Core Insights - The company experienced a slight decline in revenue but a significant increase in profit during the first half of 2025, with total revenue at 1.873 billion yuan, down 1.74% year-on-year, while net profit attributable to shareholders rose by 46.23% to 121 million yuan [1][2] Group 1: Financial Performance - Revenue from the electricity business grew by 8.41% to 1.095 billion yuan, while revenue from the heating business fell by 13.20% to 735 million yuan [1] - The company's gross profit margin improved significantly to 23.04%, an increase of 2.63 percentage points year-on-year, with the electricity business margin rising by 7 percentage points to 21.78% [1] - The company reported a non-recurring net profit of 146 million yuan, a substantial increase of 150% year-on-year, despite a loss of 33.1 million yuan from the sale of the Yutai project [1] Group 2: Cash Flow and Dividends - The net cash flow from operating activities was negative at -167 million yuan, a decline of 252.89% year-on-year, primarily due to the absence of large subsidies received in the previous year [2] - The company initiated a mid-term cash dividend of 111 million yuan, with a payout ratio of 92.3%, indicating an increased focus on shareholder returns [2] Group 3: Growth Potential - The company has significant potential for carbon credit generation through its biomass power projects, with an estimated annual capacity of 1.8 million tons of CCER from its 446 MW biomass capacity, ranking third nationally [2]

Core Viewpoint - Guangdong Changqing (Group) Co., Ltd. held an investor relations event, attracting numerous institutions, to discuss its financial performance and future strategies [1][2]. Group 1: Financial Performance - In the first half of 2025, the company's revenue was 1.873 billion, a slight decrease compared to the same period last year, primarily due to a reduction in steam prices linked to coal prices, leading to decreased heating revenue [1]. - The company's net profit excluding non-recurring items reached 146 million, a year-on-year increase of 150.33%, driven by lower fuel costs and an increase in the number of biomass projects benefiting from VAT incentives [1]. - The company plans to distribute a cash dividend of 110 million for the first time in the mid-term [1][2]. Group 2: Operational Insights - The company has implemented measures to enhance the value of fuel output, including sourcing local fuel resources, controlling quality, and developing diverse fuel types [2]. - Revenue composition shows that electricity generation accounts for nearly 60% of total revenue, while heating revenue constitutes about 40% [2]. - Twelve projects are included in the subsidy directory, with only two projects remaining unlisted [2]. Group 3: Future Strategies and Collaborations - The company is preparing for CCER (China Certified Emission Reduction) applications for biomass projects, with expectations of generating over 120,000 tons of voluntary carbon reduction annually from a single 30MW biomass project [2]. - A new team has been established for the joint venture with Zhongke Xinkong, focusing on smart upgrades for biomass projects, with potential expansion into other areas [2]. - The mid-term dividend payout ratio is set at 92.3%, reflecting the company's operational performance, cash flow, and development plans [2].

Group 1: Financial Performance - The company's revenue for the first half of 2025 was 1.873 billion, a slight decrease compared to the same period last year, primarily due to a reduction in heating income from the industrial park's coal-fired centralized heating project as coal prices fell [3] - The non-recurring net profit reached 146 million, an increase of 150.33% year-on-year, attributed to lower fuel costs and an increase in biomass project output benefiting from VAT incentives [3] - The company plans to distribute a cash dividend of 110 million for the first time in the mid-term [3] Group 2: Project Developments - The company currently operates 14 biomass power generation projects, with nearly 60% of total revenue coming from power generation and approximately 40% from heating [5] - Twelve of the biomass projects have already generated heating income, indicating a growth in heating demand [5] - The company has 12 projects included in the subsidy directory, with only two remaining to be registered [6] Group 3: CCER Participation - The company anticipates that its biomass cogeneration projects will be eligible to participate in CCER trading based on the recently released draft methodology by the Ministry of Ecology and Environment [6] - Each biomass cogeneration project with a capacity of 30MW is expected to generate over 120,000 tons of voluntary carbon reduction annually upon participation in CCER trading [7] - The company prefers to participate in CCER trading due to the significant price difference compared to green certificates [7] Group 4: Asset Management - The sale of the Yutai project resulted in a loss of 30.9 million, which is expected to improve liquidity for business expansion [9] - The sale of two garbage power generation projects in Zhongshan will impact the current year's profits, but it is aimed at enhancing the company's financial cushion and focusing on the biomass energy sector [9] Group 5: Dividend Policy - The mid-term dividend payout ratio is as high as 92.3%, reflecting the company's improved operational and cash flow conditions [8] - Future dividends will be implemented in accordance with the company's shareholder return plan, ensuring normal operations and long-term development [8]

Core Insights - Longqing Group (002616.SZ) reported a total operating revenue of 1.873 billion yuan for the first half of 2025, with a net profit attributable to shareholders of 121 million yuan, marking an increase of 38.1343 million yuan compared to the same period last year, representing a year-on-year growth of 46.23% [1] Financial Performance - The company's latest asset-liability ratio stands at 71.96%, a decrease of 1.45 percentage points from the previous quarter and a decrease of 1.96 percentage points from the same period last year [3] - The latest gross profit margin is 23.04%, an increase of 2.63 percentage points year-on-year, achieving three consecutive years of growth [3] - The latest return on equity (ROE) is 4.12%, ranking 49th among disclosed peers, with an increase of 1.03 percentage points compared to the same period last year [3] - The diluted earnings per share (EPS) is 0.16 yuan, an increase of 0.05 yuan compared to the same period last year, also achieving three consecutive years of growth, with a year-on-year increase of 46.22% [3] Operational Efficiency - The company's total asset turnover ratio is 0.18 times, ranking 25th among disclosed peers, while the inventory turnover ratio is 5.25 times [4] Shareholder Structure - The number of shareholders is 24,800, with the top ten shareholders holding a total of 501 million shares, accounting for 67.46% of the total share capital [4] - The largest shareholder, He Qiqiang, holds 25.77% of the shares, followed by Mai Zhihui with 23.06% and Zhongshan Longqing New Industry Co., Ltd. with 11.97% [4]

Core Viewpoint - Changqing Group reported a mixed financial performance for the first half of 2025, with a slight decline in total revenue but a significant increase in net profit, indicating improved profitability despite revenue challenges [1][3]. Financial Performance Summary - Total revenue for the first half of 2025 was 1.873 billion yuan, a decrease of 1.74% year-on-year [1]. - Net profit attributable to shareholders reached 121 million yuan, an increase of 46.23% year-on-year [1]. - In Q2 2025, total revenue was 912 million yuan, down 0.05% year-on-year, while net profit was 39.58 million yuan, up 49.36% year-on-year [1]. - Gross margin improved to 23.04%, up 12.9% year-on-year, and net margin increased to 6.51%, up 47.93% year-on-year [1]. - Earnings per share rose to 0.16 yuan, a 46.22% increase year-on-year [1]. Cash Flow and Investment Summary - Cash flow from operating activities showed a significant decline of 252.89%, attributed to the timing of electricity bill collections [3]. - Cash flow from investing activities increased by 241.47%, due to higher proceeds from equity sales [3]. - Cash and cash equivalents increased by 33.53%, driven by improved cash flow from investing activities [3]. Debt and Receivables Summary - Accounts receivable increased by 13.05%, primarily due to an increase in pending subsidy electricity bill collections [3]. - The company’s interest-bearing debt rose slightly by 0.77% [1]. - The ratio of accounts receivable to profit reached 1634.21%, indicating potential concerns regarding receivables management [5]. Historical Performance and Ratios - The company's return on invested capital (ROIC) was 5.8%, with a historical median ROIC of 5.44% over the past decade [4]. - The net profit margin for the previous year was 5.79%, suggesting average value addition from products or services [4]. - The company has reported one loss year since its IPO, indicating a need for careful analysis of its financial history [4]. Analyst Expectations - Analysts project that the company will achieve a net profit of 330 million yuan in 2025, with an average earnings per share estimate of 0.44 yuan [5].

