Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company is expected to see a significant increase in free cash flow by 2025, with a strong potential for dividend growth. The performance of its cement business is stabilizing, and the value of its equity is anticipated to be reassessed [1]. Summary by Sections 1. Cash Flow Turning Positive, High Dividend Potential - The company focuses on waste-to-energy projects and indirectly holds a 17.8% stake in Conch Cement. As of the end of 2024, the company’s net profit attributable to shareholders is projected at 2.02 billion yuan, a decrease of 18.03% year-on-year [8][14]. - Operating cash flow is expected to increase to 2.02 billion yuan in 2024, with capital expenditures decreasing significantly from 6.91 billion yuan in 2021 to 2.83 billion yuan in 2024 [8][31]. - The dividend payout for 2024 is projected at 657 million yuan, a 100% increase, with a dividend ratio of 32.51% [8][37]. 2. Strong Cost of Capital & Operational Efficiency, Profitable Small-scale Projects - The company has a financing cost of 2.51%, the lowest in its industry, and a capacity utilization rate of 111%, ranking second among peers [8][52]. - The company’s waste-to-energy projects are primarily located in small to medium-sized cities, with a focus on smaller-scale projects that have proven to be profitable [8][41]. 3. Cement Business Stabilizing, Equity Value Awaiting Reassessment - The cement business is showing signs of stabilization, with a projected net profit of 800 million yuan in 2025, leading to a valuation of 6.4 billion yuan based on a PE ratio of 8 [8][14]. - The current market value of the company is 15.4 billion yuan, indicating a significant discount on the value of its stake in Conch Cement, which is estimated at 17.2 billion yuan [8][14]. 4. Energy Efficiency Improvements and Revenue Growth - The company’s average electricity generation per ton of waste processed has increased to 279 kWh/ton, with a compound annual growth rate of 3% from 2018 to 2024 [8][62]. - The external steam supply has surged by 561% in 2024, indicating substantial potential for revenue growth through heat supply [8][63].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Views - The company is expected to see a significant increase in cash flow, with a turning point towards positive free cash flow anticipated in 2025. The potential for dividend increases is substantial, driven by reduced capital expenditures and stable operational cash flow [8][14]. - The company's main business, focused on waste-to-energy operations, is projected to lead profit growth, while the performance of its cement business is stabilizing, indicating a potential revaluation of equity value [8][14]. Summary by Sections 1. Cash Flow and Dividend Potential - The company has a strong focus on waste incineration power generation and indirectly holds a 17.8% stake in Conch Cement. As of the end of 2024, the company’s net profit attributable to shareholders is projected at 2.02 billion yuan, a decrease of 18.03% year-on-year [8][14]. - Operating cash flow has increased to 2.02 billion yuan in 2024, with capital expenditures decreasing significantly from a peak of 6.91 billion yuan in 2021 to 2.83 billion yuan in 2024 [8][14]. - The dividend payout for 2024 is expected to be 657 million yuan, representing a 100% increase, with a dividend ratio of 32.51% [8][14]. 2. Cost of Capital and Operational Efficiency - The company has a competitive edge with a financing cost of 2.51%, the lowest in its industry, and a high capacity utilization rate of 111% in 2024 [8][14]. - The company’s waste treatment operations have a gross profit margin of 47.38%, aligning with industry averages, and the average return on equity (ROE) for its main business is 7.92%, slightly above the industry average [8][14]. 3. Cement Business Performance - The cement business is stabilizing, with a projected net profit of 800 million yuan in 2025, and the equity value of the cement stake is expected to be reassessed as performance improves [8][14]. - The report indicates that the current market valuation of the company does not fully reflect the value of its stake in Conch Cement, which is estimated to be significantly undervalued [8][14]. 4. Future Profitability and Growth - The company anticipates a net profit of 2.18 billion yuan in 2025, with a year-on-year growth of 8%, and a corresponding price-to-earnings ratio of 7.06 [1][8]. - The report highlights the potential for significant dividend increases in 2025 and 2026, with projected dividend yields of 5.8% and 10.6%, respectively [8][14].

