Report Summary 1. Report Industry Investment Rating No information provided. 2. Report's Core View No information provided. 3. Summary According to Relevant Catalogs 3.1. Research Basic Situation - The research object is Xingrong Environment, belonging to the public utilities industry. The reception time was July 9, 2025, and the listed company's reception staff was Liu Jie [17]. 3.2. Detailed Research Institutions - The research institutions include China Merchants Cigna (a life - insurance company with related personnel Chai Ruoqi, Peng Yiyang, and Zhao Ruoqiong), CITIC Asset Management (an asset management company with related personnel Zhang Xiaoliang, Sun Shuguang, Yuan Zhizhi, and Liu Jiangchao), and Changjiang Securities (a securities company with related personnel Xu Ke and Li Bowen) [18]. 3.3. Main Content Data - **Company's Main Business**: Xingrong Environment is a leading comprehensive water - environmental protection service provider in China, integrating investment, R & D, design, construction, and operation. Its business segments include tap - water business, sewage treatment and reclaimed - water utilization business, environmental protection business (including waste incineration power generation, landfill leachate treatment, sludge disposal, and food waste disposal), and engineering business [25]. - **Water Supply and Drainage Projects**: The scale of the company's current operating and under - construction water supply projects is about 4.3 million tons per day, with the remaining 400,000 tons per day of the third phase of Chengdu Tap - water Plant No.7 in the trial - operation stage. The scale of the company's current operating and under - construction sewage treatment projects exceeds 4.8 million tons per day, with over 4.5 million tons per day already in operation. The under - construction projects are planned to be put into operation in the next 1 - 2 years [27]. - **Water Supply and Drainage Pricing Mechanism**: For the water supply business, price adjustments can be applied to the government price administrative department under certain conditions. The adjustment must go through procedures such as cost supervision and hearings and be adjusted synchronously with upstream resource water prices. For the sewage treatment business, the service - fee unit price is adjusted regularly every 2 or 3 years according to the franchise agreement. Temporary adjustments can be applied for due to factors such as changes in sewage - treatment discharge standards. The tentative average sewage - treatment service fee in the fifth phase (2024 - 2026) in the central urban area of Chengdu is 2.63 yuan per ton [29][30]. - **Waste Incineration Power Generation Project**: The company is currently promoting the construction of the third phase of Chengdu Wanxing Environmental Protection Power Plant, with a domestic - waste treatment scale of 5,100 tons per day, a sludge co - treatment scale of 800 tons per day, and a food - waste treatment scale of 800 tons per day. It is expected to be put into operation in 2026 [32]. - **Sludge Disposal Business**: The scale of the company's current operating and under - construction sludge - disposal projects is 3,116 tons per day. Operating projects include the first, second, and third phases of Chengdu First Urban Sewage Sludge Treatment Plant (with a total treatment scale of 1,400 tons per day), the first and second phases of Wanxing Environmental Protection Power Plant (with a total sludge co - treatment scale of 820 tons per day), and a ditch - sludge disposal project (with a treatment scale of about 96 tons per day). The under - construction project is the third phase of Chengdu Wanxing Environmental Protection Power Plant, with a sludge co - treatment scale of 800 tons per day [34][35]. - **Accounts Receivable**: With the company's market expansion and business - scale growth in recent years, accounts receivable have increased. The company attaches great importance to accounts - receivable management and actively conducts collection work [37]. - **Capital Expenditure and Dividends**: The company has had large capital expenditures in recent years due to multiple water - supply, drainage, and solid - waste projects. These projects will be put into operation in the next 1 - 2 years, and capital expenditures will gradually decline. The company values shareholder returns and has been increasing the cash - dividend ratio in recent years. In the future, it will be more capable of further improving the level of shareholder returns [38].

Group 1: Company Overview - The company is a leading comprehensive water and environmental service provider in China, integrating investment, research and development, design, construction, and operation [2] - Main business areas include drinking water supply, wastewater treatment, reclaimed water utilization, and environmental protection services [2] Group 2: Project Scale and Status - Current operational and under-construction water supply projects have a total scale of approximately 4.3 million tons per day, with ongoing projects primarily at Chengdu Water Plant Phase III [3] - The company operates and has under construction wastewater treatment projects exceeding 4.8 million tons per day, with over 4.5 million tons per day already in operation [3] Group 3: Pricing Mechanisms - Water supply pricing adjustments are based on national policies and must go through cost audits and public hearings [3] - The average wastewater treatment service fee in Chengdu's central urban area for 2024-2026 is set at 2.63 CNY per ton, with adjustments occurring every 2-3 years based on specific conditions [3] Group 4: Waste Management Projects - The company is advancing the Chengdu Wanxing Environmental Power Plant (Phase III) project, which will handle 5,100 tons of household waste per day and 800 tons of kitchen waste per day, expected to be operational by 2026 [4] - Current operational and under-construction sludge disposal projects have a total scale of 3,116 tons per day [4] Group 5: Financial Management - The company has seen an increase in accounts receivable due to market expansion and is actively managing collections [4] - Future capital expenditures are expected to decrease as major projects are completed and begin to generate benefits, with a focus on increasing cash dividends for shareholders [4]

