Hunan Junxin Environmental Protection Co., Ltd. (301109.SZ), known as Junxin Environmental Protection, has submitted its third application to list on the Main Board of the Hong Kong Stock Exchange, according to a filing dated August 13. CICC and CITIC Securities are acting as joint sponsors. The company previously filed listing applications on August 13, 2025, and February 13, 2026.

Where to begin

According to the prospectus, Junxin Environmental Protection provides comprehensive waste treatment and resource utilization solutions, including investment, management, and operation of green energy projects. Based on Frost & Sullivan data, the Changsha Environmental Protection Industrial Park, where the company primarily operates, is one of China's largest comprehensive eco-industrial parks in the industry when measured by project scale. This scale is primarily determined by designed waste treatment capacity, a common industry metric for evaluating integrated parks and individual treatment facilities. As of the latest practicable date, the company operates multiple projects, including those related to clean waste incineration for power generation and integrated treatment of various waste types.

During the track record period, the company's core business includes: (i) clean waste incineration for power generation; (ii) integrated treatment of multiple waste types, including sludge, sewage, leachate, and fly ash; (iii) transfer, compression, and transport of household waste; and (iv) collection, harmless treatment, and resource utilization of kitchen waste.

Specifically, for clean waste incineration for power generation: The company operates through its Changsha waste incineration projects (Phase I and II), the Liuyang project, the Pingjiang project, and the Bishkek project (Phase I). For the years ended December 31, 2023, 2024, and 2025, and the three months ended March 31, 2026, these projects processed total household waste volumes of 3.2 million tonnes, 3.2 million tonnes, 3.8 million tonnes, and 1.0 million tonnes, respectively. They generated on-grid electricity of 1.5 billion kWh, 1.5 billion kWh, 1.8 billion kWh, and 0.5 billion kWh, with efficiencies of 452 kWh, 460 kWh, 486 kWh, and 509 kWh per tonne of household waste processed, respectively. As of the latest practicable date, the company's waste incineration projects had a total daily processing capacity of 10,600 tonnes of household waste. Furthermore, according to Frost & Sullivan, Junxin Environmental Protection ranked first in 2025 among all Chinese waste-to-energy companies based on average on-grid electricity per tonne of waste.

For integrated treatment of multiple waste types: In addition to the Changsha incineration project, the Changsha Environmental Protection Industrial Park hosts various waste treatment facilities for sludge, leachate, fly ash, and others. As of the latest practicable date, the park's projects had a total daily processing capacity of 2,700 tonnes of leachate, 1,000 tonnes of sludge, and 215 tonnes of fly ash. The Liuyang fly ash treatment project began operations in May 2026, with a daily capacity of 42 tonnes of solidified material from fly ash chelation and stabilization. Additionally, the Pingjiang project and the Changsha transfer project include sewage treatment facilities.

For household waste transfer, compression, and transport: Through the acquisition of Renhe in November 2024, the company expanded its capabilities to cover most stages of the waste management value chain. The Changsha transfer project, operated by Renhe and subsequently integrated into the group, had a total daily processing capacity of 10,000 tonnes of household waste as of the latest practicable date.

For kitchen waste collection, harmless treatment, and resource utilization: Another project operated by Renhe and integrated into the group since the acquisition is the Changsha kitchen waste project. As of the latest practicable date, this project had a daily processing capacity of 1,200 tonnes of kitchen waste. As a byproduct of the waste utilization process, the oil extraction rate of the Changsha kitchen waste project exceeds 7%, producing 30,000 tonnes of industrial-grade mixed oil annually.

As part of its overseas expansion strategy, Junxin Environmental Protection has been establishing operations in Central Asia. In 2024, the company signed a service concession agreement with local authorities in Kyrgyzstan to develop a green energy project in the capital, Bishkek. Phase I of the Bishkek project commenced operations in December 2025. As of the latest practicable date, Junxin Environmental Protection has signed an investment agreement, followed by a service concession agreement, to develop a green energy and environmental services project in Osh, Kyrgyzstan. It has also signed investment agreements and service concession agreements for two similar projects in the Issyk-Kul region of Kyrgyzstan. To broaden its presence in Central Asia, the company signed a memorandum of understanding in July 2025, an investment agreement in late August 2025, and waste supply and power purchase agreements in April 2026 to develop a similar project in Almaty, Kazakhstan. Furthermore, in April 2026, Junxin Environmental Protection received a notice of winning the bid for the Changsha Hexi waste incineration power plant project, with a planned capacity of 4,000 tonnes per day.

