Core Viewpoint - Greentown Water disclosed a decrease in shareholder accounts and average shareholding value, indicating a trend of reduced investor participation despite a slight increase in stock price during the reporting period [1][4]. Group 1: Shareholder Data - As of July 18, 2025, Greentown Water had 28,000 shareholders, a decrease of 916 accounts or 3.17% from June 30, 2025 [1][2]. - The average number of shares held per account increased from 30,500 to 31,500 shares, with an average shareholding value of 156,700 yuan [1][2]. - Compared to the environmental governance industry average, Greentown Water's shareholder count is lower, with the industry average at 28,500 accounts and average shareholding value at 214,900 yuan [1]. Group 2: Stock Performance - From June 30 to July 18, 2025, Greentown Water's stock price increased by 2.47%, despite the reduction in shareholder accounts [1][2]. - The stock price had previously experienced fluctuations, including a decrease of 4.32% from May 20 to June 30, 2025 [2]. Group 3: Capital Flow - During the period from June 30 to July 18, 2025, the net outflow of funds from major investors was 13.26 million yuan, while retail investors saw a net inflow of 21.84 million yuan [4].

Core Viewpoint - Greentown Water (601368.SH) reported a decline in revenue and net profit for the first half of 2025, indicating potential challenges in its financial performance [1] Financial Performance - The company achieved an operating revenue of 1.19 billion yuan in the first half of 2025, representing a year-on-year decrease of 0.99% [1] - The net profit attributable to shareholders was 26.89 million yuan, down 60.35% compared to the previous year [1] - Basic earnings per share were reported at 0.0305 yuan [1]

证券代码：601368 证券简称：绿城水务 公告编号：2025-024 一、董事会会议召开情况 广西绿城水务集团股份有限公司（以下简称"公司"）第五届董事会第二十六次会议于 2025 年 8 月 21 日在广西南宁市青秀区桂雅路 13 号绿城水务调度检测中心 1519 会议室召 开，本次会议以现场方式进行。会议应出席董事 9 人，现场出席董事 8 人，委托出席董事 1 人（魏金先生因工作原因未能亲自出席本次会议，委托黄东海先生代为表决）。本次会 议由董事长黄东海先生召集和主持，公司高级管理人员列席了会议。会议的召集、召开及 表决程序符合《公司法》和本公司章程的有关规定。 二、董事会会议审议情况 1、审议通过《关于审议公司 2025 年半年度报告及其摘要的议案》 公司审计委员会认为：公司 2025 年半年度报告全面总结并真实反映了公司生产经营情 况及财务状况，同意提交公司董事会审议。本议案已经公司第五届董事会审计委员会 2025 年第三次会议审议通过。 具体内容详见上海证券交易所网站（www.sse.com.cn）披露的《广西绿城水务集团股 份有限公司 2025 年半年度报告》及其摘要。 表决结果：9 票赞成， ...

Group 1 - The board of directors of Guangxi Greentown Water Group Co., Ltd. held its 26th meeting of the 5th board, with 9 directors required to attend and 8 present, confirming compliance with legal and procedural requirements [1] - The audit committee approved the company's 2025 semi-annual report, which comprehensively summarizes and accurately reflects the company's operational and financial status, and submitted it for board review [1] - The voting results for the audit committee's approval were 9 votes in favor, 0 against, and 0 abstentions [1] Group 2 - The company has revised several internal management systems as of August 2025, including information disclosure, shareholding management, audit committee working rules, nomination committee working rules, compensation and assessment committee working rules, budget management committee working rules, and strategic and investment committee working rules [2] - The voting results for the approval of these revised systems were consistently 9 votes in favor, 0 against, and 0 abstentions [2] - The company also revised its internal control system related to financial reporting as of August 2025, with the same voting results [2]

