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In 2024, what kind of environmental protection enterprises can withstand and live well?

Source：CenewsComCn

Release Time：1 years ago

The environmental protection industry is undergoing unprecedented changes.

The era of "low-hanging fruit" is over, and "easy money" is not easy to earn. At the critical moment of the turning point of the industry, we must bid farewell to useless pessimism and strengthen the confidence of the whole industry. The source of confidence lies in the full possession and in-depth analysis of information.

At the same time, in this complex and changeable "Uka eraEntrepreneurship is also very important. Only by stimulating the intrinsic potential and fighting spirit of environmental protection enterprises can we successfully realize industrial transformation and enter the stage of high-quality development.

At the end of the year and the beginning of the year, it is time to formulate an annual strategic plan.1month10IE Expo Chinaheld"The sixth phase of environmental protectionCEOCircle Sharing Meeting"，in order toWith the theme of "overlapping tides, entrepreneurs moving forward", hundreds of environmental protection experts are invitedCEOparticipatewishThrough multi-dimensionalitytargetExchange of information，Explore new opportunities in the industry at the intersection of waves，for businessformulateNew year developmentplanningProvide new ideas。

The environmental protection industry has been moved from"Incremental market" transferred to "stock market"

As the operator of China's Yixing International Environmental Protection City, Chen Zhi'an, general manager of Guangdong Haiyi Environmental Protection Industry Service Co., Ltd., has a deep feeling about the current plight of the environmental protection industry.

He found that2023In the past year, the trade volume of Yixing International Eco-City has declined by about the same as that of the previous year15%around，This is the first decline in the Eco-City in nearly a decade.

"I was also surprised when I got this data, because most of the Yixing International Environmental Protection City is made of accessories and equipment, not only for new projects, but also for old projects. If there is such a big decline in this link, it is conceivable that the entire environmental protection industry should be relatively cold." Chen Zhi'an said.

▼Chen Zhi'an, general manager of Guangdong Haiyi Environmental Protection Industry Service Co., Ltd

Most of the residents of Yixing International Environmental Protection City are small and medium-sized environmental protection enterprises, and their perception of market changes may be stronger. As an A-share listed company, Peng Harrier Environmental Protection Co., Ltd. (hereinafter referred to as "Peng Harrier Environmental Protection") has also felt the changes in the market.

Chairman Wang Penghari said that Peng Harrier Environmental Protection has been making municipal environmental protection investment since 1998, and its competitors are mainly large enterprises such as BEWG and Bishuiyuan.In the past two years, they have found that this track has changed a lot,“Many friends have become state-owned enterprises”。

In the view of Zhang Wei, general manager of Shandong Qunfeng Heavy Industry Technology Co., Ltd., the current environmental protection industry is facing three changes: first, "more wolves and less meat", the market is gradually shrinking, and new competitors are constantly pouring in; second, the bottleneck of technological innovation, the original technical route is "European and American introduction - digestion and absorption", but with the small technology gap at home and abroad, it is necessary to turn to independent innovation; third, the change of government orientation, environmental protection work continues to deepen, environmental protection policies are also changing, and enterprises need to make changes.

Overall, the environmental protection industry is currently facing a complex external situation.Emission standards have been improved, environmental protection inspectors have been tightened, customer funds are tight, there are fewer and fewer large projects, and there is more and more demand for upgrading and transformation...... There are several aspects that require enterprises to respond.

What worries environmental companies more than the drastic changes in the environment is that this change may be turning point and irreversible. Li Yao, president of WELLE Environmental Technology Group Co., Ltd. (hereinafter referred to as "WELL"), said that the construction of sewage treatment plants and waste incineration plants will not continue forever if there are hundreds of environmental solution companies as in the past. Referring to the European and American environmental protection markets,In the future, most environmental companies will have two models: either they will hold a lot of assets, or they will become small technology companies.

▼Li Yao, Group President of WELLE Environmental Technology Group Co., Ltd

Dong Jingyi, executive director of Beijing CIC Runtian Environmental Protection Technology Co., Ltd., also believes thatThe environmental protection industry has moved from the pastThe transformation of the "incremental market" into the "stock market" will be difficult to reverse in the future.Just like a person, from adolescence to menopause, the need is definitely reduced. According to the laws of nature, we will enter the old age in the future, and the demand will weaken, you can think of the current demand for environmental protection in Europe.

