Performance Meeting Overview - The company held a performance meeting on June 3, 2025, to discuss the 2024 annual and 2025 Q1 performance and cash dividend plans [1][2] Business Strategy and Structure - The company will continue to focus on ecological restoration projects and enhance its full industry chain in ecological landscape design, restoration, and maintenance [3] - The company aims to optimize its business structure to improve gross margins by prioritizing high-quality projects and enhancing project management [3] EOD Business Model - The company is in the exploratory phase of the EOD (Ecological Protection and Environmental Governance) business model, assessing policy directions and market demands [4] Research and Development Collaborations - The company collaborates with several universities and research institutions, resulting in 159 patents across various fields, including ecological restoration and carbon neutrality [4][5] International Expansion Plans - The company plans to explore overseas markets in line with the Belt and Road Initiative and its core business [6] Carbon Market Opportunities - The company sees significant opportunities in forestry carbon sinks and CCER (China Certified Emission Reduction) under the "dual carbon" policy, actively engaging in related projects [6] Cash Flow Management - The company reported a net cash flow from operating activities of approximately 96 million yuan in 2024, indicating improved cash collection capabilities [6] Industry Performance Context - The ecological and environmental protection industry has faced challenges, including declining revenue growth and profit margins due to macroeconomic impacts [8][9] - Despite these challenges, the industry is expected to grow steadily, supported by national policies and the "14th Five-Year Plan" [9] Rural Revitalization Strategy - The company is exploring various business models in response to national rural revitalization and new urbanization strategies [9]

Group 1: Core Concept of Green Finance - Green finance is becoming a key lever for sustainable development in the global response to climate change and low-carbon transition [1] - The expansion of financial tools, including ESG investment principles and green credit innovations, injects strong momentum into the green economy [1] Group 2: ESG Integration in Banking - The core of green finance is to direct financial resources towards green industries, supporting the low-carbon transition of traditional industries and the development of strategic emerging industries [2] - ESG principles are increasingly integrated into banking credit processes, aiming to incentivize companies to improve their performance in environmental protection, social responsibility, and corporate governance [2] - Several banks have established personalized ESG evaluation systems to transform green credit business processes [2] Group 3: Impact of ESG Ratings on Credit Business - ESG ratings significantly influence banks' credit operations, serving as a basis for credit entry management and exit [3] - ESG ratings are dynamic and linked to credit management, with annual updates affecting credit ratings and limits [3] - Banks implement differentiated management measures based on ESG ratings in loan checks, pricing, and economic capital allocation [3] Group 4: Innovation in Green Financial Products - Financial authorities emphasize the importance of developing diverse green financial products and services [4] - The China Development Bank has issued sustainable development-linked loans to support high-standard farmland construction, linking water-saving rates to loan interest rates [4] - In the first four months of the year, the China Development Bank issued over 250 billion yuan in green loans, focusing on green infrastructure, clean energy, ecological protection, and pollution prevention [4] Group 5: Balancing Innovation and Risk in Green Finance - The rapid development of green finance is accompanied by increased ESG risks, necessitating a balance between innovation and risk control [5] - The enhancement of green service capabilities in the banking and insurance sectors will contribute to the maturity of China's green finance system in the long term [5] Group 6: Ecological Industry Planning - A significant challenge in developing green finance is the difficulty in converting environmental benefits from ecological projects into economic returns [7] - The EOD (Ecological Environment-Oriented Development) model integrates ecological governance projects with resource and industrial development to enhance the sustainability of the environmental industry [7] - Financial institutions are innovating financing models to support the realization of ecological product values, with some projects already showing initial success [7] Group 7: Case Study of EOD Project in Dongtou District - Dongtou District is implementing the "Dongtou Zhuwan: Common Prosperity Marine Garden" EOD project, integrating ecological governance with industrial development [8] - The China Development Bank's Zhejiang branch has provided 170 million yuan in syndicate loans to support this project [8] - Ongoing projects in the district are improving environmental quality and promoting traditional aquaculture transformation, leading to increased local income [9]

Group 1 - The core viewpoint emphasizes the promotion of private enterprises through the implementation of the Private Enterprise Promotion Law, focusing on equal treatment, fair competition, and mutual development [1] - The government plans to launch high-quality projects in key sectors such as transportation, energy, water conservancy, new infrastructure, and urban infrastructure, with a total investment scale of approximately 3 trillion yuan [1] Group 2 - The new regulations prioritize private enterprises' participation in Public-Private Partnership (PPP) projects, allowing them to independently or predominantly hold stakes in market-oriented projects [2] - Private enterprises can participate in government investment projects through various mechanisms, including agency construction, mixed ownership reform of state-owned enterprises, urban renewal, and standardized factory construction [3][4][5][6] Group 3 - Private enterprises can engage in government-led industrial funds as limited or general partners, and participate in asset securitization of government-owned assets [7][8] - The issuance of ultra-long special government bonds is planned to support major strategic projects, allowing private enterprises to participate through investment or technical cooperation [9] Group 4 - Various provinces have released lists of major projects, with significant investment scales aimed at driving economic development and enhancing project quality [11] - Specific provincial investment plans include Beijing's 1.4 trillion yuan for key projects, Tianjin's 2.02 trillion yuan for 1,129 projects, and Guangdong's approximately 9.2 trillion yuan for 1,500 projects [13][14][20]