Core Viewpoint - Shanghai Zhuoran Engineering Technology Co., Ltd. has significantly increased its revenue from EPC (Engineering, Procurement, Construction) services, with a reported income of 1.027 billion yuan in 2024, representing a year-on-year growth of 700.95% and accounting for 37.02% of its main business revenue [1][2]. Group 1: EPC Service Business Model - The company has actively expanded its EPC service business to enhance revenue and strategically transform its operations, moving from being a core supplier of large refining equipment to a comprehensive solution provider [2][3]. - The EPC model involves comprehensive project management, including design, procurement, construction, and post-service, ensuring quality, safety, and timely completion [3][4]. - The company has established a full lifecycle service system, integrating consulting, design, intelligent manufacturing, engineering implementation, and smart operation [2][3]. Group 2: Revenue Recognition and Accounting Standards - The company adopts the gross method for revenue recognition in EPC projects, as it acts as the primary responsible party in transactions with clients [6][8]. - Revenue is recognized based on the progress of completion, calculated as the ratio of costs incurred to the estimated total costs [10][11]. - The company has confirmed revenue from various projects, including a 55,000-ton carbon four deep processing and hydrogen comprehensive utilization project, with total contract amounts and timelines detailed [14][15]. Group 3: Project Execution and Risks - The company has successfully executed the Guangxi Hongkun project, which involves the production of 600,000 tons of bio-jet fuel, with significant strategic value and sustainable development potential [20][21]. - The project has received government approval and is aligned with national green development strategies, indicating strong policy support [21][22]. - The company has implemented a comprehensive risk management system to ensure project progress and financial security, including dynamic matching of funding plans with engineering progress [22].

Group 1: Research Overview - The research object is Pengyao Environmental Protection, belonging to the environmental protection industry, and the reception time was on May 30, 2025. The listed company's reception staff was Chen Weifeng, the director of the company's investment relations [17] - The detailed research institution is Jintake Asset, a asset management company, and the relevant personnel is Shen Hai [20] Group 2: Company SAF Status - In 2024, Panjin Pengyao completed the technical transformation of SAF and successfully produced sustainable aviation fuel (SAF) in September 2024, with an overall product yield of 82%, and 46 indicators meeting international standards. In December 2024, Panjin Pengyao signed a cooperation agreement with China National Petroleum International Business Corporation and exported 4,950 tons of SAF to the international market for the first time. Currently, the company is continuing to optimize the SAF process and is expected to increase the SAF yield in the future [24] Group 3: Domestic SAF Policy - In September 2024, China officially launched the SAF application pilot project, covering four airports including Beijing Daxing, Chengdu Shuangliu, Zhengzhou Xinzheng, and Ningbo Lishe. Three major airlines, Air China, China Eastern Airlines, and China Southern Airlines, participated, and a total of 12 flights completed SAF refueling, initially verifying the applicability and operational safety of SAF on domestic routes. The first - stage (from September to December 2024) of this pilot project focused on initial application and experience accumulation. From 2025, the second stage will gradually expand the scope of participating airlines and airports to form a larger - scale SAF promotion network [25] Group 4: International SAF Policy - The EU is quite active in developing the SAF industry. After setting the goal of achieving carbon neutrality by 2050, the EU proposed the European Green Deal long - term development strategy in 2020. Under this strategy, the EU has issued a series of policy measures to support carbon emission reduction in the aviation industry, collectively referred to as "The EU fit for 55 package". Key policies affecting the SAF industry include the reform proposal of the European Emissions Trading System (EU ETS), the ReFuelEU plan, and the revision of the European Energy Taxation Directive (ETD) [27] - The ReFuelEU plan, approved by the European Parliament in October 2023, defines the raw materials for SAF, prohibits the use of feed and food crop raw materials, and sets mandatory SAF usage quotas for aviation fuel suppliers. The EU Aviation Safety Agency is empowered to expand environmental supervision from 2025 [27][28] - The revised ETD will tax traditional fossil fuels, with the energy tax for transportation gradually increasing to 10.75 euros/GJ and for heating to 0.9 euros/GJ from 2023 - 2033 [28] Group 5: Comprehensive Analysis of SAF Development - SAF is still in its early stage globally. The EU and the US have relatively complete policies, while China has gradually attached importance to it in recent years and actively participated in international cooperation. China's SAF policies are mainly encouraging, without requirements for blending ratios or a clear development timeline, but the government has shown positive support [29] - From the planning of domestic energy companies' participation in the SAF industry and the enthusiasm of new companies, the future of the industry is promising [30] Group 6: Company's Advantages - Pengyao Environmental Protection adopts a light - asset operation model, using leased sites and renovated old equipment for HVO and SAF production. The production process technology package is developed and improved by its own technical team, without additional process package costs. With the same scale, it has lower capital investment and daily operating costs, resulting in a lower full cost of SAF products. The company's SAF products have been exported, and their quality and cost advantages have been verified by the market [31] Group 7: Company's Main Business Performance - This year, the company has won new bids for major water - related projects, including a water purification project with a daily water supply capacity of 99,000 cubic meters in Hami, Xinjiang, and a 5 - year operation contract; a sewage treatment BOT project in Nantangyin, Henan, with a design scale of 30,000 cubic meters per day; a sewage treatment equipment procurement project in Fangshan District, Beijing; and a 600,000 T/D entrusted operation project for a water purification plant in Nantong [32][33][34] - The company promotes the prefabricated water plant construction model this year. Its SEED water plant combines new energy technology with prefabricated water plant technology, featuring photovoltaic - building integration, faster construction speed, better quality control, and more efficient, green, and low - carbon operation, which is in line with the dual - carbon goal and has broad prospects [34]