Core Viewpoint - The company, Henan Baichuan Changyin Environmental Energy Co., Ltd., has successfully issued convertible bonds totaling RMB 420 million, with a face value of RMB 100 per bond, approved by the China Securities Regulatory Commission [3][4]. Group 1: Bond Issuance Details - The total amount of the convertible bonds issued is RMB 420 million, with 4.2 million bonds issued at a face value of RMB 100 each [3][4]. - The bonds have a term of 6 years, from February 22, 2023, to February 21, 2029, with annual interest rates starting at 0.30% in the first year and increasing to 2.80% in the sixth year [4][5]. - The bonds are listed on the Shenzhen Stock Exchange under the name "Baichang Convertible Bonds" with the code "123175" [3][4]. Group 2: Conversion and Redemption Terms - The initial conversion price for the bonds is set at RMB 28.32 per share, subject to adjustments based on stock dividends, capital increases, and other corporate actions [5][6]. - The company has the right to redeem the bonds at 112% of the face value plus the last interest payment within 5 trading days after maturity [9][10]. - Holders of the convertible bonds can sell them back to the company if the stock price falls below 70% of the conversion price during the last two interest years [10][11]. Group 3: Credit Rating and Financial Health - The credit rating agency Zhongceng Pengyuan has rated the company's credit as A+, with a stable outlook, although a subsequent report downgraded the rating to A due to worsening financial performance and liquidity risks [13][15]. - The company has sufficient credit lines with major banks, ensuring the ability to meet bond interest and principal payments [15][16].

Financial Performance - In 2024, the company reported operating revenue of 452 million yuan, a decrease of 6.49% year-on-year [1][2] - The net profit attributable to shareholders was -282 million yuan, compared to -97 million yuan in the previous year, reflecting a decline of 189.47% [1][2] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -253 million yuan, down from -93 million yuan, a decrease of 170% [1][2] - The net cash flow from operating activities was 59 million yuan, a decrease of 47.44% year-on-year [1][2] Q1 2025 Performance - In Q1 2025, the company achieved operating revenue of 108 million yuan, a decrease of 7.19% compared to the same period last year [3] - The net profit attributable to shareholders was -11.68 million yuan, an improvement from -20.94 million yuan year-on-year, showing a 44.24% reduction in losses [3] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -11.12 million yuan, a 60.39% improvement from -28.07 million yuan in the previous year [3] - The net cash flow from operating activities was 26 million yuan, a significant increase from -2.78 million yuan in the same period last year, representing a turnaround of 1,046.82% [3] Fundraising and Projects - The company raised a total of 369 million yuan, with a net amount of 328 million yuan after deducting issuance costs, which was 325 million yuan less than originally planned [4] - The initial fundraising plan was to raise 652 million yuan, with allocations for various projects including 424 million yuan for landfill gas utilization projects and 20 million yuan for working capital [4] - The company issued convertible bonds totaling 420 million yuan, with the funds intended for biogas utilization projects and working capital [5]

Core Viewpoint - The new chairman of Zhongyuan Securities, Zhang Qiuyun, has outlined the company's strategic direction for 2025, emphasizing a focus on the Henan provincial government's strategic deployment and aiming for significant breakthroughs in business development and management capabilities [2][3]. Group 1: Strategic Direction - 2025 is identified as the starting year for Zhongyuan Securities' "second entrepreneurship," with a focus on enhancing the company's role as a strategic carrier for the Henan capital market [2][3]. - The company is navigating three critical periods: the transition of economic drivers, changes in industry structure, and strategic transformation [3]. - The overall work thought for the board in 2025 includes strengthening the company's strategic functions, exploring differentiated development paths, and enhancing management capabilities [3][4]. Group 2: Implementation of Core Strategies - The company aims to push for significant breakthroughs in strategic implementation by focusing on integrated operations and top-level design, enhancing professional capabilities and operational efficiency [4]. - A unified market approach will be established, targeting two customer categories (retail and institutional) and offering a variety of products and services [4]. - The wealth management committee and corporate financing committee will play a central role in integrated operations, restructuring the company's three operational fronts [4]. Group 3: Business Development and Management - The new organizational structure will position branches as comprehensive financial service platforms, focusing on resource integration and improving service quality [5]. - The company plans to accelerate the development of its core business areas, particularly wealth management, to ensure sustained market share growth [6][10]. - In the first quarter of 2024, Zhongyuan Securities reported a revenue decline of 37.7% year-on-year, highlighting the need for effective strategic execution to reverse performance trends [11].

