01
CITIC Envirotech Ltd.
Annual
Report
2015
CITIC Envirotech Ltd. is a holding company incorporated
in Singapore and has been listed on the Mainboard of the
Singapore Exchange Limited since 22 April 2004. The
Company and its subsidiaries (collectively, the “
Group
”)
was founded by Dr Lin Yucheng and is currently one of the
leading membrane-based water and wastewater treatment
and recycling solutions provider. Its business focus is in the
industrial water and wastewater segment, mainly in chemical,
petrochemical and industrial parks.
Its major shareholders are CITIC Environment Investment Co
Ltd, a wholly-owned subsidiary of CITIC Limited (“
CITIC
”)
and KKR China Water Investment Holdings Ltd (“
KKR
”).
CITIC Limited is the largest conglomerate in China with
businesses covering financial services, resources and energy,
manufacturing, engineering contracting and real estate as
well as others.
KKR is a leading global investment firm that manages
investments across multiple asset classes including private
equity, energy, infrastructure real estate, credit and hedge
funds.
Principal Business Activities
The Group has three primary business divisions: engineering,
procurement and construction (“
EPC
”) division, water
investment division and membrane business division.
Through its EPC division, the Group provides engineering
services which involve the design, fabrication, installation and
commissioning of membrane based water and wastewater
treatment systems. Through its water investment division, the
Group develops, owns and operates water and wastewater
treatment plants in PRC, with stable, long term off-take
arrangements. Through its membrane business division, the
Group manufactures and supplies membrane products.
In the EPC division, the Group undertakes turnkey projects
in the capacity of EPC contractor or as a membrane system
specialist. As an EPC contractor, the Group has served major
industrial clients such as petrochemical companies including
China Petrochemical Corporation (“
Sinopec
”), China
National Petroleum Corporation (“
CNPC
”), China National
Offshore Oil Corporation (“
CNOOC
”) and Sembcorp
Utilities. The Company also provided EPC solutions to
industrial parks such as those in Guangdong (Daya Bay
Huizhou, Nansha), Jiangsu (Dafeng, Taixin, Siyang, Qidong),
Sichuan (Guangan), Fujian (Yangli), Shandong (Changyi,
Weifang) and Tianjin (TEDA) and to local and municipal
authorities in the PRC. In 2010, the Group built one of the
largest underground municipal MBR plants in the world, at
Jingxi, Guangzhou, with a treatment capacity of 100,000 m
3
/
day.
The Group invests in wastewater treatment plants under
Build-Operate-Transfer (“
BOT
”), Transfer-Operate-Transfer
(“
TOT
”) and Build-Own-Operate (“
BOO
”) arrangements
(the “
Investment Project
”). A portion of these Investment
Projects are municipal plants backed by off-take agreements
from the government in the PRC. The Group has invested
in more than 40 water plants across 10 provinces in the
PRC, including Liaoning, Shandong, Jiangsu, Hebei and
Guangdong. In addition, the Group also invests in industrial
park wastewater projects, providing wastewater treatment
solutions to the industrial end-users. These included the
wastewater treatment plants in Nansha, Dafeng, Changyi and
Gaoyang.
The Group also provides operations and maintenance
(“
O&M
”) services to clients who wish to outsource their
water and wastewater treatment operations.
The Company added the membrane business division to
the Group’s businesses when it completed the acquisition
of Memstar Pte. Ltd. in 2014. Memstar, together with its
subsidiaries (the “
Memstar Group
”), is principally engaged in
the business of manufacturing and supplying of membrane,
membrane products and integrated membrane system, and
operation of water plants. The Memstar Group is one of
the leading manufacturers and suppliers of polyvinylidene
fluoride (“
PVDF
”) hollow fibre membrane products with
global presence. The Memstar Group is equipped with
strong research and development (“
R&D
”) capabilities and
has manufacturing facilities located in both Singapore and
the PRC. With the support of the Economic Development
Board of Singapore, the R&D centre in Singapore houses
advanced research facilities and is staffed with a strong R&D
team. The intellectual property rights of the Memstar Group
also include a number of patents, manufacturing know-how
and production design in the relevant field.
The Group operates its three business divisions on an
integrated basis, bringing synergistic value to its customers.
Track Record and Technologies
Among the membrane technologies, the Group’s principal
treatment technology is Membrane Bioreactor (“
MBR
”),
which is typically applied in the treatment of various
wastewater types. The Group has an extensive track record
of applying MBR technology successfully in wastewater
treatment, and particularly in the treatment of industrial,
chemical and petrochemical wastewater. The Company has
built up a track record with more than 100 MBR references in
various parts of the PRC and in Southeast Asia.
Examples are the 25,000 m
3
/day plant at Huizhou Daya
Bay Petrochemical Hub and the 10,000 m
3
/day plant at
Guangzhou Nansha Chemical Industrial Park. In the 70,000
m
3
/day Taixing treatment plant, the Group’s EPC division
built one of the largest industrial MBR plants in Asia.
The Company’s largest MBR in the chemical and
petrochemical sector, in terms of capacity completed to
date, is the 15,000 m
3
/day oil refinery wastewater treatment
system for CNOOC’s first onshore refinery at Huizhou,
Guangdong. In September 2010, the Company completed
a 100,000 m
3
/day municipal MBR plant at Jingxi Guangzhou
and it was one of the largest MBR plants in the world and the
first and largest underground MBR plant in Asia at the time
of completion.
In the third quarter of 2015, the Group completed the
construction of a 200,000 m
3
/day municipal wastewater
treatment plant in Fuzhou City, Fujian Province, China.
The plant, valued at RMB580 million, is one of the largest
wastewater treatment plant using the MBR technology in
China.
CORPORATE PROFILE
