Summary of Conference Call on Waste Management Industry in Southeast Asia Industry Overview - The Southeast Asian waste management market is experiencing significant demand growth, with a restructuring of the market currently underway [1] - The region faces a continuous increase in waste generation coupled with insufficient end-processing capacity, particularly in incineration rates [1] Key Insights - Chinese companies have accelerated their overseas expansion starting in 2023, leveraging cost and engineering capabilities to rapidly increase market share in Southeast Asia [2] - High electricity prices and disposal fees are enhancing profitability, although operational and policy risks must be monitored [2] - Under the assumption of a unified scale of 1,000 tons per day, optimistic scenarios suggest that project revenues in Southeast Asia could be approximately 1.8 to 2.7 times that of domestic projects, with profits ranging from 2 to 5 times domestic levels, and net profit margins potentially exceeding 25% [2] Financial Performance and Outlook - As overseas projects come online, international business is expected to become a core engine for smoothing domestic cycles and enhancing company performance [3] - The high returns in overseas markets also imply a more complex operational environment and policy negotiations, necessitating improved local management, risk hedging, and comprehensive operational capabilities [3] - The industry is witnessing a cash flow turning point, with over 90% of companies increasing dividend payouts due to robust cash flow [3] - Average waste disposal volume, power generation, and grid-connected electricity are projected to grow by 8%, 7%, and 8% year-on-year, respectively, in the first half of 2025 [3] - The industry is entering a capital expenditure contraction phase, with the proportion of under-construction capacity dropping below 10%, leading to a decline in financial costs and substantial cash flow improvement [3] Strategic Recommendations - Recommended companies to watch include: 1. Operators: Weiming Environmental, Junxin Co., China Everbright Environment, Hanlan Environment, China Tianying, Zhongke Environmental, Wangneng Environment, Green Power, etc. [4] 2. Equipment/Engineering Output: Sanfeng Environment [4] - Short-term strategies include heat transformation and collaborative disposal to extract existing profits, while long-term strategies focus on overseas contributions to performance elasticity and exploring new green energy monetization paths such as zero-carbon parks and integrated electricity solutions [3]

Investment Rating - The report maintains a positive outlook on the carbon trading market and related sectors, indicating a favorable investment environment for companies involved in power generation and environmental protection [2][9]. Core Insights - The carbon market in China is expanding, with a cumulative trading volume of 865 million tons and a total transaction value of 57.663 billion yuan as of December 31, 2025. The trading volume for the year increased by approximately 24% year-on-year, although the average transaction price fell by 19.23% to 62.36 yuan per ton [2][6]. - The report highlights the government's commitment to carbon reduction, transitioning from energy control to carbon control, which is expected to create investment opportunities in the environmental sector [9]. - Natural gas prices have decreased due to a combination of supply-demand dynamics and seasonal factors, with significant price drops observed in various markets, including a 39.20% decrease in the Henry Hub spot price [2][12]. Summary by Sections 1. Power Sector - The carbon trading market is projected to continue expanding, with key emission units increasing awareness of carbon reduction. The number of units under management reached 3,378, with significant representation from the power, steel, cement, and aluminum industries [2][6]. - Recommendations for investment include companies with stable revenue sources such as Guodian Power, Inner Mongolia Huadian, and China Huaneng, which benefit from diversified income streams [9][11]. 2. Natural Gas Sector - Natural gas prices have seen a significant decline, with the Henry Hub spot price at $4.37/mmBtu, reflecting a 39.20% week-on-week drop. The report notes that the supply-demand balance is improving, contributing to this price decrease [2][12]. - Investment recommendations include companies like Kunlun Energy and New Hope Energy, which are expected to benefit from lower upstream resource costs and improved sales volumes [34][35]. 3. Market Performance Review - The report indicates that the power equipment and gas sectors outperformed the broader market during the review period from February 2 to February 6, 2026 [37]. 4. Company and Industry Dynamics - Recent regulatory updates include the National Development and Reform Commission's notification on improving the capacity pricing mechanism for coal and gas power generation, which aims to enhance revenue recovery for power plants [39][40]. - Key company announcements include performance forecasts from major players like Datang Power and Shanghai Electric, indicating significant year-on-year profit growth [41]. 5. Valuation Tables - The report provides valuation metrics for key companies in the utility sector, with several companies rated as "Buy," indicating strong growth potential and favorable market conditions [43][44].

