New Stock News | Junxin Co., Ltd. Files Second Listing Application with HKEX, Ranked First in China's Waste Incineration Power Generation Companies

According to the Hong Kong Stock Exchange disclosure on February 13, Hunan Junxin Environmental Protection Co., Ltd. (referred to as: Junxin Co.) has submitted an application for listing on the Main Board of the Hong Kong Stock Exchange, with China International Capital Corporation and CITIC Securities serving as joint sponsors. This is the company’s second time submitting an application to the Hong Kong Stock Exchange. The prospectus shows that Junxin Co. is a company providing comprehensive waste treatment and resource utilization solutions, including investment, management, and operation of green environmental energy projects. According to Frost & Sullivan, in terms of project scale, the company’s main operations are located in the Changsha Environmental Protection Industrial Park, which is one of the largest comprehensive environmental parks in China among peers.

In 2024, Junxin Co. has signed a service franchise agreement with local authorities in Kyrgyzstan to develop green environmental energy projects in the capital city of Bishkek. Phase one of the Bishkek project was put into operation in December 2025. As of the last feasible date, Junxin Co. has signed an investment agreement followed by a service franchise agreement to develop a green energy and environmental services project in Osh, Kyrgyzstan, and has signed investment agreements for two similar projects around Issyk-Kul Lake in Kyrgyzstan.

To expand its business in Central Asia, Junxin Co. also signed a memorandum of understanding in July 2025 and an investment agreement in late August 2025 to develop similar projects in Almaty, Kazakhstan. Looking ahead, Junxin Co. will continue to explore and seek opportunities in other regions with strong potential, providing its waste comprehensive treatment and resource utilization solutions locally.

In terms of market competition, according to Frost & Sullivan, in 2024, Junxin Co.'s waste incineration power generation project in Changsha ranked fourth nationwide in daily processing capacity among all solid waste incineration projects. Based on the average online electricity generated per ton of waste, Junxin Co. ranked first among all waste incineration power companies in China. Its Changsha transfer station project also ranked first among all waste transfer and transportation projects nationwide, and its kitchen waste project in Changsha ranked third in daily processing capacity among all kitchen waste treatment projects nationwide.

Junxin Co. is committed to maintaining its market leadership position and promoting its financial and operational expansion through the following future strategies: (i) focusing on core businesses, deepening strategic focus, and enhancing green technology capabilities; (ii) expanding its overseas market presence along the Belt and Road; (iii) improving operational efficiency through technological innovation and digital transformation; and (iv) strengthening talent development and organizational resilience.

Revenue

For the years ended December 31, 2022, 2023, and 2024, as well as the nine months ended September 30, 2025, revenue was RMB 1.548 billion, RMB 1.837 billion, RMB 2.411 billion, and RMB 2.115 billion, respectively.

Gross Profit

For the years ended December 31, 2022, 2023, and 2024, and the nine months ended September 30, 2025, gross profit was RMB 865.4 million, RMB 940.1 million, RMB 1,000.7 million, and RMB 1,208.6 million, respectively.

Net Profit

For the years ended December 31, 2022, 2023, and 2024, and the nine months ended September 30, 2025, net profit was RMB 587.5 million, RMB 652.8 million, RMB 686.2 million, and RMB 825.3 million, respectively.

Municipal solid waste is generally divided into five categories: (i) household waste, including recyclables and kitchen waste, treated by incineration and landfilling; (ii) general industrial solid waste, such as slag and waste residues, often processed through resource recovery or safe disposal; (iii) construction waste, managed through recycling and landfilling; (iv) hazardous waste, which poses environmental and health risks and requires special treatment such as incineration or chemical processing; and (v) agricultural waste, including crop residues and manure, which is biodegradable and managed through recycling and harmless treatment. Household waste is the most common type of solid waste in daily life, containing large amounts of combustible components that, after proper sorting, can be converted into fuel for incineration power generation. Kitchen waste contains abundant organic matter and fats, serving as key raw materials for biogas power generation and industrial-grade mixed oil refining. The scale of waste incineration power generation and kitchen waste resource utilization industries is gradually expanding and has become an important part of the green energy sector.

Against the backdrop of increasing waste generation in emerging markets, existing waste treatment capacity is insufficient to meet future development needs, creating a significant market gap. In this context, players in mature markets have accumulated advanced technology and operational experience in areas such as household waste incineration, kitchen waste resource utilization, and sludge co-treatment, establishing standardized output systems covering design, construction, commissioning, and operation for emerging markets. Compared to Western companies that often rely on customized designs and local engineering teams, leading Chinese companies demonstrate higher project efficiency under EPC contracting, BOT/BOO models, especially in emerging markets where fiscal pressure and weak infrastructure are common. Their mature operational capabilities and rapid implementation solutions are more attractive.

China’s household waste generation has maintained steady growth, increasing from 235.1 million tons in 2020 to 260.6 million tons in 2024. By the end of 2023, China operated 696 household waste incineration plants. The amount of waste processed in incineration plants has also grown rapidly, from 146.1 million tons in 2020 to 220.0 million tons in 2024, with a compound annual growth rate of 10.8%.

As urbanization continues, the volume of waste processed by incineration in China is expected to stabilize; meanwhile, the pollution caused by historically landfilled waste needs to be addressed through incineration. Previously stored waste can be reprocessed through harmless incineration, further expanding market space. It is estimated that from 2025 to 2029, the compound annual growth rate of waste incineration power generation processing volume nationwide will reach 7.0%, with total processing volume reaching 308.5 million tons by 2029.

Board of Directors

The board consists of 11 directors, including five executive directors, two non-executive directors, and four independent non-executive directors. The board is responsible for managing and conducting the company’s business and has general authority.

Ownership Structure

The company is firmly controlled by a family led by controlling shareholder Mr. Dai Daoguo. As of the last feasible date, Junxin Group directly holds 45.27% of the company’s shares, Mr. Dai Daoguo directly owns 3.83%, Dao Xin Investment (with Mr. Dai Daoguo as managing partner) holds 1.28%, and other major shareholders include Hunan Renjing with 5.58% and Hunan Renlian with 5.26%.

Intermediary Team

Joint Sponsors: China International Capital Corporation Hong Kong Securities Limited; CITIC Securities (Hong Kong) Limited

Legal Advisors: For Hong Kong law: Guohao Lawyers (Hong Kong); For Chinese law: Guohao Lawyers (Changsha); For Kyrgyzstan law: GRATA International Law Firm

Legal Advisors for Joint Sponsors: For Hong Kong law: Baker McKenzie; For Chinese law: Zhonglun Law Firm

Reporting Accountants and Auditors: KPMG

Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd., Shanghai Branch

Compliance Advisor: Xinbaili Financing Limited