公用事业 证 券 研 究 报 告 证券分析师 王璐 A0230516080007 wanglu@swsresearch.com 莫龙庭 A0230523080005 molt@swsresearch.com 傅浩玮 A0230522010001 fuhw@swsresearch.com 朱赫 A0230524070002 zhuhe@swsresearch.com 行 业 及 产 业 2025 年 06 月 09 日 联系人 朱赫 (8621)23297818× zhuhe@swsresearch.com 全球气价窄幅波动 无人环卫加速布局 看好 ——申万公用环保周报(25/05/30~25/06/06) 本期投资提示： 研 究 / 行 业 点 评 请务必仔细阅读正文之后的各项信息披露与声明 本研究报告仅通过邮件提供给 中庚基金 使用。1 | 1．天然气：全球气价窄幅波动 欧洲气价回升 | 3 | | --- | --- | | 2．一周行情回顾 | 7 | | 3．公司及行业动态 | 8 | | 4．重点公司估值表 | 9 | 请务必仔细阅读正文之后的各项信息披露与声明 第2页 共11页 简单金融 成就梦想 ...

内容概要：随着我国农业生产规模的不断扩大，导致秸秆产量持续增加，近年来，随着我国对环境保护 的重视程度不断提高，秸秆焚烧等传统处理方式因会造成大气污染而受到严格限制，这使得秸秆垃圾处 理的重要性日益凸显，与此同时，我国高度重视秸秆综合利用工作，相继发布一系列政策持续提升全国 秸秆综合利用效能，推动各地因地制宜形成肥料化、饲料化为主，兼顾能源化、基料化、原料化的多元 利用格局，在此背景下，我国秸秆垃圾处理市场迅速崛起，据统计，2024年我国秸秆垃圾处理行业市场 规模达600亿元，同比增长9.1%。 上市企业：长青集团（002616）、圣泉集团（605589）、中国光大绿色环保（01257.HK）、海螺创业 （00586.HK） 相关企业：内江海诺尔垃圾发电有限责任公司、山东稼禾生物股份有限公司、内蒙古优然牧业有限责任 公司、辽宁金和福农业科技股份有限公司、黑龙江力天环保科技有限公司、国能生物发电集团有限公 司、万华生态产业集团股份有限公司、合肥长丰皖能环保电力有限公司 关键词：秸秆垃圾处理市场政策、秸秆垃圾处理产业链、秸秆垃圾处理市场规模、秸秆垃圾处理竞争格 局、秸秆垃圾处理发展趋势 一、概述 秸秆是成熟农作物 ...

建议关注：盈峰环境、聚光科技、永兴股份、瀚蓝环境、海螺创业等 政策鼓励绿电直连，算电一体化大有可为 【广发环保 郭鹏】W22观点：绿电直连下的固废机遇——算电一体化 建议关注：盈峰环境、聚光科技、永兴股份、瀚蓝环境、海螺创业等 政策鼓励绿电直连，算电一体化大有可为 本期两部委发布《关于有序推动绿电直连发展有关事项的通知》，鼓励包括生物质（含垃圾焚烧）在内的绿电推 动直连、就近消纳，并明确不断提高自发自用比例，2030年前不低于35%，也#给予垃圾焚烧项目绿电直售的政策 背书。 垃圾焚烧作 【广发环保 郭鹏】W22观点：绿电直连下的固废机遇——算电一体化 而国产企业近年研发、生产能力持续提升，部分品类齐全，具备高端化研发能力的企业有望在此浪潮中脱颖而 出，建议关注#聚光科技、皖仪科技、莱伯泰科和海能技术等。 无人环卫持续推进，主流企业布局加速 近期无人物流备受市场关注，主要系L4级别自动驾驶在限定区域落地可能性较高。 而环卫同样满足固定场景及路线、低速等特征，具备较早应用推广的希望。 我们认为"环卫自动化"趋势更多是对于行业商业模式的优化：一方面，环卫公司已在尝试装备与无人化结合，他 们仍是实际环卫服务运行的重 ...

