XREC(SZ:000598)2024-07-05 11:32Group 1: Pricing Mechanisms - The water pricing adjustment mechanism allows the company to submit requests to the government for price changes based on national policies and agreements, requiring cost audits and public hearings [2] - The sewage treatment service fee is adjusted according to the terms in the franchise agreement, typically every 2 to 3 years, with a current tentative price of CNY 2.63 per ton for the 2024-2026 period [3] Group 2: Business Expansion - The company focuses on becoming a national comprehensive water and environmental service provider, expanding both vertically and horizontally along the business chain [3] - Efforts are concentrated on increasing market share and influence in the Chengdu area while also expanding operations nationwide [3] Group 3: Ongoing Projects - The company is advancing several projects, including the Chengdu Water Plant Phase III and the Phoenix River Secondary Water Plant, among others [3] - The total scale of operational sewage treatment projects is over 430,000 tons per day, with ongoing and planned projects totaling over 60,000 tons per day [4] Group 4: Waste-to-Energy Projects - The company is currently developing the Chengdu Wanxing Environmental Power Plant Phase III, which has a waste processing capacity of 5,100 tons per day, along with additional capacities for sludge and kitchen waste [4] Group 5: Franchise Operations - The franchise period for water and environmental projects typically ranges from 25 to 30 years, utilizing various operational models such as BOT, BOO, and TOT [3]