Summary of Green Power Conference Call Company Overview - **Company**: Green Power - **Industry**: Waste Management and Energy Production Key Points Operational Performance - Significant increase in gas supply volume by 97% in Q1 2025, with expectations for continued high growth throughout the year [2][4] - All projects in Rushan have transitioned to gas supply, while the Haining project has shown substantial gas supply in the first half of the year [2][4] - Total contracts signed by mid-2025 increased by four to five compared to the previous year, totaling around 14 to 15 projects, with 10 already supplying gas [2][4] Cost Management - Effective cost control through centralized procurement and refined management, resulting in a cost reduction of over 10 million yuan in Q1 2025, with expectations for this trend to continue [2][7] - Capital expenditures projected to decrease: 500 million yuan in 2024, approximately 400 million yuan in 2025, and around 300 to 400 million yuan in 2026 due to the construction of the second phase in Guangyuan [2][7] Project Highlights - Major projects contributing to heating volume include Haining and Rushan, with Haining expected to supply around 300,000 to 400,000 tons of heat annually, and Rushan projected to supply over 200,000 tons [2][8] - Total heating volume for the first half of 2025 is estimated at 400,000 to 500,000 tons, compared to 560,000 tons for the entire year of 2024 [8] Financial Insights - Overall operational performance in the first half of 2025 is positive, with slight growth in waste processing and power generation compared to the previous year [4] - Financial expenses decreased by approximately 20 million yuan in Q1 2025, with a continued downward trend into Q2 [21] Challenges and Risks - Poor national subsidy settlement situation in the first half of 2025, with garbage processing fee settlements showing some improvement but not fully resolved [12] - Local financial difficulties affecting garbage processing fee collections, with some regions experiencing significant delays [13][14] Future Plans - The company is awaiting strategic guidance from major shareholders and has begun internal research for the upcoming 15th Five-Year Plan [25] - Ongoing commitment to mergers and acquisitions to strengthen core business and expand project bidding [26] Technological Advancements - Significant progress in sludge co-incineration technology, which has been implemented in multiple projects with low investment and high economic benefits [5][27] Market Conditions - The company is exploring mobile heating solutions and third-party partnerships for pipeline construction and user expansion [9][10] Dividend Policy - The company has maintained a cash dividend policy since its H-share listing, with plans for high cash dividends based on annual performance and cash flow [29] Green Certificate Sales - The company has issued over 500,000 green certificates, with a low selling price impacting revenue [15] Conclusion Green Power is experiencing robust operational growth, particularly in gas supply and heating projects, while effectively managing costs. However, challenges remain in subsidy settlements and local fee collections. The company is focused on strategic planning and technological advancements to enhance its market position.

Core Viewpoint - The article discusses the tax exemption policies for waste treatment facilities, including the requirements and documentation needed for taxpayers to qualify for these exemptions [3][4]. Group 1: Tax Exemption Policies - Taxpayers can apply for tax exemptions if they meet specific conditions regarding the emission of taxable air and water pollutants [3]. - The management of the exemption policy follows a "self-assessment, declaration, and documentation retention" approach, where taxpayers are responsible for determining their eligibility [3][4]. Group 2: Required Documentation - Taxpayers must retain various documents based on the type of waste treatment facility, including construction plans, discharge permits, and environmental impact assessments [4]. - For urban sewage treatment facilities, required documents include maintenance contracts and operational supervision reports from relevant authorities [4]. Group 3: Non-Eligibility Conditions - Facilities providing wastewater treatment services to industrial zones or self-built treatment facilities do not qualify for tax exemptions [4]. - Taxpayers exceeding national and local pollutant discharge standards are ineligible for the exemption [4].

Core Viewpoint - The rapid increase in waste incineration capacity in China is a significant advancement in the waste management industry, with many cities achieving zero landfill for original household waste and beginning the excavation of aged landfill waste for secondary treatment [1][19]. Group 1: Waste Management Progress - The implementation of waste classification and the encouragement of incineration plant construction have led to a notable improvement in waste management capabilities across China [1]. - The excavation of aged landfill waste is primarily driven by the need to manage the ash produced from incineration, as policies restrict the expansion of landfill areas [1][20]. - The shift from "waste siege" to "zero waste cities" reflects the heavy burden of waste management in China, with a historical reliance on imported waste materials [3][4]. Group 2: Waste Classification and Incineration - The introduction of mandatory waste classification aims to optimize waste processing by separating recyclable materials and hazardous waste, which enhances incineration efficiency [8][9]. - In Shanghai, the implementation of waste classification has resulted in a 20% reduction in the amount of combustible dry waste available for incineration, despite an increase in the overall recycling rates [10][12]. - The number of waste incineration plants is increasing, with a goal to have 80 million tons of daily incineration capacity by 2025, reflecting a significant investment in waste-to-energy infrastructure [14][16]. Group 3: Market Dynamics and Challenges - The rapid expansion of incineration capacity has led to reports of a "garbage shortage," prompting some regions to excavate old landfill waste to meet processing needs [19][20]. - The industry faces challenges such as subsidy reductions and stricter environmental regulations, which may lead to a market reshuffle and the closure of smaller, less efficient plants [25][26]. - Major companies are seeking to expand their market presence and improve operational efficiency through technological innovation and strategic partnerships, both domestically and internationally [27][28].

