Smart energy solutions are going online in full force. ENVISION GREEN (01783) is creating multiple new growth points through a circular and sustainable ecosystem.

Investors twenty years ago could not have imagined that there would be a listed company in the Hong Kong market that could cover the entire smart energy value chain and make its business closed-loop. At that time, the stage of social and economic development determined that people were unfamiliar with the concept of "low carbon". And the low-carbon lifestyle of modern people starts with clothing, food, housing, and transportation. First is low-carbon housing: is the space we live in green buildings? How much electricity can its elevators and fresh air systems save each year? Secondly, green transportation: can our vehicles have zero carbon emissions? Furthermore, the household energy we use, is it green and clean? These questions, in the era of "double carbon," are as important as air and water sources and are related to everyone. Any longstanding and successful enterprise rides the wave of the times. The demand of the low-carbon era calls for the emergence of pioneers. On November 17th, ENVISION GREEN Group held a brand launch event titled "From Hong Kong, Empowering the Green Transformation of the Construction Industry" in Wan Chai, Hong Kong. A week earlier, to match the company's ongoing business and future vision, the company's Chinese abbreviation was changed to "ENVISION GREEN," indicating the firm's firm determination to accelerate its transformation. Guo Jinsheng, chairman of the group, said that the group has a full license in construction, electricity, and environmental protection, and has a strong and professional management and technical team, as well as an extensive network in the construction and renewable resource industries. In the future, based on these advantages, the group will inject a new engine for smart and green development. On one hand, it will widely apply green innovation technology and smart energy-saving solutions to infrastructure projects and green development projects. On the other hand, it will actively layout the entire chain of green energy industries in Hong Kong and overseas, continuously enhance the company's core competitiveness, establish a sound ESG management system, and provide customers with professional and intelligent solutions while delivering stable and long-term returns to shareholders. GMTEight understands that ENVISION GREEN Group has already established a circular and sustainable development model and framework for smart buildings, green transportation, power battery disposal, and recycling. In other words, in the era of "double carbon" and futuristic industrial opportunities, ENVISION GREEN Group has taken the lead in several business layouts, creating multiple new growth curves. With the continuous expansion of the company's business, ENVISION GREEN is expected to become a shining "dark horse" in the transition to the new energy industry. Why would such a company appear in Hong Kong? Perhaps it is rooted in its historical accumulation of green genes. Based on its historical accumulation, ENVISION GREEN, which started with traditional construction business, was established in 1985 as a long-established general contractor. With superior technical strength, extensive customer resources, and channel advantages, ENVISION GREEN has constructed numerous classic architectural projects in Hong Kong, including the SING TAO Daily Headquarters, Cubus in Causeway Bay, S.A.S. DRAGON Building (Sharp Hong Kong Headquarters), D2 Place in Cheung Sha Wan Phase II, and East Kowloon Tower. After successfully listing in Hong Kong in 2018, ENVISION GREEN started modern corporate governance and gradually incorporated intelligence and environmental elements into its construction, adopting green design, energy-saving materials, and green innovation technologies in the construction process. This made ENVISION GREEN a pioneer in the local green energy infrastructure field in Hong Kong. When China announced its goal of achieving "carbon neutrality" in September 2020, it marked the comprehensive opening of the new era of new energy. This posed new requirements and challenges for carbon emissions in various industries, but also presented a historical opportunity. ENVISION GREEN, with a keen sense of industrial changes, decided to further integrate infrastructure, ESG, and green innovation technologies on the basis of its existing business, accelerate the transformation and upgrade of green infrastructure business, and embarked on a series of strategic layouts. Looking at the timeline, in just 14 months from September 2021 to November 2022, ENVISION GREEN implemented six major layouts with a "thunderous momentum". Through acquisitions, strategic cooperation, strategic upgrades, and the establishment of new companies, the company extended its products or services to five areas or aspects: the construction and installation of electric vehicle charging facilities, the recycling of power batteries, sustainable solutions for electric vehicle batteries, energy-efficient construction, and smart management of green buildings, and the