Financial data

Revenue: For the years ended December 31, 2023, 2024, and 2025, and the three months ended March 31, 2026, the company reported revenue of approximately RMB 1.837 billion, RMB 2.411 billion, RMB 2.731 billion, and RMB 736 million, respectively.

Gross profit: For the same periods, gross profit was approximately RMB 940 million, RMB 1.001 billion, RMB 1.503 billion, and RMB 417 million, respectively.

Profit for the year/period: Net profit stood at approximately RMB 653 million, RMB 686 million, RMB 994 million, and RMB 305 million for the respective periods.

Industry overview

Global solid waste generation continues to rise due to population growth and economic development. For household waste, global generation grew from 1,894.1 million tonnes in 2020 to 2,290.0 million tonnes in 2025, and is projected to reach 2,718.6 million tonnes by 2030. Emerging markets, particularly Central Asia, the Middle East, Southeast Asia, and South America, are key drivers of this growth. These regions generally have low household waste collection rates and incineration treatment proportions, with overall disposal capacity and resource utilization levels significantly below the global average. For example, in Central Asia, the waste collection rate does not exceed 50%, and incineration accounts for only 8%, meaning most waste cannot enter formal disposal systems or is not properly treated, posing risks to environmental pollution and public health safety.

China's household waste generation has grown steadily, from 235.1 million tonnes in 2020 to 252.3 million tonnes in 2025. As of the end of 2023, China had 696 operational waste incineration harmless treatment plants. The volume of waste processed at incineration plants has grown rapidly, from 146.1 million tonnes in 2020 to 215.0 million tonnes in 2025, achieving a compound annual growth rate (CAGR) of 8.0%. As urbanization continues, the growth rate of waste processed at incineration power plants in China is expected to stabilize. Meanwhile, soil pollution from historically landfilled waste requires incineration treatment, allowing previously stored waste to be re-processed through harmless incineration, further expanding the market. From 2026 to 2030, the national CAGR for waste processed at incineration power plants is expected to be 2.8%, reaching 246.8 million tonnes by 2030.

Waste-to-energy projects typically generate profits through on-grid electricity sales and waste disposal fees. Although standards vary by region, these provide a stable and sustainable source of cash flow for incineration companies. The market size of China's waste-to-energy sector grew from RMB 37.1 billion in 2020 to RMB 53.4 billion in 2025, achieving a CAGR of 7.5%. Driven by steady growth in waste intake and diversification of revenue models, the market size is expected to grow at a CAGR of 2.6% from 2026 to 2030, reaching RMB 60.8 billion by 2030.

Board of directors

The board currently consists of 11 directors: five executive directors, two non-executive directors, and four independent non-executive directors. The board is responsible for the management and operation of the group's business and holds general authority.

Equity structure

Mr. Dai Daoguo, Ms. Li Xiaochun, Junxin Group, and Daoxin Investment constitute a group of controlling shareholders of Junxin Environmental Protection. Ms. Li is Mr. Dai's mother-in-law and has entered into a concert party agreement with Mr. Dai. Mr. Dai is also the executive partner of Daoxin Investment, the company's employee shareholding platform. As of the latest practicable date, the partnership interests in Daoxin Investment were held by Mr. Dai and 29 other limited partners (including group employees, former employees, and a successor of a former employee), holding approximately 20.61% and 79.39%, respectively. No limited partner holds 30% or more of the partnership interests in Daoxin Investment.

Intermediary team

Joint sponsors: China International Capital Corporation Hong Kong Securities Limited; CITIC Securities (Hong Kong) Limited. Company legal advisors: Guohao Law Firm (Hong Kong), Guohao Law Firm (Changsha), GRATA International Law Firm, «Law firm «GRATA» LLP. Legal advisors to joint sponsors: Baker McKenzie, Zhong Lun Law Firm. Reporting accountants and auditors: KPMG. Industry advisor: Frost & Sullivan (Beijing) Co., Ltd. Shanghai Branch. Compliance advisor: Sanberry Finance Limited.