Core Insights - JinKe Environment showcased its "New Water Island®" and "Water Radish® AI Intelligent System" at the WEFTEC conference in Chicago, highlighting China's technological innovation in water management and accelerating its overseas market expansion [2][4] - The WEFTEC event, the largest global water conference, attracted over 20,000 water professionals from more than 100 countries and featured over 1,000 companies presenting technological solutions across 50+ sub-sectors [2] Group 1: Product Innovation - "New Water Island®" redefines traditional water plant construction with a modular design, industrial production, AI operation, and specialized services, achieving a 90% reduction in land use, delivery time, and operational staff, while cutting lifecycle costs by 50% [2][3] - The "Water Radish® AI Intelligent System" supports the productization of "New Water Island®" by integrating process optimization, multi-modal perception models, and large language reasoning models to autonomously ensure safe and efficient water plant operations [3] Group 2: Industry Engagement - The immersive presentation at WEFTEC allowed attendees to experience the advantages of "New Water Island®" and "Water Radish® AI Intelligent System," facilitating in-depth discussions on technology adaptability and implementation pathways with water professionals from various countries [3] - The event served as a platform for JinKe Environment to demonstrate its technological capabilities and contribute to global water ecological governance, reinforcing its commitment to "AI bringing water freedom to humanity" and promoting international collaboration [4]

Core Insights - Jin Ke Environment showcased its "New Water Island®" and "Water Radish® AI Intelligent Body" at the WEFTEC World Water Conference in Chicago, highlighting China's technological innovation in water services and accelerating its overseas market expansion [1][4] Group 1: Event Overview - WEFTEC is the largest global water event, gathering over 20,000 water professionals from more than 100 countries and featuring over 1,000 companies showcasing technological solutions across 50+ subfields [1] - The exhibition provided a significant platform for Jin Ke Environment to demonstrate the innovative value of its products [1] Group 2: Product Features - "New Water Island®" redefines traditional water plant construction with a modular design, industrial production, AI operation, and specialized services, achieving a 90% reduction in land use, delivery time, and operational personnel, while cutting lifecycle costs by 50% [1][2] - The "Water Radish® AI Intelligent Body" is a self-developed intelligent management system that optimizes water plant operations through AI, ensuring safety, efficiency, and cost-effectiveness [2] Group 3: Engagement and Impact - The immersive presentation at the exhibition allowed attendees to experience the rapid deployment and integration capabilities of "New Water Island®" and the operational logic of "Water Radish® AI Intelligent Body" [3] - The event attracted numerous water professionals for in-depth discussions on technology adaptability and implementation pathways, establishing a foundation for future global partnerships [4] Group 4: Future Strategy - Jin Ke Environment aims to contribute to global water resource challenges by adhering to its mission of "AI bringing water freedom to humanity" and following a strategy focused on resource utilization, AI digitization, and productization [4]

Group 1 - The core viewpoint of the news is the strategic partnership established between Jinko Environment and China Pacific Insurance (Hong Kong) Investment Management, focusing on the development of the new water island® product and promoting sustainable water resource management through financial technology [1][3] - Jinko Environment aims to provide comprehensive solutions throughout the project lifecycle, leveraging AI and advanced technologies to create a sustainable water recycling system that relies on 70% recycled water and 30% fresh water [2][3] - The new water island® product features a dual-mode architecture for digital management, aligns with international ESG standards, and offers predictable cash flows, making it an attractive investment opportunity [3] Group 2 - China Pacific Insurance (Hong Kong) Investment Management is the only overseas investment management institution of China Pacific Insurance Group, holding multiple licenses for securities trading and asset management, and aims to build a professional financial investment management platform [1] - The partnership will leverage the financial expertise of China Pacific Insurance (Hong Kong) to enhance the application of innovative financial technology tools and new financing services in sustainable water resource industries [3]