Core Viewpoint - The company operates as an employee stock ownership platform for Conch Group, with key assets in Conch Cement and waste incineration, projecting a net profit of 2.02 billion yuan for 2024, primarily driven by Conch Cement's investment returns and waste incineration profits [1][2]. Group 1: Company Structure and Ownership - The company is structured with no controlling shareholder, with major stakes held by Anhui Haichuang (10.98%), Conch Group (5.39%), and Conch Cement (4.99%) [1]. - The core assets include an 18% stake in Conch Cement and waste incineration assets [1]. Group 2: Financial Performance - The projected net profit for 2024 is 2.02 billion yuan, with Conch Cement contributing 1.316 billion yuan (65%) and waste incineration contributing 660 million yuan (33%) [1]. - The company anticipates a steady increase in operating cash flow to 2 billion yuan in 2024, with potential further growth if national subsidies exceed 500 million yuan annually [2]. Group 3: Waste Incineration Operations - The company leads the industry in waste incineration capacity, with operational capacity of 48,100 tons/day and a utilization rate of 105% expected in 2024 [1]. - The waste incineration segment is projected to achieve a profit of 722 million yuan if national subsidies are included, enhancing overall profitability [1]. Group 4: Future Projections - The company expects net profits to reach 2.093 billion yuan in 2025, 2.117 billion yuan in 2026, and 2.136 billion yuan in 2027, alongside significant improvements in free cash flow [3]. - A conservative valuation of the company is estimated at 15.4 billion yuan, indicating a potential upside of 22% from the current market value [3].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][8] Core Views - The company is expected to see a turning point in profits and cash flow, with potential for increased dividends [2][8] - The company’s core assets include an 18% stake in Conch Cement and waste incineration assets, with significant contributions to net profit from these segments [7][31] - The report highlights the company's strong operational metrics in waste incineration and a significant reduction in capital expenditures (Capex), leading to improved free cash flow [7][42] Financial Data and Profit Forecast - Revenue projections for the company show a decline from 8,015 million in 2023 to 6,128 million in 2025E, with a projected net profit of 2,093 million in 2025E [6][8] - The company anticipates free cash flow to improve significantly, reaching 15 billion in 2025, 21 billion in 2026, and 21 billion in 2027, contingent on government subsidies [8][42] - The report estimates a conservative valuation of 154 billion for the company, indicating a 22% upside from the current market capitalization [8] Waste Incineration Business - The company leads the industry in waste incineration capacity, with operational capacity of 48,100 tons/day and a utilization rate of 105% in 2024 [7][43] - The waste incineration segment is expected to generate stable cash flows, with a projected operating profit of 7.22 billion if government subsidies are accounted for [7][54] Conch Cement Assets - The company is projected to receive 500 million in cash dividends from its stake in Conch Cement, with a potential revaluation of these equity assets [7][66] - The report notes that Conch Cement's profitability is expected to stabilize due to industry self-discipline and declining energy costs [7][64] Dividend Potential - The company plans to double its dividend to 660 million in 2024, with a dividend payout ratio increasing from 13% to 33% [56] - The report emphasizes the market's underestimation of the company's dividend potential, driven by improved cash flow and reduced capital expenditures [10][11]

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the fiscal year, representing a 15% year-over-year growth[3]. - The company reported a revenue of RMB 6,270.74 million for 2024, a decrease of 21.76% compared to RMB 8,015.21 million in 2023[29]. - The pre-tax profit for 2024 was RMB 2,249.67 million, down from RMB 2,872.10 million in 2023, reflecting a decline of 21.66%[10]. - The net profit attributable to equity shareholders for 2024 was RMB 2,019.56 million, a decrease of 18.00% from RMB 2,463.71 million in 2023[10]. - Revenue from waste disposal was RMB 4,878.83 million, a decrease of 20.75% year-on-year, primarily due to a reduction in construction projects[59]. - Revenue from energy-saving equipment dropped by 42.72% to RMB 