General Provisions - The establishment of the Audit Committee aims to enhance the decision-making function of the Board and strengthen the supervision of financial information, internal controls, and audits [1][2] - The Audit Committee is a specialized working body set up by the Board, responsible for reviewing financial information and overseeing internal and external audits [1][2] Composition of the Committee - The Audit Committee consists of five directors, with a majority being independent directors and at least one member being a professional accountant [2][3] - The committee members are nominated by the Chairman, more than half of the independent directors, or one-third of all directors, and elected by the Board [2] Responsibilities and Authority - The Audit Committee has the authority to inspect the company's finances, supervise the actions of directors and senior management, and propose the convening of extraordinary shareholder meetings [4][5] - It is responsible for reviewing financial reports, supervising internal and external audits, and evaluating internal control systems [4][5] Internal Audit Oversight - The Audit Committee guides and supervises the establishment and implementation of internal audit systems and reviews annual internal audit plans [5][6] - It coordinates relationships between internal audit departments and external auditors, ensuring effective communication and oversight [5][6] Meeting Procedures - The Audit Committee must meet at least quarterly, with additional meetings called as necessary, and requires a two-thirds attendance for decisions [8][9] - Meeting records must be maintained for at least ten years, and all members have confidentiality obligations regarding meeting discussions [9][10] Implementation and Effectiveness - The work rules of the Audit Committee will be effective upon approval by the Board and will be interpreted by the Board [11]

Core Viewpoint - The establishment of the Compensation and Assessment Committee aims to enhance the governance structure of Guangxi Greentown Water Group Co., Ltd. by developing a comprehensive assessment and compensation management system for directors and senior management [1][2]. Group 1: Committee Structure and Composition - The Compensation and Assessment Committee consists of three directors, including two independent directors [2]. - The committee is chaired by an independent director, who is responsible for leading the committee's activities [2]. - The term of the committee aligns with that of the board of directors, and members can be re-elected [2][3]. Group 2: Responsibilities and Authority - The committee is tasked with formulating assessment standards for directors and senior management, as well as reviewing compensation policies and plans [4]. - It is responsible for proposing recommendations on the compensation of directors and senior management, including stock incentive plans and employee shareholding plans [4]. - Any compensation plans proposed by the committee must be approved by the board and subsequently submitted for shareholder approval [4][6]. Group 3: Operational Procedures - The committee's working group, composed of personnel from the board office and human resources, is responsible for preparing materials and supporting the committee's functions [3][6]. - The evaluation process for directors and senior management includes the submission of work summaries and performance evaluations, leading to recommendations for compensation [6]. - Meetings of the committee require a two-thirds attendance of members to be valid, and decisions must be approved by a majority [7][8]. Group 4: Meeting Regulations - Meetings should be held in person, but can also utilize video or phone conferencing when necessary [8]. - All meeting records must be documented, and confidentiality is required from all attendees regarding discussed matters [8][9]. - The committee's operational guidelines are subject to relevant laws and the company's articles of association [9].

General Provisions - The purpose of the Nomination Committee is to standardize the selection of directors and senior management, optimize the composition of the board and management, and improve corporate governance structure [1] - The Nomination Committee is a specialized working body established by the board of directors, responsible for selecting candidates for directors and senior management, as well as proposing selection criteria and procedures [1][2] Composition of the Committee - The Nomination Committee consists of three directors, including two independent directors [2] - The chairman of the committee is an independent director, responsible for presiding over committee work [2] Responsibilities and Authority - The Nomination Committee is responsible for drafting selection criteria and procedures for directors and senior management, reviewing candidates' qualifications, and making recommendations to the board on various matters [3] - The committee's proposals must be recorded in the board's resolutions if not fully adopted, along with reasons for non-adoption [3] Working Procedures - The committee must research the election conditions, selection procedures, and terms of office for directors and senior management, and submit decisions to the board for approval [4] - The selection process includes searching for candidates internally and externally, collecting their qualifications, and obtaining their consent before nomination [4] Meeting Rules - Meetings of the Nomination Committee require a three-day notice to all members and must be chaired by the chairman or an appointed independent director [5] - A quorum of two-thirds of the committee members is required for meetings, and decisions must be approved by a majority [5] Confidentiality and Record Keeping - Meeting records must be signed by attending members and kept for at least ten years [6] - Members have a confidentiality obligation regarding meeting discussions and decisions [6] Additional Provisions - Any matters not covered by these rules will be executed according to relevant national laws and the company's articles of association [8] - The rules take effect upon approval by the board of directors [8]

