清新环境(002573) - 2025 Q2 - 季度财报

Important Notes, Table of Contents, and Definitions Important Notes The Board of Directors, Supervisory Board, and senior management guarantee the accuracy and completeness of the semi-annual report - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content[4] - Company head Chen Zhu, chief accountant Wang Sichun, and head of accounting department Chi Haixiang declare that the financial report in this semi-annual report is true, accurate, and complete[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5] Table of Contents This section lists the report's structure, including company profile, management discussion, corporate governance, and financial statements - The report's table of contents is clear, covering key chapters such as company profile, management discussion and analysis, corporate governance, significant events, share changes, bond-related information, financial reports, and other submitted data[7] Definitions This section defines key terms used in the report, including regulatory bodies, the company, and the reporting period - The reporting period is defined as January 1, 2025, to June 30, 2025[11] - Sichuan Provincial Ecological and Environmental Protection Industry Group Co., Ltd. is defined as the controlling shareholder[11] Company Profile and Key Financial Indicators Company Profile This section provides the company's basic information, including its stock ticker, stock code, Chinese name, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Qingxin Environment | | Stock Code | 002573 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Beijing Sound Environment Technology Co., Ltd. | | Legal Representative | Chen Zhu | Contact Persons and Information This section lists the detailed contact information for the company's Board Secretary and Securities Affairs Representative for investor communication - Contact information for Board Secretary Qin Kun and Securities Affairs Representative Wang Juan has been disclosed, including address, phone, fax, and email[14] Other Information This section confirms that the company's registered address, office address, website, and email remained unchanged during the reporting period - The company's registered address, office address, website, and email remained unchanged during the reporting period[15] - Information disclosure and placement locations remained unchanged during the reporting period[16] Key Accounting Data and Financial Indicators Revenue increased by 4.23%, but net profit attributable to shareholders significantly decreased by 82.59%, while operating cash flow increased by 60.49% Key Accounting Data and Financial Indicators (Current Reporting Period vs. Prior Year) | Indicator | Current Period (yuan) | Prior Year (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,087,190,308.81 | 3,921,435,939.60 | 4.23% | | Net Profit Attributable to Shareholders of Listed Company | 12,438,108.12 | 71,456,311.19 | -82.59% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 1,143,711.51 | 58,512,367.79 | -98.05% | | Net Cash Flow from Operating Activities | 274,503,750.57 | 171,043,211.85 | 60.49% | | Basic Earnings Per Share | 0.0089 | 0.0509 | -82.51% | | Diluted Earnings Per Share | 0.0089 | 0.0509 | -82.51% | | Weighted Average Return on Net Assets | 0.21% | 1.11% | -0.90% | | Period-End Indicators | Current Period-End (yuan) | Prior Year-End (yuan) | Period-End vs. Prior Year-End Change | | Total Assets | 24,466,301,613.84 | 24,794,528,756.03 | -1.32% | | Net Assets Attributable to Shareholders of Listed Company | 5,933,831,982.55 | 5,917,504,105.73 | 0.28% | Differences in Accounting Data Under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between international/overseas and Chinese accounting standards - The company's financial reports for the reporting period show no differences in net profit and net assets between International Accounting Standards and Chinese Accounting Standards[19] - The company's financial reports for the reporting period show no differences in net profit and net assets between overseas accounting standards and Chinese Accounting Standards[20] Non-Recurring Gains and Losses and Amounts This section details non-recurring gains and losses, including asset disposal, government grants, and fair value changes, totaling 11.29 million yuan Non-Recurring Gains and Losses and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains/losses from disposal of non-current assets | -1,960,859.81 | | Government grants recognized in current profit/loss | 14,139,584.62 | | Gains/losses from changes in fair value and disposal of financial assets and liabilities | 9,797,362.07 | | Gains/losses from entrusted investments or asset management | 24,341.17 | | Reversal of impairment provisions for receivables subject to individual impairment testing | 564,664.46 | | Gains/losses from debt restructuring | -3,955.04 | | Other non-operating income and expenses apart from the above | -2,140,221.09 | | Less: Income tax impact | 74,316.27 | | Impact on minority interests (after tax) | 9,052,203.50 | | Total | 11,294,396.61 | Management Discussion and Analysis Main Businesses Engaged by the Company During the Reporting Period The company, a state-controlled entity, focuses on ecological and environmental protection, with revenue growth but declining net profit due to lower gross margins - The company's business covers municipal and industrial environmental protection, operating as a comprehensive environmental service group integrating technology R&D, equipment manufacturing, engineering design, construction, operation services, and capital operation[29] - During the reporting period, the company achieved operating revenue of 4.087 billion yuan, a year-on-year increase of 4.23%; net profit declined year-on-year, primarily due to a decrease in gross profit margin[30] - In its future strategic layout, the company will further focus on water and atmospheric sectors, gradually reduce the proportion of resource sector business, continuously optimize asset structure, and enhance industry competitiveness[30] - During the reporting period, net cash flow from operating activities was 274 million yuan, a year-on-year increase of 60.49%, mainly due to the company's continuous optimization of procurement payment terms and reduction of related costs and expenses[30] Industry Development Overview Policies like urban renewal, "dual carbon" goals, and "zero-waste cities" are driving the environmental industry towards green upgrades and resource-based transformation - Urban renewal initiatives designate environmental infrastructure as a key investment area, with central government allocating over 20 billion yuan in special funds to support underground pipeline renovation and wastewater treatment demonstration zone construction[25] - The "dual carbon" goal guides systemic green upgrades in industrial environmental protection, promoting low-carbon transformation of traditional industries through market-oriented reforms of new energy on-grid tariffs and zero-carbon industrial park construction policies[26] - Environmental protection equipment manufacturing is listed as a strategic emerging industry, with intelligent upgrades and product development driven by the three-year action plan for major environmental protection technical equipment and updates to the "National Catalogue of Major Environmental Protection Technical Equipment Encouraged for Development"[27] - "Zero-waste city" construction promotes the resource-oriented transformation of solid and hazardous waste treatment, while new pollutant control policies create new growth points for the ecological restoration industry[28] Business Development Overview The company is strengthening water and atmospheric businesses, reducing resource segment reliance, and achieving significant operational efficiency and cash flow improvements - The company's management team focuses on annual targets, adhering to the overall policy of "stabilizing existing business, strengthening reforms, expanding new business, clarifying strategy, and setting direction"[29] - The water business ranks among the top in Sichuan Province for water supply and drainage scale, maintaining stable investment and operation growth, with the Mianyang Quanzhou equity acquisition project completed and the Shifang water environment comprehensive improvement project included in the National Development and Reform Commission's concession project database during the reporting period[30] - The atmospheric business continues to drive cost reduction and efficiency improvement in operating projects, while achieving significant progress in collecting historical project payments, effectively resolving some long-term accounts receivable issues[31] - The company's municipal environmental protection business operates over 40 water supply and drainage projects, with an annual water treatment capacity of approximately 1.469 billion tons[32] - The company's industrial environmental protection business has cumulatively undertaken over 310 million kW of coal-fired power plant units, exceeding 1,100 sets, and operates 18 concession projects for desulfurization, denitrification, etc., with a total installed capacity of 15,220 MW[32] - The company's energy-saving business currently has 22 industrial waste heat power generation projects, with a total installed capacity exceeding 230 MW[32] - Resource utilization business focuses on projects such as Ya'an circular economy solid waste comprehensive disposal and Dazhou hazardous waste comprehensive disposal, gradually forming a complete business system combining storage, disposal, and resource utilization[33] - Ecological restoration business is carried out by subsidiary Tianshengyuan Environmental Protection, possessing experience in inspection, testing, project investigation, and evaluation, and is recognized as a "specialized, refined, unique, and new" small and medium-sized enterprise in Sichuan Province[34] Main Business Models The company primarily employs EPC, BOT, EMC, and PPP models to meet diverse demands in its energy-saving and environmental protection businesses - EPC Model: The company undertakes the entire process or several stages of engineering project design, procurement, construction, and trial operation on behalf of the owner, and is responsible for quality, safety, cost, and schedule[36] - BOT Model: The company is responsible for financing, constructing, and operating specific asset facilities, recovering investment and generating profits through continuous subsidies or product sales[36] - EMC Model: Primarily applied in energy-saving businesses, where all project costs are paid through reduced energy expenses[36] - PPP Model: Government and social capital establish a relationship of shared benefits, risk sharing, and long-term cooperation through concession, service procurement, equity cooperation, and other methods[37] Performance Driving Factors Performance is driven by policy support, technological innovation, and domestic and international market opportunities, with green policies and R&D as core drivers - Industrial Policy Support: In the first half of 2025, multiple green and low-carbon environmental policies were intensively introduced from central to local governments, designating environmental infrastructure as a key investment area and establishing a two-tier central and local inspection system, prompting environmental enterprises to focus on compliant operations[38] - Technology Innovation Driven: The company continuously increases R&D investment, completing the intelligent upgrade of its flue gas treatment system (version 2.0), developing underlying models for precise air supply aeration distribution technology and digital intelligent chemical control technology, and achieving substantial progress in R&D for low-temperature catalytic desulfurization and denitrification integrated projects and VOCs catalysts[40][41] - Two Major Market Opportunities: The company leverages domestic green and low-carbon industrial policy dividends to deeply cultivate the domestic market, while also using independent intellectual property as a breakthrough to actively integrate into the "Green Belt and Road" initiative, exporting green production capacity, standards, and system solutions to countries along the route[44] Market Position of Business The company aims to be a leading environmental service provider, holding a strong position in industrial flue gas treatment and expanding water services in key regions - The company is among the first domestic enterprises to participate in third-party flue gas environmental governance, with construction and operation experience for over 100 sets of desulfurization, denitrification, and dust removal devices for industrial flue gas treatment ranging from 30 MW to 1000 MW units[46] - The