Fundraising Overview - The company raised a total of RMB 35,269.99 million through the issuance of shares to acquire 86.34% of the equity of Shankao Shifang Environmental Energy Group Co., Ltd. [1] - The company also raised RMB 289,999,981.40 through a private placement of 27,102,802 shares at RMB 10.70 per share, with a net amount of RMB 278,514,132.32 after expenses [2] - A subsequent private placement raised RMB 592,798,277.99 by issuing 51,823,630 shares at RMB 11.43 per share [3] Fund Usage - As of March 31, 2025, the company had utilized RMB 27,907.32 million of the raised funds, with a remaining balance of RMB 0.00 million from the 2019 fundraising [4][11] - For the 2020 fundraising, a total of RMB 56,546.78 million was used, leaving a balance of RMB 2,800.47 million [11] Fund Management - The company temporarily supplemented working capital with idle funds, using RMB 12,500 million, which was fully returned within 12 months [6] - Additional temporary uses of idle funds included RMB 30,000 million and RMB 9,000 million, both of which were also returned within the stipulated time [7][8] Project Performance - The company reported that the acquisition of Shankao Shifang has stabilized operations, with no significant changes in the main business [10] - The net profit of Shankao Shifang for the first quarter of 2025 was reported at RMB 3,318.79 million [10] Financial Commitments - The company has commitments regarding performance guarantees, ensuring that Shankao Shifang's net profit exceeds zero during the commitment period [10] - The performance commitments for the years 2020 to 2022 have been fulfilled, with specific profit figures reported [10][11] Fund Surplus and Reallocation - The company has decided to permanently supplement working capital with surplus funds from completed projects, including RMB 3,308.31 million from the "New City Heating Expansion and Renovation Project" [11][13] - The remaining funds from the acquisition of Beijing Chinai Bioenergy Technology Co., Ltd. will also be allocated to working capital [13]

Group 1: Green Transition in China - Since the "14th Five-Year Plan," China's green low-carbon transition has accelerated, becoming one of the fastest countries in reducing energy intensity globally [1] - By 2024, China's energy consumption per unit of GDP is expected to decrease by 11.6% compared to the end of the "13th Five-Year Plan," with major resource output rates improving by approximately 12% [1] - The country has incinerated 268 million tons of household waste, marking an 83.6% increase since the end of the "13th Five-Year Plan" [1] Group 2: Waste-to-Energy Initiatives - The China Energy Conservation Group's Hefei Environmental Company processes 2,000 tons of household waste daily, reducing CO2 emissions by about 260,000 tons annually, equivalent to saving 96,000 tons of standard coal [3] - The company has cumulatively processed over 4.1 million tons of waste by May 2025, generating 1.34 billion kWh of electricity, addressing the "garbage siege" issue in Hefei [3] Group 3: Innovative Wastewater Treatment - The Hu Daying sewage treatment plant in Hefei has a daily processing capacity of 100,000 tons, utilizing a fully underground design that saves approximately 67% of land resources [6] - The Hefei Xiaocangfang water treatment plant employs an AI water management system that enhances operational efficiency and emergency response capabilities [6][7] Group 4: Technological Advancements in Solar Energy - The China Energy Conservation Solar Company focuses on technological innovation to drive industry transformation, implementing advanced production processes and self-research initiatives [8] - The company has introduced a cutting-edge cutting process that saves 1.018 million kWh of electricity annually, reducing CO2 emissions by 580 tons [8] - By upgrading equipment, the company saves 5.146 million kWh of electricity each year, equivalent to a reduction of 2,935 tons of CO2 emissions [9] Group 5: Integration of Renewable Energy - The company has developed a distributed microgrid system with a capacity of approximately 11.7 MW, generating about 12.546 million kWh of green electricity annually, saving 1,541.9 tons of standard coal [9] - The "5G + photovoltaic intelligent manufacturing collaborative innovation cloud platform" connects 144 power stations and monitors over 156.8 million key indicators, showcasing significant energy efficiency and carbon reduction capabilities [11]

