| 证券代码：600461 | 证券简称：洪城环境 | 公告编号：临 2025－040 | | --- | --- | --- | | 债券代码：110077 | 债券简称：洪城转债 | | 江西洪城环境股份有限公司 第八届监事会第二十一次临时会议决议公告 本公司监事会及全体监事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 江西洪城环境股份有限公司（以下简称"公司"）第八届监事会第二十一次 临时会议于 2025 年 8 月 26 日上午十一时在公司十五楼会议室召开。应出席会议 监事 3 人，到会监事 3 人，符合《公司法》《证券法》等法律、法规和《公司章 程》的有关规定，本次会议合法有效。 (三)在公司监事会提出本意见前，我们没有发现参与 2025 年半年度报告编 制和审议的人员有违反保密规定的行为。 因此，监事会保证公司 2025 年半年度报告所披露的信息真实、准确、完整, 承诺其中不存在虚假记载、误导性陈述或重大遗漏,并对其内容的真实性、准确 性和完整性承担个别及连带责任。 (其中：同意票 3 票；反对票 0 票；弃权票 0 票) 二、 ...

| 证券代码：600461 | 证券简称：洪城环境 | 公告编号：临 | 2025－039 | | --- | --- | --- | --- | | 债券代码：110077 | 债券简称：洪城转债 | | | 江西洪城环境股份有限公司 第八届董事会第二十四次临时会议决议公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 江西洪城环境股份有限公司(以下简称"公司")第八届董事会第二十四次临 时会议于 2025 年 8 月 26 日 9:30 在公司三楼会议室以现场和通讯相结合的方式 召开。本次会议通知已于 2025 年 8 月 22 日起以专人送出方式、电话方式及电子 邮件方式发送。本次会议应出席会议的董事 11 人，实际出席会议的董事 11 人。 本次会议的召开符合《公司法》和《公司章程》及其他有关法律法规的规定，会 议合法有效。 本次会议由董事长邵涛先生主持，经各位董事的认真审议和表决，作出如下 决议： 一、审议通过了《关于<江西洪城环境股份有限公司 2025 年半年度报告及其 摘要>的议案》 该事项已经公司第八届 ...

关于江西洪城环境股份有限公司 会计估计变更事项专项说明之 审核报告 中证天通会计师事务所（特殊普通合伙） 审核报告 中证天通（2025）证专审 21120015 号 江西洪城环境股份有限公司全体股东： 我们接受委托，对后附的江西洪城环境股份有限公司（以下简称"贵公司"） 管理层编制的《关于江西洪城环境股份有限公司会计估计变更事项专项说明》 （以下简称"会计估计变更事项专项说明"）进行了专项审核。 一、管理层和治理层的责任 按照《企业会计准则第 28 号—会计政策、会计估计变更和差错更正》以 及上海证券交易所《上海证券交易所股票上市规则》、《上海证券交易所上市 公司自律监管指南第 2 号—业务办理》及《上海证券交易所上市公司自律监管 指南第 1 号—公告格式》之第三十三号《会计差错更正、会计政策或会计估计 变更公告》的规定，真实、准确地编制并披露会计估计变更情况专项说明，以 使其不存在虚假记载、误导性陈述或重大遗漏是贵公司管理层的责任。 治理层负责监督会计估计变更事项专项说明编制过程。 二、注册会计师的责任 我们的责任是在实施审核工作的基础上对贵公司编制的会计估计变更事 项专项说明发表审核意见。 中证天通会计师 ...

[Important Notice](index=2&type=section&id=Important%20Notice) The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, which is unaudited and contains forward-looking statements not constituting substantive commitments - The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[3](index=3&type=chunk) - This semi-annual report is unaudited[5](index=5&type=chunk) - There are no instances of non-operating funds being occupied by controlling shareholders or other related parties, nor any unauthorized external guarantees[7](index=7&type=chunk)[8](index=8&type=chunk) - This semi-annual report addresses industry and market risk factors, detailed in the "Management Discussion and Analysis" section on "Potential Risks"[7](index=7&type=chunk) [Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) [Definitions of Common Terms](index=4&type=section&id=Definitions%20of%20Common%20Terms) This section defines key terms such as "Hongcheng Environment," "Water Group," and "Municipal Public Group" to ensure accurate understanding of the report - "Hongcheng Environment/Hongcheng Water/Company/The Company" refers to Jiangxi Hongcheng Environment Co., Ltd[12](index=12&type=chunk) - "Water Group/Controlling Shareholder" refers to Nanchang Water Group Co., Ltd[12](index=12&type=chunk) - "Municipal Public Group/Municipal Holdings" refers to Nanchang Municipal Public Group Co., Ltd[12](index=12&type=chunk) [Section II Company Profile and Key Financial Indicators](index=4&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) [Company Information](index=4&type=section&id=Company%20Information) The company, Jiangxi Hongcheng Environment Co., Ltd., is listed on the Shanghai Stock Exchange under stock code 600461, with Shao Tao as its legal representative - The company's Chinese name is Jiangxi Hongcheng Environment Co., Ltd., abbreviated as Hongcheng Environment, with Shao Tao as its legal representative[14](index=14&type=chunk) - The company's shares are listed on the Shanghai Stock Exchange under stock code 600461, with the stock abbreviation Hongcheng Environment, previously Hongcheng Water[19](index=19&type=chunk) [Contact Person and Information](index=4&type=section&id=Contact%20Person%20and%20Information) Deng Xunyuan serves as the Board Secretary and Gui Lei as the Securities Affairs Representative, both reachable at 0791-85234708 at 1289 Lüyin Road, Honggutan District, Nanchang City, Jiangxi Province - The Board Secretary is Deng Xunyuan, and the Securities Affairs Representative is Gui Lei[15](index=15&type=chunk) - Contact address: Jiangxi Province, Nanchang City, Honggutan District, Lüyin Road 1289; Tel/Fax: 0791-85234708[15](index=15&type=chunk) [Brief Introduction to Information Disclosure and Document Custody Location Changes](index=5&type=section&id=Brief%20Introduction%20to%20Information%20Disclosure%20and%20Document%20Custody%20Location%20Changes) The company's designated information disclosure newspapers are "Shanghai Securities News" and "China Securities Journal," with reports available on www.sse.com.cn, and no changes occurred in the document custody location during the reporting period - The company's designated information disclosure newspapers are "Shanghai Securities News" and "China Securities Journal"[18](index=18&type=chunk) - The website address for the semi-annual report is www.sse.com.cn[18](index=18&type=chunk) - The company's semi-annual report is kept at the Board of Directors' Office, with no changes during the reporting period[18](index=18&type=chunk) [Company's Key Accounting Data and Financial Indicators](index=5&type=section&id=Company's%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's operating revenue decreased by 6.54% to 3.687 billion Yuan, while net profit attributable to shareholders increased by 0.68% to 609 million Yuan, with operating cash flow significantly down by 43.39% Key Accounting Data (Jan-Jun 2025 vs. Prior Year Period) | Indicator | Current Period (Jan-Jun) (Yuan) | Prior Year Period (Yuan) | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,687,269,054.46 | 3,945,445,711.61 | -6.54 | | Total Profit | 818,350,269.55 | 837,614,301.69 | -2.30 | | Net Profit Attributable to Shareholders of Listed Company | 608,682,364.92 | 604,567,527.66 | 0.68 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains and Losses) | 605,003,400.84 | 603,151,541.66 | 0.31 | | Net Cash Flow from Operating Activities | 344,783,618.32 | 609,025,990.14 | -43.39 | | **End of Current Reporting Period vs. End of Prior Year** | | | | | Net Assets Attributable to Shareholders of Listed Company | 9,405,240,445.38 | 9,393,686,969.51 | 0.12 | | Total Assets | 24,749,225,186.69 | 24,737,421,971.94 | 0.05 | Key Financial Indicators (Jan-Jun 2025 vs. Prior Year Period) | Indicator | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.47 | 0.51 | -7.84 | | Diluted Earnings Per Share (Yuan/share) | 0.43 | 0.45 | -4.44 | | Basic Earnings Per Share (Excluding Non-recurring Gains and Losses) (Yuan/share) | 0.47 | 0.51 | -7.84 | | Weighted Average Return on Net Assets (%) | 6.34 | 7.19 | Decreased by 0.85 percentage points | | Weighted Average Return on Net Assets (Excluding Non-recurring Gains and Losses) (%) | 6.30 | 7.18 | Decreased by 0.88 percentage points | Non-recurring Gains and Losses Items and Amounts | Non-recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Gains and Losses from Disposal of Non-current Assets | 158,731.42 | | Government Subsidies Recognized in Current Profit or Loss (Excluding those with continuous impact) | 8,360,608.80 | | Fund Occupation Fees Received from Non-financial Enterprises Recognized in Current Profit or Loss | -1,741,722.84 | | Other Non-operating Income and Expenses | 687,796.94 | | Less: Income Tax Impact | -3,484,929.04 | | Impact on Minority Shareholders' Equity (After Tax) | -301,521.20 | | Total | 3,678,964.08 | - Value-added tax immediate refund amounted to **9,700,336.72 Yuan**, primarily from VAT refunds for subsidiary waste treatment and power generation businesses[26](index=26&type=chunk) [Section III Management Discussion and Analysis](index=8&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) [Explanation of the Company's Industry and Main Business Operations During the Reporting Period](index=8&type=section&id=Explanation%20of%20the%20Company's%20Industry%20and%20Main%20Business%20Operations%20During%20the%20Reporting%20Period) The company operates in the ecological and environmental protection industry, focusing on high-quality development, pollution reduction, and carbon emission reduction, with core businesses in water supply, wastewater treatment, gas energy, and solid waste disposal - The ecological and environmental protection industry is transitioning from traditional end-of-pipe treatment to comprehensive pollution reduction, carbon reduction, and cleaner production, with national policies actively promoting ecological industrialization and industrial ecology[29](index=29&type=chunk) - The company focuses on "improving operating cash collection rate, project leadership, and safety and stability" to expand into new businesses such as piped direct drinking water, water utilities + photovoltaics, integrated solid and hazardous waste disposal, and watershed environmental governance[30](index=30&type=chunk) - The company has integrated GIS, SCADA, DMA, and other data platforms and auxiliary systems in the water supply industry to enhance operational management quality and efficiency[31](index=31&type=chunk) - The company's main businesses include tap water supply (Nanchang City concession, 10 water plants, serving 4 million people), wastewater