Group 1: Financial Performance - In 2024, the company achieved a revenue of CNY 6.611 billion, a year-on-year increase of 1.36% [1] - Main business revenue reached CNY 6.390 billion, up 2.39%, accounting for 96.66% of total revenue [2] - Net profit was CNY 1.229 billion, an increase of 4.16% year-on-year [2] - Total assets amounted to CNY 30.708 billion, up 5.42% year-on-year, with a debt-to-asset ratio of 68.88%, down 2 percentage points [2] Group 2: Strategic Goals and Initiatives - The company aims to become an internationally renowned environmental technology group, focusing on "优新提存" to optimize its environmental industry layout [2] - Emphasis on "三基一稳一突破" to strengthen foundational work and promote innovative breakthroughs [2] - Plans to enhance core capabilities in technology innovation, digital intelligence, and capital operations [2] Group 3: Business Growth and Development - In Q1 2025, total profit reached CNY 0.379 billion, a year-on-year increase of 21.16% [3] - Revenue for Q1 2025 was CNY 1.536 billion, up 13.19% year-on-year, with a gross margin of 39.57% [3] - The company is focusing on solid waste management, water treatment, and environmental sanitation as key growth areas [8][19] Group 4: Asset Management and Financial Strategies - The company is enhancing stock asset management through improved production budget management and cost control [5][6] - Measures to recover accounts receivable include establishing a cloud platform and leveraging national debt relief policies [6][17] - The company aims to lower its debt costs and optimize its financial structure through diversified financing strategies [6] Group 5: Market Expansion and Innovation - The company is actively pursuing integration in the water supply and drainage sector, with successful pilot projects in Xinyang [8][19] - Plans to develop a recycling platform and enhance resource recovery through smart logistics and detailed sorting [10][19] - The acquisition of Aolande is expected to strengthen market presence and operational capabilities in the sanitation sector [15][16] Group 6: Future Business Layout - The company plans to expand its core solid waste business and develop growth areas such as water services and overseas markets [19] - Focus on nurturing exploratory businesses in environmental equipment manufacturing and carbon trading [19] - Continuous optimization of existing business layout to enhance overall operational efficiency [19]

Core Insights - The company reported steady growth in performance, with an increase in revenue and net profit for both 2024 and Q1 2025, driven by its environmental operations and stable cash flow from highway business [2][5] Financial Performance - In 2024, the company achieved operating revenue of 6.611 billion yuan, a year-on-year increase of 1% - The net profit attributable to shareholders was 1.141 billion yuan, up 6% year-on-year - For Q1 2025, operating revenue reached 1.536 billion yuan, reflecting a 13% year-on-year growth - The net profit attributable to shareholders for Q1 2025 was 273 million yuan, a 22% increase year-on-year [1][2] Business Segments - Solid waste treatment and sanitation services generated revenue of 3.388 billion yuan, a 27% increase year-on-year, with a gross margin of 40.78% - Environmental solution integration services saw revenue decline by 28% to 1.268 billion yuan, but gross margin improved by 2.09 percentage points to 24.74% - Water treatment business revenue increased by 22% to 383 million yuan - Highway business revenue decreased by 6% to 1.350 billion yuan [2][3] Operational Efficiency - In solid waste management, the company processed 11.6672 million tons of waste, a 13.12% increase, and generated 3.42 billion kWh of electricity, an 18.04% increase - The hazardous waste disposal projects significantly increased processing volume to 48,300 tons, a 94.15% year-on-year growth - The company expanded its sanitation services, winning 10 new projects in Henan province and acquiring three sanitation projects, resulting in a contract value increase of 90.78% [3][4] Water and Highway Business - The water treatment segment benefited from integrated management, achieving a wastewater treatment volume of 2.22 billion tons, a 136.84% increase - The highway business experienced a decline in toll revenue to 1.313 billion yuan, down 5.52% due to reduced truck traffic, but maintained stable cash flow [4][5] Profit Forecast - The company is expected to achieve operating revenues of 6.796 billion yuan, 7.269 billion yuan, and 7.875 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 2.80%, 6.96%, and 8.34% - Net profits are projected to be 1.227 billion yuan, 1.379 billion yuan, and 1.546 billion yuan for the same years, with growth rates of 7.48%, 12.37%, and 12.16% [5]