Group 1: Wastewater Treatment Business Overview - The wastewater treatment business is the core of the company's operations, utilizing a concession model for daily processing and fee collection [2] - In 2024, the company processed approximately 936 million tons of wastewater, averaging about 2.56 million tons per day [2] - The main cost components of wastewater treatment include electricity, chemicals, equipment maintenance, safety management, depreciation, personnel costs, and laboratory expenses [2] Group 2: Pricing and Contractual Aspects - The company can apply for price adjustments based on the concession agreement when the pricing mechanism is triggered [3] - The typical concession agreement duration for wastewater treatment projects in Zhengzhou is 30 years, with options for transfer, repurchase, or renewal upon expiration [3] Group 3: Upgrading and Compliance - Recent upgrades have been made to meet higher discharge standards, such as the upgrade of certain plants to the Yellow River Basin's first-level discharge standards [3] - The company has completed the upgrade of the first phase of the Ma Taogang wastewater treatment plant to first-level A standards [3] Group 4: Financial and Operational Insights - The company enjoys a national tax incentive policy of three exemptions and three reductions for its wastewater treatment business [3] - The average financing cost is around 3%, with a focus on cost reduction as a key task for 2025 [4] - The company is actively monitoring external market opportunities for strategic acquisitions, assessing projects based on IRR/ROE criteria [4] Group 5: Accounts Receivable and Cash Flow - Accounts receivable primarily consist of government debts related to wastewater treatment and PPP projects, with ongoing efforts to ensure timely collections [4] - Current cash flow is under pressure due to issues with accounts receivable collections [4]