Group 1 - Jin Ke Environment (688466) has signed a Strategic Cooperation Memorandum with China Pacific Insurance Asset Management (Hong Kong) to establish a strategic partnership [2] - The partnership aims to leverage financial technology to promote the digital transformation and productization of sustainable infrastructure, specifically in the water resource sector [2][3] - The collaboration will contribute to the construction of a sustainable water circulation system, providing high-quality water resources that are sufficient, reliable, and affordable [2][3] Group 2 - Jin Ke Environment's core product, New Water Island®, integrates AI algorithms and various advanced technologies for deep water treatment and resource recovery [3] - New Water Island® features a dual-mode architecture for digital management throughout its lifecycle, supporting real-time verifiable operational data [4] - The asset aligns with international ESG standards and aims to enhance long-term valuation through quantifiable environmental benefits, providing stable cash flows and predictable returns for investors [4] Group 3 - The partnership will focus on innovative financial technology tools and new financing services to support high-quality development in multiple sustainable water resource industries [4] - Jin Ke Environment's strategy emphasizes a sustainable water cycle where 70% of water comes from high-quality recycled water and 30% from fresh water [3] - The collaboration is expected to enhance the operational safety, risk control, and compliance processes in the financial sector [4]

Investment Rating - The report maintains an "Increase" rating for the environmental protection industry [1] Core Views - The report highlights the collaboration between Jinko Environment and Kunheng International to issue RWA, enhancing the market value of quality assets [9] - Huanlan Environment's internal growth and acquisition performance exceeded expectations, with a significant increase in net profit [12] - The report emphasizes the decline in capital expenditure in waste incineration, leading to improved free cash flow and increased dividends, while also noting the efficiency improvements in heating and IDC that boost ROE and valuation [16] - The water service sector is positioned as the next growth area similar to waste incineration, with a focus on marketization and cash flow improvements [19] Summary by Sections Jinko Environment - Jinko Environment has reached a cooperation intention for RWA issuance with Kunheng International, aiming to enhance the market value of its quality assets through digital asset management [9][10] Huanlan Environment - Huanlan Environment reported a net profit of 9.67 billion yuan for H1 2025, a year-on-year increase of 9.00%, with a significant internal growth rate of 18% in Q2 2025 [12][14] - The integration of Yuefeng has contributed positively to the company's performance, with a monthly profit contribution exceeding previous levels [14][15] Waste Incineration - The report notes a decrease in capital expenditure in the waste incineration sector, leading to a substantial improvement in free cash flow and increased dividends for companies like Junxin and Green Power [16][17] - The sector is transitioning into a mature phase, with a focus on efficiency improvements and cost reductions to enhance ROE [16][18] Water Services - The water service sector is highlighted as a stable and low-valuation area with high dividend potential, with companies like Xingrong and Hongcheng Environment expected to see significant cash flow improvements [19][21] - The report anticipates a shift in water pricing policies that will support sustainable growth and valuation increases similar to trends observed in the US water industry [20][21] Environmental Equipment - The report indicates a 90.56% year-on-year increase in sales of new energy sanitation vehicles, with a penetration rate of 15.86% [28] - The overall sales of sanitation vehicles increased by 3.59%, indicating a positive trend in the environmental equipment sector [28][34] Biodiesel and Lithium Battery Recycling - Biodiesel prices remained stable, but profit margins have decreased, with the average profit per ton dropping to 130 yuan [42] - The lithium battery recycling sector is experiencing an upward trend in metal prices, leading to slight improvements in profitability [44]

Core Viewpoint - Jinko Environment Co., Ltd. has received "buy" ratings from Dongwu Securities and Huatai Securities, with Founder Securities initiating coverage with a "recommended" rating following the release of its 2024 annual report and 2025 Q1 report [2] Financial Performance - In 2024, Jinko Environment achieved operating revenue of 617 million yuan, an increase of 7.74% year-on-year [2] - In Q1 2025, the company's revenue grew by 17% year-on-year to 129 million yuan, with net profit attributable to shareholders increasing by 33% [2] - As of the end of March 2025, Jinko Environment had an order backlog of 709 million yuan, indicating steady growth in B-end orders [2] Strategic Initiatives - The company is deepening its strategy of "resource utilization, AI intelligence, and productization," with the New Water Island® project accelerating implementation and expanding applications in industrial scenarios [2][3] - The New Water Island® 2.0 product has secured multiple orders, including projects in Wuxi, Zhoushan, Kaifeng, and Taiyuan, each with significant capacities [3] - The Water Radish® AI intelligent system features a multi-model integrated architecture, enhancing operational efficiency and safety in the New Water Island® product's unmanned operations [3] Market Outlook - Institutions believe that Jinko Environment's growth prospects are promising due to policy support, product upgrades, and expanded sales channels, which are expected to accelerate order replication [3]