company has cumulatively undertaken over 310 million kW of coal-fired power plant units, exceeding 1,100 sets, with its number of concession units and installed capacity ranking among the top in the industry[46] - In the water sector, Guorun Water and Shenzhen Water Consulting serve as main entities, focusing on water supply and drainage, municipal facility operation and maintenance, and full-process consulting services, with the Southwest region and the Guangdong-Hong Kong-Macao Greater Bay Area as key expansion areas[46] - The company strengthens intelligent water management construction, aiming to build a comprehensive water big data service center in Sichuan Province, and actively responds to the national "dual carbon" goals by enhancing low-carbon technology reserves and promoting CCUS and other low-carbon technologies[46] Analysis of Core Competencies The company maintains long-term, high-quality development through five core advantages: technological innovation, brand marketing, construction and operation, management capabilities, and business philosophy - The company has established leading advantages in technological innovation, brand marketing, construction and operation, management capabilities, and business philosophy, forming unique core competencies[48] - The company optimizes its organizational structure, forming a strategic planning and innovation leadership system centered on the Strategic Planning and Investment Department, a main business management and expansion mechanism based on various business segments, and a platform for efficient integration and systematic supply of strategic resources such as finance, capital, and talent formed by strategic support departments[47][48] - As a state-controlled mixed-ownership listed company under Sichuan Development (Holdings) Co., Ltd., the company combines the standardized management of state-owned enterprises with the platform advantages of a listed company in its operations[60] Technological Innovation Advantage The company is a national high-tech enterprise with a postdoctoral research station, multiple provincial technology centers, and over 900 patents - The company is a national high-tech enterprise, awarded as a national enterprise technology center, possesses postdoctoral research workstation qualifications, has four provincial technology centers recognized in Beijing, Guangdong, Sichuan, and Jiangsu, and owns 5 certified laboratories and testing institutions and 1 academician workstation in Sichuan and Guangdong[49] - In 2025, the company was approved for 12 scientific and technological awards, including the high-temperature resistant metal filter bag dust collector being selected as "Major Environmental Protection Technical Equipment Encouraged by the State"[50] - In the first half of 2025, the company participated in 1 national standard, 2 industry standards, led the formulation of 1 local standard, led the revision of 1 local standard, 1 group standard, and published 1 book[50] - As of the reporting period, the Sound Environment system holds over 900 valid patents, including over 130 invention patents[51] - In the first half of 2025, the company successfully promoted the industrialization of 14 scientific and technological achievements, with core values including cost reduction and efficiency improvement, intelligent substitution, pollution reduction, and international export[52] Brand Marketing Advantage The company's brand is built on innovation and quality, earning awards and successfully issuing green tech bonds, enhancing its industry influence - The company won the 2024 Listed Company Technology Progress Award and continued to be listed among the "Top 500 Chinese Energy Enterprises"[56] - The company successfully issued the environmental industry's first green technology innovation bond, demonstrating its sustainable development capabilities[56] - The company was re-awarded the "2024 Water Industry Most Professional Operation Service Enterprise" award, and Nanchong Wenfeng Water Purification Plant became Sichuan Province's first "Three-Modernization Benchmark Water Plant"[56] - The company is currently the president unit of the All-China Federation of Industry and Commerce Environmental Chamber of Commerce, and a vice-president unit of the China Electricity Council's Climate Change and Energy Conservation & Environmental Protection Branch[57] Construction and Operation Advantage As a pioneer in environmental concessions, the company has completed over 700 projects and operates 18 industrial flue gas BOT projects, ensuring stable cash flow - The company has construction and operation experience for over 100 sets of desulfurization, denitrification, and dust removal devices for units ranging from 30 MW to 1000 MW, covering multiple high-energy-consuming industries such as power, steel, and cement[58] - The company has cumulatively undertaken over 700 engineering projects, accumulating extensive engineering construction experience[58] - As of the reporting period, the company's 18 industrial flue gas treatment BOT projects, 22 waste heat power generation projects, and over 40 water supply and drainage projects are all in stable operation[58] Management Capability Advantage The company enhances management efficiency through a postdoctoral workstation, strategic planning, talent development, corporate reforms, and digital empowerment - The company has established a postdoctoral workstation and a Strategic Planning and Investment Department (Technology Center), possessing experienced strategic planning talent, senior management talent, and R&D talent with excellent innovation capabilities[60] - The company maintains its management level advantage in industrial and municipal environmental comprehensive treatment fields by continuously improving the echelon construction of its cadre team[60] - The company reduces financial costs through various methods such as issuing green technology innovation bonds, optimizing capital structure, and improving capital utilization efficiency[60] Business Philosophy Advantage As a state-controlled mixed-ownership listed company, it combines state-owned enterprise governance with listed company advantages, supported by shareholder resources - As a state-controlled mixed-ownership listed company under Sichuan Development (Holdings) Co., Ltd., the company combines the standardized management of state-owned enterprises with the