Core Insights - Longqing Group reported a decrease in the number of shareholders to 24,793 as of June 30, 2025, down by 13 from March 31, 2025, representing a reduction of 0.05% [1] - The average shareholding value per shareholder is 177,800 yuan, which is below the industry average of 290,000 yuan for A-share listed companies in the power sector [1][2] - The stock price of Longqing Group increased by 3.48% from March 31, 2025, to June 30, 2025, despite the decrease in shareholder numbers [1] Shareholder Statistics - As of June 30, 2025, the average number of shares held per shareholder is 29,900, unchanged from the previous period [2] - The number of shareholders decreased significantly from 24,806 on March 31, 2025, which was a drop of 4,403 or 15.07% [2] - The average shareholding value per shareholder increased from 171,700 yuan on March 31, 2025, to 177,800 yuan on June 30, 2025 [2] Capital Flow - During the period from March 31, 2025, to June 30, 2025, the net outflow of main funds was 122 million yuan, while retail investors saw a net inflow of 89.82 million yuan [2]

Core Viewpoint - The company has approved a profit distribution plan for the first half of 2025, proposing a cash dividend of 1.5 yuan per 10 shares, totaling approximately 111.30 million yuan, while not planning to increase capital through reserves or issue bonus shares [12][21][27]. Company Overview - The company has not undergone any changes in its controlling shareholder or actual controller during the reporting period [5]. - The company’s total share capital is 742,025,996 shares [12][21]. Financial Data and Indicators - The company reported a net profit attributable to shareholders of approximately 120.63 million yuan for the first half of 2025, with retained earnings of about 1.00 billion yuan as of June 30, 2025 [27][29]. - The company’s parent entity achieved a net profit of approximately 267.21 million yuan, with a legal reserve of about 26.72 million yuan [27]. Important Events - On February 18, 2025, the company signed an agreement to transfer 100% equity of its subsidiary, Yutai Environmental Protection, for a total consideration of 293 million yuan, with part of the payment already received [5][6]. - The company entered into a strategic cooperation framework agreement with Zhongke Xinkong Technology Co., aiming to promote digital transformation and smart upgrades in the industry [9][10]. - The company has completed the transfer of 49% equity in Beijing Zhongke Xinkong Big Data Co., with a transaction value of approximately 502,558.7 yuan [10]. Profit Distribution Plan - The proposed profit distribution plan is based on the current total share capital, with a cash dividend of 1.5 yuan per 10 shares, amounting to a total of approximately 111.30 million yuan [12][21][27]. - The plan includes provisions for adjustments in case of changes in share capital due to convertible bonds [28][29]. Upcoming Shareholder Meeting - The company plans to hold its third extraordinary general meeting of 2025 on September 15, 2025, to discuss the profit distribution proposal and other matters [31][32].

Important Notes, Table of Contents, and Definitions [Important Notes](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's management guarantees the report's authenticity and accuracy, and a cash dividend plan has been approved - The Board of Directors, Supervisory Committee, and senior management guarantee the authenticity, accuracy, and completeness of this semi-annual report, ensuring it is free from false records, misleading statements, or material omissions, and they assume individual and joint legal liability[4](index=4&type=chunk) - Company head He Qiqiang, chief accounting officer Huang Rongtai, and head of the accounting department Huang Yonglian declare that the financial statements in this semi-annual report are authentic, accurate, and complete[4](index=4&type=chunk) 2025 Semi-Annual Profit Distribution Plan | Metric | Value | | :--- | :--- | | Distribution Base (Shares) | 742,025,996 | | Cash Dividend per 10 Shares (CNY, incl tax) | 1.5 | | Bonus Shares per 10 Shares (incl tax) | 0 | | Capitalization of Capital Reserves | No | [Directory of Documents for Inspection](index=4&type=section&id=%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) This section lists the reference documents for the semi-annual report, available at the company's securities department and the Shenzhen Stock Exchange - Reference documents include financial statements signed and sealed by the legal representative, chief accounting officer, and head of the accounting department[8](index=8&type=chunk) - Originals of all company documents and announcements publicly disclosed in designated media during the reporting period are also available for inspection[9](index=9&type=chunk) - The documents for inspection are kept at the company's securities department and the Shenzhen Stock Exchange[12](index=12&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section provides definitions for key terms used in the report, including company names, regulations, and industry-specific terminology - "Evergreen Group," "the Company," or "this Company" refers to Guangdong Evergreen (Group) Co, Ltd[13](index=13&type=chunk) - "The current reporting period" or "the reporting period" refers to the period from January 1, 2025, to June 30, 2025[14](index=14&type=chunk) - "MW" refers to megawatt, an electrical unit where 1 megawatt = 1,000,000 watts; "kWh" refers to kilowatt-hour, a unit for measuring electricity consumption, often called a "unit"[14](index=14&type=chunk) Company Profile and Key Financial Indicators [Company Profile](index=7&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) Guangdong Evergreen (Group) Co, Ltd, stock code 002616, is listed on the Shenzhen Stock Exchange with He Qiqiang as the legal representative - **Stock Name**: Evergreen Group, **Stock Code**: 002616[16](index=16&type=chunk) - **Stock Exchange**: Shenzhen Stock Exchange[16](index=16&type=chunk) - **Legal Representative**: He Qiqiang[16](index=16&type=chunk) [Contacts and Contact Information](index=7&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) The company's Board Secretary is He Jun and the Securities Affairs Representative is Su Huiyi, both located in Zhongshan City, Guangdong Province - **Board Secretary**: He Jun, **Securities Affairs Representative**: Su Huiyi[17](index=17&type=chunk) - **Contact Address**: No 42, South Xiaolan Industrial Avenue, Zhongshan City, Guangdong Province[17](index=17&type=chunk) [Other Information](index=7&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) No changes occurred in the company's registration, office address, website, or information disclosure locations during the reporting period - The company's registered address, office address, postal code, website, and email address remained unchanged during the reporting period, with details available in the 2024 annual report[18](index=18&type=chunk) - The stock exchange website and media for disclosing the semi-annual report, as well as the location for report inspection, remained unchanged during the reporting period, with details available in the 2024 annual report[19](index=19&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In H1 2025, net profit attributable to shareholders grew significantly despite a slight revenue decrease and a negative turn in operating cash flow 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Period (CNY) | Prior Year Period (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,872,747,370.47 | 1,906,005,899.00 | -1.74% | | Net Profit Attributable to Shareholders | 120,627,031.11 | 82,492,756.02 | 46.23% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 146,218,608.46 | 58,410,157.09 | 150.33% | | Net Cash Flow from Operating Activities | -167,359,609.97 | 109,461,627.05 | -252.89% | | Basic Earnings per Share (CNY/Share) | 0.1626 | 0.1112 | 46.22% | | Diluted Earnings per Share (CNY/Share) | 0.1617 | 0.1112 | 45.41% | | Weighted Average Return on Equity | 4.21% | 3.08% | 1.13% | | **End-of-Period Indicators** | **End of Current Period (CNY)** | **End of Prior Year (CNY)** | **Change from Prior Year-End** | | Total Assets | 10,456,704,649.47 | 10,506,489,178.26 | -0.47% | | Net Assets Attributable to Shareholders | 2,925,118,835.44 | 2,804,835,501.96 | 4.29% | [Differences in Accounting Data under Domestic and Foreign Accounting Standards](index=8&type=section&id=%E4%BA%94%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) No discrepancies exist between net profit and net assets reported under Chinese accounting standards versus international or foreign accounting standards - The company reports no differences in net profit and net assets between financial reports prepared under international accounting standards and Chinese accounting standards[22](index=22&type=chunk) - The company reports no differences in net profit and net assets between financial reports