817.83 million, attributed to a decrease in orders[59]. - Revenue from new energy business surged by 176.68% to RMB 289.66 million, driven by active market expansion[59]. - The gross profit margin for waste disposal increased to 37.63%, up 8.95 percentage points from the previous year[63]. - Other net income decreased by 49.76% to RMB 208.32 million, mainly due to reduced government subsidies and interest income[65]. - Administrative expenses rose by 14.93% to RMB 703.59 million, primarily due to increased employee compensation from more operational companies[66]. - Financial expenses decreased by 2.77% to RMB 707.78 million, influenced by lower bank loan interest rates[67]. - The gross margin for energy-saving equipment increased by 7.56 percentage points year-on-year to 26.17%, primarily due to lower gross margins from overseas business orders in the same period last year[68]. - The gross margin for new building materials decreased by 17.47 percentage points year-on-year to -5.68%, mainly due to market impacts leading to lower selling prices and inventory provisions[68]. Operational Highlights - User data indicates a 20% increase in active users, reaching 5 million by the end of the reporting period[3]. - New product launches are expected to contribute an additional 200 million RMB in revenue, with a focus on eco-friendly technologies[3]. - The company has signed contracts for 131 projects across 23 provinces, including 101 waste-to-energy projects[30]. - The company launched a 15MW/30.562MWh energy storage project, which is now operational, aimed at cost reduction and efficiency improvement[23]. - The company processed approximately 15.8 million tons of municipal solid waste, representing a year-on-year increase of 15%[31]. - The company generated approximately 5.12 billion kWh of electricity from waste, also reflecting a 15% year-on-year growth[31]. - The average electricity generation per ton of waste was approximately 326 kWh[31]. - The company sold approximately 377,000 tons of steam, which is an increase of 32,000 tons year-on-year[31]. - The company sold around 488,000 green power certificates during the reporting period[31]. - The company has 14 waste-to-energy projects that have been connected to the grid as of the end of the reporting period[31]. - The company has multiple waste-to-energy projects under construction, with capacities ranging from 11,000 tons per year (300 tons per day) to 49,000 tons per year (1,350 tons per day) scheduled for completion between 2024 and 2026[39]. - The company has several projects in the approval stage, including a 18,000 tons per year (500 tons per day) project in Shanxi Hunyuan[39]. - The company has a total of 1,729,000 tons per year (48,100 tons per day) of waste processing capacity from its operational projects[38]. - The company is actively expanding its waste processing capabilities with new projects in various provinces, including Yunnan, Guizhou, and Hebei, with capacities ranging from 11,000 to 22,000 tons per year[37][38]. Strategic Initiatives - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion RMB[3]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share by 2025[3]. - A strategic acquisition of a local competitor is anticipated to enhance operational efficiency and increase market penetration[3]. - Research and development investments are set to increase by 30%, focusing on innovative materials and sustainable practices[3]. - The company is implementing new strategies to enhance customer engagement, which is expected to improve retention rates by 15%[3]. - The company aims to enhance its market presence through strategic expansions and new technology developments in waste disposal and energy recovery[39]. - The company is focused on increasing its operational efficiency and sustainability through the development of new waste-to-energy technologies and processes[39]. Corporate Governance - The board of directors emphasized the importance of corporate governance and sustainability in future business strategies[3]. - The board of directors has confirmed compliance with the corporate governance code and has been actively improving governance structures to enhance accountability and transparency[92]. - The board consists of a diverse group of members, ensuring independent oversight and representation of shareholder interests[102]. - The board has adopted a diversity policy since December 3, 2013, and revised it on December 13, 2018, to enhance company performance through diverse board