"The important thing is to adjust the mentality, don't be 50 years old, you have to fight hard with 20-year-old young people, the wrong mentality will lead to the wrong goal of the company. Changing oneself, following the trend, and surviving the fittest is the great wisdom. Change is the biggest constant. She said.

In fact, according to Ling Jinming, general manager of Beijing Gaoneng Times Environmental Technology Co., Ltd. (hereinafter referred to as "Gaoneng Environment"), the inflection point of the environmental protection industry is not the last two years, but five to six years back.

He said that the large-scale growth of the environmental protection industry was after the 18th National Congress of the Communist Party of China, and it peaked around 2017.from2018Since the first half of the year, some companies have been in trouble、Thunderstorm, there issomeenterprisetargetThe market value has even fallen to a fraction of that year.

This result is not entirely due to the general environment. In the past, many companies have grown from PPPs, and some companies may have been too aggressive in their strategies, and their project contracting exceeded their own capital capacity and project management and control capabilities. With these yearsPPP projectsshrinking, insufficient capital investment, and enterprises enter a downward cycle.

"There are still a lot of things that can be done around carbon peaking and carbon neutrality and energy saving"

Although the environmental market has undergone a major turning point, it does not mean that the future expectations are necessarily pessimistic. On the contrary, Ling Jinming felt,China has, after all14hundred milliontargetPopulation, and the world's largest manufacturing country, market demand is still potential, environmental protection industry is still promising.

The high-energy environment has planned its business structure as early as ten years ago, hoping that with the slowdown of national construction, the proportion of operation and manufacturing in the revenue structure can also gradually increase.Ten years ago,TheyAlmost 100 percent of the business comes from engineering. but2023yearHigh-energy environmentoperating incomealreadyOccupy75%That's it.

"It is expected that by 2024, operating income will exceed 85%, and only 15% of the traditional engineering business will remain. Ling Jinming said.

▼ Ling Jinming, general manager of Beijing Gaoneng Times Environmental Technology Co., Ltd

Li Yao also said,If the environmental protection industry is defined in a narrow sense“Pollution control”field, that environmental protection market is indeed getting smaller and smallerfinishBut if environmental protection is put in a broad senseThere are still a lot of opportunities in the concept of "sustainable development".

"Pollution control is only the first step, and there are still a lot of things that can be done around carbon peaking and carbon neutrality and energy conservation. There are many opportunities for regrouping of different technologies, or extended applications in other areas, and the space and capacity of the entire market are completely different. He said.

WELLE's technology is based on organic waste treatment, which is a combination of environmental protection and energy, so WELLE also hopes to transform itself from a pollution control company to an energy-based and resource-based company.suchThe project income is also more stable,It can rely more on the resource income of the project itself, rather than the customer paying.

Wang Peng Harrier said that although the environmental protection industry has changed a lot, Peng Harrier Environmental Protection still maintains a very good cash flow.The amount of operating water is only that30010,000 tons, but the income is equivalent to others1000The income of 10,000 tons of water can be said to beVeryExcellent asset.

The reason why this is so is because Peng Harrier has found its own precise positioning. If the environmental protection market is compared to a big cake, then Peng Harrier environmental protection is actually just a "little ant", and its appetite is very limited.

Therefore, for Peng Harrier Environmental Protection, it only needs to do a fixed amount of projects every year. In 10 projects, if 5 do well and 5 do badly, the company may go out of business, and 9 and a half must be guaranteed to be good. In this way, the enterprise will become an expert in doing projects, from the front-end project selection, to the engineering construction, to the project operation, every level must be done very well.

"We always believe that private enterprises must make themselves stronger, rather than blindly bigger. Let's not be the first in China, but the most solid in China, so that you will have a good risk resistance. ”Wang Peng Harrier said.

▼ Wang Penghari, chairman of Peng Harrier Environmental Protection Co., Ltd

For the future, he also believes that "30·60" will bring a lot of opportunities. The carbon emissions of sewage treatment plants alone account for about 2% of the total carbon emissions of the whole society, and the carbon emissions in the transportation sector account for as much as 17%.