treatment (over **80% market share in Jiangxi Province**, 109 wastewater treatment plants), gas energy (largest user base in Jiangxi Province, **1.4244 million natural gas users**), solid waste disposal (Nanchang's largest waste-to-energy project, **2,400 tons/day disposal capacity**), and other engineering construction and design services[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) [Discussion and Analysis of Operations](index=10&type=section&id=Discussion%20and%20Analysis%20of%20Operations) The company maintained steady growth and improved development quality with a robust financial structure, achieving 3.687 billion Yuan in operating revenue and 609 million Yuan in net profit attributable to shareholders - During the reporting period, operating revenue reached **3.687 billion Yuan**, a year-on-year decrease of **6.54%**[35](index=35&type=chunk) - Net profit attributable to shareholders of the listed company reached **609 million Yuan**, a year-on-year increase of **0.68%**[35](index=35&type=chunk) - As of mid-2025, the company's total assets were **24.749 billion Yuan**, an increase of **0.05%** from the end of the previous year; net assets were **10.576 billion Yuan**, an increase of **0.19%** from the end of the previous year[35](index=35&type=chunk) - The company is led by businesses such as tap water, wastewater treatment, gas energy, solid waste disposal, and engineering, adopting a development and operation model encompassing financing, investment, construction, and operation and maintenance, while actively exploring other sub-sectors of the environmental protection industry[35](index=35&type=chunk) [Analysis of Core Competitiveness During the Reporting Period](index=10&type=section&id=Analysis%20of%20Core%20Competitiveness%20During%20the%20Reporting%20Period) The company's core competitiveness stems from its regional leadership, stable operations, skilled management, innovation-driven approach, and strong brand reputation - Regional leadership advantage: The company holds leading positions in Nanchang urban water supply, wastewater treatment (over **80% market share**), domestic waste disposal (over **60%**), gas supply (over **90%**), and vehicle natural gas supply[36](index=36&type=chunk) - Stable operation advantage: Adopting a "financing, investment, construction, management, operation" integrated business system, core businesses operate under 25 to 30-year concession agreements, ensuring high exclusivity, sustainability, stability, and abundant cash flow[37](index=37&type=chunk) - Management talent advantage: The management team is young, professional, and knowledgeable, boasting the first postdoctoral research workstation and provincial enterprise technology center in Jiangxi Province's water supply industry[38](index=38&type=chunk) - Innovation-driven advantage: Utilizing information technology to enhance the intelligent management platform for smart drainage, the company has fostered several national high-tech enterprises and accumulated over a hundred national intellectual property rights[38](index=38&type=chunk) - Brand heritage advantage: Balancing livelihood protection with economic benefits, the company steadily ranks among the nation's top-tier integrated environmental industry operators through a "industry + capital" dual-wheel drive strategy[39](index=39&type=chunk) [Major Operating Conditions During the Reporting Period](index=11&type=section&id=Major%20Operating%20Conditions%20During%20the%20Reporting%20Period) This section details the company's operating performance, including financial statement changes, asset-liability status, and the performance of major subsidiaries, highlighting a decrease in operating revenue but an increase in net profit attributable to the parent company Analysis of Changes in Financial Statement Items (Jan-Jun 2025 vs. Prior Year Period) | Item | Amount for Current Period (Yuan) | Amount for Prior Year Period (Yuan) | Change Percentage (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,687,269,054.46 | 3,945,445,711.61 | -6.54 | | Operating Costs | 2,456,891,150.35 | 2,675,552,043.06 | -8.17 | | Selling Expenses | 102,619,814.90 | 103,320,932.37 | -0.68 | | Administrative Expenses | 131,569,832.72 | 151,462,356.47 | -13.13 | | Financial Expenses | 83,857,586.12 | 101,780,467.71 | -17.61 | | Research and Development Expenses | 57,352,404.51 | 53,885,145.25 | 6.43 | | Net Cash Flow from Operating Activities | 344,783,618.32 | 609,025,990.14 | -43.39 | | Net Cash Flow from Investing Activities | -409,038,912.90 | -1,101,833,820.55 | 62.88 | | Net Cash Flow from Financing Activities | -340,593,755.21 | 417,442,322.35 | -181.59 | - The change in net cash flow from operating activities was primarily due to decreased cash received from sales of goods and services, and increased cash paid for various taxes and fees[41](index=41&type=chunk) Changes in Assets and Liabilities (End of Current Reporting Period vs. End of Prior Year) | Item Name | Balance at End of Current Period (Yuan) | Percentage of Total Assets at End of Current Period (%) | Balance at End of Prior Year (Yuan) | Percentage of Total Assets at End of Prior Year (%) | Change Percentage from End of Prior Year (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Prepayments | 136,162,298.73 | 0.55 | 206,371,865.78 | 0.83 | -34.02 | | Inventories | 328,741,968.44 | 1.33 | 246,334,503.97 | 1.00 | 33.45 | | Notes Payable | 102,380,758.52 | 0.41 | 252,410,292.44 | 1.02 | -59.44 | | Advances from Customers | 80,887.63 | 0.00 | 31,110.58 | 0.00 | 160.00 | | Dividends Payable | 981,024,355.59 | 3.96 | 455,409,884.77 | 1.84 | 115.42 | - Prepayments decreased by **34.02%**, mainly due to reduced advance payments for gas purchases; inventories increased by **33.45%**, primarily due to increased engineering procurement inventories; dividends payable increased by **115.42%**, mainly due to increased common stock dividends[45](index=45&type=chunk)[46](index=46&type=chunk) Information on Major Subsidiaries and Investees with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangxi Hongcheng Water Environmental Protection Co., Ltd. | Subsidiary | Water environmental pollution control services | 2,801,859,956.94 | 11,818,772,017.34 | 5,024,066,173.23 | 1,262,252,965.31 | 406,784,440.45 | 341,122,720.07 | | Jiangxi Dingyuan Ecological Environmental Protection Co., Ltd. | Subsidiary | Solid waste disposal | 200,000,000.00 | 3,291,253,477.65 | 1,384,113,328.31 | 419,510,607.66 | 92,790,004.43 | 75,453,630.79 | | Nanchang Gas Group Co., Ltd. | Subsidiary | Natural gas sales and installation | 100,000,000.00 | 2,641,482,531.58 | 1,329,557,883.32 | 1,075,151,563.32 | 52,120,923.71 | 36,737,981.97 | | Nanchang Water Group Secondary Water Supply Co., Ltd. | Subsidiary | Water supply and drainage pipeline and equipment installation | 40,000,000.00 | 502,971,113.42 | 106,997,305.88 | 146,301,031.48 | 55,752,920.15 | 41,770,658.52 | [Other Disclosures](index=22&type=section&id=Other%20Disclosures) The company faces risks from market uncertainty, policy changes, pricing adjustments, supply emergencies, and major shareholder control, actively implementing "quality and efficiency improvement" initiatives and committing to a minimum 50% cash dividend payout ratio - The company faces risks such as increased market uncertainty, policy and regulatory adjustments, timely price and fee adjustments, supply emergencies, and controlling shareholder influence[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - The company actively responded to the "Quality and Efficiency Improvement, High Returns" special action, committing to distribute no less than **50%** of the consolidated net profit attributable to parent company shareholders in cash annually for the next three consecutive years[60](index=60&type=chunk) - The company values investor communication, effectively conveying company value through earnings briefings and online collective investor reception days, and continuously strengthening market capitalization management[61](index=61&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=24&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) [Changes in Company Directors, Supervisors, and Senior Management](index=24&type=section&id=Changes%20in%20Company%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, Shao Tao resigned as General Manager, replaced by Cai Qiao, and Li Xiwen was elected as a new supervisor following Xiong Pingping's resignation - Shao Tao resigned as General Manager, and Cai Qiao was appointed as General Manager[63](index=63&type=chunk)[64](index=64&type=chunk) - Xiong Pingping resigned as supervisor, and Li Xiwen was elected as supervisor[63](index=63&type=chunk) [Profit Distribution or Capital Reserve Conversion Plan](index=24&type=section&id=Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The company's semi-annual report does not propose any profit distribution or capital reserve conversion plans - The proposed semi-annual profit distribution or capital reserve conversion plan is "No"[64](index=64&type=chunk) [Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=25&type=section&id=Status%20and%20Impact%20of%20Company%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) During the reporting period, the company had no progress or changes regarding equity incentive plans, employee stock ownership plans, or other employee incentive measures - The company has no progress or changes regarding equity incentive plans, employee stock ownership plans, or other employee incentive measures[65](index=65&type=chunk)[66](index=66&type=chunk) [Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=25&type=section&id=Environmental%20Information%20of%20Listed%20Companies%20and%20Their%20Major%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information%20by%20Law) The company has 85 subsidiaries on the environmental information disclosure list, operating in water pollution control, water supply, and solid waste disposal across various regions, with disclosure reports available - The company has a total of **85 subsidiaries** included in the list of enterprises required to disclose environmental information by law[66](index=66&type=chunk) - These enterprises primarily engage in water environmental pollution control services, tap water production and supply, solid waste disposal, and other businesses, distributed across various counties and cities in Jiangxi Province, as well as Zhejiang, Liaoning, and other regions[66](index=66&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk) [Specifics of Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work](index=29&type=section&id=Specifics%20of%20Consolidating%20and%20Expanding%20Poverty%20Alleviation%20Achievements%2C%20Rural%20Revitalization%2C%20and%20Other%20Work) During the reporting period, the company did not disclose specific details regarding its work on consolidating poverty alleviation achievements or rural revitalization - The company has no specific disclosures regarding its work on consolidating poverty alleviation achievements or rural revitalization[71](index=71&type=chunk) [Section V Significant Matters](index=30&type=section&id=Section%20V%20Significant%20Matters) [Fulfillment of Commitments](index=30&type=section&id=Fulfillment%20of%20Commitments) The company's actual controller, controlling shareholder, and other related parties are fulfilling multiple commitments, including resolving related-party transactions, maintaining independence, asset transfers, and avoiding horizontal competition, with Dingyuan Eco's 2024 performance commitment already met - Municipal Public Group commits to strictly reduce related-party transactions, avoid unauthorized occupation of company funds, assets, and resources, and maintain independence[75](index=75&type=chunk)[77](index=77&type=chunk)[87](index=87&type=chunk) - Water Group commits to recuse itself from voting on related-party transactions, reduce related-party transactions, avoid occupying company funds, assets, and resources, and urge the Secondary Water Supply Company to cease specific agency procurement services[82](index=82&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) - Dingyuan Eco's 2024 annual performance commitment has been fulfilled, with specific details disclosed[85](index=85&type=chunk) - The Bus Company commits to process land use rights certificates and property ownership certificates after the land mortgage expires[86](index=86&type=chunk) - Hongcheng Environment commits to focus on water-related engineering businesses, avoid expanding into areas that create horizontal competition, and separately account for the investments and returns of fundraising projects[90](index=90&type=chunk)[91](index=91&type=chunk) [Non-operating Funds Occupied by Controlling Shareholders and Other Related Parties During the Reporting Period](index=36&type=section&id=Non-operating%20Funds%20Occupied%20by%20Controlling%20Shareholders%20and%20Other%20Related%20Parties%20During%20the%20Reporting%20Period) During the reporting period, there were no instances of non-operating funds being occupied by controlling shareholders or other related parties - During the reporting period, there were no instances of non-operating funds being occupied by controlling shareholders or other related parties[93](index=93&type=chunk) [Illegal Guarantees](index=36&type=section&id=Illegal%20Guarantees) During the reporting period, the company had no instances of illegal guarantees - During the reporting period, the company had no instances of illegal guarantees[93](index=93&type=chunk) [Semi-Annual Report Audit Status](index=37&type=section&id=Semi-Annual%20Report%20Audit%20Status) This semi-annual report is unaudited - This semi-annual report is unaudited[94](index=94&type=chunk) [Changes and Handling of Matters Related to Non-Standard Audit Opinions in the Previous Annual Report](index=37&type=section&id=Changes%20and%20Handling%20of%20Matters%20Related%20to%20Non-Standard%20Audit%20Opinions%20in%20the%20Previous%20Annual%20Report) There were no changes or handling of matters related to non-standard audit opinions in the company's previous annual report - There were no changes or handling of matters related to non-standard audit opinions in the company's previous annual report[94](index=94&type=chunk) [Bankruptcy and Reorganization Matters](index=37&type=section&id=Bankruptcy%20and%20Reorganization%20Matters) During the reporting period, the company had no bankruptcy or reorganization matters - During the reporting period, the company had no bankruptcy or reorganization matters[94](index=94&type=chunk) [Significant Litigation and Arbitration Matters](index=37&type=section&id=Significant%20Litigation%20and%20Arbitration%20Matters) During the reporting period, the company had no significant litigation or arbitration matters - During the reporting period, the company had no significant litigation or arbitration matters[94](index=94&type=chunk) [Listed Company, Its Directors, Supervisors, Senior Management, Controlling Shareholders, and Actual Controllers Suspected of Violations, Penalties, and Rectification](index=37&type=section&id=Listed%20Company%2C%20Its%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20Controlling%20Shareholders%2C%20and%20Actual%20Controllers%20Suspected%20of%20Violations%2C%20Penalties%2C%20and%20Rectification) During the reporting period, the company, its directors, supervisors, senior management, controlling shareholders, and actual controllers were not involved in any suspected violations, penalties, or rectification situations - During the reporting period, the company, its directors, supervisors, senior management, controlling shareholders, and actual controllers were not involved in any suspected violations, penalties, or rectification situations[94](index=94&type=chunk) [Explanation of the Integrity Status of the Company, Its Controlling Shareholders, and Actual Controllers During the Reporting Period](index=37&type=section&id=Explanation%20of%20the%20Integrity%20Status%20of%20the%20Company%2C%20Its%20Controlling%20Shareholders%2C%20and%20Actual%20Controllers%20During%20the%20Reporting%20Period) During the reporting period, there was no explanation regarding the integrity status of the company, its controlling shareholders, or actual controllers - During the reporting period, there was no explanation regarding the integrity status of the company, its controlling shareholders, or actual controllers[94](index=94&type=chunk) [Significant Related-Party Transactions](index=37&type=section&id=Significant%20Related-Party%20Transactions) The company disclosed its 2025 annual routine related-party transaction forecast, with no subsequent changes, and no significant related-party transactions involving asset acquisitions, disposals, joint investments, or creditor-debtor relationships occurred during the reporting period - The company's 8th Board of Directors' 4th meeting approved the "Proposal on Jiangxi Hongcheng Environment Co., Ltd.'s 2025 Annual Routine Related-Party Transaction Forecast," with no subsequent progress or changes in implementation[94](index=94&type=chunk) - During the reporting period, the company did not engage in related-party transactions involving asset or equity acquisitions/disposals, significant joint external investments, or related-party creditor-debtor relationships[95](index=95&type=chunk)[96](index=96&type=chunk) [Significant Contracts and Their Performance](index=39&type=section&id=Significant%20Contracts%20and%20Their%20Performance) The company has multiple land and building lease contracts with its controlling shareholder, Water Group, mostly for 20-year terms, and provided 160 million Yuan in new guarantees for subsidiaries during the period, with a total outstanding guarantee balance of 3.398 billion Yuan, representing 36.18% of net assets Related-Party Leases (Company as Lessee) | Lessor Name | Leased Asset Description | Amount Involved in Leased Asset (Yuan) | Lease Start Date | Lease End Date | Is it a Related-Party Transaction | | :--- | :--- | :--- | :--- | :--- | :--- | | Water Group | Land (Chaoyang Water Plant) | 880,773.96 | March 12, 2022 | March 11, 2042 | Yes | | Water Group | Land (Qingyun Water Plant Phase I & II) | 1,860,577.44 | March 