003039Shunkong DevelopmentSZSE

Guangdong Shunkong Development Co., Ltd.

顺控发展

003039

Shenzhen Stock Exchange

BoardMain Board of Shenzhen Stock Exchange
IndustryWater Production and Supply
ListedMarch 8, 2021
Websitewww.gdskfz.com
IR Emailshunkongfazhan@sina.com
Phone(+86)0757-22317888
Address1901-1905, 20th Floor, Building No. 1, Hengshi Real Estate Plaza, Dehe Community Residents Committee, Daliang Sub-district Office, Shunde District, Foshan City, Guangdong

Company Profile

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.

Full description

The Company’s core businesses cover water services, solid waste treatment, packaging and printing, with supporting services including municipal engineering and environmental installation engineering. During the reporting period, there were no material changes to the Company’s core businesses. 1) Water Services The Company operates a full industrial chain of water supply services, covering water intake, water production, water transmission and end-user water supply. It holds the water supply franchise right for Shunde District, covering all towns and subdistricts within the administrative region of Shunde District, Foshan City. The Company currently invests in and operates 8 waterworks, with a designed daily water supply capacity of 1.608 million cubic meters. It has built a safe water supply system featuring interconnected pipe networks and dual water sources, serving a population of over 3.2 million. Pursuant to franchise agreements and entrusted operation and maintenance agreements, the Company carries out investment and operation of sewage treatment businesses under the BOT model and entrusted operation & maintenance model, and provides entrusted daily operation and maintenance services for sewage treatment plants, drainage pipe networks, lifting pump stations and other supporting facilities. Its service scope covers Daliang Subdistrict, Ronggui Subdistrict, Beijiao Town and Jun’an Town of Shunde District, Foshan City, Guangdong Province, as well as Xingcun Township of Hejian City, Hebei Province. The daily sewage treatment capacity is approximately 333,000 tons, with about 465 kilometers of drainage pipe networks and 45 pump stations. 2) Solid Waste Treatment Business In accordance with franchise agreements, the Company invests in and operates waste incineration power generation projects via the BOT model. At present, the Company invests in and operates three comprehensive domestic waste treatment projects. Among them: the Shunde Project can treat 3,000 tons of domestic waste, 400 tons of sludge from domestic sewage treatment plants and 300 tons of kitchen waste per day; the Hejian Project has a daily treatment capacity of 1,000 tons of domestic waste, 50 tons each of night soil, municipal sludge and kitchen waste, and 500 tons of leachate; the Funan Project in Anhui Province can process 500 tons of domestic waste daily. In recent years, through project acquisition and independent investment, the Company has expanded its business to domestic waste transfer, collection and transportation as well as resource utilization treatment of bulky waste and green waste. Its service coverage includes Chencun Town, Beijiao Town, Ronggui Subdistrict, Lecong Town and Longjiang Town of Shunde District, Foshan City, with a designed daily domestic waste transfer capacity of 2,800 tons. The Company has formed an integrated operation model of “waste collection and transfer + incineration disposal”. The solid waste treatment industrial chain has been further improved, and regional service capabilities have been significantly enhanced. 3) Packaging and Printing Business The Company is engaged in the R&D, design, production and sales of packaging products, and provides customers with environmentally friendly, cost-effective and customized integrated packaging solutions. Its main products include folding color boxes, labels, premium gift boxes, color cartons, composite bags and other packaging products, serving five major industries including condiment, food, pharmaceutical, daily chemical, tobacco and alcohol. Most of its customers are well-known domestic and international brands. During the reporting period, the packaging and printing business was undertaken by its subsidiary HuaXin (Foshan) Color Printing Co., Ltd., with an offset printing capacity of approximately 260 million impressions and a flexo-gravure printing capacity of about 120 million meters. 4) Engineering Business Relying on its water services business, the Company provides supporting engineering services such as municipal engineering and environmental installation engineering. During the reporting period, the Company continuously carried out businesses including secondary water supply projects and pipe network engineering.

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