On May 23, 2020, the Shenzhen Bao'an District Public Resources Trading Center officially announced that Zoomlion-Enviro, a subsidiary of Infore Enviro, won the bidding for the sanitation integration PPP project in Xin’an, Fuyong, and Fuhai subdistricts in Bao’an District, Shenzhen. The annualized return in the contract of the project is 520 million yuan, the service period is 15 years, and the total contract value is 7.8 billion yuan. The annualized return in contract and the total contract value have broken the record in domestic market, making it the largest sanitation service PPP project in the industry history.

 

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The service area of the project covers three subdistricts in Bao'an District, including Xin'an, Fuyong and Fuhai. The services mainly include nine aspects, such as comprehensive cleaning, collecting and transferring of waste, operation and maintenance of waste transfer stations, maintenance of front-end facilities for waste classification in public areas and urban villages, operation and maintenance of public toilets, construction, operation and maintenance of sanitation parking lots, management of greening, construction, operation and maintenance of intelligent management system and platform, and emergency security. The total investment of the project is 519,727,300 yuan, of which the construction cost and initial purchase cost of vehicle and equipment are 517,688,300 yuan.

 

Focus on Smart Sanitation Strategy Shows Company’s Advantage

 As the largest PPP project in the history of the sanitation service industry, this project attracted close attention of companies in the industry and caused a fierce competition among them, setting a high requirement for the strength of the applicants. After an intense competition, Infore Enviro finally stood out among the 24 finalists. This success highlighted the industry's core competitive advantages of Infore Enviro's smart sanitation strategy development, whose core is intelligent equipment, smart service, and smart cloud platform. It was also the result of Infore Enviro’s clear strategic layout, deep industry accumulation, and focus on sanitation.

 

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As a leading company in the sanitation equipment industry, Infore Enviro occupies an absolute leading position in the industry. According the annual report in 2019, Infore Enviro made 7.034 billion yuan in terms of sanitation equipment sales. The market share of new energy vehicles reached 29%, a year-on-year increase of 5 times; the market share of medium and high-end products exceeded 30%, and the market share of high-end products was close to 40%. In the past ten years, the total sales amount of sanitation equipment reached 50.95 billion yuan. It has been ranking first in this industry in China in terms of sales for 19 consecutive years. Relying on the advantages of equipment technology and a perfect sales network, Infore Enviro achieved the strategic goal of rapid expansion in the field of sanitation services The revenue of sanitation services increased from 290 million yuan in 2017 to 1 billion yuan in 2019, and the amount of newly signed contracts and industry rankings also reached new highs. The annual report shows that at the end of 2019, Infore Enviro had 57 projects in operation, with a total contract value of 25.2 billion yuan. Among them, 30 projects were attributed to bid winning in 2019. Infore Enviro focuses on smart sanitation and develops both the sanitation equipment and sanitation services.

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Seize the Opportunity to Develop Core Advantages

Shenzhen is accelerating to improve its operation means ofsanitation work to be more intelligent and relying more on machinery and new energy. Infore Enviro predicted a few years ago that as China’s environmental protection requirements become stricter, new energy environmental sanitation vehicles with low noise and low emission will become more in the streets. In the field of sanitation, new energy vehicles will also take a bigger proportion and generate a reform about new energy and intelligence. Moreover, Infore Enviro also invested huge amount and integrated advanced technologies including 5G, AI, big data, and cloud computing to take the lead in the industry and seize the opportunity to develop intelligence and machinery for sanitation services, so as to become one of enterprises with top AI technology in China and a member of "national team" for innovation of environmental sanitation robotics. Taking advantage of the rapid development of 5G and AI technology, Infore Enviro has invested a lot in R&D projects of equipment featuring intelligence, which could be operated by less or even no people, and it becomes a new point for its revenue growth. Obviously, it was the key for Infore Enviro to win the bid that it took the lead to improve its operation means of sanitation work to be more intelligent and relying more on machinery and new energy, especially the sanitation vehicles fueled by new energy.

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In this project, Infore Enviro will provide environment-friendly new energy equipment to solve the problems left over by history as well as small intelligent sanitation equipment independently designed and R&D in batches. For the cleaning of streets and lanes, namely the capillary of urban roads, it will replace the traditional operation mode of "manual work-oriented, auxiliary with machinery" with a new one, so as to deeply beautify the whole city while improving the operational efficiency and lowering the costs. At the same time, combined with the self-developed smart management system and platform construction, Infore Enviro will create a series of platforms and systems for the project to achieve fine management of environmental sanitation, including a whole process tracing system for household waste, an intelligent management platform for waste classification, an integrated commanding and dispatching platform, a big data analysis management platform, and an HD large-screen display platform, a mobile integrated management display platform, etc.

 

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This project is a new leap after Infore Enviro released the "5115" new strategic blueprint, and it is also another important opportunity for industrial upgrading from "urban cleaner" to "urban steward". In 2020, the Infore Enviro's sanitation service will strive for the target of accumulative contract value of 40 billion, and will keep optimizing the company's overall industrial structure.

Infore Enviro will adhere to the corporate vision of "Cleaner world, Better future", take scientific and technological innovation as the starting point and take independent innovation as the lead. Together with the Shenzhen Bao’an District Government, we will spend great effort to improve the standards for construction of sanitation infrastructure,the management of integrated sanitation operation, and the performance of sanitation operation, so as to help Shenzhen become “the cleanest city in China” with a cleaner and more beautiful, civilized, and orderly environment.