Environmental Service Company's IPO Application Accepted, But Questions Remain Over Two Projects' Handling Capacities
Authorized by "China Business"
Author: 尹 燃
On June 25, 2024, Guangdong Environmental Services Co., Ltd. (hereinafter referred to as "Environmental Service Company") submitted its IPO application to the Northbound Market, and by May 19, 2025, it had completed three rounds of inquiries. The underwriter for this IPO was Dongguan Securities, and the auditor was Henan Law Firm.
Following the acceptance of Environmental Service Company's IPO application, attention has been drawn to its fully utilized funds, with nearly seven-tenths of its net profits coming from investment returns, research and development expenditures, etc. This article delves into the company's reported materials and finds that it still has some issues that need explanation.
Two Projects' Handling Capacities Remain Unclear
As a long-term player in the waste incineration power generation, refuse processing and resource utilization industries, Environmental Service Company reported that during its reporting period (2021-2023), it provided various types of harmless treatment and resource utilization solutions to government agencies, enterprises, and other customers. The company also sold the processed resources to grid companies, etc.
During the reporting period, Environmental Service Company's revenue was RMB 51,512.78 million, RMB 81,295.76 million, and RMB 98,250.15 million, with year-on-year growth rates of 57.82%, 20.86%. The main sources of income were the municipal solid waste comprehensive services, industrial waste comprehensive services, and urban environmental comprehensive services.
However, it is worth noting that the company's main projects currently in operation have two projects with design handling capacity data discrepancies compared to those disclosed by the controlling shareholder and government official records.
Environmental Service Company has three main projects: waste incineration power generation and heat supply, refuse processing and resource utilization, hazardous waste harmless treatment (part of which is in construction), landfill leachate concentrated treatment project, urban environmental and public services operation, and landfill governance and site remediation.
The Maoshan garbage processing plant phase one and two (waste incineration project) are also known as the Maoshan garbage processing plant waste incineration project. They produce electricity and heat, while phase three is a catering waste processing and resource utilization project with products classified into catering waste processing and resource utilization. The operating address of this project is located at the Maoshan Catering Waste Processing Plant.
According to Environmental Service Company's prospectus (signature date June 21, 2024), the company mainly provides industrial waste comprehensive services, including hazardous waste harmless treatment (part of which is in construction) and plans to build a project that can handle 26 categories of hazardous waste per year, totaling 31.61 million tons.
However, according to the Guangzhou Ecological Environment Bureau's official website published on August 8, 2024, based on an article titled "Exploring the Maoshan Resource Circular Utilization Base," it was reported that the current annual processing capacity of the Maoshan Resource Circular Utilization Base is 20 million tons of solid waste. Within this capacity, 38 categories of hazardous waste are processed annually, totaling 33.459 million tons, which exceeds the data disclosed in the prospectus by 1.849 million tons and handles 12 more categories.