Core Viewpoint - The report highlights the financial performance and strategic positioning of Zhejiang Feida Environmental Science & Technology Co., Ltd. in the environmental protection industry, emphasizing its growth in revenue and net profit, as well as its focus on air pollution control and water treatment sectors driven by national policies and market demands [2][3][12]. Financial Performance - The company reported a total operating income of approximately 1.59 billion RMB for the first half of 2025, representing a 5.13% increase compared to the same period last year [3]. - The total profit reached approximately 183.77 million RMB, marking a 16.15% increase year-on-year [3]. - The net profit attributable to shareholders was approximately 117.38 million RMB, reflecting a significant increase of 28.04% compared to the previous year [3]. Industry Overview - The environmental protection industry is positioned as a core engine for the green transformation of the economy, driven by national policies aimed at carbon reduction and pollution control [4][5]. - The air pollution control sector is experiencing growth due to government initiatives targeting energy efficiency and emissions reduction in heavy industries such as steel and cement [4]. - The wastewater treatment industry is entering a high-quality development phase, supported by policies promoting low-carbon operations and infrastructure upgrades [5][6]. Business Strategy - The company focuses on a dual-core strategy of air pollution control and environmental water services, providing comprehensive solutions across various sectors [7][8]. - It employs a mixed business model combining EPC contracting with core equipment manufacturing, enhancing its competitive edge in the market [7]. - The company is actively pursuing technological innovation and project management improvements to enhance operational efficiency and project execution quality [9][10]. Competitive Advantages - The company has established a strong brand presence and a collaborative network with leading enterprises in the energy sector, enhancing its market position [13][14]. - It leverages a robust research and development ecosystem, integrating multiple national and provincial innovation platforms to drive technological advancements [15]. - The company has received numerous awards for its technological contributions and has a significant number of patents, underscoring its commitment to innovation in the environmental sector [15].

Group 1 - The stock price of Xinglu Water (02281.HK) closed at HKD 0.770 on August 12, reflecting a 1.32% increase from the previous trading day, with an intraday high of HKD 0.780, marking a new high in nearly a year [1] - On the same day, the main capital inflow was HKD 83,470, while there was a net outflow of HKD 184,500 [1] Group 2 - Xinglu Water, established in 1958 and listed on the Hong Kong Stock Exchange in March 2017, has a total share capital of 860 million shares, with 75% being domestic shares and 25% H-shares [2] - The company is the only state-owned enterprise group in the water supply and drainage industry in Luzhou City, Sichuan Province, and operates 12 water plants with a daily water supply capacity of 774,000 tons [2] - Xinglu Water also manages 9 urban sewage treatment plants, 2 industrial park sewage treatment plants, and 294 rural sewage treatment facilities, with a total daily sewage treatment capacity of 641,000 tons, ranking among the top in the province [2] - The company's water supply business encompasses the entire supply chain from water source extraction to purification, pipeline transportation, sales, and after-sales service, covering Luzhou City and extending to nearby regions [2] - The sewage treatment services include urban and rural wastewater treatment, with successful projects in Chengdu and Leshan, among others [2]