member composition[133]. - The board has a diverse range of expertise, enhancing its operational effectiveness[113]. - The company has established a clear process for the appointment and re-election of directors, ensuring compliance with governance standards[119]. - The Audit Committee reviewed the independence of external auditors and considered their appointment for the annual audit services[127]. - The company has adopted a director nomination policy that includes selection criteria and processes for appointing directors[130]. Employee and Talent Management - The total number of employees as of December 31, 2024, is 6,607, an increase from 6,225 employees as of December 31, 2023, representing a growth of approximately 6.1%[90]. - The total employee compensation, including directors' remuneration, amounted to RMB 855.3 million for the reporting period, compared to RMB 702.5 million in 2023, reflecting an increase of about 21.8%[90]. - The company emphasizes the importance of a competitive compensation level and comprehensive welfare guarantees to enhance employee satisfaction and productivity[90]. - The company has adopted a diversified talent development strategy, focusing on internal training, school-enterprise exchanges, and social recruitment to optimize human resource structure[90]. - The number of employees with a bachelor's degree rose from 1,476 in 2023 to 1,690 in 2024, marking an increase of about 14.5%[197]. - The group is focused on enhancing employee qualifications, with the number of master's degree holders increasing from 80 in 2023 to 83 in 2024, a growth of about 3.8%[197]. Risk Management - The company has established a comprehensive risk management framework to identify and manage significant risks related to its business operations[148]. - During the reporting period, the company focused on monitoring five categories of risks: strategic, market, operational, financial, and legal[149]. - The company conducted self-assessments of its risk management and internal control systems in July and December 2024, with no significant internal control deficiencies reported[149]. - The board confirmed the effectiveness of the risk management and internal control systems, including financial, operational, and compliance monitoring[150]. - The company has implemented a risk management plan for 2024, emphasizing the importance of internal control in key business areas such as asset management and financial reporting[149]. Shareholder Communication and Dividends - The board approved a special dividend of HKD 0.10 per share, totaling approximately HKD 179.20 million, to be paid on November 8, 2024[174]. - As of December 31, 2024, the company's distributable reserves amounted to RMB 703.9 million, a significant increase from RMB 103.0 million on December 31, 2023[174]. - The board proposed a final dividend of HKD 0.30 per share for the year ending December 31, 2024, up from HKD 0.20 per share in 2023[174]. - The company has established multiple communication channels with shareholders to ensure transparency and timely information disclosure[163]. - The board of directors has reviewed the implementation of shareholder communication policies, confirming their effectiveness during the reporting period[165].

Financial Performance - For the fiscal year ending December 31, 2024, the group's revenue was approximately RMB 6,270.74 million, a decrease of 21.76% compared to RMB 8,015.21 million in 2023[4] - The net profit attributable to equity shareholders for the fiscal year was approximately RMB 2,019.56 million, down 18.03% from RMB 2,463.71 million in 2023[4] - The main net profit attributable to equity shareholders, excluding profits from joint ventures, was approximately RMB 703.50 million, a decrease of 12.20% from RMB 801.24 million in 2023[4] - The group's gross profit for the fiscal year was approximately RMB 2,175.42 million, compared to RMB 2,178.71 million in 2023[5] - The operating profit for the fiscal year was approximately RMB 1,641.39 million, down from RMB 1,937.55 million in 2023[5] - The total comprehensive income attributable to equity shareholders for the fiscal year was approximately RMB 1,981.46 million, compared to RMB 2,149.66 million in 2023[7] - The basic earnings per share for the fiscal year was RMB 1.17, down from RMB 1.36 in 2023[5] - The group reported a total comprehensive income of RMB 2,081.01 million for the fiscal year, compared to RMB 2,368.67 million in 2023[7] - The reportable segment's profit before tax for 2024 was