New stock news | Hunan Junxin Environmental Protection submits its prospectus to the Hong Kong Stock Exchange, ranking first among Chinese waste incineration power generation companies

According to the disclosure by the Hong Kong Stock Exchange on February 13th, Hunan Junxin Environmental Protection Co., Ltd. (referred to as: Hunan Junxin Environmental Protection) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CICC and CITIC SEC as its joint sponsors. This is the second time the company has submitted to the Hong Kong Stock Exchange. The prospectus shows that Hunan Junxin Environmental Protection is a company that provides professional solutions for comprehensive waste treatment and resource utilization, including investment, management, and operation of green environmental energy projects. According to Frost & Sullivan, in terms of project scale, the main business operation of Hunan Junxin Environmental Protection in the Changsha Environmental Protection Industrial Park is one of the largest comprehensive environmental parks in China. Company Profile By 2024, Hunan Junxin Environmental Protection had signed a service franchise agreement with the local authorities in Kyrgyzstan to develop green environmental energy projects in the capital Bishkek. Phase one of the Bishkek project began operation in December 2025. As of the last feasible date, Hunan Junxin Environmental Protection had signed an investment agreement and subsequently a service franchise agreement aimed at developing a green energy and environmental service project in Osh city, Kyrgyzstan, and signed investment agreements for two similar projects in Issyk-Kul Province, Kyrgyzstan. To expand its business scope in Central Asia, Hunan Junxin Environmental Protection also signed a memorandum of understanding in July 2025 and an investment agreement in late August 2025 to develop similar projects in Almaty, Kazakhstan. Looking ahead, Hunan Junxin Environmental Protection will continue to focus on exploring and seeking opportunities in other regions with strong potential, and providing comprehensive waste treatment and resource utilization solutions locally. In terms of market competition, according to Frost & Sullivan, in 2024, Hunan Junxin Environmental Protection's Changsha waste incineration power generation project ranked fourth in terms of daily processing capacity among all solid waste incineration projects in the country, and ranked first in terms of average electricity generation per ton of garbage among all waste incineration power generation companies in China. Hunan Junxin Environmental Protection's Changsha transfer project also ranked first in terms of all waste transfer and transport projects in the country, and the Changsha kitchen waste project ranked third in terms of daily processing capacity among all kitchen waste processing projects in the country. Hunan Junxin Environmental Protection is committed to maintaining its market leader position and promoting its financial and operational expansion through the following future strategies: (i) focusing on core business, deepening strategic focus, and enhancing green technology capabilities; (ii) focusing on expanding business layout in overseas markets along the "Belt and Road" initiative; (iii) improving operational efficiency through technological innovation and digital transformation; and (iv) strengthening talent development and organizational resilience. Financial Information Revenue As of the end of the years 2022, 2023, and 2024, and the nine months ended September 30, 2025, the revenues were RMB 1.548 billion, RMB 1.837 billion, RMB 2.411 billion, and RMB 2.115 billion, respectively. Gross Profit As of the end of the years 2022, 2023, and 2024, and the nine months ended September 30, 2025, the gross profits were RMB 86.54 million, RMB 94.01 million, RMB 100.07 million, and RMB 120.86 million, respectively. Profit As of the end of the years 2022, 2023, and 2024, and the nine months ended September 30, 2025, the net profits were RMB 5.875 million, RMB 6.528 million, RMB 6.862 million, and RMB 8.253 million, respectively. Industry Overview Solid waste is typically divided into five categories: (i) municipal waste, including recyclables and kitchen waste, which are treated by incineration and landfilling methods; (ii) general industrial solid waste, such as slag and waste residue, which are usually handled through resource recovery or safe disposal methods; (iii) construction waste, which is managed through recycling and landfilling methods; (iv) hazardous waste, which poses environmental and health risks and requires special treatment such as incineration or chemical treatment; and (v) agricultural waste, including crop residues and manure, which can be biodegraded and managed through recycling and harmless treatment. Municipal waste is the most common type of solid waste in daily life, and the combustible components in municipal waste can be converted into fuel for incineration power generation after reasonable sorting and treatment; the kitchen waste contains a large amount of organic matter and grease, which are key raw materials for biogas power generation and industrial-grade mixed oil refining. The industry of municipal waste incineration power generation and kitchen waste resource utilization is gradually expanding and has become an important part of the green energy field. With the increasing generation of solid waste in emerging markets, existing waste treatment capacity is insufficient to support future development needs, leading to a significant gap in the overall market. In this context, players in mature markets have accumulated mature technologies and operating experiences in areas such as municipal waste incineration, kitchen waste resource utilization, and sludge coordinated disposal, gradually establishing a standardized output system covering design, construction, commissioning, and operation for emerging markets. Compared to European and American companies that rely more on customized design and local engineering team delivery modes, Chinese leading companies demonstrate higher project advancement efficiency in EPC general contracting, BOT/BOO models, especially in the face of financial pressures and weak infrastructure backgrounds in emerging markets, Chinese companies' mature operating capabilities and rapid implementation solutions are more attractive. China's municipal waste generation has steadily increased, from 235.1 million tons in 2020 to 260.6 million tons in 2024. As of the end of 2023, there were 696 harmless treatment facilities for municipal waste incineration in operation in China. The incineration volume of municipal waste in China has grown rapidly, from 146.1 million tons in 2020 to 220.0 million tons in 2024, achieving a compound annual growth rate of 10.8% during that period. As urbanization continues to advance, China's waste incineration and power generation volume and growth will tend to stabilize; meanwhile, the historical pollution of landfills caused by landfilling waste urgently needs to be solved through incineration treatment, allowing previously stored waste to undergo harmless incineration treatment, further expanding the market space. It is expected that the compound annual growth rate of the waste incineration and power generation volume in China will reach 7.0% from 2025 to 2029, with the volume reaching 308.5 million tons by 2029. Board of Directors Information The board of directors consists of 11 members, including five executive directors, two non-executive directors, and four independent non-executive directors. The board of directors is responsible for the management and operation of the group's business and has general authority. Shareholding Structure The company is firmly controlled by the controlling shareholder family with Mr. Dai Daoguo as the core. As of the last feasible date, Junxin Group directly holds 45.27% of the company's shares, Mr. Dai Daoguo directly holds 3.83% of the company's shares, and Daoxin Investment (with Dai Daoguo as the managing partner) holds 1.28% of the company's shares, with the remaining major shareholders including Hunan Renjing holding 5.58% and Hunan Renlian holding 5.26%. Intermediary Team Joint Sponsors: China International Finance Hong Kong Securities Limited; CITIC SEC (Hong Kong) Limited Company Legal Advisor: Regarding Hong Kong laws: King & Wood Mallesons (Hong Kong) law firm; regarding Chinese laws: King & Wood Mallesons (Changsha) law firm; regarding Kyrgyzstan laws: GRATA International Law Firm Legal Advisor for Joint Sponsors: Regarding Hong Kong laws: Baker McKenzie law firm; regarding Chinese laws: Zhong Lun Law Firm Reporting Accountants and Auditors: PricewaterhouseCoopers Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Compliance Consultant: SOMERLEY CAP Limited