Core Viewpoint - The company, Everbright Environment (00257), has received a notice of acceptance for the proposed issuance of asset-backed notes with a total registered principal amount of RMB 4 billion, valid for two years from the date of acceptance [1] Group 1 - Everbright Environment's wholly-owned subsidiary, Everbright Environmental China, is the entity that received the acceptance notice from the interbank market dealers association [1] - The registered principal amount of the proposed asset-backed notes is set at RMB 4 billion [1] - The validity period for the registered principal amount begins from the date of the acceptance notice, which is November 28, 2025, and lasts for two years [1]

Core Viewpoint - Everbright Environment (00257) has received a registration notice from the Interbank Market Dealers Association regarding the proposed issuance of asset-backed notes, with a total registered principal amount of RMB 4 billion [1] Group 1 - The total registered principal amount for the proposed asset-backed notes is RMB 4 billion [1] - The validity period for the registration notice is two years from the date of issuance, which is November 28, 2025 [1]

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。 CHINA EVERBRIGHT ENVIRONMENT GROUP LIMITED 中國光大環境（集團）有限公司 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份內容 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。 本公司謹此強調，即使光大環保中國已就建議發行資產支持票據獲得接受註冊通知書， 但本公司股東及潛在投資者務必留意，建議發行資產支持票據不一定會進行。本公司股 東及潛在投資者在買賣本公司證券時務請謹慎行事。 承董事會命 中國光大環境（集團）有限公司 梁妍鈺 （ 於 香 港 註 冊 成 立 之 有 限 公 司 ） （股份代號：257） 有關銀行間交易商協會就於中國建議發行資產支持票據 發出接受註冊通知書的自願性公告 茲提述中國光大環境（集團）有限公司（「本公司」）日期為二零二五年十月十六日的公 告（「該公告」） ...

Industry Overview - The carbon quota allocation mechanism is linked to production output without a total carbon emission cap, focusing on intensity-based dynamic adjustments [1][2] - The allocation mechanism is based on the experience of the power generation industry, implementing free quota distribution based on carbon emission intensity control, with total quotas dynamically associated with industry production levels [2] - New key emission units in the steel, cement, and aluminum smelting industries must complete the first quota clearance for 2024 by 2025 [1][2] Company Tracking - Longking Environmental has seen significant shareholding increases from Zijin Mining, with stable leadership transitions expected to enhance Longking's business [3] - China Water Affairs reported a revenue of HKD 5.183 billion for FY26H1, a decrease of 12.9% year-on-year, with a net profit of HKD 571 million, down 24.4% year-on-year, primarily due to a decline in connection and construction activities [3] - The company has reduced capital expenditures by 31.8% to HKD 1.243 billion in FY26H1, while maintaining a dividend of HKD 0.13 per share, resulting in a dividend yield of 4.8% [3] Solid Waste Sector Insights - The solid waste sector has shown strong fundamentals in Q3 2025, with a 12% increase in net profit and a 2.7 percentage point increase in gross margin [3] - Free cash flow in the solid waste sector reached RMB 13.3 billion in Q1-Q3 2025, a year-on-year increase of 28%, with capital expenditures down 12% [3] - The average waste incineration companies' output per ton increased by 1.8% year-on-year in H1 2025, indicating operational efficiency improvements [3] Water Sector Insights - The water sector is expected to experience a cash flow turnaround, with significant increases in free cash flow anticipated starting in 2026 [4] - Recent water price reforms in major cities like Guangzhou and Shenzhen are expected to enhance revenue and profitability for water companies [5] - Recommended companies in the water sector include Yuehai Investment and Xingrong Environment, with a focus on improving cash flow and dividend payouts [5] Industry Tracking - The sales of new energy sanitation vehicles increased by 61.32% year-on-year in the first ten months of 2025, with a penetration rate of 18.02% [6] - The average price of biodiesel remained stable, while net profits per ton have declined [6] - Lithium carbonate prices have risen, improving profitability in lithium battery recycling [6]

FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 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 | 第 2 頁 共 10 頁 v 1.1.1 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: | 2025年11月30日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結 ...