platform advantages of a listed company in its operations[60] - Supported by the credit, capital, and resource platform capabilities provided by shareholders, the company's market expansion capabilities, technological innovation capabilities, and operational management capabilities have been strengthened and extended, leading the company into a new stage of high-quality development[60] Analysis of Main Business Operating revenue increased by 4.23%, but gross profit margin declined by 3.82% due to a higher increase in operating costs Year-on-Year Changes in Key Financial Data | Indicator | Current Period (yuan) | Prior Year (yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 4,087,190,308.81 | 3,921,435,939.60 | 4.23% | - | | Operating Cost | 3,458,649,835.91 | 3,168,361,976.23 | 9.16% | - | | Income Tax Expense | 27,330,981.97 | 60,593,757.58 | -54.89% | Primarily due to decreased total profit and increased tax incentives | | Net Cash Flow from Operating Activities | 274,503,750.57 | 171,043,211.85 | 60.49% | Primarily due to the company's continuous optimization of procurement payment terms and cost reduction | | Net Cash Flow from Investing Activities | -73,526,751.54 | -441,094,223.82 | 83.33% | Primarily due to decreased fixed asset investment and equity investment | | Net Cash Flow from Financing Activities | -376,911,902.21 | 45,061,615.04 | -936.44% | Primarily due to increased cash payments for debt repayment | Operating Revenue Composition (by Product) | Product | Current Period Amount (yuan) | Proportion of Operating Revenue | Prior Year Amount (yuan) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Atmospheric | 967,452,005.48 | 23.67% | 808,002,165.57 | 20.60% | 19.73% | | Water | 1,203,774,909.25 | 29.45% | 1,193,740,565.60 | 30.44% | 0.84% | | Ecological Restoration | 29,398,078.14 | 0.72% | 40,322,806.48 | 1.03% | -27.09% | | Waste Heat Utilization | 238,118,967.00 | 5.83% | 266,901,198.16 | 6.81% | -10.78% | | Resource Utilization | 1,648,446,348.94 | 40.33% | 1,612,469,203.79 | 41.12% | 2.23% | Changes in Gross Profit Margin of Main Business | Business Type | Current Period Gross Profit Margin | YoY Change in Gross Profit Margin | | :--- | :--- | :--- | | Ecological Environmental Protection Industry | 15.38% | -3.82% | | Atmospheric | 12.89% | -5.26% | | Water | 30.59% | -2.38% | | Resource Utilization | 6.02% | -4.38% | Analysis of Non-Main Business The company reported no non-main businesses during the reporting period - The company had no non-main businesses during the reporting period[65] Analysis of Assets and Liabilities Total assets slightly decreased by 1.32%, while net assets attributable to shareholders slightly increased by 0.28% Significant Changes in Asset Composition | Item | Current Period-End Amount (yuan) | Proportion of Total Assets | Prior Year-End Amount (yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 764,384,540.38 | 3.12% | 918,857,242.33 | 3.71% | -0.59% | | Accounts Receivable | 3,956,874,535.88 | 16.17% | 3,696,124,035.56 | 14.91% | 1.26% | | Contract Assets | 1,867,428,588.04 | 7.63% | 1,552,698,016.31 | 6.26% | 1.37% | | Inventories | 1,498,677,600.23 | 6.13% | 1,743,497,325.50 | 7.03% | -0.90% | | Long-term Borrowings | 4,547,243,556.17 | 18.59% | 5,288,832,578.06 | 21.33% | -2.74% | - Restricted cash and cash equivalents at period-end amounted to 88.67 million yuan, primarily for letter of guarantee deposits, security deposits, and frozen funds[359] - As of the end of the reporting period, the total book value of assets with restricted ownership or use rights was 8.986 billion yuan, primarily due to pledges, mortgages, and finance leases for borrowings[70][71][72][73][75][76][469][470][471][472][473][475] Significant Changes in Asset Composition Cash, inventory, fixed assets, and long-term borrowings decreased as a percentage of total assets, while accounts receivable and contract assets increased Major Overseas Assets The company reported no major overseas assets during the reporting period - The company had no major overseas assets during the reporting period[67] Assets and Liabilities Measured at Fair Value Financial assets measured at fair value totaled 22.75 million yuan, primarily trading financial assets and other equity instrument investments Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (yuan) | Fair Value Change in Current Period (yuan) | Amount Purchased in Current Period (yuan) | Amount Sold in Current Period (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Subtotal of Financial Assets | 25,981,599.31 | 4,601,085.43 | 14,602,202.36 | 18,641,785.60 | 22,745,012.17 | | Trading Financial Assets | 6,021,420.42 | 4,601,085.43 | 14,602,202.36 | 18,641,785.60 | 4,048,898.17 | | Derivative Financial Assets | 1,024,064.89 | - | - | - | 0.00 | | Other Equity Instrument Investments | 18,936,114.00 | - | - | - | 18,696,114.00 | | Financial Liabilities | 2,602,759.20 | 1,034,639.89 | 0.00 | -2,602,759.20 | 0.00 | Asset Rights Restricted as of the End of the Reporting Period Total restricted assets amounted to 8.99 billion yuan, mainly fixed assets, intangible assets, and long-term equity investments, restricted by pledges and mortgages Asset Rights Restricted as of the End of the Reporting Period | Item | Period-End Book Balance (yuan) | Period-End Book Value (yuan) | Type of Restriction | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 88,669,730.97 | 88,669,730.97 | Letter of guarantee deposits, in transit, security deposits, frozen funds | | Fixed Assets | 4,000,499,664.89 | 1,823,893,332.15 | Mortgage, pledge, finance lease, sequential seizure, litigation | | Intangible Assets | 1,961,792,717.52 | 1,573,001,648.75 | Mortgage, pledge for borrowings | | Accounts Receivable | 1,220,648,198.78 | 1,169,680,595.45 | Pledge for borrowings | | Long-term Equity Investments | 3,925,489,661.30 | 3,915,007,985.11 | Pledge for borrowings, green bond pledge | | Total | 11,614,907,529.73 | 8,986,264,048.95 | - | Analysis of Investment Status The company reported no significant equity or non-equity investments, securities investments, derivative investments, or use of raised funds - The company had no securities investments during the reporting period[79] - The company had no derivative investments during the reporting period[80] - The company had no use of raised funds during the reporting period[81] Significant Asset and Equity Sales The company did not sell any