Leader Environmental Technologies Limited, through its wholly-owned subsidiary United Greentech (Guangzhou) Co. Ltd. (“UGGZ”), has announced a significant win in the municipal sludge treatment market in China. The consortium, which includes UGGZ, has secured a Build-Operate-Transfer (“BOT”) contract worth RMB71.3 million (approximately S\$13.2 million) to treat municipal sludge from wastewater treatment plants in Tongxu County, Henan Province.

Key Project Details

• The consortium comprises three parties: Econ Technology Co. Ltd. (55% shareholding), Cloudsail Technology Co. Ltd. (35%), and UGGZ (10%).
• Econ Technology Co. Ltd. is a subsidiary of Shandong Hi-Speed Co. Ltd. (SDHS), a state-owned enterprise listed on the Shanghai Stock Exchange (600350.SS).
• The project involves designing, building, and operating the sludge treatment facility for a 30-year concession period.
• The treatment facility construction will be carried out in two phases, with an initial capacity of 100 tons/day in the first phase and an additional 100 tons/day in the second phase.
• The total investment for the first phase is estimated at RMB71.3 million.

UGGZ’s Role and Proprietary Technologies

UGGZ will play a critical role by supplying the Group’s proprietary sludge treatment technologies, including its Continuous Thermal Hydrolysis (“CTH”) system and efficient energy recovery solutions. The contract value for UGGZ’s integrated system stands at approximately RMB30 million.

Commenting on this development, Mr. Li Li, CEO of Leader Environmental Technologies Limited, stated, “This project is a strong validation of our sludge treatment technologies and aligns with China’s efforts to reduce its carbon footprint. The 30-year concession period ensures stable and recurring income for the Company. We remain committed to our asset-light business model while tapping into the significant market potential for sludge treatment in China.”

Impact on Company Financials

The construction of the project is slated to begin immediately and is expected to be completed within one year. This development is anticipated to positively impact the Company’s revenue for the financial year ending 31 December 2025. Shareholders may view this as a strategic move that could enhance the Company’s long-term profitability and market positioning in China.

Important Shareholder Considerations

• The 30-year BOT concession ensures long-term, stable revenue streams for the Company.
• The involvement of Econ Technology, a subsidiary of a state-owned enterprise, strengthens the project’s credibility and execution potential.
• The use of proprietary technologies reflects the Company’s competitive edge in sludge treatment and positions it as a key player in China’s environmental sustainability drive.

It is worth noting that none of the directors or controlling shareholders of the Company have any direct or indirect interest in the project.