RMB 2,249,669,000, compared to RMB 2,872,104,000 in 2023, indicating a decrease of about 21.7%[25] - The company's profit before tax for 2024 is CNY 2,249,669,000, compared to CNY 2,872,104,000 for 2023, indicating a decrease of approximately 21.7%[38] Revenue Breakdown - Revenue from waste disposal projects under BOT arrangements with local government institutions amounted to RMB 2,317,185,000, down from RMB 3,810,860,000 in 2023, representing a decline of about 39.1%[18] - Revenue recognized over time was RMB 5,192,613,000, compared to RMB 6,255,792,000 in 2023, indicating a decrease of approximately 17.0%[19] - The waste disposal segment generated revenue of RMB 3,689,254,000, an increase from RMB 3,239,085,000 in the previous year, reflecting a growth of about 13.9%[18] - The new energy business reported revenue of RMB 289,664,000, significantly up from RMB 104,693,000 in 2023, marking an increase of approximately 176.5%[18] - The company’s total income from customer contracts was RMB 6,056,305,000, down from RMB 7,791,096,000 in 2023, representing a decrease of approximately 22.2%[19] - Revenue from external customers in the port segment was RMB 5,696,661,000 for 2024, down from RMB 7,583,707,000 in 2023, a decline of approximately 24.9%[22] - The logistics services segment reported revenue of RMB 182,353,000 in 2024, compared to RMB 208,660,000 in 2023, reflecting a decrease of about 12.6%[22] - The new materials segment generated revenue of RMB 102,059,000 in 2024, a slight increase from RMB 118,151,000 in 2023, representing a decrease of approximately 13.6%[22] - Revenue from energy-saving equipment dropped significantly by 42.72% year-on-year to RMB 817.83 million, due to a reduction in orders[72] - Revenue from the Chinese mainland accounted for 95.10% of total revenue, totaling RMB 5,963.64 million, down 16.91% year-on-year[74] Dividend and Shareholder Information - The board proposed a final cash dividend of HKD 0.30 per share, with a total annual dividend of HKD 0.40 per share, including a special dividend announced in September 2024[4] - The proposed final dividend per ordinary share is HKD 0.30 for 2024, up from HKD 0.20 in 2023, which is a 50% increase[42] - The total dividend payment for 2024 is approximately HKD 537,612,000, equivalent to about CNY 497,829,000, compared to HKD 361,989,000 (CNY 328,042,000) in 2023, indicating a rise of around 51.6%[42] - The annual general meeting of shareholders is scheduled for June 25, 2025, to discuss the proposed dividend and other matters[106] - The company will temporarily suspend share registration procedures from June 18, 2025, to June 25, 2025, to determine shareholder eligibility for voting at the annual general meeting[107] - A temporary suspension of share registration will also occur from July 7, 2025, to July 11, 2025, to determine eligibility for the final dividend[108] - The company repurchased a total of 17,904,500 shares during the reporting period, with a total cost of HKD 97,025,815[110] Assets and Liabilities - Total assets increased to RMB 76,074,770 thousand in 2024 from RMB 74,012,694 thousand in 2023, representing a growth of approximately 2.8%[11] - Non-current assets rose to RMB 74,510,651 thousand in 2024, compared to RMB 72,338,065 thousand in 2023, indicating an increase of about 3.0%[10] - Current liabilities decreased to RMB 6,251,413 thousand in 2024 from RMB 6,447,685 thousand in 2023, reflecting a decline of approximately 3.0%[11] - Total equity increased to RMB 49,176,632 thousand in 2024, up from RMB 47,752,718 thousand in 2023, marking a growth of around 3.0%[11] - The company's total liabilities increased to RMB 26,898,138 thousand in 2024 from RMB 26,259,976 thousand in 2023, representing a growth of about 2.4%[11] - Total assets as of December 31, 2024, were RMB 82,326,183,000, compared to RMB 80,460,379,000 in 2023, showing an increase of about 2.3%[26] - Total liabilities as of December 31, 2024, were RMB 33,149,551,000, compared to RMB 32,707,661,000 in 2023, indicating an increase of approximately 1.3%[26] Cash Flow and Financing - The net cash generated from operating activities during the reporting period was RMB 2,024.50 million, an increase of RMB 38.74 million year-on-year, mainly due to increased revenue from waste-to-energy projects[86] - The net cash used in investing activities was RMB 2,427.03 million, a decrease of RMB 2,147.35 million year-on-year, primarily due to reduced investment expenditures during the reporting period[87] - The net cash