"Dig deep into the moat and really get through a subdivision"

As we all know, in addition to solution-oriented companies in the environmental protection industry, there are also many equipment manufacturing enterprises. For these companies, how to respond to the new situation?

In the view of Zheng Bin, general manager of Shanghai Shiputai Membrane Technology Co., Ltd. (hereinafter referred to as "Shiputai"),In the current situation, there is only one way to go, and that is"Dig deep into the moat". The same thing, others can't do it, you can do it, you have your own "diamond diamond".

"For example, it is very common for the membrane to be blocked, but whether the membrane can not be blocked after blocking, and whether the flux can be 100% restored, this is the technical moat. Zheng Bin said.

In recent years, SPT has been deeply engaged in the field of water treatment membranes, especially in the field of MBR membranes with many user pain points, and has gradually become the "invisible champion" of the subdivision track through years of continuous R&D investment and the integration of top talent resources in the field of global membrane technology.

▼Zheng Bin, general manager of Shanghai Shiputai Membrane Technology Co., Ltd

Compared with Shiputai's deep and detailed iteration at one point, Xiamen Jiarong Technology Co., Ltd. (hereinafter referred to as "Jiarong Technology") is doing this"While deepening in one field, make the product richer" and make some extensions。

For example, Jiarong Technology has invested in a specialty separation membrane material company in the United States, as well as an innovative flat plate MBR membrane company in Germany. Last year, Jiarong Technology also completed the integration of the Israeli company AMS, which is the "only two" company in the world that can produce strong acid, alkali and solvent resistant films.

"We have a lot of customers who are engineering companies like High Energy Environment, WELLE, so we want to expand our product line to meet the application needs of these engineering users. Jiang Linyu, chairman of Jiarong Technology, said.

▼Jiang Linyu, chairman of Xiamen Jiarong Technology Co., Ltd

For the different choices of Shiputai and Jiarong, Wu Yuyang, deputy general manager of Shanghai Weipaige Smart Water Co., Ltd., understands that -Enterprise miningThe way of the moat should be based on its own characteristic endowment, some enterprises are suitable for single-point breakthroughs, and some enterprises are suitable for integration and innovation. Anywayshape, based on their own abilities and genes, continue to dig deep on this basis.

Overall, China's growth model is shifting, from "opportunity-driven" growth in the past to "capability-driven" growth in the future. In this case, enterprises can only dig deep into the moat and truly penetrate a subdivision.

When your moat is deep enough, the rest may fall into place. As China's economy has entered a new cycle and local governments' ability to pay has contracted, the industry has begun to enter the second half of high-quality development.In the second half of high-quality development, the weight of product performance, quality, cost performance, and solving user pain points in the order will increase significantly compared with the business relationship operation.

Zheng Bin said that although everyone says that the "relationship" of the environmental protection industry is very important, he now clearly feels that in addition to the relationship, the government and state-owned enterprises pay more attention to product performance. Not only the product performance should be good, the cost performance should be good, and the service should be good.

"Don't fool people, don't think that the relationship can be done, or let the customer really see the effect, let him use it, and the future market will definitely go down this road." He said.

Look for a second growth curvealsoBe careful"Avoiding pits"

At present, many environmental protection companies are looking for their own "second growth curve". However, in the eyes of many entrepreneurs, looking for the second growth curve should also be careful to "avoid pitfalls".

"There's a saying in the industry – if you want your competitor to die quickly, let him play the second curve. ”Chen Zhi'an said that because doing an unfamiliar field will distract a lot of energy, so the competitiveness in the main field will be weakened.

Li Yao also believes that there are many "pits" in the second growth curve. Why didn't the original customer do something? There must be an objective reason. Therefore, it is necessary to combine the company's own cash flow situation and not have too high expectations for cross-border projects.

“Each company can only make money within the boundaries of its own capabilities, and technology companies can only rely on the original technology and experience to make money，Strong financial abilityof companies rely on financial capabilitiesEarn the corresponding money.In short, the company still needs to know the boundaries of its capabilities and do these transformations relatively steadily. Li Yao said.

