This past year has been an unusual one. In the past year, the deleveraging and capital market adjustment followed one after another. The China securities regulatory commission (CSRC) has increasingly loosened the restrictions on listed companies' mergers and acquisitions, and more and more environmental protection enterprises have been transforming themselves into trans-boundary environmental protection enterprises. A large investment, a series of mergers and acquisitions, triggered a wave of environmental protection industry. Below, small make up for you on the integration of the environmental protection industry merger road.

From the perspective of the overall environment, the construction of ecological civilization continues to advance, the enforcement of environmental protection law is constantly strengthened, the domestic demand for environmental protection is constantly activated, and the market scale of environmental protection industry continues to expand. With the development and upgrading of the industry, the brutal competition means relying on capital and price in the past has turned into the competition of technology, talents and services. A few years ago, the environmental industry was in a stage of rapid development or brutal growth. Enterprises were eager to expand scale and occupy the market, but now they are faced with how to change and adapt to the policy requirements under the situation of strong supervision. In particular, the introduction of the state's strict control of financial risks has affected many environmental protection enterprises to a certain extent, but it will also accelerate the integration trend of the industry from the side.

In addition, the comprehensive development of environmental protection enterprises also promotes many environmental protection enterprises to realize complementary advantages and extend the industrial chain of enterprises through horizontal and vertical mergers and acquisitions. Now the environment industry is still more dispersed, in this pattern, the industry will face a new round of reshuffle. For example, this year yingfeng environmental merger and acquisition of changsha zoomlion environmental industry co., ltd. is a large-scale industrial integration through capital means. "It is expected that in the next two to three years, the environmental protection industry may reshuffle, and the whole industry through new mergers and acquisitions and integration will promote the upgrading of the environmental protection industry and gradually realize the transformation to a big and strong pattern, and further improve the industry benefits.

Many experts and analysis institutions in the industry agree that in the next 5 to 10 years, the environmental protection industry will undergo a process of differentiation and concentration, adhering to the Matthew effect of "the strong will always be strong", the scale and proportion of some leading enterprises will become larger and larger, and a large amount of social capital will also flood into these "unicorns". Faced with such a trend, how should environmental protection enterprises do? In addition to policy support, environmental enterprises should also break out of the traditional mold, innovate and develop, give full play to their professional advantages, redeploy resources in some subsectors, and try to avoid low-price malicious competition.

Chief economist guan qingyou also pointed out that in order to stand out in the new competitive environment, environmental protection enterprises must take technological innovation as the core driving force, increase investment in key generic technologies and applied technologies, pay more attention to technical cooperation with scientific research institutions, colleges and universities, and accelerate the combination of industry, education and research. Considering various factors, we believe that tight financing environment in 2019 will last for some time, and cash flow will become a key factor restricting the performance growth of environmental protection companies. As the reshuffle of the environmental protection industry accelerates, companies with financing cost advantages, high-quality operational assets and core technologies will have excellent integration opportunities, and the market share of enterprises with merger and acquisition integration ability can be expected to increase.