We are a leading integrated operator and investor in China’s environmental industry, with an established nationwide network. Our high quality projects span the industry value chain in the wastewater treatment, reclaimed water treatment, water supply, waste incineration and sludge treatment sectors. We had a scalable project portfolio of about 250 wastewater treatment and supply projects, 5 waste incineration projects and 13 sludge treatment projects. According to Frost & Sullivan, we were the third largest municipal wastewater treatment operator in China.
We have nationwide presence with our project network covering 20 provincial-level administrative divisions in China as of December 31, 2022. We manage our network through five regional headquarters — Wuhan Regional Headquarters, Nanfang Regional Headquarters, Shandong Regional Headquarters, Longjiang Regional Headquarters and Fudan Regional Headquarters — and our waste incineration business unit. Our nationwide coverage comprises the following regions: Northeast China, East China, Central China, South China and North China.
We engage in the design, construction and/or operation of wastewater treatment, reclaimed water treatment and sludge treatment under service concession arrangements with local governments. Our wastewater treatment, reclaimed water treatment and sludge treatment plants treat and discharge wastewater, reclaimed water and sludge, respectively, in compliance with the relevant national and local standards. In managing this business line, we charge our customers, usually local governments in the PRC, for wastewater and sludge treatment fees, mainly based on the volume of discharged wastewater/treated sludge and the agreed tariff during the concession period, in accordance with terms in the relevant service concession arrangements. For reclaimed water treatment, we negotiate contract price with our customers, taking into account treatment costs associated with their proposed uses and cost of reclaimed water distribution. Parties in each concession arrangements determine the key terms such as unit price, concession period and minimum discharge, where applicable, by taking into account various factors, including, our construction and/or development costs of relevant plants and complexity and quality of water and sludge being treated.
We mainly developed and operated our wastewater, reclaimed water and sludge treatment projects through BOT, TOT and BOO project models.
We mainly engage in the design, construction and/or operation of water supply under service concession arrangements with local governments. Our water supply plants supply tap water to end users in compliance with the relevant national and local standards. In managing this business line, we charge different retail prices for residential and non-residential end users pursuant to the relevant rules and regulations. We have 18 tap water supply projects and our total design supply capacity was 1,985,000 tons per day. We served approximately 1,052,859 residential end user accounts and approximately 102,320 non-residential end user accounts in the PRC. The tap water we distribute to end users has to meet the applicable quality standards, including the National Drinking Water Standards (GB5749-2006) (國家生活飲用水衛生標準).
We mainly developed and operated our water supply projects through BOT, TOT and BOO project models and operated certain water supply projects under the O&M project model.
We engage in the design, construction, operation and maintenance of waste incineration plants, in which we incinerate municipal solid waste to generate power. In managing this business line, we charge customers, usually local governments in the PRC, waste treatment fees based on the volume of municipal solid wastes we process. Our waste incineration plants sell power through incineration of municipal solid waste to grid companies at on-grid electricity tariffs.
Our others business line mainly includes installation works in relation to water supply, EPC projects and consultancy on wastewater treatment and water supply projects. We have scaled down our EPC projects since 2014 as we sought to expand our project portfolio to include more service concession arrangements.