Corporate Updates
04 Apr 2020

Everbright International Holds Teleconference to Coordinate Tasks for Xinhua Waste-to-energy Project in Hunan Province, Alleviating Poverty and Demonstrating Accountability of a State-owned Enterprise

In order to fully utilize advantages of China Everbright International Limited ("Everbright International" or the "Company") in poverty alleviation to support local industries, and to implement the national target of eradicating poverty, Mr. Wang Tianyi, CEO of Everbright International, recently held a teleconference to coordinate tasks for the Company's Xinhua Waste-to-Energy Project ("Xinhua Project"). During the meeting, the management of the Company discussed construction work of the project and relevant poverty alleviation initiatives to support local industries in Xinhua County. Mr. Hu Yanguo and Ms. Li Chunju, Deputy General Managers of Everbright International, also joined the teleconference.

As a key poverty alleviation project supported by China Everbright Group ("Everbright Group") and a featured project of Everbright International for poverty relief to support the local industries, Xinhua Project commands a total investment of RMB588 million. Upon completion of construction work and commencement of project operation, the project is expected to process a nearly 300,000 tonnes of waste per annum. As of now, an aggregate of RMB104 million has been invested in Xinhua Project, which is expected to receive approximately RMB289 million in investment by the end of 2020. The construction commencement of Xinhua Project will facilitate the local economic development and help alleviate poverty problem by providing local residents job opportunities. Meanwhile, the project is expected to improve the local living conditions, and to provide a healthy and safe environment for the local community. Therefore, Xinhua Project has a dual effect in terms of poverty relief, as well as pollution prevention and control.

Due to the impact of the coronavirus pandemic, the construction progress of Xinhua Project was behind schedule. In order to ensure the project commences operation soon so as to benefit the local government authorities and residents, the project construction team boosted the team scale, construction materials and relevant equipment, as well as adopting measures like optimisation of construction plans and working schedules. The project construction team, by following relevant safety and regulatory requirements, speeded up with the construction progress and eventually managed to shorten the overall construction period by two months. As a result, the main body of Xinhua Project is expected to be completed before the end of 2020, which would help the Company to fulfil its goal of eradicating poverty within the year.

During the teleconference, Mr. Wang Tianyi pointed out that Everbright Group pays great attention to Xinhua Project. Mr. Li Xiaopeng, Chairman of Everbright Group; Mr. Wu Lijun, General Manager; Mr. Zhu Hongbo, Chairman of the Board of Supervisors; and Mr. Cai Yunge, Chairman of the Board of Everbright International all have expressed their expectations and requirements for the development of Xinhua Project. As a backbone enterprise of Everbright Group, the Company should fully recognise its responsibility of poverty alleviation, decisively implement relevant accurate poverty alleviation requirements set by the Communist Party of China and the country, and accomplish the poverty relief tasks assigned by Everbright Group.

Mr. Wang Tianyi emphasised that the Chinese central government is determined and confident in winning the battle against the epidemic, as the epidemic outbreak has been gradually under control and the central government has been firmly carrying out work relating to work resumption and poverty relief. Everbright International will strive to tackle all difficulties and enhance its constriction proficiency, in order to achieve the commencement of Xinhua Project's operation as soon as possible. With such a goal, the Company should develop the project with high quality and standards; fulfil its social responsibility, by proactively participating in initiatives that benefit the local government authorities and residents, such as the construction of local schools and poverty relief for the vulnerable groups; and facilitate the development of a local waste collection and transportation system, to ensure sufficient waste supply when the project construction is completed. All departments of Everbright International should work together, coordinate with each other and carry out work in an orderly manner, so as to make sure Xinhua Project will complete construction and commence operation soon to play an effective role locally.

For the long-term, Everbright International has been actively carrying out poverty alleviation initiatives in the areas of consumption, education and for specific groups, to develop synergy with poverty alleviation work to support the local industries. In 2019, as part of Everbright Group's plan, the Company donated for Caojia Town in Xinhua County, Hunan Province to construct a village road, named with "Everbright Heart-to-Heart Road"; constructed infrastructures for two local schools; and transformed the local restrooms into eco-themed ones. All of these have been well recognised and supported by the local residents. The Company has also been striving to activate the local economic dynamism and efficiency in poverty-stricken areas of the county, by developing partnerships on the supply of fruit, vegetable and other daily necessities with the underprivileged residents and enterprises. Meanwhile, Everbright International has partnered other subsidiaries of Everbright Group to form a poverty alleviation matrix, which continues to divert "running water" for local poverty alleviation works, fully leveraging the competitive edges of Everbright Group and Everbright International to benefit the local government and people.

Riding on the corporate mission of "Devoted to Ecology and Environment for a Beautiful China" and the corporate pursuit of "Creating Better Investment Value and Undertaking More Social Responsibility", Everbright International will continue to make good use of its advantages in the environmental protection industry. It will safely resume operations and production, helping to alleviate poverty and aiming to dedicate its strength to the battle against poverty.

Supplementary information:

Xinhua County, a county in Loudi City, is located in the west of Hunan Province, situated at the southeast foot of Xuefeng Mountain and the middle stream of the Zishui River. Its total jurisdictional area reaches 3,636 km3, including 31 counties (including subdistricts and fields), 687 administrative villages (including working areas and communities), with a population of approximately 1.54 million. The county is a national key eco-functional area, revolutionary area, key county of national poverty alleviation work, founding unit for the national pilot program on the integrated development of rural primary, secondary and tertiary industries, and founding unit for the national tourism demonstration program. Xinhua is a big county of Hunan Province in terms of land, population and agriculture. It is also a county assigned to Everbright Group for poverty alleviation at national level.

Xinhua Project will be invested in and constructed based on a PPP (Public-Private Partnership) model. The project has a concession period of 30 years (inclusive of the construction period), with a designed daily waste processing capacity of 1,050 tonnes. It will be constructed in two phases. Phase I of the project is designed with a daily waste processing capacity of 700 tonnes, with an investment of approximately RMB588 million. It will be equipped with two 350 tonnes/day mechanical grate furnaces and a 15 MW turbine power generator, in addition to auxiliary equipment. Its gas emissions fully comply with the Euro 2010 Standard and it is expected to generate approximately 69,000,000 kWh of green electricity annually. After Xinhua Project commences operation, Xinhua county is expected to achieve harmless treatment, reduction and reuse of household waste across the county.