Analysis of the impact of the COVID-19 epidemic on the environmental protection industry and countermeasures

Main Strategy Suggestions for Responding to the Epidemic

The epidemic crisis has had a significant impact on the environmental protection industry. Overall, the positive impact outweighs the negative impact. How to transform this crisis into an opportunity for the development of the environmental protection industry and promote industrial transformation and upgrading is a question worth considering during the epidemic.

1

      In the short term, the most fundamental negative impact of the epidemic on the environmental protection industry is the issue of funding, especially the increasing and continuous amplification of cash flow difficulties for small and micro environmental protection enterprises. Funding is the lifeline of enterprises, and solving short-term funding problems is the top priority for enterprise survival. Environmental protection enterprises can solve short-term working capital problems through methods such as accounts receivable factoring, fund borrowing, three-party contract mortgage pawn, mutual insurance, and joint insurance. Surviving the epidemic is victory.

2

      The epidemic has promoted the standardization and systematization of the environmental protection industry in areas such as water environment, atmospheric environment, emergency monitoring, emergency handling, medical wastewater treatment, medical waste treatment and disposal, and sanitation services. The future of these sub-sectors will inevitably involve upgrading and improvement in depth and breadth. Therefore, environmental protection enterprises should consider how to transform this epidemic crisis into an opportunity for industry upgrading and development. 2020 The CSRC's new refinancing policy has improved the financing fundamentals of listed companies, and the environmental protection industry has the opportunity to achieve overall upgrading and enhance its core competitiveness.

3

        At present, there are nearly 5 ten thousand environmental protection enterprises nationwide, of which 90% are small and micro enterprises. Due to the lack of an orderly competitive environment, the industry's development is difficult to obtain support from continuously innovative technologies, and the main business with generally low technological content severely restricts the investment value of the environmental protection industry. This epidemic has accelerated the industry's mergers and acquisitions process. Acquisitions of the industrial chain around core enterprises, mergers of related enterprises in the industrial chain, and gradual introduction into core enterprises after cultivation and incubation by collaborative investment institutions can enhance the competitiveness of core enterprises and improve the overall level of the environmental protection industry. 导入核心企业，可提升核心企业的竞争力，进而提升环保行业的整体水平。