General Provisions - The company aims to protect the legal rights of shareholders, employees, and creditors, and to regulate its organization and behavior according to relevant laws and regulations [1] - The company was established as Shanghai Environment Group Co., Ltd. following the division of Shanghai Environment Group Co., Ltd. by its shareholder Shanghai Urban Investment Holdings Co., Ltd. [1] - The company was approved by the China Securities Regulatory Commission to publicly issue 702,543,884 shares, with a par value of 1 RMB per share, and was listed on the Shanghai Stock Exchange on March 31, 2017 [1] Company Information - The registered name of the company is Shanghai Environment Group Co., Ltd., with its registered capital amounting to 1,346,230,251 RMB [2] - The company is a permanent stock company, and the chairman serves as the legal representative [2] - The company has a unified social credit code and is registered with the Shanghai Municipal Market Supervision Administration [2] Business Objectives and Scope - The company's business focuses on waste management, including municipal solid waste, sewage treatment, hazardous waste, soil remediation, and resource recycling [3] - The company aims to enhance its core competitiveness and maximize shareholder returns while actively fulfilling social responsibilities [3] Share Issuance - The company issues shares in the form of stocks, adhering to principles of openness, fairness, and justice [4] - The total number of shares issued by the company is 1,346,230,251, all of which are ordinary shares [4] Shareholder Rights and Responsibilities - Shareholders have rights to dividends, voting, and supervision of the company's operations, and they must comply with laws and the company's articles of association [15][20] - Shareholders holding more than 5% of the shares must report any pledges of their shares to the company [20] Corporate Governance - The company has established a Communist Party organization to conduct party activities and provide necessary conditions for these activities [3] - The company’s board of directors and management must comply with the principles of collective leadership and democratic centralism [12] Shareholder Meetings - The company holds annual and temporary shareholder meetings, with the annual meeting occurring within six months after the end of the previous fiscal year [56] - Shareholders holding more than 10% of the shares can request a temporary meeting [57] Financial Assistance and Guarantees - The company can provide financial assistance for acquiring its shares, but the total amount must not exceed 10% of the total issued capital [5] - Any external guarantees provided by the company must be approved by the shareholders' meeting if they exceed certain thresholds [54]

Core Insights - Zhongke Environmental's latest stock price is 5.61 yuan, reflecting a 1.63% increase from the previous trading day [1] - The company achieved an operating revenue of 848 million yuan and a net profit attributable to shareholders of 196 million yuan in the first half of 2025, marking a year-on-year growth of 19.83% [1] Business Operations - Zhongke Environmental's main business includes municipal waste treatment and biomass power generation [1] - In the first half of 2025, the company processed 2.1363 million tons of municipal waste, generated 529 million kWh of electricity, and provided 877,500 tons of heating, maintaining a heating ratio above 40% [1] Project Development - The company has made progress in project expansion, with the Yuxi project now operational and profitable, and the Hengyang project fully under construction [1] - Additionally, the company completed the delivery of the Jinzhou project and successfully acquired equity in the Guigang and Pingnan projects [1] Technological Innovation - Zhongke Environmental has obtained 14 new authorized patents, and the flue gas purification system's tail heat recovery technology has been successfully implemented in the Jincheng project [1]

Core Viewpoint - The report highlights issues related to the handling of industrial solid waste, construction waste, and municipal waste in Pingxiang City, Jiangxi Province, prompting immediate governmental action to address these concerns [1] Group 1: Government Response - The municipal government held a special meeting on the evening of May 18 to address the issues raised in the CCTV report [1] - A joint investigation team was formed, comprising departments such as ecological environment, urban management, housing construction, public security, and discipline inspection to investigate the reported problems [1] - The government plans to conduct a comprehensive inspection and special rectification of waste management issues across the city, aiming to curb the increase and eliminate existing waste [1] Group 2: Action Plan - The government will develop targeted measures based on identified shortcomings and weak links during the special rectification process [1] - There is an emphasis on establishing a normalized governance mechanism to improve waste management practices in the city [1]