Core Viewpoint - The article discusses the tax incentives for the development of rural characteristic industries and the promotion of agricultural economic circulation through the utilization of agricultural and forestry by-products as raw materials for energy production, with a focus on a 100% VAT refund policy for certain products [1][2]. Tax Incentives Overview - The policy allows a 100% VAT refund for taxpayers producing biomass briquettes, biomass crushed materials, biogas, pyrolysis gas, methane, bio-oil, electricity, and heat from specific agricultural waste materials starting from March 1, 2022 [1]. - Eligible raw materials include kitchen waste, livestock manure, rice husks, peanut shells, corn cobs, tea oil shells, cottonseed shells, and other agricultural residues [1]. Eligibility Conditions - Taxpayers must obtain VAT invoices for recycled resources purchased domestically and must keep proper documentation for compliance [2]. - Taxpayers must not be classified as C or D level in tax credit ratings and must not have violated environmental protection laws or tax regulations in the past six months [4][5]. Calculation of Refundable Tax Amount - The refundable tax amount is calculated by excluding ineligible sales revenue from the total sales revenue of comprehensive utilization products and services [3]. - Taxpayers are required to maintain a record of recycled resource purchases, including supplier details and invoice status [3]. Compliance Requirements - Products must not fall under categories listed as eliminated or restricted by the National Development and Reform Commission or classified as high pollution and high environmental risk by the Ministry of Ecology and Environment [4]. - The raw materials or fuels used must derive at least 80% from the specified resources [4].

Economic Overview - In Q2, the actual GDP growth was 5.2% year-on-year, while nominal GDP growth fell to 3.9%, marking a decline of 0.2 and 0.7 percentage points from Q1 respectively[4] - The nominal GDP growth rate has dropped below 4%, the lowest in nearly three years, primarily due to strong supply and weak demand characteristics[23] Supply and Demand Balance - Q3 is expected to see a balance between supply and demand, driven by the implementation of "anti-involution" policies and improved confidence in the real sector[2] - The recovery in consumption is gradually being confirmed, with "anti-involution" policies likely being a key factor influencing Q3 economic performance[4] Investment Trends - Fixed asset investment in Q2 grew by only 1.8% year-on-year, a significant drop of 2.4 percentage points from Q1, with infrastructure and manufacturing investments experiencing widespread contraction[11] - In June, fixed asset investment saw a month-on-month decline of 0.1%, marking a historical low[11] Consumer Behavior - The nominal growth rate of social retail sales in Q2 was 4.5%, slightly down by 0.1 percentage points from Q1, indicating a moderate increase in consumer spending[19] - In June, social retail sales growth fell to 4.8%, a significant drop of 1.6 percentage points from the previous month, with most categories experiencing a broad decline[20] Inflation and Market Dynamics - The report suggests that moderate inflation positively impacts corporate operations and household balance sheets, with expectations of a gradual recovery in nominal GDP growth[2] - The bond market is currently benefiting from a low inflation environment and ample liquidity, although the upward potential for bond prices is limited in the short term[27] Geopolitical and Policy Risks - Risks include geopolitical tensions and the potential for policy changes that exceed expectations, which could impact economic stability[3]

Group 1 - The State Intellectual Property Office of China shows that TBEA Co., Ltd. and Tibet Kaitou Jinshang Photovoltaic Energy Co., Ltd. have applied for a patent titled "Relay Protection Device for Photovoltaic Power Plant Booster Station," with publication number CN120320179A and application date of May 2025 [1] - The patent describes a relay protection device for photovoltaic power plant booster stations, which includes a housing, a relay protection instrument, a fan, and a filtering mechanism that enhances the drying effect of desiccants through vibration [1] - The filtering mechanism is designed to remove dust from the filter and promote the dispersion and replacement of desiccants, improving the overall efficiency of the device [1] Group 2 - TBEA Co., Ltd. was established in 1993, located in Changji Hui Autonomous Prefecture, primarily engaged in the manufacturing of electrical machinery and equipment, with a registered capital of 5,052.71 million RMB [2] - TBEA has invested in 55 companies, participated in 5,000 bidding projects, and holds 361 trademark records and 657 patent records, along with 20 administrative licenses [2] - Tibet Kaitou Jinshang Photovoltaic Energy Co., Ltd. was founded in 2022, located in Changdu, primarily involved in electricity and heat production and supply, with a registered capital of 762 million RMB [2] - Tibet Kaitou Jinshang has participated in 17 bidding projects and holds 6 patent records [2]