prepared under foreign accounting standards and Chinese accounting standards[23](index=23&type=chunk) [Non-recurring Profit and Loss Items and Amounts](index=8&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) Non-recurring profit and loss for the period totaled -CNY 25,591,577.35, mainly from non-current asset disposal losses and government grants 2025 Semi-Annual Non-recurring Profit and Loss Items and Amounts | Item | Amount (CNY) | Notes | | :--- | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | -33,098,924.10 | Primarily net loss on disposal of assets and long-term assets | | Government Grants Recognized in Current Profit/Loss (Excluding Continuous Impact) | 1,200,302.78 | Government grants recorded in other income this period | | Other Non-operating Income and Expenses | 7,778,691.34 | - | | Other Items Meeting the Definition of Non-recurring Profit/Loss | 123,248.45 | Primarily personal income tax handling fee refunds and investment income | | Less: Income Tax Impact | 1,594,903.22 | - | | Minority Interest Impact (After Tax) | -7.40 | - | | **Total** | **-25,591,577.35** | - | Management Discussion and Analysis [Principal Business Activities During the Reporting Period](index=10&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company's main business is in environmental protection and governance, focusing on biomass cogeneration, centralized heating, and waste-to-energy projects - The company's main business includes agricultural and forestry biomass cogeneration, centralized coal-fired heating for industrial parks, and waste-to-energy generation, primarily engaged in power and heat production and comprehensive utilization of biomass[28](index=28&type=chunk) - The company is classified under category "N77 Ecological Protection and Environmental Governance" within the "N Water Conservancy, Environment and Public Facilities Management" industry[28](index=28&type=chunk) - As of the end of 2024, national biomass power generation installed capacity reached **45.99 million kW**, a year-on-year increase of **4.2%**; national biomass power generation in 2024 reached **208.3 billion kWh**, a year-on-year increase of **5.2%**[31](index=31&type=chunk) - The national voluntary greenhouse gas emission reduction trading market (CCER) officially restarted on January 22, 2024, which is expected to create new revenue streams for the company's biomass projects[35](index=35&type=chunk) [Industry Development](index=10&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%91%E5%B1%95%E6%83%85%E5%86%B5) National energy policies favor a green transition, with the carbon market and CCER restart presenting new opportunities for the biomass industry - The 2025 National Energy Work Conference emphasized the unwavering promotion of a green and low-carbon energy transition to build a new energy system based on non-fossil fuels[29](index=29&type=chunk) - The 2025 Government Work Report stressed the active and steady advancement of carbon peaking and neutrality, expanding the coverage of the national carbon emissions trading market[30](index=30&type=chunk) - In 2024, national biomass heating supply was approximately **489 million GJ**, with agricultural and forestry biomass cogeneration contributing about **137 million GJ**[33](index=33&type=chunk) [Principal Business Operations](index=11&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5) The company's main operations include biomass cogeneration, centralized coal-fired heating, and waste-to-energy, with a total biomass installed capacity of 446MW - The company's agricultural and forestry biomass cogeneration business uses crop straw and forestry waste as raw materials to produce heat and electricity, achieving resource recycling[37](index=37&type=chunk) - As of the end of the reporting period, the company's 14 agricultural and forestry biomass power projects had a total installed capacity of **446MW** and a boiler capacity of **1,920 tons/hour**[37](index=37&type=chunk) - By the end of the reporting period, **12** of the company's agricultural and forestry biomass power projects were included in the electricity price subsidy list[37](index=37&type=chunk) - The company's centralized coal-fired heating projects for industrial parks have a total installed capacity of **160MW**, all of which are operational[39](index=39&type=chunk) - The company has approved the transfer of 100% equity in its Zhongshan waste-to-energy projects and has received the first installment payment of **CNY 123.56 million**[42](index=42&type=chunk) [Operating Performance During the Reporting Period](index=13&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E7%BB%8F%E8%90%A5%E4%B8%9A%E7%BB%A9) Operating revenue slightly decreased by 1.74%, while net profit attributable to shareholders grew significantly by 46.23% due to lower fuel costs 2025 Semi-Annual Operating Performance Overview | Indicator | Amount (ten thousand CNY) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 187,274.74 | -1.74% | | Operating Profit | 15,498.97 | 55.41% | | Total Profit | 16,276.83 | 25.22% | | Net Profit Attributable to Shareholders | 12,062.70 | 46.23% | | Total Assets (End of Period) | 1,045,670.47 | -0.47% | | Equity Attributable to Shareholders (End of Period) | 292,511.88 | 4.29% | | Basic Earnings per Share | 0.1626 CNY | 46.22% | - The slight decrease in operating revenue was mainly due to the downward adjustment of steam prices in industrial park heating projects, which was synchronized with the decline in coal prices[43](index=43&type=chunk) - The significant increase in net profit attributable to shareholders was primarily due to **lower fuel costs** and an increase in the number of projects qualifying for VAT refund policies for comprehensive resource utilization[43](index=43&type=chunk) [Major Work Undertaken During the Reporting Period](index=13&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E4%B8%BB%E8%A6%81%E5%BC%80%E5%B1%95%E7%9A%84%E5%B7%A5%E4%BD%9C) The company enhanced operational efficiency through technical upgrades, expanded its customer base, and advanced its digital transformation via strategic investments - Biomass cogeneration projects saw synchronous growth in operating hours, power generation, and electricity sales, with several projects expanding into new heating and steam supply services[44](index=44&type=chunk) - Fuel supply was secured and cost-effectiveness improved by exploring local resources, optimizing fuel structure, and developing straw storage suppliers[44](index=44&type=chunk) - Several projects completed SCR environmental technology upgrades for boilers, achieving compliant emissions even under ultra-low load conditions and improving unit energy efficiency[45](index=45&type=chunk][46](index=46&type=chunk) - Centralized coal-fired heating projects successfully expanded their customer base to include food production enterprises and increased biomass co-firing ratios to enhance resilience[47](index=47&type=chunk) - The waste-to-energy project significantly improved efficiency, with **power generation per ton of waste increasing by 16.24% and 8.02%** year-on-year, while plant power consumption rates decreased[48](index=48&type=chunk) - The company acquired a **49% stake** in Beijing ZKXK Big Data Co, Ltd to jointly promote the industry's digital transformation and intelligent upgrading[49](index=49&type=chunk) [Core Competitiveness Analysis](index=14&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competitiveness lies in its strategic risk control, operational efficiency, and significant scale in the biomass power generation sector - The company aligns with national low-carbon strategies, with coal-fired projects benefiting from carbon quota sales and biomass projects poised to gain from CCER trading[51](index=51&type=chunk) - Leveraging its refined management experience from manufacturing, the company implements a scientific project expansion and review system, prioritizing regions with high heat demand[52](index=52&type=chunk) - Most of the company's biomass projects are cogeneration-capable, with 12 already generating heating revenue, and plans to deepen the circular utilization of biomass resources[54](index=54&type=chunk) - The company utilizes information systems for data analysis across projects to enable timely warnings and optimizations, enhancing production efficiency and cost control[55](index=55&type=chunk][56](index=56&type=chunk) - According to a Guosen Securities research report, the company ranks **third nationally and first among private enterprises** in terms of agricultural and forestry biomass power generation installed capacity in 2024[58](index=58&type=chunk) [Main Business Analysis](index=16&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Net profit grew 46.23% due to lower fuel costs and tax benefits, despite a 1.74% revenue decline and a significant drop in operating cash flow Key Financial Data YoY Changes for H1 2025 | Indicator | Current