Core Viewpoint - Zhongzai Resources Environmental Co., Ltd. reported a significant decline in revenue and a net loss for the first half of 2025, influenced by industry policy changes, despite achieving a record high in cash inflow from operating activities due to subsidies received for waste appliance processing [1][2] Group 1: Financial Performance - The company achieved operating revenue of 1.381 billion yuan, a year-on-year decrease of 24.31% [1] - The net profit attributable to shareholders was -365 million yuan, compared to a profit of 162 million yuan in the same period last year, indicating a shift from profit to loss [1] - Operating cash inflow reached a historical high for the same period since the company's restructuring in 2015, driven by subsidies received [1] Group 2: Business Operations - Zhongzai Resources focuses on the comprehensive utilization of waste resources, primarily in the recycling and dismantling of waste electrical appliances and integrated disposal of solid waste in industrial parks [1] - The company maintained a stable volume of waste appliance processing compared to the previous year, with an increase in the proportion of white goods dismantling [1] - Anticipating a decrease in subsidy standards, the company adjusted its revenue and accounts receivable based on the expected subsidy standards for 2024, leading to operational losses during the reporting period [1] Group 3: Strategic Response - The company plans to actively respond to policy changes regarding industry subsidies and adjust its operational strategies accordingly [2] - Efforts will be made to enhance waste electrical appliance procurement and optimize price transmission mechanisms to mitigate the impact of reduced special funds on operational costs [2] - The company aims to effectively transmit the impact of subsidy reductions to the front-end procurement process to improve operational efficiency [2]