XREC(SZ:000598)2025-07-08 10:38Group 1: Business Overview - The company's water supply business operates in Sichuan, Jiangsu, and Hainan, with a total capacity of approximately 4.3 million tons/day, including a project in Chengdu currently in trial operation with a capacity of 400,000 tons/day [2] - The wastewater treatment business spans Sichuan, Gansu, Ningxia, Shaanxi, Jiangsu, Hebei, Shandong, and Tibet, with over 4.8 million tons/day in total capacity, of which over 4.5 million tons/day are operational [2] - The waste incineration power generation business has a total capacity of 12,000 tons/day, with 6,900 tons/day currently operational; a project with a capacity of 5,100 tons/day is planned to be operational by 2026 [3] Group 2: Market Expansion Strategy - The company aims to be a national water and environmental service provider, focusing on expanding its market presence in Chengdu and surrounding areas while pursuing acquisitions to enhance resource integration and industry segmentation [3] Group 3: Operational Advantages - The company boasts nearly 80 years of water supply operation experience and over 30 years in wastewater treatment, leading to superior operational management capabilities [3] - The company implements standardized and refined management practices, leveraging operational innovations and digital empowerment to reduce costs and improve efficiency [3] Group 4: Pricing and Capital Expenditure - Water pricing adjustments are subject to national policies and must go through cost audits and public hearings before implementation [4] - The company has significant capital expenditures due to multiple ongoing projects, but these are expected to decrease as projects come online in the next 1-2 years, allowing for increased shareholder returns [4]