Period (CNY) | Prior Year Period (CNY) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,872,747,370.47 | 1,906,005,899.00 | -1.74% | - | | Operating Cost | 1,441,269,548.24 | 1,517,030,031.45 | -4.99% | - | | Finance Costs | 124,907,709.73 | 152,394,566.29 | -18.04% | - | | Net Cash Flow from Operating Activities | -167,359,609.97 | 109,461,627.05 | -252.89% | Mainly due to different timing of electricity payment collections | | Net Cash Flow from Investing Activities | 106,916,602.57 | -75,572,805.28 | 241.47% | Mainly due to increased proceeds from the sale of equity | | Net Profit Attributable to Parent Company | 120,627,031.11 | 82,492,756.02 | 46.23% | Lower fuel costs; increased VAT refunds from comprehensive resource utilization projects | Operating Revenue Composition for H1 2025 | Category | Current Period Amount (CNY) | % of Revenue | Prior Year Amount (CNY) | % of Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total** | **1,872,747,370.47** | **100%** | **1,906,005,899.00** | **100%** | **-1.74%** | | **By Industry** | | | | | | | Environmental Thermal Energy | 1,862,230,395.16 | 99.44% | 1,893,786,714.60 | 99.36% | -1.67% | | **By Product** | | | | | | | Electricity | 1,095,243,254.72 | 58.48% | 1,010,260,570.33 | 53.00% | 8.41% | | Heat | 735,401,422.86 | 39.27% | 847,282,575.62 | 44.45% | -13.20% | - The gross margin for the environmental thermal energy business was **22.83%**, an increase of **2.70 percentage points** year-on-year[65](index=65&type=chunk) - Revenue from electricity products increased by **8.41%** year-on-year, with a gross margin of **21.78%**, up by **7.00 percentage points**[65](index=65&type=chunk) - Revenue from heat products decreased by **13.20%** year-on-year, with a gross margin of **23.63%**, down by **2.05 percentage points**[65](index=65&type=chunk) [Non-Main Business Analysis](index=18&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) The company had no non-main business activities during the reporting period [Analysis of Assets and Liabilities](index=18&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) Total assets slightly decreased while net assets attributable to shareholders grew, with accounts receivable increasing due to pending subsidy payments Significant Changes in Asset Composition in H1 2025 | Item | End of Period Amount (CNY) | % of Total Assets | Prior Year-End Amount (CNY) | % of Total Assets | Change in % | Reason for Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 482,857,281.39 | 4.62% | 544,211,078.39 | 5.18% | -0.56% | - | | Accounts Receivable | 3,540,992,470.31 | 33.86% | 3,419,136,638.78 | 32.54% | 1.32% | Mainly due to an increase in unsettled subsidy receivables for electricity fees | | Long-term Equity Investments | 4,973,911.68 | 0.05% | 0.00 | 0.00% | 0.05% | Mainly due to the new equity investment in Beijing ZKXK Big Data Co, Ltd | | Fixed Assets | 4,915,866,397.44 | 47.01% | 5,196,092,681.13 | 49.46% | -2.45% | - | | Short-term Borrowings | 579,461,094.29 | 5.54% | 717,751,563.81 | 6.83% | -1.29% | - | | Long-term Borrowings | 3,507,347,631.26 | 33.54% | 3,675,874,044.26 | 34.99% | -1.45% | - | Restricted Assets as of the End of the Reporting Period | Item | Book Balance (ten thousand CNY) | Book Value (ten thousand CNY) | Restriction Type | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 3,071.22 | 3,071.22 | Deposits, frozen & overseas funds | Guarantee and overseas funds | | Accounts Receivable | 276,866.64 | 259,582.05 | Pledge/Mortgage | Financing | | Fixed Assets | 178,043.04 | 129,774.91 | Pledge/Mortgage | Financing | | Intangible Assets | 34,187.32 | 29,134.08 | Pledge/Mortgage | Financing | | Long-term Equity Investments | 6,000.00 | 6,000.00 | Pledge/Mortgage | Financing | | **Total** | **498,168.22** | **427,562.26** | - | - | [Investment Analysis](index=19&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company's investment amount for the period was CNY 5,025,587.00, a significant increase year-on-year, with no major equity or securities investments Investment Amount in H1 2025 | Indicator | Amount (CNY) | YoY Change | | :--- | :--- | :--- | | Investment in Reporting Period | 5,025,587.00 | 50,155.87% | | Investment in Prior Year Period | 10,000.00 | - | - The company had no securities investments or derivative investments during the reporting period[71](index=71&type=chunk)[72](index=72&type=chunk) - The company had no use of raised funds during the reporting period[73](index=73&type=chunk) [Major Asset and Equity Sales](index=20&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company sold its 100% stake in Yutai Evergreen Environmental Energy Co, Ltd for CNY 293 million, with no material adverse impact on operations Major Asset Sale in H1 2025 | Counterparty | Asset Sold | Sale Date | Transaction Price (ten thousand CNY) | Net Profit Contribution of Asset to Sale Date (ten thousand CNY) | Ratio of Asset Sale Profit to Total Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | | Yutai County Huaxing New Energy Co, Ltd | 100% equity in Yutai Evergreen Environmental Energy Co, Ltd | 2025-04-30 | 29,300 | 921.41 | -25.62% | - Upon completion of this transaction, the company no longer holds equity in the target company, which will be removed from the consolidated financial statements[74](index=74&type=chunk) - The asset sale price was determined through negotiation between the parties, referencing the appraised value of the target equity as of the valuation date (November 30, 2024)[74](index=74&type=chunk) [Analysis of Major Holding and Participating Companies](index=20&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) The company's major subsidiaries in centralized heating, waste-to-energy, and biomass cogeneration contributed significantly to its net profit Major Holding and Participating Companies in H1 2025 | Company Name | Company Type | Main Business | Registered Capital (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | | Guangdong Evergreen (Group) Mancheng Thermal Power Co, Ltd | Subsidiary | Industrial park centralized coal-fired heating | 65,000,000.00 | 61,462,325.98 | | Zhongshan Evergreen Environmental Thermal Energy Co, Ltd | Subsidiary | Waste-to-energy generation | 29,000,000.00 | 25,260,947.09 | | Juancheng Evergreen Biomass Energy Co, Ltd | Subsidiary | Biomass cogeneration | 26,000,000.00 | 22,329,570.49 | | Yanjin Evergreen Biomass Energy Co, Ltd | Subsidiary | Biomass cogeneration | 115,000,000.00 | 22,137,332.37 | | Xinye Evergreen Biomass Energy Co, Ltd | Subsidiary | Biomass cogeneration | 30,000,000.00 | 21,372,247.36 | - During the reporting period, Yutai Evergreen Environmental Energy Co, Ltd was removed from the consolidation scope due to its sale, with no significant impact on overall operations and performance[79](index=79&type=chunk) [Structured Entities Controlled by the Company](index=21&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) The company did not control any structured entities during the reporting period [Risks and Countermeasures](index=22&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces risks from fuel price volatility, subsidy expirations, and delayed payments, which it mitigates through optimized procurement and business model adjustments - **Risk of biomass fuel supply and price fluctuations**: The company mitigates this by planning fuel procurement, managing seasonal purchasing rhythms, and increasing the proportion of local yellow straw fuel[80](index=80&type=chunk) - **Risk of subsidy expiration for early biomass projects**: The company is transitioning these projects to a cogeneration model focused on heat supply and increasing non-subsidized income to ensure continued operation[80](index=80&type=chunk) - **Risk of delayed subsidy payments for biomass projects**: The national renewable energy development fund faces a payment gap, posing a risk of delayed or incomplete subsidy payments[81](index=81&type=chunk) - **Risk of fuel price fluctuations for centralized coal-fired heating projects**: The company has incorporated price adjustment mechanisms into its steam supply agreements to hedge against the impact of volatile coal prices[81](index=81&type=chunk) - **Risk of rising average labor costs**: The company is actively implementing technical transformations and gradually adopting information technology and automation in production to address this risk[81](index=81&type=chunk) [Development and Implementation of Market Value Management System and Valuation Enhancement Plan](index=22&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E5%B8%82%E5%80%BC%E7%AE%A1%E7%90%86%E5%88%B6%E5%BA%A6%E5%92%8C%E4%BC%B0%E5%80%BC%E6%8F%90%E5%8D%87%E8%AE%A1%E5%88%92%E7%9A%84%E5%88%B6%E5%AE%9A%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has not formulated a market value management system or disclosed a valuation enhancement plan during the reporting period [Implementation of the "Dual Improvement in Quality and Returns" Action