EB ENVIRONMENT (00257.HK): Consortium Wins Dongguan Waste-to-Energy Concession, Phase 1 Investment RMB2.25bn

NewTimeSpace News: On 23 October 2026, China Everbright Environment Group Limited (stock code: 257) announced that a consortium comprising Everbright Environmental Protection (China), China Construction Third Engineering Bureau Group and Guangzhou Huake Engineering Technology signed a preliminary concession agreement with the Dongguan City Appearance and Environmental Sanitation Centre for the investment, financing, construction, operation and maintenance of the Dongguan Southeast Environmental Thermal Power Plant project under a build-own-operate-transfer (BOOT) model.

The phase 1 total investment is expected to be about RMB2,252,035,800 (about HK$2,631,503,800), including estimated registered capital of the project company of about RMB675,610,700 (about HK$789,451,100), or 30% of phase 1 investment, with the balance to be raised by the project company through bank and shareholder loans. Everbright Environmental Protection (China) will contribute about RMB537,110,500 (about HK$627,613,600); upon completion it, China Construction Third Engineering Bureau and Guangzhou Huake will hold 79.5%, 20% and 0.5% of the project company respectively, which will be accounted for as a subsidiary and consolidated.

The project is designed to process 3,000 tonnes of municipal solid waste per day and a total of 500 tonnes of food waste per day, comprising 300 tonnes in phase 1 and 200 tonnes in phase 2. The concession period is 31 years, including a preparatory and construction period of not more than 27 months, after which the facilities will be transferred free of charge. Performance bonds of RMB60 million for construction, RMB20 million for operation and RMB60 million for handover are required.

Under the Listing Rules, the highest applicable percentage ratio exceeds 5% but is below 25%, so the transactions constitute a discloseable transaction subject to reporting and announcement requirements but exempt from shareholder approval.