development and utilization of new energy storage systems. Based on these layouts, ENVISION GREEN's business has been restructured and upgraded. In addition to providing upper-level structural construction, repair, maintenance, and renovation projects as a general contractor, the company can also apply diversified green and smart solutions to the entire lifecycle of buildings, providing comprehensive one-stop smart energy management solutions for customers in the green building industry. In the lifecycle of buildings, in addition to the "construction emissions" generated during construction, there are also "operational emissions" generated during operation and "embedded emissions" generated throughout the remaining lifecycle. ENVISION GREEN's upgraded green infrastructure service aims to effectively address these three "carbon" elements. The company divides its green infrastructure service into smart building energy-saving construction and smart building energy-saving management, achieving comprehensive and scenario-based carbon reduction services from top-level planning and engineering design to intelligent operation and maintenance management. In smart energy-saving construction, ENVISION GREEN not only fully adopts green design and energy-saving materials but also develops new battery energy storage systems as an ideal alternative to traditional diesel generators. These systems provide long-lasting, stable, and energy-saving power solutions for construction sites, achieving zero carbon emissions during the building construction phase. Currently, ENVISION GREEN's battery energy storage systems have been used in construction projects such as Tuen Mun Gold Coast, Kowloon Bay Hung To Road 33, Yuen Long Ma Feng Ling Road, and Yuen Long Tai Tong Road.In the future, the company will work with strategic partners to expand the application of the newly developed battery energy storage system in various scenarios such as industrial and commercial sectors, residential energy storage, microgrids, and electric vehicle charging stations.Image source: ENVISION GREEN official website The technology in smart building energy management demonstrates the uniqueness and strong competitiveness of ENVISION GREEN's products and services. ENVISION GREEN achieves a smart, monitorable, measurable, and optimized zero-carbon control mode for buildings by installing an integrated "Zero Boundary System" consisting of energy station energy efficiency control system, building management system, and energy management system. This will significantly reduce "operational carbon" and "hidden carbon". At the same time, the efficient energy management system also lays a solid foundation for ENVISION GREEN's entry into the green transportation field. Leading layout, riding the green transportation trend The construction and installation of electric vehicle charging facilities, as an important part of ENVISION GREEN's entry into the green transportation field, have attracted market attention. With the introduction of China's "dual carbon" goal, the transportation industry also needs to reduce environmental pollution and energy consumption to achieve sustainable development. Therefore, green transportation has become a major trend in future transportation development. Hong Kong has expressed its commitment to achieving carbon neutrality by 2050, and the green development of the transportation industry has become urgent. To achieve the carbon neutrality goal, the Hong Kong Special Administrative Region Government has long launched the "Hong Kong Electric Vehicle Popularization Roadmap" to promote the popularization of electric vehicles in Hong Kong. Clear plans have been made for the construction of private and public charging infrastructure in Hong Kong, which has led to a rapid increase in the number of electric vehicles in Hong Kong. Data shows that the proportion of newly registered electric private cars in Hong Kong has surged from 6.32% in 2019 to 52.72% in 2022. It is estimated that by 2035, the number of newly registered electric vehicles in Hong Kong will increase to nearly 40,000, nearly double the number in 2022. The increasing number of newly registered electric vehicles each year will create a huge demand for charging, and it is necessary to strengthen the construction of electric vehicle charging infrastructure to maintain the stability of green transportation in Hong Kong. In order to match the growing scale of electric vehicles and promote the development of the electric vehicle industry, the Hong Kong Special Administrative Region Government has launched the HK$3.5 billion "EV Estate Charging Enabler Scheme" (EHSS), aimed at improving electric vehicle charging infrastructure and network coverage. This has accelerated the market growth of electric vehicle charging infrastructure construction and installation. Facing the market demand, those who lay out in advance often benefit the most, and ENVISION GREEN is one of them. The company has rapidly expanded its electric vehicle charging infrastructure construction and installation services by leveraging its existing advantages. With years of experience in the construction industry, ENVISION GREEN