Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, but operational service revenue has increased, indicating a shift in business structure towards more stable income sources [1][2]. Group 1: Financial Performance - In H1 2025, the company achieved a revenue of 14.304 billion HKD, a year-on-year decrease of 8% [1]. - The net profit attributable to shareholders for H1 2025 was 2.207 billion HKD, down 10% year-on-year [1]. - The gross profit margin improved to 44.26%, an increase of 5.53 percentage points year-on-year, while the net profit margin rose to 19.44%, up 0.84 percentage points [3]. Group 2: Revenue Composition - Operational service revenue reached 9.943 billion HKD in H1 2025, a year-on-year increase of 5%, accounting for 70% of total revenue [1]. - Construction service revenue fell by 49% to 1.844 billion HKD due to a decrease in ongoing projects, representing 13% of total revenue [1]. - Financial income accounted for 17% of total revenue [1]. Group 3: Operational Efficiency - The company has a designed daily processing capacity for municipal solid waste of 162,900 tons, with 196 waste-to-energy projects in operation as of June 30, 2025 [2]. - In H1 2025, the company processed 28.572 million tons of municipal solid waste, with an average power generation of approximately 460 kWh per ton of waste [2]. - The company’s dividend per share for the mid-year was 0.15 HKD, an increase from 0.14 HKD in the same period of 2024, with a payout ratio of 42%, up from 35% year-on-year [2]. Group 4: Future Projections - Revenue forecasts for 2025-2027 are 28.671 billion HKD, 27.640 billion HKD, and 27.591 billion HKD, respectively [3]. - Expected net profits for the same period are 3.666 billion HKD, 3.924 billion HKD, and 4.265 billion HKD, with corresponding price-to-earnings ratios of 7.46, 6.97, and 6.41 [3].

Core Viewpoint - The Ministry of Finance, in collaboration with relevant departments, has drafted guidelines to standardize the construction and operation of existing government and social capital cooperation (PPP) projects, aiming to enhance the quality and efficiency of public service supply and promote stable economic development [2][3]. Summary by Sections Background of the Guidelines - The guidelines are a response to the need for effective management of existing PPP projects as the economic structure shifts from expansion to optimization of existing resources [2]. - The central government emphasizes the importance of establishing a long-term mechanism for government investment to effectively drive social investment [2]. Key Requirements for Smooth Operation of Existing PPP Projects - Local governments are required to take responsibility and implement targeted measures to support the stable operation of PPP projects [4]. - The guidelines outline four principles: systematic promotion, classified policies, cost reduction and efficiency enhancement, and strengthening guarantees [4][5]. Support for Existing Projects in Operation - Approximately 70% of existing PPP projects are in operation, and their performance directly impacts the quality of public services [6]. - Key requirements include adherence to contracts, timely performance-based payments, and ensuring that social capital providers meet quality standards [6][7]. Requirements for Projects Under Construction - For ongoing projects, the guidelines stress prioritizing projects based on local needs and financial conditions, accelerating construction progress, and ensuring financing needs are met [8][9]. Resource Utilization and Policy Tools - The guidelines advocate for comprehensive use of various resources and policy tools, including strict budget management and the use of local government bonds for financing [9][10]. Implementation and Coordination - The successful implementation of the guidelines requires collaboration among local governments, industry regulators, financial institutions, and project implementation agencies [11][12].