JUNXIN ENVIRONMENTAL: Passes HKEX Listing Hearing, Primarily Engaged in Integrated Waste Treatment and Resource Utilisation Including Waste-to-Energy

NewTimeSpace (newtimespace.com) News, On 13 September 2026, Hunan Junxin Environmental Protection Co., Ltd. ("Junxin Environmental" or the "Company") published a post hearing information pack ("PHIP") on the website of the Stock Exchange seeking the listing of its H shares on the Main Board, with CICC Hong Kong Securities Limited and CITIC Securities (Hong Kong) Limited as joint sponsors, with a nominal value of RMB 1.00 per H share. The PHIP is a draft, the offer price, the number of offer shares and the expected timetable are still marked as "[REDACTED]", and the listing application has not been approved by the Stock Exchange or the Securities and Futures Commission. The Company's A shares have been listed on the ChiNext Market of the Shenzhen Stock Exchange since 13 April 2022 (stock code: 301109.SZ).

The Company provides integrated waste treatment and resource utilisation solutions, covering the investment, management and operation of green environmental energy projects. According to Frost & Sullivan, in terms of project scale, the Changsha Environmental Protection Industrial Park where the Company's main operations are located is one of the largest integrated environmental protection parks among peers in China. During the track record period, its core businesses comprised (i) clean waste-to-energy incineration for power generation; (ii) integrated treatment of multiple types of waste, including sludge, sewage and leachate, and fly ash and others; (iii) transfer, compression and transportation of domestic waste; and (iv) collection, harmless treatment and resource utilisation of food waste.

Revenue rose from RMB 1,836.6 million in 2023 to RMB 2,410.9 million in 2024 and RMB 2,730.7 million in 2025, and amounted to RMB 736.4 million for the three months ended 31 March 2026 against RMB 697.4 million a year earlier. Overall gross margin was 51.2%, 41.5%, 55.0% and 56.6% for the same periods, while project operating gross margin was 62.9%, 63.6%, 56.6% and 58.5%. Profit for the year or period rose from RMB 652.8 million in 2023 to RMB 686.2 million in 2024 and RMB 994.0 million in 2025, and was RMB 304.9 million for the three months ended 31 March 2026 against RMB 236.0 million a year earlier; net profit margin was 35.5%, 28.5%, 36.4% and 41.4% respectively. As at 31 March 2026, the Company's net assets were RMB 9,627.0 million and net current assets were RMB 4,351.4 million.

On operating data, for the years ended 31 December 2023, 2024 and 2025 and the three months ended 31 March 2026, total domestic waste treated by the Company's clean waste-to-energy incineration projects was 3.2 million tonnes, 3.2 million tonnes, 3.8 million tonnes and 1.0 million tonnes respectively, generating on-grid electricity of 1.5 billion kWh, 1.5 billion kWh, 1.8 billion kWh and 0.5 billion kWh respectively, at efficiencies of 452 kWh, 460 kWh, 486 kWh and 509 kWh of on-grid electricity per tonne of domestic waste treated. As at the latest practicable date, the Company's clean waste-to-energy incineration projects had an aggregate daily treatment capacity of 10,600 tonnes of domestic waste; projects within the Changsha Environmental Protection Industrial Park had an aggregate daily treatment capacity of 2,700 tonnes of leachate, 1,000 tonnes of sludge and 215 tonnes of fly ash; the Liuyang fly ash treatment project had a daily treatment capacity of 42 tonnes of solidified matter from fly ash chelation and stabilisation; the Changsha transfer project had an aggregate daily treatment capacity of 10,000 tonnes of domestic waste; and the Changsha food waste project had a daily treatment capacity of 1,200 tonnes of food waste, with an oil extraction rate of over 7% and the capacity to produce up to 30,000 tonnes of industrial-grade mixed oil per year.

According to Frost & Sullivan, in 2025 the Company's Changsha waste incineration power generation project ranked fourth among all solid waste incineration projects in China by daily treatment capacity, and the Company ranked first among all waste incineration power generation companies in China by average on-grid electricity per tonne of waste; by daily treatment capacity, the Changsha transfer project ranked first among all domestic waste transfer treatment and transportation projects in China and the Changsha food waste project ranked third among all food waste treatment projects in China. On overseas expansion, the Company entered into a service concession agreement with local authorities in Kyrgyzstan in 2024 to develop a green environmental energy project in the capital Bishkek, the first phase of which commenced operation in December 2025; as at the latest practicable date, the Company had entered into an investment agreement and a service concession agreement for the Osh city project in Kyrgyzstan and investment agreements and service concession agreements for two similar projects in Issyk-Kul Region; in addition, the Company entered into a memorandum of understanding in July 2025 and an investment agreement in August 2025, and in April 2026 entered into a waste supply agreement and a power purchase agreement, to develop a similar project in Almaty, Kazakhstan (with a stipulated waste treatment capacity of 2,000 tonnes per day). In April 2026, the Company received a letter of acceptance for the Changsha Hexi waste incineration power generation plant project (planned treatment volume of 4,000 tonnes per day).

Subsequent to the track record period, the Company's business continued to grow. For the six months ended 30 June 2026, the Company's revenue increased 5.6% to RMB 1,550.4 million from RMB 1,468.4 million a year earlier, gross profit increased 10.0% to RMB 886.1 million, overall gross margin rose from 54.9% to 57.2%, and profit for the period increased 8.6% to RMB 591.0 million. On major acquisitions, on 3 March 2023 the Company entered into an agreement with 19 counterparties including Hunan Renjing, Hunan Renlian, Hong Yefan, Hunan Renyi and Hu Shiti to acquire a 63% equity interest in Renhe Environmental Technology for a total consideration of RMB 2,196,810,000, comprising the issue of 105,615,853 A shares (valued at RMB 1,537,767,000) and cash of RMB 659,043,000, which were fully settled in November 2024 and January 2025 respectively. As at the latest practicable date, the Company's controlling shareholders Mr. Dai, Ms. Li, Junxin Group and Daoxin Investment were entitled to control approximately 64.92% of the Company's total issued share capital. On dividends, the dividend payout ratios for the years ended 31 December 2023, 2024 and 2025 were 71.8%, 94.6% and 70.2% respectively; on 21 April 2026 the Company's annual general meeting approved a dividend of RMB 6.53 per 10 shares, totalling RMB 502.9 million, which had been paid as at the latest practicable date. 

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