Securities code: 300172 securities abbreviation: Cec Environmental Protection Co.Ltd(300172) Announcement No.: 2022-001 Cec Environmental Protection Co.Ltd(300172)
Announcement on signing the contract for comprehensive treatment, reuse and zero discharge of large industrial wastewater (384 million)
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
1、 Contract signing overview
Cec Environmental Protection Co.Ltd(300172) (hereinafter referred to as ” Cec Environmental Protection Co.Ltd(300172) ” and “the company”), as the leading unit of the consortium, participated in the public bidding of Inner Mongolia Baotou Steel Union Co.Ltd(600010) EPC General Contracting (hereinafter referred to as “the project”) for the comprehensive treatment of general waste water from the general power supply plant issued by Baotou Iron and steel group energy conservation and environmental protection technology industry Co., Ltd. (hereinafter referred to as “Baotou Iron and steel energy conservation”). On December 16, 2021, Baotou Iron and steel e-procurement trading platform has released relevant publicity of bid winning candidates. The company is the first bid winning candidate of the project. For details, see the announcement disclosed by the company on December 17, 2021 (Announcement No.: 2021-052).
On January 14, 2022, the company signed the EPC contract of Inner Mongolia Baotou Steel Union Co.Ltd(600010) comprehensive wastewater treatment project of power supply general plant with Baotou Iron and steel energy conservation. The relevant contents are hereby announced as follows:
2、 Counterparty
1. Enterprise name: Baotou Iron and steel group energy conservation and environmental protection technology industry Co., Ltd
2. Legal representative: Han Peixin
3. Registered capital: 600 million yuan
4. Date of establishment: May 30, 2007
5. Registered address: East sub building, Baogang information building, Hexi Industrial Zone, Kundulun District, Baotou City, Inner Mongolia Autonomous Region
6. Business scope: environmental technology consulting services; Environmental technology R & D; Comprehensive utilization of solid waste and research and development of circular economy; Consulting services for production technology of iron and steel, rare earth and mining; Equipment manufacturing technology consulting services; Management and service of special projects for energy conservation and environmental protection; Energy saving technology promotion services; Environmental emission trading and energy (power) trading; Custody operation management (EMC) of industrial environmental protection facilities; Air pollution control and hazardous waste control related to sewage treatment and environmental control (operated with license); Sales of general solid waste comprehensive utilization products such as metallurgical slag, fly ash, dry separation waste rock and tailings; Engineering (environmental) supervision (with the approval of the environmental protection department of Inner Mongolia Autonomous Region); Testing services (energy), environmental protection monitoring and testing; Manufacture of pharmaceutical materials for environmental pollution treatment; Landscaping works; Road, ecological protection and soil remediation projects.
7. There is no relationship between the company and Baotou Steel energy conservation.
8. In recent three years, the company has no transaction with Baotou Steel energy conservation.
9. Performance capability analysis: Baotou Steel energy conservation is a wholly-owned subsidiary of the listed company China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) (Code: 600111) of Baotou Steel Group, and its parent company is one of the leading enterprises in China’s rare earth industry. The company is in good operation and financial condition and has strong performance ability.
3、 Main contents of the contract
1. Contract signatory
Party A: Baotou Steel Group energy conservation and environmental protection technology industry Co., Ltd
Party B: Cec Environmental Protection Co.Ltd(300172) , Inner Mongolia Baotou Steel Group Environmental Engineering Research Institute Co., Ltd., Inner Mongolia Guangsha Construction and Installation Engineering Co., Ltd
2. Contract content: EPC project for comprehensive treatment of waste water discharged from power supply plant, which is one of the environmental protection water pollution prevention and control projects of Baotou Iron and steel group company. The total amount of concentrated brine discharged from the sewage treatment stations of the new and old systems of the power supply plant is 350m3 / h. The salt in the concentrated brine is separated into crystalline salt to ensure that the total amount of water and salt discharged from the main wastewater to the tail pipeline meet the standard. EPC general contracting mode is adopted, including project design, equipment and material procurement, construction and installation engineering construction, commissioning, trial operation and acceptance.
3. Contract amount: the total contract amount is 38449722900 yuan (including tax)
4. Contract period: the project will be completed on September 30, 2022.
5. Price payment: Party A shall pay the corresponding amount according to the payment conditions and progress agreed in the contract.