Plan](index=22&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%22%E8%B4%A8%E9%87%8F%E5%9B%9E%E6%8A%A5%E5%8F%8C%E6%8F%90%E5%8D%87%22%E8%A1%8C%E5%8A%A8%E6%96%B9%E6%A1%88%E8%B4%AF%E5%BD%BB%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has not disclosed a "Dual Improvement in Quality and Returns" action plan during the reporting period Corporate Governance, Environment, and Society [Changes in Directors, Supervisors, and Senior Management](index=23&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) No changes occurred among the company's directors, supervisors, or senior management during the reporting period - There were no changes in the company's directors, supervisors, and senior management during the reporting period; for details, please refer to the 2024 annual report[84](index=84&type=chunk) [Profit Distribution and Capitalization of Capital Reserves for the Reporting Period](index=23&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company has approved a semi-annual profit distribution plan to pay a cash dividend of CNY 1.5 per 10 shares, totaling CNY 111,303,899.40 2025 Semi-Annual Profit Distribution Plan | Indicator | Value | | :--- | :--- | | Bonus Shares per 10 Shares | 0 | | Cash Dividend per 10 Shares (CNY, incl tax) | 1.5 | | Share Capital Base for Distribution (Shares) | 742,025,996 | | Total Cash Dividend (CNY, incl tax) | 111,303,899.40 | | Distributable Profit (CNY) | 1,002,857,637.33 | | Ratio of Cash Dividend to Total Profit Distribution | 100% | - This profit distribution plan is subject to approval at the company's general shareholders' meeting[85](index=85&type=chunk) [Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=23&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[86](index=86&type=chunk) [Environmental Information Disclosure](index=23&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) The company and its 20 major subsidiaries are subject to mandatory environmental information disclosure, with all facilities operating at 100% capacity - The company and its **20 major subsidiaries** are included in the list of enterprises required to disclose environmental information by law[87](index=87&type=chunk) Mid-2025 Flue Gas Treatment Facility Operation Rate | Project | Desulfurization Facility (%) | Dust Removal Facility (%) | Denitrification Facility (%) | | :--- | :--- | :--- | :--- | | Evergreen Environmental (Central Group I, II) | 100 | 100 | 100 | | Evergreen Thermal (Central Group III Expansion) | 100 | 100 | 100 | | Mancheng Thermal Power | 100 | 100 | 100 | | Maoming Thermal Power | 100 | 100 | 100 | | Lixian Thermal Power | 100 | 100 | 100 | | Yishui Environmental | 100 | 100 | 100 | | Mingshui Environmental | / | 100 | 100 | | Yutai Environmental | 100 | 100 | 100 | | Ning'an Environmental | 100 | 100 | 100 | | Juancheng Biomass | 100 | 100 | 100 | | Yongcheng Biomass | 100 | 100 | 100 | | Tieling Environmental | 100 | 100 | 100 | | Funing Biomass | 100 | 100 | 100 | | Tancheng Biomass | 100 | 100 | 100 | | Xinye Biomass | 100 | 100 | 100 | | Yanjin Biomass | 100 | 100 | 100 | | Suining Biomass | 100 | 100 | 100 | | Songyuan Biomass | 100 | 100 | 100 | | Binxian Biomass | 100 | 100 | 100 | | Huaxian Biomass | 100 | 100 | 100 | - The Binxian biomass project's nitrogen oxide emissions slightly exceeded half of the annual permissible limit, and the company plans technical upgrades to reduce emissions and ensure annual compliance[91](index=91&type=chunk) [Social Responsibility](index=27&type=section&id=%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company integrates social responsibility into its operations by developing clean energy projects and supporting local economic and environmental development - The company replaces fossil fuels with renewable energy through its biomass and energy-saving projects, enhancing rural electricity supply and clean energy use[93](index=93&type=chunk) - The company's biomass projects create numerous indirect employment opportunities through fuel procurement, absorbing local labor and aiding impoverished households[94](index=94&type=chunk) - Biomass cogeneration projects drive local industries such as fuel collection and transportation, providing additional income for farmers and assisting with agricultural equipment subsidies[95](index=95&type=chunk) - Projects address environmental issues like straw burning and water pollution by standardizing biomass fuel acquisition, with some projects collaborating with forestry departments to manage diseased wood[96](index=96&type=chunk) - Several projects successfully completed winter heating supply for local residents with zero complaints during the heating season[96](index=96&type=chunk) Important Matters [Commitments by the Company and Related Parties](index=28&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%B3%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) No commitments were fulfilled or overdue by the company's controlling shareholders, related parties, or the company itself during the reporting period - The company reports no fulfilled or overdue commitments by its actual controller, shareholders, related parties, acquirers, or the company itself during the reporting period[99](index=99&type=chunk) [Non-operating Fund Occupation by Controlling Shareholders and Other Related Parties](index=28&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) There was no non-operating fund occupation by controlling shareholders or other related parties during the reporting period - The company reports no non-operating fund occupation by its controlling shareholders and other related parties[100](index=100&type=chunk) [Irregular External Guarantees](index=28&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[101](index=101&type=chunk) [Appointment and Dismissal of Accounting Firm](index=28&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) The company's semi-annual financial report has not been audited - The company's semi-annual report has not been audited[102](index=102&type=chunk) [Explanation by the Board of Directors and Supervisory Committee on the "Non-standard Audit Report" for the Current Period](index=28&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9A%84%E8%AF%B4%E6%98%8E) This section is not applicable as there was no "non-standard audit report" for the current period [Explanation by the Board of Directors on the "Non-standard Audit Report" of the Previous Year](index=28&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) This section is not applicable as there was no "non-standard audit report" in the previous year [Bankruptcy and Reorganization Matters](index=28&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) The company did not undergo any bankruptcy or reorganization during the reporting period - The company did not undergo any bankruptcy or reorganization during the reporting period[103](index=103&type=chunk) [Litigation Matters](index=28&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) The company had no major litigation or arbitration, but several minor cases involving contract disputes are ongoing or were initiated during the period - The company had no major litigation or arbitration matters during the reporting period[104](index=104&type=chunk) Other Litigation Matters in H1 2025 | Litigation (Arbitration) Details | Amount Involved (ten thousand CNY) | Provision for Liability | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | | :--- | :--- | :--- | :--- | :--- | | Summary of other non-material litigation (1 case, mainly contract dispute) disclosed in the 2024 Annual Report and continuing into this period | 348.86 | No | Court has ruled (in favor of plaintiff Maoming Thermal Power) | - | | Summary of other non-material litigation (2 cases, mainly contract disputes, creditor objections) initiated during this period | 1,547.6 | No | - | - | [Penalties and Rectifications](index=29&type=section&id=%E4%B9%9D%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) The company was not subject to any penalties or rectifications during the reporting period - The company reports no penalties or rectifications during the reporting period[106](index=106&type=chunk) [Integrity of the Company, its Controlling Shareholders, and Actual Controllers](index=29&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) No issues concerning the integrity of the company, its controlling shareholders, or actual controllers were reported during the period [Major Related-Party Transactions](index=29&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company had no major related-party transactions related to daily operations, asset acquisitions, or debt during the reporting period - The company had no related-party transactions related to daily operations during the reporting period[107](index=107&type=chunk) - The company had no related-party transactions involving the acquisition or sale of assets or equity during the reporting period[108](index=108&type=chunk) - The