The Company’s core business in the environmental field consists of investment in and operation of urban sewage treatment infrastructure. Its sewage treatment business focuses on investment, construction and operation of urban domestic sewage and industrial wastewater treatment plants, which are operated and managed by its subsidiaries Dazhong Jiading Sewage and Jiangsu Dazhong respectively. Currently, the Company operates 9 sewage treatment plants in Shanghai and Jiangsu, with a total treatment capacity of 0.465 million tons/day. Among them, Dazhong Jiading Sewage Treatment Plant has a daily treatment capacity of 0.20 million tons, discharging treated water meeting Level 1 A+, the highest sewage discharge standard in Shanghai; Jiangsu Dazhong’s business covers Yunlong District and Jiawang District, Xuzhou, Jiangsu, Pei County of Pizhou City and Donghai County of Lianyungang, with a total daily treatment capacity of 0.265 million tons. Its sewage treatment business has accounts settled periodically through signing of the concession agreement with local governments after competent authorities of local governments ratify water volume and unit prices, while the treatment process covers sewage collection, physicochemical and biochemical treatment and other steps, ensuring treated water is discharged up to applicable standards.
The core operating entity of its logistics business is Dazhong Logistics, a service company providing integrated solutions to goods transportation, licensed to transport dangerous goods in Shanghai (Category II and III inflammable gases and Category IX miscellaneous dangerous goods and articles) and operating as the largest third-party specialized LPG distribution and logistics company in Shanghai, which provides important additions to the pipelined gas sales business of the Company. Meanwhile, the Company actively expanded into charging station business, with several charging stations already in operation.
Major performance drivers: environmental business: the Company held fast to up-to-standard discharge as its core operational bottom-line, assuring the whole sewage treatment process is stable and compliant with regulations; the Company optimized its energy cost and enhanced its profitability through the “sewage + photovoltaic” model; pushed forward its upgrading and reconstruction projects, actively built a smart water service and asset management system, and optimized its operations through hardware upgrading and digital tools. Logistics business: the Company solidified its traditional business and expanded extended business, reached out into medium and high-end markets and opened up diversified distribution business; established a presence in operation of new energy logistics vehicles, took numerous initiatives to enhance operating effectiveness of charging stations, and set up IT platforms to enable its business promotion; and continuously improved the quality of service.