significant assets or equity during the reporting period - The company did not sell any significant assets during the reporting period[82] - The company did not sell any significant equity during the reporting period[83] Analysis of Major Holding and Participating Companies This section presents financial data for key subsidiaries and associates, highlighting profitable entities and changes in the company's investment portfolio Major Holding and Participating Company Information | Company Name | Company Type | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Sichuan Development Guorun Water Investment Co., Ltd. | Subsidiary | 9,263,598,619.01 | 3,066,279,118.00 | 757,662,092.97 | 76,852,495.82 | | Shenzhen Water Consulting Co., Ltd. | Subsidiary | 1,364,869,396.18 | 753,956,212.85 | 442,940,000.00 | 33,270,027.23 | | Beijing Aluminum Energy Sound Environment Technology Co., Ltd. | Associate | 1,520,546,820.69 | 1,202,250,908.18 | 242,331,624.46 | 24,055,830.72 | Acquisition and Disposal of Subsidiaries During the Reporting Period | Company Name | Acquisition and Disposal Method | Impact on Overall Production, Operation, and Performance | | :--- | :--- | :--- | | Mianyang Quanzhou Water Supply Co., Ltd. | Business combination not under common control | No significant impact | | Zhejiang Qingxin Tiandi Environmental Protection Technology Co., Ltd. | Publicly listed transfer | No significant impact | | Beijing Xinyuan Tianjing Environmental Protection Technology Co., Ltd. | Publicly listed transfer | No significant impact | Information on Structured Entities Controlled by the Company The company reported no structured entities under its control during the reporting period - The company had no structured entities under its control during the reporting period[86] Risks Faced by the Company and Countermeasures The company faces risks from intensified competition, post-acquisition integration, and stricter environmental regulations, addressed by strengthening capabilities and optimizing operations - The company faces industry competition risk, with large central state-owned enterprises, state-owned enterprises, and private enterprises entering the environmental protection sector, leading to intensified competition[86] - The company faces management integration risk; with business expansion and M&A, differences in corporate culture, institutional systems, and operational management may arise[87] - The company faces safety and environmental protection risks; as national ecological civilization construction advances, regulatory standards and enforcement become stricter, imposing higher requirements on the company's production and operations[88] - The company's countermeasures include strengthening capability building, optimizing business structure, enhancing innovation capabilities, optimizing corporate governance structure, improving management systems, empowering projects, strengthening business communication and collaboration, enhancing pollutant treatment facility management, and raising employee awareness of compliant operations[86][87][88] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not formulated a market value management system or disclosed a valuation enhancement plan - The company has not formulated a market value management system[89] - The company has not disclosed a valuation enhancement plan[89] Implementation of "Quality and Return Dual Enhancement" Action Plan The company has not disclosed an announcement regarding the "Quality and Return Dual Enhancement" action plan - The company has not disclosed an announcement regarding the "Quality and Return Dual Enhancement" action plan[89] Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management During the reporting period, there were changes in senior management, including new appointments and resignations Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Ma Tingwen | Vice President | Appointment | January 26, 2025 | Work transfer | | An Dejun | Vice President | Appointment/Removal | April 23, 2025 | Work transfer | | Jia Shuangyan | Vice President | Dismissal | May 23, 2025 | Personal reasons | Profit Distribution and Capital Reserve Conversion to Share Capital in Current Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[92] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company detailed adjustments, grants, repurchases, and lifting of restrictions for its 2022 restricted stock incentive plan and extended its 2017 employee stock ownership plan - The number of initial grantees for the 2022 restricted stock incentive plan was adjusted from 240 to 197 individuals, and the number of initially granted equity shares was adjusted from 39.99 million to 33.68 million shares, with the reserved portion remaining unchanged[95][98] - The initial grant price for the 2022 restricted stock incentive plan was adjusted to 3.35 yuan/share, and the reserved grant price was 2.82 yuan/share[100][102] - As of August 25, 2025, the company has completed the repurchase and cancellation procedures for 8.1975 million restricted shares granted but not yet unrestricted for 171 individuals, and 924,000 restricted shares granted but not yet unrestricted for 16 individuals[116][117] - For the 2022 restricted stock incentive plan, the first unrestricted period for the initial grant allows 10,538,000 restricted shares to be unrestricted, and the first unrestricted period for the reserved grant corresponds to 1.008 million restricted shares, all meeting the unrestricted requirements[110][113] - The company's 2017 employee stock ownership plan's duration has been extended until August 28, 2026, with a period-end total holding of 14,332,790 shares, accounting for 1.01% of the listed company's total share capital[118][119] Environmental Information Disclosure The company and 24 subsidiaries are listed as legally required environmental information disclosure enterprises, with public access to their reports - Whether the listed company and its major subsidiaries are included in the list of enterprises legally required to disclose environmental information: Yes[120] - The number of enterprises included in the list of legally required environmental information disclosure enterprises is 24[121] Social Responsibility The company's subsidiary, Guorun Water, donated 100,000 yuan to Zizhong County for local community development, fulfilling its social responsibility - Sound Environment's subsidiary, Guorun