中环洁（24094）：应收逾期率80%，期后回款率9%

Investment Rating - The report indicates a need for an IPO to address financial challenges faced by the company [1]. Core Insights - The company, Zhonghuanjie Group Co., Ltd., is focused on urban sanitation services, which account for 98% of its revenue, and is currently seeking to enter the Beijing Stock Exchange [4][6]. - The sanitation industry is transitioning from government-operated services to market-driven operations, creating opportunities for specialized sanitation companies [2][5]. Summary by Sections Business Model and Revenue - Zhonghuanjie primarily provides urban sanitation services, including road cleaning, waste collection, and public toilet management, which constitute the majority of its income [6]. - The company employs approximately 25,000 people, with labor costs being the largest expense [8]. - In 2024, the Northeast region contributed over 35% of the company's revenue, with a gross margin nearing 40%, significantly higher than other regions [11]. Contractual Challenges - The sanitation contracts are typically short-term, averaging around three years, which poses a risk of losing projects upon expiration [15][16]. - As of 2024, the total value of contracts held by Zhonghuanjie was 7.5 billion, with an annualized contract amount of approximately 2.5 billion [16]. Market Dynamics - The sanitation industry is highly competitive, with over 10,000 companies operating, but only 324 generating over 100 million in annual revenue [24]. - The market has seen a slowdown, with a decrease in annual project transaction amounts from 686 billion to 955 billion between 2020 and 2024, indicating a nearing saturation point [26]. Financial Health - The company has experienced a significant increase in accounts receivable, rising from 570 million to 1.753 billion from 2021 to 2024, with a concerning overdue rate of 80.5% by mid-2025 [35][38]. - In 2024, the company recorded a credit impairment loss of 89.54 million, which has negatively impacted profitability [40]. - The company is relying on short-term loans to maintain operations, with cash reserves of only 179 million against short-term borrowings of 1.104 billion [44].