12, 2022 | March 11, 2042 | Yes | | Water Group | Land (Changleng Water Plant) | 371,033.64 | August 1, 2022 | July 31, 2042 | Yes | | Water Group | Land (Qingyun Water Plant Phase III) | 857,628.84 | April 29, 2025 | April 28, 2045 | Yes | | Water Group | Land (Hongjiao Island Water Plant) | 2,427,490.08 | January 1, 2014 | December 31, 2033 | Yes | | Water Group | Land (Chengbei Water Plant) | 1,938,678.84 | January 1, 2014 | December 31, 2033 | Yes | | Water Group | Land (Chengbei Water Plant Pumping Station) | 94,176.48 | January 1, 2014 | December 31, 2033 | Yes | | Water Group | Office Building | 376,012.80 | January 1, 2023 | December 31, 2027 | Yes | Company's External Guarantees (Excluding Guarantees for Subsidiaries) | Indicator | Amount (Million Yuan) | | :--- | :--- | | Total Guarantees Provided to Subsidiaries During Reporting Period | 160 | | Total Outstanding Guarantees to Subsidiaries at End of Reporting Period (B) | 3,398.43 | | Total Guarantees (A+B) | 3,398.43 | | Ratio of Total Guarantees to Company's Net Assets (%) | 36.18 | | Of which: Debt Guarantees Provided for Guaranteed Parties with Asset-Liability Ratio Exceeding 70% (D) | 1,152.60 | | Total of the Above Three Guarantee Amounts (C+D+E) | 1,152.60 | - All of the company's external guarantees are for its subsidiaries, primarily providing working capital loans and comprehensive credit line guarantees for Hongze Thermal Power[103](index=103&type=chunk) [Explanation of Progress in Use of Raised Funds](index=44&type=section&id=Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) The company's raised funds, totaling 26.687 billion Yuan, are 80.06% invested in projects like Niuhang Water Plant Phase II and Jiulong Lake Water Supply Network, with some projects experiencing delays or termination due to planning adjustments or public health reasons Overall Use of Raised Funds (Unit: Million Yuan) | Source of Raised Funds | Total Raised Funds (1) (Million Yuan) | Total Committed Investment as of End of Reporting Period (3) (Million Yuan) | Total Cumulative Investment as of End of Reporting Period (8) (Million Yuan) | Investment Progress as of End of Reporting Period (%) (9)=(8)/(1) | | :--- | :--- | :--- | :--- | :--- | | Issuance of Shares to Specific Objects (April 22, 2016) | 524.15 | 494.5313 | 492.4867 | 99.59 | | Issuance of Shares to Specific Objects (November 7, 2019) | 894.00 | 866.4073 | 755.5880 | 87.21 | | Issuance of Convertible Bonds (November 26, 2020) | 1,800.00 | 1,774.4210 | 1,420.6054 | 80.06 | | Total | 3,218.15 | 3,135.3596 | 2,668.6801 | / | Detailed Use of Raised Funds for Investment Projects (Partial, Unit: Million Yuan) | Project Name | Planned Total Investment of Raised Funds (1) (Million Yuan) | Total Cumulative Investment of Raised Funds as of End of Reporting Period (2) (Million Yuan) | Investment Progress as of End of Reporting Period (%) = (2)/(1) | Date Project Reached Intended Usable State | | :--- | :--- | :--- | :--- | :--- | | Niuhang Water Plant Phase II Expansion Project | 376.1876 | 379.7246 | 100.94 | March 31, 2019 | | Nanchang Jiulong Lake Group Water Supply Pipeline Construction and Renovation Project | 32.92 | 32.92 | 100.00 | December 1, 2016 | | Zhangpu County Qianting Wastewater Treatment Plant and Supporting Pipeline Project | 87.00 | 0.00 | 0.00 | Terminated | | Zhangshu City Domestic Wastewater Treatment Plant Upgrade and Sludge Deep Treatment Project | 33.00 | 23.7126 | 71.86 | December 2021 | | Fengxin County Urban Wastewater Treatment Plant New Construction (Upgrade and Expansion) Project | 128.00 | 93.5073 | 73.05 | January 2022 | | Zhangshu City Domestic Wastewater Treatment Plant Phase III Continuation Project | 79.00 | 71.3177 | 90.28 | April 2022 | - Niuhang Water Plant Phase II expansion project was delayed due to regional dual-circuit power supply scheme and raw water pipeline planning adjustments; Nanchang County Wastewater Treatment Plant Phase II project was delayed due to sludge thickening and dewatering room upgrade and renovation[112](index=112&type=chunk) - Zhangpu County Qianting Wastewater Treatment Plant and supporting pipeline project was terminated due to industrial park planning adjustments and reallocated to "Jinxian County Domestic Wastewater Treatment Plant Phase III Expansion Project" and "Fuliang County Wastewater Treatment Plant Expansion and Upgrade Project"[113](index=113&type=chunk) - Zhangshu City Domestic Wastewater Treatment Plant upgrade and sludge deep treatment project, Fengxin County Urban Wastewater Treatment Plant new construction (upgrade and expansion) project, and Zhangshu City Domestic Wastewater Treatment Plant Phase III continuation project were all delayed due to public health reasons or lagging construction progress, with some projects failing to achieve expected benefits[113](index=113&type=chunk)[115](index=115&type=chunk) [Section VI Share Changes and Shareholder Information](index=54&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) [Changes in Share Capital](index=54&type=section&id=Changes%20in%20Share%20Capital) The company's total share capital increased from 1,284,146,191 shares to 1,284,155,178 shares, primarily due to the lifting of restrictions on 86,471,621 shares held by the controlling shareholder and the conversion of 8,987 shares from "Hongcheng Convertible Bonds" Table of Share Changes (Unit: Share) | | Number Before This Change | Percentage Before This Change (%) | Increase/Decrease in This Change (Subtotal) | Number After This Change | Percentage After This Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 86,471,621 | 6.7338 | -86,471,621 | 0 | 0.00 | | 2. State-owned Legal Person Holdings | 86,471,621 | 6.7338 | -86,471,621 | 0 | 0.00 | | II. Unrestricted Tradable Shares | 1,197,674,570 | 93.2662 | 86,480,608 | 1,284,155,178 | 100.00 | | 1. RMB Ordinary Shares | 1,197,674,570 | 93.2662 | 86,480,608 | 1,284,155,178 | 100.00 | | III. Total Shares | 1,284,146,191 | 100.00 | 8,987 | 1,284,155,178 | 100.00 | - The controlling shareholder, Water Group, had **86,471,621 restricted shares** lifted from restrictions and listed for trading[121](index=121&type=chunk) - The company's "Hongcheng Convertible Bonds" entered the conversion period, with **84,000 Yuan** of convertible bonds converted into **8,987 A-shares** during the reporting period[121](index=121&type=chunk) Changes in Restricted Shares (Unit: Share) | Shareholder Name | Number of Restricted Shares at Beginning of Period | Number of Restricted Shares Released During Reporting Period | Number of Restricted Shares Increased During Reporting Period | Number of Restricted Shares at End of Period | Reason for Restriction | Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Nanchang Water Group Co., Ltd. | 86,471,621 | 86,471,621 | 0 | 0 | Lock-up period for non-public offering | April 18, 2025 | | Total | 86,471,621 | 86,471,621 | 0 | 0 | / | / | [Shareholder Information](index=55&type=section&id=Shareholder%20Information) As of the end of the reporting period, the company had 19,764 common shareholders, with Nanchang Water Group Co., Ltd. as the controlling shareholder (31.53% stake, 122,303,745 shares pledged) and Nanchang Municipal Public Group Co., Ltd. as the actual controller (13.64% stake) - As of the end of the reporting period, the total number of common shareholders was **19,764**[124](index=124&type=chunk) Top Ten Shareholders' Holdings (Excluding Shares Lent via Securities Lending) (Unit: Share) | Shareholder Name (Full Name) | Increase/Decrease During Reporting Period | Number of Shares Held at End of Period | Percentage (%) | Number of Restricted Shares Held | Share Status | Quantity | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Nanchang Water Group Co., Ltd. | - | 404,904,557 | 31.53 | - | Pledged | 122,303,745 | State-owned Legal Person | | Nanchang Municipal Public Group Co., Ltd. | - | 175,132,822 | 13.64 | - | Unrestricted | - | State-owned Legal Person | | China Merchants Bank Co., Ltd. - SSE Dividend ETF | -6,100,752 | 33,374,766 | 2.60 | - | Unknown | - | Other | | China Life Insurance Co., Ltd. - Traditional - Ordinary Insurance Product - 005L - CT001 Shanghai | 26,534,635 | 29,034,635 | 2.26 | - | Unknown | - | Other | | Xu Liusheng | 4,900 | 14,355,600 | 1.12 | - | Unknown | - | Domestic Natural Person | | China Pacific Life Insurance Co., Ltd. - China Pacific Life Stock Dividend Product (Self-operated) Entrusted Investment (Changjiang Pension) | 2,300,000 | 13,915,889 | 1.08 | - | Unknown | - | Other | | Ping An Life Insurance Co., Ltd. of China - Dividend - Individual Dividend | -2,638,600 | 12,289,032 | 0.96 | - | Unknown | - | Other | | Nanchang Public Transport General Company | - | 12,175,827 | 0.95 | - | Unrestricted | - | State-owned Legal Person | | CITIC Securities Co., Ltd. - Social Security Fund 1106 Portfolio | -403,633 | 12,040,138 | 0.94 | - | Unknown | - | Other | | Ping An Life Insurance Co., Ltd. of China - Own Funds | 1,884,900 | 10,928,905 | 0.85 | - | Unknown | - | Other | - Nanchang Water Group Co., Ltd. is the company's controlling shareholder, and Nanchang Municipal Public Group Co., Ltd. is the company's