has diverse project channels, a professional project team, and rich engineering design and technical experience. Therefore, ENVISION GREEN quickly launched one-stop professional construction and installation services for electric vehicle charging equipment in private buildings and public places, and participated in the EHSS program of the Special Administrative Region Government. In government bidding projects, ENVISION GREEN can participate in bidding with cost advantages over competitors in terms of channels, team, technology, and experience, significantly increasing its potential market space. Secondly, ENVISION GREEN has accelerated its market entry through strategic cooperation. The electric vehicle charging infrastructure construction market in Hong Kong is mainly composed of three parts: the market corresponding to the EHSS program, the market of government bidding, and the market competition among third-party players. ENVISION GREEN has participated in the EHSS program, gained competitive advantages in government bidding, and also targeted the third-party market. The company has entered into a strategic cooperation with leading Hong Kong automobile company Keystone Technology to jointly explore the market. After cooperating with Keystone Technology, ENVISION GREEN quickly installed charging facilities, aiming to establish benchmark projects and create a brand effect, giving the company stronger competitiveness in the third-party market. With the dual-track approach mentioned above, ENVISION GREEN expressed that the company is expected to rapidly obtain electric vehicle charging facility projects through its first-mover advantage. It is foreseeable that electric vehicle charging infrastructure construction and installation services, which are in a favorable position, will become one of ENVISION GREEN's sources of new growth. Based in Hong Kong, layout the world with circular energy utilization In ENVISION GREEN's circular and sustainable business model, the disposal and recycling of power batteries are key components to achieve the overall circular development of the business model and the key to ENVISION GREEN's smart energy layout. As mentioned earlier, after the acquisition of Keystone Energy and Inxure International and mastering the core technology of power battery disposal and recycling, ENVISION GREEN has developed a new type of battery energy storage system. This product can be directly used in the company's core businesses of smart buildings and green transportation, enabling continuous empowerment for these two core businesses and achieving the characteristics of synergistic and sustainable development of the entire business model. From an industry perspective, the development of the disposal and recycling of new energy electric cores has a clear sense of urgency and necessity. According to Jibang Consulting data, by 2030, the newly installed capacity of global power batteries will exceed 3,000 GWh, and the newly installed capacity of global electrochemical energy storage will reach 1,160 GWh. From 2022 to 2030, the compound annual growth rate of newly installed capacity for power batteries and electrochemical energy storage is 24.57% and 43.37%, respectively, which will drive the demand for large-scale battery cores. However, in the long term, upstream raw materials such as lithium mines will not be able to meet the expanding market demand. Therefore, it is particularly important to achieve the recycling of battery cores, and battery cores as the core components of power batteries and energy storage systems will soon face the first wave of "retirement." According to Jibang Consulting data, by 2030, the market size of global power battery and energy storage battery recycling will reach 1,015 GWh. From 2022 to 2030, the market willThe compound annual growth rate of the scale reaches as high as 33.94%, which will drive the vigorous development of the global lithium battery recycling market.Meanwhile, due to the scarcity of upstream resources and the increased cost of raw materials, as well as the more complex structure of lithium batteries compared to lead-acid batteries, the dismantling and disposal process is more dangerous, requiring higher professional expertise. In addition, there are cost issues related to logistics and transportation. Therefore, local disposal of lithium batteries carries significant economic value. Taking the Hong Kong market as an example, by 2035, Hong Kong will stop registering fuel-powered private cars. If we calculate based on the current 650,000 electric vehicles, the battery disposal and recycling in Hong Kong by 2035 will be a market worth tens of billions. ENVISION GREEN recognizes the immense potential of the disposal and recycling market for new energy battery cells and its significant synergies with its own business, and has taken the lead in laying out in this market. The company currently has a clear first-mover advantage. In terms of licenses, ENVISION GREEN obtained a full set of licenses for battery disposal, transportation, and export in Hong Kong in 2022. This is equivalent to obtaining the source of retired batteries and the company's total dismantling and