Group 1: Business Overview - The company's water supply business operates in Sichuan, Jiangsu, and Hainan, with a total capacity of approximately 4.3 million tons/day, including a project in Chengdu currently in trial operation with a capacity of 400,000 tons/day [2] - The wastewater treatment business spans Sichuan, Gansu, Ningxia, Shaanxi, Jiangsu, Hebei, Shandong, and Tibet, with over 4.8 million tons/day in total capacity, of which over 4.5 million tons/day are operational [2] - The waste incineration power generation business has a total capacity of 12,000 tons/day, with 6,900 tons/day currently operational; a project with a capacity of 5,100 tons/day is planned to be operational by 2026 [3] Group 2: Market Expansion Strategy - The company aims to be a national water and environmental service provider, focusing on expanding its market presence in Chengdu and surrounding areas while pursuing acquisitions to enhance resource integration and industry segmentation [3] Group 3: Operational Advantages - The company boasts nearly 80 years of water supply operation experience and over 30 years in wastewater treatment, leading to superior operational management capabilities [3] - The company implements standardized and refined management practices, leveraging operational innovations and digital empowerment to reduce costs and improve efficiency [3] Group 4: Pricing and Capital Expenditure - Water pricing adjustments are subject to national policies and must go through cost audits and public hearings before implementation [4] - The company has significant capital expenditures due to multiple ongoing projects, but these are expected to decrease as projects come online in the next 1-2 years, allowing for increased shareholder returns [4]

Investment Rating - The report rates the environmental industry as "Overweight," indicating that the industry is expected to outperform the overall market [2][10]. Core Insights - Municipal water services are operating steadily, with some companies benefiting from strategic expansion and adjustments in sewage treatment pricing. However, the overall demand for sewage engineering is declining, leading to a forecasted slight decrease in engineering business [3]. - The waste incineration sector is stable, but performance varies among companies due to factors such as historical electricity revenue recognition and increased depreciation from new capacity. Major companies are expected to show varied net profit growth in Q1-Q2 2025 [3]. - The sanitation market remains stable, with no significant profit contribution from automation technologies yet. Major companies are expected to see steady net profit growth [3]. - Equipment performance is diverging due to different downstream impacts. Conventional equipment companies may face margin pressure, while power environmental equipment is benefiting from increased demand [3]. Summary by Category Municipal Water Services - Overall operations are stable, with net profit growth expected for major companies: Tianyuan Environmental (+50%), Xingrong Environment (+8%), and Hongcheng Environment (+4%) in Q1-Q2 2025 [3][4]. Waste Incineration - The sector is stable, with varied net profit growth: Huanlan Environment (+1%), Junxin Co. (+42%), Green Power (+25%), Chengfa Environment (+10%), and Yongxing Co. (+7%) [3][4]. Sanitation - The sanitation market is stable, with expected net profit growth for major companies: Yingfeng Environment (+5%) and Yuhua Tian (+7%) [3][4]. Equipment - Conventional equipment companies are facing competitive pressure, with expected declines in net profit growth: Jingjin Equipment (-15%). In contrast, power environmental equipment companies are seeing significant growth: Qingda Environmental (+359%) and water treatment equipment companies like Wotton Technology (+23%) [3][4]. Investment Recommendations - Municipal environmental companies are recommended for their stable profitability and improving cash flow, including Junxin Co., Huanlan Environment, Xingrong Environment, Green Power, Hongcheng Environment, Yongxing Co., Yuehai Investment, and Guangda Environment [3]. - Companies in the unmanned sanitation sector, such as Yingfeng Environment and Yuhua Tian, are recommended for their potential in digital transformation [3]. - SAF suppliers and raw material providers are highlighted for their growth potential due to EU policies [3]. - Wotton Technology is recommended for its ongoing import substitution in reverse osmosis membranes [3].