used in financing activities was RMB 423.24 million, an increase of RMB 1,801.41 million year-on-year, mainly due to a decrease in net proceeds from bank loans and the issuance of medium-term notes raising RMB 2.7 billion in 2023[88] - As of December 31, 2024, the group's bank loan balance was RMB 25,515.06 million, an increase of RMB 1,193.86 million compared to the end of the previous year, primarily due to new bank loans added during the reporting period[84] Operational Highlights - The company has signed 131 projects across 23 provinces and municipalities, including 101 waste-to-energy projects[56] - The company aims to enhance project operation quality and has completed price adjustment work for 6 waste disposal projects[57] - The company has achieved significant operational efficiency improvements in its waste disposal business through lean management practices[55] - The company is focusing on green and low-carbon development, aligning with national policies for sustainable economic growth[54] - The company has implemented various business strategies to enhance operational efficiency and reduce costs in the new energy materials sector[55] - The company has established a comprehensive management system for lithium battery recycling and resource utilization[55] - The group received approximately 1,835.7 million tons of municipal waste, representing a year-on-year increase of 15%[58] - The group processed approximately 1,570.8 million tons of municipal waste, also reflecting a year-on-year growth of 15%[58] - The online electricity generation reached approximately 5.12 billion kWh, marking a 15% increase compared to the previous year[58] - The average annual electricity generation per ton was approximately 326 kWh[58] Employee and Compensation - As of December 31, 2024, the total number of employees is 6,607, an increase from 6,225 employees on December 31, 2023, representing a growth of approximately 6.1%[99] - Total employee compensation, including director remuneration, amounted to approximately RMB 855.3 million for the reporting period, up from RMB 702.5 million in 2023, reflecting an increase of about 21.7%[99] Taxation and Compliance - The effective tax rate for the company's subsidiaries in China is 25%, with some qualifying companies benefiting from a reduced rate of 15%[37] - The company has recognized a provision for current tax in China of RMB 119,290,000 for 2024, compared to RMB 224,199,000 in 2023[34] - The company confirmed compliance with corporate governance standards as per the Listing Rules during the reporting period[113] Future Outlook - The company plans to deepen its focus on core business and enhance efficiency in 2025, aiming to improve its core competitiveness and ensure shareholder interests[101] - The company is committed to enhancing its core management advantages in waste-to-energy operations, aiming to improve operational efficiency and cash flow[102] - The new energy materials business will focus on high-end product R&D and market expansion, with an emphasis on optimizing processes and exploring partnerships with battery manufacturers[103] - The port logistics business will integrate internal and external resources to expand quality customer channels and ensure stable growth[104]

Financial Performance - Revenue for the first half of 2024 was RMB 3,134,976, a decrease of 29.35% compared to RMB 4,437,539 in the same period of 2023[24]. - Profit before tax for the first half of 2024 was RMB 1,251,579, down 39.40% from RMB 2,065,336 in the previous year[24]. - Net profit attributable to equity shareholders for the first half of 2024 was RMB 1,175,881, a decline of 35.32% from RMB 1,817,965 in the same period of 2023[24]. - The profit from associates for the first half of 2024 was RMB 701,120, a decrease of 44.76% from RMB 1,269,264 in the same period of 2023[24]. - The net profit from core operations attributable to equity shareholders was RMB 474,761, down 13.48% from RMB 548,701 in the previous year[24]. - The company achieved a revenue of RMB 3.135 billion, representing a year-on-year decline of 29.35%[26]. - The net profit attributable to equity shareholders was RMB 475 million, a year-on-year decrease of 13.48%[26]. - The waste disposal segment generated revenue of RMB 2,560.85 million, a decrease of 24.63% year-on-year, primarily due to a reduction in construction projects[52]. - The energy-saving equipment segment reported revenue of RMB 332.56 million, down 60.80% year-on-year, mainly due to a decrease in