SYEP(SZ:300867)2024-08-28 09:41Group 1: Company Overview and Operations - Shengyuan Environmental Protection Co., Ltd. focuses on waste incineration power generation and sewage treatment, with a stable cash flow supporting new business development [9] - The company has been involved in the environmental protection industry since 2004 and has gradually formed a specialized operation pattern in waste incineration power generation and sewage treatment [9] Group 2: Financial Performance - In the first half of 2024, the company achieved operating revenue of CNY 789 million, a decrease of 3.74% compared to the same period last year [10] - The net profit attributable to shareholders was CNY 111 million, an increase of 36.47% year-on-year, indicating effective cost control and operational efficiency [10] - The company’s main business revenue showed slight growth after excluding the impact of PPP project construction income, which decreased by CNY 42 million, a reduction of 66.34% [10] Group 3: Technological Upgrades and Innovations - The company is upgrading its waste incineration technology from medium temperature and pressure to medium temperature and sub-high pressure, which can increase power generation efficiency by approximately 60%, from over 300 tons to over 500 tons per ton of waste [2] - The application of new hydrogen production technology using gasification is being explored, which is expected to have lower costs and emissions compared to traditional methods [4] Group 4: New Business Development - The company is actively expanding into the hydrogen energy sector, with ongoing discussions for project construction with local governments [4] - Plans to enter the taurine production market are underway, leveraging existing resources and expertise in the environmental sector [6] - The company has established a research institute for taurine production and has begun pilot production trials, obtaining necessary production licenses [6] Group 5: Market Strategy and Future Outlook - The company aims to enhance its market presence by integrating waste incineration with heat supply services, particularly in northern regions, to maximize resource utilization [8] - The strategic focus on large solid waste management is expected to create synergies and expand the company's operational scale [8] - The company has identified seven projects (with a waste processing capacity of 5,350 tons/day) that have not yet been included in the national subsidy directory, with an estimated subsidy income of CNY 260 million pending confirmation [11]