XREC(SZ:000598)2025-09-12 13:27Group 1: Financial Performance and Projections - The company's sewage treatment service revenue accounted for 44.64% of total operating revenue in the first half of 2025, while water supply revenue accounted for 30.25% [3] - The company anticipates maintaining a compound annual growth rate (CAGR) in the next three years at a double-digit level, driven by market expansion and operational efficiency [3] - The company expects to have a free cash flow of approximately 1.5 billion in the next year, with total expenditures projected between 2 to 2.5 billion [5] Group 2: Project Updates and Operations - The Chengdu Wansheng Environmental Power Plant (Phase III) is expected to be operational by the end of December 2025, contributing to the city's zero landfill goal [3] - The company has completed the second phase of the Zedang urban sewage treatment plant and is currently upgrading the first phase [4] - The company operates and has under construction water supply projects with a total capacity of approximately 4.3 million tons/day, with 3.58 million tons/day in Chengdu [10] Group 3: Shareholder Returns and Dividends - The company is committed to increasing dividend levels as cash flow improves with the completion of ongoing projects [5] - There is a focus on enhancing shareholder returns, with expectations for dividends to potentially reach 60% post-project completions [8] - The company emphasizes the importance of shareholder value and plans to improve dividend distribution in line with operational cash flow [11] Group 4: Regulatory and Market Environment - The company is actively monitoring government policies regarding historical debt repayments, which may affect accounts receivable in the second half of the year [4] - The company has established a price adjustment mechanism for water supply in Chengdu, but no immediate changes are anticipated [4] - The company is aware of the impact of macroeconomic factors on stock price fluctuations and is focused on enhancing intrinsic value through strategic management [11]