Core Viewpoint - The company has undergone significant transformation and strategic adjustments to enhance its governance, operational efficiency, and service capabilities, aiming for high-quality development in alignment with regional economic growth [1][2][3]. Group 1: Strategic Adjustments - The company has optimized its strategic direction, focusing on becoming a "strategic carrier for the Henan capital market" and implementing four major strategies: integration, platformization, and localization [1][2]. - The board has emphasized the importance of enhancing core competitiveness and aligning services with the economic development of Henan [2][3]. Group 2: Governance and Management - The company has improved its governance structure by revising its articles of association to enhance the clarity of responsibilities among governance bodies, thereby increasing governance effectiveness [4][5]. - The board has actively engaged in decision-making processes, holding 10 meetings and approving 68 significant proposals, which underscores its role in major operational management [5][6]. Group 3: Risk Management and Compliance - The board has prioritized compliance and risk management, establishing a comprehensive compliance management system and enhancing internal controls to mitigate risks effectively [6][7]. - The company has implemented a rigorous internal audit process to identify potential risks and ensure compliance with regulatory requirements [7][8]. Group 4: Financial Performance - The company achieved a profit of 235 million, reflecting a year-on-year growth of approximately 10%, while supporting over 10 billion in financing for Henan enterprises through various capital market tools [8][9]. - The company has successfully completed significant projects, including the only approved refinancing project in Henan, demonstrating its capability in capital market operations [9][10]. Group 5: Future Focus - The board's focus for 2025 includes deepening reforms, enhancing operational efficiency, and improving the quality of core business development, particularly in wealth management and investment banking [11][12]. - The company aims to leverage technology and digitalization to enhance its operational capabilities and service delivery [15][16].

| | | 1.2024年度董事会工作报告 ………………………………… (1) 2.2024年度监事会工作报告 ………………………………… (12) 3.2024年度独立董事述职报告 (1)2024年度独立董事述职报告 ……………… 陈志勇 (18) (2)2024年度独立董事述职报告 ……………… 曾 崧 (30) (3)2024年度独立董事述职报告 ……………… 贺 俊 (42) (4)2024年度独立董事述职报告 ……… 张东明 (离任)(54) 4.2024年年度报告 …………………………………………… (64) 5. 关于2024年度利润分配预案暨2025年中期利润分配授权的 议案 ………………………………………………………… (65) 6.2024年度财务决算报告 …………………………………… (67) 7. 关于续聘2025年度审计机构的议案 …………………… (74) 8.2024年度董事考核及薪酬情况专项说明 ………………… (78) 9.2024年度监事考核及薪酬情况专项说明 ………………… (80) 10. 关于确定2025年度证券自营业务规模及风险限额的议案 ………………………………… ...

Market Overview - On June 20, the A-share market experienced slight fluctuations, with the Shanghai Composite Index facing resistance around 3369 points[2] - The Shanghai Composite Index closed at 3359.90 points, down 0.07%, while the Shenzhen Component Index closed at 10,005.03 points, down 0.47%[6] - Total trading volume for both markets was 1,091.9 billion yuan, slightly lower than the previous trading day[6] Sector Performance - Banking, liquor, insurance, and photovoltaic equipment sectors performed well, while mining, precious metals, cultural media, and gaming sectors lagged[3] - Over 60% of stocks in the two markets declined, with the banking and liquor sectors seeing significant capital inflows[6] Valuation Metrics - The average P/E ratios for the Shanghai Composite and ChiNext indices are 13.83 times and 36.38 times, respectively, indicating a mid-range valuation over the past three years[3] - The current trading volume is above the median level for the past three years, suggesting a stable market environment[3] Economic Outlook - China's economy continues to show moderate recovery, driven by consumption and investment[3] - The market anticipates that the Federal Reserve may implement its next interest rate cut as early as September, which could lead to further easing of overseas liquidity[3] Investment Recommendations - Short-term investment opportunities are suggested in the banking, insurance, liquor, and shipbuilding sectors[3] - Investors are advised to closely monitor policy changes, capital flows, and international market conditions for potential impacts on the A-share market[3]

Group 1 - The core viewpoint of the report indicates that the revenue growth of food and beverage listed companies is expected to remain in single digits in 2025, slightly higher than the overall industry growth, with a favorable cost environment supporting profit margins [1] - Since 2020, the food and beverage industry has experienced significant changes, transitioning from high growth to reasonable growth, with further narrowing expected in 2024 [1][2] - Despite the slowdown in growth and product structure upgrades, emerging markets such as prepared dishes, baking, health products, and tea drinks are thriving, reflecting a trend of consumer upgrading towards enjoyment and entertainment [1] Group 2 - The revenue growth of the food and beverage sector has generally slowed down since 2020, with further declines anticipated in 2024 and the first quarter of 2025 [2] - The increase in gross margins for most food and beverage sub-sectors is attributed to declining upstream prices rather than internal product structure upgrades, indicating reliance on external factors for profitability [2] - The food and beverage sector has recorded negative returns in the secondary market for four consecutive years from 2021 to 2024, with only soft drinks, health products, and snacks showing positive returns [3] Group 3 - The valuation of the food and beverage sector has dropped to a historical low, reflecting an adjustment to changes in performance growth, with the valuation center expected to find a new reasonable position below historical levels [3]

