Core Viewpoint - The company reported a revenue of 2.847 billion yuan in H1 2025, a year-on-year decrease of 9.11%, while the net profit attributable to shareholders increased by 1.76% to 678 million yuan [1] Financial Performance - H1 2025 revenue decreased by 5.69% on a comparable basis after excluding the previous year's data from the divested subsidiary, with total profit increasing by 4.27% and net profit increasing by 2.48% [1] - The company's gross profit margin improved to 39.37%, up by 4.99 percentage points, driven by enhanced margins in the engineering construction segment and optimized revenue structure [1] - Operating cash flow for H1 2025 was 900 million yuan, down 20.21% from 1.129 billion yuan in H1 2024, primarily due to declining revenue in the engineering construction segment [2] - Free cash flow for H1 2025 was 563 million yuan, compared to 760 million yuan in H1 2024 [2] Business Segments - Solid waste operations generated revenue of 2.014 billion yuan in H1 2025, a 2.19% increase, with a gross margin of 44.86% [1] - Engineering construction revenue fell by 25.41% to 784 million yuan, but gross margin improved by 11.53 percentage points to 25.66% [1] - The waste collection and transportation segment saw revenue drop by 57.48% to 43 million yuan, influenced by the divestiture of the subsidiary [1] Operational Efficiency - The company maintained a leading industry position with an average power consumption rate of 11.47% and a waste processing capacity of 61,500 tons per day as of H1 2025 [3] - The company is pursuing a dual domestic and international strategy, with ongoing projects in Vietnam, Thailand, and Malaysia, and has secured contracts for waste incineration and sewage treatment equipment [3] Financial Health - The debt-to-asset ratio decreased to 52.12%, with a slight increase of 1.91 percentage points from the end of 2024 [3] - Financial expense ratios for sales, management, R&D, and finance were reported, with a notable decrease in financial expenses to 4.42% [3] Future Outlook - The company maintains a solid growth outlook for its integrated solid waste "operation + equipment" model, with expectations for accelerated overseas equipment and EPC business [4] - Profit forecasts for 2025-2027 are set at 1.264 billion, 1.350 billion, and 1.423 billion yuan, corresponding to price-to-earnings ratios of 11, 11, and 10 times, respectively [4]