disposal capacity is at the forefront of its industry in Hong Kong. In terms of channels, ENVISION GREEN has become the leading provider of battery recycling services for the top two market share holders and other leading automobile companies in the Hong Kong market, giving it a clear advantage. With the significant first-mover advantage in licenses and channels, ENVISION GREEN's battery recycling and recycling business can consolidate the Hong Kong market in the short term and gradually lock in the potential market of the Guangdong-Hong Kong-Macao Greater Bay Area. At the same time, ENVISION GREEN is actively negotiating with leading global power battery companies and new energy vehicle companies, intending to cooperate in the overseas recycling and recycling of lithium batteries. If progress can be gradually realized, ENVISION GREEN is expected to build a huge global service system for lithium battery recycling and recycling, starting from Hong Kong and covering the Southeast Asian, European, and American markets. This will provide a source of power for the development of world new energy. Contributing to "carbon neutrality" and leading the industry ENVISION GREEN's transformation since 2021 has achieved significant results, as can be seen from its sustainable development model. The company's newly established business system has completed the reconstruction of its business model, and ENVISION GREEN's intrinsic value has undergone a nuclear fission. Analyzing ENVISION GREEN's layout logic at a deeper level will provide a more profound understanding of its value. It is well known that achieving carbon neutrality has become a cross-era trend. However, the key question is in what direction the entire industry will evolve. Only by understanding the evolving trends of the industry can one maximize the benefits. Academician Chen Qingquan, a member of the Chinese Academy of Engineering, a member of the Royal Academy of Engineering in the United Kingdom, the founding chairman of the International Academy of Innovation and a founding chairman and rotating chairman of the World Electric Vehicle Association, shared his insights in a video titled "Nurturing Scientific Spirit and Promoting Innovative High-quality Development" at the press conference. He provided guidance on the future development trends of the new energy industry. He emphasized that the four networks (energy, information, transportation, and human) and the four flows (energy flow, information flow, material flow, and value flow) should be integrated. This will link energy, information, and automotive revolutions, thereby generating the greatest economic and ecological benefits. Chen Qingquan believes that the integration of the four networks and four flows replaces linear thinking with breakthrough circular thinking. The core of this integration is to solve the problem of sustainable development in the fourth industrial revolution. With the combination of technological innovation and governance systems, digital interconnectedness will eliminate various islands such as information, energy, and materials, comprehensively improve the efficiency of information, energy, and material utilization, and achieve short-term energy security and long-term net-zero emissions objectives. The development forecast of the four networks and four flows plays a crucial guiding role in ENVISION GREEN's business layout. To seize the opportunities brought by the carbon neutrality industry, ENVISION GREEN's business layout has deeply integrated into the energy network. Depending on the scenarios, the company uses green buildings as the "structure network," green transportation as the "connection network," and energy storage and charging points as the "small micro-area network." By covering multiple networks, the company provides low-carbon electricity for the general public in the two major areas of "residence" and "travel," and may even integrate surplus energy generated by grid-connected energy storage systems into the overall energy network in the future. Furthermore, based on the deep coverage of the energy system by its business layout, ENVISION GREEN's business system will generate a large amount of energy flow and information flow data. In the future, the company will establish a carbon asset management system from three dimensions: carbon resource management, carbon emission reduction technology management, and carbon trading and carbon credit management. This will provide detailed data support and services to customers, peers, financial institutions, and governments, promoting the prosperity and development of the zero-carbon industry. The times create the trend, and the birth of any great company cannot be separated from the grand industry trend. ENVISION GREEN, which has already achieved results in its transformation, has created a sustainable development model that fully aligns with the trends of the four networks and four flows. Given time, as ENVISION GREEN rides the wave of industrial trends, it is expected to evolve into a global leader in smart energy solutions, and the nuclear fission of its intrinsic value will gradually be reflected in the company's stock price.