Core Viewpoint - The report highlights a significant decline in the financial performance of Guangxi Greencity Waterworks Group Co., Ltd. for the first half of 2025, with notable decreases in revenue and net profit compared to the previous year, primarily due to foreign exchange losses and increased bad debt provisions [2][3][4]. Financial Performance - Total revenue for the first half of 2025 was approximately CNY 1.19 billion, a decrease of 0.99% from CNY 1.20 billion in the same period last year [2][3]. - Total profit decreased by 61.72% to CNY 30.52 million from CNY 79.72 million year-on-year [2][3]. - Net profit attributable to shareholders fell by 60.35% to CNY 26.89 million from CNY 67.82 million [2][3]. - The net cash flow from operating activities was CNY 166.18 million, down 9.56% from CNY 183.74 million [2][3]. Business Operations - The company is primarily engaged in water supply and sewage treatment services in Nanning and surrounding areas, with a designed water supply capacity of 2.13 million cubic meters per day [4][5]. - The sewage treatment capacity was enhanced to 1.875 million cubic meters per day following the completion of an expansion project [4][5]. - The company operates under a franchise model, providing integrated water supply and sewage treatment services, which allows for cost savings and operational efficiency [4][5][6]. Industry Context - The domestic water supply and sewage treatment industry is experiencing growth driven by national and local policies, although challenges such as incomplete sewage collection networks and pricing mechanisms remain [5][6]. - Recent government initiatives aim to improve water supply infrastructure and enhance service quality, including measures to reduce water loss and upgrade aging pipelines [6][7]. - The sewage treatment market has expanded significantly, with a focus on high-quality development and resource utilization, as urban sewage treatment rates exceed 95% [7][8]. Strategic Initiatives - The company is focusing on expanding its service areas and improving infrastructure to meet increasing demand for water supply and sewage treatment [8][9]. - Efforts are being made to enhance operational efficiency through advanced management practices and technology integration, including the implementation of a smart water plant standard [9][10]. - The company is actively pursuing financing opportunities to support its growth and infrastructure projects, including issuing bonds and seeking government funding for urban renewal initiatives [12][13].

Core Viewpoint - Guangxi Greentown Water Group Co., Ltd. reported a decline in key financial metrics for the first half of 2025, indicating potential challenges in revenue generation and profitability [1][2]. Financial Performance - Total assets at the end of the reporting period reached approximately CNY 23.86 billion, an increase of 1.91% compared to the previous year [1]. - Operating revenue for the period was approximately CNY 1.19 billion, reflecting a decrease of 0.99% year-on-year [1]. - Total profit amounted to approximately CNY 30.52 million, down 61.72% from the previous year [1]. - Net profit attributable to shareholders was approximately CNY 17.34 million, a decline of 69.99% compared to the same period last year [1]. Shareholder Information - The total number of shareholders at the end of the reporting period was 28,916 [2]. - The largest shareholder, Nanning Jianning Water Investment Group, holds 51.00% of the shares, amounting to 450,336,273 shares [2]. - Other significant shareholders include Guangxi Shangshan Ruoshui Development Co., Ltd. and Guangxi Honggui Capital Operation Group, holding 3.81% and 1.10% respectively [2]. Debt and Financial Ratios - The company's debt-to-asset ratio was reported at 79.95%, slightly up from 79.63% in the previous year [4]. - The EBITDA interest coverage ratio was 2.28, down from 2.42 year-on-year [4].

