XREC(SZ:000598)2025-03-06 11:00Group 1: Project Operations - The company launched the Xi'an kitchen waste project in 2024, integrating water supply resources from Dayi, and has successfully put into operation projects such as the Chengdu High-tech Zone Qilong Water Plant and the Phoenix River Second Ditch Reclaimed Water Plant, increasing water supply, sewage treatment, and solid waste disposal capacity [2] - Ongoing projects include the Chengdu Water Plant Phase III (remaining capacity of 400,000 tons/day), Chengdu Xiwayan Reclaimed Water Plant, Chengdu Sixth Reclaimed Water Plant (Phase II), and Qionglai kitchen waste project entering the debugging phase [3] Group 2: Cost Reduction and Efficiency Improvement - The company emphasizes refined management through operational innovation and digital empowerment, achieving cost reduction and efficiency improvement [3] - Implementation of standardized construction and upgrades across multiple subsidiaries has significantly enhanced production management and operational quality [3] - Development of a smart cloud control center integrates various technologies to improve project management and efficiency across diverse operations [3] - The "Digital Strong Enterprise" initiative establishes five centers to effectively leverage data value for operational enhancement [3] Group 3: Pricing Mechanisms - The water pricing mechanism allows the company to submit price adjustment requests to government authorities based on national policies and agreements, requiring cost audits and public hearings [4] - The sewage treatment service fee is adjusted every 2 to 3 years based on agreements with government entities, with a temporary price of 2.63 CNY per ton for the Chengdu central urban area for 2024-2026 [4] Group 4: Policy Impact and Future Considerations - Debt reduction policies are expected to improve local government fiscal capabilities, positively impacting the water and environmental protection industry [4] - The company aims for sustainable high-quality development, enhancing operational quality and profitability to provide stable returns to shareholders while considering future dividend levels [4]