Group 1: Environmental Initiatives in Xining - Xining has made significant progress in ecological improvement, with forest coverage in the core area of the South-North Mountain Greening Project increasing from 7.2% to 79% since 1989, enhancing carbon sequestration [1] - As a second batch national carbon peak pilot city, Xining is implementing actions targeting major emission sources and promoting green transformations in urban construction, industry, and energy sectors [1] - The city has achieved a 100% resource utilization rate for municipal solid waste, effectively realizing waste reduction, resource recovery, and harmless treatment [3] Group 2: Waste Management and Recycling - Sheneng Huangshui Company specializes in waste incineration power generation, processing approximately 400 trucks of municipal waste daily, converting 1 ton of waste into 500 kWh of electricity [2] - The company employs advanced technologies for waste treatment, ensuring emissions meet standards while generating energy for sale [2] - Xining has closed or ecologically capped all 15 municipal waste landfills, becoming the first city in the Tibetan Plateau to achieve zero landfill for raw waste [3] Group 3: Aluminum Industry Transformation - China's electrolytic aluminum production accounts for half of the global output, with significant carbon emissions associated with traditional production methods [4] - Xining's Ganhua Industrial Park is recognized as a core production base for green electricity aluminum, with companies like Huanghe Xinye focusing on low-carbon transformation and green energy utilization [5][6] - By 2027, Xining aims for a 90% conversion rate of primary electrolytic aluminum products and a 75% share of clean energy in aluminum production [7]

Group 1 - The core idea of the articles revolves around the innovative practices of Beijing Chaoyang Environment Group in urban waste management, particularly through the use of AI technology in waste incineration to enhance efficiency and reduce carbon emissions [1][2][3] Group 2 - Beijing Chaoyang Environment operates the Chaoyang Circular Economy Industrial Park, which has been recognized as a "National High-tech Enterprise" and "Beijing Specialized and Innovative Enterprise," contributing nearly 300 million kWh of green electricity annually to the national grid [1] - The park utilizes the first nationwide "AI Intelligent Incineration System," which has improved steam stability by 36%-48%, achieved an automatic operation rate of over 98%, and reduced operational intensity by 80% [2] - The system has led to a year-on-year increase of approximately 4.5% in steam production per ton of waste and a 4.2% increase in electricity generation, while also reducing the consumption of desulfurization and denitrification materials by over 3% [2] - The park processes over 8,000 tons of various waste daily, with a resource recycling rate close to 100% and an annual green electricity generation exceeding 500 million kWh, achieving a resource conversion rate of over 85% [3] - The facility's innovative waste management approach includes the utilization of waste heat for cooking kitchen waste, recycling leachate into reusable water, and converting construction waste into recycled materials, thus enhancing the value of resource utilization [3]

Group 1 - The company, Green Power, has signed a strategic cooperation agreement with Asia United Infrastructure Holdings Limited to promote mutual development and long-term collaboration [1] - The cooperation will focus on regions including East Asia, Southeast Asia, and West Asia, particularly in countries and regions participating in the Belt and Road Initiative [1] - This agreement is a preliminary framework and intention agreement, which does not require approval from the company's board of directors or shareholders [1] Group 2 - The implementation of the contract will not have a significant impact on the company's operating performance for the current year before the contract becomes effective and is executed [1]

Core Viewpoint - The company has signed a strategic cooperation agreement with Asia United Infrastructure Holdings Limited to promote mutual development and long-term collaboration in renewable energy opportunities, particularly in urban waste management across East Asia, Southeast Asia, and West Asia [1] Group 1 - The agreement is a framework and intention-based contract, effective for five years from the date of signing [1] - The implementation of this agreement is not expected to have a significant impact on the company's operating performance for the current year [1]

Core Viewpoint - The company has signed an agreement with the Haimen Economic and Technological Development Zone to invest in a food waste treatment facility, marking the official launch of its food waste management project [1][2]. Group 1: Project Details - The company will invest $3.6 million in the project within one month of signing the agreement [1]. - The project involves the development, construction, and operation of a biomass refining and carbon sequestration facility for food waste in Haimen [1]. - A wholly-owned subsidiary will be established to operate and implement the project, contingent upon obtaining the necessary operating rights [1]. Group 2: Strategic Importance - The project adopts an innovative "Pengzhou model" and "urban oilfield" approach, aiming to revolutionize food waste management in China [2]. - Strategically located in the Suzhou-Shanghai region, the project will leverage Haimen's geographical advantages to set a benchmark for the company's food waste collection, transportation, and processing system [2]. - If initial operations reveal insufficient processing capacity to handle the daily food waste generated in Haimen, the company plans to invest in a second phase of the project based on the performance of the initial phase [2].