Summary of Green Power Environmental Conference Call Company Overview - Green Power Environmental operates 37 waste-to-energy projects with a daily processing capacity of 40,300 tons, ranking in the second tier of the industry [2][3] - The company is primarily supported by Beijing State-owned Assets, holding 44.4% of the shares, which provides stability and financial backing, especially during expansion phases [2][5] Industry Dynamics - The waste incineration industry is shifting focus from new project construction to enhancing operational efficiency [2][5] - Green Power Environmental has shown good operational efficiency but still has room for improvement in capacity utilization, self-generated electricity ratio, and revenue per ton of waste [2][5][6] Financial Performance - The company's operating revenue accounts for 98.9%, with a significant increase in revenue since 2021 due to changes in accounting standards [3][12] - Expected construction revenue will decline to approximately 40 million yuan by 2024 due to a lack of new projects [3] - The gross profit margin is projected to recover to 45.4% by 2024, with a net profit margin of 17.7% [12] Growth Strategies - Green Power is expanding its B2B business, including mobile energy storage, heating, gas supply, and biogas purification, to counteract the decline in profitability from reduced state subsidies [2][6] - The gas supply volume increased by 116% year-on-year to 515,500 tons in the first half of 2025 [2][6] Shareholder Returns - The company has significantly increased its dividend payout ratio from 33.2% to 71.5%, with future expectations to reach 70%-80% [4][10] - Projected dividend yields for A-shares are estimated at 4.27%-5.66% and for H-shares at 6.17%-8.18% from 2025 to 2027 [4][17] Operational Efficiency - The company has a daily waste processing capacity of 2,850 tons in Beijing and is actively expanding its electricity and heating supply to industrial enterprises [8] - The company aims to improve operational metrics through refined management and internal restructuring [7][6] Debt and Cash Flow Management - The financial expense ratio has decreased from 19% to 17.8% due to scale effects, with expectations for further reduction [13] - The company’s cash flow from operating activities has improved, reaching 1.44 billion yuan by 2024 [16] Investment Value - Green Power's stable growth and potential for exceeding expectations in its heating supply business enhance its investment appeal [18] - The high dividend yield of H-shares positions the company as a competitive investment option [18]