Core Viewpoint - Shanghai Environment Group held a half-year performance briefing on September 17, 2025, to communicate with investors and address their concerns regarding the company's operational performance and future strategies [1]. Group 1: Meeting Overview - The performance briefing was conducted via video live stream and interactive online format, attended by the company's chairman, independent directors, board secretary, and financial director [1]. - The meeting aimed to maintain investor interests and comply with regulations set by the Shanghai Stock Exchange [1]. Group 2: Key Questions and Company Responses - The company reported that as of June 30, 2025, it processed 6.8572 million tons of waste and generated 2,262.561 million kWh of electricity from waste incineration [2]. - In the first half of 2025, the company focused on emerging businesses such as renewable energy and soil remediation, actively engaging in regional site investigations and environmental remediation projects [2]. - Research and development expenses for the first half of 2025 were disclosed in the company's regular reports, with a focus on solid waste resource utilization, green low-carbon technologies, and smart control technologies [3]. - The company acknowledged that its stock price is influenced by various market factors, despite good revenue and profit performance, and emphasized its commitment to enhancing core competitiveness and shareholder value [4]. - Efforts to improve quality and efficiency include deepening core business, nurturing emerging sectors, and implementing management and quality innovations to drive high-quality development [5].

Group 1 - The stock price of Guanzhong Ecological experienced fluctuations on August 25, closing at 11.84 yuan, down 1.00% from the previous trading day [1] - During the trading session, the stock saw a quick rebound, reaching a peak of 12.18 yuan at 11:12 AM, with a gain of over 2% within 5 minutes and a transaction volume of 43.98 million yuan [1] - The company's main business includes ecological environment construction, focusing on soil remediation and slope greening, primarily operating in the Shandong region [1] Group 2 - On August 25, the net outflow of main funds was 1.45 million yuan, accounting for 0.09% of the circulating market value [1] - Over the past five trading days, there was a cumulative net inflow of 16.24 million yuan, representing 1.05% of the circulating market value [1]

Group 1 - The stock price of Zhonglan Environmental as of August 15, 2025, closed at 16.55 yuan, down 0.08 yuan or 0.48% from the previous trading day [1] - The company operates in the environmental industry, focusing on solid waste treatment, soil remediation, and comprehensive environmental management [1] - Zhonglan Environmental aims to provide environmental technology solutions, including landfill leakage prevention systems and contaminated site remediation [1] Group 2 - The 5-day moving average for Zhonglan Environmental is 17.05 yuan, while the 10-day moving average is 17.17 yuan, indicating a short-term death cross pattern with a distance of -0.70% between the two averages [1] - On August 15, the net inflow of main funds was 954,900 yuan, accounting for 0.07% of the circulating market value [1] - Over the past five days, the cumulative net outflow of main funds reached 8.54 million yuan, representing 0.63% of the circulating market value [1]

Group 1 - The stock price of Zhuojin Co., Ltd. closed at 9.67 yuan on August 6, 2025, down 0.51% from the previous trading day, with a trading volume of 30 million yuan [1] - Zhuojin Co., Ltd. operates in the environmental protection industry, including soil remediation, and is registered in Zhejiang [1] - On August 6, a block trade occurred involving 350,000 shares at a transaction value of 3.3565 million yuan, with a transaction price of 9.59 yuan, which was a discount of 0.83% compared to the closing price [1] Group 2 - Over the past three months, Zhuojin Co., Ltd. has recorded two block trades with a total transaction value of 8.0815 million yuan [1] - On August 6, the net outflow of main funds was 4.2091 million yuan, accounting for 0.32% of the circulating market value; over the past five days, the cumulative net outflow was 3.089 million yuan, representing 0.24% of the circulating market value [1]

Company Overview - Foton's stock (08196.HK) closed at HKD 1.09, up 34.57% with a trading volume of 4.536 million shares and a turnover of HKD 4.7583 million, showing a volatility of 32.1% [1] - The company has experienced a cumulative decline of 49.06% over the past month and 18.18% year-to-date, underperforming the Hang Seng Index by 24.14% [2] - Foton, established in 2001 and headquartered in Guangzhou, Guangdong, operates in the environmental protection sector, focusing on wastewater treatment, soil remediation, hazardous waste treatment, and air pollution control [3] Financial Performance - For the fiscal year ending December 31, 2024, Foton reported total revenue of HKD 45.801 million, a decrease of 57.03% year-on-year [2] - The company recorded a net profit attributable to shareholders of -HKD 7.042 million, a significant decline of 345.37% year-on-year [2] - Foton's gross margin stands at 24.15%, with a debt-to-asset ratio of 67.45% [2] Industry Valuation - Currently, there are no institutional investment ratings for Foton [3] - The average price-to-earnings (P/E) ratio for the public utility sector is 6.84x, with a median of 6.97x, while Foton's P/E ratio is -4.04x, ranking 66th in the industry [3] - Comparatively, other companies in the sector have P/E ratios such as Dianchi Water (2.53x), Xinglu Water (3.41x), China Everbright Water (4.21x), Shanghai Industrial Environment (4.38x), and Kanda Environmental Protection (4.60x) [3] Future Plans - Foton aims to enter the hazardous waste business market in the coming years, intending to integrate resources within and outside the industry to expand its operations in hazardous and solid waste sectors [3]

Group 1: Financial Performance - The company reported a 20.10% year-on-year decline in revenue for 2024, with a net loss of 170 million yuan [4][6] - The decline in revenue and profit is attributed to increased market competition in the lubricating oil sector, high base oil prices, and a decrease in orders for environmental services [4][6] - The company recognized approximately 115 million yuan in impairment losses on goodwill and receivables in 2024, significantly impacting profitability [5][6] Group 2: Business Strategy and Future Plans - Following the divestment of the lubricating oil business, the company plans to invest in its wholly-owned subsidiary, Jiangsu Zhongsheng Haoteng Energy Technology Co., Ltd., to enter the energy storage industry [2][3] - The company aims to enhance its market expansion efforts in the environmental sector and new energy fields to improve revenue contributions from these areas [5][9] - Future revenue sources are expected to rely heavily on the environmental business, which accounted for 36.65% of total revenue in 2024, while the petrochemical sector contributed 62.65% [7][9] Group 3: Operational Challenges - The company faces challenges in transitioning to new business areas, as new projects require time to develop and scale [5][9] - The environmental business has seen a decline in new orders, impacting revenue growth [11][12] - The company is committed to optimizing its operational efficiency and exploring strategic partnerships to enhance project execution and revenue generation [13][16] Group 4: Risk Management and Compliance - The company is aware of the potential risk of being delisted if revenue falls below 300 million yuan, as stipulated by the stock exchange rules [10][12] - It emphasizes adherence to regulatory requirements and timely disclosure of significant information to investors [8][12] - The management is focused on maintaining a balanced workforce and controlling labor costs post-asset divestment [15][16]