China Everbright Water U9E has secured several asset-light businesses and contracts in China and other countries as it dedicates greater efforts and resources towards balancing asset-light and asset-heavy businesses.
The consortium led by China Everbright recently secured the construction and operation project of the industrial waste water treatment plant in the Huai’an Lianshui New Materials Industrial Park in Jiangsu Province, China.
China Everbright will be responsible for providing operation and management services for a period of five years, with the option to renew for an additional three years upon expiry. With a total designed daily industrial waste water treatment capacity of 10,000 m3, Lianshui New Materials Industrial Park Plant will be constructed in two phases, each of which has a designed daily treatment capacity of 5,000 m3.
The project marks the company’s third project in the Lianshui market, promoting resource sharing and innovation in technology and operation while improving the overall service efficiency and operational effectiveness of its existing projects in Lianshui to lay a foundation for further business deployment in the local market.
Separately, China Everbright has also been actively exploring market opportunities in response to China’s Belt and Road Initiative (BRI). Following the implementation of several asset-light businesses in countries such as Mauritius and Indonesia through its joint venture company or subsidiaries based on different models, including operation and management and provision of technical services and technological processes, Everbright Water has further made breakthroughs in the African and Middle East markets with asset-light business.
Through its 80%-owned subsidiary, China Everbright has signed an equipment supply service agreement for the Tanzania Oilfield Waste Water Treatment Project and a technological process service agreement for the Abu Dhabi Paper Mill Waste Water Recycling Project.
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Both contracts amounted to a total contract value of US$2.2 million ($2.9 million), with their successful implementation set to contributing to the development of the company’s overseas business expansion and service capabilities, as well as its effort to support China’s green BRI development.
In recent years, China Everbright says it has been actively promoting the balance between its asset-light and asset-heavy businesses by dedicating more efforts towards expanding its asset-light businesses in various aspects such as business models, areas and synergies.
In the first half of 2023 alone, the company implemented asset-light businesses with a contract value exceeding RMB1 billion ($190 million), nearly doubling the total contract value of asset-light businesses in the entire year of 2022.
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Moving forward, China Everbright says it will continue to expand its asset-light business, delving deeper into the development of the business model through technology and services, while consolidating its position and strengths in traditional business areas.
Shares in China Everbright closed 0.5 cents higher or 2.38% up at 21.5 cents on Jan 15.
