Canvest Environmental Protection Group Company Limited (01381.HK)

The Company is a leading pure play waste-to-energy provider focused on the development, management and operation of Waste-to-energy(“WTE”) plants. Currently, the Company has three WTE plants, namely the Eco-Tech WTE Plant, the Kewei WTE Plant and the China Scivest WTE Plant, all of which are located in Dongguan, Guangdong Province, the PRC. The Company is in the course of developing the Zhanjiang WTE Plant in Zhanjiang of Guangdong Province pursuant to a BOT concession right.

Their WTE plants had a total daily MSW processing capacity of 3,000 tonnes in 2013 and according to the Euromonitor Report, in terms of daily MSW processing capacity for commercial operating WTE plants in 2013: (i) we were the second largest WTE provider in Guangdong Province and the 11th largest WTE provider in the PRC with a market share of approximately 13.0% and 2.0%, respectively; and (ii) out of all non-State-owned background enterprises, we were the largest WTE provider in Guangdong Province and the fourth largest WTE provider in the PRC.

Their WTE plants are operated at a high quality standard, as evidenced by the many accolades and recognitions that they have received. In 2012, Kewei was awarded “Grade AA Innocuous Waste Incineration Plant (AA級無害化焚燒廠)” by the Department of Housing and Urban-Rural Development of Guangdong Province (廣東省住房和城鄉建設廳), the second highest grade in the five-tier grading system. In 2012, only eight out of the 18 WTE plants in Guangdong Province obtained grade AA or above. WTE plants must go through inspection and assessment in three separate stages by the municipal environmental bureau, the provincial housing and urban-rural development authority and an expert group appointed by the Ministry for Housing and Urban-Rural Development (住房和城鄉建設部) before being awarded with a grade. In 2013, their Kewei WTE Plant was also rated by the Guangdong Province Environment and Sanitation Association (廣東省環境衛生協會) as an “Excellent MSW Treatment Project in Guangdong Province” (廣東省城市生活垃圾處理優秀項目). Only four other WTE plants in Guangdong Province achieved this rating or better.

In addition, China Scivest was awarded the ISO 14001 Environment Management System Certificate and ISO 9001Quality Management System Certificate in 2014, both of with had also been awarded to Kewei in 2013. Eco-Tech was awarded the ISO9001 Quality Management System Certificate in 2009.

Going forward, Canvest Environmental Group will expand its waste-to-energy business mainly through developing greenfield projects or pursuing acquisitions.

Canvest Environmental Group will actively pursue business opportunities which are commercially viable and attractive and strive to become a dominant pure play waste to energy provider in the PRC.