New stock news | Hunan Junxin Environmental Protection (301109.SZ) has submitted its application to the Hong Kong Stock Exchange for the third time. The Changsha Environmental Protection Industrial Park is one of the largest comprehensive environmental protection parks in China among its peers.

According to the HKEX disclosure on August 13, Hunan Junxin Environmental Protection Co., Ltd. (301109.SZ) (hereinafter referred to as Hunan Junxin Environmental Protection) has submitted its application to list on the main board of the Hong Kong Stock Exchange, with CICC and CITIC SEC acting as joint sponsors. The company previously submitted listing applications to the Hong Kong Stock Exchange on August 13, 2025, and February 13, 2026. Company Overview According to the prospectus, Hunan Junxin Environmental Protection is a company that provides comprehensive waste treatment and resource utilization solutions, including investment, management, and operation of green environmental energy projects. Based on data from Frost & Sullivan, in terms of project scale, the Changsha Environmental Industry Park, where Hunan Junxin Environmental Protection's primary business operates, is one of the largest integrated environmental parks among its peers in China. The project's scale is primarily measured by designed waste treatment capacity, which is the most commonly used industry indicator for assessing integrated environmental parks and individual treatment projects. As of the latest practicable date, it encompasses multiple projects, including those related to clean domestic waste incineration power generation and the comprehensive treatment of various wastes. During the track record period, the company's core businesses include (i) clean incineration power generation from domestic waste; (ii) comprehensive treatment of various wastes (including sludge, sewage and leachate, fly ash, and others); (iii) transfer treatment, compression, and transport of domestic waste; and (iv) collection, harmless treatment, and resource utilization of kitchen waste. Specifically: Clean incineration power generation from domestic waste: The company's clean incineration power generation projectsPhase I and II in Changsha, the Liuyang waste incineration power generation project, the Pingjiang waste incineration project, and the Bishkek project (Phase I)provide clean incineration power generation and green energy. For the years ended December 31, 2023, 2024, and 2025, and the three months ended March 31, 2026, the total amount of domestic waste treated by these projects was 3.2 million tons, 3.2 million tons, 3.8 million tons, and 1.0 million tons, respectively, producing electricity fed into the grid of 1.5 billion kWh, 1.5 billion kWh, 1.8 billion kWh, and 500 million kWh, with efficiencies of 452 kWh, 460 kWh, 486 kWh, and 509 kWh per ton of domestic waste treated. As of the latest practicable date, the company's clean incineration power generation projects have a total daily treatment capacity of 10,600 tons of domestic waste. Moreover, according to Frost & Sullivan, measured by average electricity fed into the grid per ton of waste, the company ranked first among all waste incineration power generation companies in China in 2025. Comprehensive treatment of various wastes: In addition to the Changsha waste incineration project, the Changsha Environmental Industry Park also houses various projects related to the treatment of sludge, leachate, fly ash, and others. As of the latest practicable date, the total daily treatment capacities of the projects in the park are 2,700 tons of leachate, 1,000 tons of sludge, and 215 tons of fly ash. The company's Liuyang fly ash treatment project commenced operations in May 2026, and as of the latest practicable date, the project's daily treatment capacity is 42 tons of chelated and stabilized solid waste produced from fly ash. Additionally, the company's Pingjiang project and Changsha transfer project also feature sewage treatment projects. Transfer treatment, compression, and transport of domestic waste: With the acquisition of Renhe in November 2024, the company further expands its capabilities to cover most aspects of the waste management value chain. The Changsha transfer project is operated by Renhe and has since become part of the group; as of the latest practicable date, the project has a total daily treatment capacity of 10,000 tons of domestic waste. Collection, harmless treatment, and resource utilization of kitchen waste: Another project operated by Renhe and has become part of the group since its acquisition is the Changsha kitchen waste project. As of the latest practicable date, this project has a daily treatment capacity of 1,200 tons of kitchen waste. As a byproduct of the waste utilization process, the company's Changsha kitchen waste project has an oil yield rate exceeding 7%, generating 30,000 tons of industrial-grade mixed oil annually. As part of its overseas strategic expansion, Hunan Junxin Environmental Protection has been establishing operations in Central Asia. In 2024, Hunan Junxin Environmental Protection signed a service franchise agreement with local authorities in Kyrgyzstan to develop green environmental energy projects in the capital, Bishkek. The first phase of the Bishkek project commenced operations in December 2025. As of the latest practicable date, Hunan Junxin Environmental Protection has signed an investment agreement and subsequently a service franchise agreement for the development of a green energy and environmental services project in Osh City, Kyrgyzstan, as well as signed investment agreements and service franchise agreements to develop two