Core Viewpoint - The environmental industry is transitioning from a phase of incremental expansion to one of optimization, as traditional infrastructure markets become saturated. Companies must adapt from construction to operational services to remain competitive [1][3]. Financial Performance - In the first half of 2025, the company reported a revenue of HKD 3.4 billion, a decrease of 3% year-on-year. However, the net profit attributable to shareholders was HKD 191 million, an increase of 33% year-on-year, with basic earnings per share at HKD 0.0923 and a proposed dividend of HKD 0.028 per share [1][2]. - The decline in revenue was primarily due to a decrease in construction revenue, while the increase in net profit was attributed to cost reduction efforts and decreased financial expenses [1][2]. Business Segments - The company's construction service revenue decreased by 4% year-on-year, while operational service revenue grew by 1%, increasing its share of total revenue by 4 percentage points. Operational service revenue now accounts for 94% of total revenue, up from 79% in 2022 [2]. - Despite a 4.1% decrease in biomass processing volume, the company saw a 3% increase in electricity generation and a 27.4% increase in steam sales, indicating improved operational efficiency [2]. Industry Trends - The traditional infrastructure market is becoming saturated, with ecological environment engineering investments expected to drop below 30% by 2025. Client demands are shifting towards long-term operational services, including maintenance and smart upgrades [3]. - The company plans to focus on enhancing its biomass utilization projects and developing high-value projects such as biomass gasification and zero-carbon parks, integrating various renewable energy resources [3]. Biomass Project Transformation - The company operates 54 biomass utilization projects, with a design capacity of approximately 120,000 tons per year. The net profit from biomass projects increased by 15% year-on-year to HKD 626 million, driven by growth in heating services and improved fuel quality [4][5]. - A notable project, the Anhui Dazhong biomass project, achieved profitability for the first time after transitioning from a pure power generation model to a combined heat and power model, capitalizing on local demand for heating [4][5]. Cost Management and Financial Strategies - The company is implementing various measures to control costs and enhance management efficiency, including targeted support for waste disposal projects and reducing operational expenses [5]. - Financially, the company successfully issued a national subsidy asset-backed security (ABS) of RMB 653 million, which helped lower domestic loan interest rates and improve accounts receivable management [5].

Core Viewpoint - The announcement of the fifth batch of national public open units for environmental facilities and urban sewage and waste treatment facilities by the Ministry of Ecology and Environment marks a significant milestone for the company, showcasing its commitment to environmental responsibility and the "Two Mountains" concept [1] Group 1: Company Achievements - The company has successfully included 18 environmental projects in the national public open unit list, reflecting its dedication to the "open sharing" philosophy and its role as a leading environmental enterprise in China [1][2] - Since the second half of 2018, the company has opened 226 projects to the public, receiving approximately 220,000 visitors over three years, making it the earliest and largest enterprise in China to open environmental facilities to the public [2] - The "Urban Living Room" waste-to-energy project in Changzhou, Jiangsu, has been recognized as one of the "Top Ten National Environmental Facility Open Units," receiving high praise from the Ministry of Ecology and Environment [2] Group 2: Project Details - The 18 projects included in the latest public open unit list are as follows: 1. Tianjin Xiqing Waste-to-Energy Project 2. Hebei Zhangjiakou Waste-to-Energy Project 3. Heilongjiang Harbin Waste-to-Energy Project 4. Jiangsu Yixing Waste-to-Energy Project 5. Jiangsu Suzhou Waste-to-Energy Project 6. Jiangsu Rugao Biomass Direct Combustion Project 7. Jiangsu Danyang Waste-to-Energy Project 8. Zhejiang Ninghai Waste-to-Energy Project 9. Zhejiang Shengzhou Waste-to-Energy Project 10. Jiangxi Jiujiang Waste-to-Energy Project 11. Shandong Zhucheng Waste-to-Energy Project 12. Shandong Dongping Waste-to-Energy Project 13. Shandong Binzhou Development Zone Sewage Treatment Project 14. Henan Nanyang Waste-to-Energy Project 15. Henan Xinyang Waste-to-Energy Project 16. Henan Taikang Waste-to-Energy Project 17. Hunan Xiangtan Waste-to-Energy Project 18. Hunan Shaoyang Waste-to-Energy Project [3]