actual controller[128](index=128&type=chunk) [Information on Directors, Supervisors, and Senior Management](index=57&type=section&id=Information%20on%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, several directors and senior management, including Chairman Shao Tao and various executives, reduced their shareholdings through secondary market transactions Changes in Shareholdings of Current and Resigned Directors, Supervisors, and Senior Management During the Reporting Period (Unit: Share) | Name | Position | Number of Shares Held at Beginning of Period | Number of Shares Held at End of Period | Change in Shareholdings During Reporting Period | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Shao Tao | Chairman | 570,000 | 427,700 | 142,300 | Secondary market reduction | | Wan Feng | Director | 525,000 | 393,800 | 131,200 | Secondary market reduction | | Cao Mingshuai | Director, Deputy General Manager | 355,000 | 266,300 | 88,700 | Secondary market reduction | | Mao Yanping | Director, Deputy General Manager | 355,000 | 266,300 | 88,700 | Secondary market reduction | | Li Qiuping | Director, Deputy General Manager | 355,000 | 266,300 | 88,700 | Secondary market reduction | | Cheng Gang | Director, Deputy General Manager | 300,000 | 225,000 | 75,000 | Secondary market reduction | | Deng Xunyuan | Deputy General Manager, Board Secretary | 355,000 | 266,300 | 88,700 | Secondary market reduction | | Wang Jianyu | Chief Financial Officer | 356,000 | 267,300 | 88,700 | Secondary market reduction | | Tu Jiancheng | Deputy General Manager | 355,000 | 266,300 | 88,700 | Secondary market reduction | | Li Kuan | Deputy General Manager | 300,000 | 225,000 | 75,000 | Secondary market reduction | - During the reporting period, the company's directors and senior management reduced their shareholdings, and the results of these reductions have been announced[131](index=131&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=58&type=section&id=Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) During the reporting period, there were no changes in the company's controlling shareholder or actual controller - During the reporting period, there were no changes in the company's controlling shareholder or actual controller[132](index=132&type=chunk) [Preferred Share Information](index=58&type=section&id=Preferred%20Share%20Information) During the reporting period, the company had no preferred share-related information - During the reporting period, the company had no preferred share-related information[132](index=132&type=chunk) [Section VII Bond-Related Information](index=59&type=section&id=Section%20VII%20Bond-Related%20Information) [Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=59&type=section&id=Corporate%20Bonds%20(Including%20Enterprise%20Bonds)%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[134](index=134&type=chunk) [Convertible Corporate Bonds Information](index=59&type=section&id=Convertible%20Corporate%20Bonds%20Information) The company issued 1.8 billion Yuan in "Hongcheng Convertible Bonds" in 2020, with a current conversion price of 4.88 Yuan/share, and has converted 199 million shares, representing 20.9832% of pre-conversion total share capital, maintaining a strong debt repayment capacity with an AA+ credit rating - The company publicly issued **1.8 billion Yuan** of "Hongcheng Convertible Bonds" on November 20, 2020, with a 6-year term and bond code "110077"[134](index=134&type=chunk) - The conversion price of "Hongcheng Convertible Bonds" was adjusted from **5.34 Yuan/share** to **4.88 Yuan/share** effective July 4, 2025[135](index=135&type=chunk)[143](index=143&type=chunk) Convertible Bond Holders and Guarantor Information During the Reporting Period | Convertible Corporate Bond Name | Hongcheng Convertible Bonds | | :--- | :--- | | Number of Convertible Bond Holders at Period End | 1,455 | | Guarantor of the Company's Convertible Bonds | None | Changes in Convertible Bonds During the Reporting Period (Unit: Yuan) | Convertible Corporate Bond Name | Before This Change | Increase/Decrease in This Change (Conversion) | After This Change | | :--- | :--- | :--- | :--- | | Hongcheng Convertible Bonds | 668,519,000 | 48,000 | 668,471,000 | Cumulative Convertible Bond Conversion Information During the Reporting Period | Convertible Corporate Bond Name | Hongcheng Convertible Bonds | | :--- | :--- | | Amount Converted During Reporting Period (Yuan) | 48,000 | | Number of Shares Converted During Reporting Period (Share) | 8,987 | | Cumulative Number of Shares Converted (Share) | 198,929,091 | | Cumulative Number of Shares Converted as a Percentage of Total Shares Issued Before Conversion (%) | 20.9832 | | Unconverted Amount (Yuan) | 668,471,000 | | Percentage of Unconverted Convertible Bonds to Total Convertible Bonds Issued (%) | 37.1373 | - As of June 30, 2025, the company's asset-liability ratio was **57.27%**, its main credit rating remained **AA+**, with a stable outlook, demonstrating strong debt repayment and risk resistance capabilities[144](index=144&type=chunk) [Section VIII Financial Report](index=62&type=section&id=Section%20VIII%20Financial%20Report) [Audit Report](index=62&type=section&id=Audit%20Report) This semi-annual report is unaudited - This semi-annual report is unaudited[147](index=147&type=chunk) [Financial Statements](index=62&type=section&id=Financial%20Statements) This section presents the company's unaudited consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025 - Includes consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[148](index=148&type=chunk)[152](index=152&type=chunk)[157](index=157&type=chunk)[161](index=161&type=chunk)[164](index=164&type=chunk)[168](index=168&type=chunk)[172](index=172&type=chunk)[184](index=184&type=chunk) [Company Basic Information](index=89&type=section&id=Company%20Basic%20Information) Jiangxi Hongcheng Environment Co., Ltd., established in 2001 and listed in 2004, has a share capital of 1,284,155,178.00 Yuan as of June 30, 2026, primarily engaging in water supply, wastewater treatment, gas, and solid waste disposal - Jiangxi Hongcheng Environment Co., Ltd. was listed on the Shanghai Stock Exchange on **June 1, 2004**[189](index=189&type=chunk) - As of June 30, 2026, the company's share capital was **1,284,155,178.00 Yuan**[193](index=193&type=chunk) - The company's main business activities include tap water production and sales, urban wastewater treatment, gas sales and installation, urban domestic waste incineration for power generation, industrial solid waste disposal and power/heat generation, urban kitchen waste treatment, and urban landfill leachate and concentrate treatment[194](index=194&type=chunk) [Basis of Financial Statement Preparation](index=91&type=section&id=Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared in accordance with PRC Accounting Standards for Business Enterprises and relevant regulations, presented on a going concern basis and measured at historical cost - The company's financial statements are prepared in accordance with the Accounting Standards for Business Enterprises, their application guidelines, interpretations, and other relevant regulations issued by the Ministry of Finance[194](index=194&type=chunk) - The financial statements are presented on a going concern basis and measured at historical cost[195](index=195&type=chunk) [Significant Accounting Policies and Estimates](index=91&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) The company has established detailed accounting policies and estimates for its diverse operations, including water supply, gas, engineering, wastewater, and solid waste, covering areas such as business combinations, financial instruments, revenue recognition, and government grants, to ensure accurate and compliant financial reporting - The company's main business operations include urban water supply, gas supply, engineering construction, wastewater treatment, and solid waste disposal[196](index=196&type=chunk) - Revenue recognition policies are segmented by business type, such as tap water sales recognized based on actual sales volume, gas sales based on actual gas volume sold, concession services divided into construction contract revenue and operating period revenue, and engineering construction services recognized based on performance progress[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk)[276](index=276&type=chunk) - Financial assets are classified into three categories: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in current profit or loss, with impairment provisions based on expected credit losses[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[220](index=220&type=chunk) - Fixed assets are depreciated using the straight-line method, intangible assets are amortized using the straight-line method, R&D expenditures are distinguished between research and development phases, with development phase expenditures capitalized if conditions are met[252](index=252&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk) - Government grants are classified as asset-related or income-related, either reducing the carrying amount of assets