Investment Rating - The report maintains a "Positive" investment outlook for the public utilities and environmental sectors, particularly in the context of recent regulatory changes and market dynamics [1]. Core Insights - The report highlights the regulatory measures in various provinces aimed at standardizing the retail price differences in electricity sales, which is expected to stabilize market expectations and improve the profitability of electricity sales companies [3][7]. - It notes the fluctuating natural gas prices globally, with U.S. prices rising while European prices are declining, indicating a complex supply-demand landscape influenced by geopolitical factors and seasonal demand [12][22]. - The report provides specific investment recommendations across various segments, including hydropower, thermal power, nuclear power, green energy, and gas-related companies, reflecting a diversified approach to capitalize on emerging opportunities [10][37]. Summary by Sections 1. Electricity: Regulation of Retail Price Differences - Guangdong has issued guidelines to regulate the retail price differences, proposing a sharing mechanism for excess profits above a set threshold starting in 2026 [7]. - Several provinces have introduced detailed policies to manage retail price differences, aiming to prevent excessive profits by electricity sales companies and ensure fair pricing for consumers [8][9]. - The report emphasizes the need for a shift from aggressive pricing strategies to a service-oriented business model for electricity sales companies, which could stabilize market expectations [9]. 2. Natural Gas: Global Price Fluctuations - As of November 28, U.S. Henry Hub spot prices reached $4.59/mmBtu, reflecting an 11.13% weekly increase, while European prices, such as TTF, fell by 5.37% to €28.75/MWh [12][13]. - The report notes that U.S. natural gas demand has surged due to cold weather, despite record production levels, leading to a tightening supply-demand balance [16]. - In Northeast Asia, LNG prices have decreased to $10.90/mmBtu, down 6.52% week-on-week, driven by weak demand and high inventory levels [31][34]. 3. Investment Recommendations - Hydropower: Favorable autumn floods are expected to enhance hydropower generation capacity for the winter and spring, with recommendations for major hydropower companies [10]. - Thermal Power: The diversification of revenue sources in thermal power companies is highlighted, with recommendations for integrated coal and power companies [11]. - Nuclear Power: The report suggests focusing on nuclear power companies due to stable cost structures and expected growth from new approvals [11]. - Green Energy: The introduction of new market rules for renewable energy is expected to stabilize returns for green energy operators [11]. - Gas and Environmental Companies: Recommendations include integrated gas trading companies and environmentally focused firms benefiting from regulatory changes [37].

Summary of the Conference Call for Guangda Environment Company Overview - Guangda Environment plans to return to the A-share market to leverage higher valuation advantages compared to the Hong Kong market, aiming to raise funds through the issuance of up to 11.5% of total shares (maximum of 800 million shares) for project expansion, research investment, and overseas project layout, particularly in Southeast Asia and the Middle East [2][3] Key Points Financial Performance - As of November 2025, the company recorded a free cash flow of 2 billion RMB in the first half of the year, benefiting from strict capital expenditure control, which decreased by over 1 billion RMB year-on-year [2][6] - The company received significant national subsidies in the second half of the year, totaling 32 to 33 billion RMB, far exceeding the previous year's total of 1.9 billion RMB [2][10] Internationalization and Technological Development - The company will focus on internationalization and technological advancement in the coming years, with capital expenditures expected to not exceed 5 billion RMB in 2026-2027, with 30%-40% from overseas projects [2][7] - Research and development efforts are concentrated on four main areas: high-value utilization of biomass, resource utilization of incineration ash, small furnace markets in county regions, and refined resource utilization without residue [2][11] Market Strategy and Operations - The company’s heating business, which began in 2019, aims to reach a total heating volume of 6 million tons by 2024, expanding its customer base in the environmental energy sector [4][15] - The green environmental sector showed good profit recovery in the first half of the year, with expectations for stability in the second half [4][17] Leadership and Management Changes - The new chairman emphasizes execution and has initiated a second entrepreneurial phase, promoting young talent and establishing new departments to enhance receivables management and expand B2B business [4][13] Future Financing and Dividend Plans - Returning to the A-share market is expected to improve financing capabilities, allowing the company to raise more funds with fewer shares, supporting debt repayment, dividends, and overseas expansion [8][14] - Although there are no specific dividend guidelines currently, the management has indicated an increase in absolute dividend amounts following the improvement in free cash flow [12] Challenges and Risk Management - The company faced challenges in the green environmental projects' receivables in the first half of the year, with overall collections being low, but managed to achieve a historical high in free cash flow due to the growth of non-national subsidy businesses [9][10] - The company has implemented refined management practices to enhance profitability, optimizing resource allocation across projects and improving operational efficiency [18] Additional Insights - The company is exploring strategic stock purchase incentives for employees to align management interests with capital market performance [14] - The focus on green methanol and biomass utilization indicates a commitment to sustainable practices and innovation in the energy sector [16]

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2][22]. Core Views - The company plans to issue up to 800 million shares of RMB ordinary shares for listing on the Shenzhen Stock Exchange, which represents 11.52% of the total share capital post-issuance. The funds raised will be used for business development and to supplement working capital [3][4]. - The issuance of A-shares is expected to have a limited dilution effect, and the company has sufficient free cash flow to maintain its dividend per share (DPS) [4][18]. - The garbage incineration industry is entering a mature phase, with a slowdown in capacity release. The national capacity for harmless treatment of municipal solid waste has increased to 1.5226 million tons per day, with incineration accounting for 76.08% [4][12]. - The company’s free cash flow has turned positive, reaching HKD 4.416 billion in 2024, indicating a shift from expansion to refined operations, which may lead to a revaluation in the secondary market [18][25]. Summary by Sections Share Issuance Impact - The proposed issuance of A-shares is expected to increase the total share capital from 6.143 billion to 6.943 billion shares, with a potential upper limit of 7.063 billion shares if the overallotment is exercised. The total dividend amount is projected to increase by 11.3% to HKD 15.97 billion, or by 14.9% to HKD 16.24 billion considering the overallotment [10][4]. Industry Analysis - The number of new garbage incineration projects has decreased significantly, with only 20 new projects in 2024, a reduction of 35 from 2023. The total investment in these projects is estimated at approximately HKD 5.26 billion, down about 80% from HKD 28.77 billion in 2023 [4][15]. Financial Performance - The company’s net profit for 2025 is projected to be HKD 3.532 billion, with a growth rate of 4.6% for the following years. The current price-to-earnings ratio (PE) is estimated at 8.7x for 2025, indicating potential for valuation recovery [22][25]. - The company has maintained a consistent dividend policy, with a projected DPS of HKD 0.23 for 2025, reflecting a commitment to returning value to shareholders [25][22]. Valuation Comparison - The current PE ratio of the company’s H-shares is 9.8x, significantly lower than the average issuance PE of over 20x for A-share listed garbage incineration companies, suggesting room for valuation improvement [18][22].

