Everbright Environment enters another year with many challenges and opportunities. It will face transformation pressure, adopt ‘Innovation driven Development’, improve its financial and capital management capabilities and seek management proficiency to increase operating quality and efficiency. In a bid for a steady, high-quality development path that values ecology and emphasizes green and low-carbon topics, it will use the opportunities and opportunities presented by relevant policies.
“Tackling climate changes has become a difficult task for countries around the world,” said Mr. Wang Tianyi (Executive Director and Chairman of the board at Everbright Environment). China made a solemn “Dual Carbons” commitment to the international community. This was a key initiative in China’s 14th Five Year Plan and gave China good momentum for its low-carbon and green development. Everbright Environment, China’s largest environmental company and a well-respected environmental group, will remain committed to the original goals it set when it transformed into the environmental protection industry. It will prioritize stability and ‘Make Progress In Stability, Pursue Excellencein Progress, and Seek Innovations in Excellence’. The Group will closely follow China’s national policies and seize opportunities for growth as it enters the critical year of the 14th Five-Year plan. It will continue to pursue its corporate transformation and development goals in a crucial year, with a commitment to strengthening its existing strengths and seeking innovation. The Group will also adhere to its Three Carbons’ development targets and its new development paradigm, which includes ‘Four Major Areas’: environment, resources, energy, and climate. The Group will continue to create value for shareholders and all stakeholders by focusing on both reducing pollution and carbon emissions. It will strive for new heights in its quest to become a world-leading ecological and environment group. It will also see things from a wider and more holistic perspective, which will help it to be stronger to facilitate national strategies!
