Core Insights - The company achieved a revenue of 1.478 billion yuan in H1 2025, representing a year-on-year growth of 33.07%, and a net profit attributable to shareholders of 400 million yuan, up 49.23% [1] - The growth in revenue and profit is primarily driven by the consolidation of Renhe Environment and contributions from new projects in Liuyang and Pingjiang [1] Revenue Breakdown - Revenue from waste incineration and power generation reached 368 million yuan, a year-on-year increase of 23.77%, accounting for 24.89% of total revenue, with a gross margin of 64.84% [1] - Revenue from waste incineration, power generation, and sludge treatment was 301 million yuan, up 8.51%, making up 20.39% of total revenue, with a gross margin of 70.19% [1] - Revenue from municipal solid waste transfer processing was 338 million yuan, with a gross margin of 52.93% [1] - Other business revenues, including sludge treatment and landfill services, totaled 471 million yuan, accounting for 31.87% of total revenue [1] Operational Metrics - The company processed 1.861 million tons of municipal solid waste in H1 2025, a 10.70% increase year-on-year [1] - The electricity generated was 886 million kWh, up 26.21% year-on-year, with a per-ton electricity generation of 476.27 kWh, an increase of 9.70% [1] - The company also reported a collection of 395,100 tons of kitchen waste and 1.6069 million tons of municipal solid waste transfer [1] Market Expansion - The company maintains a domestic waste incineration capacity of 11,800 tons per day, positioning itself as a leader in Hunan's environmental sector [2] - Internationally, the company is expanding its market presence with projects in Kyrgyzstan, totaling a planned capacity of 7,000 tons per day [2] - The integration of Renhe Environment, which processes 8,000 tons of other waste and 2,000 tons of kitchen waste daily, enhances the company's operational synergy [2] Cash Flow and Dividends - The company reported a net operating cash flow of 724 million yuan in H1 2025, a year-on-year increase of 59.81% [3] - Free cash flow surged by 156.74% to 423 million yuan, indicating strong financial health [3] - The company has committed to a long-term dividend policy with a cash dividend ratio of no less than 50% [3] Profit Forecast - The company's net profit forecasts for 2025-2027 have been adjusted upwards to 769 million, 826 million, and 871 million yuan, respectively, reflecting the benefits from strategic projects and operational efficiencies [3]