Core Viewpoint - The company, Everbright Environment (00257.HK), has successfully issued its first tranche of medium-term notes for 2026, raising a total of RMB 2 billion at an annual interest rate of 2.15% [1] Group 1 - The issuance of the medium-term notes took place on February 4, 2026, in China [1] - The actual funds raised from the issuance, after deducting underwriting fees, are intended to be used entirely for repaying the company's medium-term notes within China [1]

Core Viewpoint - The company, Everbright Environment (00257), has successfully issued its first tranche of medium-term notes for 2026 in China, raising a total of 2 billion RMB at an interest rate of 2.15% with a maturity of 3+N years [1] Group 1 - The total amount raised from the issuance of the medium-term notes is 2 billion RMB [1] - The coupon rate for the medium-term notes is set at an annual interest rate of 2.15% [1] - The funds raised will be used entirely to repay the company's medium-term notes in China after deducting underwriting fees [1]

Group 1 - The company, Everbright Environment (00257), announced the issuance of the first phase of medium-term notes for 2026, with a total amount of RMB 2 billion and an annual interest rate of 2.15% [1] - The maturity period of the notes is set for 3 years, with the option for the company to redeem them according to the issuance terms [1] - The actual funds raised from the issuance, after deducting underwriting fees, will be used entirely to repay the company's medium-term notes in China [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 本公告僅供參考用途，並不構成收購、購買或認購證券之邀請或要約，亦不邀請任何該 等要約或邀請。尤其本公告並不構成亦並非在香港、美國或其他地方進行證券銷售或邀 請或招攬購買或認購證券之要約。 有關完成發行二零二六年度第一期 中期票據及承銷協議之自願性公告 完成發行二零二六年度第一期中期票據 茲提述(i)中國光大環境（集團）有限公司（「本公司」）日期為二零二五年十一月十八日的 公告，內容有關向交易商協會申請註冊及發行規模不超過人民幣150億元的債務融資工 具；及(ii)本公司日期為二零二六年一月八日的公告，內容有關交易商協會就債務融資工 具發出接受註冊通知書（統稱「該等公告」）。除文義另有界定者外，本公告所用詞彙具有 該等公告所界定的相同涵義。 期限： 3+N(3)年（本公司依據發行條款的約定贖回時到期） CHINA EVERBRIGHT ENVIRONMENT GROUP LIMITED 中國光大環境（集團 ...

Investment Rating - The industry investment rating is "Buy" [2] Core Insights - The Southeast Asian waste incineration market is poised for significant growth, with a projected demand for incineration capacity reaching 222,000 tons per day by 2030 and 491,000 tons per day by 2050, representing an investment opportunity exceeding 100 billion [6][15] - The domestic waste incineration market in China has entered a mature phase, with the operational capacity reaching 1.16 million tons per day by the end of 2024, reflecting an 8% year-on-year increase [16][20] - The profitability of waste incineration projects in Southeast Asia is expected to be significantly higher than domestic projects, with potential net profit margins exceeding 25% under optimistic scenarios [6][15] Summary by Sections Domestic Waste Market - The domestic incineration market is relatively saturated, with listed companies' capacity under construction accounting for less than 10% of total operational capacity [16][26] - The business model of waste incineration is resilient, characterized by stable profits and strong cash flow, with a 4.9% year-on-year increase in revenue for the waste incineration sector in Q1-Q3 2025 [28][31] Southeast Asian Waste Incineration Market - Population growth and urbanization are driving waste generation, making incineration the preferred solution for urban management in Southeast Asia [6][15] - The incineration rate in Southeast Asia is expected to accelerate, with significant investment opportunities available [6][15] Profitability and Operational Risks - High electricity prices and disposal fees are enhancing profitability, with revenue from Southeast Asian projects estimated to be 1.8 to 2.7 times that of domestic projects [6][15] - The operational environment in overseas markets presents complexities that require enhanced local management and risk mitigation strategies [6][15] Recommendations - Focus on operators using BOT/BOO models for overseas investments, such as Weiming Environmental, Junxin Co., and China Tianying [6][15] - Consider equipment and engineering firms like Sanfeng Environment that leverage their manufacturing capabilities to enter overseas markets [6][15]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2026年1月31日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名稱: | 中國光大環境(集團)有限公司 (於香港註冊成立之有限公司) | | | 呈交日期: | 2026年2月4日 | | | I. 法定/註冊股本變動 不適用 | | | FF301 FF301 II. 已發行股份及/或庫存股份變動及足夠公眾持股量的確認 1. 股份分類 普通股 股份類別 不適用 於香港聯交所上市 (註1) 是 證券代號 (如上市) 00257 說明 已發行股份（不包括庫存股份）數目 庫存股份數目 已發行股份總數 上月底結存 6,142,975,292 0 6,142,975,292 增加 / 減少 (-) 0 0 本月底結存 6,142,975,292 0 6,142,975,292 足夠公眾持股量的確認(註4) | 根據《主板上市規則》第13.32D(1)條或第19A.28D(1)條 / 《GEM上市規則》第17.37D(1)條或第25.21D(1 ...

