In addition to the core business of hazardous waste treatment, Agile Environmental Protection has also extended its reach to light asset businesses such as energy power generation, environmental water supply, eco-industrial parks and ecological restoration. "Diversified development with hazardous waste disposal as the core" has become its "chess game".
As an established real estate enterprise, Agile chose environmental protection as a part of diversified business chain, which was not an impromptu move.
Environmental protection is a good business. As early as the first time of decision-making, Agile understood that the urgent need of environmental protection business and the continuous expansion in the medium and long term are the confidence to continue to deepen the industry.
Agile has great expectations for the environmental protection industry. Yu Jifu, president of Agile Environmental Protection Group, told the Economic Observer that he hoped to strengthen Agile's comprehensive strength in urban first-and second-level development by mastering the operational capacity of the environmental protection industry chain. It is also a business attribute of environmental protection and steady operation. The industry prospect of continuously expanding the market can be used as a supplement to Agile Holdings' performance.
Five-year attack on the leader in environmental protection subdivision
Agile's road to environmental protection began on 20 15.
This year, Agile handed in a report card with sales of 44.23 billion yuan on the real estate business track. Later, Chen Zhuo Lin, Chairman and President of Agile Board of Directors, once said with emotion at the annual performance meeting, "20 15 was the worst and saddest year."
On the one hand, it is difficult for a single residential development layout to quickly seize the market for large-scale development in a short time; On the other hand, Agile Qingshui Bay, a large-scale project located in Hainan, successfully built a water supply and sewage treatment system for the first time, relying on the huge owner scale.
At that time, Agile made a brand-new judgment: the development and sales model of real estate is only one-off property, while environmental protection is a business that focuses more on just-needed and repeated consumption.
"After all, once the house is sold, its service life will be at least several decades. The demand for municipal environmental protection-related services is repeated every day, and everyone needs it." Yu Jifu said that the layout of environmental protection is not only a necessary part of Agile real estate human settlements industrial chain, but also a complementary business logic of real estate development business model.
It is imperative to expand environmental protection business from diversified fields, but it is not easy for Agile, a traditional real estate developer. Therefore, Agile Environmental Protection has formulated a "three-step" development strategy, 20 15-2020, which is the first stage in Agile's definition of environmental protection, focusing on the time window between the outbreak period of emerging industries and the integration period of mature industries, and expanding the scale of enterprises as soon as possible.
The first step for Agile to cut into the environmental protection business is acquisition. Yu Jifu mentioned that in the past five years, Agile Environmental Protection is accelerating the two-way layout of regions and industrial chains through precise investment and acquisition of mature projects and large asset package projects.
By 2020, Agile's environmental protection business has been stationed in more than 50 industrial towns, covering the whole country 15 provinces, forming four business areas in North China, Central China, South China and Guangxi.
But the increase in quantity is not the only pursuit of Agile's environmental protection. It is a direction that Agile Environmental Protection is exploring in the process of expanding its scale to carry out regional coordination of scattered projects and linkage of upstream and downstream industrial chains, and gradually transform the quantity accumulation into a clear industrial system.
"After the continuous investment in the past five years, at present, what we have to think about is how to create the effect of 1+ 1 2 in the process of managing multiple projects at the same time, rather than simply adding up the projects." Yu Jifu told the Economic Observer Network.
All this is to achieve the short-term goal of the first stage-to build itself into a leading comprehensive investment operator by taking the leading position in the segmentation field as an opportunity.
At present, hazardous waste treatment has become the core business of Agile's environmental protection choice. The qualification of putting into production and under construction exceeds 3.5 million tons/year, and the safe landfill capacity exceeds/kloc-0.90 million cubic meters. In the field of hazardous waste treatment, Agile Environmental Protection ranks in the forefront of the industry with these two sets of data.
At the same time, Agile environmental protection and hazardous waste projects are also distributed in 27 cities in 12 province. The market share of incineration and landfill capacity of hazardous waste projects in Fujian, Jiangsu, Shandong, Jiangxi and Guangdong provinces ranges from 10% to 66%.
Looking for new growth points of performance
In a short period of five years from real estate development to environmental protection, Agile has quickly established its advantages in the new business track through acquisition and merger-the scale and volume have been increasing, and the competitiveness of core business sectors has also begun to stand out.
The most important goal of agile environmental protection at this stage is to "tap the potential of existing projects, match the light asset business and gradually improve the return on assets". In fact, they have already started to act. This year, Agile Environmental put forward the development strategy of "one core four-wheel drive N-wing".
In addition to the core business of hazardous waste disposal, energy power generation, eco-industrial park, environmental water supply and ecological restoration are also the four driving sectors. At present, the total scale of Agile's environmental protection domestic waste incineration power generation is nearly 7,500 tons/day, and the installed capacity of cogeneration reaches 2,000 tons; The total water treatment scale of environmental protection water sector is nearly 2.3 million tons/day; The water body restoration area is nearly 750,000 square meters; At the same time, it also invested in three eco-industrial parks.
Agile Environmental Protection is still involved and ready to enter other light asset fields. Environmental protection equipment manufacturing, ecological management project and planning consulting service direction are the epitome of Agile's new environmental protection layout.
According to Yu Jifu, Agile Environmental Protection is checking and filling the gaps in the laid-out core business, and filling the gaps in the laid-out core business from the geographical dimension of hazardous waste and the business segmentation dimension; In addition, agile environmental protection also analyzes the opportunities in each single market with scanning ideas, and embraces new formats as much as possible under the condition of controllable costs.
A sudden epidemic at the beginning of the year also made Agile Environmental realize that municipal environmental assets are a very important supplement to industrial environmental protection because of the resilience of just-needed production capacity in emergencies. Therefore, Agile Environmental Protection relies on the extensive regional industrial customer network and regional business network to find a comprehensive environmental protection park and environmental protection demand combination (multi-industry, multi-municipality and industrial+municipality).
"You can't just do business with mature business models and strong profitability. You should be prepared for new performance growth points. " Yu Jifu stressed.
As the linkage mode between Environmental Protection Group and other business segments of Agile becomes more and more mature, Agile Environmental Protection will further lead and cooperate with other business segments of Agile to carry out urban comprehensive services in the third phase in the future.