The Zhitong Finance App learned that Moody's issued a second party opinion on the sustainable financing framework of Yinlong Water Supply Group, a wholly-owned subsidiary of China Water (00855), and awarded SQS1 (Excellent) the highest sustainable development quality score. According to reports, this is Moody's first SQS1 highest sustainable quality score in Asia Pacific.

Established in Bermuda in 2021, Yinlong Water Group Co., Ltd. is a wholly-owned subsidiary of China Water. Yinlong is a newly established entity that owns all domestic and foreign water supply and direct drinking water-related companies of China Water. The business portfolio is powered by two wheels for water supply and direct drinking water. After Yinlong is independently listed on the Hong Kong Stock Exchange, China Water will still hold about 82% of its shares.

Yinlong has 217 tap water plants, with a total design water supply scale of 15.36 million m3/day, and the total length of the water supply network responsible for operation and maintenance exceeds 158,000 kilometers. Most water supply businesses are located in third- and fourth-tier cities, where the local government grants exclusive franchises for 30-50 years that can be renewed (according to a city's policy of only one water supply company). Yinlong's water supply business uses a direct revenue model, charging water bills directly to end users.

Yinlong will take China Water's “water-based, achieve a good society” values as its core business philosophy, and adopt the same sustainable development policies as China Water. Furthermore, Yinlong complies with China Water's “Carbon Peak, Carbon Neutrality” Implementation Plan Outline and plans to achieve a carbon peak by 2030 and achieve net zero emissions by 2050 by adopting clean energy, improving energy efficiency, and reducing leakage.