company had no related-party credit or debt transactions during the reporting period[110](index=110&type=chunk) [Major Contracts and Their Performance](index=30&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company has multiple ongoing major contracts and provides significant guarantees for its subsidiaries, with total guarantees reaching 148.60% of net assets - The company had no custody, contracting, or leasing arrangements during the reporting period[114](index=114&type=chunk][115](index=115&type=chunk][116](index=116&type=chunk) Company Guarantees for Subsidiaries in H1 2025 (Partial) | Guaranteed Party | Guarantee Limit (ten thousand CNY) | Actual Guarantee Amount (ten thousand CNY) | Guarantee Type | Guarantee Period | | :--- | :--- | :--- | :--- | :--- | | Zhongshan Evergreen Environmental Thermal Energy Co, Ltd | 34,000 | 18,700 | Joint and several liability | 2018-10-10 to 2030-10-9 | | Yongcheng Evergreen Biomass Energy Co, Ltd | 27,000 | 15,034 | Joint and several liability | 2019-10-29 to 2033-10-28 | | Maoming Evergreen Thermal Power Co, Ltd | 40,000 | 36,000 | Joint and several liability | 2024-1-1 to 2033-12-31 | | Guangdong Evergreen (Group) Mancheng Thermal Power Co, Ltd | 40,000 | 21,246.81 | Joint and several liability | 2025-1-1 to 2025-12-31 | - The total approved guarantee limit for subsidiaries at the end of the period was **CNY 5.7655 billion**, with an actual outstanding balance of **CNY 2.7648 billion**[120](index=120&type=chunk) - The company's total guarantee amount represents **148.60%** of its net assets[121](index=121&type=chunk) - The company disclosed several major contracts, including biomass power and cogeneration projects, most of which are currently being executed[124](index=124&type=chunk)[125](index=125&type=chunk][127](index=127&type=chunk][128](index=128&type=chunk][130](index=130&type=chunk) [Other Major Matters](index=40&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) The company disclosed several significant events, including convertible bond conversions, a strategic cooperation agreement, and changes to registered capital - On January 3, 2025, the company announced the results of convertible bond conversions for Q4 2024 and the resulting share capital change[131](index=131&type=chunk) - On February 28, 2025, the company announced the signing of a strategic cooperation framework agreement with ZKXK (Beijing) Technology Co, Ltd[131](index=131&type=chunk) - On April 22, 2025, the company announced an increase in its registered capital and amendments to the Articles of Association[131](index=131&type=chunk) [Major Matters Concerning Subsidiaries](index=40&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) The company completed the equity transfer of Yutai Environmental and is advancing the sale of two other subsidiaries, having received initial payments - The company signed an agreement to transfer 100% equity of Yutai Environmental and has received a partial payment of **CNY 173 million**; the equity transfer is complete, and Yutai Environmental is no longer consolidated[132](index=132&type=chunk][133](index=133&type=chunk) - The company signed an agreement to transfer 100% equity of Evergreen Environmental and Evergreen Thermal, having received the first installment payment of **CNY 123.56 million**[133](index=133&type=chunk) - The transfer of Evergreen Environmental and Evergreen Thermal has been approved by the shareholders' meeting, and the transaction is currently being implemented[133](index=133&type=chunk) Share Capital Changes and Shareholder Information [Changes in Share Capital](index=42&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) The company's total share capital increased by 57,731 shares during the period due to the conversion of "Changji Convertible Bonds" Share Capital Changes in H1 2025 | Share Type | Pre-Change Quantity (Shares) | Pre-Change Ratio | Change (+/- Shares) | Post-Change Quantity (Shares) | Post-Change Ratio | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 271,736,100 | 36.62% | 0 | 271,736,100 | 36.62% | | II. Unrestricted Shares | 470,230,280 | 63.38% | 57,731 | 470,288,011 | 63.38% | | **III. Total Shares** | **741,966,380** | **100.00%** | **57,731** | **742,024,111** | **100.00%** | - The change in share capital was due to the conversion of **CNY 306,000.00** of "Changji Convertible Bonds" into **57,731** company shares during the reporting period[136](index=136&type=chunk) [Securities Issuance and Listing](index=43&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) The company had no securities issuance or listing activities during the reporting period [Number of Shareholders and Shareholdings](index=43&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) At the end of the period, the company had 24,793 common shareholders, with top shareholders He Qiqiang and Mai Zhenghui acting in concert - The total number of common shareholders at the end of the reporting period was **24,793**[139](index=139&type=chunk) Top 10 Shareholders or Shareholders with over 5% Holding in H1 2025 | Shareholder Name | Holding Ratio | Shares Held at Period-End | Shareholder Type | Restricted Shares Held | Unrestricted Shares Held | Pledged, Marked, or Frozen Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | He Qiqiang | 25.77% | 191,213,800 | Domestic Individual | 143,410,350 | 47,803,450 | N/A | | Mai Zhenghui | 23.06% | 171,101,000 | Domestic Individual | 128,325,750 | 42,775,250 | N/A | | Zhongshan Evergreen New Industry Co, Ltd | 11.97% | 88,800,000 | Domestic Non-State-Owned Corp | 0 | 88,800,000 | N/A | | Huang Wangping | 1.63% | 12,083,000 | Domestic Individual | 0 | 12,083,000 | Frozen: 12,083,000 shares | | Xie Feichi | 0.22% | 1,601,900 | Domestic Individual | 0 | 1,601,900 | Marked: 725,100 shares | - He Qiqiang and Mai Zhenghui are parties acting in concert; He Qiqiang and Guo Miaobo are husband and wife; New Industry Co is controlled by He Qiqiang and Mai Zhenghui; Huang Wangping is the mother of He Qiqiang's daughter's spouse[139](index=139&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=44&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - The shareholdings of the company's directors, supervisors, and senior management did not change during the reporting period; for details, please refer to the 2024 annual report[141](index=141&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=44&type=section&id=%E4%BA%94%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder did not change during the reporting period[142](index=142&type=chunk) - The company's actual controller did not change during the reporting period[142](index=142&type=chunk) [Information on Preferred Shares](index=45&type=section&id=%E5%85%AD%E3%80%81%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[143](index=143&type=chunk) Bond-related Information [Corporate Bonds](index=46&type=section&id=%E4%B8%80%E3%80%81%E4%BC%81%E4%B8%9A%E5%80%BA%E5%88%B8) The company had no corporate bonds during the reporting period - The company had no corporate bonds during the reporting period[145](index=145&type=chunk) [Company Bonds](index=46&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8) The company had no company bonds during the reporting period - The company had no company bonds during the reporting period[146](index=146&type=chunk) [Non-financial Enterprise Debt Financing Instruments](index=46&type=section&id=%E4%B8%89%E3%80%81%E9%9D%9E%E9%87%91%E8%9E%8D%E4%BC%81%E4%B8%9A%E5%80%BA%E5%8A%A1%E8%9E%8D%E8%B5%84%E5%B7%A5%E5%85%B7) The company had no non-financial enterprise debt financing instruments during the reporting period - The company had no non-financial enterprise debt financing instruments during the reporting period[147](index=147&type=chunk) [Convertible Corporate Bonds](index=46&type=section&id=%E5%9B%9B%E3%80%81%E5%8F%AF%E8%BD%AC%E6%8D%A2%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8) The company's "Changji Convertible Bonds" (code 128105) had a balance of CNY 605 million at period-end, with a stable credit rating of AA- - On April 9, 2020, the company publicly issued **8 million** convertible corporate bonds with a total value of **CNY 800 million**, named "Changji Convertible Bond" (code "128105")[148](index=148&type=chunk) - The "Changji Convertible Bond" has been convertible into company shares since October 15, 2020, with an initial conversion price of **CNY 8.31 per share**[148](index=148&type=chunk) Convertible Bondholder Information for H1 2025 | Convertible Bond Name | Number of Bondholders at Period-End | Guarantor for the Company's Bonds | | :--- | :--- | :--- | | Changji Convertible Bond | 4,816 | None | Convertible Bond Changes in H1 2025 | Convertible Bond Name | Pre-Change Amount (CNY) | Change (Conversion) (CNY) | Post-Change Amount (CNY) | | :--- | :--- | :--- | :--- | | Changji Convertible Bond | 605,294,500.00 | 306,000.00 | 604,988,500.00 | Cumulative Conversion Status in H1 2025 | Convertible Bond