Wondux, Chinese Clean Harbors, to Start Trading in Shanghai
COVID-19 and China
Manage. Image credit: Alex Fu/Pexels

Responsible for almost 30% of the world’s CO2 emissions, China is yet to catch up with some European countries that have brought sustainable development to the level of a national idea. However, the situation around environmental protection in the former 'world’s factory' is now way better than it was, say, last decade. Brand-new state policies and the private sector's attempts to combat contamination gave rise to a new breed of enterprises that make money by managing garbage.

Wondux (万德斯, 688178:SH) is one of those pioneers. Now, after more than twelve years of growth and market expansion, its pre-IPO life is verging to a close. The Nanjing-based waste management service provider was among the first several dozen companies who filed a prospectus with the financial regulator, intending to be listed on the new Nasdaq-style board of the Shanghai Stock Exchange (read more about the venue in our report – download).

Lately, the firm has been approved by both the bourse and the China Securities Regulatory Commission (CSRC). It then announced roadshows in Beijing, Shanghai and Shenzhen on December 24-26. Are the still strict capital market authorities buying into Wondux's green business model?

Barely. A beneficiary of the country's major eco incentives, the firm is considered solid just because it is making cash: its operating income grew from CNY 144.09 million (USD 20.61 million) in 2016 to CNY 488.46 million (USD 69.86 million) in 2018. Remarkably, this number reached CNY 355.35 million (USD 50.84 million) in the first half of this year – decent speed for a non-Internet company. More importantly, the net profit jumped up by over 400% within the same period – CNY 77.83 million (USD 11.13 million) is how much Wondux banked last year.

Meanwhile, the business has recently been scaling up in many respects. Take, for example, personnel: a firm of 220 employees in 2016, it has more than doubled in size – this number hit 582 in June 2019.

As the planet is facing serious ecological problems, more and more entities are trying to lay a foundation for a sustainable tomorrow. A swathe of waste management startups has appeared globally. In the United States, Atlanta-based Rubicon Global is a prominent case; Re-Nuble, a small New York startup, is wrestling with a question of how to manage food waste. Too Good To Go, a young firm representing Denmark, has taken upon itself the mission of fighting food waste as well.

Editor: Luke Sheehan
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