Core Viewpoint - The company has completed the second unlock period of its 2022 restricted stock incentive plan, allowing 510 eligible participants to unlock a total of 4.545 million shares, which will be listed for trading on July 9, 2025 [1][13]. Summary by Sections Incentive Plan Approval and Disclosure - The company held board and supervisory meetings to approve the 2022 restricted stock incentive plan and its related management measures [1][3]. - The plan was filed with the Chengdu State-owned Assets Supervision and Administration Commission, which provided a principle agreement for the plan [2]. Unlock Conditions and Compliance - The second unlock period has been reached, with the conditions for unlocking met, including no significant objections from supervisory bodies and compliance with financial reporting standards [6][9]. - The company maintained a sound governance structure and met performance assessment requirements, including a minimum earnings per share of 0.5884 yuan and revenue of at least 8 billion yuan for 2023 [9][10]. Unlock Details - A total of 4.545 million shares will be unlocked, representing approximately 0.1523% of the company's total share capital [14]. - The number of eligible participants for this unlock is 510, with the total number of restricted shares granted being 1,515 million [14][15]. Changes in Share Structure - Following the unlock, the structure of the company's shares will change, with the number of restricted shares decreasing from 9,636,500 to 5,091,500, while unrestricted shares will increase accordingly [17]. Documentation and Legal Compliance - The company has prepared various documents for review, including board resolutions and legal opinions, to ensure compliance with regulations [18].

证券代码：000598 证券简称：兴蓉环境 公告编号：2025-37 成都市兴蓉环境股份有限公司 关于 2022 年限制性股票激励计划第二个解除限售期 解除限售股份上市流通的提示性公告 本公司及董事会全体成员保证信息披露内容的真实、准确、完整， 没有虚假记载、误导性陈述或重大遗漏。 特别提示： 1、本次解除限售的激励对象共510名，解除限售的限制性股票数量共 454.50万股，约占目前公司总股本的0.1523%。 2、本次解除限售的限制性股票上市流通日期：2025年7月9日。 2025年7月1日，成都市兴蓉环境股份有限公司（以下简称：公司）召 开第十届董事会第二十四次会议和第十届监事会第十三次会议，审议通过 了《关于2022年限制性股票激励计划第二个解除限售期股份解除限售事项 的议案》，本激励计划第二个限售期已届满且相应的解除限售条件已经成 就，董事会同意公司按照激励计划相关规定，为510名符合解除限售条件 的激励对象统一办理解除限售手续。截至本公告披露日，公司已于中国证 券登记结算有限责任公司深圳分公司（以下简称：中国结算深圳分公司） 办理完毕解除限售手续，本次解除限售的454.50万股限制性股票将于202 ...

Core Viewpoint - The company, Xingrong Environment, is a leading comprehensive water and environmental service provider in China, focusing on investment, research, design, construction, and operation across various segments of the water and waste management industry [2][7]. Business Overview - The company's main business segments include water supply, wastewater treatment, water reuse, and environmental services, which encompass waste incineration power generation, leachate treatment, sludge disposal, and kitchen waste disposal [2]. Operational Projects - The company currently operates and has under construction water supply projects with a total capacity of approximately 4.3 million tons per day and wastewater treatment projects exceeding 4.8 million tons per day. Notable projects include the Chengdu Xiwayan Reclaimed Water Plant, which has commenced operations, and several others in the commissioning phase [3]. Waste-to-Energy Projects - The company is advancing the Chengdu Wanxing Environmental Power Plant (Phase III), which will handle 5,100 tons per day of municipal waste, 800 tons per day of sludge, and 800 tons per day of kitchen waste, with an expected operational date in 2026 [4]. Accounts Receivable Management - The company has seen an increase in accounts receivable due to market expansion and business growth, and it places significant emphasis on managing and collecting these receivables [5]. Pricing Mechanism - The pricing for wastewater treatment services is determined by agreements with government entities, typically adjusted every 2 to 3 years. A recent approval set the tentative average price for wastewater treatment in Chengdu's central urban area at 2.63 yuan per ton for the 2024-2026 period [6]. Capital Expenditure and Dividends - The company has experienced substantial capital expenditures due to multiple ongoing water supply and waste projects, with expectations of reduced expenditures as these projects come online. The company is committed to increasing cash dividends for shareholders as operational capacity expands [7]. Financial Performance - In the first quarter of 2025, the company reported a main revenue of 2.023 billion yuan, a year-on-year increase of 9.61%. The net profit attributable to shareholders was 508 million yuan, up 11.19% year-on-year, with a debt ratio of 58.99% and a gross margin of 46.02% [7]. Analyst Ratings - Over the past 90 days, six institutions have rated the stock, with four buy ratings and two hold ratings, and the average target price set at 7.36 yuan [8]. Earnings Forecast - Various institutions have provided earnings forecasts for the company, with projected net profits for 2025 ranging from 2.115 billion yuan to 2.331 billion yuan, and increasing in subsequent years [9].