Name | Total Issuance Amount (CNY) | Cumulative Converted Amount (CNY) | Cumulative Converted Shares | Unconverted Amount (CNY) | Unconverted Ratio | | :--- | :--- | :--- | :--- | :--- | :--- | | Changji Convertible Bond | 800,000,000.00 | 942,100.00 | 140,967 | 604,988,500.00 | 75.62% | - The conversion price of the "Changji Convertible Bond" has been adjusted multiple times, with the latest price being **CNY 5.30 per share** as of the end of this reporting period[154](index=154&type=chunk][155](index=155&type=chunk) - China Chengxin International Credit Rating Co, Ltd maintained the company's issuer credit rating at **AA-** with a stable outlook and the "Changji Convertible Bond" credit rating at **AA-** for the 2025 annual tracking[156](index=156&type=chunk) [Losses within the Consolidated Scope Exceeding 10% of Net Assets at the End of the Previous Year](index=48&type=section&id=%E4%BA%94%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%90%88%E5%B9%B6%E6%8A%A5%E8%A1%A8%E8%8C%83%E5%9B%B4%E4%BA%8F%E6%8D%9F%E8%B6%85%E8%BF%87%E4%B8%8A%E5%B9%B4%E6%9C%AB%E5%87%80%E8%B5%84%E4%BA%A710%25) This situation did not occur during the reporting period [Key Accounting Data and Financial Indicators for the Past Two Years](index=48&type=section&id=%E5%85%AD%E3%80%81%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E5%85%AC%E5%8F%B8%E8%BF%91%E4%B8%A4%E5%B9%B4%E7%9A%84%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) Liquidity ratios improved and the asset-liability ratio decreased, while net profit excluding non-recurring items grew significantly by 150.33% Key Accounting Data and Financial Indicators for the Past Two Years | Item | End of Current Period (ten thousand CNY) | End of Prior Year (ten thousand CNY) | Change from Prior Year-End | | :--- | :--- | :--- | :--- | | Current Ratio | 1.41 | 1.33 | 6.02% | | Asset-Liability Ratio | 71.96% | 73.23% | -1.27% | | Quick Ratio | 1.33 | 1.24 | 7.26% | | **Item** | **Current Period (ten thousand CNY)** | **Prior Year Period (ten thousand CNY)** | **YoY Change** | | Net Profit Excluding Non-recurring Items | 14,621.86 | 5,841.02 | 150.33% | | EBITDA to Total Debt Ratio | 6.69% | 6.60% | 0.09% | | Interest Coverage Ratio | 2.30 | 1.85 | 24.32% | | Cash Interest Coverage Ratio | -1.15 | 1.25 | -192.00% | | EBITDA Interest Coverage Ratio | 4.04 | 3.28 | 23.17% | | Loan Repayment Ratio | 100.00% | 100.00% | 0.00% | | Interest Payment Ratio | 100.00% | 100.00% | 0.00% | Financial Report [Audit Report](index=49&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's semi-annual financial report has not been audited - The company's semi-annual financial report has not been audited[159](index=159&type=chunk) [Financial Statements](index=49&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the consolidated and parent company financial statements for the first half of 2025, detailing the company's financial position and performance - The consolidated balance sheet shows total assets of **CNY 10,456,704,649.47**, total liabilities of **CNY 7,524,525,739.20**, and total equity of **CNY 2,932,178,910.27** at the end of the period[163](index=163&type=chunk) - The consolidated income statement shows total operating revenue of **CNY 1,872,747,370.47**, net profit of **CNY 121,881,864.35**, and net profit attributable to parent company shareholders of **CNY 120,627,031.11**[170](index=170&type=chunk) - The consolidated cash flow statement shows net cash flow from operating activities of **-CNY 167,359,609.97**, from investing activities of **CNY 106,916,602.57**, and from financing activities of **CNY 489,304.23**[174](index=174&type=chunk) [Company Basic Information](index=65&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) Guangdong Evergreen (Group) Co, Ltd is an A-share listed company primarily engaged in waste treatment, biomass cogeneration, and industrial heating - The company has a total share capital of **742,024,111** shares with a par value of CNY 1 per share[193](index=193&type=chunk) - The company's main business activities include waste treatment and incineration for power generation, biomass cogeneration, centralized industrial heating, and waste heat power generation[194](index=194&type=chunk) - The financial report was approved for issuance by the Board of Directors on August 28, 2025[195](index=195&type=chunk) [Basis of Preparation of Financial Statements](index=65&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The financial statements are prepared on a going concern basis in accordance with the Enterprise Accounting Standards of China - These financial statements are prepared on a going concern basis, with recognition and measurement in accordance with the "Enterprise Accounting Standards - Basic Standard" and other specific accounting standards[197](index=197&type=chunk) - The company has assessed its going concern ability for the 12 months from the end of the reporting period and found it to be sound, with no significant doubts[198](index=198&type=chunk) [Significant Accounting Policies and Estimates](index=65&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the company's significant accounting policies, including revenue recognition, financial instruments, fixed assets, and government grants - The financial statements comply with the requirements of the Enterprise Accounting Standards, providing a true and complete view of the company's financial position, operating results, and cash flows[200](index=200&type=chunk) - The company classifies financial assets into three categories: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[234](index=234&type=chunk) - The company applies an expected credit loss model for impairment accounting on items such as notes receivable, accounts receivable, and other receivables[244](index=244&type=chunk) - The company's revenue recognition principle involves identifying performance obligations in contracts and determining whether they are satisfied over time or at a point in time[314](index=314&type=chunk) - The company uses the straight-line method for depreciation of fixed assets, with depreciation periods of **10-54 years** for buildings and **5-20 years** for machinery and equipment[293](index=293&type=chunk) [Taxes](index=91&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) The company is subject to various taxes and benefits from preferential policies, including VAT refunds and corporate income tax reductions for its environmental projects Main Taxes and Tax Rates for H1 2025 | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable value-added amount | 13%, 9%, 6% | | Urban Maintenance and Construction Tax | Payable VAT and consumption tax | 7%, 5%, 1% | | Corporate Income Tax | Taxable income | 25%, 16.5%, 20% | | Education Surcharge | Payable VAT and consumption tax | 3% | | Local Education Surcharge | Payable VAT and consumption tax | 2% | - Subsidiaries Evergreen Environmental Energy (Zhongshan) and Zhongshan Evergreen Environmental Thermal Energy enjoy a **100% VAT refund** on electricity generated from municipal solid waste[352](index=352&type=chunk) - The subsidiary Zhongshan Evergreen Environmental Thermal Energy's sewage treatment project benefits from a "three-year exemption, three-year half-rate" corporate income tax holiday[354](index=354&type=chunk) - Several biomass energy subsidiaries are eligible for a preferential policy where only **90%** of their income is included in the taxable income base for corporate income tax[355](index=355&type=chunk) [Notes to Consolidated Financial Statement Items](index=93&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes on key items in the consolidated financial statements, including assets, liabilities, and equity components - The year-end balance of cash and cash equivalents was **CNY 482,857,281.39**, which includes restricted funds such as security deposits and regulated foreign exchange[357](index=357&type=chunk) - The year-end book value of accounts receivable was **CNY 3,540,992,470.31**, mainly due to an increase in unsettled subsidy receivables for electricity fees[366](index=366&type=chunk) - The year-end book value of fixed assets was **CNY 4,915,866,397.44**, and construction in progress was **CNY 149,794,338.94**[408](index=408&type=chunk][413](index=413&type=chunk) - The year-end balance of short-term borrowings was **CNY 579,461,094.29**, primarily consisting of credit loans[436](index=436&type=chunk) - The year-end balance of bonds payable (convertible corporate bonds) was **CNY 624,337,848.44**[464](index=464&type=chunk) - The year-end balance of retained earnings was **CNY 1,002,857,637.33**[488](index=488&type=chunk) [Changes in the Scope of Consolidation](index=122&type=section&id=%E5%85%AB%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) The scope of consolidation decreased by one subsidiary due to the sale of Yutai Evergreen Environmental Energy Co, Ltd - During this period, one subsidiary, Yutai Evergreen Environmental Energy