similar projects in the Issyk-Kul region of Kyrgyzstan. To broaden its business scope in Central Asia, Hunan Junxin Environmental Protection also signed a memorandum of understanding in July 2025, an investment agreement in late August 2025, and on April 2026 entered into a waste supply agreement and electricity purchase agreement for the development of similar projects in Almaty, Kazakhstan. Additionally, in April 2026, Hunan Junxin Environmental Protection received a bid notification for the Changsha Hexi waste incineration power plant project (planned treatment capacity of 4,000 tons per day). Financial Information Revenue For the years ending March 31 in 2023, 2024, 2025, and the three months ending March 31, 2026, the company recorded revenues of approximately RMB 1.837 billion, RMB 2.411 billion, RMB 2.731 billion, and RMB 736 million, respectively. Gross Profit For the years ending March 31 in 2023, 2024, 2025, and the three months ending March 31, 2026, the company's gross profits were approximately RMB 940 million, RMB 1.001 billion, RMB 1.503 billion, and RMB 417 million, respectively. Net Profit for the Year/Period For the years ending March 31 in 2023, 2024, 2025, and the three months ending March 31, 2026, the company recorded net profits of approximately RMB 653 million, RMB 686 million, RMB 994 million, and RMB 305 million, respectively. Industry Overview With population growth and economic development, the global quantity of various solid wastes continues to rise. For instance, the global production of domestic waste increased from 1,894.1 million tons in 2020 to 2,290.0 million tons by 2025, and it is expected to reach 2,718.6 million tons by 2030. Emerging marketsparticularly Central Asia, the Middle East, Southeast Asia, and South Americaare major drivers of this growth, with these regions generally exhibiting low domestic waste collection and incineration treatment rates, leading to a significant gap in overall disposal capabilities and resource utilization levels compared to the global average. For example, in Central Asia, the current waste collection rate does not exceed 50%, and the incineration share is only 8%, meaning that the majority of waste is not entering formal disposal systems or is not properly disposed of, posing potential risks for environmental pollution and public health safety. The amount of domestic waste generated in China has maintained steady growth, increasing from 235.1 million tons in 2020 to 252.3 million tons by 2025. As of the end of 2023, there were 696 operational domestic waste incineration plants in China. The treatment volume of domestic waste entering incineration in China has been experiencing rapid growth, rising from 146.1 million tons in 2020 to 215.0 million tons by 2025, achieving an 8.0% compound annual growth rate during this period. As the urbanization process continues, the volume and growth of domestic waste entering incineration in China will tend to stabilize; simultaneously, pollution issues caused by historically landfilled waste need to be addressed through incineration, with previously accumulated waste re-entering plants for harmless incineration treatment, further expanding market space. It is estimated that from 2026 to 2030, the compound annual growth rate of the national domestic waste incineration treatment volume will reach 2.8%, with an increase of 246.8 million tons by 2030. Incineration power generation projects typically profit through revenue from grid electricity sales and waste disposal fees. Despite differing standards across regions, they collectively form a stable and sustainable cash flow source for incineration power generation companies. The market size for domestic waste incineration power generation in China grew from RMB 37.1 billion in 2020 to RMB 53.4 billion by 2025, achieving a compound annual growth rate of 7.5%. Driven by steady growth in waste inputs and diversified profit models for waste incineration, it is expected that from 2026 to 2030, the national market size for domestic waste incineration power generation will grow at a compound annual growth rate of 2.6%, reaching RMB 60.8 billion by 2030. Board Information The Board currently consists of 11 directors, including five executive directors, two non-executive directors, and four independent non-executive directors. The Board is responsible for the management and development of the Groups business and has general authority. Shareholding Structure Mr. Dai Daoguang, Ms. Li Xiaochun, Junxin Group, and Daoxin Investment are a group of controlling shareholders of Hunan Junxin Environmental Protection. Ms. Li is Mr. Dais mother-in-law and has entered into a concerted action agreement with Mr. Dai. Mr. Dai is also the executive partner of the companys employee stock ownership platform, Daoxin Investment. As of the latest practicable date, the partnership interests in Daoxin Investment are held by Mr. Dai and 29 other limited partners (who are employees, former employees, and heirs of certain former employees) in shares of approximately 20.61% and 79.39%, respectively. No limited partner holds 30% or more of the partnership interests in Daoxin Investment. Intermediary Team Joint Sponsors: China International Capital Corporation (Hong Kong) Securities Limited; CITIC SEC (Hong Kong) Limited Company Legal Advisors: Grandall Law Firm (Hong Kong), Grandall Law Firm (Changsha), GRATA International Law Firm, Law firm GRATA LLP Joint Sponsors Legal Advisors: Baker McKenzie, Zhong Lun Law Firm Reporting Auditors and Accountants: KPMG Industry Advisors: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Compliance Advisors: SOMERLEY CAPITAL Limited