Core Viewpoint - The interview with the Secretary of the Board of Directors of China Energy Conservation and Environmental Protection Co., Ltd. highlights the company's strategic initiatives, operational performance, and commitment to environmental, social, and governance (ESG) principles, emphasizing its role in sustainable development and ecological protection [3][5][15] Company Overview - China Energy Conservation and Environmental Protection Co., Ltd. is a subsidiary of China Energy Conservation and Environmental Protection Group, focusing on solid waste management and environmental protection, with operations in over 30 provinces and 50 countries [3][4] - The company underwent a significant asset restructuring worth over 10 billion, enhancing its capabilities in the waste-to-energy sector [3][4] Operational Performance - In 2024, the company processed 20.16 million tons of solid waste, generated 5.365 billion kWh of electricity, and achieved a revenue of 5.919 billion with a net profit of 605 million [4][5] - The company maintains a leading position in the waste-to-energy sector through technological innovation and operational optimization [4] ESG Commitment - The company emphasizes three core dimensions in its ESG framework: environmental, social, and governance, aligning with its core values of loyalty, pragmatism, innovation, excellence, and rigor [7][8] - In 2024, the company achieved a solid waste treatment total of 20.16 million tons, generating green electricity equivalent to a reduction of over 3 million tons of CO2 emissions [7][8] Environmental Initiatives - The company employs advanced purification technologies in its waste-to-energy projects, achieving a dust removal efficiency of 99.8% and a dioxin removal efficiency of 97.5% [9][10] - Water resource management improvements led to a 98.43% reuse rate of water, while energy management initiatives reduced auxiliary fuel consumption by 10% [9][10] Social Responsibility - The company has established a comprehensive employee rights protection system, achieving 100% coverage of social insurance and conducting extensive training programs [13][14] - Community contributions include support for rural development projects and various public welfare activities, enhancing local livelihoods and promoting environmental awareness [14][15] Future Outlook - The company plans to leverage national ecological civilization strategies, increase investment in technological innovation, and enhance operational management to strengthen its core competitiveness [5][15]

Group 1: Business Operations - The company's waste incineration project operates with a daily processing capacity of over 50,000 tons, handling more than 20 million tons of solid waste annually, and generating over 5 billion kWh of electricity each year. This accounts for approximately 7%-8% of the national waste incineration capacity [2] - The company plans to enhance market development, promote mergers and acquisitions, implement refined management, and diversify income sources to improve profitability in the waste incineration sector [2] Group 2: Project Developments - The integration of waste incineration projects from China Environmental Protection into the company is currently in the preparatory phase, focusing on stakeholder communication and management improvements [2] - The market promotion of the company's "county-level small waste incineration equipment technology" has been implemented in two pilot projects [2] Group 3: Financial Performance - The environmental equipment segment faced losses last year due to intensified industry competition leading to decreased profit margins, and the transformation of the Tangshan equipment business, which has not secured new orders [3] - As of the end of 2024, accounts receivable primarily consist of waste disposal fees and government subsidies, with expectations for improved recovery due to government debt reduction measures [3] Group 4: Strategic Planning - The company is exploring overseas markets, particularly in regions aligned with the Belt and Road Initiative, focusing on countries with favorable policies, strong economic growth, and urgent environmental needs [3] - In Q1 2025, the company achieved a year-on-year net profit increase of over 40%, driven by collaborative business market expansion and cost management [3]