overseas orders[53]. - The new energy business achieved revenue of RMB 106.40 million, showing a significant increase of 259.08% year-on-year, driven by proactive market expansion[53]. - The gross profit margin for the waste disposal segment improved to 38.39%, up from 28.58% in the previous year[56]. - The group's gross profit margin for the reporting period was 36.71%, an increase of 10.10 percentage points year-on-year[57]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 81,902,307, reflecting a 1.79% increase from RMB 80,460,379 at the end of 2023[25]. - Total liabilities increased by 2.11% to RMB 33,397,214 as of June 30, 2024, compared to RMB 32,707,661 at the end of 2023[25]. - The equity attributable to equity shareholders was RMB 47,097,624, up 1.69% from RMB 46,315,519 at the end of 2023[25]. - Cash and cash equivalents at the end of the reporting period were RMB 3,163.42 million, with a net increase of RMB 68.44 million[67]. - The total number of employees increased to 6,386 as of June 30, 2024, compared to 5,814 on June 30, 2023, representing a growth of approximately 9.8%[74]. - Total employee compensation, including directors' remuneration, was approximately RMB 367.3 million for the reporting period, up from RMB 288.14 million in the same period last year, reflecting a year-on-year increase of about 27.5%[74]. - The company's total liabilities were RMB 33,397.21 million, up from RMB 32,707.66 million at the end of the previous year[62]. - The company's net asset value reached RMB 48,505,093 thousand, compared to RMB 47,752,718 thousand, showing an increase of 1.57%[103]. Operational Highlights - The company has signed 131 projects across 23 provinces and municipalities, including 101 waste-to-energy projects[27]. - The waste-to-energy segment received approximately 9.011 million tons of municipal waste, an increase of 19% year-on-year[28]. - The company processed about 7.786 million tons of municipal waste, reflecting an 18% year-on-year growth[28]. - The on-grid electricity generated was approximately 2.53 billion kWh, marking a 17% increase year-on-year[28]. - The average electricity generation per ton was approximately 326 kWh[28]. - The company is actively pursuing price adjustments for waste disposal fees, having completed adjustments for 3 projects[28]. - The company is focusing on enhancing operational efficiency through professional and refined management practices[27]. - The company is committed to green and sustainable development, aligning with China's economic transformation goals[26]. - The company has a total processing capacity of 1,601,000 tons per year (44,550 tons per day) across various projects, with several projects under construction and expected to be operational by 2024[33]. - The company is expanding its market presence with new projects in Vietnam, including Bac Ninh with a capacity of 110,000 tons/year (300 tons/day) expected to be completed by November 2023[33]. Strategic Outlook - The company is focusing on strategic expansion and new product development to enhance future performance[24]. - Management indicated a cautious outlook for the remainder of 2024 due to market conditions and competition[24]. - The company plans to enhance competitiveness in the new energy materials sector by focusing on personnel structure, production costs, and product performance[48]. - The group aims to enhance core competitiveness and promote healthy development across multiple industry sectors in the second half of 2024[46]. - The strategic committee is focused on long-term development strategies and sustainable policies, indicating a commitment to future growth despite current challenges[95]. Shareholder Information - The board has decided not to declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[75]. - Major shareholders include Conch Union with a 12.04% stake, Anhui Haichuang Group with a 11.27% stake, and Conch Group with a 5.12% stake as of June 30, 2024[76]. - The company aims to maintain shareholder interests through its share repurchase strategy[85]. - The company repurchased a total of 17,904,500 shares during the reporting period, at a total cost of HKD 97,025,815[85]. - The company approved a final dividend of HKD 0.20 per share, totaling approximately RMB 327,265,000, compared to RMB 670,269,000 for the previous year, indicating a decrease of about 51.1%[152]. - The board of directors announced a meeting on September 4, 2024, to discuss the declaration and payment of a special dividend to shareholders[180].