Water, donated 100,000 yuan in cash to the Zizhong County Finance Bureau for the production and living needs of local residents, aiming to accelerate rural cultural revitalization[123] Significant Events Commitments Fulfilled and Overdue Unfulfilled by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period The company reported no fulfilled or overdue unfulfilled commitments by its controlling shareholder, related parties, or the company itself - The company reported no commitments by its controlling shareholder, shareholders, related parties, acquirers, or the company itself that were fulfilled during or overdue and unfulfilled as of the end of the reporting period[125] Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties from the Listed Company The company reported no non-operating funds occupied by its controlling shareholder or other related parties - The company reported no non-operating funds occupied by its controlling shareholder or other related parties from the listed company during the reporting period[126] Illegal External Guarantees The company reported no illegal external guarantees during the reporting period - The company reported no illegal external guarantees during the reporting period[127] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[128] Board of Directors' and Supervisory Board's Explanation on "Non-Standard Audit Report" for the Current Period The company reported no non-standard audit report for the current period - The company had no non-standard audit report during the reporting period[129] Board of Directors' Explanation on "Non-Standard Audit Report" for the Prior Year The company reported no non-standard audit report for the prior year - The company had no non-standard audit report during the reporting period[129] Bankruptcy and Reorganization Matters The company reported no bankruptcy or reorganization matters during the reporting period - The company had no bankruptcy or reorganization matters during the reporting period[129] Litigation Matters The company disclosed significant litigation cases totaling 604.9962 million yuan, with 73 cases concluded and 47 ongoing Major Litigation and Arbitration Matters | Basic Information of Litigation (Arbitration) | Amount Involved (ten thousand yuan) | Litigation (Arbitration) Progress | | :--- | :--- | :--- | | Cases disclosed that cumulatively meet the disclosure standard for major litigation and arbitration | 60,499.62 | 73 cases concluded, 47 cases under trial | | Summary of non-major litigation and arbitration matters (plaintiff, applicant) | 7,331.93 | Unconcluded as of the end of the reporting period | | Summary of non-major litigation and arbitration matters (defendant, respondent) | 2,037.94 | Unconcluded as of the end of the reporting period | Penalties and Rectification The company reported no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[132] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company reported no integrity issues concerning itself, its controlling shareholder, or its actual controller - The company reported no integrity issues concerning itself, its controlling shareholder, or its actual controller during the reporting period[133] Significant Related Party Transactions The company reported no significant related party transactions, including those related to daily operations, asset/equity sales, joint investments, or debt - The company had no related party transactions related to daily operations during the reporting period[133] - The company had no related party transactions involving asset or equity acquisitions/disposals during the reporting period[134] - The company had no related party creditor-debtor transactions during the reporting period[136] Major Contracts and Their Performance The company reported no major entrusted management, contracting, or wealth management contracts, but disclosed several finance lease and guarantee arrangements - The company had no entrusted management situations during the reporting period[140] - The company had no contracting situations during the reporting period[141] - The company and its subsidiaries conducted multiple finance lease transactions, using fixed assets, waste heat power generation assets, etc., as leased items, with a total financing scale not exceeding 3 billion yuan[142][143][144][145][146][147] - The company had no lease projects during the reporting period where the gains or losses generated for the company exceeded 10% of the company's total profit for the reporting period[148] - The company's total guarantees (for subsidiaries) amounted to 1.0508151 billion yuan, accounting for 17.71% of the company's net assets[151][153] - The company had no entrusted wealth management during the reporting period[156] - The company had no other major contracts during the reporting period[157] Explanation of Other Significant Matters The company's 2022 stock issuance approval expired without major impact, and it successfully issued 300 million yuan in green tech innovation bonds - The registration approval for the company's 2022 non-public issuance of shares to specific targets has expired and will not have a significant impact on the company's normal production and operation activities[164] - The company's first tranche of medium-term notes (green technology innovation bonds) for 2025 was issued on June 12, 2025, with an issuance amount of 300 million yuan, a term of 3 years, and an issuance rate of 2.3%[165] Significant Matters of Company Subsidiaries Subsidiary Qingxin Environmental invested in Xinjiang Jinpai Environmental, which failed to meet performance targets, leading to a lawsuit for compensation - The company's subsidiary, Beijing Qingxin Environmental Protection Technology Co., Ltd., invested 156 million yuan of its own funds to increase capital in Xinjiang Jinpai Environmental Protection Technology Co., Ltd., acquiring a 51% equity stake in Jinpai Environmental[166] - From September 2021 to 2023, Jinpai Environmental cumulatively achieved a net profit of 155.0306 million yuan, failing to meet the cumulative performance commitment of 180 million yuan, resulting in a performance commitment difference of 24.9694 million yuan[170] - Qingxin Environmental has filed a lawsuit with the Beijing Haidian District People's Court, requesting 10 shareholders to pay the principal and corresponding interest for performance compensation, and asserting pledge rights