Co, Ltd, was sold[531](index=531&type=chunk) [Interests in Other Entities](index=122&type=section&id=%E4%B9%9D%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) The company's corporate group consists of 31 subsidiaries engaged in businesses such as waste-to-energy, biomass cogeneration, and industrial heating - A total of **31** companies were included in the scope of consolidation for this reporting period[196](index=196&type=chunk) - Major subsidiaries include Chuangert Thermal Technology (Zhongshan) Co, Ltd and Evergreen Environmental Energy (Zhongshan) Co, Ltd, with business activities spanning leasing services, waste-to-energy, and biomass cogeneration[532](index=532&type=chunk][533](index=533&type=chunk][534](index=534&type=chunk) [Government Grants](index=124&type=section&id=%E5%8D%81%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) The company recognized government grants totaling CNY 95,338,595.77 in the current period, primarily from VAT refunds for comprehensive resource utilization Government Grants Recognized in Current Profit and Loss for H1 2025 | Account | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | VAT refund for comprehensive resource utilization | 94,138,292.99 | 65,457,526.70 | | Fiscal support funds | 915,440.31 | 1,126,223.12 | | Fiscal rewards, etc | 284,862.47 | 641,911.03 | | **Total** | **95,338,595.77** | **67,225,660.85** | [Risks Related to Financial Instruments](index=124&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) The company manages credit, liquidity, and market risks through debtor monitoring, maintaining sufficient cash reserves, and managing interest rate and currency exposures - The company's main financial instruments are exposed to credit risk, liquidity risk, and market risk[537](index=537&type=chunk) - Credit risk is controlled by assessing debtor creditworthiness, setting credit limits, and continuously monitoring receivable balances[538](index=538&type=chunk][539](index=539&type=chunk) - Liquidity risk is managed by maintaining adequate cash, monitoring bank loan usage, and securing backup credit facilities[540](index=540&type=chunk) - As of June 30, 2025, a **10%** appreciation/depreciation of the RMB against foreign currencies would increase/decrease the company's net profit by approximately **CNY 0.228 million**[543](index=543&type=chunk) - As of June 30, 2025, a **50 basis point** increase or decrease in interest rates on floating-rate financial liabilities (approx **CNY 4.872 billion**) would decrease or increase pre-tax profit by approximately **CNY 24.36 million**[545](index=545&type=chunk) [Fair Value Disclosure](index=126&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) The company's only asset continuously measured at fair value is bank acceptance bills, with a period-end fair value of CNY 3,006,823.34 Year-end Fair Value of Assets and Liabilities Measured at Fair Value in H1 2025 | Item | Level 3 Fair Value Measurement (CNY) | Total (CNY) | | :--- | :--- | :--- | | (II) Receivables Financing | 3,006,823.34 | 3,006,823.34 | | **Total Assets Continuously Measured at Fair Value** | **3,006,823.34** | **3,006,823.34** | - The company's Level 3 fair value items are bank acceptance bills, whose fair value is determined by their face value due to their short remaining maturity[548](index=548&type=chunk) [Related Parties and Related-Party Transactions](index=126&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company's controlling shareholders are parties acting in concert with a 62.42% stake, and related-party transactions include services provided and guarantees - The company's controlling shareholders are parties acting in concert, including He Qiqiang and Mai Zhenghui, holding a combined **62.42%** stake[549](index=549&type=chunk) - The company's other related party is Zhongshan Chuangert Smart Home Technology Co, Ltd, which shares the same ultimate controlling shareholder[551](index=551&type=chunk) Related-Party Transactions for Goods and Services in H1 2025 | Related Party | Transaction Content | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | :--- | | Zhongshan Chuangert Smart Home Technology Co, Ltd | Provision of services | 9,553,280.58 | 10,816,698.96 | - The company provided guarantees for multiple subsidiaries, with amounts ranging from **CNY 1,372,100.00** to **CNY 360,000,000.00**, all under joint and several liability[555](index=555&type=chunk][556](index=556&type=chunk) - Key management personnel compensation for the current period amounted to **CNY 2,453,680.00**[558](index=558&type=chunk) Related-Party Payables in H1 2025 | Item Name | Related Party | Year-End Book Balance (CNY) | Beginning Book Balance (CNY) | | :--- | :--- | :--- | :--- | | Other Payables | Zhongshan Chuangert Smart Home Technology Co, Ltd | 1,592,213.43 | 1,802,783.16 | [Commitments and Contingencies](index=129&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E6%89%BF%E8%AF%BA%E5%8F%8A%E6%88%96%E6%9C%89%E4%BA%8B%E9%A1%B9) As of the balance sheet date, the company had no significant contingencies to disclose - As of the balance sheet date, the company has no contingencies that require disclosure[562](index=562&type=chunk) [Post-Balance Sheet Events](index=129&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E6%97%A5%E5%90%8E%E4%BA%8B%E9%A1%B9) The company approved the sale of two subsidiaries for CNY 494.24 million and has received the first installment payment of CNY 123.56 million - The company has approved the transfer of 100% equity in Evergreen Environmental Energy (Zhongshan) and Zhongshan Evergreen Environmental Thermal Energy for a transaction price of **CNY 494.2425 million**[564](index=564&type=chunk) - As of the disclosure date of this report, the company has received the first installment payment of **CNY 123.5607 million** from the counterparty[564](index=564&type=chunk) - This transaction does not involve related parties and does not constitute a major asset restructuring under the relevant regulations[564](index=564&type=chunk) [Notes to Major Items in the Parent Company's Financial Statements](index=129&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) The parent company's other receivables are primarily intercompany balances, and its long-term equity investments consist mainly of investments in subsidiaries - The parent company's other receivables at year-end totaled **CNY 3,740,848,384.66**, with intercompany balances accounting for **93.17%**[566](index=566&type=chunk][567](index=567&type=chunk][569](index=569&type=chunk) - The parent company's long-term equity investments had a book value of **CNY 3,431,752,617.99** at year-end, primarily consisting of investments in subsidiaries[578](index=578&type=chunk) - During the reporting period, the parent company reduced its investment in Yutai Evergreen Environmental Energy Co, Ltd by **CNY 270,000,000.00**[579](index=579&type=chunk) - The parent company's investment income for the period was **CNY 325,480,553.15**, mainly from cost-method long-term equity investments and gains on disposal of such investments[584](index=584&type=chunk) Supplementary Information [Detailed Schedule of Current Non-recurring Profit and Loss](index=136&type=section&id=1%E3%80%81%E5%BD%93%E6%9C%9F%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E6%98%8E%E7%BB%86%E8%A1%A8) Non-recurring profit and loss for the period totaled -CNY 25,591,577.35, mainly from non-current asset disposal losses and government grants Details of Non-recurring Profit and Loss for H1 2025 | Item | Amount (CNY) | Notes | | :--- | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | -33,098,924.10 | Primarily net loss on dispo

Core Viewpoint - Changqing Group (002616.SZ) reported a slight decrease in revenue for the first half of 2025, while net profit showed significant growth, indicating a potential shift in profitability despite lower sales [1] Financial Performance - The company's operating revenue for the first half of 2025 was 1.873 billion yuan, a year-on-year decrease of 1.74% [1] - Net profit attributable to shareholders was 121 million yuan, reflecting a year-on-year increase of 46.23% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 146 million yuan, marking a substantial year-on-year growth of 150.33% [1] - Basic earnings per share were reported at 0.1626 yuan [1]

Group 1 - The core viewpoint of the article is that Changqing Group (002616.SZ) reported a significant increase in net profit for the first half of 2025, despite a slight decline in revenue [1] - The company's operating revenue for the first half of 2025 was 1.873 billion yuan, a decrease of 1.74% year-on-year [1] - The net profit attributable to shareholders of the listed company was 121 million yuan, representing a year-on-year growth of 46.23% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 146 million yuan, showing a substantial increase of 150.33% year-on-year [1] - The basic earnings per share were reported at 0.1626 yuan [1]