DeHeng Advised Sanfeng Environment on Listing

on the Main Board of Shanghai Stock Exchange

2020-06-05

On June 5, 2020, Chongqing Sanfeng Environment Group Co., Ltd. (stock code: 601827) successfully launched its initial public offering on the main board of Shanghai Stock Exchange, issuing 378 million shares and raising net proceeds of 2.5 billion yuan.

Founded in December 2009, Sanfeng Environment is one of the first and leading waste-to-energy enterprises in China. Its principal business includes investment in and operation of waste-to-energy projects, EPC and R&D and manufacturing core waste-to-energy equipment. After years of development and international cooperation through a joint venture, it has accumulated experience in advanced waste-to-energy project operation and management and has gradually established scientific and systematic technical standards and operation modes. It has developed the abilities to provide whole-industrial-chain services, covering R&D, investment, construction, equipment manufacturing and operation, and enjoys an distinct advantage in industrial collaboration. As of the end of March 2020, it had put 18 projects into operation (including trial operation or Phase II projects). It leads the industry with the daily treatment capacity exceeding 20,000 tons, and its waste receiving capacity of the 2017-2018 period was also one of the largest in the industry. According to the 2019 Report on the Ranking of Chinese Biomass Power Generation Industry released by the Biomass Energy Industry Promotion Association under the China Association for the Promotion of Industrial Development, as of the end of 2018, there were 152 waste-to-energy enterprises in China. Among them, Sanfeng Environment ranked fourth in terms of the installed power generation capacity and waste treatment capacity, and ranked third and second in generation capacity and on-grid electricity amount in 2018, respectively.

▲Lawyers Li Zhe (left) and Hou Yang (right) invited to the IPO ceremony

As the special legal counsel for the IPO, the DeHeng team was led by partner Li Zhe, with primary support from partners Hou Yang and Peng Song and lawyers Yan Jiao and Luo Yi. They worked closely with the sponsor China Securities and the audit agency Pan-China Certified Public Accountants, and provided whole-process professional and efficient legal services for the IPO of Sanfeng Environment.