Core Viewpoint - The transformation of waste management in Ethiopia through advanced waste-to-energy technology from China represents a significant step in the globalization of China's environmental industry, showcasing a comprehensive approach that includes technology, standards, management, and capital [1][4]. Group 1: Global Expansion of China's Waste-to-Energy Industry - As of November 2025, Chinese enterprises have participated in 101 overseas waste incineration projects, indicating a broad international presence across Asia, Europe, Africa, and America [1]. - The demand for waste-to-energy solutions is growing in regions like Southeast Asia and the Middle East, with Indonesia's waste production projected to exceed 82 million tons by 2045, highlighting the urgency for effective waste management solutions [1][2]. - Chinese companies such as China Everbright, China Tianying, and others are actively involved in the full industrial chain of waste-to-energy projects, from investment to operation management [1][2]. Group 2: Technological Adaptation and Innovation - The success of Chinese waste incineration solutions abroad is attributed to their ability to adapt technology to local waste characteristics, particularly in regions with high moisture content and low calorific value [3]. - Chinese enterprises utilize advanced technologies, such as high-efficiency waste heat boiler systems with thermal efficiency exceeding 85%, to ensure stable combustion and efficient power generation [3]. - The project in Can Tho, Vietnam, exemplifies the full lifecycle management capabilities of Chinese companies, processing 400 tons of waste daily and generating approximately 60 million kilowatt-hours annually while adhering to EU emission standards [3]. Group 3: Challenges and Strategic Approaches - Despite the vast market potential, overseas projects face challenges such as stringent local environmental standards and weak waste collection systems [4]. - Chinese companies employ flexible cooperation models like EPC, BOO, or BOT to mitigate project risks and enhance community acceptance, as demonstrated by the Can Tho project, which created hundreds of jobs and gained local trust [4]. - The establishment of 101 overseas waste incineration projects marks a milestone in China's international environmental efforts and its commitment to global energy transition [4].

Summary of the Conference Call for Guangda Environment Industry and Company Overview - Guangda Environment is actively expanding its overseas market presence, particularly in Central Asia and Southeast Asia, with a focus on risk control and investment return rates [2][5][6] Key Points and Arguments Overseas Market Expansion - Guangda Environment has signed projects in Uzbekistan with a total investment of 1.08 billion RMB, expected to be operational by mid-2027, holding an 88% stake [2][5] - The company is also exploring potential projects in Vietnam, Malaysia, Indonesia, and the Middle East [2][5] Investment Return Rates - The target Equity Internal Rate of Return (IRR) for overseas projects is set at no less than 10%, with some projects in Vietnam achieving over 15% IRR [2][6] - The new projects in Uzbekistan are projected to have an IRR close to 12% [2][6] Financial Performance - Financial expenses significantly decreased from 3.23% to 2.72% year-on-year, attributed to interest rate reductions and the replacement of high-interest loans, totaling nearly 24.4 billion RMB [2][14] - Free cash flow turned positive for the first time in 2024, reaching 4.04 billion RMB, with 2 billion RMB in the first half of 2025, a significant year-on-year increase [3][17] Dividend Policy - Despite a 24% decline in 2024 earnings, the company maintained a stable dividend policy, with an increase of 1 cent per share [3][18] - The dividend payout ratio is expected to rise from 42% to 45% [3][18] Capital Expenditure Plans - Capital expenditures for 2025 are projected between 3.5 billion to 4.5 billion RMB, with 30%-40% allocated for overseas projects [3][21] Collaboration and Market Competition - Guangda Environment collaborates with other companies to avoid price competition in overseas markets, particularly in Central Asia [7][8] - The competitive landscape for Chinese companies in overseas markets is intense, leading to price competition that could affect profitability [8] Technology and Project Efficiency - The company’s waste-to-energy projects often exceed internal estimates for waste and power generation, particularly in Vietnam due to high electricity demand [9][10] - The proprietary grate furnace technology allows for flexible scale adjustments, enhancing competitiveness across different regions [10] Challenges and Future Outlook - The IDC business is progressing, with potential projects in Hangzhou, but overall profitability from this segment is not expected to be significant [11] - The company remains cautious about future earnings due to various economic factors, including currency fluctuations and the competitive landscape [19] Investor Engagement - Guangda Environment plans to organize investor visits to key projects in Shenyang and Dalian to showcase operational strengths and profitability [24] Other Important Considerations - Key factors affecting future performance include exchange rate losses, impairment provisions, and capital expenditures, particularly for overseas projects [25]