Core Viewpoint - Zhongke Environmental Protection has successfully acquired 100% equity of two environmental companies, enhancing its waste-to-energy business and market presence in Guangxi [1][2]. Group 1: Acquisition Details - Zhongke Environmental Protection announced the acquisition of Guangxi Guigang Beikong Water Environmental Protection Co., Ltd. for 303 million yuan and Guangxi Pingnan Beikong Water Environmental Protection Co., Ltd. for 51.75 million yuan, totaling 354 million yuan [1]. - The acquired companies primarily engage in waste incineration power generation and related environmental services, with Guigang Environmental operating a project with a total capacity of 1,500 tons per day and Pingnan Environmental operating a project with a total capacity of 1,200 tons per day [1]. Group 2: Strategic Implications - The acquisition aligns with the company's strategic planning, aiming to expand its waste-to-energy business scale and enhance its core competitiveness, which is expected to positively impact future revenue and profit [1]. - The ongoing urbanization process is driving an increasing demand for waste management services, which supports the growth of Zhongke Environmental Protection's business [1]. Group 3: Financial Performance - Since its listing in July 2022, Zhongke Environmental Protection reported revenues of 1.597 billion yuan, 1.404 billion yuan, and 1.663 billion yuan for 2022 to 2024, with growth rates of 5.34%, -12.07%, and 18.43% respectively [2]. - The net profit attributable to the parent company for the same period was 212 million yuan, 270 million yuan, and 321 million yuan, with growth rates of 22.47%, 27.12%, and 18.92% respectively [2]. - Despite the growth in net profit, the company's stock price has declined nearly 50% since reaching a peak of 10.38 yuan per share shortly after its listing, closing at 5.21 yuan per share on July 1 [2].

Group 1: Company Performance Overview - The company reported a capital expenditure of approximately CNY 540 million for project construction and acquisitions in 2024, with an expected expenditure of CNY 1-1.3 billion in 2025, where 30% will be funded by internal resources and 70% through project loans [3] - As of the end of 2024, accounts receivable aging shows that about 74.6% of receivables are expected to be collected within one year, indicating a strong financial position [4] - The company has successfully completed a 72+24 hour full-load trial run for the Yuxi project, which has now entered the production phase [2] Group 2: Heating Supply and Market Expansion - The company has been focusing on green thermal energy utilization since 2010, with significant growth potential in heating supply due to stable demand from surrounding industrial enterprises [6] - The company’s heating projects in Ningbo and Hebei have covered over 50 industrial users, with plans to expand heating capacity and enhance collaboration with large chemical enterprises [8] - The company aims to accelerate the construction of heating networks in various regions, including Mianyang and San Tai, to improve heating efficiency and market coverage [8] Group 3: Investor Relations and Communication - The investor relations activity held on June 12, 2025, involved in-depth communication between the company and investors, focusing on operational highlights and future projects [1] - The company emphasized that the communication did not involve any undisclosed significant information, adhering strictly to regulatory requirements [8]

Group 1: Company Performance - The company achieved a total revenue of 41,190.76 million yuan in Q1 2025, representing a year-on-year growth of 14.08% [2] - The net profit attributable to shareholders was 7,767.43 million yuan, with a year-on-year increase of 7.11% [3] Group 2: Heat Supply Pricing and Market Position - Heat supply pricing is determined based on local market guidance and user demand, with costs significantly lower than coal and gas heating [4] - The company emphasizes the green attributes of waste incineration heating, which aids in carbon footprint management and energy savings [4] Group 3: Competitive Advantages - The company has a clear project location advantage, focusing on industrial parks since 2010, leading to sustained heat demand [6] - It possesses rich experience in green energy transformation and project operation, with a heat utilization efficiency of 60% in the Cixi project [6] Group 4: Future Growth Potential - The company expects a heat supply of 175.45 million tons in 2024, a year-on-year increase of 57.31%, primarily from the Shijiazhuang, Cixi, and Ningbo projects [8] - The company’s heat supply capacity exceeds current demand, indicating significant growth potential in green energy supply [9] Group 5: Strategic Focus - The company will implement a core strategy of optimizing green energy in the short term and aims for large-scale development of heat supply business [7] - Future projects will enhance collaboration with large chemical enterprises to expand heat supply in key regions [9]