or recognized as deferred income, or recognized in current profit or loss[280](index=280&type=chunk)[281](index=281&type=chunk)[282](index=282&type=chunk) [Taxes](index=115&type=section&id=Taxes) The company's main taxes include VAT (3%-13%), urban maintenance and construction tax (5%-7%), and corporate income tax (0%-25%), with several subsidiaries enjoying tax incentives such as reduced income tax rates for high-tech enterprises, pollution control, or small-profit enterprises Main Tax Categories and Rates | Tax Category | Tax Rate | | :--- | :--- | | Value-Added Tax | 3%, 6%, 9%, 13% | | Urban Maintenance and Construction Tax | 5%, 7% | | Corporate Income Tax | 0%, 12.50%, 15%, 20%, 25% | Taxable Entities with Different Corporate Income Tax Rates | Taxable Entity Name | Income Tax Rate (%) | | :--- | :--- | | Nanchang Water Group Nanchang Ganjiang Industry and Trade Co., Ltd. | 20% | | Wenzhou Hongze Thermal Power Co., Ltd. | 15% | | Jiangxi Hongcheng Water Environmental Protection Co., Ltd. | 15% | | Jiangxi Hongcheng Kangheng Environmental Energy Co., Ltd. | 12.50% | | Ganjiang New Area Hongcheng Deyuan Environmental Protection Co., Ltd. | 0% | - The company's subsidiaries enjoy VAT immediate refund policies, such as for wastewater treatment plant effluent and waste treatment[292](index=292&type=chunk)[293](index=293&type=chunk) - Some subsidiaries, as high-tech enterprises or third-party pollution control enterprises, are subject to a **15%** corporate income tax rate[293](index=293&type=chunk)[294](index=294&type=chunk) - Multiple subsidiaries enjoy the "three-year exemption, three-year half reduction" corporate income tax preferential policy for engaging in environmental protection, energy-saving, and water-saving projects[295](index=295&type=chunk) - Subsidiaries classified as small-profit enterprises calculate their taxable income at **25%** and pay corporate income tax at a **20%** rate[296](index=296&type=chunk) [Notes to Consolidated Financial Statement Items](index=116&type=section&id=Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes for all consolidated financial statement items, including cash, receivables, inventories, fixed assets, and revenue, offering comprehensive insights into their composition, changes, and accounting treatments - Cash and cash equivalents at period-end amounted to **2,450,158,839.75 Yuan**, including **21,134,505.67 Yuan** of restricted cash[298](index=298&type=chunk)[400](index=400&type=chunk) - Accounts receivable carrying amount at period-end was **2,990,003,248.93 Yuan**, with an allowance for doubtful accounts of **182,493,169.82 Yuan**[306](index=306&type=chunk)[308](index=308&type=chunk)[315](index=315&type=chunk) - Inventories carrying amount at period-end was **328,741,968.44 Yuan**, primarily comprising raw materials and contract performance costs[349](index=349&type=chunk) - Fixed assets carrying amount at period-end was **4,624,429,344.02 Yuan**, with accumulated depreciation of **3,913,184,000.87 Yuan**[367](index=367&type=chunk) - Bonds payable at period-end amounted to **628,366,254.11 Yuan**, primarily consisting of convertible corporate bonds[433](index=433&type=chunk) - Operating revenue for the current period was **3,687,269,054.46 Yuan**, and operating costs were **2,456,891,150.35 Yuan**[460](index=460&type=chunk) [VIII. Research and Development Expenses](index=186&type=section&id=VIII.%20Research%20and%20Development%20Expenses) [Listed by Nature of Expense](index=186&type=section&id=Listed%20by%20Nature%20of%20Expense) The company's total R&D expenditure for the period was 57,352,404.51 Yuan, a 6.43% increase, primarily comprising employee expenses, material costs, and depreciation, with all expenses being fully expensed R&D Expenses Listed by Nature of Expense (Unit: Yuan) | Item | Amount for Current Period | Amount for Prior Period | | :--- | :--- | :--- | | Employee Expenses | 31,808,856.56 | 30,535,315.57 | | Material Costs | 9,014,876.46 | 8,410,880.42 | | Depreciation and Amortization | 11,153,096.08 | 7,997,783.47 | | Other | 5,375,575.41 | 6,941,165.79 | | Total | 57,352,404.51 | 53,885,145.25 | | Of which: Expensed R&D Expenditures | 57,352,404.51 | 53,885,145.25 | | Capitalized R&D Expenditures | - | - | - All R&D expenditures for the current period were expensed and not capitalized[500](index=500&type=chunk) [IX. Changes in Consolidation Scope](index=186&type=section&id=IX.%20Changes%20in%20Consolidation%20Scope) [Changes in Consolidation Scope](index=186&type=section&id=Changes%20in%20Consolidation%20Scope) During the reporting period, there were no changes in the company's consolidation scope, such as non-same-control business combinations, same-control business combinations, reverse acquisitions, or subsidiary disposals - During the reporting period, there were no changes in the company's consolidation scope, such as non-same-control business combinations, same-control business combinations, reverse acquisitions, or subsidiary disposals[501](index=501&type=chunk)[502](index=502&type=chunk) [X. Interests in Other Entities](index=188&type=section&id=X.%20Interests%20in%20Other%20Entities) [Interests in Subsidiaries](index=188&type=section&id=Interests%20in%20Subsidiaries) The company holds interests in various subsidiaries engaged in water supply, environmental protection, gas, and solid waste, with Nanchang Gas Group Co., Ltd. being a significant non-wholly owned subsidiary, contributing 18,001,611.17 Yuan to minority shareholders' profit Composition of the Enterprise Group (Partial Subsidiaries) | Subsidiary Name | Main Operating Location | Business Nature | Shareholding Ratio (%) (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | | Nanchang Wanli Tap Water Co., Ltd. | Nanchang City, Jiangxi Province | Tap water production and supply | 100.00 | Business combination under common control | | Jiangxi Hongcheng Water Environmental Protection Co., Ltd. | Nanchang City, Jiangxi Province | Water environmental pollution control services | 100.00 | Business combination under common control | | Nanchang Gas Group Co., Ltd. | Nanchang City, Jiangxi Province | Natural gas sales and installation | 51.00 | Business combination under common control | | Jiangxi Dingyuan Ecological Environmental Protection Co., Ltd. | Nanchang City, Jiangxi Province | Solid waste disposal | 100.00 | Business combination under common control | Significant Non-Wholly Owned Subsidiaries | Subsidiary Name | Minority Shareholding Ratio (%) | Profit or Loss Attributable to Minority Shareholders for Current Period (Yuan) | Dividends Declared and Distributed to Minority Shareholders for Current Period (Yuan) | Minority Shareholders' Equity Balance at Period End (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Nanchang Gas Group Co., Ltd. | 49.00% | 18,001,611.17 | - | 651,483,362.83 | Key Financial Information of Significant Non-Wholly Owned Subsidiaries (Nanchang Gas Group Co., Ltd.) | Indicator | Balance at Period End (Yuan) | Balance at Beginning of Period (Yuan) | | :--- | :--- | :--- | | Total Assets | 2,641,482,531.58 | 2,738,917,695.79 | | Total Liabilities | 1,311,924,648.26 | 1,441,292,305.55 | | Operating Revenue | 1,075,151,563.32 | 1,125,772,553.49 | | Net Profit | 36,737,981.97 | 78,280,145.34 | | Total Comprehensive Income | 36,737,981.97 | 78,280,145.34 | | Cash Flow from Operating Activities | -127,865,550.84 | 59,607,751.65 | [Interests in Joint Ventures or Associates](index=194&type=section&id=Interests%20in%20Joint%20Ventures%20or%20Associates) The company's total carrying amount of investments in insignificant joint ventures and associates is 78,949,233.68 Yuan, with joint ventures reporting a net loss of 18,187.07 Yuan and associates a net profit of 2,545,174.28 Yuan for the current period Summarized Financial Information of Insignificant Joint Ventures and Associates | Item | Balance at Period End/Amount for Current Period (Yuan) | Balance at Beginning of Period/Amount for Prior Period (Yuan) | | :--- | :--- | :--- | | **Joint Ventures:** | | | | Total Carrying Amount of Investments | 4,030,667.77 | 4,061,642.11 | | --Net Profit | -18,187.07 | -9,335.83 | | --Total Comprehensive Income | -18,187.07 | -9,335.83 | | **Associates:** | | | | Total Carrying Amount of Investments | 74,918,565.91 | 100,739,433.13 | | --Net Profit | 2,545,174.28 | -1,771,862.16 | | --Total Comprehensive Income | 2,545,174.28 | -1,771,862.16 | [XI. Government Grants](index=195&type=section&id=XI.