EB Environment Anchors RMB 2.25 Billion BOOT Waste-to-Energy Project in Dongguan, Secures 79.5% Stake in New JV

EB Environment (Stock Code: 00257) disclosed that on 23 October 2026 its wholly-owned subsidiary Everbright Environmental Protection (China) Limited (EEP China), together with China Construction Third Engineering Bureau Group (CSCEC Third Engineering) and Guangzhou WeTech, signed a Preliminary Concession Agreement with Dongguan City Appearance and Environmental Sanitation Center for the Dongguan Southeast Environmental Energy Project.

The project will adopt a build-own-operate-transfer (BOOT) structure over a 31-year concession (including up to 27 months for construction). Located in Dongguan, the facilities are designed to process 3,000 tonnes per day of municipal solid waste (MSW) and 500 tonnes per day of kitchen waste. Phase I covers all MSW capacity plus 300 tonnes per day of kitchen waste; Phase II will add the remaining 200 tonnes per day of kitchen waste treatment.

Phase I requires a total investment of RMB 2.25 billion (HKD 2.63 billion). The project company will be capitalised at RMB 0.68 billion, representing 30% of Phase I investment, with the balance funded through bank financing and shareholder loans. EEP China will inject RMB 0.54 billion for a 79.5% equity interest, while CSCEC Third Engineering and Guangzhou WeTech will contribute RMB 135.12 million (20.0%) and RMB 3.38 million (0.5%), respectively. The project company will be consolidated as a subsidiary of EB Environment.

Revenue streams during the concession will include MSW treatment fees, kitchen waste treatment fees, on-grid tariff income from waste-to-energy generation, and proceeds from resource-utilisation products.

To secure performance, the consortium or project company will provide three bank guarantees: RMB 60 million for the construction phase, RMB 20 million for operations, and RMB 60 million for the transfer phase.

EB Environment expects the initiative to reinforce its position in Guangdong Province and the Greater Bay Area and broaden its integrated environmental services portfolio. Under Hong Kong Listing Rule 14.07, the transaction’s highest applicable percentage ratio exceeds 5% but is below 25%, classifying it as a discloseable transaction that requires public announcement but not shareholder approval.