Group 1 - The report highlights the importance of balancing stock and bond markets during the initial phase of economic recovery, with a focus on policy-driven factors and external shocks [6][51]. - The bond market is expected to experience fluctuations driven by policy dynamics, external impacts, and economic data divergence, with a continued likelihood of interest rate cuts [51][52]. - The equity market is anticipated to benefit from ongoing policy support, improved liquidity, and a gradual economic recovery, leading to a dynamic interplay between growth and value stocks [7][59]. Group 2 - The report suggests focusing on three main industry themes for the second half of 2025: technology self-sufficiency, domestic consumption stimulation, and dividend assets [8]. - The technology sector, particularly in communications, electronics, and artificial intelligence, is positioned for growth due to increased capital expenditure and inventory replenishment [8][19]. - The consumer sector, including food and beverage, home appliances, and pharmaceuticals, is expected to see investment opportunities driven by government policies aimed at boosting consumption [8][43]. Group 3 - The report indicates that the domestic economic environment is gradually improving, with GDP growth increasing from 4.8% in the first three quarters of 2024 to 5.4% in the first quarter of 2025 [6][19]. - The retail sales of consumer goods showed a cumulative year-on-year growth of 5% from January to May 2025, with a notable increase in May to 6.4%, indicating a recovery in consumer sentiment [19][20]. - Fixed asset investment growth has also shown a slight increase, reflecting a stable investment environment, although real estate investment remains under pressure with a cumulative year-on-year decline of 10.7% [19][20].

Core Viewpoint - Zhongyuan Securities maintains an "outperform" investment rating for the power and utilities sector based on industry development prospects, performance growth expectations, and valuation levels [1] Industry Overview - The power and utilities sector is characterized by strong defensiveness and stable performance growth, with projected revenue and net profit growth in 2024 [1] - As of June 15, 2025, the power and utilities index increased by 2.25%, outperforming the CSI 300 index by 4.05 percentage points [1] Subsector Analysis - Hydropower shows the most stable performance and highest dividend ratio, while nuclear power is affected by declining market electricity prices [2] - In 2024, power generation companies contributed over 82% of the net profit in the power and utilities sector [2] - Hydropower revenue and net profit are expected to grow due to favorable water conditions and reduced financial costs [2] Investment Themes - Hydropower is highlighted as a representative of dividend assets with a deep natural monopoly and significant profit potential due to low generation costs [3] - Long-term investment focus is recommended on major hydropower operators such as Yangtze Power, Huaneng Hydropower, and Chuanwei Energy [3] - Coal-fired power is gradually enhancing its utility attributes, with a recommendation to consider the joint development of hydropower and coal-fired power by Guotou Power [3] - Nuclear power operators are expected to maintain strong profitability, although market price declines may impact their performance in 2025 [3] - New energy generation faces challenges from declining average electricity prices despite rapid capacity growth [3]

Investment Rating - The industry is rated as "outperforming the market," indicating an expected increase of over 10% relative to the CSI 300 index within the next six months [15]. Core Views - The A-share market experienced a slight upward trend after an initial decline, with significant support at 3376 points for the Shanghai Composite Index. Key sectors such as electronic components, consumer electronics, communication equipment, and semiconductors showed strong performance, while sectors like pesticides, small metals, beauty care, and medical services lagged behind [2][3][7]. - The average price-to-earnings (P/E) ratios for the Shanghai Composite Index and the ChiNext Index are currently at 13.90 times and 36.94 times, respectively, which are at the median levels over the past three years, suggesting a favorable environment for medium to long-term investments [3][14]. - The market is expected to maintain a steady upward trend in the short term, with structural opportunities still present despite recent geopolitical tensions and technical market influences. Key areas to watch include developments in the Middle East, policy signals from the Lujiazui Forum, and changes in trading volume [3][14]. Summary by Sections A-share Market Overview - On June 18, the A-share market showed a pattern of initial decline followed by a recovery, with the Shanghai Composite Index closing at 3388.81 points, up 0.04%. The total trading volume for both markets was 12,219 billion, slightly lower than the previous trading day [7][8]. - The electronic components, optical electronics, consumer electronics, wind power equipment, and aerospace sectors led the gains, while sectors such as pesticides, beauty care, small metals, and medical services faced declines [7][9]. Future Market Outlook and Investment Recommendations - The report suggests that the current economic recovery in China is moderate, with consumption and investment as the main driving forces. The market anticipates potential interest rate cuts by the Federal Reserve as early as September, which could lead to further easing of overseas liquidity [3][14]. - Short-term investment opportunities are recommended in sectors such as consumer electronics, communication equipment, semiconductors, and aerospace [3][14].