In Dong Jingyi's view, the Chinese have developed rapidly for 30 years, and suddenly they have no development, and they are particularly unadaptable, so they always want to create some new demand.But before new demand is created, stillwantTake care of the security first，Don'tStraddle yourself"Yellow".

▼Dong Jingyi, executive director of Beijing CIC Runtian Environmental Protection Technology Co., Ltd

For example, they used to do cement kiln co-disposal of hazardous waste, but now the demand for hazardous waste disposal is less, but the demand for carbon reduction is more, so the company has transformed to do some cement kiln fuel substitution work. "At least the customer has not changed, the technology has not changed much, and the risk is still relatively small. ”

Specifically,in the second growth curveThere may be many "pitfalls", such as mergers and acquisitions。 Ling Jinming said that from the perspective of empirical analysis, the proportion of failed mergers and acquisitions is usually higher than the proportion of successes, but many people do not know. Therefore, when choosing M&A targets, it is necessary to strengthen research, grasp the rhythm, and avoid spending money in vain.

There is also technology research and development. Although technology is the core driving force for the development of enterprises, the technology research and development of environmental protection enterprises is after all an enterprise behavior, not an act of scientific research institutes.Corporate behavior should consider whether there is a clear demand for this technology and whether there is anyone who does ittechnologyIf you pay the bill, can you get an economic return immediately through research and development?

"There are indeed customer needs in many parts of the country, and there are some environmental problems that have not been solved, but it is likely that the customers in that place are not able to pay. Even if you have a corresponding technology, it will not pay off in the short term. Li Yao said.

furthermoreThere is also a lot of internationalizationtarget"Pit".It may be relatively easy for equipment companies to sell their products overseas, but it is very challenging for environmental engineering companies to take on projects abroad.

First of all, there are various thresholds, such as local standards, norms, laws, taxes, etc., which require a high learning cost."Maybe you don't have a market opportunity before you get your tuition fees back, and what you learn here may not be replicated in other countries. ”

And alsogovernmentExecutionThe difference.Li Yao said that the Chinese government is a relatively effective government, but overseas, the governments of many countries do not have such the ability to execute, and it is easy to easily promise some things, and in the end they cannot fulfill them. For example, the grid connection of waste incineration projects is not a big problem in China, but it is very troublesome abroad. There are checks and balances between the government and the grid, and some power purchase agreements have to be signed to connect to the grid.

"Once the government's promises cannot be fulfilled, how can it be allowed to fulfill the contract? This puts forward a lot of additional requirements for enterprises, such as legal requirements, financing requirements, etc. And are you willing to bear these additional costs? After doing so, is there a high reward to reward you? After all, earning a dollar overseas is the same as earning a dollar in China. Li Yao said.

Zhang Wei also said,If it is an equipment enterprise, you can try to develop overseas"Follow the national team".Follow in the footsteps of state-owned enterprises and central enterprises to minimize the risk of going overseas.

▼Zhang Wei, general manager of Shandong Qunfeng Heavy Industry Technology Co., Ltd

epilogue

Having said all this, it is not enough to summarize the entire content of this circle sharing meeting. This CEO Circle Sharing Meeting,Wu Qifeng, Chairman of Eridi Information Technology (Beijing) Co., Ltd., also shared his views on the digitalization of the environmental protection industry, and Jiang Guiting, Chairman of Jingjin Environmental Protection Co., Ltd., also shared him30years of experience in starting a business from scratch.

In any case, it is very important to have such an opportunity to communicate with the industry at a critical moment when the industry is turning point, listen to what everyone thinks, and pour out your inner feelings.

As one guest said,Three years of the epidemic, everyone"Becoming subtle", coupled with the low market sentiment, the environmental protection industry is now in great need of such a platform that allows everyone to communicate, confide, and understand other people's opinions, this timeCEOCircle SharingThe communication effect is very good.

In the future, IE Expo China will continue to play a good role as an industrial service platform, continue to empower the environmental protection industry, and promote the development and growth of environmental protection enterprises.

Region：China,Beijing,Shanghai,Shandong,Guangdong

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