Financial Performance - The company's operating revenue for the first half of 2025 was CNY 1,189,586,715.24, a decrease of 0.99% compared to CNY 1,201,439,350.07 in the same period last year[19]. - Total profit for the period was CNY 30,516,564.05, down 61.72% from CNY 79,724,171.71 year-on-year[19]. - Net profit attributable to shareholders was CNY 26,894,031.01, reflecting a 60.35% decline from CNY 67,822,785.04 in the previous year[19]. - The net profit after deducting non-recurring gains and losses was CNY 17,338,134.76, a decrease of 69.99% compared to CNY 57,774,034.64 last year[19]. - Basic earnings per share decreased by 60.29% to CNY 0.0305 from CNY 0.0768 in the same period last year[20]. - The weighted average return on net assets was 0.57%, down from 1.44% year-on-year[20]. - The company reported a net cash flow from operating activities of CNY 166,180,646.81, a decrease of 9.56% compared to CNY 183,740,608.42 last year[19]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 23,855,445,303.81, an increase of 1.91% from CNY 23,409,467,812.65 at the end of the previous year[19]. - The net assets attributable to shareholders at the end of the reporting period were CNY 4,741,816,524.09, showing a slight increase of 0.01% from CNY 4,741,411,685.39 at the end of the previous year[19]. - Total liabilities rose to CNY 19,071,549,931.72 from CNY 18,641,831,727.26, an increase of 2.31%[123]. - The total equity increased to CNY 4,783,895,372.09 from CNY 4,767,636,085.39, a growth of 0.34%[123]. Cash Flow - The company reported a net cash flow from investing activities decreased significantly by 79.98% to -¥1,247,600,780.24, primarily due to increased funding for water supply and sewage treatment projects[49]. - The net cash flow from financing activities increased by 182.32% to ¥983,306,467.93, mainly due to an increase in new debt principal[50]. - Cash inflow from financing activities reached CNY 2,739,120,916.17 in the first half of 2025, significantly higher than CNY 1,555,434,719.48 in the same period of 2024, indicating an increase of about 75.9%[140]. - Net cash flow from financing activities was CNY 859,237,816.37 for the first half of 2025, compared to CNY 348,312,328.12 in the first half of 2024, marking an increase of approximately 146.5%[140]. Operational Capacity - The company’s designed water supply capacity is 2.13 million cubic meters per day, with operations in Nanning and surrounding areas[26]. - The company has expanded its wastewater treatment capacity by 25,000 cubic meters per day, bringing the total designed capacity to 1.875 million cubic meters per day[28]. - The company operates 8 water production units and 16 wastewater treatment units across its service areas[27]. - The company completed water sales of 25,658.46 million cubic meters, achieving 48.14% of the annual plan, with a year-on-year growth of 1.86%[33]. Market and Industry Context - The domestic water supply and wastewater treatment industry is experiencing growth driven by national and local policies, despite challenges such as incomplete sewage collection networks[30]. - The wastewater treatment market has reached a scale of hundreds of billions, with over 95% of urban wastewater being treated centrally[32]. - The company’s engineering and testing services contribute less to revenue and profit compared to its main water supply and wastewater treatment businesses[28]. Governance and Management - The company has completed the revision of eight governance documents to enhance its governance structure and efficiency[39]. - The company has a strong management team with extensive industry experience, contributing to its operational efficiency and innovation[47]. - The company has committed to transparent communication with investors, issuing regular reports and responding to investor inquiries effectively[65]. Risks and Challenges - The company faces risks from rising costs due to increased depreciation, financial expenses, and operational costs, which may lead to performance fluctuations[57]. - The company is exposed to foreign exchange risks due to a portion of its debt being financed through foreign loans, which could impact profitability[58]. - The company has significant debt financing needs due to the capital-intensive nature of the water industry, which may lead to increased debt levels[61]. Research and Development - The company is advancing two key R&D projects and six internal research topics, including the development of new technologies for wastewater treatment[38]. - Research and development expenses for the first half of 2025 were CNY 2,448,603.20, a decrease of 16.4% from CNY 2,926,678.16 in the first half of 2024[132]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period was 28,916[86]. - The largest shareholder, Nanning Jianning Water Investment Group Co., Ltd., held 450,336,273 shares, representing 51.00% of the total shares[87]. - The company plans to distribute cash dividends of 0.03 CNY per share, totaling 26.49 million CNY, which is not less than 30% of the net profit attributable to shareholders for the year[64]. Financial Reporting and Compliance - The company’s financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, ensuring compliance and accuracy[152]. - The company has assessed its ability to continue as a going concern and found no issues affecting its operational capacity[153]. - The company has not reported any significant changes in accounting policies or prior period adjustments, maintaining consistency in financial reporting[142].