Group 1 - The State Intellectual Property Office of China has granted a patent to Everbright Environmental Technology (China) Co., Ltd., Everbright Environmental Technology Research Institute (Shenzhen) Co., Ltd., and Everbright Environmental Technology Research Institute (Nanjing) Co., Ltd. for a method of predicting the distribution of syngas products from a biomass updraft fixed bed gasifier, with the authorization announcement number CN116525020B and application date of March 2023 [1] - Everbright Environmental Technology (China) Co., Ltd. was established in 2016 in Nanjing, focusing on research and experimental development, with a registered capital of 37.701 million USD. The company has invested in 5 enterprises, participated in 1,394 bidding projects, holds 1,114 patents, and has 17 administrative licenses [1] - Everbright Environmental Technology Research Institute (Shenzhen) Co., Ltd. was founded in 2014 in Shenzhen, also focusing on research and experimental development, with a registered capital of 20 million RMB. The institute has participated in 43 bidding projects, holds 800 patents, and has 9 administrative licenses [1] - Everbright Environmental Technology Research Institute (Nanjing) Co., Ltd. was established in 2016 in Nanjing, with a registered capital of 20 million RMB. The institute has participated in 21 bidding projects, holds 867 patents, and has 9 administrative licenses [2]

Investment Rating - The report provides a positive outlook on the electricity and natural gas sectors, highlighting stable revenue mechanisms and growth potential in consumption and pricing [1][10]. Core Insights - The report emphasizes the importance of a refined capacity pricing mechanism for electricity generation, which aims to stabilize revenue and ensure fair compensation for various power sources [4][6]. - It notes that natural gas consumption is expected to grow, supported by favorable weather conditions and improved economic indicators, despite short-term price fluctuations [10][29]. Summary by Sections 1. Electricity: Improved Capacity Pricing Mechanism - The National Development and Reform Commission and the National Energy Administration have issued a notification to enhance the capacity pricing mechanism for electricity generation, addressing mismatches in supply and demand within the new power system [4]. - The new mechanism aims to ensure that different types of power generation, including coal, gas, and new energy sources, receive fair compensation based on their peak supply capabilities [6][7]. - The report highlights that the refined pricing structure will lead to more predictable revenue for power generation companies, reducing volatility in earnings [7]. 2. Natural Gas: Continued Growth in Consumption - The report indicates that the apparent consumption of natural gas in China is projected to grow by 0.1% in 2025, with December consumption reaching 38.57 billion cubic meters, a year-on-year increase of 1.9% [29]. - It notes that the recent cold weather has supported high natural gas prices, with the U.S. Henry Hub spot price at $7.18/mmBtu, while European prices remain elevated due to low inventory levels and geopolitical tensions [10][12]. - The report suggests that the natural gas sector will benefit from a combination of lower costs and improved pricing mechanisms, leading to a recovery in profitability for city gas companies [31]. 3. Investment Recommendations - For coal-fired power, companies like Guodian Power and Inner Mongolia Huadian are recommended due to their stable revenue sources [8]. - Hydropower companies such as Yangtze Power and State Power Investment Corporation are highlighted for their potential to improve profit margins through reduced capital expenditures [8]. - In the nuclear sector, China National Nuclear Power and China General Nuclear Power are suggested for their growth potential as new units are approved [8]. - The report also recommends focusing on integrated natural gas companies like ENN Energy and China Gas Holdings, which are expected to benefit from lower costs and increased sales [31].