Group 1: Company Overview - The company is a leading comprehensive water and environmental service provider in China, with a complete industrial chain including investment, research and development, design, construction, and operation [2][3]. Group 2: Project Operations - The company currently operates and has under construction water supply projects with a scale of approximately 4.3 million tons/day and wastewater treatment projects exceeding 4.8 million tons/day [3]. - The Chengdu Xiwayan Reclaimed Water Plant has been put into operation this year, while the Chengdu Water Supply Plant Phase III (remaining 400,000 tons/day) and Chengdu Sixth Reclaimed Water Plant (Phase II) are in debugging or trial operation stages [3]. Group 3: Waste-to-Energy Projects - The company is advancing the Chengdu Wanxing Environmental Power Plant (Phase III) project, which has a household waste treatment capacity of 5,100 tons/day, sludge co-treatment capacity of 800 tons/day, and kitchen waste treatment capacity of 800 tons/day, expected to be operational by 2026 [3]. Group 4: Accounts Receivable Management - The company has seen an increase in accounts receivable due to market expansion and business growth, and it places high importance on accounts receivable management and collection efforts [3]. Group 5: Pricing Mechanism - The wastewater treatment service fee is adjusted according to the terms set in the franchise agreement with relevant government entities, typically reviewed annually or biannually. The tentative price for the fifth phase (2024-2026) of wastewater treatment services in Chengdu's central urban area is set at 2.63 CNY/ton [4]. Group 6: Capital Expenditure and Dividends - The company has significant capital expenditures due to multiple water supply and solid waste projects, which are expected to decrease as these projects come online in the next 1-2 years. The company emphasizes shareholder returns and aims to increase cash dividend ratios as major projects are completed and capacity is released [4].

Core Viewpoint - The report discusses the completion of the second lock-up period for the 2022 restricted stock incentive plan of Chengdu Xingrong Environment Co., Ltd, including the conditions for lifting the lock-up and the related stock repurchase and cancellation matters [4][21]. Summary by Sections Approval and Authorization of the Incentive Plan - On April 8, 2022, the company’s board approved the draft of the 2022 restricted stock incentive plan and related management measures [4]. - The plan received preliminary approval from the Chengdu State-owned Assets Supervision and Administration Commission on April 20, 2022 [5]. - The annual shareholders' meeting on May 17, 2022, approved the incentive plan, granting the board full authority to manage related matters [6]. Conditions for Lifting Lock-up - The second lock-up period has been completed, with the first and second lock-up periods set at 24 months and 36 months, respectively [10]. - The conditions for lifting the lock-up have been met, including no significant objections from supervisory bodies and compliance with financial reporting standards [11][12]. Details of the Lock-up Release - A total of 510 individuals are eligible for the release, with 4.545 million shares available for release, accounting for approximately 0.1523% of the total share capital [16]. - The release includes specific individuals such as directors and core employees, with detailed share allocations provided [18]. Stock Repurchase and Cancellation - The company plans to repurchase and cancel 570,000 shares due to individuals no longer qualifying as incentive recipients [8]. - The repurchase price is adjusted to 2.4590 yuan per share, reflecting the dividend adjustments [20]. Independent Financial Advisor's Opinion - The independent financial advisor confirms that the conditions for lifting the lock-up have been met and that the actions taken comply with relevant regulations, ensuring no adverse impact on the company's financial status or shareholder interests [21].

Core Viewpoint - The announcement details the completion of the second unlock period for the 2022 restricted stock incentive plan of Chengdu Xingrong Environment Co., Ltd, allowing 510 participants to unlock a total of 4.545 million shares, representing approximately 0.1523% of the company's total share capital [1][15][18]. Summary by Sections Incentive Plan Approval and Disclosure - The incentive plan was approved through various board and supervisory meetings held in April and May 2022, with independent directors and the supervisory board providing their consent [2][3][4]. - The plan was registered with the Chengdu State-owned Assets Supervision and Administration Commission, which provided a letter of principle agreement [2]. Unlock Conditions and Achievements - The second unlock period has been reached, with the conditions for unlocking met, including no significant objections from supervisory bodies regarding the company's performance [8][9]. - The company achieved the required performance metrics, including an earnings per share of 0.6204 yuan and revenue of 8.087 billion yuan for 2023, surpassing industry averages [10][11]. Unlock Details - A total of 510 individuals are eligible for unlocking, with 4.545 million shares available for release [15][18]. - The unlocking process follows the established schedule, with the second unlock period concluding on June 28, 2025 [8][9]. Changes in Incentive Participants - The company has seen a reduction in eligible participants, with 46 individuals no longer qualifying for the incentive plan, leading to the repurchase of 570,000 shares [17][19]. - The total number of participants currently stands at 510, with a total of 15.15 million shares granted under the plan [17]. Compliance and Legal Opinions - The board's remuneration and assessment committee confirmed that the unlocking conditions were met in accordance with relevant regulations [18]. - Legal and financial advisors have provided opinions affirming that the unlocking process complies with applicable laws and will not adversely affect the company's financial status or shareholder interests [18][19].