Guangdong Shunkong Development Co., Ltd.

Guangdong Shunkong Development Co., Ltd. is a company listed on the Main Board of the Shenzhen Stock Exchange, specializing in the electric power, heat, gas, and water production and supply sector. Established in 2021, the company focuses on providing comprehensive water services, solid waste treatment, and packaging and printing solutions. Its operations are primarily based in Shunde District, Foshan City, where it serves a large population and engages in various environmental and engineering projects. The company's main business lines include a full industrial chain of water supply services, which encompasses water intake, production, transmission, and supply to end-users. It operates multiple waterworks with significant daily supply capacities and manages sewage treatment facilities under various operational models. Additionally, Shunkong is involved in solid waste treatment, managing several waste incineration projects and expanding its services to waste collection and resource utilization. Its packaging and printing business offers customized solutions across various industries, supported by a robust management system and technological advancements. The company benefits from its strategic location in a key manufacturing hub, enhancing its competitive position in the market.

1. Operational and Management Advantages After years of development, the Company has established a sound management system and boasts strong capabilities in investment, operation and management across water services, solid waste treatment, green packaging and printing and other business segments, including but not limited to the following: ① In accordance with relevant standards formulated by the International Organization for Standardization (ISO), the Company and its major subsidiaries have built comprehensive management systems and obtained certifications including ISO 9001 Quality Management System, ISO 14001 Environmental Management System and ISO 45001 Occupational Health and Safety Management System. ② The Company vigorously promotes informatization and automation in production management, and has developed dedicated production monitoring and management information systems tailored to different business lines. It commits to the continuous optimization of production and operation management, and leverages technology to boost production efficiency. By scaling up patent reserves, advancing technological upgrading and strengthening talent cultivation, the Company steadily enhances its hard power and soft power. Several subsidiaries have been recognized as High-tech Enterprises, Guangdong Specialized, Refined, Differential and Innovative Enterprises or provincial and municipal innovative SMEs. ③ The Shunde Project invested, constructed and operated by the Company integrates a domestic waste incineration system, sludge drying system and kitchen waste treatment system within a single main workshop. It realizes resource sharing and efficient collaborative operation and management of the three major systems. The project has been awarded the AAA grade in the harmlessness assessment of Guangdong Province, with its operation management level and emission indicators reaching advanced industry standards. ④ HuaXin (Foshan) Color Printing Co., Ltd., a subsidiary of the Company, has passed the certifications of ISO 9001, ISO 14001 and ISO 45001. It has established the G7 standardized printing management system and ISO 5001 Energy Management System, and been accredited as a national-level Green Factory, ensuring product quality and sustainable development. It owns three major production clusters of offset printing, flexographic printing and gravure printing to provide differentiated production services for diversified orders and customers. For consecutive years, Huaxin Color Printing has been listed in the Top 50 Label Printing & Packaging Enterprises in China, Top 100 Packaging Enterprises in China and Top 10 Leading Enterprises in the Label Printing Industry. 2. Regional Competitive Advantages and High-quality Customer Resources The Company’s water services and solid waste treatment businesses are mainly rooted in Shunde District, Foshan City. Located in the hinterland of the Pearl River Delta, Shunde District has a permanent population of over 3.2 million. As an economically robust manufacturing hub, Shunde is one of the country’s largest production bases for air conditioners, refrigerators, water heaters and disinfection cabinets, reputed as the Capital of China’s Home Appliances, Capital of China’s Gas Appliances and Hometown of China’s Coatings. In accordance with local plans such as the 14th Five-Year Plan for National Economic and Social Development of Shunde District, Foshan City and the Long-Range Objectives Through the Year 2035, Shunde will further integrate people, city, industry and culture, and build a more livable and business-friendly city through opening-up and cooperation, coordinated development, industrial structure optimization, increased R&D investment, innovation-driven development, ecological environment improvement and new urbanization construction. The formulation and gradual implementation of such plans provide solid support for the consolidation and further expansion of the Company’s businesses. Through mergers and acquisitions, the Company has expanded its business footprint to Hebei Province and Anhui Province. Benefiting from profound industry accumulation, the Company’s green packaging business has formed a mature operation and management system and advanced manufacturing platforms after years of development. Adhering to technology-driven development, the Company continuously improves R&D and innovation capabilities and practices the concept of green development. Rooted in the Greater Bay Area and radiating nationwide and overseas markets, it has accumulated a large number of high-quality domestic and international customers. 3. Comprehensive Service Advantages Upholding the core philosophy of “For the Environment, for People’s Livelihood, for the Future”, the Company has long been deeply engaged in the environmental protection industry. Its business portfolio covers integrated water services, comprehensive solid waste treatment, green packaging and printing, municipal and environmental engineering construction, environmental testing and environmental consulting. Driven by dual engines of resource integration and technological innovation, and drawing on rich experience in high-quality benchmark projects, the Company provides eco-environmental service solutions for urban upgrading, as well as eco-friendly, cost-effective and customized one-stop packaging solutions for clients, with outstanding comprehensive service capabilities.