Core Viewpoint - The company Junxin Environmental Protection Co., Ltd. (军信股份) is planning to go public on the Hong Kong Stock Exchange after three years of being listed on the Shenzhen Stock Exchange, focusing on waste incineration power generation and related services [2][23]. Group 1: Company Overview - Junxin Environmental Protection, based in Changsha, Hunan, specializes in waste incineration power generation, sludge disposal, sewage treatment, landfill, and ash treatment [2][5]. - The company has a total market capitalization of 11.3 billion RMB as of August 18 [2]. - Junxin has distributed dividends totaling over 1.2 billion RMB in the past three years [5]. Group 2: Financial Performance - The company's revenue has shown a growth trend, with reported revenues of approximately 1.55 billion RMB in 2022, 1.84 billion RMB in 2023, and 2.41 billion RMB in 2024 [18]. - Net profits for the same years were approximately 587 million RMB, 653 million RMB, and 686 million RMB, respectively [18]. - The gross profit margin has fluctuated, decreasing from 55.9% in 2022 to 41.5% in 2024, before rising to 53.9% in the first quarter of 2025 [18]. Group 3: Business Operations - The company provides comprehensive waste treatment and resource utilization solutions, focusing on projects in Changsha, Liuyang, and Pingjiang [8][9]. - The revenue from electricity sales has decreased from 42.7% of total revenue in 2022 to 29.4% in the first quarter of 2025, while waste treatment service revenue has also declined [10]. - The company has a high customer concentration, with over 93% of revenue generated from five major clients, primarily local government agencies and power grid companies [15]. Group 4: Market and Industry Trends - The waste incineration power generation industry in China is expected to grow, with the volume of waste processed increasing steadily due to urbanization and the need to address historical landfill pollution [18][21]. - The market for kitchen waste treatment and resource utilization is projected to grow from 9.7 billion RMB in 2020 to 19.5 billion RMB in 2024, with a compound annual growth rate of 19.1% [21]. - The industry remains fragmented, with the top ten companies holding only 30% of the market share, indicating potential for consolidation [22]. Group 5: Future Plans and Risks - Junxin plans to use the funds raised from the IPO for domestic and international waste treatment projects, ongoing research and innovation, and general corporate purposes [22]. - The company has initiated four overseas expansion plans but faces risks related to local policy changes, cultural differences, and currency fluctuations [22][23].