6. Liability for breach of contract: the rights and obligations of each party, liability for breach of contract and compensation, dispute resolution, etc. have been clearly stipulated in the contract terms.
7. Effective conditions: it shall be established after being signed and sealed by the legal representatives or authorized representatives of both parties, and it shall take effect after Party B provides performance guarantee.
4、 Basic information and division of labor of consortium partners
Cec Environmental Protection Co.Ltd(300172) is the leading unit of the consortium of the project, and Inner Mongolia Baotou Steel Group Environmental Engineering Research Institute Co., Ltd. and Inner Mongolia Guangxia Jian’an Co., Ltd. are members of the consortium. Cec Environmental Protection Co.Ltd(300172) as the leading unit of the consortium, undertake the general contracting of the project and some process design, system equipment integration and commissioning of the project; Baotou Iron and steel research institute undertakes the process design of the project and the procurement of some complete sets of equipment; Guangxia Jian’an undertakes the civil construction and installation works of the project.
Inner Mongolia Baotou Iron and Steel Group Environmental Engineering Research Institute Co., Ltd.: the legal representative is Wang Wenli, with a registered capital of 20 million yuan. It was established on September 6, 2019, and its registered address is No. 32, Huanghe street, Rare Earth Development Zone, Baotou City, Inner Mongolia Autonomous Region. Its main business is water pollution control and environmental protection facility operation; Soil pollution control and remediation; Consultation, design and construction of mines and other pollution control and restoration projects; Design of comprehensive environmental treatment scheme, etc.
Inner Mongolia Guangsha Jian’an Engineering Co., Ltd.: the legal representative is Chen Zhikai, with a registered capital of 60 million yuan. It was established on July 29, 2002, and its registered address is the West Jian’an building, Gangtie street, Kunqu District, Baotou City, Inner Mongolia Autonomous Region. Its main business is earthwork engineering; Fire fighting facilities engineering; Mechanical and electrical equipment engineering; Installation of electromechanical equipment; General contracting of housing construction, smelting engineering, municipal public works, etc.
5、 Impact of contracts on Listed Companies
1. By taking the lead in undertaking major national water science and technology projects, the company has successfully developed a number of “zero emission” independent innovation technologies and integrated systems such as low pollution membrane combination technology with pollution-resistant membrane as the core, and created a characteristic business of zero emission of wastewater treatment. With the advantages of “resource-based, low energy consumption, low pollution and intelligence”, the company has been used in petrochemical, coal chemical industry, metallurgy, thermal power It has been successfully applied in electronic and other industrial fields to effectively realize wastewater emission reduction, end treatment up to standard, resource reuse and “zero discharge”. The undertaking of the project has expanded the market of the company’s large-scale environmental protection projects in the metallurgical field, consolidated the company’s position in large industrial wastewater treatment and zero discharge business, improved competitive advantage and market scale, enhanced brand awareness and market share, and provided support for improving the company’s ecological environment treatment ability.
2. The contract amount of the company’s current project accounts for about 37.66% of the total audited operating revenue in 2020, which is expected to have a positive impact on the company’s future operating performance and will not have an impact on the company’s business independence.
6、 Risk tips
1. During the performance period of the contract, there is a risk that the gross profit margin will decrease due to the increase of costs such as the price of equipment and raw materials.
2. The contract has made clear provisions on breach of contract and disputes between both parties, but there may be the risk of failure to perform on schedule or in full due to force majeure during the performance of the agreement.
Please pay attention to investment risks.
7、 Contract review procedure
The above contract belongs to the company’s daily operation contract. According to the Shenzhen Stock Exchange GEM Listing Rules, the articles of association and other relevant provisions, it is not necessary to submit it to the board of directors or the general meeting of shareholders for deliberation, nor is it necessary for independent directors to express their opinions.
8、 Other relevant instructions
The company will disclose the performance in the regular report according to the follow-up progress of the contract in accordance with the Shenzhen Stock Exchange GEM Listing Rules, Shenzhen Stock Exchange GEM listed companies’ standardized operation guidelines and other relevant provisions.
9、 Documents for future reference
EPC contract of Inner Mongolia Baotou Steel Union Co.Ltd(600010) general waste water treatment project of power supply general plant signed by the company and Baotou Iron and steel energy conservation.
It is hereby announced.
Cec Environmental Protection Co.Ltd(300172) board of directors January 14, 2022
