Core Viewpoint - Donghua Engineering Technology Co., Ltd. is committed to a strategic layout of "one basic plate + three verticals and three horizontals," aiming to become a "100 billion Donghua" by 2025, with over 40% of its business currently in the new materials, new energy, and new environmental sectors [2]. Business Layout - The company operates under a dual business model of "engineering + industry," focusing on chemical engineering and high-end chemical production, as well as environmental facility operations [2]. - The strategic focus includes vertical advancements in differentiation, industrialization, and internationalization, while horizontally expanding into new materials, new energy, and new environmental industries [2]. - The company is actively pursuing opportunities in high-end polyolefins and has established a lithium and potassium division to enhance its market share in new materials [2]. Orders and Profit Margins - As of June 30, 2025, the company has signed uncompleted orders totaling 51.3 billion yuan, with domestic orders primarily in coal chemical sectors and overseas orders concentrated in the chemical field [3]. - The overall profit margin is influenced by business structure and project progress, with engineering business profit margins maintained between 8% and 15% through effective cost control [3]. Key Projects - The "Donghua Furnace" biomass gasification project is currently in the pilot construction phase, with key equipment installation completed and expected mechanical completion in Q4 of this year [4]. - This technology aims to utilize agricultural and forestry waste, supporting the company's green energy business expansion [4]. Market Value Management - The company has maintained a cash dividend ratio exceeding 30% over the past three years, distributing 106 million yuan in cash dividends in 2024, with plans to increase dividend payouts [5]. - A stock incentive plan was successfully implemented in 2019, granting 9.215 million shares to 165 participants, which has contributed to business and profit growth [5].

Company Overview - Donghua Engineering Technology Co., Ltd. is a state-controlled comprehensive engineering company, originating from the Third Design Institute of Chemical Industry, under the China Chemical Engineering Group Corporation [2] - The company focuses on engineering and industrial businesses, with core areas in chemical engineering, environmental governance, and infrastructure [2] Business Strategy - The company adopts a "one basic plate + three verticals and three horizontals" strategy, aiming to become a "100 billion Donghua" by 2025 [2] - The "three new" industries (new materials, new energy, new environmental protection) account for over 40% of the company's overall business [2][3] Market Opportunities - The chemical industry is crucial for national economic stability, with increasing demands for green and low-carbon development [3] - The company has expanded its overseas business to regions along the Belt and Road, including South America, Africa, and Southeast Asia [3][4] Order and Revenue - As of June 2025, the company has signed uncompleted orders totaling 51.3 billion yuan, primarily in coal chemical, new chemical materials, green energy, and industrial environmental protection [6] - The project gross profit margin remains stable at 8%-15%, influenced by project type and market competition [7] Key Projects - The biomass gasification project is in the pilot construction phase, expected to achieve mechanical completion in Q4 2025, aligning with national circular economy policies [8] - The company is actively pursuing green energy projects, including wind and solar hydrogen production [5] Shareholder Returns - The company has maintained a cash dividend payout ratio of over 30% for the past three years, distributing 106 million yuan in cash dividends in 2024 [9] - A stock incentive plan was fully implemented in 2019, benefiting 165 employees and contributing to business growth [9]