Core Viewpoint - The report outlines the issuance of convertible bonds by Henan Bccy Environmental Energy Co., Ltd., detailing the bond's terms, the company's financial performance, and the management of raised funds. Group 1: Bond Issuance Details - The company issued 4,200,000 convertible bonds with a total fundraising amount of RMB 420 million, each with a face value of RMB 100 [3][17]. - The bonds have a maturity period of 6 years, from February 22, 2023, to February 21, 2029, with annual interest rates starting at 0.30% in the first year and increasing to 2.80% in the sixth year [4][5]. - The initial conversion price for the bonds is set at RMB 28.32 per share, subject to adjustments based on various corporate actions [5][6]. Group 2: Financial Performance - For the fiscal year 2024, the company reported a revenue of RMB 45,205.63 million, a decrease of 6.49% year-on-year, and a net loss attributable to shareholders of RMB -28,220.91 million, a significant decline of 189.47% [16]. - The company's total assets decreased by 21.40% from the previous year, amounting to RMB 1,283,796,375.24 [16]. Group 3: Fund Management and Usage - The net amount raised after deducting issuance costs was RMB 410,976,537.74, with a portion allocated to various projects including the biogas comprehensive utilization project [17][19]. - As of December 31, 2024, the company had a remaining balance of RMB 28,704,223.06 in its special fund account for raised funds [19][20]. - The company has faced challenges in project implementation, particularly in the biogas utilization projects, leading to slower-than-expected progress and operational issues [20][21].

Core Viewpoint - The credit rating of Henan Baichuan Changyin Environmental Energy Co., Ltd. has been downgraded from A+ to A, with the convertible bond "Baichang Convertible Bond" also downgraded from A+ to A, maintaining a stable outlook [1][2]. Group 1: Rating Change Details - The downgrade was issued by Zhongzheng Pengyuan Credit Rating Co., Ltd. on June 17, 2025 [1]. - The previous credit rating was A+ for the company and A+ for the convertible bond, both with a stable outlook [1]. - The new credit rating is A for the company and A for the convertible bond, with a stable outlook [1]. Group 2: Reasons for Rating Adjustment - The downgrade is primarily due to the company's increasing losses in 2024 and continuous losses in the first quarter of 2025 [1]. - The biogas power generation business faces risks such as reduced project development opportunities, insufficient landfill gas, competition from waste incineration power generation, increased asset impairment losses, and potential changes in subsidy policies [1]. - The company is also experiencing high liquidity risks, with cash assets unable to cover short-term debts, leading to significant short-term repayment pressure [1]. Group 3: Impact Analysis and Response Measures - The downgrade will not significantly impact the company's debt repayment ability or the suitability management for convertible bond investors [2]. - The company plans to diversify its biogas power generation into areas such as kitchen waste, landfill leachate, and industrial biogas, while also exploring coal mine gas and oil field associated gas power generation [2]. - The company aims to develop mobile energy storage heating business and has introduced various operational models, while seeking financing from financial institutions to optimize its capital structure and reduce financing costs [2].

Core Viewpoint - The credit rating of Henan Baichuan Changyin Environmental Energy Co., Ltd. has been downgraded due to worsening financial losses and operational challenges in its biogas power generation business, with a stable outlook maintained for the rating [3][4][6]. Financial Performance - The company's total assets as of the end of 2024 were 21.58 billion, with total liabilities at 8.49 billion, resulting in a debt-to-capital ratio of 40.21% [4][21]. - The company reported a net profit of -0.13 billion in 2024, with operating income of 1.08 billion, indicating a significant decline in profitability [4][11]. - The EBITDA interest coverage ratio was 1.92 in 2024, reflecting a decline in the company's ability to cover interest expenses [24]. Business Operations - The company operates 79 biogas power generation projects with a total installed capacity of 162.35 MW, maintaining a market share of over 20% in the landfill gas treatment industry [4][12]. - The biogas power generation business faced challenges due to insufficient landfill gas, project closures, and competition from waste incineration, leading to a 31.71% decline in sales revenue year-on-year [12][22]. - The company is expanding into mobile energy storage and heating services, which have shown rapid growth but require significant capital investment for scaling [16][22]. Industry Environment - The waste incineration sector is becoming the mainstream method for waste management in China, with a shift towards operational efficiency and consolidation in the industry [9][10]. - The industry is experiencing a transition from "land grab" to "operation-focused" strategies, with potential growth in the central and county-level markets [9][10]. - Changes in subsidy policies for biogas power generation projects pose risks to the company's revenue from these projects, as a significant portion of its income relies on these subsidies [5][6]. Future Outlook - The company is expected to continue facing pressure on profitability in the near term due to ongoing operational challenges and market conditions [22]. - Despite the challenges, the company remains a key player in the biogas power generation sector, with ongoing projects and new business developments that may provide some financial support [6][22].