over the equity held by each shareholder in Jinpai Environmental[174][175] - As of the disclosure date of this report, the company has not yet received the performance compensation from Jinpai Environmental's original shareholders[176] Share Changes and Shareholder Information Share Change Information Restricted shares increased by 434,700 due to recalculation, and 1,008,000 restricted shares from the 2022 incentive plan became unrestricted Share Change Information | Share Type | Quantity Before Change (shares) | Increase/Decrease in This Change (shares) | Quantity After Change (shares) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 12,214,400 | -573,300 | 11,641,100 | | II. Unrestricted Shares | 1,412,174,179 | 573,300 | 1,412,747,479 | | III. Total Shares | 1,424,388,579 | 0 | 1,424,388,579 | - At the beginning of the reporting period, restricted shares increased by 434,700 shares due to China Securities Depository and Clearing Corporation Limited recalculating executive lock-up shares[179] - During the reporting period, the company completed the listing and circulation procedures for shares involved in the first unrestricted period of the reserved grant portion of the 2022 restricted stock incentive plan, with 14 eligible grantees able to unrestrict a total of 1,008,000 restricted shares[180][182] Securities Issuance and Listing The company reported no securities issuance or listing during the reporting period - The company had no securities issuance or listing during the reporting period[186] Shareholder Numbers and Shareholding Information As of the reporting period end, the company had 46,348 common shareholders, with the controlling shareholder holding 41.85% of shares, of which 298.06 million shares are pledged - The total number of common shareholders at the end of the reporting period was 46,348[187] Shareholding Information of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Shares Held at Period-End (shares) | Pledge, Mark, or Freeze Status (shares) | | :--- | :--- | :--- | :--- | :--- | | Sichuan Provincial Ecological and Environmental Protection Industry Group Co., Ltd. | State-owned legal person | 41.85% | 596,118,979 | 298,059,489 (Pledged) | | Beijing Century Dihe Holding Co., Ltd. | Domestic non-state-owned legal person | 10.14% | 144,401,570 | 0 (Not applicable) | | Zhongtai Securities Asset Management - Zhongtai Asset Management No. 7726 Single Asset Management Plan - Zhongtai Asset Management No. 5601 Single Asset Management Plan | Other | 5.04% | 71,800,000 | 0 (Not applicable) | - The controlling shareholder, Sichuan Provincial Ecological and Environmental Protection Industry Group Co., Ltd., pledged 298.059489 million shares, accounting for 50.00% of its total shares held in the company and 20.93% of the company's total shares[187][707] Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period - The shareholdings of the company's directors, supervisors, and senior management did not change during the reporting period[190] Changes in Controlling Shareholder or Actual Controller 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[191] - The company's actual controller did not change during the reporting period[191] Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[192] Bond-Related Information Corporate Bonds The company had no corporate bonds during the reporting period - The company had no corporate bonds during the reporting period[194] Company Bonds The company had no company bonds during the reporting period - The company had no company bonds during the reporting period[195] Non-Financial Enterprise Debt Financing Instruments The company issued 300 million yuan of 3-year green technology innovation medium-term notes at 2.3% interest on June 12, 2025 Basic Information on Non-Financial Enterprise Debt Financing Instruments | Bond Name | Bond Abbreviation | Bond Code | Issue Date | Interest Commencement Date | Maturity Date | Bond Balance (ten thousand yuan) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Sound Environment Technology Co., Ltd. 2025 First Tranche Green Technology Innovation Bond | 25 Qingxin MTN001 (Tech Innovation Bond) | 102582449 | June 12, 2025 | June 13, 2025 | June 13, 2028 | 30,000 | 2.3% | - The company has no overdue outstanding bonds[197] - The company's credit rating results remained unchanged during the reporting period[198] Convertible Company Bonds The company had no convertible company bonds during the reporting period - The company had no convertible company bonds during the reporting period[199] Consolidated Statement Scope Loss Exceeding 10% of Net Assets at Prior Year-End During the Reporting Period The company reported no consolidated statement scope loss exceeding 10% of net assets at the prior year-end - The company reported no consolidated statement scope loss exceeding 10% of net assets at the prior year-end during the reporting period[200] Key Accounting Data and Financial Indicators for the Company's Last Two Years as of the End of the Reporting Period Liquidity and debt ratios slightly changed, while net profit after non-recurring items significantly decreased, and interest coverage ratios varied Key Accounting Data and Financial Indicators for the Company's Last Two Years as of the End of the Reporting Period | Item | Current Period-End | Prior Year-End | Current Period-End vs. Prior Year-End Change | | :--- | :--- | :--- | :--- | | Current Ratio | 0.87 | 0.88 | -1.14% | | Asset-Liability Ratio | 69.74% | 69.86% | -0.12% | | Quick Ratio | 0.70 | 0.69 | 1.45% | | Current Reporting Period | Current Period | Prior Year | Current Period vs. Prior Year Change | | Net Profit After Deducting Non-Recurring Gains and Losses | 1.1437 million yuan | 58.5124 million yuan | -98.05% | | EBITDA to Total Debt Ratio | 4.99% | 5.12% | -0.13% | | Interest Coverage Ratio | 1.23 | 1.80 | -31.67% | | Cash Interest Coverage Ratio | 2.81 | 2.37 | 18.57% | | EBITDA Interest Coverage Ratio | 4.09 | 4.29 | -4.66% | | Loan Repayment Rate | 100.00% | 100.00% | 0.00% | | Interest Payment Rate | 100.00% | 100.00% | 0.00% | Financial Report Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[203] Financial Statements This section presents the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity - Provides consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owner's equity, and parent company statement of changes in owner's equity[204][208][212][216][220][222][224][233] Company