Investment Rating - The report maintains a "Positive" investment rating for the industry [13]. Core Insights - The Indonesian waste incineration market is set to begin construction in Q1 2026, with potential revenue recognition in the same year. The market is expected to generate annual operational revenue of approximately 29.4 to 36.5 billion yuan [2][58]. - The high calorific value of Indonesian waste, influenced by its composition, is projected to yield higher profitability and cash flow compared to domestic projects. The average electricity generation per ton of waste is estimated at 539 kWh, with revenue per ton of waste ranging from 612 to 758 yuan [2][9][51]. Summary by Sections Market Demand - Indonesia faces a pressing waste management crisis, with over 60% of waste improperly disposed of. In 2023, the country generated 56.63 million tons of waste, with only 39.01% managed properly, leading to significant environmental and public health concerns [6][18]. - The economic conditions in Indonesia, including a GDP per capita of approximately 4,925 USD in 2024, urbanization rate of 59.2%, and a population growth CAGR of 0.8% over the past five years, support the feasibility of widespread waste incineration [6][33]. Government Initiatives - The Indonesian presidential decree (2025 No. 109) was issued to streamline the waste incineration project process, with the first projects expected to start construction in Q1 2026. The decree outlines responsibilities for various stakeholders, including the sovereign investment fund and local governments [7][30][34]. Project Quality - The calorific value of Indonesian waste is significantly higher than that of domestic waste, with typical urban waste calorific values of 8.6 MJ/kg compared to 5.34 MJ/kg in China. This difference is attributed to the composition of waste, including a lower proportion of moisture-rich food waste and a higher proportion of combustible materials [8][38]. - The average electricity generation per ton of waste is estimated to be between 482 and 597 kWh, which is higher than the average in China [9][47]. Financial Projections - The revenue structure for Indonesian waste incineration projects will primarily consist of electricity sales, with a fixed price of 0.2 USD per kWh. This contrasts with domestic projects, which often include waste disposal fees that can delay cash flow [10][55]. - The projected annual operational revenue for the Indonesian waste incineration market could reach between 29.4 billion and 36.5 billion yuan, assuming an 85% penetration rate of waste incineration [51][58]. Investment Recommendations - The report recommends leading companies with established positions in the Indonesian market, such as Weiming Environmental, China Everbright International, and others, to capitalize on the emerging opportunities [11][58].

Investment Rating - The report maintains a positive outlook on the power and gas sectors, recommending various companies within these industries based on their performance and market conditions [2]. Core Insights - The report highlights a significant increase in electricity consumption in October, with a year-on-year growth of 10.4%, driven primarily by the tertiary sector and residential usage [5][10]. - Natural gas prices exhibit mixed trends globally, with U.S. prices rising while European prices are stabilizing [22][30]. - The report provides specific investment recommendations across various segments, including hydropower, green energy, nuclear power, thermal power, and gas [20][21]. Summary by Sections 1. Electricity Sector - In October, total electricity consumption reached 857.2 billion kWh, marking a 10.4% increase year-on-year. The first, second, and third industries, along with residential consumption, saw growth rates of 13.2%, 6.2%, 17.1%, and 23.9%, respectively [12][10]. - The tertiary sector's electricity consumption grew the fastest, particularly in internet data services related to big data and AI, which surged by 46% [11]. - The report notes that the second industry contributes over 60% of total electricity consumption, with high-tech and equipment manufacturing showing significant growth [11][12]. 2. Gas Sector - As of November 21, U.S. Henry Hub spot prices were $4.13/mmBtu, reflecting an 18.33% weekly increase, while European gas prices showed slight declines [22][30]. - The report indicates that U.S. natural gas supply remains robust, with a notable increase in LNG demand, contributing to rising prices [24][25]. - Recommendations include focusing on integrated gas companies and those benefiting from cost reductions and increased sales, such as Kunlun Energy and New Hope Energy [44]. 3. Weekly Market Review - The report notes that the public utility, gas, and power equipment sectors underperformed compared to the Shanghai and Shenzhen 300 index during the week of November 17 to November 21 [47]. 4. Company and Industry Dynamics - The report discusses the commissioning of China's highest-altitude wind power project in Tibet, which is expected to provide significant clean energy and economic benefits to the local community [50][53]. - It also highlights various local government initiatives aimed at promoting green electricity and renewable energy projects, including direct connections for green electricity [54][55].