SPC(SZ:002573) Jin Rong Jie·2025-04-18 11:25Core Viewpoint - In 2024, the company reported a slight revenue increase but a significant decline in net profit, indicating severe operational challenges despite maintaining industry leadership in environmental protection [1][4]. Business Performance - The company's core business focuses on industrial flue gas treatment and water investment and operation, with over 310 million kilowatts of coal-fired power capacity and 18 operating projects, maintaining a leading position in the industry [4]. - The water investment and operation segment has over 40 supply and drainage projects with an annual water treatment capacity of approximately 1.469 billion tons, although it has a relatively low profit margin [4]. Reasons for Performance Decline - The decline in performance is attributed to short-term factors such as increased consumption tax for a subsidiary, asset impairment provisions, and increased credit loss provisions due to changes in accounts receivable aging [5]. - The industrial energy-saving and resource recycling segments have underperformed, with energy-saving solutions contributing only 5.49% to revenue and resource recycling facing profitability challenges due to market competition and raw material price fluctuations [6]. Future Outlook - The company is actively adjusting its strategy by streamlining operations and focusing on core business areas, including the recent announcement to transfer a 57% stake in Xuancheng Fuwang to optimize asset structure [7]. - The company aims to enhance operational efficiency and profitability through technological innovation, particularly in AI applications for flue gas treatment and other areas, while responding to the "dual carbon" policy [7].