%20Government%20Grants) [Government Grants](index=195&type=section&id=Government%20Grants) As of the end of the reporting period, the company recognized 3,935,759.41 Yuan in government grants receivable, with a deferred income balance of 121,809,582.37 Yuan, and a total of 22,914,187.34 Yuan in grants recognized in current profit or loss - Government grants recognized at the end of the reporting period based on amounts receivable totaled **3,935,759.41 Yuan**[515](index=515&type=chunk) Liability Items Involving Government Grants (Deferred Income) | Financial Statement Item | Balance at Beginning of Period (Yuan) | New Grant Amount for Current Period (Yuan) | Amount Recognized in Other Income for Current Period (Yuan) | Balance at Period End (Yuan) | Asset-related/Income-related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income (Asset-related) | 97,547,585.91 | 269,031.84 | 4,680,075.16 | 92,963,375.93 | Asset-related | | Deferred Income (Income-related) | 28,846,206.44 | - | 173,166.66 | 28,846,206.44 | Income-related | | Total | 126,393,792.35 | 269,031.84 | 4,853,241.82 | 121,809,582.37 | / | Government Grants Recognized in Current Profit or Loss (Unit: Yuan) | Type | Amount for Current Period | Amount for Prior Period | | :--- | :--- | :--- | | Asset-related | 4,853,241.82 | 5,250,926.73 | | Income-related | 18,060,945.52 | 14,601,120.12 | | Total | 22,914,187.34 | 19,852,046.85 | [XII. Risks Related to Financial Instruments](index=196&type=section&id=XII.%20Risks%20Related%20to%20Financial%20Instruments) [Risks of Financial Instruments](index=196&type=section&id=Risks%20of%20Financial%20Instruments) During the reporting period, the company did not disclose specific information regarding financial instrument risk management, hedging activities, or transfers of financial assets - During the reporting period, the company did not disclose specific information regarding financial instrument risk management, hedging activities, or transfers of financial assets[519](index=519&type=chunk)[520](index=520&type=chunk) [XIII. Disclosure of Fair Value](index=197&type=section&id=XIII.%20Disclosure%20of%20Fair%20Value) [Disclosure of Fair Value](index=197&type=section&id=Disclosure%20of%20Fair%20Value) During the reporting period, the company did not disclose the fair value of assets and liabilities measured at fair value at period-end, nor did it address changes in fair value measurement levels, valuation techniques, or the fair value of financial assets and liabilities not measured at fair value - During the reporting period, the company did not disclose the fair value of assets and liabilities measured at fair value at period-end[520](index=520&type=chunk) - No information was provided regarding fair value measurement levels, changes in valuation techniques, or the fair value of financial assets and liabilities not measured at fair value[521](index=521&type=chunk) [XIV. Related Parties and Related-Party Transactions](index=198&type=section&id=XIV.%20Related%20Parties%20and%20Related-Party%20Transactions) [Information on the Company's Parent Company](index=198&type=section&id=Information%20on%20the%20Company's%20Parent%20Company) The company's parent company is Nanchang Water Group Co., Ltd., with a registered capital of 217.7227 million Yuan and a 31.53% shareholding, while Nanchang Municipal Public Group Co., Ltd. is the ultimate controlling party Parent Company Information | Parent Company Name | Registered Address | Business Nature | Registered Capital (Million Yuan) | Parent Company's Shareholding Ratio in the Company (%) | Parent Company's Voting Rights Ratio in the Company (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Nanchang Water Group Co., Ltd. | 99 Guanying Road, Nanchang City | Tap water production and supply | 217.7227 | 31.53 | 31.53 | - The ultimate controlling party of the company is Nanchang Municipal Public Group Co., Ltd[522](index=522&type=chunk) [Other Related Parties](index=199&type=section&id=Other%20Related%20Parties) In addition to its parent and subsidiaries, the company has numerous other related parties, including entities controlled by its parent, actual controller, and subsidiary shareholders, spanning various sectors such as environmental technology, energy, real estate, and construction - Other related parties include companies controlled by the parent company (e.g., Jiangxi Hongcheng Water Supply and Drainage Environmental Equipment Technology Co., Ltd.), companies controlled by the actual controller (e.g., Nanchang Municipal Public Real Estate Group Co., Ltd.), subsidiary shareholders (e.g., Shanghai Liancheng (Group) Co., Ltd.), and companies controlled by subsidiary shareholders (e.g., China Resources Gas Investment (China) Co., Ltd.)[524](index=524&type=chunk)[525](index=525&type=chunk) [Related-Party Transactions](index=200&type=section&id=Related-Party%20Transactions) The company engages in various related-party transactions, including significant purchases of goods and services, leases, guarantees, and fund borrowings, with key management personnel compensation totaling 767,800 Yuan Purchases of Goods/Receipt of Services (Unit: Yuan) | Related Party | Related-Party Transaction Content | Amount for Current Period | Approved Transaction Limit (if applicable) | Exceeded Transaction Limit (if applicable) | | :--- | :--- | :--- | :--- | :--- | | Jiangxi Hongcheng Water Supply and Drainage Environmental Equipment Technology Co., Ltd. | Purchase of pipes and equipment, etc. | 85,190,458.23 | 236,310,000.00 | No | | Nanchang Municipal Engineering Development Group Co., Ltd. | Receipt of services | 27,247,915.14 | - | No | | China Resources Gas Energy Development Co., Ltd. Shanghai Branch | Purchase of gas | 221,075,239.58 | - | No | Sales of Goods/Provision of Services (Unit: Yuan) | Related Party | Related-Party Transaction Content | Amount for Current Period | | :--- | :--- | :--- | | Nanchang Urban Drainage Co., Ltd. | Provision of services | 34,709,295.75 | | Nanchang Kaihua Construction Engineering Co., Ltd. | Provision of services | 6,937,046.46 | Related-Party Leases (Company as Lessor) (Unit: Yuan) | Lessee Name | Type of Leased Asset | Lease Income Recognized for Current Period | | :--- | :--- | :--- | | Nanchang Water Group Co., Ltd. | Building lease | 344,965.87 | Related-Party Leases (Company as Lessee) (Unit: Yuan) | Lessor Name | Type of Leased Asset | Rent Paid (Amount for Current Period) | | :--- | :--- | :--- | | Nanchang Municipal Public Group Co., Ltd. | Building lease | 120,115.20 | | Nanchang Water Group Co., Ltd. | Land lease | 4,189,190.88 | Company as Guarantor (Partial, Unit: Yuan) | Guaranteed Party | Guarantee Amount | | :--- | :--- | | Jiangxi Hongcheng Chengbei Wastewater Treatment Co., Ltd. | 152,548,319.39 | | Jiangxi Hongcheng Chengdong Wastewater Treatment Co., Ltd. | 255,500,000.00 | | Liaoning Hongcheng Environmental Protection Co., Ltd. | 256,500,000.00 | Company as Guaranteed Party (Partial, Unit: Yuan) | Guarantor | Guarantee Amount | | :--- | :--- | | Nanchang Water Group Co., Ltd. | 54,000,000.00 | | Nanchang Municipal Public Group Co., Ltd. | 15,350,000.00 | Related-Party Fund Borrowings (Borrowed, Partial, Unit: Yuan) | Related Party | Borrowed Amount | | :--- | :--- | | Wenzhou Hongze Technology Development Co., Ltd. | 1,000,000.00 | | Nanchang Municipal Public Group Co., Ltd. | 13,700,000.00 | Key Management Personnel Compensation (Unit: Yuan) | Item | Amount for Current Period | | :--- | :--- | | Key Management Personnel Compensation | 767,800 | [Outstanding Items with Related Parties, such as Receivables and Payables](index=210&type=section&id=Outstanding%20Items%20with%20Related%20Parties%2C%20such%20as%20Receivables%20and%20Payables) At period-end, the company had significant outstanding balances with related parties, including 94.878 million Yuan in accounts receivable from Nanchang Hangfan Environmental Protection Co., Ltd. and 940 million Yuan in other receivables from Jiangxi Hongcheng Water Environmental Protection Co., Ltd., alongside substantial payables such as 299 million Yuan to Jiangxi Hongcheng Water Supply and Drainage Environmental Equipment Technology Co., Ltd. and 558 million Yuan in dividends payable to Nanchang Water Group Co., Ltd Receivable Items (Partial, Unit: Yuan) | Item Name | Related Party | Carrying Amount at Period End | Allowance for Doubtful Accounts | | :--- | :--- | :--- | :--- | | Accounts Receivable | Nanchang Hangfan Environmental Protection Co., Ltd. | 94,877,991.85 | 9,800,896.56 | | Other Receivables | Jiangxi Hongcheng Water Environmental Protection Co., Ltd. | 939,656,380.79 | 0.00 | | Contract Assets | Nanchang Municipal Public Group Co., Ltd. | 64,343,208.76 | 24,044,748.52 | Payable Items (Partial, Unit: Yuan) | Item Name | Related Party | Balance at Period End | | :--- | :--- | :--- | | Accounts Payable | Jiangxi Hongcheng Water Supply and Drainage Environmental Equipment Technology Co., Ltd. | 298,906,458.91 | | Other Payables - Dividends Payable | Nanchang Water Group Co., Ltd. | 557,638,360.18 | | Other Payables | Nanchang Water Group Co., Ltd. | 441,734,385.33 | | Contract Liabilities | Nanchang Municipal Public Engineering Project Management Co., Ltd. | 3,420,957.58 | [XV. Share-Based Payment](index=215&type=section&id=XV.%

江西洪城环境股份有限公司 章 程 (2025年8月修订) $$\exists0\exists\exists\nexists\exists J\exists$$ | | | | 第一章 总 则 | 1 | | --- | --- | | 第二章 经营宗旨和范围 | 2 | | 第三章 股 份 | 3 | | 第四章 股东和股东会 | 8 | | 第五章 党的委员会 | 2 5 | | 第六章 董事会 | 2 7 | | 第七章 经理及其他高级管理人员 | 4 1 | | 第八章 财务会计制度、利润分配和审计 | 4 3 | | 第九章 通知和公告 | 4 9 | | 第十章 合并、分立、增资、减资、解散和清算 | 5 0 | | 第十一章 修改章程 | 5 3 | | 第十二章 附 则 | 5 4 | 第一章 总 则 第一条 为了规范江西洪城环境股份有限公司（以下简称"公司"）的组 织和行为，促进公司的发展，维护公司、股东、职工和债权人的合法权益，根据 《中华人民共和国公司法》(以下简称《公司法》)、《中华人民共和国证券法》 （以下简称《证券法》）、《中国共产党章程》、《上市公司治理准则》和其他 有关法律、法规 ...