Basic Information The company, formerly Beijing Guodian Qingxin Environmental Protection Technology Co., Ltd., is state-controlled, operating in environmental protection, and includes over 50 subsidiaries - The company's controlling shareholder is Sichuan Provincial Ecological and Environmental Protection Industry Group Co., Ltd., and the ultimate controlling party is the Sichuan Provincial State-owned Assets Supervision and Administration Commission[240] - The company belongs to the environmental protection industry, primarily engaged in the construction and operation of atmospheric treatment facilities, urban and rural water supply, municipal water facility operation, low-carbon energy-saving services, resource recycling, and ecological restoration businesses[240] - The group's consolidated financial statement scope for this year includes over 50 subsidiaries, covering second, third, and fourth-tier companies[240][241][242] Basis of Financial Statement Preparation The financial statements are prepared based on Chinese Accounting Standards and relevant disclosure rules, under the going concern assumption - The group's financial statements are prepared in accordance with the "Enterprise Accounting Standards" and related regulations issued by the Ministry of Finance, as well as the disclosure requirements of the China Securities Regulatory Commission's "Reporting Rules for Information Disclosure by Companies Issuing Securities to the Public No. 15—General Provisions for Financial Reports" (Revised 2023)[243] - These financial statements are prepared on a going concern basis[244] Significant Accounting Policies and Estimates This section details the company's accounting policies for business combinations, financial instruments, revenue recognition, and other key areas, noting no major impact from new accounting standards - The group's accounting period is from January 1 to December 31 of the Gregorian calendar, with 12 months constituting one operating cycle[248][249] - Upon initial recognition, the group's financial assets are classified based on the business model for managing financial assets and the contractual cash flow characteristics of the financial assets, into financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive income, and financial assets measured at fair value through profit or loss[263] - The group recognizes revenue when it satisfies a performance obligation in a contract, which is when the customer obtains control of the related goods or services[319] - "Interpretation No. 17 of Enterprise Accounting Standards" and "Interpretation No. 18 of Enterprise Accounting Standards" came into effect from 2024, with no significant impact on the company's and the group's financial statements[341] Taxes This section outlines the company's main tax types and rates, including VAT, consumption tax, and corporate income tax, and details various tax incentives Major Tax Types and Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable income | 1%、3%、5%、6%、9%、13% | | Urban Maintenance and Construction Tax | Turnover tax | 1%、5%、7% | | Corporate Income Tax | Taxable income | 15%、20%、25%、42.43% | - The company's resource comprehensive utilization business enjoys VAT immediate refund or 36-month tax exemption policies[345] - The company's rural drinking water safety project operation and management units are exempt from VAT on tap water sales revenue obtained from providing domestic water to rural residents[345] - The company and some of its subsidiaries have obtained high-tech enterprise certificates and pay corporate income tax at a rate of 15%[350] - The company's public wastewater treatment, water supply and drainage, and industrial flue gas desulfurization businesses, if eligible, enjoy a "three-year exemption, three-year half reduction" policy[350] - The company's subsidiaries in the western regions engaged in encouraged industries are subject to corporate income tax at a reduced rate of 15%[351] Notes to Consolidated Financial Statement Items This section provides detailed data, period-end balances, beginning balances, and changes for consolidated financial statement items, including cash, receivables, and operating figures - Restricted cash and cash equivalents at period-end amounted to 88.67 million yuan, primarily for letter of guarantee deposits, security deposits, and frozen funds[359] - At the end of the reporting period, the book balance of accounts receivable was 4.797 billion yuan, with an allowance for doubtful accounts of 839.82 million yuan[371] - At the end of the reporting period, the book value of inventories was 1.499 billion yuan, and the total provision for inventory impairment and contract performance cost impairment was 65.32 million yuan[409][412] - At the end of the reporting period, the book value of fixed assets was 5.178 billion yuan[434] - At the end of the reporting period, the book value of intangible assets was 5.646 billion yuan[447] - At the end of the reporting period, the original book value of goodwill was 679 million yuan[450] - At the end of the reporting period, the balance of short-term borrowings was 4.079 billion yuan, and the balance of long-term borrowings was 4.547 billion yuan[477][510] - During the reporting period, the company's operating revenue was 4.087 billion yuan, and operating cost was 3.459 billion yuan[536] - During the reporting period, net profit attributable to owners of the parent company was 12.44 million yuan[215] R&D Expenses Total R&D investment was 80.49 million yuan, with 70.71 million yuan expensed and 9.78 million yuan capitalized, focusing on denitrification and integrated desulfurization technologies R&D Expense Information | Item | Amount Incurred in Current Period (yuan) | Amount Incurred in Prior Period (yuan) | | :--- | :--- | :--- | | Employee Compensation | 36,292,317.24 | 45,766,649.91 | | Depreciation and Amortization | 25,675,667.72 | 26,843,515.59 | | Directly Consumed Materials, Fuels, and Power | 16,128,577.61 | 3,095,156.58 | | Technical Service Fees | 95,199.00 | 674,187.73 | | Travel Expenses | 384,241.01 | 929,583.90 | | Other | 1,916,898.43 | 2,691,399.18 | | Total | 80,492,901.01 | 80,000,492.89 | | Of which: Expensed R&D Expenses | 70,712,927.07 | 65,434,241.51 | | Capitalized R&D Expenses | 9,779,973.94 | 14,566,251.38 | - R&D projects eligible for capitalization include industrial application of denitrification technolo