Investment Rating - The report maintains a "Positive" investment rating for the industry [8] Core Insights - Recent guidance from the Ministry of Finance emphasizes the need for local governments to fulfill payment obligations for existing PPP projects, which is expected to improve cash flow for waste incineration and water services [4][14] - As of August 22, 2025, 95% of the 2 trillion yuan quota for replacing hidden debts has been implemented, accelerating the issuance of local government special bonds [5][19] - The National Development and Reform Commission has reiterated the importance of adjusting public utility prices, with water and waste disposal fees being gradually increased across various regions [30][29] Summary by Sections Government Payment Implementation - The recent guidance on existing PPP projects highlights the necessity for local governments to include related expenses in their budget management and ensure timely payments [4][14] - The funding sources for these projects can include local government special bonds, central transfer payments, and local self-owned funds, which may strengthen the repayment guarantees for future PPP projects [15][14] Debt Replacement and Special Bonds - The issuance of special refinancing bonds has significantly accelerated, with 1.91 trillion yuan issued from January to August 2025, primarily aimed at replacing hidden debts [5][19] - Local governments are actively addressing existing hidden debt issues, which is expected to enhance liquidity for affected parties [19][22] Public Utility Price Adjustments - The report notes that many regions have been slow to adjust water and waste disposal fees, leading to financial losses for water supply companies [30][29] - Recent adjustments in water prices have been observed in cities like Guangzhou and Shenzhen, with average increases of 15.8% for residential water rates [30][34] Investment Logic - The combination of government payment implementation, debt replacement, and price adjustments is expected to positively impact cash flow in the waste incineration and water sectors [36][38] - The industry is experiencing stable growth, with improved cash flow and increased dividends, driven by market reforms and a shift towards direct sales to industrial and commercial clients [38][39]

Group 1 - The core point of the news is that Hongcheng Environment (SH600461) has received preliminary approval for an environmental impact assessment for a new project to produce 40,000 tons of efficient water treatment agents, with a total investment of 30 million yuan [1] - The "A-share Green Report" project aims to enhance transparency in environmental information of listed companies, utilizing authoritative environmental regulatory data from 31 provinces and 337 cities [1] - The latest A-share Green Weekly Report indicated that eight listed companies have recently exposed environmental risks [1] Group 2 - Hongcheng Environment's main business segments include water production and supply (60.62% of revenue), gas production and supply (27.78%), solid waste treatment (9.46%), and other businesses [2] - The company's projected financials for 2023 and 2024 show operating revenue of 8.048 billion yuan and 8.227 billion yuan respectively, with a net profit of 1.083 billion yuan and 1.190 billion yuan [3] - The company has a market capitalization of 11.801 billion yuan and a net asset return rate of 14.39% for 2023 [3]

Investment Rating - The report maintains a "Buy" rating for several companies in the power and gas sectors, including China Power, Huaneng International, and Kunlun Energy, among others [49][51]. Core Insights - The adjustment of capacity prices for coal and gas power plants in Guangdong is expected to improve profitability for gas power plants significantly, with capacity prices increasing by 65% to 296% depending on the type of gas plant [4][10]. - The rapid development of renewable energy installations in Guangdong has increased the reliance on coal power for flexible peak regulation, with renewable energy capacity reaching 59.13 million kW by the end of 2024, accounting for 26.6% of the total installed capacity [9][10]. - The report highlights the geopolitical factors affecting natural gas prices, with European gas prices experiencing a slight increase due to renewed geopolitical tensions, while U.S. gas prices remain stable [13][20]. Summary by Sections 1. Power Sector - Guangdong has raised the capacity price for coal power plants to 165 RMB per kW per year starting January 1, 2026, and for gas power plants, prices will range from 165 to 396 RMB per kW per year starting August 1, 2025 [8][10]. - The increase in capacity prices is expected to provide annual revenue boosts of 1.72 billion RMB for Guangdong Power A and 350 million RMB for Guangzhou Development [11]. 2. Gas Sector - As of August 1, 2025, the Henry Hub spot price is $3.00/mmBtu, while the TTF spot price in Europe is €32.95/MWh, reflecting a week-on-week increase of 2.74% [13][14]. - The report notes that the domestic LNG price is 4388 RMB per ton, showing a week-on-week decrease of 1.06% [32]. 3. Market Review - The gas sector outperformed the Shanghai and Shenzhen 300 index, while the public utility, power, and environmental sectors lagged behind [39]. 4. Company and Industry Dynamics - The National Energy Administration has released guidelines to enhance the management of natural gas pipeline transportation prices, promoting transparency and optimizing resource allocation [37]. - The report discusses the performance of key companies, including Huaneng International and Inner Mongolia Huadian, with varying revenue and profit trends [44].

Investment Rating - The report maintains an "Accumulate" rating for the environmental protection industry [1] Core Views - The report emphasizes the importance of the recent price law revision, which is expected to enhance ROE and cash flow, particularly in the water pricing sector. The marketization of water prices is seen as a potential turning point for cash flow, similar to the previous developments in waste incineration [1][11] - The report identifies a cash flow turning point in water operations, suggesting that companies like Xingrong and Shou Chuang will see significant reductions in capital expenditures starting in 2025, leading to substantial increases in free cash flow [1][22] - The report highlights the strengthening of environmental inspections as a driving force for the industry, indicating a shift from policy-driven to governance-driven demand for environmental services [10] Summary by Sections Industry Trends - The environmental protection industry is transitioning towards a governance-driven model, with a focus on long-term, systematic management rather than temporary fixes [10] - The report notes a significant increase in the sales of new energy sanitation vehicles, with a year-on-year growth of 90.56% in the first half of 2025, indicating a growing market for environmentally friendly equipment [31] Water Operations - The report predicts that the water operations sector will experience a cash flow turning point, with companies like Xingrong and Shou Chuang expected to reduce capital expenditures significantly starting in 2025, leading to increased free cash flow [1][22] - The report recommends companies such as Xingrong Environment, Yuehai Investment, and Hongcheng Environment for their strong dividend potential and market positioning [23][24] Waste Incineration - The report discusses the expected decline in capital expenditures for waste incineration, which will enhance free cash flow and dividend payouts. Companies like Junxin and Green Power are highlighted for their strong dividend performance [18][20] - The report identifies new trends in waste incineration, including partnerships with data centers to enhance profitability and ROE [21] Policy Developments - The report outlines the implications of the price law revision, which aims to enhance market pricing mechanisms and improve cash flow for public utilities, particularly in water and waste management sectors [11][14] - The report emphasizes the importance of environmental inspections in driving industry growth and ensuring compliance with new regulations [9][10] Recommendations - The report recommends a focus on companies with strong operational capabilities and cash flow potential, such as Xingrong Environment, Yuehai Investment, and Hongcheng Environment, while suggesting attention to emerging players in the waste management and renewable energy sectors [23][24][25]

Investment Rating - The report maintains a "Buy" rating for key companies in the environmental protection sector, including Huicheng Environmental, GaoNeng Environment, and HongCheng Environment [6]. Core Insights - The report highlights the acceleration of ecological environment protection responsibility system construction and the rapid development of waste-free city initiatives, which directly benefit the environmental protection industry and green technology application sectors [1][20]. - The implementation of the "Waste-Free Island" initiative in Hainan Province aims to establish a comprehensive waste management system by 2030, significantly increasing demand in environmental governance, ecological restoration, and environmental monitoring industries [1][21]. Summary by Sections Investment Views - The issuance of the "Regulations on the Responsibility System for Ecological Environment Protection of Local Party and Government Leaders" is expected to enhance the integration of environmental protection into development planning, benefiting sectors such as ecological restoration and environmental monitoring [9][20]. - The "Waste-Free Island" initiative in Hainan outlines a comprehensive plan for solid waste management, including the construction of 105 new construction waste treatment facilities by 2030, which will boost demand in waste treatment services and high-precision environmental monitoring [21][23]. Market Performance - The environmental protection sector underperformed compared to the broader market, with a decline of 1.29% during the week, while the Shanghai Composite Index fell by 0.94% [3]. - Key stocks in the environmental sector showed varied performance, with Anchek Testing leading with a gain of 12.69%, while Huicheng Environmental faced a decline of 6.81% [3]. Industry News - The report notes significant developments in the waste management sector, including the establishment of a smart organic waste treatment system by ShenGao Environment and the central government's economic deployment for the second half of the year [2][3].